Bucharest Academy of Economic Studies Faculty of Business Administration

Change Management

Bucharest 2012
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Table of Contents
Napolact History ........................................................................................................................................... 3 Fresh dairy market in Romania ..................................................................................................................... 3 Friesland takeover of Napolact ..................................................................................................................... 5 Objectives: ................................................................................................................................................ 5 Forces involved in change: ........................................................................................................................ 5 Preparing the change. Defining organizational change management strategy ....................................... 5 Making The Change................................................................................................................................... 6 Difficulties that can appear during the process of organizational change ............................................. 8 Monitoring and strengthening the change ............................................................................................. 8 Products developed and improved after takeover. .................................................................................... 10 Conclusion ................................................................................................................................................... 11 Bibliography ................................................................................................................................................ 12

Napolact History
Napolact can be tracked back in time in Vlads workshop. Documents about it exist since1905. The producer of butter and cow cheese, the Vlad workshop manufactures yoghurt for the first time and introduces it on the market in Cluj. Starting 1936, he produces fermented and melted cheese that he exports to different countries, among them the USA. After nationalization in 1934, Vlads workshop turns into The Manufacturing and The Industrialization of Milk Cluj, that, after 1990 is also known as S.C. Napolact S.A. In 2004, Napolact is bought by the Dutch Friesland Foods. In 2009, it merges with Campina, forming FrieslandCampina.

Fresh dairy market in Romania

Acidic dairy products are extremely popular worldwide because of the pleasant sensory characteristics and potential they have for maintaining and even improving the health of consumers. Consumption of dairy products in general and particularly acidic dairy products, has reached a new dimension in recent years due to its beneficial effects on health, effects
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demonstrated by numerous nutritional and medical research. Correlations between consumption of yogurt and kefir and proper functioning of the digestive, immune and even circular are just some of the reasons that consumers worldwide are increasingly drawn to these foods. In general, Romanian consumers are not aware of too clear differences between yogurt, sana, buttermilk, kefir and that their therapeutic qualities because it has not promoted anyone. Slightly sour taste makes them similar. If they make a test "blindly" for sana, buttermilk and kefir, the difference between brands belonging to different manufacturers would be more difficult to see, which is not the case with various brands of yogurt, for example. Regarding fresh dairy based cultures (sana, buttermilk, kefir), with some exceptions, there is no premium brands, the commercial bids in uniform qualitatively and commercial aspect. In fact, this is consistent with the pulse of the market, few consumers are willing at this time to pay for the products image lacto-acidic. For an analysis with a high degree of specificity Categories Lacoacid elements are grouped into the following subdivisions: yogurt and buttermilk; sana and kefir, sour cream and cream. Napolact is a Romanian dairy company . SC Napolact S.A. has two factories in Cluj Napoca (Baciu) and of Taga village. One of the largest dairy producers in Romania, Napolact has a history going back more than a century. It began in 1905, when certified in Cluj-Napoca dairy firm, Vlad workshop where they made butter and cottage cheese. Vlad workshop develops over time and reaches in 1936 to produce yogurt and cheeses. After nationalization in 1948, Vlad becomes "Milk Industrialization Company Cluj", and in 1990, the company turns Napolact, Dutch holding company subsequently purchased Friesland Foods in 2004. It merged in 2009 with Campina, forming FrieslandCampina, one of the largest dairy companies in Europe. Most pronounced development of the company was registered in the period 1960-1975, when it was built new milk processing plants and existing ones were upgraded. Until 1989 the company has grown continuously modernized and production capacity. In 1991 the organization changed its business, becoming a limited company owned by the state, and in early 1996 the company became a joint stock company fully 51% of which is owned by business managers and the employees. Today, Napolact is a leading brand of the Dutch and Romanian dairy market benchmark Napolact brand was awarded in last 3 years more Effie Awards for effectiveness of communication campaigns, and new product ranges "Tastes of old" (Silver Effie 2009) and "opportunity time" (Gold Effie 2010), developed the rebranding campaign started in 2008. In 2010, the successes scored by previous years Napolact won a Gold and Sustained Success category, prizes for all activities in recent years under the conceptual umbrella "as before". Traditional spirit as he caught the company slogan, "The past" and Napolact new identity products, is the force that guides employees in everything I do, whether it is communication existing products, revival of traditional products or developing new ones. Napolact aims notto make any compromises. He also proposes that the respect for quality, perfect flavor for dairy products to be found equally across the range Napolact. Offering high quality to meet the high standards imposed by the European Union wants the company to obtain a turnover and a profit as high as possible and maximize customer satisfaction and loyalty. That's why the company invests in modern technologies of production and milk collection and staff professional
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development in order to maintain its quality standard products already recognized internationally.

