change 399

8/7/2019 Change 399

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8/7/2019 Change 399


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Contents:

Task Topic Page

2.1 A

3

2.1 B 5

2.1 C 6

2.3 A 8

2.2 A 10

2.2 B 14

2.3 B15

Implementation Chart 18

Reference 22

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TASK 1 second part

Strengths of bureaucracy organization:

It has a hierarchy of authority; here there is a superior for every one up to the top

managers. Unity of command, this means each subordinate gets duties from oneof the supervisors and he or she is answerable to him or her only. There is

responsibility of job descriptions, there are specific rule and description for the

employees. There are defined managerial responsibilities, the responsibilities of

managers are clearly defined in writing. The other strength is

departmentalization, in a bureaucracy the organization is divided in departments.

Weakness of bureaucracy organization:

The time taken for taking a decision takes time. It is rigid to handle people and the

problems. The well intended rules and regulation may cause inconvenience and

inefficiency. Many workers pass the responsibility when a problem comes up.Employees may not feel the job satisfaction because they are not involved in

decision making, but the take orders from there superiors.

The applicability of bureaucracy in today¶s world.

Yes I do think it bureaucracy is applicable in today¶s business world. Mainly because

many bureaucratic organization continuing to grow at a steady pace, such as Wal-

Mart and General Electricals. Secondly many organizations collapsed after

abandoning bureaucratic structure. Thirdly because the organizations are big and

the competition is fierce. These are the time when everyone has to work together to

attain success. But how will one work if he or she does not know whom to report to,what all the rules he or she follow, what all are his or her responsibilities etc. In other

words it is more organized. I would also stand for the fact that when the powers are

distributed among employees, the work becomes easier. It is found that when one

feel that he or she is been noted by a senior there production moves up, this can be

attained by bureaucracy. In this competitive worl d there is no room for error. Majority

of decision taken in a bureaucracy is found to be successful since the decision

passes through many and then get approved. It also provide with a better inspection

of each department by the respective managers. This helps in maximising the output

of these individual. At the same time there is room for improvement for bureaucracy

too. In today¶s world employees need new challenges. The employees get bored of the same work. This need to be looked upon. In bureaucracy it should be made clear

of the fact, who will be responsible in case of a problem. The managers should be

given more power, this means they can take decision for them self than depending

on the senior most. This reduces the time consumption for decision making.

Employees should be provided to put forward their ideas and suggestions, this will

make employees more attached to the organizations and more ideas come up.

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Lastly all the above said should be followed. If these are done, Bureaucratic

structure would be the best option for today¶s business.

2.1C

Task Ione first part but needs to be elobarated

Change is the only thing that does not change; it is very true with the UK

supermarket industry. There have been many significant changes that happened in

this sector. One among the many was the shutting down of Woolworth store.

Woolworth was a store specialised in gifts and other items, due to debts they had to

shut down. Being a budget shop, many people relied on Woolworth for their festival

purchases; this is estimated to be 1.3 billion. In this situation the supermarket

industry is in stiff competition to capture this 1.3 billion during this Christmas season.

The second major change in this industry came up because of the recession, an

economical factor. When the purchasing power of the people went down the

companies where forced to come up with products which the crowd was able to

afford during recession, a question of survival for the business. Store like Tesco,

Asda, came up with this. The same was done by Mark and Spencer too.

TAS ONE FINAL PART PLESES INCLUDE SOME THEORUES

There are many approaches that supermarket can take to develop their organization.

Some of the many are given below.

1. Opening small branches of the supermarket in the suburbs.

2. Internet purchase3. Home delivery

4. Concentrating more on the local crowd.

Opening of small branches:

With this step the supermarket industry get more crowds from the suburbs. In these

areas majority of the business are done by the small local shops, due to the same

the fear of competition is comparatively less. This is because the purchasing power

of the supermarket is much more than the local shops.

Internet purchase:

In this busy world many find it difficult to find time for shopping, for them purchase

through internet will be of great help. When we look into the investment that is

needed to set up this facility is negligible compared to the benefits it¶s going to

provide.

