WEEK 18

Week: 18

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

Change kaleidoscope            

Hope Hailey and Balogun developed change Kaleidoscope in 2002 to be a way of pulling together and codifying the wide range of contextual features and implementation options that require consideration during change. It is more of a model than a method, but it is usable tool for comprehensive framework which deals with all of the factors that the authors deemed significant by the literature. The model include an outer ring which is concerned with the features of the change context that can either enable or contain change, and an inner ring that contains the menu of implementation option open to change agents. The model can be used as tool for analyzing in industries such as information technology management consulting, administration and system service outsourcing, pharmaceutics, newspaper and magazine distribution and banking. The strength of model lies in its recognition of the complexity of change and the need for change to be context sensitive. The model work best when change is transitional in its nature. (Hailey, Balogun.,2002)

Force- Field analysis

 The principle force field analysis was developed by Kurt Lewin, 50 decade ago is a major contribution to the field of psychology, organization development, social science, change management, process management and social psychology. It provides a frame work for looking at the force that influences a situation, originally social situation. It looks forward at forces that are either blocking movement towards goal (hindering force) or driving movement towards goal (helping force). The hindering force is commonly known as resisting to change. It is related with employee behavior and act as main hurdles of change. Whereas the helping force represent competition, demographics and technology that drive force of change. The field is very dynamic, experience and changing with time. The approach allowed breaking down common misconception of social phenomena, and determining the basic element construction. Therefore, Lewin used theory, mathematics and common sense to explain a force field and hence determine the cause of human and group behavior.(P Sarah, 2010)

Hewlett Packard change kaleidoscope diagram:

Time:	Time for change Require immediate change Focus on brand name
Scope:	Proper management style Management layout need to change Motivation technique require
Preservation:	Employee’s optimistic thinking Brand goodwill Proper working environment
Diversity:	Need harmony between management and workforce Norms and value Diversity in perception
Capability:	Improve IT sector Initiate change with skill employee
Capacity:	Train employee Motivate employee for change perception
Readiness for change:	Hard to accept new CEO Challenge to change employee
Power:	Proper utilization of power by CEO Equality and motivation among employee Proper authority to employee

Reference

1.      Hope Hailey V, Balogun,J., (2002), 'Devising context sensitive approaches to change: the example of Glaxo Wellcome.', Long Range Planning, 35(2), p.153-178 

2.      P Sarah (2010) Force Field Analysis (online) http://www.mindtools.com/pages/article/newTED_06.htm (Accessed on november 27, 2013)

WEEK 17

Week: 17

Micromax

                          

Micromax is an Indian consumer electronic Company located in Gurgoan, Haryana, India. In 2000, it started as an information technology software company working on embedded platform. It entered in mobile phone business in 2008 when multinational company like Samsung, Apple, Nokia and Sony Ericson etc was ruling the telecom industry. With proper understanding of rapidly changing of customer choice, Micromax differentiated itself from other major players with features and pricing. In the city of powerless, the mobile phone with truck batteries need to charge frequently so they create their product with innovative idea of mobile phone with a month long battery backup known as X1i. By 2010 it became a one of the largest Indian domestic mobile phone company operating in low cost feature phone segments. This transformation credit goes to four people who divided responsibilities on functional lines: Rajesh Agarwal, Rahul Sharma, Vikas Jim and Suneet Arora. Now, in 2013 it has achieved 22%of market share in the smart phone segment in India. Beside India, the company serves their product in Nepal, Bangladesh and Sri Lanka. It offers more than 60models ranging from feature rich, 3G data cards and LED television. Among many products, the company made huge success from mobile phone sector including features of 30days battery backup, universal remote control mobile phone, dual sim card and QWERTY etc.(Micro max,2013)

Figure 1

                     Nokia

Nokia Corporation is Finnish communication and information technology Multinational Corporation that has headquarters in Finland. It provides telecommunication service and equipment all around the world, while internet service, includes music, application, messaging, media and game, and free of charge navigation system and digital map information. It was the world’s largest seller of mobile phone from 1998-2012. However from several past years its market share is declining as rise in use of smart phone around globe. At time, when its competitor Apple (iphone) running on Android an operating system created by Google. The corporation’s share price fell from US$40 in late 2007 to under US$2 in mid 2012. So to bid for recovery, Nokia announced a strategic partnership with Microsoft in 2011, leading to replacement of Symbian with Microsoft’s Windows phone operating system in Nokia smart phone. After replacement to Symbian system, Nokia’s smart phone sales figure was initially increase but it collapsed dramatically. And from beginning 2011 to 2013, Nokia fell to stick on position of world’s largest smart phone seller.(Nokia 2013)

(Case Study)

