Analysis of HMV

“The images, metaphors, or frames that we hold, both of managing and of change, influence our ideas of what we think managing change is all about” (Palmer, Dunford, & Akin, 2009). As people we all see through our own eyes, we call see a different perspective and have a different reaction to what is coming next. As human beings we react differently to situations. Situations of change are transitions that some are able to adapt to quickly while others have a hard time. Being the leader of that change can be difficult and helping make a change does not come easily or effectively. Keep and Newcomer (2008)

Located in Woodgrove Mall in Nanaimo, British Columbia, directly across from the busiest part of the mall sits HMV Canada. HMV, which stands for “His Master’s Voice” (HMV, 2014) is a music retailer with over 80 years of experience. They specialize in music, DVD’s, headphones, memorabilia, and more. Although they have 80 plus years of retail experience they have only been in the Canadian market since 1988. What is interesting is the fact they are owned by a

Despite the closure of many of HMV’s stores due to administration difficulties, over 100 stores were still in operation in prime shopping locations in the UK and Ireland. In 2012 HMV had nearly 20% of the market share, slightly more than Amazon at the time. HMV is one of the largest and most successful entertainment retail store in Europe and is more successful than its rivals such as Virgin megastore who closed down in Ireland in 2002. (McCaughren, 2007). As of 2013 HMV had 16 stores operating all over Ireland in the main cities such as Henry Street, Lucan , Graton Street, Galway and Cork. (www.thejournal.ie). In Ireland HMV’s physical presence is strong compared to their rivals Tower

As the diagram shows, John Lewis’s share in the retail market was constantly increasing from 2005 to 2008. In 4 years, the industry’s share rose by 1.4%. And even though from 2008 to 2009 its share in the market remained the same, it can be predicted that its market share will continues to rise in 2010 and 2011. This forecast can be justified by the firm’s aims to build more stores, as well as launch foreign language websites for its European customers.

According to A.T. Kearney (2013), the result from online study of 3,200 U.S. and UK customers found that customers spend a large proportion of time inside the brick-and-mortar channel with 61%. The following channels are shopping online and mobile channel, with 31% and 4% respectively (Appendix 1). This figure means that traditional stores persist at the center of retailers’ relationships with customers, although nowadays Omnichannel as online and mobile strategy can help retailer remaining in the market. Therefore, retailers should find a solution that influence to stores and store networks to keep stores at the heart of the customer relationship while managing value across new channels. In addition, the

The closing of HMV and its decrease in profits are due to the fact that people who used to be customers changed and is moving towards online streaming. HMV sold Blue-ray DVDs, animation merchandises, music CDs…etc. Having Netflix and illegal online streaming caused HMV to lose customers. Despite its new competitors, they have stayed longer than their once rivals, Blockbuster who went out of business a decade ago.

There are 92,796 grocery stores in the UK and the market value increase by 19.5% in the last 5 years and according to IGD forecast the UK grocery market should reach £203bn by 2019. But what we can see in the figure 1 that from 2009 to 2014 annual grow in the grocery market start decreasing from 4.9% in 2009 to 2.8% in 2014. One of the reason for this is difficult economic conditions which had an effect for consumer spending. Consumers choose to spend less money on food by buying less food or by looking for cheaper places. Retail market is diversified into three main sectors: Hypermarket and superstores which accounts for 42.3% of retail market, convenience stores 21.4% and small supermarkets 20.3% (Figure 3). So about 84% of sales are done in these three sectors. The biggest 4 retail chains in UK are: Tesco which takes 28.7% market share, Asda has 17.3%, Sainsbury’s 16.6% and Morrison’s 11%. (Figure 2) So, if we will sum up 4 biggest retail market chains we will have about ¾ of market share. Finally, a strong characteristic of this sector is competition with price wars and a

Leading and managing change require a solid theoretical foundation. This assignment will research the theoretical elements of change and change management. Addressed will be the following: Organic Evolution of Change, Formulating Strategic Development Approaches, Leadership and Management Skills and Gathering and Analyze Data. As societies continue to evolve and changing demand creates the need for new products and services, businesses often are forced to make changes to stay competitive. The businesses that continue to survive and even thrive are usually the ones that most readily adapt to change. A variety of factors can cause a business to reevaluate its methods of operation. According to literature from the past two

Businesses are facing a dichotomy between wanting to chalk out an all-time structure and strategy for their organization, and recognizing that their world is in a constant state of flux [3]. For most of the 20th century they were largely focused on the static elements of this dichotomy. However, in the last decade changes have become more frequent and more dramatic, so much so that a whole branch of management is now devoted to the subject of change itself.

Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.

1.1 Change management is described by Armstrong (1) as “the process of achieving the smooth implementation of change by planning and introducing it systematically taking into account the likelihood of it being resisted”. Change, the fundamental constant in any successful organisation, can be adaptive, reconstructive, revolutionary or evolutionary and can happen for a number of diverse reasons:

For any business in the rapidly evolving world of business, planning and implementing successful organizational change is indispensable. Essentially, organizational change refers to a process whereby an organization strives to optimize performance in order to achieve its ideal state characterized by high performance and profitability (Côté & Mayhew, 2014). Any business would be more likely to lose its competitive edge, as well as fail to meet the demands of its loyal consumers if it doesn’t plan and implement change. Weiss (2012) emphasizes that all organizations ought to embrace change, and it’s imperative to note that successful organizational change doesn’t involve simple process of adjustments; instead it requires appropriate change management capabilities.

This research project was carried out to identify the reason for popularity of online shopping, to describe why eBay and Amazon became successful without having a High Street store, to compare eBay and Amazon in terms of revenues and customer’s opinions and to develop ideas on how they could improve their performance

Over multiple years, humans have evolved in many different ways, allowing them to adapt to their environment. Intellectually or physically mankind has shown facilities to conquer new grounds of reworking themselves towards better outcomes. In the business world, where theories and strategies combine, helpfully guiding those thrilling for adventures. Theories are an intriguing way of trying new experiments and setting an analysis, which might end up being true or shown to be false. Business Process Improvement (BPI) is a strategic way of planning in order to foresee which sector of a business has the potential to be encouraged or improved, leading to an overall business growth. As evolution can be a constant threat and opportunity in the business world, it is a merger role for managers to be aware and adapt their structure for improvement in order to compete with rival firms. As W. Edwards says, “It is not necessary to change. Survival is not mandatory”. (Jacobson, 2015) On the other hand, Successful Change Management (SCM) is a kind of approach to redirect a process within an organisation or the organisation itself towards its allocation of resources, budget, modes of operations etc. It reshapes the company through a more efficient

Week 3, the lecture on Managing Change describes organizational changes that occur when a company makes a shift from its current state to some preferred future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to decrease employee resistance and cost to the organization while concurrently expanding the effectiveness of the change effort. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Students of organizational change identify areas of change in order to analyze them. A manager trying to implement a change, no matter how small, should expect to encounter some resistance from within the organization.