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Home delivery:

It is been found that majority of the purchases, i.e. glossary and other hous e hold

items are done by women. It is not easy for them to carry heavy load of luggage and

also they could be accompanied with the children. For these people a facility of home delivery will be of great help, this also help in creating a better reputation of the

supermarket. To make this facility beneficial for the company, i.e. financially, a

condition should be made; home delivery will be done only for purchases above 30

pounds and within 2 mile radius.

Concentrating more on the local crowd:

Usually supermarkets are stocked with lots of items, but very rarely there is a

concentration for the local crowd. This saying goes true for the local crowd µwater,

water everywhere no water to drink any where¶. When the supermarket is well

stocked with the local communities needed goods, there is double the chance of theorganization becoming successful.

Comparison:

Opening of the small shops is expensive, but in the long run the supermarket can

expect better returns and higher market share. On the other hands implementing

Internet purchase is much cheaper and more profit compared to the investment.

Even though it is profitable, promotion of internet purchase is not advisable because

a customer tends to buy more items when he/she visits the store than on internet

purchase.

Home delivery and concentration on local crowds need is equally important, this will

enhance the customer satisfaction.

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2.3 A

Lidl is a supermarket chain of Europe having its chain of business in UK and in many

other parts of the world. It was established in Germany in 1930 as a grocery

wholesaler. Now Lidl has more than 380 stores in UK and EU.

To be successful in this competitive world, Lidl has to take new steps. The below

said are some among the many.

Better customer service, more organized arrangement of products, widening the

range of products, providing, concentrate more on local crowd, Introduction of self checkout counters.

Better customer service:

It is been noticed that the customer care service of Lidl is poor compared to the

competitors like ASDA, Tesco and Marks and Spencer. This can be overcome by

providing training to the staff and by motivating them. After the above said follow up

should be done and the odd one outs to be warned or sacked, since one rotten apple

rote others in the basket too. The evaluation can be done by mystery shoppers etc.

Organized arrangements of products:

When the products of the same kind, i.e. like food items etc are scattered throughout

the store it is difficult for the customers to identify t he location, with the proper

arrangement of the items within the store this discomfort for the customers can be

overcome. This also provide customers with a feel that more items are available in

certain department, i.e. in food, textile etc.

Widening the range of products:

With the competitors widening the range of products, its high time Lidl need to

implement the same. It is been found that Lidl lack many daily used food items like

ginger, curry leaves, and many other vegetables. This is a serious drawba ck, since

customers will be preferring purchasing from a supermarket where majority of items

are available. Diversification within the industry will be beneficial too. This can be

with introduction of new departments for electronics, cosmetics etc.

Concentrating more on local crowd:

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Lidl has a lot of items but does it cater to the local crowds need? This is an important

question to be answered. Mostly the answer is no. Due to this issue, Lidl has lost

most of its local clients. By overcoming this issue, it is for sure that, Lidl can gain

major market share.

Introduction of self checkout counters:

Even though self checkout counters are there is some of the Lidl, many don¶t have

the same. This result in overcrowding of customers and at time leads to quarrel and

issues between the staff and the customers. With the introduction of self checkout

counters in majority of the Lidl the issue can be overcome and also benefits the

customers to save there time. On the other hands Lidl also can save money on

human resource.

Better

Customer

Service

Organized and

Arranged Products

More

concentration

of local crowd

Widened range

of products

Introduction of

self checkout

counters

Lidl become a

powerf ul

competitor or

gain an edge

over others.

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Task 2 full

The best tool for involving the stake holders in the introduction of change will be

stakeholder analysis.

For this, the first question that needs to be answered is, who all are the stake holders

of Lidl are. Then the next is to find out who are the important stakeholders. The thirdis to identify the influential stakeholders and the final to know who can disagree or be

against the plan. The details of the above said are provide d below in the form of a

table.0

Stake Holders

Important Stake

Holders

Influential

Stake Holders Threat

Employees Employees

Share Holders

Customers Customers Customers Customers

Owner Owner

Supplier Supplier Suppliers Suppliers

Competitor Competitor Competitors

Government Government

NGO

CouncilPressure group(Environmentalistetc)

FinancialInstitution Financial Institution

Distribution Distribution

Call Centre Call Centre

Due to the limitation of words, only one change will be discussed. Concentrating

more on local crowd will be the step that will taken care of here.

