DennysCaseStudy0800am[1]

DennysCaseStudy0800am[1] - DennysCaseStudy1 Dennys A Case...

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Denny’s Case Study  1 Denny’s – A Case Study Presented by: Faizan Farooq Malik Khan Tracy Reader Yacine Thiam MGT 540: Managing Diverse Organizations Professor Arturo Venecia II May 25, 2011
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2 Abstract (Faizan Farooq) A prominent diner with near 60 years of history in American heritage becomes the center of media scrutiny in the early 1990’s. Founded in 1953, Danny’s Donuts at the time was a part of Flagstar Corporation, now known as Advantica under the name Denny’s. A restaurant that began as a small local coffee shop in Lakewood, California saw stellar sales in its early years; which paved the path for instantaneous growth opportunities. In 1966 just over ten years from establishment, Denny’s makes its Initial Public Offering which shortly triggers multiple mergers and acquisitions; which led to Hall of Fame quarterback Jerry Richardson becoming CEO. Although the company saw great growth opportunities, it suffered a setback do to its absence of diversity. This lack of diversity was transparent in the corporate culture of Denny’s, both in its employees and in the abrasive manner customers were treated. The goliath of diner’s faced variations of lawsuits and litigations due to its lack of diversity. In this time of difficulty and turmoil comes a former executive from Burger King James Adamson to lead a key initiative towards change.
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3 Question #1 (Tracy Reader) Has Jim Adamson been successful in changing the corporate culture at Advantica? Jim Adamson has been successful in changing the corporate culture at Advantica due to his authentic commitment to change. He understood that affecting change at a cultural level was an important dimension that would ultimately contribute to a systemic change in attitudes toward diversity (Canas, 2010, p47-50). The cultural dimension is the dimension tied to the core values and beliefs in the organization. Opportunities and Challenges of Workplace Diversity identifies six areas of focus that are tied to this dimension of organizational change, and these areas of focus parallel those for which Adamson orchestrated a change management plan (p49). First, as CEO of Advantica, Adamson embraced the concept that leadership commitment drives organizational change (Canas, 2010, p49). Adamson made an immediate impact announcing his commitment at his first meeting with his employees. He stated openly that he was going to advance women and minorities. He was quoted as saying “I will fire you…if you discriminate. Anyone who doesn’t like the direction this train is moving had better jump off now (Rice, 1996).” Eight out of twelve top officers left the corporation within a short period of time thereafter. Abramson also demonstrated leadership commitment by the precedent setting move of naming Rachelle “Ray” Hood-Phillips to the first Chief Diversity Office position ever created in the US (Foster, 2010). Not only would the Chief Diversity Officer position be new, but the holder of the office would be one of the few people that would report directly to the CEO. Advantica refused to delegate the responsibility to a team member buried within the reporting of
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DennysCaseStudy0800am[1] - DennysCaseStudy1 Dennys A Case...

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