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Change Management Intervention Proposal

Change Management Intervention Proposal

Name

Course

Institution

Instructor

Date

Change Management Intervention Proposal

Background

American Building Company (ABC) Steel Company is located in Houston Texas in the United States. The company deals with steel making. It is worth noting that the company has operated its businesses for more than 70 years. The company was founded in 1947 as Steel Builders Inc. and renamed ABC in 1964. The company is among the leaders in technology, longevity, quality steel buildings, and design. The company has employed more than 335 employees. ABS steel is the largest and most experienced manufacturers of custom metal building systems. The company is able to service customers in North America and beyond because of its authorized builder network. These have been one of the advantages of American Building Company. The company has grown over years because of entrepreneurial drive and culture.

Globally, the company is a leader in steel technology, which continues to give them an advantage over other competitors. Within the building industry, the systems, engineer works, and the metal building has proved to be sustainable. ABC Steel is a company that has expanded the builder network and has over 1,000 design-build contractors. Their services extend across the Caribbean, the United States, and Canada. However, the company tends to have failed to meet various targets and objectives because of workforce-related problems and production backlogs. It means that the departments in the organization need to improve and the problem solved. The proposal is a streamlined focus on American Building Company Steel and identifies various areas that need improvements to meet its consumer needs.

Organization challenge

Human resource is one of the critical components in every organization. ABC Steel seems to be having problems with the various operations in a different department, which are linked to professionalism. For example, there are issues that tend to hinder the success of the organization and need to be corrected. For example, the professionalism-related issues include disciplinary problems of employees in the company and shortage of skilled manpower within the various departments and areas of operations. There is a need to implement various changes that will enhance the human resource component in the organization. The human resource improvement will go a long way in improving customer services and production processes (López-Cabrales, & Valle-Cabrera, 2019).

The market continues to be competitive, while means that the company should be up to date in its operations. The company has numerous projects as it continues to expand its operations and design development. One of the projects is the Lead Generation strategy, which is aimed at enhancing substantial growth in the company. Other projects include panel selection charts, custom steel building, as well as panel profiles. Lack of professionalism could adversely affect the operations and lead to failure in numerous internal projects. On the same note, poor customer service tends to reduce customer loyalty, which is one of the threats the company is facing at the moment. To improve, the company need to enhance professionalism and improve their human resource. Analytically, the ongoing projects and expansion will affect every department at ABC Steel.

The critical part to improve is customer relationship management. It is because they are the key stakeholders who are in contact with customers. The approach that they will use in handling the customers should be professional. Lack of professionalism will continue to threaten the company because the customer loyalty base will decrease. It is unfortunate for the company to face decreased customer loyalty because of a lack of professionalism in customer relationship management. The company is supposed to combine its strategies, policies, as well as technologies to analyze and manage customer interaction. Customer retention is a key component of customer relationship management. Customer feedback is a critical tool that will make the customers understand their needs and problems. Customer satisfaction can be achieved by interacting with the customer through email, telephone, website, and other communication platforms used by the company (Cummings, & Worley, 2019).

In this case, answering customer’s questions and responding to customer complaints should be professional. It means that the company should implement changes in customer approach in feedback, complaints, and questions. There are several issues that the organization needs to undertake to solve the problem, which include employee empowerment, training, reorientation in relation to changes, and provision of consistent support.

The magnitude of the problem is bigger at ABC Steel and requires an urgent response. There is a need to improve customer relationship management to ensure employees are comfortable and confident when approaching the customers. The changes and solving the problem will enhance production in the company and make the company enjoy a competitive advantage in the steel industry. The customer will be able to receive immediate assistance and response.

Change agents and stakeholders involved

The change agents involved play a key role in determining the outcomes and success of the project. One of the key stakeholders in the organization and change agents in the consultants. As a consultant in change management intervention, ABC Steel needs my expertise and understanding. Also, the intervention that has been selected focus on key stakeholders of the company. The change agents and stakeholders include the customers and the staff at the departments (López-Cabrales, & Valle-Cabrera, 2019). These stakeholders are key to the human resource component in the organization. The intervention strategy will not happen if the stakeholders are not part of it. For professionalism to be achieved at ABC Steel, employees should be trained on the best way to approach the customers. Also, the customers are important in the change process because of their feedback. They should feel part of the change process. Customer relationship management is achievable with the support of the above-mentioned change agents and stakeholders.