In the above shown table all those who are in the first column are the stake holders

of the company, ie any one who has a role or interest in the organization. In the

second column are those who are important stakeholders, but why are they

important.

Employees:

If the employees are not aware of the goods that is needed by the customer, this

step will not bear the expected result.

Customer:

Customer is the king, even if we stock the entire shop with items of local crowd,

unless and until customers buy the items, they are dead stock.

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Suppliers:

The suppliers provide the stock that is the processed goods. Unless and until they

provide the stock the plan will only remain a plan, also if they provide bottle neck

supply, the result will be minimal compared to the expected.

Competitors:

The main reason for constant improvement is because of the competitors. They can

affect the organization, if they come up with the same plan or with a better plan, like

the same goods for cheaper price etc. For this reason they are considered important.

Financing Institution:

For a change like this, i.e. expanding the goods portfolio, money is a must. Unless

and until the organization doesn¶t have the money, it is not possible to move forward.

The money could be from the retained profit, if it is not sufficient, then financial

institutions are the next option. This is the cause for consideri ng them important.

Distribution:

Providing the purchased items to the door step of the customers is the new way of

attracting customers. If the distribution team do not participate in the expected

manner, then the strategy cannot be a success.

Call centre:

The customers usually call to enquire or to know about the new products available in

the store, unless and until the customer care is well aware of the same, they cannot

help the customers. This way the customer care is also important.

Influential Stake Holders:

Customers:

This is because, especially in United Kingdom, the law against discrimination is very

strict. If for any reason , an individual of any other community, or race or country

other than of the majority of the local crowd, file a case, then Lidl will have a tough

time. This also the reason for the threat.

Suppliers:

Every supplier will look of the profit; they will support those products which fetch

them better profit. The item which is in demand by the Lidl may not be a product

suppliers are interested in. This means they have an influence over this change. This

is also an issue of threat to the organization.

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Competitors:

They may keep a close watch on Lidl and will try to implement all the changes that is

done by the Lidl, so that they won¶t lose in the race for profit.

Government:

The government is immensely powerful. If they feel that certain items should be

prohibited, then this could be a risk for the new strategy. If they feel Lidl is on the

way to become a monopoly then they can restrict any further development, this is

also another cause for considering them influential.

How the stakeholders are involved?

The employees will be provided with the knowledge of the new products, there rateand the use. The positions of the new products for the local community will also be

explained to the employees.

For the customers, there will be free booklet distributed from door to door. The

advertisement of the newly arrived goods will also be placed in from of the store.

Announcement of the same will also be done inside the store for the customers. As

an introductory offer, the customers will be provided with 5% discount for all the

items for the first two weeks. This will attract customers to the store where by

providing better knowledge about the newly arrived goods. The issue of

discrimination can be tackled by providing the details of the other universal items

those are stocked in the store. If this is not satisfying the customer, the firm will have

to take help of the solicitor to resolve the i ssue.

Owners need profit and the good will of the firm. With the help of detail plan and the

expected result, it is for sure that owners will be interested in sanctioning a go for the

strategy.

If the organization is not able to find the supplier for the planed items, then either

the organization opt for direct import, or can ask those existing suppliers to include

these new items to their supply. Being an existing supplier, this addition will bring

new profit for his firm and he will be more than intereste d.

There will be routine check done on the items and the new offers put forward by the

competitors, this will enable Lidl to plan accordingly and if needed necessary

changes can be done to the strategies too.

A detailed explanation about the strategy and the benefits will be provided to the

financial institution, for which the organization needs money. If the bank or any

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other institution is not willing for this, the property of the organization can be

mortgaged for money.

Instead of salary, distributors will be provided with commission. This will enable

them to earn more and also they will be more interested in higher no of deliveries.

This not only benefits the distributors but also the organization by identi fying the non

performers.

The call centre people will be informed about the new products in the company; this

will help the customer to get the details of the new range of goods.

Models of change task

des cibe

pdc

korters model

business process model

kayson model

six sigma

2.2 b

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Evaluation:

With the above said changes, I as a manager is happy with the

participation of the stakeholders. Majority of the major stakeholders

have participated in the system. Government was an exception in thelist of the major stakeholders since there is nothing that can be done

against the law and being way more powerful than the organization, it

was unable to have a good participation from the government.

