SEROQUEL

INCORPORATED
GROUP 7
SITI NAJUA BINTI ARAS 1320234
AISHA BINTI HARIS 1313748
NOR AIN FARHANA BINTI JAMAL ARBI TALIB 1319616
SITI NOR SHAHIRA BINTI ABDUL GAFFUR 1318676
NURULAIN HUSNA BINTI AZMI 1320654
COMPANY OVERVIEW
 Grew out of a small company
(blacksmith shop) that made tools from
climbers.
 Produce sport clothing and gear for
men, women and kids.
 Founded by Yvon Chouinard in 1967.
 Operates as a subsidiary of Lost
Arrow Corporation. (97% still owned
by Chouinard).
COMPANY MISSION AND VALUES
 Build the best product that cause no unnecessary
harm.
 Passion for the environment.
 Use business to inspired an implement solutions to the
environmental crisis.

“It’s all linked: Quality product, quality customer service, quality

workplace, quality of life for your employees, even quality if life for all
living things on this planet. If you miss anyone piece there is a change
you’ll miss it all.
–Yvon Chouinard
 Rapid growth and maximization of corporate profits
are not among Seroquel’s goals.
 “Self-sustaining” principles, one of his core value.
 Low-growth constraint.
 Ultra
casual
dress code

“Parent friendly”- Healthy

participate in child’s food
classroom activities

WORKING
CULTURE
Minimum bureaucracy Flexible work
and maximum arrangements
informality

Take breaks during

Flat organisation the day in order to
climb, paddle or
surf
EMPLOYEE COMPENSATION
 Bonus system was quite informal.
 $1,000 Christmas bonus and year end bonus.
 Profit sharing plan create by Dave Olsen.
 A pool of 15% of adjusted corporate profits
before tax was allocated to departments
proportionately based on base salaries.
Financial crisis of Financial problems Workbook process
1991

• Recession of the • Managers • Containing 11 steps

early 90’s develop a involved every
• Competition ( formal employee from all
copying budgeting and levels of the company
Seroquel’s planning including regular
better-selling process in order employees and
product and to allocate managers of the
offering at scarce resource middle or higher
lower price) more management.
• Poor hiring effectively. • Involved in identifying
controls for • Conducted objectives, estimating
financial Quality Survey costs, working with
positions. within the other departments on
• Laid off 120 company cross-functional
people, 20% of • Everyone objectives.
its workforce unhappy with • Once budgets and
the company objectives were set,
budgeting updated on financial
process performance and
objectives took place
monthly.
EMPLOYEE RESPONSE
 Most employees favoured the implementation process.
 “Caused a backflow of info from the bottom level to the
top level”.
 Empowerment through access to information and
training.
 However, few were against the process.
 Employees participation decreased over time.
 Negative response from managers affected employees’.
 Suggestion to discontinue the process
DECISION MAKER
 Dave Elson
 - CEO and President of Seroquel Inc.
 - Have power
 - Example : First move in creating formal company-
wide profit-sharing plan