Week 18

1.       How can using the Change Kaleidoscope and Force-field analysis help an organization to deliver its intended strategy?

Change Kaleidoscope was introduced by Hope Hailey and Balogun in 2002 that helps to find various options and required consideration during change. Various organizations apply this model as it can identify the nature of change and assist in designing sensitive change process.

The change Kaleidoscope contains an outer ring which is concerned with the features of change context that can either enable or constrain change and the inner ring that contains the menu of implementation options open to change agents. (Hope Hailey and Balogun 2002) (www.proworkproject.com)

 Change Kaleidoscope: Organization Contextual Features:

Time:	How fast the change needs to be done?
Scope:	What is the degree of change needed and its effect on the organization, either partially or the entire firm.
Preservation:	What organizational asset, culture, practices and resources should be managed during change?
Diversity:	What is the level of differences among the staffs and their attitudes?
Capability:	What are the competencies of managers and personals to handle change?
Capacity:	How much of resources are available to divert towards change? (finance, human resource and time)
Readiness:	How ready and motivated are the employees towards change?
Power:	How much power is needed to initiate change?

Change Kaleidoscope: The design choices

Change path:	Adaptation, Revolution, Reconstruction and Evolution.
Change start point:	Initiation point of change.
Change style:	Adapting the right management style.
Change intervention:	Setting up the right type of mechanism.
Change roles:	Assign responsibilities accordingly.

Force Field Analysis:

Force Field Analysis was developed by Kurt Lewin during 1940s. It is designed to make the best decision by evaluating the forces for and against the changes. It is a general tool which that frames the problems in terms of factor and support the changes in desired direction.

Change Kaleidoscope: Hewlett and Packard

References:

Force Field Analysis [Online] Available at:  http://literacy.kent.edu/eureka/strategies/force_field_analysis.pdf [Accessed on 28 November 2013]

Jay Deragon 2007. Force Field Analysis. [Online] Available at: http://www.relationship-economy.com/?attachment_id=358 [Accessed on 28 November 2013]

ProWork Project [Online] Available at: http://www.proworkproject.com/prowork/change-kaleidoscope.html [Accessed on 28 November 2013]

Week 17

1.       Can you think of an organization that has implemented a 'high risk strategy' that has resulted in success (why was it high risk at the time and why was it a success- was it good luck or good judgment)?

'High risk strategy' are those strategies that can either make a company very profitable or put it into a dangerous position. In my point of view Samsung has implemented a 'high risk strategy' that led them to success. 

Samsung was founded in South Korea in 1938 by Lee Byung-chul as a Trading company. Now it is a multi-billion dollar company with cell phones, gadgets and technology as its major products. Earlier in 2010-11, Samsung was not able to keep up a good brand image regarding its smart phone market. And at present, it is best known for world's largest mobile phone maker and user friendly technologies. Thus, this is because Samsung always focus on its competitors and never underestimates them.

Samsung's best business strategies:

The Android market:

Samsung managed to apply Google's Android system and generated a smartphone  in the market. It became a huge success and more than 50% of the smartphone market was in its hand which no other companies could achieve. People liked their product as it was flexible and user friendly in comparison to Windows and Apple

Samsung: Brand Image

The branding strategy of Samsung is to improve the product value and in order to do that, they created an identity on the product towards the consumer's mind.  The phones they created under the name Samsung GALAXY have a psychological and qualitative impression in people's mind.  

Price:

Samsung has been able to develop variety of smartphones considering its consumers of different class. They have kept the price in such a way that everyone can experience the services it provides. The low prices Samsung mobile like Samsung Champ and Samsung Galaxy Young are targeted for the South Asian market and this has become a huge success. Thus, the company literally knows its customers and their wants.

Design:

The design of the phone is a big touch screen one. Hence, the market liked the idea of carrying a big flat touch screen phone and it also helped Samsung to compete with Apple.

Thus, Samsung has the courage to apply new strategies to develop their new product and introduce in the market with success.

2. Now, do the same for an organization who embarked on a high-risk strategy that resulted in some sort of failure (why was it high risk and why did it fail – bad luck or poor judgment?)

In my point of view, Kingfisher Airlines is one of the examples who embarked on a high-risk strategy which resulted in failure. 

Kingfisher Airlines was set up in 2003 but hasn't seen a single year of profit since it got listed in 2006. (The Hindu)

 Kingfisher Airlines is an Indian based company established in 2003. In 2005, it became the first    and only company to order Airbus for over $3 billion. However, the company is dealing with its financial crisis in recent years. In 2009, November 4, Kingfisher reports a net loss of Rs. 418.77 crore during the second quarter of the fiscal. Its income from operations also declines by 13.6 per cent during the quarter compared to the same period last year. In view of the huge losses  and capacity reduction, Kingfisher decides to lay off nearly 100 pilots. The air-carrier later hiked fuel surcharges . (The Hindu Online April 24 2013)

  The market share of the company went on decreasing and its debt increased up to Rs 6,500 crore in 2012. 

