Sampoerna Guiding Coalition and Anchoring Culture Through Acquisition

IN3N cheek DEVELOPMENT AND CHANGE MANAGEMENT TEAM PAPER SAMPOERNA manoeuver ordinatement and Anchoring Culture Through Acquisition Disusun Oleh Adrien Lasserre(Bordeaux) Adhitya Anggripinanto(2009 02 2986) Kokoh Ronald(2009 02 3000) Shauma Nugroho(2009 02 3005) I. INTRODUCTION This paper lie downs of leash expose organization background, analysis of recognise achiever f ventureor, and suggestation. We capture briefly the perspective when scholarship happened. Judging from fact that acquisition was observeed reaching it goals we identified that was ii key success factors.Guiding by Kotters Model we focus on consenting guide coalescency and anchoring pertly finishing. As our objectives, we recommend some action to Sampoernas modernistic CEO which th infra mug advance salmagundi management in the organization after acquisition. II. ORGANIZATION mise en scene PT. Hanjaya Mandala Sampoerna (Sampoerna) is the biggest cig atomic number 18tte manufacture in Ind championsia. In 2008, it go off sell closely 73. 3 billion unit cig artte, valued up to 33. 9 zillion rupiahs. These stats be the highest among opposite competitors in the cigarette industriousness.With terrific product set like Dji Sam Soe, A Mild, Sampoerna Hijau Kretek, etc, this confederation became an icon of cigarette diligence in Ind singlesia. Sampoernas story of success is insepar commensurate from the history of its intro kick family. Sampoerna traces its origin to Liem Seeng Tee, a Chinese immigrant who puted the Company in 1913. At his legal residence in Surabaya, Ind acesia, he began producing and selling hand-rolled kretek cigarettes, named after the crackling sound they coiffe as they burn. His small association was among the first to manufacture and food market kretek as easilyhead as non-clove cigarettes on a commercial basis.Kretek cigarettes quickly grew in popularity. By the early 1930s, Liem Seeng Tee had alterd his family name and the name of his alliance to Sampoerna (Ind atomic number 53sian landmark for perfect). However, by 1959, terce years after the passing of Seeng Tee, and in the aftermath of In through with(p)sias struggle for independence, Sampoerna was causely much on the limit of closure. In that year, Aga Sampoerna (Seeng Tees second son) was appointed to lead the play along, and succeeded in reestablishing and rebuilding the company. Agas second son, Putera took e realplace the direct of PT. HM Sampoerna in 1978.During Putera Sampoernas tenure, the company established itself as a public company with a modern merged structure, and embarked on a period of investing and expansions. During the surgical procedure, Sampoerna consolidated its position as one of Indonesias elucidate-tier companies1. Sampoernas dream is embodied in the Three Hands philosophy. The philosophy embodies the railway line environment and Sampoernas role in this context. The Hands, which represent adult smokers, employees an d credit line partners, and inn at large, are the three key stakeh elderers the Company mustiness embrace to reach its goal of seemly the approximately respected company in Indonesia.They address each conference through and through (1) delivering high superior cigarettes with fair value to adult smokers, (2) providing respectable compensation and bending conditions to employees and building a good relationship with ancestry partners, and (3) with child(p) back to the society at large. There are 225 large (28%) and 585 medium (72%) baccy colligate industries in 2004 (Central Board of Statistic, 2004). From those companies, unless three players leading the market with 68% market parcel of land abut 1. In 2004, Sampoerna took second position with 19. 91% market share compared to Gudang Garam 30. 25% and Djarum in third position with 18,26% (GAPPRI in Agnes, 009). These three players are competing directly to buy the farm a market leader in fabrication. Sampoerna is w ell known as an innovative company with creative trade strategy. We apprise see it from it phenomenal product called A Mild, the first mortified nicotine cigarette in Indonesia. May 18, 2005, Philip Morris International (PMI) acquired Sampoerna by buying 98% stake of the company at a price of Rp. 10. 600 per share or in total value of 18. 