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It was a hot afternoon in Cairo on June 2 3 , 1 9 9 8 when Ahmed El Bakry, chairman and CEO of Olympic
It was a hot afternoon in Cairo on June
when Ahmed El Bakry, chairman and CEO of Olympic
Group
OG
the white goods giant, was discussing with his top executives the effect of their acquisition
of IDEAL, a state
owned home appliance company.
The acquisition was a great step for us; however, we
need to get the best out of it
explained El Bakry. It was one year after OG had acquired IDEAL, and still
the company had a lot of issues to be solved. Acquiring a state
owned firm was a challenge, but what was
more challenging was how to integrate two companies with different organizational structures, visions
and values.
The most challenging issue to us
El Bakry went on
is to merge the employees of both
companies together. We want them to share the same culture, ideas and values.
OG also needed to
change the IDEAL brand image from a state
owned to a private
owned company. Accordingly, within a
month, El Bakry had to decide whether to start by changing the IDEAL brand image or integrating the
employees of the two companies. He also had to consider how and when to integrate the employees
without affecting overall performance. What methods should he use to boost the employees
productivity
especially at IDEAL? What areas should be worked on in order to improve the IDEAL brand image
without affecting its market share? What changes in IDEAL products were required to sustain its
competitiveness and market share?
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