Some of the major factor for the company to fail are:

·         Strategy to apply low cost model. This changed the brand image of premium business class airline.

·         Lack of focus to the consumer needs and requirement.

·         Lack of managerial authority.

·         Economic crisis: Increase in fuel price and depreciation in Indian currency.

 Thus, the Kingfisher Airlines suffered heavy loss due to its risky strategies

References:

Branding Strategy of Samsung [Online] Available at: http://sales-management-slides.com/branding-strategy-of-samsung/ [Accessed on 25th November, 2013]

Samsung's Android success story [Online] Available at: .  http://www.zdnet.com/samsungs-android-success-story-7000007470/ [Accessed on 25th November, 2013]

Seeking Alpha. Samsung's new strategy is a worry for Apple Nov 13 2005 [Online] Available at: http://seekingalpha.com/article/1860001-samsungs-new-strategy-is-a-worry-for-apple [Accessed on 25th November 2013]

The Hindu. Kingfisher Airlines Crisis: Timeline [Online] Available at http://www.thehindu.com/business/Industry/kingfisher-airlines-crisis-timeline/article4636635.ece [Accessed on 25th November 2013]

Week 16

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

Organic Growth:

 It is more like a "do it yourself" method where a firm can enhance its capabilities internally. Opposed to mergers and acquisitions, organic growth can be created within a business, for example:

·         by creating new products and sales,

·         increasing in market shares,

·          proper resource allocation,

·         new location for the business,

·         internal investment in research and development. (qfinance.com)

Mergers and Acquisitions:

 Mergers refers to negotiation of two companies to form a new business entity by sharing the capital and exchanging the shares for the new formed firm.

Acquisitions means where one company is completely absorbed by another company by buying most of the stakes.

Strategic alliances:

It is a contract between two or more companies to pursue a set of unanimous objectives while staying as an independent organization.

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

a) Organic growth: Apple is committed to organic growth by reinvesting its profit. It has become one of the top and richest brand around the world.

b) Merger and Acquisition:  Disney and Pixar is one of the best example for mergers and acquisition. The merger of legendary Walt Disney and "Everything we create kids adore" Pixar was a match in cartoon heaven. (rasmussen.edu)

c) Strategic Alliance: In 2008, PepsiCo Foundation and Water.org began working together to bring access to clean water and sanitary toilets to people in need.  (water.org)

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

Britvic plc is one of Europe's leading soft drinks companies, with an enviable portfolio of market leading brands, such as Robinsons, J₂O, Tango, etc in GB, Ireland and France. (britvic.com) 

 A.G. Barr plc, also known as Barr's is a soft drink manufacturer in Scotland. Its famous products is Irn-Bru.

Merging between these two companies founded Barr Britvic Soft Drink plc where Britvic owns 63% and AG Barr 37% of shareholders with the annual sales of  £ 1.5 billion employing around 4,300 staffs.

             Barr Britvic: Benefits

·   Barr Britvic soft drink is likely to get consumer loyalty and market share from the mergers.

·    Both the companies gets to have a new product in their portfolio.

·   Being in the same industry, their resources and technology can be shared and utilized more effectively.

·       Capital is shared and risk is minimized.

Barr Britvic: Disadvantages

·         Chances of job cut offs due to redundancy. 

·         Loss, risk and debts faced by one company might be a heavy burden to another.

·        Company must be careful about consumer sensitivity. Consumer may not like any one of the company and thus, the company loses its customer.

·        There might be clash between the managers. The two mergers are facing some problems of their own. They are not being able to agree upon same terms. Likewise, Shares in Britvic, which have risen almost 74% over the past years, were down 2.3 percent while Barr shares were up 1.6 % at 1432 GMT. (British time)

Suggestion to the new board

·         They can control their cost by reducing unnecessary expenses.

·         There must be a good coordination and communication between the management teams and gain comfort and mutual trust.

·        They must keep an effective communication with their customers mainly through advertisement. 

 References:

Britvic Company Profile [Online] Available at: http://www.britvic.com/company-profile.aspx [ Accessed on 14th Nov 2013]

Britvic, A.G. Barr merger deal collapses [Online] Available at:

  http://uk.reuters.com/article/2013/07/11/uk-britvic-agbarr-idUKBRE96A0MM20130711 [Accessed on 14th Nov 2013]

Mary DiMaggio. Top 10 best and worst corporate mergers September 15 2009 [Online] Available at http://www.rasmussen.edu/degrees/business/blog/best-and-worst-corporate-mergers/   [Accessed on 14th Nov 2013]

Qfinance Newsletter. Organic Growth. [Online] Available at http://www.qfinance.com/dictionary/organic-growth [Accessed on 14th Nov, 2013]

Strategic Alliances [Online] Available at: http://water.org/about/strategic-alliances/ [Accessed on 14th Nov 2013]