Reference no: EM132872974

Every subsidiary in the group is being re-analysed to ensure we understand whether it's a cash cow, a star, a dog, or a question mark in its respective market. The dogs will be sold, some of them probably for knock-down prices - and those we can't sell will have to be wound up. There are two things in the HR area. First, HR will play the key role in winding up some plants around the world and then the Board says the HR area needs targeting. They're calling into question the amount of money that goes into international HR, all the leadership development stuff, the sales conference, the ring-fenced training budget etc. Once we are a smaller, fitter operation internationally, there won't be the same headcount needed in the HR department The whole 'we're all one worldwide family thing' no longer curries favour with the board. The major institutional shareholders have said they think our performance as an international firm has been too indulgent. We're going to have to be much more cost focused and flexible in the future. This won't mean that the whole of international HR is finished but we are going to have to streamline it very significantly and this will be part of a new orientation to the way we do business: we are going to have to emphasise ROI more and cuddly corporate culture a lot less.

What approach are the board wanting to take and what broad type of global HR strategy is being signalled?