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Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 2008
Length: 10 pages
Data source: Field research

Abstract

New Belgium Brewing Company has a culture of participative management and environmental stewardship and had been successful since its beginning in 1991. The company had implemented an employee stock option plan, had resources for generous company perks, and had successfully implemented innovative processes toward a sustainable business. The case describes a crisis for New Belgium Brewing Company when it missed financial projections and the management team decided to lay off employees, some of whom have had performance problems and others that were not needed. The company had never laid off employees and the series of events called into question the role of participatory decision making that had been central to the company's culture. The issues surrounding the layoffs quickly escalated, culminating with an emotional company meeting that is described at the outset of the case. The CEO has to decide what she should do following the meeting.

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Abstract

New Belgium Brewing Company has a culture of participative management and environmental stewardship and had been successful since its beginning in 1991. The company had implemented an employee stock option plan, had resources for generous company perks, and had successfully implemented innovative processes toward a sustainable business. The case describes a crisis for New Belgium Brewing Company when it missed financial projections and the management team decided to lay off employees, some of whom have had performance problems and others that were not needed. The company had never laid off employees and the series of events called into question the role of participatory decision making that had been central to the company's culture. The issues surrounding the layoffs quickly escalated, culminating with an emotional company meeting that is described at the outset of the case. The CEO has to decide what she should do following the meeting.

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