Introduction Eisenhardt (1989) states that case studies are particularly well suited to new research areas or research areas for which existing theory seems inadequate. This type of work is highly complementary to incremental theory building from normal science research. The former is useful in early stages of research on a topic or when a fresh perspective is needed, whilst the latter is useful in later stages of knowledge (Eisenhardt, 1989). This case study analysis begins with background information regarding the issues being faced by the ASDA grocery chain and continues with a look at best practices for effective change as applied to the problems facing ASDA. and then concludes with a look at how Kotter’s theory of change applies to being …show more content…
In the mid-1980s, ASDA was one of the most successful retail companies in the United Kingdom. By 1991, the chain of 200 grocery stores had a lack of direction, a demoralized workforce, declining profits, rising debt, collapsing stock price, and was facing bankruptcy. Besides its core supermarket retail format, the company also offers a number of other products, including financial services and a mobile phone company. ASDA 's marketing promotions are usually based solely on price, and like its parent company, Walmart, ASDA promotes itself under the slogan "Save Money. Live Better”. (ASDA, 2015) City estimates suggested that ASDA had overpaid by around £300 million for 61 of the largest Gateway stores, two undeveloped store sites and a distribution center. That was far above the net book value of the locations some of which were poorly sited. This move overstretched the company and by 1991 it found itself in serious financial trouble and saddled with £1 billion worth of debt (Hope, 2008) The situation was so dire ASDA was close to breaching its banking covenants and came very close to …show more content…
Many ASDA’s supermarkets remain poorly configured, with its fresh offer tucked away in a corner rather than being given prominence at the front of the store, which modern shopping habits demand. “Purpose involves a clearly articulated, well‐defined ambition for the organization. An ambition that engenders strong, enduring emotional attachments among employees and remains constant over time” (Spector, 2013). According to Gagnon (2013), leaders need to help employees see how much better things will be once the change effort has succeeded. Another best practice employed is to build a “change coalition” (Gagnon, 2013). This task may not be easy to do, but it is a fundamental step in creating effective and lasting change. The leader should change the culture rapidly and instil a sense of confidence and leadership across the business. If the leader drums up the support of their team, get them pulling in the same direction and convince them to buy into his strategy for the business, the business will be success. ASDA is thought to be working with intelligent search engine Endeka on its website, allowing shoppers to easily find the products they want to buy. It will also make its ecommerce platform easier to navigate in a bid to boost online sales. Although profitability of online grocery is still challenging, improvements to ASDA’s online offer could also prove to be a gateway to driving footfall back into
Leading Change was named the top management book of the year by Management General. There are three major sections in this book. The first section is ¡§the change of problem and its solution¡¨ ; which discusses why firms fail. The second one is ¡§the eight-stage process¡¨ that deals with methods of performing changes. Lastly, ¡§implications for the twenty-first century¡¨ is discussed as the conclusion. The eight stages of process are as followed: (1) Establishing a sense of urgency. (2) Creating the guiding coalition. (3) Developing a vision and a strategy. (4) Communicating the change of vision. (5) Empowering employees for broad-based action. (6) Generating short-term wins. (7) Consolidating gains and producing more changes. (8) Anchoring new approaches in the culture.
Change is the only constant in life. And therefore it should be understood as part of a continuing work in progress that calls for a much broader canvas that seeks out competing voices, and works with the resulting ambiguities, contradictions and tensions of messy reality (Graetz, F. & Smith, A., 2010). In this submission I try to show that organizational change is majorly based on the environment surrounding it much more than the desire of the members or change agents working in that organization. This view diverts from that of Lippitt, (1958) who suggests that implementing planned organizational changes successfully depends on premeditated interventions intended to modify the functioning of an organization. It also diverts from the traditional approaches to organizational change that generally follow a linear, rational model in which the focus is on controllability under the stewardship of a strong leader or ‘guiding coalition (Collis, 1998). In this discussion therefore, comparison made between the different philosophies of change and I try to show that successful change implantation largely depends on an organizations appreciation of what goes on around it rather than what they have planned as a strategic direction.
ASDA's Hierarchial Structure A hierarchical structure has many levels. Each level is controlled by one person. A hierarchical company tends to be a very big company just like ASDA is. In a hierarchical company, instructions are generally passed down from one person to another until it gets to the bottom.
