MoC WEEK 3 - INTERNAL AND EXTERNAL FORCES OF CHANGE_Students_92f2157c39c118968b0968bf5320f3b7
Page 1: Introduction to Change Management
Overview
Course Title: The Management of Change
Institution: Mona School of Business & Management
Academic Year: Semester 2 2024-2025
Page 2: Learning Objectives
Objectives
Analyze the reasons for individuals’ unwillingness to change as shown in the ‘Who Moved My Cheese’ short film.
Discuss the internal and external factors responsible for an organization's need to change.
Page 3: Diagnostic Stage of Change
Key Components
Video Resource: "Who Moved My Cheese"
External Forces: Factors causing organizational change
Internal Forces: Factors within the organization contributing to change.
Page 4: "Who Moved My Cheese?"
Questions for Discussion
What issues are identified in the video related to change management?
How do characters in the film respond to change?
Page 5: Relationship Between the Environment and Organizational Change
Global Environment (Uncontrollable)
Economic Forces: Impact of recession, Brexit, etc.
Competitive Forces: Comparisons like Netflix vs. Blockbuster
Technological Forces: Advancements impacting business models
Natural Disasters: Effects of hurricanes, earthquakes, etc.
Domestic Environment (Uncontrollable)
Political/Legal Forces: Changes in ruling party policies
Competitive Structure: Dynamics in industry competition
Economic Climate: Local economic factors affecting business.
Page 6: External Factors that Cause Organizational Change
Economic Forces
2007/2008 Recession: Various case studies
Amazon: Revenue growth through Kindle.
Ford: New brand establishment amidst crisis.
Chrysler & GM: Struggles leading to bankruptcy.
Domino's: Success through recipe overhaul.
Lego: Growth through targeted advertising and expansion.
Page 7: Economic Forces during 2007/2008 Recession
Study Cases
Amazon increased international sales of the Kindle amidst recession.
Page 8: Ford's Response during the Recession
Key Strategies
Successful establishment of new brands (Taurus & Focus).
Utilized a $23.6 billion loan to navigate financial challenges before the crisis hit.
Page 9: Domino's and Lego During the Recession
Market Changes
Domino's: Adjusted their recipe to attract clients as an affordable option.
Lego: Increased play in Europe and expanded in Asia through celebrity endorsements.
Page 10: Challenges for Chrysler and GM
Consequences of the Recession
Consumers shifting loyalty to Ford.
GM declared bankruptcy and received a government bailout.
Chrysler required federal loans and merged with an Italian firm to survive.
Page 11: Competitive Forces in the Market
Case Study: Netflix vs. Blockbuster
Blockbuster's bankruptcy in 2011 due to competition from Netflix and Hulu.
Netflix's subscriber growth is notable, matching Canada's population.
Technological leverage eliminated traditional brick-and-mortar presence.
Page 12: Competitive Forces in the Soft Drink Industry
Impact of Competition
The Pepsi Challenge: Led Coca-Cola to reevaluate its consumer engagement.
Issues arose when consumers rejected the new Coke product due to lack of attention to preferences.
Page 13: Natural Disaster Forces Affecting Organizations
Analysis of Impact
Natural Disasters: Hurricanes, earthquakes, and diseases (e.g., COVID-19).
Discusses the costs and physical damages to property affecting organizations.
Page 14: Internal Forces in Organizations
Factors Impacting Change
Organizational structure, employee mindset, skills, and turnover.
Page 15: Factors of Internal Organizational Change
Key Categories
Organizational Structure
Type of Organization
Employee Mindset
Technological Resources
Financial Capabilities
Page 16: Visual Representation of Organizational Structure
Hierarchical Breakdown
Structure may include a CEO, managers, foremen, and various levels of employees.
Page 17: Understanding Organizational Structure
Importance
Explains the coordination of work and connection of tasks in an organization.
Different structures facilitate varying degrees of efficiency in response to environmental changes.
Page 18: Key Aspects of Organizational Structure
Detailed Concepts
Centralization/De-centralization: Decision-making model.
Formalization: Documentation of rules and policies.
Chain of Command: Hierarchy within the organization.
Departmentalisation: Arrangement of tasks into departments.
Page 19: Centralization vs. Decentralization
Discussion Points
Examination of which structure may be more efficient based on organizational needs.
Page 20: Formalization in Organizational Structure
Effects of Formalization
Enhances consistency and predictability but may curb innovation and job satisfaction.
Page 21: Chain of Command and Hierarchical Structures
Types of Structures
Tall Structures: Numerous management layers.
Flat Structures: Fewer management levels for easier communication.
Page 22: IKEA's Organizational Structure
Hierarchical Overview
Breakdown of IKEA's organizational structure as an example of effective management.
Page 23: Departmentalisation in Organizations
Types
Functional: Grouping similar jobs.
Divisional: Departmental separation based on services or location.
Page 24: Activity Structures
Overview of Organizational Activities
Discussion of how activities are structured to promote efficiency and responsiveness.
Page 25: Internal Forces related to Type of Company
Key Considerations
Industry needs, size, culture, and product types, including environmental regulations (e.g., bans on plastic).
Page 26: Employee Factors in Organizational Change
Considerations
Mindset: Openness to change.
Skills Set: Required training and development.
Turnover Rates: Impact of employee transitions on change management.
Page 27: Technological Influences on Change
Technology's Role
Adopting new technology vs. removing outdated systems to maintain competitive edge and reduce costs.
Page 28: Financial Capabilities in Organizations
Financial Strategy
Focus on increasing revenue, promoting efficiency, and driving growth to support change.
Page 29: Case Study Preview
Next Class Discussion
Title: "Huawei: An Exemplar for Organisational Change in a Modern Environment" by Zhu and Jones, 2014.
Preparation for an in-depth case study analysis in the next class.