Week;18 Case Study Hewlett- Packard

How can using change kaleidoscope and force- field analysis help an organization to deliver its intended strategy?

Change Kaleidoscope was developed by Hope Hailey and Balogun (2002). It is a diagnostic framework and can be particularly useful in a context sensitive change processes, which one can argue is the case in the management processes. (Stanford University USA).  The kaleidoscope contains of an outer ring  concerned  with  the  organisational strategic context,  the next  ring is the middle  ring which  comprises of the features  of the  change concept/ context,  and  finally  the  third  ring consists  of the choices that can  be  made.

The eight contextual features of change kaleidoscope is as follows:

Time	How much  time is allotted to the organization to  achieve plan or is it concerned with  long term strategic planning or development
Scope	If  it is the change then is it going to hamper the organization as a whole or is it going to effect a particular department. What kind of change is required?
Preservation	If a change is about to happen than what are  the company assets that have to  be preserved or protected.  To what extent is it essential to maintain continuity in certain practices or preserve  specific assets
Diversity	Is the staff in the organization concerned diverse or relatively homogenous in terms of its values, norms and attitude?  Are there professionals who identify more with their profession than their organization?
Capability	Is  the organization capable enough to handle changes?
Capacity	Is there enough capital and resources to divert towards the change?
Readiness	Is the staff informed about the upcoming change and are they ready to accept it?
Power	Where is the power vested in the organization?

Force Field Analysis:

Force field analysis is a useful decision making technique. It helps us to make decisions by analyzing the forces for and against a change, and  it helps us communicate the reasoning behind our decisions. (Cralson)

While carrying out force field analysis we should consider the following questions:

·     What business benefit will the change deliver?

·     Who supports the change? Who is against it? Why?

·     How easy will it be to make the change? Do you have enough time and resources to make it work?

·     What costs are involved?

·     What other business processes will be affected by the change?

·     What are the risks involved?

dChange Kaleidoscope for Hewlett Packard.

Works Cited

Cralson, A. (n.d.). Retrieved from Mind tools: http://www.mindtools.com/pages/article/newTED_06.htm

Stanford University USA. (n.d.). Retrieved from Pro Work Project: http://www.proworkproject.com/prowork/change-kaleidoscope.html

Week 17

Can you think of an organization that has implemented a ‘high risk strategy’?

Investing in a small private business/company is regarded as a high risk strategy.  If there is no proper strategy there is very high possibility of a complete failure.

A company is considered a high risk business based on two conditions. It operates within a high risk industry and risk of financial failure exists. So both of the condition might be applicable.

 If I have to  answer about any organization that has implemented ‘high risk strategy’ that has been successful would be SAMSUNG.

SAMSUNG a globally recognized name was founded by Mr. Lee Byung Chul,  in 1938 in Daegy, South Korea as a small export business has grown to  become one of the world’s leading electronics company. Today Samsung’s innovative and top quality products and processes are world recognized.  Through innovative, reliable products and services; talented people; a responsible approach to business and global citizenship; and collaboration with their partners and customers, Samsung is taking the world in imaginative new directions. (Samsung/US). Being a globally recognized brand it is dedicated in developing innovative technologies and efficient processes that creates new markets and continue to make Samsung a digital leader. (Samsung/US)

Samsung have a very simple philosophy that they follow that is to  devote their talent and also  use their technology to the fullest to create  superior products and services that can be contributed to make a society a globally better one. This is the era  of technology that also a very fast moving one so it has become a necessity for a constant change and new innovations no one can think of surviving in the market with one innovation and then full stop, everyone has to keep in consideration the fact that there should be a consideration for a long term goal for its  successful existence in the competitive market.

Samsungs Electronics vision for the new decade is to ‘’Inspire the world and create the Future’’. (Samsung/US)

In the market of smart phones the Apple Inc has been ruling so far with their I phone series and almost created monopoly with it,  it is not a easy nut crack to come in competition with the Apple itself  and here Samsung took a greater risk with coming with the Samsung galaxy series and boom Samsung galaxy was the biggest hit in Asian market as well as the European market as well, it came up with a user friendly smart phone in a cheaper price then the I phone and was mostly  successful in  diverting I phone’s loyal customers to Samsung  and it was a risk well taken. The strategy a successful one.

Now do the same for an organization who embarked on a high risk strategy that resulted in some sort of failure. Why was it a high risk? Why did it fail bad luck  or poor judgement?

