Samsung Analysis: Porters Five, SWOT and PESTEL

Samsung Analysis: Porters Five, SWOT and PESTEL INTRODUCTION Samsung electronics Industry Corporation was created in 1969 as a division of Samsung group, and the name of corporation was changed to the current name which Samsung electronics in 1984. Mainly it manufacture and exported electronics products, which include color TV, electronic calculator, electronic watch, electronic cash registers, as well as electronic home appliances such as refrigerators, air conditioners, washing machines, an also telecommunication devices. Especially, it recorded the outstanding number of manufacturing black and white TVs which was going up above 10 million and took top of the world in terms of export of black and white TVs. It succeeded to develop super mini VTR (8mm) in 1983, started to export VTR in 1985, and merged Samsung semiconductors and telecommunication cooperation in 1988. Since then Samsung electronics has dramatically grown as one of the worlds leading electronic giant with branches all over the world. Now millions of Samsung electronic products are being manufactured and sold every day and its product is seen in almost every house around the world. Samsung electronics has one of the best inventory management systems, supply and distribution chain in the world and its products are unique and durable with dedicated, efficient work force. Also, its research and development department is second to none in the electronic industry hence we decided to carry out this in-depth analysis to access the various strategies they have being applying since their existence and to advise them on the possible strategic options available to them now and in the future. ENVIRONMENT ANALYSIS Industry Analysis Porters Five Forces Analysis (http://www.masslearning.com/) Michael Porter stated that for any business entity there are 5 forces in action, these forces can have a great influence on the current affairs and strategy of the business. These forces consist of the following factors. Buyers power Buyers are the driving force of any industry including the automotive sector. Buyer behaviour is an essential part of marketing strategy and in-depth studies and research have been conducted to try to understand buyer behaviour. Typical question to ask when considering buyer behaviour are, who are our buyers? How do they buy? When do they buy? Where do they buy? Why do they buy? For Samsung electronics the brand strength allows them to make radical changes as they have a large base of loyal customers (due to an long history of building quality electronics), this has been evident with the radical exterior design changes to the Samsung product line up. Thus Samsung can be considered as a trend setter in their respective markets. This is a powerful position as it allows for some control of the direction of the future markets and trends. But strong competition from their rivals ensures that the changes arent too radical as they may lose customers to their opposition. Suppliers power Suppliers are the foundations of any industry they can supply raw materials, labour components and other supplies. Therefore it is important that a business has a good healthy relationship with its suppliers to ensure that it can operate smoothly and efficiently in cohesion with its suppliers. The power of suppliers varies depending on certain factors, for example if the product is standardised then the supplier will be weak, an example of this in the electronics industry would be silicon manufacturers. There are many to choose from and product diversity is relatively low thus suppliers are weak in this market. Suppliers are more powerful when they provide a more specialised product. Samsung has a technologically advanced component with existing patents, so in this case the supplier has more power in the relationship then in the case with silicon. Threat of Substitute products A substitute product is a product in another market which poses a threat because it is potentially a substitute to your product. A substitute (product) can negatively affect the ‘price elasticity of your product since more substitutes become available the demand becomes more elastic as customers have more alternatives a close substitute product constrains the ability of firms in an industry to raise prices. In the electronics industry substitute products will include other similar products from other manufactures. The threat of substitutes in the electronics sector is increasing since the consumer are being motivated by both social responsibility and legislation to find alternative manufacture that meets their criteria to reduce the affect of global warming energy consumption . Legislation in the UK such as high charging for energy bill also promotes substitutes in to electronic industry so it is a growing threat in this sector. Degree of rivalry Perhaps this is one of the most important of Porters 5 forces, since competition is what tends drives innovation changes in the market since firms strive for a competitive advantage. The intensity of rivalry amongst firms varies across markets. In a market that is saturated rivalry can become fierce as firms compete for the same customers, but in a growing market firms dont need to compete as fiercely as there may have their own growing customer base to which they can cater their product. When considering direct rivals to Samsung such as Motorola and Dell they are all long established in the industry so it is likely that they have coexisted by having disciplined competition and also having a ‘code of conduct between themselves. This is evidence of ‘friendly competition within the automotive sector. Barriers to entry This relates to how easy it is