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Global Roll Out: a Case Study

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GLOBAL ROLL OUT: A CASE STUDY OF PT. XYZ INDONESIA REBRANDING PROGRAM

In February 2007, XYZ - a North American mining corporation, acquired 100% share ownership of ABC Limited, one of the largest nickel mining and processing companies in the world. PT. ABC Indonesia, which was 60% owned by ABC Limited, was inevitably also affected by the acquisition process. The news about the acquisition was immediately spread among the employees and concerns about the possible changes in the company arose immediately. Six months after the acquisition, XYZ sent some senior officers to Indonesia to assess the possibility of rolling out a rebranding program in Indonesia which covered the implementation of a new corporate vision, mission and values, implementation of key global policies and lastly the change the company name from PT. ABC Indonesia into PT. XYZ Indonesia.
The visit instantly triggered a strong reaction from the labor Union and employees. They filed a protest arguing that they should have been involved in the discussion about potential changes which would have significant impacts for the employees. In addition to that, they also demanded a good-will payment from the new owner. The Union threatened to call a strike if their demands were not met. After several meetings with representatives of Union, agreement could not be reached. Nearly 1200 employees, roughly one-third of the company workforce, went on a strike for 11 days and caused the loss of approximately US$10 million. Fearing a bigger loss, management returned to the union and stated that the rebranding initiative would be put on hold. The strike ended.
Having just experiencing severe industrial dispute with Union, Local management hesitated to follow up on the rebranding program. The issues were compounded by suspicions among employees and Union whenever the company wanted to execute an initiative. They

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