Christina Gold
Christina Gold Case Study
Why was the restructuring needed at Western Union – or wasn’t it?
Western Union at the time when Christina Gold had in intention to restructure, was a structure pure American – Centric with the main operations managed from US. This structure will not be efficient and will not respond to the goals of growth of Western Union. The trend for growth showed in 2002, when Western Union reported sales of $3,2billion and eighty percent increase compare with the prior year, can not be sustained with the existing structure that’s why is it mandatory to change the current approach.
Christina Gold wants to change Western Union structure from a domestic business and international division as it was in 2003 to a structure based to a global business with regional structures and with a global marketing plan that allows each region to spend their time focusing on customer needs. The existing business with many products on the domestic market and only one product on the international market , money transfer, will not fits with the aim of having a common platform for domestic and international business. So it is obvious that the restructuring process could not be avoided if Western Union wants to bring their services to market more effectively and wants to have brand consistency across the globe.
Even the restructuring process is not simple and needs a lot of resources it is an opportunity for Western Union to sustain the company to meet customers’ expectations, followed the market trend, adapted to each culture market, and understood the needs of individuals. Do not forget that 85% of Western Union’s revenues came from customer-to-customers (C2C) and 14% from customer-to-business (C2B).The main customers of Western Union are the immigrants and therefore the company anticipated the growth in the money transfer business in correlation to immigration and related to employment rates worldwide. The result is that the company have to follow
Why was the restructuring needed at Western Union – or wasn’t it?
Western Union at the time when Christina Gold had in intention to restructure, was a structure pure American – Centric with the main operations managed from US. This structure will not be efficient and will not respond to the goals of growth of Western Union. The trend for growth showed in 2002, when Western Union reported sales of $3,2billion and eighty percent increase compare with the prior year, can not be sustained with the existing structure that’s why is it mandatory to change the current approach.
Christina Gold wants to change Western Union structure from a domestic business and international division as it was in 2003 to a structure based to a global business with regional structures and with a global marketing plan that allows each region to spend their time focusing on customer needs. The existing business with many products on the domestic market and only one product on the international market , money transfer, will not fits with the aim of having a common platform for domestic and international business. So it is obvious that the restructuring process could not be avoided if Western Union wants to bring their services to market more effectively and wants to have brand consistency across the globe.
Even the restructuring process is not simple and needs a lot of resources it is an opportunity for Western Union to sustain the company to meet customers’ expectations, followed the market trend, adapted to each culture market, and understood the needs of individuals. Do not forget that 85% of Western Union’s revenues came from customer-to-customers (C2C) and 14% from customer-to-business (C2B).The main customers of Western Union are the immigrants and therefore the company anticipated the growth in the money transfer business in correlation to immigration and related to employment rates worldwide. The result is that the company have to follow