to enter the market place, this force has only negative implications on current market competitors since the easier entry into a market is the more competitors there potentially is. But usually there are legal requirements that must be overcome before the market place can be entered for example a product must pass minimum quality and safety standards and licences are usually required for trading. When considering the electronics industrial sector entry into the market is extremely difficult, since a large initial investment is required, and competition is fierce. In the current economic climate entry in this sector will be almost impossible unless an innovative unique selling point is achieved. Currently the easiest entry into the electronics sector is through excellent design reliability, durability and cost effectiveness of electronics being the most obvious. Electronics Industry Life Cycle Stage According the theory of industry life cycle, Samsung Electronics already got the Maturity stage. Because growth is no longer the main focus,market share andcash flow become theprimary goals of the companies left in the space. Samsungs products like TV, audio, video, mobile phones, camera, camcorder, PC, peripherals, Printers, home appliances and memory cards all have good reputation and occupy important place in market. PESTEL Analysis This section serves as a business environmental scan. Here a PESTLE analysis is applied of the external macro environment in which SAMSUNG operates. The pestle analysis is applied to SAMSUNG looking at its market i.e. no specific product. The diagram below highlights the main issues within each factor. All the factors have a high level of influence on our business and our future strategy. Portfolio Analysis SWOT Analysis Porters Generic Competitive Strategy Analysis STRATEGIES CHOICE GE Matrix Analysis Mobile phone industry attractiveness and business strength assessment of Samsung phones Industry attractiveness Business strength assessment Depending on the analysis of the mobile phone market and industry attractive terms, the current score of attractiveness of the mobile phone industry is 3.68 points; the attractiveness of the industry is relatively high. Through the analysis of financial statements of Samsung, Samsungs business strength total score of 3.19 points in the industry belongs to a high level, in the matrix belongs to GE leader-type to business, this score indicates Samsung mobile phones has a good market share in current market. TV industry attractiveness and business strength assessment of Samsung TV Industry attractiveness Business strength assessment From the table, we can see that on the all TV market analysis, financial statements and marketing analysis of Samsung TV and Samsung in the GE matrix effort to business, the TV industry has a strong attractiveness, but Samsung in the TV business strength only belongs to middle level, which need considerable investment of resources, through the efforts of Samsung could be a leader-type business, or it will be difficult to fierce competition in the market to survive. Washing-machine industry attractiveness and business strength assessment of Samsung washing-machine Industry attractiveness Business strength assessment Through the washing-machine industry analysis and a brief Samsung washing-machine business development analysis show that the attractiveness of the washing-machine industry for Samsung is very strong, but Samsung washing-machine for production in terms of business strength is weak and the question mark in the GE matrix operations, the attractiveness of the industry itself is very easy to attract new entrants into the market and existing enterprise competition, but the washing-machine industry because of the competition is fierce, national brands in the market want a share of the domestic and international well-known brands have already endless which want to improve their competitiveness in this industry. Samsung is in a very difficult situation in the washing-machine industry. According to the industry attractiveness and business strength matrix of Samsung mobile phones, TVs, washing-machines, we mapped the GE matrix of Samsung: B: mobile phone, F: TV .H: washing-machine. (http://www.showppt.com/ppt_79.html) The GE matrix is displayed by Samsung, Samsungs mobile phones plays a leader place in the market and it must keep go on. TV business in the maintenance of regional (between effort and regulator), business attraction and business position in the industry do not have the advantage of both the absence of the formation of a unique segment had to compete with many rivals, enterprise by supporting these businesses strive to improve the businesss market share, and strive to develop into a leading-type business. Samsung washing-machine business is a question mark position difficult for enterprises to compete with the market the original members, requiring substantial investment of resources, currently giving up their own production of washing-machine is an inevitable choice. Boston Matrix Analysis Samsung electronics was build up in 1969, it cost 40 years developed from a small company which only 36 people worked in it to a worldwide company. Now there are nearly 20 kinds of products in Samsung which got a good reputation all over the globe. Take Samsung electronics as an example, it got lots of awards in the Industrial Design Excellence Awards in America. It is the company which got the most awards in several consecutive years, which can prove the design ability of Samsung reach the world-class level. It will be analysis with Boston Matrix. The television and mobile phone can be looked as the cash cow product, because the market growth rates are relatively