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David Orton PLC - Essay Example

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Current paper focuses on David Orton Plc, a firm created through the merger of Orton Group with Costwise, two major competitors in the British retail industry. Emphasis is given on the effects of this merger on employee relationships within both firms participating in the merger…
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David Orton PLC
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Download file to see previous pages In order to understand the challenges that Costwise employees have to face since the merger of their organization with Ortons it is necessary to refer primarily to the main events followed the above merger, meaning the events that are likely to affect the employee relationships across the organization: before the merger both firms, Ortons and Costwise have been quite powerful in the British retail industry. However, the two firms had a different culture, as reflected in their strategic priorities: for Ortons, keeping its prices at a rather high level, ensuring the quality of its products, and increasing the number of its larger stores have been the most important elements of the firm’s strategy. In opposition, the stores of Costwise were of various sizes; developing an effective communication with customers has been more important in Costwise instead of increasing the number of profits. Moreover, the level of compensation in Costwise has been lower than that of Ortons, a fact that has not negatively affected the performance of employee in Costwise. After the merger, when the differences between the two organizations revealed, employees in the two firms have been asked to cooperate for promoting the plans of the organization resulted by the merger, the David Orton plc. However, inequalities in compensation and in the participation of employees in the firm’s decision-making process led employees in Costwise at a lower position compared to their counterparts in Ortons. ...Download file to see next pagesRead More
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