Proposal change model

The change model has democratic and fundamental values that promote the development and growth of people in the organization. Analytically, the issues of change in the organization are linked to human resources at ABC Steel. The improvement in the organization is guided by the change model. There are four major theories of organizational change that can be applied to the ABC Steel proposal. These models include the positive model, continuous change model, action research model, and three-step change model (Cummings, & Worley, 2019). The continuous change model is applicable in the case of ABC Steel. The model is a response to how the organizations need to adapt to the current environment. The problem of professionalism and customer satisfaction is a result of applying traditional strategies and a lack of current skills. Through the model, it is possible to comprehend the company problem and provide solutions. The organization needs to prioritize and coordinate the changes in relation to professionalism. Also, the change requires resources and time, which are come of the key components under the continuous model of change. The model address the dynamic change requirements in the company (Cummings, & Worley, 2019). The first step under the model is discovering, which brings together all the stakeholders in solving the problem. It is important for all agents to comprehend the challenges and trends that the organization can face in the future. At this step, the organization can adapt and implement changes.

Designing is the second change activity that the company should undertake. It entails understanding the organization’s design elements, strengths, and weaknesses of various strategies applied by the company. The interventions are key change initiatives, which include training of staff members at ABC Steel. The model focuses on the present diagnostic focus and the future-oriented visionary focus. The continuous change model applies tailoring as the activities to be applied. ABC Steel will focus on customizing activities through pieces of training and good communication. The organization is changing but there is a need to coordinate and assemble all the activities. The final activity is assessing the process of change. There are necessary adjustments that ABC Steel need to make under the proposed changes. The assessment entails feedback from the customers and surveying of stake does to determine their judgment and support. The support of stakeholders and agents of change is important. The application of the continuous change model in solving the problem will have better outcomes over time (Cummings, & Worley, 2019). The organization has the opportunity to change in various ways and learn how to change continually.

Proposed diagnostic model

Diagnosing is s stage on planned change that focuses on understanding organizations’ problems and positive attributes. The diagnostic model for analyzing problems involves various activities that are crucial to organizational development (Cummings, & Worley, 2019). ABC Steel needs to choose the best diagnostic model for understanding the organization and analyzing feedback information from the stakeholders, who are majorly the customers in this case. Open System Model is the best for ABC Steel. The model is beneficial because it recognizes that the organization is a large environment that several stakeholders interact. The model focuses on the environment, which entails the inputs, transformations, and outputs. The diagnosis of the organization focuses on the organizational level, group level, and individual level. The group-level diagnosis is critical in this case because the proposal involves several stakeholders working together. There are inputs, design components, outputs, and rational fits for the diagnostic model (Cummings, & Worley, 2019). Culture and design are crucial components under the diagnostic model. The use of this model will ensure that processes, human resource systems, and management processes are embedded in solving the problem at the company. The design components are crucial because they will focus on the goal clarity, task structure, performance norms, team functioning, and group composition (Cummings, & Worley, 2019). All these components are relevant in solving the problem at ABC Steel. Analytically, ABC Steel requires training, empowerment, and development of employees. The design plan focuses on the training of employees in different departments under customer relationship management. The process should be continuous, which is achieved by hiring experts who can train employees on the various components of customer satisfaction and interaction. Immediately after the hiring process, all employees should be trained. The training modules should be updated to meet the current human resource needs and the dynamic nature of consumer behavior. The design plan will be streamlined towards individual and group models. The group and individual strategies are meant to improve the s functional nature of all the departments. CRMs under the group model empower employees in the decision-making process.

Plan for implementing change

Implementing change is crucial in ensuring that the results and goals are achieved. If the plan is not implemented then it will never be realized (Wilton, 2016). ABC Steal needs to implement the proposed changes to achieve its goals and objectives. As the consultant of that company, it is critical to update the training modules to align with the current employee needs. Since the problem entails professionalism, the human resource should be improved. Data collection and analysis are key at the company. The process of collecting data will be through observation. How the employees approach and communicate to customers can be observed and recommendations made. The emails will provide more information on questions that customers ask. As a consultant, quarterly meetings and meetings when the need arises will be part of ABC Steel operations. The training will CRMS operations and training will align with rising issues from the clients.