low and the relative market share are so high. (http://www.masslearning.com/) Samsung electronics started the business of liquid crystal display from 1995, when it get to 2005, the total amount of sales volume is more than one hundred million and it is more than 2 hundred million in 2007, 3 hundred million in 2008, in last month, the total sales volume is more than 5 hundred million. The reason of why Samsung electronics can get the outstanding achievement is the extended market of the LED TV panel and the powerful sell of the big size LCD TV. In 2010, Samsung is going to sell 10 million LCD televisions with LED and 22 million all kinds of LCD TVs. In the sales amount aspect, Samsungs market share got to 23.6% all over the globe in the fourth quarter in 2009. The high sells amount and market share of Samsung is because of the high shipments of television market in the world, the integrity layout of the product size and the leader status of the advanced technology. Samsung got the double champion of the shipment and the sales amount on television in continue 13 seasons. So they looked as the cash cow product. The market share and the market growth rate of five TV brand in 2009 (http://finance.baidu.com/2010-02-23/122741032.html) Samsung is the second biggest mobile phone producer in the world. In 2009, it paid more attention on the fashion style which attracted a great deal of young person and the shipments got to 235 million, the market share got to 19.5%. Compared with 2008, it has a big improvement, because the shipment and market share is only 199 million and 16.3% respectively. The successful of Samsung electronics is come from the swift and agility, but lack of innovativeness may lead to the loss of probability. Nowadays Samsung pay more attention on the Smartphone, the Bada system is a good example. Bada system is a platform of the new smart phone which developed by Samsung company, the interface of it is more fashion in colour and style. So it can be looked as the cash cow product because the market growth rate is low but the market share is very high, the characteristic of which is the sale volume is high but the rate of liability is low, it can provide fund for the company and the product do not ne ed improve the invests. So it can be the supporter for recover the funds for the company, support the other product. The market is becoming mature, the company do not need to invest huge capital for enlarge the market and as a leader in the mobile phone area, it bring lots of profit for the whole company. (http://article.pchome.net/scripts/art_content.php?article_id=447146) In 1997, Samsung produce a series of double door fridge named ‘ZIPEL, in these 10 years, it was export to more than 130 countries and the market share got to the peak over about 50 countries. After sell the fridge to America for 7 years, the market share of Samsung became the highest one. In 2007, the French fridge started to sell in America, the market share was only 5.6% at that year, but after one year, it rocket to 16%. In 2009, the total sales of bridge take account of 28.6% and the sales volume take account of 27.2% in America, rank the first place. So the fridge should also be looked as the cash cow products, a company should have several kinds of cash cow products, if there is something wrong with the other dogs products, it balance the funds of the whole company. From 2007, Samsung produce a series of camera, such as blue, WB, PL, ES and ST series. Especially Blue series which was made the advertisement by Dongjian Zhang, leave a good impression for Chinese customer, so attract lots of customers attention. But in the whole area, Canon, Sony and Nikon still the first three brands, Samsung cannot catch up with them. Although it developed harder on the camera area, the market share still cannot as high as the other area. So the camera area can looked as the question marks product in the Boston Matrix analysis. Most products of Samsung electronics have a good reputation and sell very well, but there are some exceptions. Take air c The Man of the Crowd | Literary Analysis The Man of the Crowd | Literary Analysis Such a great misfortune, not to be able to be alone, declares the opening line of Edgar Allan Poes Man of the Crowd. Surrounded by a city full of people, the narrator is indeed not alone in that sense. Alone, though, may be viewed in another light: to be unique, to stand alone against the chaos and homogeneity of the crowd. The relationships the narrator has with and the observations he makes about the people of London give insight regarding the nature of urban relationships generally. Though the narrator does not in reality have any direct communication with the people in this story, he observes and reports on each of them, and these observations substitute for his lacking personal relationships. It is his observations of the city of London itself, of the crowd, and of the old man that reveal Poes distaste for the isolation and loss of individuality that city life fosters. The city is mostly only described at night, and we see almost nothing of the daylight hours. The audience, therefore, is left with a dark and gloomy image of the city. By providing this sole nighttime portrait of the city through the narrator, Poe automatically creates a depressing outlook on city life that pervades the story and provides the backdrop for the entire commentary. To reinforce the depressing outlook, Poe has the narrator enumerate the features of the verge of the city in more detail than any other part of London (220). He states that this place [wears] the worst impress of the most deplorable poverty, and of the most desperate crime (220). The poverty and crime reveals that people do