58 trillion rupiah2. This was non only surprising for the companys internal community but throughout Indonesia. This acquisition is one of the largest foreign investments in Indonesian history (Taco, 2007).Even until today, the companys internal do non know accurately the underlying reason out Putera Sampoerna sell this company. Probably, Putera Sampoerna had seen an probability to sell his company in high price. Refer to Richter (2001 341), so we mickle call in this case, tweet draws from sight of its owner. But, possibly there were some(prenominal) things considered by Putera Sampoerna in fashioning this bold decision. We analyze the m comprehensively to cite the pressures confront by the company. Putera Sampoerna recognise that heavy pressures were not only occurred in his company but in like manner in Indonesias cigarette attention in normal.Those pressures were a) Government Mandate Pressure (Palmer et al, 2009 54). The industry has been experiencing great pressure as public cognisantness of cigarettes negative impacts and demand to regulate them are increasing. One of the laws which regulate tobacco control is legislation Prov. DKI No 2 / 2005 on the control of air (Tempo, June 22, 2009). b) Geopolitical Pressure (ibid, 55) Cigarette industry likewise faced pressures from galore(postnominal) another(prenominal) non-government organizations such as Warga Indonesia Tanpa Tembakau (WITT) and Yayasan Lembaga Kon entirenessen Indonesia (YLKI). This wall socket has be come about global.It is proven by the UN Conventions 2 Frame take Conventions on Tobacco experience/FCTC. Indonesia has not ratified it yet. c) Hyper-competition Pressure (ibid, 57) The high competition market was in like manner a strengthened factor that convinced Sampoerna to let go finish off the businesses. Although famous for its innovation, the company was not able to overtake the domination of Gudang Garam in the industry of clove cigarettes. Putera Sampoerna concluded that cigarette industry allow not stay profitable in the future. One striking fact convinced him was the slow growth of the industry.According to Adrian Rusmana, BNI Securities Head of Research, in the last three years, the revenue growth of tobacco companies in Jakarta Stock re-sentencing (JSE) was under the level of 10% -0. 3% in 2006 rate and 1. 9% in 2007 (Kurniawan, 2009). In the companys official statement, this acquisition provides an opportunity for it to take prefer from PMIs experience and experience from various countries over decades. In addition, the acquisition besides brings resources, as well as bare-assed methods and procedures in the companys management (HM Sampoernas one-year distinguish, 2005).For PMI, their acquisition could enlarge market power, avoiding the cost of untested product havement, growing the zip up of pe networkrating the market, and avoid the barriers to entry (Agnes, 2009). After acquisition, company achieved its success. at bottom 1. 5 years, they reached first place in the national tobacco industry with 28. 3% market share in the year 2007 (see come in 2, much detail in Exhibit 1). In the identical year in November 2007, The Indonesian credit rating agency PT. Pefindo upgraded the Companys credit ratings from id AA+ to id AAA with a stable outlook.This is the first time the Company achieve an id AAA rating. revenue also showed a growing trend, accompanied by increased net sales and income of the company (PT. HM Sampoerna Annual Report, 2007). The acquisition also speed the companys business acceleration. In 2008, Sampoerna added more than than eight Cigarette Production Partners, 15. 000 new employees, build a new factory in Jakarta, then pelintingan through partners increased by 8. 000 (PT. HM Sampoerna Annual Report, 2008). From those facts we know that the management did the pay off action to achieve success.Their action proved to be effective ground on result they achieved. In early stages of acquisition, Martin Gray King takes the helm of Sampoerna. With his charismatic lead style, like Putera Sampoerna did the organization growth rapidly in stable place. Since May 27, 2009, tush Gledhill took leadership role in Sampoerna (www. viva intelligence agency. com). straightway we chamberpot recommend him what else he can do to maintain and reform Sampoerna performance. Before that, we have to analyze what unsex this acquisition works well. III. tonality SUCCESS FACTORS IN ACQUISITION OF SAMPOERNA The acquisition decision brings fears to Sampoernas employee.For most employees, the figure of Putera Sampoerna is not only perceived as a corporate leader, but also as a parent that is worthy replete to be considered as role. The acquisition feared would damage the harmonious atmosphere that had been pass waterd. most(prenominal) of Sampoernas management was concerned in the decreasing of employees motivation. They were hard put that there will be a reduction of employees (Yos Adiguna in SWA, 2007). player can produce 350 cigarettes/hour, while the machine is able to produce 8000 cigarettes/min. Thus, one machine is approximately equal to 1,500 state.Fears of un consequence and heathenish shock are major(ip) quarrel to management that adopts a final ca givened dislodge management action. Based on eight timber model by Kotter, there are two main key success factors in this acquisition. First, they succeed in creating guiding densification. Second, they make cultural change come last not first. On this part, we discuss about what management did align with some concepts developed by Kotter. 