Conclusion

From the proposal, it is evident that ABC Steel is a Largent manufacturing company in the steel industry globally. It means that the company needs to maximize its opportunities and strengths to achieve a competitive advantage. The company is able to service customers in North America and beyond because of its authorized builder network. However, the company is facing a challenge with decreasing customer loyalty, which is attributed to a lack of professionalism. The proposal has looked through the customer response management department and the need to improve. All stakeholders should be involved in implementing change in the organization. The proposal will make the organization increase customer loyalty and productivity.

References

Cummings, T. G. & Worley, C. G. (2019). Organizational Development & Change (11th Ed.). California: Cengage Learning.

Johannsdottir, L., Olafsson, S. & Davidsdottir, B. (2015). “Leadership role and employee acceptance of change: Implementing environmental sustaimability strategies”, Journal of Organizational Change Management.

López-Cabrales, A., & Valle-Cabrera, R. (2019). Human resource management at the crossroads: Challenges and future directions. Cambridge: Cambridge Scholars Publishing.

Wilton, N. (2016). An introduction to human resource management. London: Sage.

Advantages and disadvantages of celebrity endorsement of celebrity in marketing

Advantages and disadvantages of celebrity endorsement of celebrity in marketing

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Course

Lecturer

Date

Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. He has been the celebrity marketer for sports and Shoe Company known as NIKE. Since the year 1996, Tiger Woods has been the NIKE celebrity endorser and year by year he has still been able to maintain that position (Egan, 2008). The company’s manager states that the company is humbled and thrilled to still be in partnership with Tiger Woods, who has been the company’s product promoter for years, through a contract that was signed recently. Despite his marriage issues that went public in the year 2009, NIKE stood by him and as long as he kept winning on the course, his portfolio regained its stature with time. Around that period many companies distanced themselves from Woods but experts had predicted that his reputation would go back to normal with time. Currently companies such as EA sports and Rolex are seeking for contracts with him so as to market their products. Many retail companies use celebrities to promote their products with the main reason being to earn trust and credibility of products and services. The main objective of any business is to make a profit and this is only achieved through the maximum sale of products and attracting of customers (Egan, 2008). This therefore raises concern within the business marketing sector, is it advantageous for the company or disadvantageous to have a celebrity market their products or services? Below are the advantages and disadvantages of using a celebrity as an endorsement to the company’s products.

Advantages

It will help build product credibility

When a company starts producing a new product, the use of a celebrity to promote those products helps build trust between the company and the customers. If the market for a certain product believes in a certain celebrity the highest probability is that they will trust in the product the celebrity is endorsing. When NIKE signed a contract with Tiger Woods to promote their sportswear, the company’s product which includes caps, T-shirts, bands, shoes, and track suits; the products earned the trust of many athletes from different categories of sports including tennis, athletics, and basket-ball (Koekemoer, 2004). When potential buyers of a product see a certain celebrity using a specific product, they believe that the product is of high quality and when they use it they perceive to be as important as the celebrity if they idolize him or her.

It can help a company recover its image

In several occasions a company may lose its credibility in the market due to various company flaws. However, by the use of a celebrity to promote its products a company can get back on its feet once again. For example, a company may be involved in legal issues or bankruptcy which may lead to loss of customers and their faith in the company; with the use of a celebrity to promote the product the company is able to build its rapport. Finally it is able to attract its customers back and attract more.

Helps compensate on innovation

An entrepreneur may lack the ideas to add quality to his or her product but through advertisement and celebrity endorsement, the product gains credibility in the market. For example, several sports companies sell and produce the same products NIKE does and this causes high competition between NIKE and other companies. However, through the use of sports celebrities such as Tiger Woods and Michael Jordan the company has managed to outstand in the market share; their products are mostly used because the customers identify the company with these celebrities (Smart, 2005).

It helps in delivering the message to the public

Advertisement is the only major way a company can promote its products or services. This activity involves letting the audience know the name of the product, what it is, what it is used for and also gives information on the benefits of using that product. How this information is conveyed to the public determines if message has been delivered or not. Through the use of an idolized celebrity in advertisement of the product high chances are the audience will take interest on the product. When NIKE uses tennis champion Vanessa Williams to advertise their rackets and sportswear the audience gets attracted to the product and they want to try it out. The customers will buy the products in order to see whether what they have learnt about the product is true. This signifies that the message was received by the customers.

The above points are advantages of using a celebrity in promoting products, but on the other hand several disadvantages come with the use of celebrities in product marketing. These include;

The image of the company may be ruined if the celebrity’s image is.

The reputation of a company may be destroyed as a result of celebrity scandals. When Tiger Woods was involved with several sex scandals and cases of infidelity, his reputation changed for the worst and many people viewed him negatively. Other companies such as General Motors and Gillette withdrew from him but NIKE stuck with him. They faced consequences because customers withdrew from buying their products and the public viewed them negatively. Through such instances the use of a celebrity becomes a disadvantage to the company and the consequences pose a great threat to the company.

The popularity of the celebrity may cause trust issues with customers.

At the height of his popularity and fame due to golf, Tiger Woods had signed up for several product endorsements for many companies (McDonald, 2002). The public may see this as just a way for the celebrity to make money and the credibility of the product may suffer due to this; customers may doubt the quality of the product and this would be bad for business. Through this, the use of a celebrity may have a negative impact on the product market as it may lead to customers refraining from the use of the product.

The celebrity may overshadow the product.

When a celebrity features in several advertisements involving different products, the audience may get carried away and forget the main thing, which is the product, and focus only on the celebrity. For example, when Tiger Woods takes part in the advertisement of NIKE’s products, General Motors, Rolex, and Gillette; the audience gets lost and forgets what products are being promoted and focus on the celebrity only because that is the only constant feature (McDonald, 2002). Through this loss of information about the product’s name and its use leads to poor performance in the market.

When a company decides to involve a celebrity in its advertisements and in product or service marketing, there is a greater advantage to it than disadvantage. However, despite having minimal disadvantages they still have a great impact on the product or service. As a company it is recommended that certain aspects should be examined before signing up for celebrity endorsement of products.

References

Egan, J. (2008). Marketing communications. London: Thomson.

Koekemoer, L., & Bird, S. (2004).Marketing communications. Lansdowne, South Africa: Juta Academic.

Smart, B. (2005). The sport star modern sport and the cultural economy of sporting celebrity. London: SAGE.

 McDonald, D., (2002). “An examination on multiple celebrity endorsers in advertising”, Journal of Product & Brand management, Vol. 11, No.1, pp. 19-29. 

Movie Industry A and B

Movie Industry A and B

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Institution

Abstract

The ascendancy of the movie industry has been the subject of copious studies. It provides a fruitful research domain for the scholars in marketing and other disciplines. The industry has a high economic importance, which drives the researchers to gather numerous data that covers the entire products. The video viewers then use this information in making comparison of preference across the world.

This thesis reviews the economic, organizational and marketing issues between Movie industries A and B. Further, it utilizes the existing theoretical explanations for acquisition and persistence of the market dominance of their products. It concludes that major theaters ascend in market leadership and supremacy because they develop strategic management capabilities that are superior to the rival firms. It argues efficient marketing procedures create a unifying theory for industry’s enduring dominance because it accounts for the utilization of its resources in establishing the industry for over long periods. Charts, graphs and appendices are utilized to facilitate creation of a strategic analysis on competitive marketing (Rothaermel, 2012).

Introduction

Dominant firms that control the manufacturing sector and the flow of products have a horizontal power which enables them to leverage their positions to manipulate industry prices to their advantage. As long as sufficient demand exists, and only a few manufacturers controls supply, then manipulating industry prices will be easy. Vertical power exists when the dominant firm is vertically integrated and operates in two or more industry sectors. Production, distribution and retail are conductedwithin accurate thresholds. This strategy based on the vertical power is termed as ‘vertical integration,’ and provides the firm with the ability to erect barriers of entry, shift of the costs and revenues among affiliates in ways to disrupt efficient market operations.Vertical integration is important particularly when a firm seeks to create or exploit market power, or as a defensive move against competitors who possess significant market power or when the industry faces a risky and unreliable market. Alternatively, any emerging company must fast-integrate the market in order for its operations to flourish. Vertically integrated industries succeed by targeting segments where the leaders are weak or do not have full dominance. Consequently, the challengers develop their business to achieve the scales necessary to mount a serious market challenge on a wider front (Rothaermel, 2012).

