Discuss about changes for Savile Group……………………………

Discuss about changes for Savile Group……………………………

TABLE OF CONTENTS

TOPIC PAGE

EXECUTIVE SUMMARY………………………………………………3

INTRODUCTION……………………………………………………….3

LITERATURE REVIEW………………………………………………..3

METHOD…………………………………………………………………6

RESULTS/FINDINGS…………………………………………………10

DISCUSSION/ANALYSIS…………………………………………….10

EVALUATION………………………………………………………….10

CONCLUSION…………………………………………………………11

RECOMMENDATIONS……………………………………………..11

REFERENCES…………………………………………………………..12

EXECUTIVE SUMMARY

The Savile Group is facing a challenge on its reorganisation due to increased competition and condensed market share for its products. The firm must implement the relevant diagnostic and change models to ensure the competitiveness of its products in the market. It should reorganize the main product lines that are under threat to ensure the growth of its market share. This is only attainable by adopting a sustainable change strategy that will yield results.

INTRODUCTION

The global business scene has undergone major milestones due to rapid developments in the technological and social scenes. Major realignments are being witnessed as the main industry players seek to preserve their market share. They are adopting many ways to ensure they remain dominant in their industry and it is up to the upcoming businesses to come up with clear business strategies that will effect the desired changes for them to remain competitive in the industry. They must also devise ways to inform the market of the availability of their products and why they should prefer them over the other competing varieties. This study seeks to analyse the underlying problem of competition and product penetration for the Savile group brands and the need for organizational change to combat these challenges.

LITERATURE REVIEW

The Savile Group is facing a complexity of issues due to the various changes that have occurred and continue to occur both in and outside the company. Westover, 2010 says that these changes are usually brought about by technical, political and cultural factors. Technical changes are mainly due to the advancement in the applications and systems used to carry out the various duties. Political changes are due to the influence of power that causes realignments in the business sector and also the allocation of resources. Cultural changes are mainly brought about by people’s beliefs and their values which may alter the cultural diversity and also the demographic composition of society. Wick, 2008, explains that for an organization to remain competitive it must devise clear strategies that will act as a guide in confronting the underlying issues of competition and staff reorganization. This is also exemplified by Nasim, 2011 who says that there is need for the identity of the areas that needs the change and then there should be reviews conducted to assess the necessity for that change. This assessment will involve the company giving its input of the expected benefits if the changes are implemented. The company will be required to give updates on its analysis so that the pros and cons of the impending changes can be weighed and determine the best way forward.

Goksoy, 2012 explains an elaborate process that should be followed in the identification and analysis stages. These are very important stages because they will determine the level of enthusiasm that the impending changes will be received with by the employees of the organization. The company must revisit its mission and vision to see whether the aspired changes are in conformity. This will call for the firm to also reassess the change agents it wants to put into use (Dijan, 2011). The company must get the best so that the ideas and procedures it will put in place can be innovative and ones that will minimise the exposure of the company to risk. The managers will also be required to have clear management philosophy as this will act as the drive towards attainment of these changes. They must be honest with the employees so as to cultivate teamwork (Kathy, 2011). Therefore the management must come up with a common vision for change that is acceptable to all. This will ensure that everybody will be working towards the attainment of the goals and objectives set out in that vision. They will also be expected to offer a strong leadership which will not compromise any of the standards. There should also be clear ways for measuring the success of the implemented changes to gauge whether the company is on the right track. The stakeholders involved in this process will also need to be rewarded to ensure their efforts are being recognized and appreciated. This can be done through monetary rewards or giving certificates of recognition to reward initiative (Khalid, 2011).

As outlined Ozalp, 2012, the process of business process reengineering can be used by companies like the Savile Group to assess and redefine their organizational structure to ensure there is development of the interrelated business segments to attain the desired results. This is mainly due to the realisation of the fact that the competitors are adopting clear procedures to ensure total specialization and division of labour so as all factors that are essential to the production process are optimally employed. This will require redesigning the key procedures and operations in the company to enhance total utilisation of the firm’s capacity and also make sure that all the available resources are optimally employed. The various departments in the company will require to be integrated so that each can set its own targets and be able to measure them periodically to assess reliability. This will call for the use and implementation of information technology (Michael, 2010) to ensure the data the company is relying on is realistic and up to date. The employees must therefore be continuously trained on the latest developments in the technological arena to ensure they are fully armed so that the decisions which they make concerning price suitability and competition are based on the actual market information and it will guarantee results. The company must also devise ways of adding value to the customers who are the final consumers of their products. This can be done through organizing specific customer target drives that will ensure they are rewarded for their continued loyalty to the company’s products (Davies, 2009).