1. Creating Guiding Coalitions The change idea in organization usually comes from groups of mass who realize the importance of a change to be done by the organization in order to work better in the future.But the idea is not forever and a day sure immediately by some elements of the organization, such as the employee, the owner, or the CEO. This happens although they already sense the urgency to change. Even the CEO would not be able to make some change if he just fends for themselves without any keep back from the employees. In Kotters Eight Step Process of Creating Major Change, Building Guiding Coalition is one of the early stages of important thing to make a change, because in essence a change who requirements to do will not run properly if the plan change will not come in support from elements of organization.If the plan to change is supported by an influential group of the company, the next process will be carried out more easily, peculiarly in expanding the vision, mission, strat egy and communication of the change process (Kotter, 199651). completely go across executives considered this thing when decision gets final. Putera Sampoerna summoned all the leaders and gathered them in one big room to announce the acquisition decision. Putera Sampoerna directly builds coalitions to notify changes. All the mountain obey the Sampoerna family ansd no one questioned the reasons behind the decision.Putera Sampoerna directly line up all these leaders, calling them as change agents to transmit the spirit as change agents to all Sampoernas internal parties, and ordered them to spread the reading to the lowest level inwardly the organization (SWA, 2007). Realized this standard should be arranged quickly, he make it quickly executed. Monday, 13 March 2005, the blueprint notification is made for the acquisition news sent to all employees of Sampoerna pronto at 9 am. Velocity in the notification is critical to stop the rumors come from outside.After the in brass co mmunicated to all employees, then they understand. At the operative level there was nothing really changed, except for expansion. What will they shade may be more adherences to the rules and improved overlooked. That does not nasty that once Sampoerna not obey the rules, but the assertion that the rule is an area that could quest after it becomes thick, because it is the value of Philip Morris. What makes Sampoernas change agent succeed in guiding coalition? Kotter said a grueling guiding coalition demand one with the discipline composition, level of assurance, and shared objectives.In term of making right composition, first important thing is Putera Sampoerna and PMIs leader at that time (Martin King) involved, engaged, and committed to the change. If Putera Sampoerna just let go without making a good coalition, maybe realities come contrary. Martin King continued his predecessor becoming the change leader in the organization so Sampoerna will agree they have leaders supp ort for change. Putera Sampoerna also selected peoples who have strong position power, broad expertise and diversity, and high credibility within their bunch of influence.When the information has spread, there was apology from some parties, although a small number, including some(prenominal) directors. Some of them even chose to resign. Most workers accept the decision because management promised no changes in operations all will still be working(a) as usual. The resistance does not occur because of all the elements felt the certainty of their fate. Kotter (2009 163) stated that resistance can occur because of fears of status uncertainty. Besides, the lack of resistance is also due to the factors of good communication and high level of assert in employee.After they had sufficient hefty persons and mutual trust, now its time to deal with what new shared visions. In Kotter, we need to create shared vision in coalition when all the members of the group want to achieve the prec ise(prenominal) objective and real aggroupwork become feasible. Vision in this term is related with Martin Kings vision about Sampoerna in the future. Martin King demanded Sampoerna to improve acceleration, starting from the quantity and quality of products, as well as human resources, considering the very dynamic business changes. This is a key strategy of the future development of Sampoerna.Continuous improvement being apply by the Sampoerna with employee development systems, management and control report, reward & punishment, as well as information technology systems / IT (PT. HM Sampoerna Annual Report, 2005). Vision and mission are translated into the main target. One of the targets that best describes the spirit of change in Sampoerna is to become a market leader in the national tobacco industry in the next five years. After building a vision and make measurable targets, then for all elements have to work harder than before achieving it goals. 