Friesland takeover of Napolact

Objectives: 1. Maintaining global position and winning the same position at national level by increasing the efficiency of the overall business activity reflected in the upward trend of annual sales 2. Harmonization the objectives of the organization with those of employees 3. Creating conditions for improving employee performance 4. Maximize employees development potential 5. Develop the product portfolio of the company

Forces involved in change: Top Management Middle Management Field Force External Forces Preparing the change. Defining organizational change management strategy Team of achieving change will be made up of several members, carefully selected from each level of management by specific criteria. Each member will be assigned a role according to specialization within the firm. General Manager: - Choose a responsible project team experienced in change management, able to guide the change process and to use resources. - Adopt a set of priorities to ensure a more rational division of activities between daily work and time allotted for change management

Regular meetings will be held to analyze the evolution process of progressive change and adaptation strategies initial. Then the model will act initiators of change is "Business Unit" which allows a better adaptation of the organization to the rapidly changing global pharmaceutical market, especially domestic.

Making The Change Companys management department and each department of the organization play a certain role and can influence the life cycle of the "product" and the company's competitive position is determined by the diagnosis and assessment of factors such as the market, the technology used, managerial capacity , financial power, the image of the product / service to customers, consumer loyalty to the product. Model of "Business Unit" means: - Complete reorganization of the current structure of the organization in the sense that each Business Unit will have greater independence and more control over their human and financial resources. The advantages of this structure are: speed and flexibility of action low cost of device managerial decision simplifying the understanding of each member tasks ease evaluation of activity and performance formal and informal communication, fast and simple fewer administrative staff small fluctuation of labor lower risk of promoting the wrong people elimination of certain decision-making levels, which will decrease the latency period in solving certain problems and thus to reduce bureaucracy

Decision-making levels will be represented by Business Unit Manager and Regional Manager so that it will be possible a better communication between departments.

Organizing monthly meetings to analyze the existing situation of regional sales performance and motivation level of each employee thus preventing the accumulation of frustration, conflict situations. At these meetings the manager is better informed about a problem about alternative solutions and the results of these solutions, meaning that the manager can control or at least anticipate events and possible outcomes can be sure. The decision is relatively easy, in the sense that all team members will be trained to provide alternative solutions being chosen the best option that generates the most profitable outcome.

The managerial level, which is often acting in conditions of certainty, is the one of the first line (Regional Manager). At this level there are not too many alternatives and therefore decisionmaking process is time-consuming. It will be followed the replacement of the routine and adaptive decisions with the adaptive and innovative ones, the plans will be transferred from the first line and middle management to the the first line and the top management. Human Resource Management has an important contribution to achieving the organization's objectives. An essential objective for any organization is to achieve the performance standards established for its employees. Concern for human resources in the organization level requires clarification of some basic rules. This set of rules is the policy of the organization in relation to human resources.In many cases, the HR department must demonstrate initiative in connection with the introduction of new policies, review periodically the existing ones or remove them if necessary. Key policy areas of Human Resources are including: 1. Recruitment and selection; 2. Performance Evaluation; 3. Career Development 4. Training and development; 5. Motivation and compensation systems; 6. Communication; 7.Legislation and Labour Protection.

