Re-engineering based on Causes and Evaluation Characteristics. All organizations are challenged by a plethora of issues, which causes these corporation to evaluate the re-engineering of their corporation’s strategy. These issues are most commonly related to environmental factors and other factors such as the availability of resources. Ghoshal, & Bartlett (2000) argued that, “for every successful corporate transformation, there is at least one equally prominent failure” (p. 49). Therefore, most corporations are paralyzed by contingencies that inhibit their yielding of high revenues. The challenges facing Executive Managers of offsetting losses against profits, more than they report yielding high profits, would be detrimental to the …show more content…
The BlackBerry, Inc. wireless division, depends largely on obtaining its resources from other manufacturing organizations. Henceforth, the parameter in which the corporation decides to re-engineer its efforts must be along the lines of deciding whether to remain with its current supplier of resources or seek an alternative supplier. Therefore, organizations undertake difficult decision processes, since; they are based on the financial stability of the organization; and the urgency of erecting products of great demand. The BlackBerry, Inc. must weigh its contingencies, and decide on what course of action the corporation needs to take in approaching their issues. The organization has been sustaining major losses in profits to the Apple, Inc. If, BlackBerry, Inc. does not erect a suitable product that will gain market competition, the organization will lose all grounds to its competition, the Apple, Inc. Palmer, Dunford, & Akin (2009) argued, “change is both incremental, and transformational” (p. 86). Organizations in dire state need to implement transformational change henceforth, the corporation will experience defeat. Transformation also means addressing contingencies immediately, thus, re-engineering the holistic operation that will allow the corporation to yield high revenues. Incremental change is not as aggressive as transformational change, and as such, it
While it was foreseen that the company would initially take financial setbacks because of the reorganization, it was not believed that the financial risks would be drastic. However, the impending report that Mr. Elesser has to present to the board will detail a net income that will be nearly 26 million dollars in the red for 2004 (see exhibit 2)3. The blunt force restructuring met resistance on numerous fronts. First of all, the various components of the company did not operate under the same uniformed leadership objectives. Each division was set up to look out for their own interests and markets. When the restructuring plan that focused on a more centralized management process, many of the things that worked for one division did not necessarily work for other divisions of the company. This left some divisions at a severe disadvantage. Another obstacle that worked against the restructuring was the employee unions in which the company had to deal. The unions were not on board with the various downsizing and restructuring methods. In addition, the company had to deal with a couple of different unions which posed a problem with negotiating tactics. Benefit costs were also a significant investment that did not hold up well under the auspice of restructuring.
Today’s companies are challenged by frequent changes in market demands and consumers’ desires for new products and services. Companies which fail to adapt to these changing conditions often find themselves struggling to survive. This is the situation for the Texas Plant, as described in the case study by Pryor, Humphreys, and Taneja (2011). The Vice President, Human Resources Director, and Organizational Development Manager find themselves not only facing the struggles of transforming the Texas Plant, but also the difficulties of working together to achieve it. The following paper describes these difficulties and examines how the actions of the leaders impacted the change process. Recommendations to assist the plant’s leadership in moving forward will be offered.
The purpose of the report is how good BlackBerry run in the radio and television broadcasting and wireless communications equipment manufacturing industry in Canada in terms of revenues, market share, and the corporation’s Strength and weakness. Also, the report will analyze the BlackBerry’s three corresponding competitors’ market share in the hope of predicting the firm’s future performance.
The purpose of this book is to make us see that nearly all-operating prescriptions for creating large-scale corporate change are nothing but myths and that changes do not happen from one day to another by a miracle, the change from good to great is the result of a successful plan who
In this individual assignment, reading material including the different ways companies innovate, re-energize a mature organization, and change corporate culture provide the basis for analyzing British Airways’ (BA) transformation and the difficulties encountered in making an organizational change. Identification of critical factors leading to British Airways successful transformation as well as steps, sequence, and risks taken to transform the organization and personal assessment is provided for this case study.
Peripheral changes were seen as a type of quick-fix solution to a problem vice development of business strategy and well-planned implementation, this nearly guaranteed their failure. When any organization is in danger of failing, short-term solutions that have the biggest impact are initiated first and sometimes without analysis, planning, or communication. Regardless of the type of change an organization requires to remain successful, they must make sure that the organizational design is aligned with both organizational strategy and strategic plans.
- There are plenty of hardware component manufacturers for cellphones but BlackBerry’s operating system is complicated therefore it limits the number of software developers that will work with them.
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.
In the cases analyzed, we might infer that during a period of economic difficulties companies had gone through deep discontinuity. As such, this determined the need for a turnaround to realign the companies’ strategies with the external and internal environment. These changes impacted the four companies analyzed previously.
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.
Kotter’s 8-Step approach to transformational change begins with creating a sense of urgency. Creating a sense of urgency involves examining markets and competitive realities and identifying and discussing crises, potential crises, or major opportunities (Weiss, 2012). At its peak, Microsoft was at the forefront of computing technology. This position led to “overnight millionaires” that eventually skewed the perspective of the once eager employees. Long time executives ended up letting new employees handle everything while they waited for the next windfall. Instead of continuing a momentum of innovation, they [Microsoft] had allowed themselves to reach a plateau while the competition past them by. Innovation gave way to employees
Change in a business is inevitable and typically only the strongest thrive. With a fluctuating economy and constant technological advancements, organizations are expected to adapt in order to survive. When a business is posed with an issue or change, it must develop new business and strategy structures and implements those developments throughout the entire company. Communication, education and participation are all required for a change model to be successful. Though change and adaptation may be needed to better the company, with implementation of change comes resistance. Most companies face resistance on an organizational and individual level during a transition. However, it is how the company is able to overcome
In the book Reengineering the Corporation: A Manifesto for Business Revolution, Michael Hammer and James Champy discuss a concept that he originated known as “reengineering”. The process of reengineering involves coming up with new ideas, specifically processes, which are technologically advanced and extremely effective in completing corporate work. Companies must think ahead so that they will not only succeed today, but also set the rules for future business. A critical part of reengineering involves ignoring the current procedures and structures that have been set by a company and replacing them with more efficient processes. In creating these new processes, companies must focus on the needs and wants of consumers. This will ensure customer satisfaction, which is a key part of maintaining a competitive advantage in today’s world.
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.
Change in business is good, but it 's seldom easy and can often be expensive. Managers are often drawn to change by imagining the possibilities and positive impact it can have on their organization. Before launching an idea, however, spend a little time wrestling with the costs and disadvantages also a part of the change.