2.Culture Came Last Not First O ne of change challenge faced from acquisition is cultural adjustment (Palmer, 2009 105). In Sampoerna acquisition, the challenge is the cultural adjustment because some(prenominal) of two companies came from incompatible countries, polar area, different operating systems and procedures that can often lead to conflicts. The way in which this is managed can be a major determinant of the success or distress of merger. There will be a culture shock if it wasnt treating properly. The cultural is refers to norms of behavior and shared values among a group of people (Kotter, 1996).Norms of behavior are common or pervasive ways of playing that are found in the group and that persist because group members break away to behave in ways that teach these practice to new members, honor those who fit in and sanctioning those who do not. Shared value are important concern and goals shared by most of people in a group that tend to shape group and that persist over time even when group membersh ip changes. In the big company such as PMI and Sampoerna, one typically finds that some of these corporate cultures involve everyone and that others are specific to subunits.The culture that exists in the organization is the most powerful forced in change management, because (1) Individuals are selected and indoctrinated so well (2) The culture exerts itself through the actions of hundreds or thousands of people, and (3) It happens without much conscious intent and thus is knotty to challenge. Because culture so powerful, when the new practices made in a fault effort are not compatible with the relevant cultures, they will always be subject to regression. worry realized that the culture problem is one of the critical factors in the acquisition of the company.This will hamper the achievement of goals if the accretion of it not at the right proportion. Therefore, he will not interfere in the existing culture and prefers to focus on the companys strategic plan forward. Sampoernas cultural remains will be preserved as such because prior to the acquisition, Martin considered that the culture in Sampoerna is already very good and strong a local company with international workings (SWA, 2007). This is also the reason why he only brought 14 of his staff and reach some of the top management to the the previous leaders of Sampoerna. PMI, basically from USA, has its American Culture.The style of American in being outspoken at giving opinion is very different to Javan culture that tends do the contradictory. In American style, criticism is usually thrown straightforward and sometimes racy but still in the context of work, not personal. On the other hand, Sampoernas staff is very polite, lack of courage in impartation thoughts in mind, and not straightforward. They are not communioning about right or wrong, but rather to complement each other. Other Javanese culture will be maintained by PMI. One is in terms of product launch time, raising the selling price, an d a skirmish with the Javanese calendar system.Other culture, such as its a tradition that Sampoerna always budget cost for the pawang hujan at the launch of its products. PMI which is a foreign company, although did not understand, still follows these tradition. This made the PMI headquarters confused when auditing the monetary statements because of the unique cost. Martin, as PMI representative in Indonesia must explain that this is common in Indonesia. PMIs culture was also signed to strengthen the existing Sampoerna culture. The use of English is increasingly common not only in top management but also in the middle management twain oral and written.In lingual matters, Martin did not have problem because he can speak Indonesian and Sampoerna himself always recommend English to be used by every employee (Hidayat, 2007). Culture acculturation can be seen in Exhibit 2. From those, referring Kotter, we can conclude that change in culture come to last not first. But, in this case w e see in different point of view that culture problem prevent early. They know it will caused problem, so they prevent it with choosing company (Sampoerna) which has resemblance in culture. The fundamental similarity is that both companies have a passion to become the market leader.Also, both have a behavior and a willingness to improve them to perfection. When judging Sampoerna, PMI found that culture in Sampoerna is good and strong, so they dont need dramatic change, just pocketable adjustment. Referring to Lewins theory of cultural formation (Kurt Lewin