-
+1 - 312-224-1615
Get in touch with us
-
support@helpwithassignment.com
Send us an e-mail
Solution Library
Case Study: Indigo Books and Music (HR Issues In Mergers & Acquisitions)
Question
Indigo Books and Music (Case Study taken from Robbins, Bergman, Stagg and Coulter (2006), page 347).
Prior to 2001 there were two big-box bookstore chains in Canada – Chapters and Indigo. Indigo was formed in 1996 by Heather Reisman who left her job as president of Cott Corporation, the beverage supplier, to found Indigo. It was the first book retail chain to add music, gifts and licensed cafes to store locations. By 2000 the chain had expanded to 14 locations across Canada. The other large chain, Chapters, was formed in 1995 with the merger of Canada’s then two largest bookstore chains – Cole’s and SmithBooks. In 2001 Heather pulled a shocking coup when her company took over the much bigger Chapters chain. Chapters’ losses were crippling the company, and its shareholders quickly approved the takeover bid.
What followed for Reisman was the task of merging the two organisations into one. Indigo and Chapters both had similar organisational structures – a functional-based design. Indigo’s corporate structure, for instance, consisted of departments such as marketing, human resources and retail. However, the new organisation suddenly had 90 big-box stores and close to 7000 employees. Moreover, with the takeover, Indigo gained control of the nationwide chain of 210 Cole’s Books and SmithBooks stores, as well as a new internet division, Chapters Online. The structure of the newly merged organisation had to change in order to incorporate these new businesses.
The combined company, Indigo Books and Music, is now Canada’s top bookseller. Its some 300 stores spread throughout the country’s provinces sell books, magazines, CDs and other items. Making the combined organisation run efficiently has been a major challenge for Reisman. Indigo lost approximately $48 million in 2002 even as the number of employees grew by 26 percent. Results for 2003 were somewhat better as the company posted a small $1.4 million profit. So Reisman must continue to address the issue of keeping the company profitable in a challenging retail climate. Despite the challenges, most analysts don’t doubt that Heather Reisman is up to resolving them.
Discussion Questions
1. When two organisations merge what types of structural issues do you think might need to be addressed?
2. What role do you think organisational structure plays in an organisation’s efficiency and effectiveness? Explain.
3. Would a mechanistic or a more organic structure be appropriate for Indigo? Why?
4. How might technology affect Indigo’s organisational design?
Summary
The question belongs to Human Resources Management and it is a case study about merger and acquisition of two book stores. The case study is focused more on the HR issues that arise out of mergers, which are mostly the neglected ones, with the prime focus being on financial issues. The solution discusses this further.
Total Word Count 1669
WHAT OUR STUDENTS SAY
I was apprehensive at first about using an online tutoring service that too for a subject as critical as mechanical engineering. But once I gave it a try I know that I need not have worried. The tutors at TheReliableTutor.com are totally in sync with what is required by me. So we are in a good place
Ashok Banerjee Student
Operations management was my minor during my MBA but I faced much challenges with the problems and assignments. So once when I was stuck with my supply chain management assignment my friend Joan told me about this website. The feedback I got from them was very positive and the assignment was also very well done. All the calculations and the charts were displayed in proper manner and from then onwards I constantly took help from them.
Lisa Gracey Student
The love for statistics has developed since my childhood. As a child, numbers always fascinated me and that is why right out of high school I opted to study undergraduate statistics. Initially I couldn’t keep up with the topics and was very desperate for expert help. TheReliableTutor.com with its online tutoring and assignment help services has helped me to reach my goals.
Steve Connor Student
When I saw the prices of TheReliableTutor law assignment help for New Zealand students I was very skeptical of the quality. But I still gave them a try and lets just say that the quality has been even better than what I had expected. Since the legal assignment experts are practicing professionals from New Zealand they know exactly what is happening in the New Zealand legal world at the moment and help incorporate those into your law assignment and law homework.
Tristan Ingham Student
The tutoring that I received was also substantiated by the finance tutor with the help of finance text books and notes. The notes had proper referencing which helped me write my finance assignment so much better. Could not have asked for better online finance tutoring and am definitely going to recommend your services to my friends and juniors.
Vivian Rsenblaum Student
Comments
this is a very good website
I have 50 questions for the same test your page is showing only 28
hi can you please help or guide me to answer my assignments. thanks
hi can anyone help or guide me to my assignments. thanks
This solution is perfect ...thanks
Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes
Perfect bank of solution.
great !
thanks for the quick response. the solution looks good. :)
thnx for the answer. it was perfect. just the way i wanted it.
works fine.