Nirmal Kumar, a degree holder from IIM Ahmedadad choose to earn Rs 45,000 a month, managing a fleet of 10,000 auto rickshaw in Gujurat instead holding a job in multinational company with a fat pay packet. Once, while returning from restaurant he was overcharged by an auto, he felt it was cheated so at the moment he came up with a new business idea. He contract with auto drivers who park outside the IIM campus with assurance of free newspaper and health-cum-personal insurance cover, in return they only had to give an undertaking that they would charge proper fares. His new idea was popular and appreciable buy many companies. Despite of his physical challenge, initially he bears all the expenses that were incurred by the project. Later on the next tranche of funding came from some companies in Gujurat. In return, its easier for companies to increase their CSR (corporate social responsibility). Kumar developed the brand ‘G Auto’ which carry advertise of companies in vehicles and it easier a nice opportunities for companies to promote their product face to face with customer. Kumar generate sizeable revenue from this process. At the same time he increased the facilities for drivers and subsidies for them like health care, education for their wards beside the insurance. Today G Auto generates revenue from different source like government, corporate and from advertisement. Kumar also fight for the drivers if the cops wrongly harass them. If any members in G Auto don’t obey the rule then they may lose the benefit and membership. G Auto was awarded as SMART Mobility by the University of Michigan on transportation solution. Later he met Delhi Chief Miniter and plans for the national capital which was good opportunities for Kumar to expand G Auto. Now using technology its easy to monitor the vehicles through GPS and also the meter is computerized which cannot be tweaked. Customer can get service by calling in their call center through a free mobile phone application.

Nirmal Kumar and Kaushlendra Kumar with diversifying of business they create new idea for vegetable selling through innovation venture. Bihar based Kaushlendra whole brand ‘Samriddhi’, MBA sabziwala has been professionalizing and creating new distribution channel linkage to facilitate faster distribution of fresh fares produce with minimal lead time and better customer satisfaction. They are touched the lives of more than 6000 farmer families in Bihar and provide direct employment around 300 people. Their aim is to form institution of vegetable farmers so that they can have bargaining power in changed market dynamics like foreign direct investment in retail. They are also trying to expand this business and aim to cover the whole country to buy vegetable online through which they have option to buy fresh vegetable. The whole aim for this business is to reduce a middle party who only get commission by linking farmer and customer. With reduce of middle party the farmer get right price and customer won’t to pay almost 300-900% higher price for vegetable.

Reference

1.      Micromax,(2013), online at www.micromax.com  (Accessed on November 25,2013)

2.      Nokia (2013), online www.nokia.com   (Accessed on November 25, 2013)

WEEK 16

Week: 16 

In your own words and using referenced quotes describe the difference between organic growth, merger & acquisition and strategic alliance.

Organic growth                    

It represents the true growth of the organization and increase profit by managing the internal resources of an organization. It is also the result of effective management team and the manager. Here, the organization’s capabilities and competencies are used to enhance sale and increase profit as a result its very easier for organization to expand. The decision making authority are within the organization so no external forces hamper it.

Organic growth is the process of business expansion due to increasing overall customer base, increased output per customer or representative, new sales, or any combination of the above, as opposed to mergers and acquisitions, which are examples of inorganic growth. (Wikipedia, 2013)

Merger and acquisition

When two organizations of similar sizes come together and form a single new company then it is known as merger. After merger the company will have new stocks.

When companies takes over and have entire control of other weak company is known as acquisition. It’s a corporate action where a company buys most of the target company’s ownership stakes to have control over the target firm. It is most happen to expand business by taking advantage of an existing firm’s operation instead of expanding on its own.(M Silly,2008)

 Strategic Alliance

When two organizations decides to share resources temporary when working on a mutually beneficiary project by maintain their own autonomy is known as strategic alliance. It helps company to gain competitive advantage and enter in new market.(International Trade, 2013)

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

a.       Organic growth

Example would be General Electric

b.      Merger  and Acquisition

Merger – example, HP and Compaq, Sony and Ericsson, Global Bank and IME.

Acquisition – example, SPSS acquire by IBM, News Corp.’s acquire Dow Jones.

c.         Strategic Alliance

Example would be Motorola and In-Focus Motorola and In-Focus Systems, Nokia and Microsoft.

(Case Study)

Briefly discuss the merger between Britvic and AG Barr. What advice would you give to the new Board?

The two company (Britvic and Barr) merging together to form a single new company i.e. AG Barr and Britvic. The deal between Britvic and Barr is structured as acquisition with Barr owing 37% of share. Now there'll be only one company in competition with them i.e. Coke.

Positive

a.       After merger, the combined operating of companies was success to save 23% of annual cost.

b.      It’s easy to compete in market with Coke.

c.       The expertise management of Barr will improve the Britvic’s management system.

d.      Risk minimization and huge cash flow helps in covering the debt of Britvic’s £600m.

e.       Both lies on same industry so technology and resources can be share.

f.       Taking benefit of scale production can compete in much intense market.

  Negative

a.       Debt of Britvic’s £600m will be share so its disadvantage for Barr.

b.      People may loss their bobs after merger.

c.       Negative experience in single brand may result loose customer for both brand.

d.      Product shift from existing to new one is highly risky

.Suggestion

a.       Set participative goal

b.      Proper authority and decision making

c.       Good communication

d.      Unnecessary expenses should be reduce

e.       Lots of promotional activities

f.       Proper feedback about product and continue improvement should be done.

g.       Advertising of product

Reference

1.      M Silly (2008) Difference between Mergers and Joint Ventures (online) http://smallbusiness.chron.com/difference-between-mergers-joint-ventures-18578.html (Accessed on November 15, 2013)

2.      International Trade (2013) strategic alliance (online) http://www.investopedia.com/terms/s/strategicalliance.asp (Accessed on November 12,2013)

3.      Wikipedia (2013) organic Growth (online) http://en.wikipedia.org/wiki/Organic_growth (Accessed on November 11, 2013)