Note: In your responses, you are allowed to improvise or add to the case study
details provided below. However, the case study should not be changed or
compromised in any way.
Since it was established the London-based Newbridge Dental Care Group has been
financially successful. It was originally formed in 2010 when Dr Daphne Floss and Dr
Marcia Brace decided to form a partnership and merge their two independentlyowned dental practices. During the subsequent five years the group grew steadily,
mainly by acquiring small dental practices in London boroughs from retiring ownermanagers. Newbridge also acquired a small consultancy that provides specialist
advice and business services to dental practices. Last year Newbridge completed its
most ambitious acquisition to date when it took control of a similar company called
Crown Dental which operates twelve dental surgeries in Kent and Sussex. The
Group now operates from twenty-eight sets of premises, including its head office in
central London.
During this period substantial investment has been put into new equipment and
interior decoration of premises, as well as the capacity to provide a wide range of
new specialist services. Patient numbers have increased substantially reflecting an
ageing population and greatly increased demand for cosmetic treatments such as
laser whitening and straightening procedures. Newbridge has enjoyed financial
success thanks both to the increase in demand and to efficiencies generated through
flexible deployment of staff, centralisation of functions, economies of scale and
economies of scope. Daphne and Marcia are now keen to build on their success and
the expertise they have developed by accelerating the growth of their business and
the reputation of the Newbridge Dental Care brand. They are keen to take over a
laboratory and a manufacturer of dental products as well as dozens of surgeries in
towns and cities around the country. There are considerable opportunities that will
arise from the consolidation of multiple businesses into a single group. The IT,
marketing, finance and maintenance functions can be centralised on a single
headquarters site, while fieldbased staff can be flexibly deployed as and when
required by changing patterns in patient demand. A much wider range of procedures
will be made available to patients and a single, strong Newbridge brand image built.
To that end they are now in advanced negotiations with a venture capital group
(Flush Mint and Partners) whose investors have expressed a serious interest in
working with and advancing the money necessary to fund a further period of rapid
expansion. While the Flush Mint team are very satisfied with most aspects of the
business plan that Daphne and Marcia have presented to them, before any deal can
be signed they have asked them to give ‘a good deal of further consideration to the
‘human resource and human capital aspects’ which they consider to be a serious,
potential weakness. The would-be investors are concerned because of what Daphne
and Marcia have told them about the difficulties they experienced when acquiring the
Crown Dental business last year. This did not go as smoothly as anticipated. There
was considerable resistance, suspicion and openly-expressed disappointment on the
part of a majority of Crown Dental employees when the take-over was announced.
The three longest-serving dental surgeons working for Crown, along with a group of
other staff decided to resign and set up their own new practice in nearby premises.
They managed to take with them a large number of registered patients and have
since poached a few more former Crown Dental colleagues along with further
patients.
Staff who have remained have not, however, appeared to be happy about the
change in their employer’s identity. There is concern about long-term job security
and a general lack of motivation, commitment and engagement. Daphne and Marcia
have found it very difficult to generate any strong sense of shared purpose. There
are low levels of trust and a degree of suspicion among Crown’s staff that a business
they have been proud to work for is losing its identity and is in danger of being assetstripped by its new owners. The lack of engagement and commitment has been
reflected in reduced business performance. In short, the financial gains associated
with the acquisition of Crown Dental Group have been much lower than anticipated.
The company over two hundred staff, including seventy dental surgeons, twelve
dental therapists, ten hygienists who all work flexibly alongside growing teams of
nurses, nurse supervisors, practice managers, receptionists and administrators.
However, due to its expansion, it needs to create a recruitment and talent strategy
which will provide sustainable resources for its continued expansion.
You have been hired by Dr Daphne Floss and Dr Marcia Brace on a consultancy
basis to provide advice about HR matters ahead of their next meeting with Flush
Mint & Partners. They are also keen to commission you to undertake some
independent research, drawing on research and current practice, to help give them a
better understanding of where they went wrong when acquiring the Crown Dental
Group and the lessons that they can learn from this bruising experience.