Week 8 Final Paper Sonoco Products 2
Sonoco Products Company
Case Study
California Baptist University
Professor J. Avila
BUS 343-DE, Human Resources Management
August 23, 2013
Abstract
This is an analysis of the Harvard Business School case study - Sonoco Products Company. This analysis outlines the challenges of Sonoco Products Company to revise its corporate strategy in order to remain competitive and continue its growth in the volatile, ever-changing global packaging industry.
In 1995, Cindy Hartley, Senior VP, Human Resources, came to Sonoco and found the Human Resources (HR) function lacking. She began working on a plan to restore and tie HR processes to Sonoco’s business objectives. In 2000, Harris DeLoach became the Chief Executive Officer (CEO) of Sonoco and also recognized concerns with their Human Resources. Additional concerns were raised regarding Sonoco’s general business strategy (in light of the changes to the industry), and the company’s weakening returns. CEO Harris DeLoach knew that one of the ways he could cut costs was by restructuring the human resources department. As a result, DeLoach instructed Cindy Hartley, senior vice president of human resources, to develop two new alternative HR structures that would not only cut costs but would also achieve three objectives. The new HR structure would have to reduce HR’s cost by 20%, or 2.8 million (Thomas, Groysberg, & Reavis, 2005, pg. 1).
The three objectives were to (1) create a system of consistent HR policies and procedures, (2) increase general managers’ accountability for employee development and retention, and (3) provide customized support for each branch of the business. Additionally, it was clear that Sonoco had communication issues that could also be improved (Thomas et. al., 2005, p. 1).
Background
In 2005, Sonoco Products Company, a manufacturer of packaging products for use in industrial and consumer goods, was a $3.2 billion firm with 150 locations around the United States, the source of nearly 80% of its
Case Study
California Baptist University
Professor J. Avila
BUS 343-DE, Human Resources Management
August 23, 2013
Abstract
This is an analysis of the Harvard Business School case study - Sonoco Products Company. This analysis outlines the challenges of Sonoco Products Company to revise its corporate strategy in order to remain competitive and continue its growth in the volatile, ever-changing global packaging industry.
In 1995, Cindy Hartley, Senior VP, Human Resources, came to Sonoco and found the Human Resources (HR) function lacking. She began working on a plan to restore and tie HR processes to Sonoco’s business objectives. In 2000, Harris DeLoach became the Chief Executive Officer (CEO) of Sonoco and also recognized concerns with their Human Resources. Additional concerns were raised regarding Sonoco’s general business strategy (in light of the changes to the industry), and the company’s weakening returns. CEO Harris DeLoach knew that one of the ways he could cut costs was by restructuring the human resources department. As a result, DeLoach instructed Cindy Hartley, senior vice president of human resources, to develop two new alternative HR structures that would not only cut costs but would also achieve three objectives. The new HR structure would have to reduce HR’s cost by 20%, or 2.8 million (Thomas, Groysberg, & Reavis, 2005, pg. 1).
The three objectives were to (1) create a system of consistent HR policies and procedures, (2) increase general managers’ accountability for employee development and retention, and (3) provide customized support for each branch of the business. Additionally, it was clear that Sonoco had communication issues that could also be improved (Thomas et. al., 2005, p. 1).
Background
In 2005, Sonoco Products Company, a manufacturer of packaging products for use in industrial and consumer goods, was a $3.2 billion firm with 150 locations around the United States, the source of nearly 80% of its
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