METHOD

In identifying the changes that are required to be implemented the company can use the Business Process Reengineering model (Fredrick 2009). The model consists of various steps as outlined below:

Why is the change necessary?

There must be need for change in the company. All the stakeholders like the directors, employees, shareholders and even their suppliers must see the true need for change in the way the company does business.

Management’s support

The necessity for change must get the top management’s support. As the programme of change is being formalised the management must be involved to ensure they own the decision and also as a matter of procedure. This is because they will play a very important role in the implementation and enforcement stages.

Communication with employees

The need for change must be communicated to all the employees after getting the approval of the top management. The employees will know why there is need for change and the role they will be expected to play in it. They will also be made aware of the benefits they are going to get from it. This will be important in eliminating any sort of resistance that may come from the workers.

What are the objectives?

The objectives that the reengineering process seeks to achieve should be clearly stipulated (Gray , 2010). They should be compatible with the company’s mission, vision and strategy. These objectives will include increase in the product quality, reduction in the costs of production and increase in the market share. How in view of prevailing circumstances, a company can redesign its vision and mission to ensure the success of the reengineering process.

Form a reengineering team

The team that will spearhead the process is selected and the role of each team member is defined. Those selected must be experienced with implementing the process in other areas with proven results.

Determine the scope of the project and also develop a schedule

This will clearly stipulate the areas that the project will cover and the time it will take.

Identify the specific process to be reengineered

This is done and the methods to be used are also determined.

Analyse and understand the process

After identity of the process to be reengineered the team members should study it and understand its shortfalls, bottlenecks and limitations (Brown, 2011). This will ensure the same pitfalls are not repeated in what they will formulate.

Designing the new process

This is done bearing in mind the views of all stakeholders like consumers and their likes and dislikes.

Make use of Information Technology

This will ensures smooth transition from the current process to the new one.

Carry out a pilot test of the process

This will help in identifying any applicability problems and solving them before going to the market.

Carry out training

The employees who will be involved in the daily to daily handling of the process must be fully trained on it.

 

Implementation of the process

The company will be required to prepare and implement a transition plan. The management should decide whether they want the transition to be gradual or immediate.

Monitoring

The process should be closely monitored to ensure it is constantly redesigned to suit the customer’s needs and requirements.

After the company has diagnosed the areas that require change and knowing what to do there will be need to know how the requisite changes will be carried out to achieve the desired objectives. The company can use the Kotters Change Model (Hicks, 2009).

The model has eight steps;

There should be urgency in implementing the changes to attain results
Insist on teamwork by identifying the key personnel who will push the change forward.
There should be a vision for the change (John, 2008). The main values that are central for the achievement of the change should be defined.
The vision should be communicated to all the stakeholders.
Any obstacles identified should be removed.
Report on the short term achievements since starting implementing the change. This will boost morale and expectations will be high.
Build on the already attained results.
The change should finally be incorporated as part of the company’s culture to make sure its permanent.

RESULTS/ FINDINGS

The company will be required to continuously monitor the efficacy of the implemented changes in the areas of prices and product modification to ensure the desired results are achieved. The involvement of all the stakeholders especially the employees and top management will be crucial for the results to be achieved. The firm will be able to identify the main products which are under threat from the competitors and may be design closer substitutes that it will be able to price competitively to guard against its market share.

DISCUSSION/ANALYSIS

The company should adopt a very competitive model for the pricing of its products. However they should not compromise on the quality of the products. They can also seek mergers especially in the Savile brands segment. This will ensure they become the main players in that market. The competitors are small companies who can be acquired without requiring large capital outlays. This will ensure the company will increase its product range and will be able to edge the other competitors. In the outplacement business the company can issue more shares to the public to ensure it has a large capital base to provide more products.

EVALUATION

The changes carried out were effective because of the acceptability they got from the stakeholders and also the wide appeal they generated. The management team and the employees were very enthusiastic about the changes due to the underlying benefits both in the short and long run.

CONCLUSION

There is constant need for companies to carry out studies on the suitability of their businesses to their target markets. This will help them identify the areas that need improvement and the best remedies. In doing this the company will seek to employ known and tested solutions to these problems. This will ensure realisation of set targets and objectives.

RECOMMENDATIONS

The company should be assessing the impact of the implemented changes constantly and devise modifications to them or come up with other new strategies. This is due to the changing market conditions and requirements that the company has no control over. These include inflationary pressures, competing prices and government regulations. The company should therefore carry out market surveys and consult with relevant government agencies before determining the way forward.

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