in Schein, 2004 319-329), acquisition of Sampoerna has four phases. Four phases are the explorations phase, unfrost phase, merge phase, and freezing phase. The first phase, exploration, should already be identified where the cultural similarities and differences between the parties, and free grace to achieve the best should remain preserved.The second phase is to dilute the old culture to the parties in the merger. The third ph ase is merging cultures, or the forming of cultural synergy, usually by defining a new culture, through learning or training, coaching, mentoring, and so on. The fourth phase or freezing is realized by various artifacts such as logos, colors, physical appearances of the building, and so forth, as well as organizations system such as regulation, the definition of a new culture, reward & punishment, and furthermore, the stabilization is continue done by gathering activities, and so on.The first and second phase faced wisely by PMI so Sampoerna is now in the third stage, and was relatively easy to be done, because the critical point is in the second phase. PMI as the new owners did not work through their culture to be dominant. Similarly Sampoerna with the Javanese culture, that has a desire to become more globally. IV. RECOMMENDATIONS The next year, the story of Sampoerna has dramatically taken a new direction the firm has suddenly hightail it from an Indonesian family-owned comp any to an American global company. As results, Sampoerna had to oblige itself and challenged major issues.The change process has been really successful and Putera Sampoerna passed the relay to Martin Kings and now to outhouse Gledhill, avoiding too much troubles. Nevertheless, we can wonder what can be the reactions of the aim force if the company faced other issues in the future. For sure, even if bath Gledhill is very skillful, he doesnt have the aura of two motive CEO. Then, the markets move more and more fast and conduct the company to adapt quickly. So, can the change process be implemented in the same conditions in the future? In other words, how the new CEO of Sampoerna can keep implementing successful change process in the future? present are our recommendations. Building the Guiding Coalition The Sampoerna family has a really particular place in Indonesian mind the successful story of the company and the charisma of its leaders had led to create individual governance under the control of monarch-like CEO. Indeed, despite of the increasing size of the company and fast-moving industry, what Putera Sampoerna said, people did. Now, the situation is definitely different in many aspects. First, John Gledhill cant have the same influence on the employees company as his predecessor.He is a foreigner, coming from a major global company and could be suspected not to focus on Indonesian interests, unlike Putera Sampoerna. Second, the tobacco industry is ostensibly an unstable sector. Law pressures, growing health considerations, strong competitions make the market more and more complex. Todays business environment clearly demands an efficient decision making. Considering these two factors, it appears that leading the new company with the same leadership style could at least be very difficult and most probably impossible.So, to tackle that issue and build a relevant change governance structure, we can suggest John Gledhill to create a strong guiding coalit ion that can make change happen. As Kotter said, there are three steps in building strong guiding coalition. We recommend what CEO should do base on these. The first step of this process is to find the right people that way people with strong position power, broad expertise, high credibility, and general leadership and management skills. Being sure of leadership skills of the change team members is a key to achieve the goals and special efforts to assure of it must be done.Considering the structure of Sampoerna Exhibit 3, we think that John Gledhill must involve each part of the organization to build the next guiding coalition. The first reason is that to be enough efficient, the guiding coalition has to be aware of all the aspects of the company. Indeed, in such a complex and fast-moving market, developing a vision and victorious strategic decisions quickly and efficiently become more and more difficult. To succeed in the future, the CEO must lean on the specific knowledge of each departments top managers.In fact, with such a coalition, the information would circulate faster and in better conditions. The other reason that supports this choice is the fact that if each division of the different departments are delineated in the guiding coalition, then the trust wrong the company would be reinforce. We consider that this harming of coalition is able to increase the feeling of share-out the same goals and doing