BC was a private equity firm. It had funded the roll-up of multiple small businesses and appointed
Question:
ÁBC was a private equity firm. It had funded the roll-up of multiple small businesses and appointed Mr. Rakesh as CEO to lead the newly created firm. The founders of the acquired firms had different sets of beliefs, values, ways of working, communication styles, and leadership styles. And one of the major aspects was that the founders of the acquired organizations had always run their own firms, with their own distinctive cultures.
Mr. Rakesh’s objective was to create a single umbrella culture that incorporated the founders and their employees and provided them with a single core value system, mission, and vision to follow. The ultimate purpose of the roll-up is to create a single entity to be acquired by one of the industry giants, so healthy financial performance across all businesses was critical.
Questions
1. What are the challenges that Mr. Rakesh will have to face while developing a sole organizational culture for roll-up?
2. Suggest how Mr. Rakesh should proceed with the process.
3. What, according to you, are the positive aspects of developing a single umbrella culture in this scenario?
Step by Step Answer:
Principles And Practices Of Management And Organizational Behavior
ISBN: 9781032634241
1st Edition
Authors: Chandrani Singh, Aditi Khatri