Performance evaluation is an important tool in strengthening the management of an organization. By evaluating performance, it improves the relationship between the employee and the boss, enhances communication and evaluate achievements during the evaluation. Defining the objectives of the performance evaluation: - employee motivation - highlighting performance - identifying, analyzing and finding solutions to performance gaps; - establishing rewards based on results; - improving communication; - improving relationships between managers and subordinates; - help decision making process about promotion, transfer and restructuring; - informing employees of their development needs. Difficulties that can appear during the process of organizational change the possibility of interest conflicts between organizational subunits (professionals look after fulfilling their own objectives, underestimating the interests of the others or of the organization) the excessive centralization that can lead to abuse of authority the possibility of conflicts between autonomous units on one hand and between them and the top manager on the other hand deficiencies in defining expectations and not setting clear objectives that can create social and psychological stress to the team by continuously changing systems of work and division of responsibilities

Monitoring and strengthening the change Can be done by using a diagnostic analysis. The basic principles of this are: - making this analysis by multidisciplinary teams formed by managers and specialists - diagnosis based on a specific methodology that combines appropriate methods and techniques (direct observation, interview, questionnaire analysis, consultation documents and instantaneous observation) - the analysis should have clear objectives - avoiding recommending some stiff solutions - interpretation of the results in the context of existing realities - continuity and periodization diagnostic analysis is done at the beginning of an action of organization and management but ongoing also, in order to prevent the influence of the rumors that could take the place of formal information - training a properly behavior of the parts inside the diagnostic analysis because it depends on how partners understand the objectives of the diagnosis
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In conclusion, to achieve successful organizational change is recommended the shift from directed change imposed, that can generate resistance phenomena, to continuous change - "learning organization".

"Learning organization" is characterized by total employee involvement in the process of guidance throughout collaboration, in ensuring collective liabilities for the shift to the values or principles of the organization. This organization has people who continuously develop the ability to achieve desired results, learning to do everything together. The positive effects of applying change management in the company will be: - increasing the realism of the companys objectives and its components - increase personal motivation - developing a climate of creativity - improving managers' time by eliminating the use of control due to self promotion - strengthening the responsibilities of both objectives for managers and executives - linking wages with actual results - as a result of all these improvements it ensure sensitive increase of the business efficiency The major limit of the use of change management is the difficulty to change mentalities and employees behavior. Given the company's merger with Campina Friesland Foods will form a new management team that will lead the business headquartered in Cluj-Napoca site. Thus, management will be integrated into the Campina Friesland Foods Romania. Napolact company is part of Friesland Campina, Friesland Foods since merged with Campina, and, so far, Napolact was part of Friesland. Friesland Campina company's headquarters will be in Cluj-Napoca. Friesland-Campina merger resulted in a company that bears this name on January 1 and has 22,000 employees and 100 plants worldwide, the third largest dairy producer in the world. Taking the majority stake in Firiesland is a normal process. The Dutch company is a force, and we had no way to oppose the takeover. At least at first, there will be no major changes in company policy, "said Vasile Garbouan, general manager Napolact. Capital market sources say that Friesland took already control completely over Napolact due to transfer of shares of the PAS and the purchase of another 11% of the shares remain a mere formality. Garbouan resigned late last week, saying that he has plans to retire. He admitted, however, that he had "some misunderstandings" with the Dutch in Friesland. "Maybe my withdrawal is necessary. Friesland will develop this business in a Western style. Am a certain age, 69 years. Wise to back off when you feel like you cant move forward," said Basil Garbouan.

Napolact`s worth on the market is over $ 230 million Napolact sold in 2010 USD 689.6 billion, with 56.6% over 2009. In real terms, the turnover of the company rose by 16.9% from U.S. $ 20.29 to 23,730,000. Napolact obtained last year a net profit of 69.05 billion lei, up 28.6% over 2009.

Products developed and improved after takeover.