not care about each other, in that no one helps the poorest of the poor and the criminals have no regard for their fellow city dwellers. People are isolated from, and apathetic towards, their fellow city dwellers. To give a further impression of the impoverishment and apathetic nature of the city, he describes the beggars, poor girls returning from their demanding work, and sick people wandering about the streets. From the descriptions of these people it is evident that the city is a cold, uncaring, and unforgiving place: the sick were in search of some chance consolation and the young girls had to return to careless homes (217). The lack of concern for others in the city highlights Poes notions that the urban environment creates isolation amongst its inhabitants. While describing the crowd, the narrator is seated behind a window, separated from the people. Putting him behind the glass isolates him from those whom he is so meticulously observing. One would think that after being sick and inside for months on end, the narrator would want some kind of personal, human relation, yet he is perfectly content to sit alone indoors and ponder the pedestrians from afar. His willingness to be alone further contributes to the sense that people are truly isolated in the city. This isolation is also seen in the pedestrians, who [talk] and [gesticulate] to themselves, as if feeling in solitude on account of the very denseness of the company around (216). Here the narrator explains that because there are so many people around and since no one knows each other, these people feel like they are alone. Poe suggests, through the narrators observations, that while one may be in extreme proximity to others in the city, he is not truly connected with any of them, except in the sense that he may share some general attributes with a large group of others that causes him to be seen as part of the whole. The narrator states that he at first looks at the people in their aggregate relations but then moves into observing the details of which there were innumerable varieties (216). Herein lies a contradiction: he points out there are innumerable varieties, yet he does exactly the opposite by enumerating the types of people that he sees and placing each person into a specific category. The narrator treats each person within each of his classifications as the same as the whole: though he calls them individuals, he immediately places them into a larger group. Poe here is trying to say that while you may think that you are a distinct person in the city, you have already lost your individuality by being part of the crowd. The narrator tells himself that everyone is different, but in pointing out their differences, he makes sweeping generalizations, thus making many people the same as one another. Furthermore, when the narrator classifies and describes the crowd, he does so in a very scientific manner, looking at each of them through their figure, dress, air, gait, visage, and expression of countenance (216). While these traits should make each person different at least in some way from another, they are all treated as exactly the same within each group. The classification of the people in the crowd makes them lose their individuality by generalizing and putting each person into a pre-labeled group. When a person comes along, the man of the crowd, that cannot be classified, the narrator is startled (218): he doesnt know how to think about this man since he cannot put him in a well-defined category. He is so intrigued by this man that he leaves the coffee shop where he has been meticulously scouring the people of the crowd. He purposefully hides among the pedestrians so as not to be seen and, in doing so, loses his individuality and becomes just another undistinguishable face amid a sea of others, suggesting that his quest to classify this man is futile. If the narrator himself is indistinguishable, how is he able to individualize and ascribe specific attributes to someone else? Also, the way in which he describes the passages that the old man takes causes him to become intertwined with the old mans identity: the narrator says that he hurried into the street [] until we emerged (220). He has to do exactly as the old man does in order to stay close and observe him. Again, this mixing of identities emphasizes the loss of individuality in the city that Poe wishes to point out. A person starts to lose his identity when he starts behaving like other people. The narrator eventually abandons his pursuit, saying that this man does not permit [himself] to be read (215). He points out that he can learn nothing else about him. The narrator here seems to just ignore someone that does not fit into he predetermined classifications. This eventual disregard for the peculiarity of the old man again shows that there is no true individuality in the city. If other people like this man cannot be classified, they are probably simply ignored; in effect they do not exist. So, in essence there are no individuals. The tale opens by saying that it is a great misfortune, not to be able to be alone. The narrator in Man of the Crowd is surrounded by a city full of people, unable to be alone, though is truly isolated from them. Through the observations made by this narrator, it is evident that the same isolation applies to every other member of society in London; no one knows anyone else and, in that sense, everyone is isolated. Though, these people are not alone in that none of them are distinguishable from a larger group. Each person is defined as being part of a group within the crowd and as a part of the crowd generally. It is this loss of individuality that gives meaning to the vagueness title The Man in the Crowd.