The measurement of market power is based upon market shares held by industry leaders. The number of shares is proportional to the marketing power of a company. Market share is a comparative measure of firm performance relative to its rivals, and is often calculated on basis of a firm’s total sales or the volume of units sold relative to sales in the market.

Porters’ five forces analysis

This is a conceptual structure, which provides a basis for analysis of industry and business strategy.

Threat of entry

The movie market has proved to be profitable to industries actively involved in the business. The essence of profitability will lead to new entrants into the market that essentially leads to disbandment of any monopolistic competition that prior existed in the industry to embody a more perfect competition paradigm in the industry. Movie industries remedy this problem through formation of alliances. The movie industry provides an ideal setting for exploration of the role of strategic alliances. First, alliances in the movie industry are more consistent than in any form of industry. For example, biotechnology industries collaborate at different points of project development, leading to their dominance in the market compared to their rival teams. The boundary of the movie industry is also well established: a movie project has a short-term horizon and a clear starting and end. Conversely, projects in other industries are complex and less distinct or highly interrelated. Still, they have long-term horizons, making it difficult to identify the project boundaries. These features are essential as they provide grounds for analysis of meaningful distinction in the manners of business operations (Rothaermel, 2012, p.215).

Threat of substitute products or services

The existence of substitutes present a threat to dominant companies offering the same product since there is a possibility that the customers can switch to the new product. Movie industry A acts as a threat to Movie industry B by challenging the norm that is digital movie viewership to theatre. Piracy is highlighted as the major threat in the movie industry. It creates substitutes, which meet the need of the customers in an equal way to the genuine products. This limits the ability of the industries to raise the prices, which could lead to drifting of customers.

Power of suppliers

Suppliers that have autonomous mandate to the market input use this power to their will in defining their terms of compensation for provision of the good or service. Such suppliers may choose to levy high prices in return for offering goods or services unique to them. Movie industries share this bounty by having the privilege to dictate terms of service provision. In the previous year’s Movie industry A, the number of admission grew at much lower rate of 5% from 120 million to 420 million. The exhibition industry responded by lowering the number of screens from its peak of 500 million in 2000 to 420 million in 2002.

Rivalry

Competition is a common aspect of any market hence the defining aspect in the measure of rivalry is in the measure of the competition intensity between two industries. The difference in profitability is assessed along the number and size of the competitors, similarities and differences in products and services offered, and the height of entry and exit barriers, and the scale of economies. Notably, theater’s profitability would increase by 40% by running manageable exhibitions for a long time, and by procuring movies from larger set of movies running in the country over the same period.

Power of buyers

Customers also hold the ability to dictate terms concerning the nature of output by them having the capability to hold a company under pressure effectively dictating terms such as price set by the firm. Movie industries in most cases deal with the problem by endorsing schemes such as loyalty programs that restrain the customer powers. Perfect competition rule states that if there are many small firms in an industry, the industry is fragmented and exhibits low average profitability. If there are only a few large firms in an industry, this industry structure is more favorable and can exhibit higher industry returns. Moreover, the bargaining power of buyers can put on the seller’s company’s margin through demanding a lower price and a higher product quality. As result, strong buyers could reduce the company’s revenues (Rothaermel, 2012).

Analysis of industry A

Theatrical exhibition landscape is comprised of major theater chains and independent exhibitors. The movie industry has been over-screened. This means that the size of the movie-going population is not proportional to the number of theatre screen in the world. For instance, an examination of the total number of screens and theaters in this industry suggests that the movie industry started upward adjustment of the total number of screens in the year 2002. The growth rate between 1998 and 2000 (8%) and between 2000 and 2002 (9%) are lower than the corresponding growth rates in terms of the number of admissions (10% in 2002 and 2005, and 12% between 2005 and 2008).

