Case Study Analysis: Sonoco Products Company - Essay Example

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Case Study Analysis: Sonoco Products Company.
The new strategies are mainly focused on improving the company’s annual growth, and retaining its competitive strength in the ever changing global industrial and consumer packaging industry. …
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Download file to see previous pages Cindy Hartley is the senior Vice President of the company’s Human Resource department, and since 1995-when she joined this company-she realized that its Human Resources (HR) function was broken. She was, therefore, determined to restructure Human Resources, and align their processes to the company’s business objectives. While in the process of rejuvenating Human Resources, Harris DeLoach in 2000 was appointed as Sonoco Product Company’s new Chief Executive Officer (CEO). Just like Ms. Hartley, DeLoach also became concerned with Sonoco’s diminishing returns, which he associated with poor management of Human Resources. As part of changing Sonoco’s overall business strategy, Mr. DeLoach called for the need to rejuvenate HR. He, therefore, called upon Ms. Hartley and her team to provide two alternative Human Resource structures, which would reduce HR’s cost by $2.8 million or 20 percent. Additionally, the new HR structures were also expected to: (1) ensure top-level accountability for talent upgrading and management, (2) provide a more balanced distribution of HR support and talent, and (3) pave the way for improving Sonoco’s overall business strategy that is usually aimed at working across division lines to sell and market business ideas to a single large customer. This article employs 7S Model of Organizational alignment to explore and analyze the opportunities or issues associated with the company and the CEO’s request, and analyze the alternatives and recommendations that influenced Senior VP’s (HR) actions to achieve HR goals and Sonoco’s overall financial goals. Introduction Sonoco Products Company was founded by Major James Coker in 1899 in Hartville, South Carolina. The company’s original name was Southern Novelty Company until 1923, after which it was rebranded to Sonoco, a name that represents the first two letters from its original name (Dun & Bradstreet, 1995 p1980). This company produced paper cone used for holding yarn in the textile industry as its original product. Paper cones that were used in the late 1800s’ and early 1900s’ textile industry were unique, since they were made from wood. Sonoco did not event paper cones; however, its employees invented an automated process for producing these cones. This new invention significantly improved Sonoco’s competitive strength and market share in this industry, and after a short period of production, it soon became the chief producer of cones in the United States (Dun & Bradstreet, 1995 p1980). This company is also credited for creating Ultraseal used in Crisco shortening cans, and the use of Plastic “T-shirt” grocery sack (Dun & Bradstreet, 1995 p1980). Sonoco’s viable business strategies and well management of Human Resources made it one of the world’s leading packaging companies by the year 2000. By 200, its annual revenue income reached $2.6 million through the production and sales of industrial and consumer packaging, with over 17,300 employees working in 32 countries across its 285 operations (David, 1991 p879). This company serves customers in over 85 nations with a wide variety of consumer and industrial packaging solutions. Other than is packaging operations, Sonoco also produces its own Paperboard, which makes it consume about two million tons of recycled paper annually (Randhawa, 2007 P155). For several years since this company was established, it has focused on continued growth characterized by diverse product lines and new operations in different regions of ...Download file to see next pagesRead More
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