Challa Fletcher
March 13, 2012
GM504-01N: Organizational Excellence & Change
Professor Rogerson
Unit 1
Case Analysis Christian Gold is met with some opposition as she works to define Western Union’s global placement. The new president of Western Union points out that Western Union International, a single entity responsible for all of Western Union’s international organizational operations, was not sufficient enough to meet the global clientele. Fully versed in geography and varying cultures, Gold understands that each region must be treated uniquely based on its regional needs and culture (Gosling & Mintzberg, 2003?). By 2003, Gold proposes that Western Union International be divided into three divisions: the Americas; Europe, Middle East, Africa, and South Asia; and Asia-Pacific. Each region will be led by a division head. Gold’s theory is that each leader head can better manage the cultural needs of the individual regions, helping Western Union better target its consumers in different cultural markets. The fear of lost revenue and product control is causing pause in the parent company, First Data Corporation. Gold also faces opposition of her peers who agree with her strategic plan to grown Western Union International but differ on other aspects such as profit and loss responsibility and decentralization.
Major Issues Expanding globally requires putting trust in the hands of people who may not be familiar with the standards of operations. Western Union is U.S. centric and despite being in 195 different countries, they have not relinquished any control over marketing or their product lines. Giving up control of long U. S. managed projects is not well received amongst the current four senior vice presidents (Konrad & Mitchell, 2005, p. 6).
There is a combination of interactive management and inactive management making decisions for Western Union . Western Union has steadily grown;
References: Ackoff, R. (1999). Re-Creating the Corporation: A Design of Organizations for the 21st Century, Oxford University Press. Bryant, J.H. (2010). Leading with love in a fear-based world. Leader to Leader, 2010(56), 32-38. Konrad, A. & Mitchell, J. (2005). Christina Gold Leading Change at Western Union. Harvard Business Publishing. Product #906M07-PDF-ENG. Kouzes, J., & Posner, B. (2009). Five best practices. Leadership Excellence, 26(7), 3-4. Lawler III, E. (2003). Why treating people right pays off. Treat People Right. In J. S. Osland, M.E. Turner, D.A. Kolb & I.M. Rubin (Eds.) (2006). The organizational behavior reader (8th ed.) (pp.581-593). Upper Saddle River, NJ: Prentice Hall.