Briefly describe a significant organizational change which has occurred within the last 5 years. Identify the main internal and external drivers which made the change necessary, and discuss the issues they raised for the organisation
ii. I am writing about an organisation called Charity InvestmentLimited. This organisation was established in 2003 in Lagos state Nigeria. It has staff strength of 350 employees having a hierarchical structure (Madus financial statement 2007). Charity Investmentwas set up for the packaging and selling of portable drinking water called “Lila”. The water is packaged in a 35cl and 1 Litre plastic bottles. It has various distribution ...view middle of the document...
The management of Charity Investmentlimited felt there was a need to diversify and meet up with competition in the Food and beverage industry. Managing organisational change is the process of planning and implementing change in organisations in such a way as to minimize employee resistance and cost to the organisation while simultaneously maximizing the effectiveness of the change effort. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. These were the thoughts / ideas of Charity InvestmentLimited before embarking on the change.
The internal and external drivers which made this change necessary are change in consumers’ preference and the intensification of competition from other service providers within the industry. It was a planned change with major contribution in the area of process engineering by emphasising standasation and quality (Henry Ford). Due to the high competitiveness in the industry, quality was the watch word for Madus Investment, though they are already known for high quality as a result of the portable water already being sold. Though, this organisation is a bureaucratic organization, managed in a well structured and formal way, it was more adaptable to change. The change was prescribed from top-down. Rules, regulations, hierarchy, authority and impersonality were the hallmarks of a bureaucratic organisation (Max Weber, M (1947). The organisation was a bureaucratic organization, being a limited liability company; the change was necessitated by the consumers’ desire and satisfaction and not by the sole decision of the head of the organization.
Some of the internal and external drivers which made the change necessary are as follows:
a. The intensification of competition from other service providers in the country - the food and beverage industry is highly competitive in Nigeria with over 10 established companies in the same industry.
b. Change in consumer preferences - survey conducted revealed that more consumers were drawn to juice that water, thereby resulting to a reduction in the consumption of water. This was noticed by the sharp decline in the sales of Lila over a period of 15 months.
c. Cannibalisation of market share - Charity Investmentstarted to experience a decline in the market share within the industry. Other companies that are involved in the production of juice were gaining these lost points in the market.
d. Increased revenue and profitability - The introduction of another line of business will definitely result in increased revenue and profit and also bring about increase in shareholders wealth and growth of the organisation.
e. Change in strategic session from a product centric to a customer centric orientation- It was high time Charity Investmentchanged its focus to meet the competition in the market. It had to reengineer its focus to that of customer centricity in order to meet the consumers’ expectation and...