By econometric modeling, it occurred that the relationship between screens and revenues for movies released in 2000 and 2002 was concave for the residents, but convex in international markets. Again, this concept was in line with the idea that the foreign market was under-screened while the internal market was over-screened.

Dominance of Industry A in 2002

Market Studio share market Rest of the industries Market share Annual cinema admission Average ticket price U.S.$ Annual Box Office U.S $ billion

1998 India N/A N/A 120 million $ 0.35 $ 0.21

1999 China 54% 46% 220 million $ 1.23 $ 0.59

2000 Europe 80% 20% 500 million $ 5.45 $ 1.045

2001 Japan 75% 25% 350 million $ 11.75 $ 7.85

2002 U.S 78% 22% 420 million $ 2.85 $ 1.05

Analysis of industry B

The profitability structure of this industry is more favorable than those of industry A. For example, the average rate of return on invested capital for the period between 2006 and 2008 was 20.6%, 3% more than what was realized in Industry A. The top five-exhibition chain including Regal Entertainment Group, AMC Entertainment, Carmike cinema, Cinemark and Lowes accounted 45% of the total number of screens in the market. It was conceivable that the movie industry would become even more concentrated in future, with countries such as U.S, Europe and China leading in the market.

Dominance of Industry B in 2008

Market Studio share market Rest of the industries Market share Annual cinema admission Average ticket price U.S.$ Annual Box Office U.S $ billion

2004 India N/A N/A 110 million $ 0.45 $ 0.25

2005 China 64% 36% 210 million $ 0.23 $ 0.39

2006 Europe 70% 30% 400 million $ 6.45 $ 0.045

2007 Japan 85% 15% 380 million $ 4.75 $ 5.85

2008 U.S 68% 32% 112 million $ 1.85 $ 2.05

Summary

The difference between the performances by these industries was attributed by a safe bet in the products and the consumer’s preference. Industry A had a lower standard deviation of the rate of return (1.64) compared to that of Industry B (2.21). When the PG rated movies are removed from the market, the difference in rate of return between these two companies will be statistically significant at the level of 4%.

High skewness indicates that the number of successful projects drives the success of each category, whereas low skewness indicates relatively unpredictable symmetric distribution. Very high skeweness indicates that the success is driven by the incompetence of the rival company.

Conclusions and recommendations

In most cases, companies concentrate on improving their profits in bid to remain successful. However, it does not happen automatically. Indeed, further improvement is required for the company to par its performance. It is therefore importance to consolidate different strategic skills in sustaining performance, both internally and externally.

It is important to measure the percentage output of a company from the inputs invested in the production of its export commodities. Such a strategic vision is efficient in determining the performance of a company in a given period. Moreover, this move will enable creation of a scorecard related to the entire performance of a company compared to that of the rivals.

Company should benchmark on their facets and profits. It is a fast track solution to unearthen the threats to the performance of a company; including the policies and the production processes that should be altered. A high growth niche is also commendable as it will lead to assimilation of the competitive products in the market. Some of the products in the market may be differentiated into different brands to increase the profits (Rothaermel, 2012.

The six sigma theory stresses on improvement of company’s infrastructure, thus reducing the barriers of a health market. The management should also focus on what the customers require. This resonates with the operating models and the products required in production of high quality goods. Redesigning could promote opening of new market channels.

References

Rothaermel, Frank. (2012). Strategic Management: Concepts and Cases. Irwin Professional Pub

Appendices

Appendix 1

Comparison of standard deviations

variable Std.dev (variable =1) N Std.dev (variable=0) Differences in std.devp-value skewnessPG-rated 0.9563 54 2.453 -1.6754 <0.0002 0.453 Sequel (a) 1.976 45 2.465 -0.241 0.1243 0.243 Sequel (b) 1.5634 65 1.976 -0.0243 0.215 0.432 R-rated 2.765 50 2.876 -0.234 0.142 1.542 G-rated 0.6464 55 2.789 -0.452 <0.0001 2.487 Pg rated or Sequel 1.0008 80 2.325 0.3065 <0.0001 0.985