Engineering and Infrastructure Company (EIC) provides a broad array of engineering solutions to energy, transport and water availability challenges. It has head office in Germany and technologies development centres in the United States, Germany and Belgium. EIC has a strong global work force of 26,000; engineers and technologist make over 85% of the workforce. An open and collaborative work environment backed up with strong research and innovative culture has been keeping EIC ahead of the competition. EIC not only works on successful completion of the projects but also on prov...
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Engineering and Infrastructure Company (EIC) provides a broad array of engineering solutions to energy, transport and water availability challenges. It has head office in Germany and technologies development centres in the United States, Germany and Belgium. EIC has a strong global work force of 26,000; engineers and technologist make over 85% of the workforce. An open and collaborative work environment backed up with strong research and innovative culture has been keeping EIC ahead of the competition. EIC not only works on successful completion of the projects but also on providing satisfaction and delight to its clients as well as its employees.
EIC’s Oceania operation is looked after by Australian Engineering and Infrastructure Ltd. (AEIL). AEIL operates out of Sydney with a workforce of 350. Since its inception in 1982, AEIL has a constant presence in Australian market and generating about 5% of EIC’s total profit. The Australian mining boom of early 21st century has catapulted AEIL to a higher level. In 2006-07, AEIL has secured new orders of worth 1.2 billion Au$ and a backlog of 600 million Au$. However, during 2007-2009, AEIL was able to secure only 200 million Au$. Moreover, global financial crisis and slow down of world economy has hit EIC very hard. To alleviate the situation, EIC has taken a decision to sell AEIL and its Oceania operation.
Su Engineering Limited (SEL) is a South Korean chaebol. Disintegration of Soviet Union in 1990 and opening up of world economy in 1990s has opened new opportunities for SEL. SEL quickly made inroads into erstwhile Soviet Union, South Asia and African countries by successfully completing numerous small and medium sized engineering and infrastructure projects. SEL’s business is based on aggressive marketing, timely completion of engineering projects and doing similar types of projects. Unlike AEIL, SEL does not have strong technical and engineering to complete mega and complex projects. In 2009, SEL has taken over AEIL from EIC with the following terms and conditions
AEIL will be renamed as Su Engineering Australia Ltd (SEAL).
SEAL will continue to own and use all technological licenses and engineering standards and procedures of EIC for next 5 years.
For next 5 years EIC and any of its subsidiary cannot bid for any project and work in Oceania region without approval from SEAL.
SEAL will not bid for any new projects in field of transport as it is not a strong area of SEL, however will complete all ongoing transport projects with assistance from EIC. SEAL will absorb all the employees (60-75) working in transport related projects within SEAL or SEL.
All the employees of AEIL has to sign a new employment contract that has an additional clause on Secondment. According to this clause, SEL can secondment any employee of SEAL to anywhere in the world and to any organization.
With immediate effect all the employees will become employees of SEAL/SEL and none of these will be recruited by EIC or its subsidiaries for next five years. Secondment is the only option if they want to work in EIC.
SEL will depute a Chief Operating Officer for SEAL from its South Korean office. The CEO of AEIL will continue to work as CEO of SEAL The COO will work with the CEO to overseas the takeover process and to implement new policies thus creating a new work environment and culture in SEAL for its complete integration with SEL.
You started your engineering career as a graduate engineer in AEIL in 1983 at the time when AEIL was at its nascent stage of development. You received a systematic but rigorous training in engineering, project management and technology development at EIC’s centres in Europe and the USA. You imbibed the culture, values and beliefs of EIC. You have demonstrated your skills, dedication, sincerity, adaptability by working under very challenging conditions for 15 months for a project in remote Western Australia. AEIL and EIC has recognized your contribution towards the successful completion of the project and rewarded you well. Soon you obtained chartered engineers status from Engineers Australia. From 1990 to 1994 you worked on various projects in Australia and New Zeeland. You were then deputed to Germany for 2 years and after returning to Australia you got the role of Engineering Manager and then in 1998 promoted to the head of engineering and technical development. As a head of engineering you developed vendor network in Thailand for the supply and manufacturing of crucial equipment that resulted in reducing the cost of AEIL’s products and services by a big margin and established AEIL as a front runner in the market. This is the only experience you have on working with Asian clients. In 2006 you took over the role of CEO of AEIL. Under your leadership, AEIL has secured mega projects in Australia and Europe with the full support of EIC. After takeover of AEIL by SEL, you would continue to lead SEAL.
Although, top management of both EIC and SEL has projected the takeover of AEIL by SEL a seamless process, you know it is not like that. You think that takeover and integration of AEIL with SEL is a complex process with lots of challenges but with many new opportunities including inclusion of best of western and oriental work ethics and culture in SEAL.
To remove uncertainty in the air and to assure the employees, you decided to meet and address all 350 employees together. You had series of meetings with human resource manager (HRM), Head Business Development (HBD), and Head of Engineering & Development (HED) to frame vision statement of SEAL. You had consulted the COO to finalize the vision statement and other points to be presented before the employees. You planned for a 15minute presentation followed by 30-minutes open discussion session followed by a talk from the COO.
6.0 Task requirements
As a team prepare 15-minute power point presentation to be presented by the CEO, HRM, HED and HBD.
HBD to open the presentation, introduce SEL and newly formed SEAL, discuss new opportunities, new markets and advantage of SEL support.
HRM to talk about new policies with special discussion on new secondment clause.
HED should carefully plan his talk as around 280 employees directly report to him. Discuss pathways for absorbing around 60 persons from soon to be defunct transport division.
CEO to present new vision statement and assure all about their exciting, bright and stable future with SEAL.
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