This paper will be broken down into six sections profiling each critical part of implementing and managing change in an organization. The sections included are; outline for plan creating urgency, the approach to attracting a guiding team, a critique of the organizational profile, the components of change, and how to empower the organization.
In today’s ever changing world people must adapt to change. If an organization wants to be successful or remain successful they must embrace change. This book helps us identify why people succeed and or fail at large scale change. A lot of companies have a problem with integrating change, The Heart of Change, outlines ways a company can integrate change. The text book Ivanceich’s Organizational Behavior and Kotter and Cohen’s The Heart of Change outlines how change can be a good thing within an organization. The Heart of Change introduces its readers to eight steps the authors feel are important in introducing a large scale organizational change. Today’s organizations have to deal with leadership change, change in the economy,
... NASA (The Challenger and Columbia Shuttle Disaster). First we looked at the images of managing change used by NASA in the case study. Then we discussed the types of change(s) NASA under took. Next we looked at some of the challenges of change that NASA faced. Next we discussed some of the resistance to change that NASA dealt with. Then we looked at how NASA implemented change. Next we discussed vision and change and the impact in the case study. Finally we discussed sustaining change as it related to the changes implemented by NASA in the case study.
“Leading Change: Why Transformation Efforts Fail” is an article written by John P. Kotter in the Harvard Business Review, which outlines eight critical factors to help leaders successfully transform a business. Since leading requires the ability to influence other people to reach a goal, the leadership needs to take steps to cope with a new, more challenging global market environment. Kotter emphasizes the mistakes corporations make when implementing change and why those efforts create failure; therefore, it is essential that leaders learn to apply change effectively in order for it to be beneficial in the long-term (Kotter).
Change is the most crucial aspect of management. In a rapid competitive business environment, change is not only recurrent but also becoming complex. The case study Bega Cheese highlights how the firm has achieved change management from satisfying the needs of local market to being limited company of more than 50 countries globally. Through the case study, it is seen that Bega Cheese has undergone different stages of change process by implementing various effective cultural perspectives, to traditionally organizational designs concerning with structures and new forms, processes and boundaries to adapt to organizational change and eliminate resistance to change. Change is inevitable, and vital to achieve strategic objectives and competitive advantage in the market.
Kotter, J. P. (2007). ‘Leading change: Why transformation efforts fail’. Harvard Business Review, January: 96-103.
Organizational change is the altering of organizational structures and business strategy. As consumer preferences change, competition increases, and the economic environment fluctuates, business need to adapt to these changes to remain competitive. The management of Home Plus, a regional discount store, has proposed an increase of high-end products and a significant reduction in discount packaged goods. This is a change from the original business strategy in which the primary offerings were discount products. Before implementing the proposed strategy, Home Plus management must consider the benefits of the change and the consequences that may occur. As a member of the management team at Home Plus I disagree with the proposal to increase high-end
Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.
The world today is one of constant and rapid change. Organisations need to be able to quickly adapt and change to meet the needs of its consumers and the environment. In order for organisations to change, the people within the organisation need to change. This involves identifying ways to replace one frame of mind with another in order to create a change in behaviour. Howard Gardner’s book “Changing Minds. The Art and Science of Changing Our Own and Other People’s Minds” (Gardner, 2006) explores techniques and principles which can be used to facilitate successful change. This paper will review the key messages as well as provide examples the seven levers used in real life situation.
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
A theoretical framework provides guidance as a project evolves. The end results will determine whether the knowledge learned from implementing a project should create a change in practice (Sinclair, 2007). In this project is relied on the Kurt Lewin’s Change Theory. Burnes (2004) states that despite the fact that Lewin built up this three-step model more than 60 years prior, it keeps on being a commonly referred framework to support effective change projects. The three steps are unfreezing, moving and refreezing. Lewin decided in Step 1, unfreezing, that human conduct is held in balance by driving and limiting powers. He trusted this equilibrium should be disrupted with the end goal for change to happen (Burnes, 2004). Step 2 or moving, includes learning. Learning incorporates knowledge of what the conceivable alternatives are and proceeding onward from past practices to new practices which will...
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.