Even after all these developments there are chances of failure if there

is any loophole in the system. Even though not evident, there are

chances of issues from the employees of Lidl, ie lack of knowledge

about the products, lack of customer support etc. This can beovercome by providing batter training for the staff.

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2.3b

Implementation of plan:

To implement the plan (addition of goods concentrated on local

crowd) there 17 steps that need to be followed.

FIRST PHASE -3 weeks

Making of budget for the first phase.10 members -2 weeks =

7000pound

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This will be done by the facility manager. The budget expected to

occur for survey is, 7000 pounds. With reference to the budget, the

company will be paying 7 pound per hour for a member in the survey

group; they are expected to do the survey for 10 hours a day , which is

7 * 10 per member which will be 70.00 pounds per member for a day.Company plans to conduct surveys on Monday to Friday in 2 weeks

which will be 10 days in total. So the expected expenditure will be 70 *

10= 700.00 pounds for 10 members per day. 700.00 pounds * 10 days

= 7000.00 pounds. Facility manager will be the responsible person for

the above said step.

Identifying the product needed by the local crowd.

The company will be sending 10 members to the local house hold to

conduct a survey on the goods that the crowd daily use and what good

they expect to be added to the Lidl product list. This process is

expected to take 2 weeks. Customer relation manager and store

manager will be the responsible who will be conducting this step.

Finalising the product that needed to be added to the store

After the survey it is then to finalize the products that are needed to

be added to the store, this will be done by Customer care manager,

Purchase manager, Store Manager.

Making a budget for the purchase of these items.

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After finalization it is time for making budget for the purchasing, this

will be done jointely by the Purchase manager, Finance manager,

since majority of the items are available on credit, and not much of

amount is need. Still as a contingency plan 2500.00 Pounds will be

kept aside, if at all there is a need for money.

Identifying the suppliers

After the 4 step in the First Phase , it will be identifying the supplier.

There will be many suppliers in the market, but the store will have to

get the supplier who will supply quality goods for reasonable price

and who is punctual in delivering the goods. This will be the

responsibility of Purchase manager, Facility Manager.

SECOND PHASE 2 weeks

Identifying and removing those items those are of less demand or of

no demand.

It can be noticed that there are items in the store that are of less

demand, these items eats up space , this space can be utilized forstoring and displaying items of better demand, this step will be

carried out by the Store Manager, Sales Manager.

Identifying space for storing the items

As the items increase there can be storage for space, this can be for

both storing and for displaying, there might be a need for expanding

the store or adding more racks for displaying inside the store, this isthe responsibility of Store Manager, Facility Manager.

Making a budget for renovation that is needed 4000 pound

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Making budget for renovation is the next step, it was noticed that the

store needed only racks and the need was of 10 racks. A si ngle rack

costs 400 pounds, that means 10 racks will cost 4000 pounds. Since

going for bulk purchase discount will be available but in this case that

is not considered.

Implementing the renovation

Once the budget is set then it is responsibility of the Facility Manager

to implement the renovations.

Evaluating the renovation and if changes needed implementing.

Once the implementing the evaluation is over its then for the Facility

Manager, Store Manager to evaluate the implementation. If at all any

changes are to be done this will be done immediately.

THIRD PHASE 1 week

Placing order for the items

Now the suppliers have been identified, and the space for storage is

also set, now its time to place the order. This is the responsibility of

the Purchase Manager.

Passing information to the customer care.

Once the items have reached the store, then the customers care will

be provided with information about the new product, its quantity and

prices. This will be done by the customer care manager and the details

of the product will be collected from the store manager by the

customer care manager.

Educating staff about the new products.

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All the necessary items are now in the store and the customer care is

also aware of the new products, after this the staff will be educated

about the new product, its uses, where it is located, how it is to be

used etc. This will be the duty of the store manager.

FORTH PHASE 1 week

Making a budget on advertising 2000 pound

With the implementation of the entire above step the store is fully

equipped to welcome the new customers, now the next step will be

creating a budget for advertising. This is to be done by jointly by the

finance manager and by the marketing manager. 1000.00 pound willbe the expected budget for the advertisement.

Advertising about the new range of products.

Advertising is the next step that has to be done need to be done after

the budgeting for the advertising is done, this will be the

responsibility of the marketing manager, advertising will be done

through the leaflet distribution and through banners.

