The Sugar Co$.,$ Inc., located in a Guelph, Ontario, is a medium sized Canadian manufacturing company with product such as bubble gum, chewing gum, gummy$$s$,$ candies and chocolate bars. The Simpson family incorporated the company approximately $40$ years ago. Eighteen years ago, the company offered shares to the public through the over$-$the$-$counter market. The SUGAR CO$.$ experienced significant growth approximately $15$ years ago and they have expanded nationally. Recently they have been considering expanding their facilities and product lines again to States, Mexico and most of South America to take advantage of the rapidly growing in the industry.

While the company has had a fluctuating growth but for the last $10$ years the growth has slowed down. The SUGAR CO$.$ has many loyal employees, while some departments and division are profitable, and the employees$$ performance are well above average, other departments and division not so much and some NOT at all.

Currently The Sugar Co$.$ has gone through a major change and due to rapid expansion, the board of directors decided to make the company centralized and outsource some of the functions such as marketing, payroll, and most of the IT$.$ Also, they decided to downsize many people in manufacturing and warehousing as they were replaced by new automation. After outsourcing some of the functions, and downsizing about $200$ people, the company employs about $230$ individuals in spread across Canada the following departments: $15$ in accounting and finance, $10$ in information technology, mainly networking, $120$ in manufacturing, $15$ in human resources management and admin, $80$ logistic and warehousing, sales, across Canada. Even though they have $3$ manufacturing and warehousing locations across Canada, most employees are tenure and from same background as THE SUGAR CO$.$ has traditionally promoted from within and occasionally recruits from outside the organization.

THE SUGAR CO$.$ Inc has always been set up with bureaucratic functional structure and has been hierarchical with many management layers. There are many departments but only a few teams, mainly in IT and Quality Control. Lately due to outsourcing, downsizing and upcoming expansion there has been complains coming from employees and last year the company hired an outside consultant to conduct employee engagement survey and the result was ill$-$favored:

The moral was low, and employees were not happy about the changes. Organization climate is based on rules and formal process done solely by HQ and as such culture is company is stifling and each department and division have their own subculture which makes the company culture quite weak.

Many departments and employees feel they are rarely there is any communications amongst company departments $($employees or supervisors$)$ and executives, and most departments are working in silos. Most communications are done via e$-$mail and are confusing or irrelevant. Occasionally there are team meetings, they are usually done by managers of departments, but not much team work. Also, many employees do not know who they report to$,$ as they receive directions from different managers from different departments. Although the company cascades the goals each year for all employees, these goals have been changing at least three time this past year,

The employees believe that there is power struggle amongst the CEO $($head of the family$),$ board members and other executives and due to this many senior managers and department managers use the politics to influence their boss and employees by upward appeals, legitimacy and pressure so employees perform, and they can keep their job. CEO$$s and other executives leadership style is rigid control and micromanage.

Also, the technical expertise of some of current employees such as Administration staff, Sales and even some of the supervisors. THE SUGAR CO$.$ is always on the lookout to offer the most sophisticated and latest technologies to its clients. But much of their manufacturing and warehouse equipment are still out of date and have not been replaced. There is real concern to lose their long$-$term customers if the company is ready to face the technological changes in next decade as they need to remain competitive.

THE SUGAR CO$.$ is planning to increase their sales within the next few months. Top management projects an increase of $10\%$ within the next year, $20\%$ within the next two years, and $30\%$ in sales in the following three years. Sales within the last $3$ years have increased consistently, from $$10$ million to $$12$ million to $$15$ million. But the profit percentage has been decreasing slightly over the past five years, from $10$ percent to $7$ percent.

The finance department has traditionally managed the capital structure of the firm but with the overseeing from board of directors. Currently the firm has a relatively small debt. Increasingly, however, the organization has been experiencing cash flow problems.

The human resou