Sodexo Case Analysis

1. Pros:

1. Being a single integrated provider of services maximizes the value of each client.
2. Tend to provide services that aren’t capital intensive so lower overhead costs.
3. Structured globally so there is a platform for sharing knowledge and best practices.

Best practices can be transferred from client to client as well as industry to industry and this produce savings for company and clients.

1. Sodexo only delivers services that directly improve the lives of individuals. This increases their reputation and brand equity.
2. Sodexo’s philosophy allows them to be more responsive to the needs of their clients.
3. Maintaining ultimate client and employee satisfaction helps them achieve operational excellence and low employee turnover.
4. Don’t deal with subcontractors but rather train client’s employees which help their solutions sustain long term.

      Cons:

1. Centralized structure prevents more local responsiveness in their global subsidiaries. This responsiveness is particularly important in nascent markets.
2. Not providing capital intensive services keeps the firm from potentially lucrative sectors.
3. Primarily growing organically prevents the company from growing quickly which could result from more strategic acquisitions.
4. Not hiring subcontractors under any circumstance prevents potential cost savings.

1. People- Implement geocentric staffing policies so the best person gets the job regardless of background. Implement cultural, language and practical training to create more versatile employees that can be responsive to new challenges. Understand the values and norms of your employees worldwide to help improve their cultural fit in the organization.

Processes- Continue improving the client centric approach but be innovative and take risks. Adopt a transnational strategy to increase local responsiveness, potentially expand into new countries and expand their best practices knowledgebase. Incorporate control systems in the firm to evaluate the performance of subsidiaries and management.

Culture- Corporate culture needs to pervade the entire organization and improve efficiency and align with personal values of employees. Creating cultural hubs rather than a single corporate HR center will incorporate a diverse set of entities and employees into the process of maintaining a strong global organizational culture.

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