Evaluating of how far the organization was able to stick to the budget.

Even though there will be regular evaluation that will be conducted

with the matter concerning sticking to budget, it is important to find

out finally, how well the firm was able to stick to the budget. This will

be done jointly by Finance manager, Marketing Manager, Facility

Manager, Purchase manager, once after receiving the result , thefactors regarding the overlap of budget, if at all there is will be

discussed with the management and relevant steps will be taken to

ensure that the same mistake wont happen again.

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Evaluating the sales.

When all the above said steps are over , then it time for evaluation of

sales, which is the key evaluation which gives the idea about the

success of the new change, this will be done by sales manager.

FIFTH PHASE 1 week

Taking customer feedback.

Customer feedback is important in a change which has customers as

the major stake holder. The level of satisfaction of the customers will

be evaluated with the help of customer feed back, this will be in the

form of small questionnaire filling. The person responsible for this

will be customer care manager.

If improvements are needed, based on customer feedback,

implementing the same.

If any room for improvement is noticed from the customer feedback,

then it will be the responsibility of Customer care manager, Store

manager, and purchase manager to see to it that these rectifications

are implemented.

Evaluating the sales.

The sales are again evaluated after the implementation of the change

by the sales manager to find out how far the implementation of the

change was successful.

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The entire implementation Phase is expected to take 2 months in

total, the details regarding the weeks are provided in the

Implementation chart below.

Implementation Chart

Activity Responsible

Person

Budget Time Of

commencement.

First Phase:

Budget

Making

Facility Manager 7000.00 pounds Week 1

Identifying

the product

needed by

local crowd

Customer relation

manager and

store manager

Week 2

Finalising the

product that

needed to be

added to the

store

Customer care

manager,

Purchase

manager, Store

Manager

Week 2

Making

budget for

purchase

Purchase

manager, Finance

,manager

2500.00 pounds Week 3

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Identifying

the supplier

Purchase

manager, Facility

Manager

Week 3

Second Phase:

Removal of

items of less

demand

Store Manager,

Sales Manager

Week 4

Identifying

space for

storing theitems

Store Manager,

Facility Manager

Week 4

Making

budget for

renovation

Facility Manager,

Finance Manager

4000.00 Pound Week 5

Implementing

therenovation

Facility Manager Week 5

Evaluating the

renovation

Facility Manager,

Store Manager

Week 5

Third Phase:

Placing order

for the items

Purchase Manager Week 6

Passing

information to

the customer

care

Store Manager,

Customer Care

Manager

Week 6

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Educating

staff about the

new Product

Store Manager Week 6

Forth Phase:

Making

budget on

advertising

Marketing

manager, Finance

Manager

1000.00 Pound Week 7

Advertising

about the new

range of products

Marketing

manager

Week 7

Evaluating the

budget

Finance manager,

Marketing

Manager, Facility

Manager,

Purchase

manager

Week 7

Evaluating the

sales

Sales

Manager

Week 7

Fifth Phase:

Taking

customer feed

back

Customer Care

Manager

Week 8

If errors or

complaints

are received

rectifying the

Customer care

manager, Store

manager,

purchase

Week 8

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same manager

Evaluating

sales

Sales manager. Week 8

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What will the supermarket achieve after the implementation?

After the implementation I as a manager of the supermarket, Lidl

believe that more customers will be attracted, due to wider choice of

goods.

This will not only increase customer satisfaction but also profitability.

In will provide lidl with a competitive edge or at least can be an

equally strong opponent in the stiff competitive business sector.

It will give a new reputation for the supermarket, before it was

considered to be a store which deals in African food only, with the

implementation of the above change, the store will have a new

reputation for having global foods and items.

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Reference:

Barbara Senior, 2002, Organisational Change, 2nd edition, Pearson

Education Limited, England

Bernard Burnes, 2004, Managing Change, 4th edition Pearson Education

Limited, England

8/7/2019 Change 399


Boddy, D. and Paton, R. (2004) Responding to competing narratives: lessonsfor project managers. International Journal of Project Management, 22, 231.

Bourne, L. and Walker, D. H. T. (2005) Visualising and mapping stakeholder influence. Management Decision, 43, 650

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