Napolact brand portfolio is part of Friesland Romania campaign, which is the largest producer of milk consumption market in Romania. Friesland also owns international brands Oke, Dots, Milli complete and local brand Napoca. Napolact products are a continuation of traditional products from farms, aiming at keeping their classical form, natural, no preservatives. Local tradition continues and the Taga famous cheese, which is matured for centuries in a cave. Napolact Romanian traditional products made of the highest quality, high standards imposed by the European Union. The company invests in modern production technologies and milk collection and staff professional development in order to maintain its quality standard products already recognized internationally. The best recognition of the company to continue Romanian tradition is that the list of Romanian traditional products offered for certification in the European Union, the company Napolact be found in 10 products: cheese Nasal, Taga, Manastur, county, Alpina, cheese and Dej Bobalna , bellows fermented cheese, cottage cheese and yogurt Cedra Huedin. The product range includes all kinds Napolact specific dairy industry: Milk from the heart of Transylvania Simple yoghurts: Jus Good yoghurt, Gentle yoghurt, Mighty yoghurt Buttermilk Sana Kefir Butter Sour cream: Gospodar, Prima Tastes from long ago range yoghurt with green nuts jam, yoghurt with sour cherries jam, yoghurt with black currant jam, rose jam. Reason for a break range- sana with honey and walnuts, sana with honey and hazelnuts, sana with black currants, buttermilk, sana, kefir and Gentle yoghurt. Cheese: Classic: Moeciu fermented cheese, burduf cheese, cottage cheese, Boblna and Tarnia (smoked) yellow cheese, Mozzarella, Huedin cow-milk white cheese. Delicacies: Nasal, Trnava, Alpina, Smoked Alpina, Montana.

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Cedra range: Huedin sheep-milk white cheese, Huedin buffalo-milk white cheese, Dejcow and sheep milk yellow cheese, Sacele sheep-milk yellow cheese. Napolact SA was always concerned to produce and distribute the highest quality milk. The raw material is currently collected exclusively from its partners in Transylvania and Napolact products are manufactured to high standards in manufacturing in the region of Transylvania. Also Napolact is a trusted brand traditions built on Transylvanian values "said Szautner, quoted in the press release. The range includes cheese from the cheese nasal Taga, a product with protected designation of origin in the European Union and Alpina Alpina Smoked cheese, and Montana and Trnava. These are soft cheeses fermented paste of cow's milk, certified as traditional products. Cheese is packed in wooden box to keep special flavor longer. Following the rebranding have changed the names of six products in the range of thirty Napolact that the company sells the present. Thus, yoghurt Extra called soundly, yogurt Classic, only good and cream Napoca called house hold. In February of 2010, Napolact went through a rebranding process, focusing on the refresh link with the past. Under the slogan "The past" Napolact took off ramp 100-year history, altering their packaging and product names. The company has placed on shelves and only healthy yogurts' Good, cream and yogurt Easy Thrifty. Napolact products are present nationally in all major international retail chains and are appreciated by consumers across the country. FrieslandCampina has sold its ice cream division to Unilever. Agreement involves taking existing brands under the umbrella brand Napoca and the transfer of employees working in this sector, while production lines will remain the property of Friesland. The company plans to keep the name Napoca. The acquisition has been approved by the Competition Council. Over the years Napolact got involved in some social responsibility activities like sponsorship for some events and even created a guided tour of their factory and cave at Taga for children and tourists that want to see for themselves how the products are made. As for the employees they are treated like part of the recipe for Napolact because they consider that if you give respect to your employee then he will also respect the products of the company. Social responsibility needs to come from within the company and has a very important purpose for the well development of the activities.

Conclusion
Napolact is a company that values tradition and natural taste of their products and has tried to perfect their recipes over the years. Being a very old recipe for their products many of the primary ingredients have stayed the same but have been perfected in order to fullfil the demands of sanitary and commercial standards. The unique aspect of this dairy product company is that they still use the original cave of the village called Taga .
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At aga, Cluj County, in a natural cave from the Middle Ages, Napolact manufactures several types of cheese in microbiological conditions that are unique in the world. The rock of the cave and the Brevibacterium linens bacteria which developed in it, the constant temperature and humidity, act on the cheeses produced here. The financial aspect is improving from year to year the uniqueness of their products catches the eye of the consumer in a very interesting way. The constant demand for dairy products also helps the financial status. Napolact is a true Romanian brand that prefers to stick to tradition and uniqueness in order to be a competitor on the Romanian market.

Bibliography
www.napolact.ro www.frieslandcampina.com www.zf.ro www.capital.ro

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