Reading Between the Lines
In 2014, Tim Horton’s was acquired by 3G Capital Partners LP. Since then, it seems that the acquisition is destined for success as the parent company (3G Capital) and its shareholders are reaping profitable rewards. These profits did not come from an unplanned, accidental approach. Instead, there have been and will continue to be, specific and tangible HR business strategies implemented as the company continues through the transition phase of the acquisition process.
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Where do the profits come from? The article speaks to the streamlining of services, cost efficiency and a new zero based approach to budgeting. What does this mean? Job loss, restructuring, outsourcing, downsizing, changes to infrastructure, and culture shift. The acquisition and merger of Tim Horton’s into an international parent company provides us with evidence of what the theory looks like in actual practice. Each of these elements has been part of the theoretical Strategic HR Planning discussions that have been included in course of study.
The ‘real life’ end result provides for a good news story about a successful acquisition and merger based on a profitable reward. What is not included in the story, so far, is the reality of this profitable success and its impact on the hundreds of employees who have lost their jobs.
This too should be included in the tangible HR business strategy, as this particular story continues to unfold.
Discussion Questions:
- Identify three HR business strategies that, when implemented, will result in increased efficiency for 3G Capital Partners LP.
- What are the back office functions that could and should be outsourced when two companies merge?
- What types of HR programs would help employees as they move through the transition phase of an acquisition or merger?
- In your opinion, is this a good news story? Why or why not?