Lloyds bank Plc is a British retail bank with branches across England and Wales. It has traditionally been considered one of the big four clearing banks.  It was originally founded in 1765. In 1995 it merged with the trustee savings bank and traded as Lloyds TSB bank plc from 1999. Lloyds bank has an extensive network of branches and ATM in England and Wales and offers 24 hour telephone and online banking services. As of 2012 is has 16 million personal customers and small business accounts.

As we all know how banks work the more customers they have the more money they generate with it. So in this way Lloyds bank opened accounts of almost everyone be that be students  or others  as for other banks they asked  for  funds verification and many other things but Lloyds made things easier for others, but in the future it definitely strike them with a drawback,  and another  issue is they also offered bank loans, house loans, car loans etc  in  cheaper rate. People were easily granted loans with less stricken checked credit history, so people applied for loans but as in the recession period people were not able to pay back the loans and the bank was in trouble that was the same issue with the credit cards as well. So this is a strategy fail for them, they tried to generate income with it but caught up in more trouble. It can  be regarded as the poor judgement of the organization and also  a poor startegic planning as well  which resulted in the downfall of the Lloyds Tsb.   

WEEK: 16

Organic growth:

Organic growth strategy involves strengthening your company using its own energy and resources. This approach to company growth is slower than others, but it has relative low upfront cost. ( (Chron). Which will make it an attractive option for basically to small businesses and also helps in expand their companies not having large amount of capital? 

Merger and acquisition

A merger  or  acquisition  is  a combination of two companies where one  corporation is completely absorbed by  another  corporation. The less important company loses its identity and becomes  part of the more important  corporation,  which retains its identity.

In other words methods by which corporations legally unify  ownership  of assets  formely subject to  separate controls. A merger is not  as same as consolidation in which two corporations  lose their separate identities  and unites to form a complete new corporation.   

Strategic Alliance

An arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. A strategic alliance is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity. In a strategic alliance each company maintains its autonomy while gaining new opportunities. A strategic alliance could help a company develop a more effective process, expand into a new market or develop an advantage over  a competitor ,  among other possibilities. (investopedia)

Give an example of a company that has grown through a)  Organic growth  b)  Merger and acquisition   c)   strategic alliance. 

ORGANIC GROWTH

The early history of Bibby Line Group is characterised by organic growth. Starting with seven ships at the beginning of the nineteenth century, the company expanded over the next 20 years to acquire another 18 vessels. Initially it focused on routes to Mediterranean ports, before expanding to support trade with India, China and, later still, South America. Its ships carried many different cargoes, including cotton, sugar, animal hides and many other commodities.

STRATEGIC ALLIANCE

In 1996 Starbucks partnered with PepsiCo to bottle distribute and sell the popular coffee based drink Frappuccino.

Merger or Acquisition

It was a complete and total shock when bitter rivals Publicis  (PUBGY) and Omnicom (OMC) agreed to a so-called merger of equals to create the largest advertising agency holding company in the world

CASE STUDY

Briefly discuss the merger between Britiv and AG Baar. What advice  would you you give to the new board?

The combined entity of both merger of Britvic and AG Barr is called ‘’Barr Britvic  Drinks plc’’. In which the Britvic shareholders holds 63% of the total share and AG Barr shareholders hold approximately 37% of the share capital. (The Telegraph)

The advice I would like to give a new board is:

·         First of all cut off all the unnecessary expenses

·         Focus on research and development before direct investment

·         Good hierarchy system with proper flow of information.

·         Proper advertising.

What are the positive benefits? What should work well?

·         Being an individual  brand before both the drinks had its own customers preferring their drink,  after the merger there is  more chance of the drink selling with both the loyal customers coming together.

·         If you have a  partner sharing risk you spend more,  and it might be beneficial for the company.

·         New  company can bring new taste in the market and can give competition to other flourishing soft drinks.

·         The resources and the technology can  be shared

·         The human resource can  be used to  the  fullest 

What are  the negative  and potential risks?  What problems might occur?

·         The other  partner   can be less enthusiastic because of less profit sharing ratio.

·         Change in  the regular taste can decrease its sales

·         Clash in decision making, and getting more or less priority.

·         The major issue is cutting off the jobs of the staffs working in both the company .

 REFERENCES

(n.d.). Retrieved from Chron: http://smallbusiness.chron.com/organic-growth-strategy-57130.html

(n.d.). Retrieved from investopedia: http://www.investopedia.com/terms/s/strategicalliance.asp

The Telegraph. Britvic and AG Barr merger.