HS Company: Issues and Change Management


This case study focuses on HS engineering Company, specializing in manufacturing and selling of engineering tools. The company is a family business operating within three locations including; Leeds as the main center, and Wolverhampton and Oldham operating as minor branches. The company’s board and organization structure have for some time had family members occupying key positions hence company decisions are majorly influenced by the family.

There is an anticipation that the market for engineering tools is changing with close to 20% of the market within various regions of operation including the Far East. One of the locations operates in a heavily unionized environment. The expansion gives the company an edge to venture into a new market where its products are needed and maximum profits accrued (Christopher, 2009). Organizational culture is a norm that entrenches core values of the institution, leadership roles and routine duties within an organization. It helps in enhancing employees’ morale, emotional well-being, sense of belonging and productivity for the benefit of the company (Cameron & Quinn, 1999).

The reduction in the sale of engineering goods within Europe could be attributed to prices differences between HS products and those from the Far East which seem much cheaper. This has contributed to a drastic fall in the profitability levels of the company which triggered the management to think of relocation to a different environment. There are also employment issues where some locations operate under a heavily unionized environment which has since encouraged satisfactory benefits to employees and their families. There are several reasons which could cause an employee to show his/her willingness to leave or stay within an organization. A contextual model of employees’ intention of leaving an organization gives communication and upward mobility as some of the reasons which could influence employee’s intention to leave or stay put in an organization. Diversification of a business is a strategy that seeks to enhance corporate culture ensuring that the organization remains successful and relevant to the market. Further, diversification focuses on integrating different business units so that profits are achieved with minimal cost of operations (Knight, 2005).

These norms have a substantial impact when a business shifts from one area of operation to another. This is more prominent when considering leadership aspects and routines in business (Dubrin, 2010). The new routines require adequate time for training amongst the employees who were previously acquainted with the old routine. It is essential that the organization retrains its workers in this new development for them to achieve the required level of satisfaction within their duties. Change in business brings about changes in leadership styles that may deviate from the existing regimes. This could result in conflicts between management and workers in the implementation process. It is essential that when a business changes its scope of operation leadership style has to be accommodated to avoid wide disparity in performance levels (Cameron & Quinn, 1999). Changes to new processes require the organization to adopt new methods of executing various works locally and internationally, this ensures quick adaptation to strange cultures and environments (Conger, 1992).

HS organization’s plan to merge some of its branches could take the company by storm, especially on side of the employees. This could be a result of transitioning to new ways of working which would require a lot of time for employees to cope. The company will have to realign its new strategies, technology as well as employees and this will require adequate adaptation. However, it will save HS some stress if communication is made in time and to the right people (Keegan and Green, 2002). The justification for this multi-channel marketing is that the organization’s brand becomes installed within customers’ minds as much as they are always associated with it. Business today does not entirely focus on the brand but rather on customer satisfaction and customer care. As competition increases, and for transformation to be realized, there is an apparent need in maintaining loyal customers for the purposes of building a respectable market share.

Organizations could only realize positive business results when they resort to engaging fully their employees in terms of creativity and interests aligned with business goals. The working environment where employees are exposed determines the degree of their productivity. The environment should make workers feel free of exercising employee voices. The problem of a chain of command in leadership could be tackled through power-sharing and working closely with small groups within major groups, communication and finding common grounds to base arguments presents some of the most influential ways to lead (Keegan and Green, 2002). Stiff competition experienced by the company could be traced back to the use of old systems of communication. Good brand image and diversification could assist HS in maintaining the strong growth it requires amidst stiff competition within the global market. Examples of companies undergoing restructuring and relocation to international operations include IKEA and Wal-Mart which were America’s number one furniture retailers (Moon, 2004).


Cameron, K. & Quinn, R., 1999. Diagnosing and Changing Organizational culture, Based on the Competing values framework. Upper Saddle River; New Jersey.

Christopher, K., 2001. Strategy Analysis of the Walt Disney Company. NY; Yale school Of Management.

Conger, J.,1992. Learning to Lead: The Art of Transforming Managers into Leaders. San Francisco: Jossey-Bass.

Dubrin, A. J., 2010. Leadership: Research Findings, Practice, Skills. (6th Ed.). NY: Rochester Institute of Technology.

Keegan, M. & Green, K., 2002. Global Marketing Management. NY: Prentice hall.

Knight, J. 2005. Internationalization Brings Important Benefits as well as Risks. NY: University of Toronto Press.

Moon, Y. 2004. IKEA Invades America. Harvard Business School, (9), pp. 1-13.

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