1CASE STUDY Executive Summary This is the report based on the case study of Lumen Legal and their new venture. This company CEO has taken a serious measure to fight the fall of revenues in recent years. The company has started well-off but faced some challenges in maintaining their business profits. This makes the CEO to decide to expand their business in some of the other parts of the USA and providing low price services to sustain the competition there. Outsourcing legal services from India was the solution selected by the CEO. This report is to examine the effectiveness of the decision and suggesting necessary strategies for managing the changes. What and how changes would be implemented in the organisation is the main discussion. A recommendation part has been attached at the later part of the report along with a conclusion.
2CASE STUDY Table of Contents Introduction....................................................................................................................3 Analysis of Case study...................................................................................................3 What would I have done if I were the CEO, and why?..................................................4 What organisational design changes would I implement?.............................................5 What changes in HRM would be necessary?.................................................................6 How would I bring about the necessary organisational changes?..................................6 Recommendations..........................................................................................................7 Conclusion......................................................................................................................7 References......................................................................................................................9
3CASE STUDY Introduction The prime interest and goal of any organisation are to earn higher revenues and reputation. In doing so, the organisations might face a number of challenges that they have to mitigate through skilful management and intelligent strategies. Changes are inevitable in the organisational setup, and it has to be implemented with effective decision making abilities. The case of Lumen legal is one such example of successful implementation of organisational change. This company was known as Contract Council earlier and is owned by David Galbenski and Mark Adams. It was established in 1993. This report would analyse the case of Lumen Legal and examine its steps towards change- making. The reason for choosing this company’s case is that the CEO attempted to take a high risk while deciding the new strategy for the company profit and that would give an overview of the impacts of change and its management. In the course of this study, we would concentrate on how much the changes are relevant for the company and what HRM strategies could prove effective for the successful implementation of the changes in the selected company. Analysis of Case study Contract Counsel or presently known as Lumen Legal was one of the companies that have earned a huge profit margin in the minimum time span. The leadership qualities of David Galbenski helped the company to earn a revenue of $6.5 by the end of its 10thyear. Earlier, the company provided legal help to the clients in the Midwest, and the business was limited to the USA. The lawyers were all hired from different part of the U.S., and the price of consultation was almost half than other companies in the market. Later the CEO decided to go global as the company was facing a drop in its growth. First, Galbenski decided to expand
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4CASE STUDY his business in the stiff competitive markets like Washington D.C., New York and Boston. The problem is that the company would not manage to sustain its lower price in this competitive market if it does not cut short its costs. That is why the CEO thought of outsourcing the lawyers form relatively cheap markets like India. This would help the company to cut short its lawyer budgets and offer the same low price services to the newly gained clients in other parts of the USA. The CEO did his required research on Indian legal services agencies and decided to hire two offshore companies for his new venture. He decided to implement the change immediately so that the company need not face any further loss is business. There are a number of things that were influenced by this decision of Galbenski. First the employees of the company were not ready for this huge change, and secondly, the company now have to give the same quality of work, using the Indian lawyers, in the same low price. Cultural and language barriers are another problem that needed to be sorted in the changing process. What would I have done if I were the CEO, and why? The decisions made by CEO Galbenski was big and challenging to cope with. But there is no doubt that this is an effective call for the company to regain its financial advantages in the USA market. Expansion is needed for the company as it is continuously losing its market. Cutting the cost is one of the most important strategies of gaining competitive advantage in a stiff market (Beech & MacIntosh, 2017). The only problem with the decision is that it has been taken fast, and the CEO is expecting the things to happen rapidly. More time would have been given in implementing the change, or it could be done through some stages.
5CASE STUDY Hiring lawyers form overseas could be a risky decision as it would concern the quality of work. Therefore, the decision-maker needs to be more patient with the process of selecting the right partner in this venture. The quality assurance of the service is inevitable in getting a loyal customer base for an organisation. Another of the positive aspect of choosing the lawyers from India is that the low cost and ability to provide service 24-7. One must not miss this context of the offshore business as the offshore employees of India would cost much low price for the money, and they would be able to provide 24-7 service to the clients for the time difference. Therefore, the decision taken by the CEO of Lumen Legal is quite effective if the changes could be implemented in an efficient and patient way. What organisational design changes would I implement? Selecting target Clients The first thing that should be taken into consideration is the nature and types of customers for the new markets. Entering the market is a challenging decision, and it is risky as well. Therefore, the organisation first need to assess the demand of the customers they are targeting (Tidd, & Bessant, 2018). As the company is trying to expand its business in the competitive markets, it has to clearly segment the clients and decide its position in the market. This would help the CEO to decide what steps should be taken and to what extent. Advertising More importance should be given in the advertising and promotion when a company wants to change its perceptions, launching a new service (Fernandez & Rainey, 2017). The decision of changing the name of the company seemed quite reasonable, but it would only give outcomes if it is promoted effectively to the clients. The company has a certain