Human Resource Management of Sonoco Company - Assignment Example

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This research will begin with the situation of the packaging industry at the time of the case. Then the research will attempt to present and evaluate impact of changes to Sonoco’s strategy and Cindy Hartley’s objectives for changes at Sonoco…
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Human Resource Management of Sonoco Company
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Download file to see previous pages The paper tells that in around 1990, there was the problem of globalization which resulted to growth and competitive challenges. This globalization made heavy manufacturing to move from United States to countries where there was cheap labor. By that time, countries like China and India had cheap labor. Consolidation was another major problem. This was brought about by United States overcapacities which lead to increase of the market share of packaging companies from 40 % to 60 %. Consolidation also led to segmentation of domestic consumer markets which in turn led to products being tailored to the preferences of distinct groups of consumers. The beverages and food industries were highly affected by this. In addition, more attention was being given to packaging’s role in branding. To some extent, this led to standardization of seven to eight versions of products instead of one or two. As a matter of fact, in traditional retail, advertising was less influential as compared to packaging. Packaging was considered to retain and woo more customers when compared to advertisement. A strategy was to be set in order to give the packaging companies the responsibilities of equipping themselves to changes in dime. This would ensure the packaging companies to compete towards use of new or emerging technologies and application of innovative tools as well as ability to speed development. This made many of the packaging companies to use sophisticated equipments in investment in order to handle abrupt changes in product design. By that time, many manufacturing companies started using one- stop- shop concept in order to consolidate their stables of suppliers. This led to a great improvement. Some companies like Hershey had spent many years on hundreds of packaging suppliers but after the concept, 80 % of their packaging needs were met by only 20 suppliers. This helped the company in the human resource management because of shortened production and delivery cycle (Case study task two). Impact of changes to Sonoco’s strategy These changes will help Sonoco follow sophisticated and coordinated marketing strategies. The approach will ensure a single point of contact within the firm to coordinate all the business needs of large customers. These will also result to satisfaction of the public and large customers e.g. Procter & Gamble, and Nestle. Sonoco has a great problem in supply management. Through the changes, they will manage to reduce the numbers of the suppliers and hence good management of human resource management in the company. If they adopt one- stop- shop concept, they will be able to consolidate their stables to suppliers. In addition, the company will compete with other companies in speeding development through the use of new or emerging technologies and application of innovative tools. Just like other company, Sonoco will be able to use sophisticated equipments in investment and hence handle abrupt changes in product design. Sonoco Company will also increase its market share and hence a good chance of increasing its production. This will mark a good start for expansion making the company come up with strategies of improving the human resource management due to increased employees. Addition of employees calls for removal of manipulations in terms of performance ratings. ...Download file to see next pagesRead More
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