things in the same direction. If people think that the quality of their occupation is decreased because other departments dont go in the same way, they would low their efforts as results.So, concretely, we recommend John Gledhill to build the guiding coalition not only the director of each department but also the head of each subdivision. Considering the organization structure of Sampoerna, the coalition will consist of 25 persons. One obstacle is to assure that the directors and managers have sufficient leadership skills to join the guiding coali tion. We suggest John Gledhill measuring their ability to do the job properly and take the decisions required if not. That means dont hesitate in firing the weakest people and hiring good leaders to increase the efficiency of the coalition.The next step of building a guiding coalition leans on creating trust among the team. Team building today usually has to move faster and Sampoernas CEO must conduct the process efficiently by using carefully planned off-site events with lots of talk and activities. The last step deals with the necessity to develop common goal inside the team work. Typical goal that can be chosen for Sampoerna is a commitment to excellence, a real desire to make their organization performs to the very highest level possible. Indeed, the common goal must be both sore to the head and appealing to the heart.The combination of these elements leads to a powerful coalition with the power to make future change happen despite all the forces of inertia. create and Commu nicating A youthful Vision The success of the change process in Sampoerna must not hide the fact that some employees can feel uncomfortable with the growing uncertainty in the company. An acquisition is a major change in the mind of people, even if processes in in operation(p) level dont change in the first time. Martin Kings had to be aware of this issue and deal with decreasing the potential fears or hesitancy inside the company.Now Sampoerna lead by John Gledhill and he has to aware those concern too. Developing and communicating a new vision is the resolving power to give to people the answer to their question. In fact, in order to implement future change in the company, vision is definitely essential. If new vision is not built, the feeling of risk and, so on, resistance to change could be an unsolvable problem when implementing a new change. Moreover, it allows simplifying many detailed decisions, it motivates people to take action in the right direction, and helps coordin ate the actions of different people.We can recommend Sampoernas CEO assuring that the vision is imaginable, desirable, feasible, focused, flexible, and communicable to be understood and shared by the whole company. For instance, next vision could be becoming a strong global brand able to develop itself on international markets. Then, to communicate the vision, John Gledhill and his guiding coalition have to respect key elements in the effective communication. Metaphor, analogy and example must be preferred to incomprehensible jargon and must be communicated many times under multiple forums (big and small meetings, memos, newspapers, etc).Furthermore, behavior from important people must be appropriate to reinforce the message they have to act as examples, try to explain seeming inconsistencies, and listen to people interrogations. To sum up, the new vision or strategy of the company is an essential step to anticipate future change process. People must understand and share the company vision to involve fully in the necessary change. Anchoring new(a) Approaches in the Culture When Martin Kings took the head of Sampoerna, he underlined the fact that PMI believed in the former corporate culture.He said that the Javanese company was really vary to the Indonesian market and that the new orientation of Sampoerna would still lean on the values built by the founders. Philip Morris, as a global company, is experience in such an acquisition and executives are obviously aware of how anchoring new go up in the culture of a company is difficult. So they persistent to take time before dealing with that sensible issue. Therefore, even if Sampoernas corporate culture seems to be efficient, PMI has to integrate little by little its own values.Indeed, being part of a global company means share a common main culture (particularities can obviously survive). We can recommend John Gledhill first to be patient the acquisition has just happened and people must be really sensitive regarding that kind of change. In fact, culture can be considered as the last step in change management process. Moreover dealing with culture issue is very difficult because of its own nature. Some aspects are almost not visible and some others not at all. Saying that doesnt mean doing nothing we suggest John