Change Management Essay

1.1 Introduction Barack Obama started his election campaign with a plan to renew America’s promise with the words â€Å"Change we can believe in†. His Presidential campaign was marked by changes. He wanted to change a nation and its way of acting. Throughout the campaign, Obama’s changes were aimed towards bringing a rapid end to the war in Iraq, decreasing energy dependence, and providing universal health care. In his victory speech Obama said â€Å"change has come to America†. Up to now, not all his plans and ideas have proven successful and only the future will reveal their full potential. The U.S. election was a change of the governmental position which was decided by the nation. In an admittedly smaller world, every person in his or her life as well as every manager of an organisation is faced with changes or the requirement to make changes every day. Let’s concentrate on the business world and have a look at what changes mean? Change is an alteration of a company’s strategy, organization or culture as a result of changes in its environment, structure, technology or people. A manager’s job would be very straightforward and simple (not to say boring) if changes were not occurring in these areas. Good managers have a competence to manage change in the company’s environment. These changes can be alterations in structure (design of jobs, span of control, authority relationships or coordinating mechanisms), in technology (equipment, work processes or work methods) as well as in people (behaviours, perceptions, expectations or attitudes). 1.2 Reasons for Change A complex structure like an organization is driven by external and internal factors in regard to the need for change. There are a number of external forces that create the explicit need for change: Market situation or market place Technology Government laws and regulations Economics The global marketplace has created a huge need for change because of internationalization and the more dynamic situation. Some of this could not have occurred without the various and dramatic changes in technology. An example of the changing marketplace is the deregulation of the telecommunications industry in the domestic market. By deregulation, the competitive pressure was put on telephone companies such as the German Telecom which has minimised monopolistic emplacement. Regarding this point, advances in technology have had a big impact on the market. Also, the affordability of equipment and software allows greater competition in the IT-sector. Government laws and regulations can have a large impact on an organization such as with deregulation. Organizations have to change because it is now prescribed. The new tobacco taxes and the legislation requiring tobacco manufacturers to disclose the harmful effects of tobacco smoking have created huge pressures on some large organizations. These organisations now have to change to ensure their economic viability. Finally, these economic ups and downs have a dramatic effect on organizations as well on domestic markets as the worldwide economic influence continues on organizations. This phenomenon could be seen during the last financial crisis. The effects were recognized in the USA first; then they hit Europe, Japan and finally the rest of the world. As a consequence, several automobile manufacturers have announced production cutbacks and reduced employment. Parallel to the external reasons there are different internal forces for change: Corporate strategy Workforce Technology and equipment Employee attitudes It is not unusual for an organization to change its strategy. It can lead e.g. to a large number of changes if the organization decides to adopt a new distribution methodology or a new logistic strategy. Also a merger will change an organisation’s way of acting. (For example, a company decides to  enter the e-commerce business). The introduction of new equipment or new technology is another internal force for change which affects an organization. The implementation of new technology needs new processes or structures. Through this, employees will have to be trained for new work processes or new jobs. The composition of an organization’s workforce never stays static because it changes in terms of gender, age or education. New employees join the organization and other people leave. With these changes, managers may need to redesign work and work groups in order to ensure the job requirements match the skills of the people. Lastly, employee attitudes such as the level of job satisfaction can lead to either negative or positive forces for change. If employees are dissatisfied, then there can be an increased level of employee absenteeism which can lead to changing practices or management of staff. 1.3 Origins of Change Management Again, a distinction between change management as a result of changing technologies and change management based on different management styles has to be made (in practice however, one factor is certainly influencing the other). Change management has his origins in the 1950’s. In those days modern forms of management were introduced (e.g. teamwork, autonomous groups) and the â€Å"war† between followers of top-down (change) approaches and bottom-up (change) approaches began. Top-down organizations are characterizes by the relatively low influence of subsystems. With the exception of the top management, employees are placed in a given process pattern. The organisation’s units are co-ordinated within a system of regulations and the organisation’s development is steered from top down. Bottom-up organizations are characterized by the relatively high influence of subsystems. The organisation’s development is carried by involved employees. A structural partial autonomy is conceded to the single subsystems. The organisation units are relatively independent in their execution of problems and could be basically capable of surviving on their own. