Organizational Behavior - Eden Mccallum

Topics: Economics, Time, Term Pages: 2 (642 words) Published: November 26, 2011
1. If you were a partner at Eden McCallum what would you do – grow or cut?

If I were a partner at Eden McCallum I would cut. Eden McCallum was started during a great time where they had a smooth market entry and a keen business strategy. While their business strategy is still working to their advantage, poor market conditions continue to exist and many of the firm’s clients are starting to feel the economic pressure. The firm has already “faced increasing demands to cut fees.” [ (Gardener & Eccles, 2009) ] This fact, coupled with the consultant’s fear of lack of security, indicates that Eden McCallum should consider making organizational changes that would support the concerns of both parties. According to the firm’s corporate vision on value, clients come first and consultants come second. [ (Gardener & Eccles, 2009) ] Eden McCallum should make sure that they stay in line with their corporate vision when making considerations to cut. They should focus on cutting as many areas that do not directly affect the client and the consultant. I would recommend that they cut the part-time employees and the new staff members to start since it takes one to two years to learn the business. Another value of their corporate vision is to focus on the long term, and the short term will take care of itself. [ (Gardener & Eccles, 2009) ] Focusing on the long term for Eden McCallum would include keeping the Amsterdam office knowing that it “is on the cusp of breaking even” and knowing that if they did not they would be losing credibility within the market. [ (Gardener & Eccles, 2009) ] However, I believe that long term goals could hurt short term profits which will, in turn, hurt long term profits. According to the growth figures provided, Eden McCallum should look at reducing overhead; and limiting the number of partners to reduce salaries paid. 2. At the outset of the case, Advisory Board Member, Robert Harris, said, “One rarely regrets cutting too...
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