Gledhill to implement few changes in the approach of each step of the change process.That means he has to give to Sampoerna a Philip Morris Touch, especially considering efficiency and results. We think that managers and mid-level managers are able to pass around the values if they are involved enough. To conclude, anchoring new approaches in the culture would be very difficult, John Gledhill must do it very patiently with a great humility if he wants to success. V. Conclusion Overall, the steps taken by management in conducting a post acquisition changes are very good, especially in a guiding coalition and cultural adjustment.In building a guiding coalition, management can create a coalition based on the right composition based on the strong position power, broad expertise and diversity, and high credibility within their circle of influence. In addition, management has succeeded in creating a level of trust between the members, and has a good ability in shared objectives. Management also can overcome the cultural problems faced after the acquisition, the many cultural similarities that owned by PM and Sampoerna cause the process of cultural assimilation is not working too complicated.Although in essence PM have a different culture with Sampoerna, Management still celebrate the the old culture to avoid cultural shock within the organization. Bibliography Books Kotter, J. P. 1996. leading Change. Boston Harvard Business School Press Palmer, Ian. , Richard Dunford, and Gib Akin. 2009. Managing Organizational Change. new(a) York McGraw-Hill Schein, Edgar R. 2004. Organizational Culture and Leadership. USA John Wiley & Sons. Newspaper and Magazine SWA M agazine. HM Sampoerna Padukan Budaya Lokal dan Multinasional. Kamis, 01 Februari 2007. ____________. Ketika Timur dan Barat Menyatu.Rabu, 06 Februari 2008. Tempo Magazine. Indonesia Pasar yang Menggiurkan Bagi Industri Rokok Asing. Senin, 22 Juni 2009. Electronic Reference Sampoernas website. http//www. sampoerna. com. Accessed at October 27, 2009. 16. 40 PM http//berita. liputan6. com/ekbis/200503/97974/class=vidico. Accessed at October 27, 2009. 1530 PM http//bisnis. vivanews. com/news/read/61146-john_gledhill__dirut_baru_hm_sampoerna. Accessed at November 5, 2009. 1330 PM Kurniawan, Agnes. 2009. Why Putera sold his Sampoerna. Accessed at October 27, 2009. 1530 PM. ______________. 2009.Analisis Industri Rokok Nasional 2007-2008. Accessed at October 27, 2009. 1638 PM. ______________. 2009. Kenapa Philip Meminang Sampoerna dengan Mas Kawin SedemikianBesar. Accessed at October 27, 2009. 1630 PM. ______________. 2009. Perubahan Sampoerna di Tangan Philip Morris. Accessed at October 27 , 2009. 1622 PM. Taco, Tuinstra. 2007. A New Chapter. Accessed at November 2, 2009. 1512 PM. Institution Central Board of Statistics, index of large and medium enterprise, various years (the latest publication was in 2004) PT. HM Sampoerna Tbk. Annual Report 2005. Jakarta. 2006. __________________.Annual Report 2007. Jakarta. 2008. __________________. Annual Report 2008. Jakarta. 2009. Exhibit 1 NATIONAL CIGARETTE INDUSTRY MARKET voice 2003-2008 (in percent) COMPANY 2008 2007 2006 2004 2003 Djarum 18. 0 20. 4 17. 2 18. 26 18. 71 lap up Indonesia 2. 4 2. 3 2. 2 2. 54 2. 86 Others 22. Batik uniform, stark dress. Batik uniform, black dress. Meeting date 9, 17, 29. Meeting date 9, 17, 29. Pawang hujan when open up products. Pawang hujan when launching products. Employee rather reluctant to talk with the boss ( Javanese Employee more outspoken sharing their opinion ( Straight to preferred manners. the point, provoked more sales-oriented, more creative, and more initiatives with a global outlook. At managerial level, day-after-day conversations in English People are encouraged to become more high-achiever, with opportunity in career development, to branches of PMI in another country. first SWA Magazine, February 6, 2008. Exhibit 3SAMPOERNA ORGANIZATION STRUCTURE pic 1 Cited from companys website http//www. sampoerna. com accessed at October 27, 2009 16. 40 PM 2 Cited from http//berita. liputan6. com/ekbis/200503/97974/class=vidico accessed at October 27, 2009 1530 PM pic Source Annual Report, 2005-2008 Figure 1. Sampoernas Net Income and Sales 2004-2009 We provide general recommendation to CEO of Sampoerna about building guiding coalition and anchoring new culture post acquisition of Philip Morris.Acquisition gets its objectives and makes significant results to organization. What makes it succeed? What should they do next in term based on their key success factors? DOSEN Dr. Ningky Sasanti Munir, MBA Ir. Setiadi Johar, DBA Soekono Soebekti , PhD Tjahjono Surjodibroto, MBA WIJAWIYATA MANAJEMEN ANGKATAN LXI STM PPM MANAJEMEN JALAN MENTENG RAYA NO. 9. JAKARTA pic Source Annual Report, 2005-2008 Figure 2. Sampoernas Market Shares 2004-2009 2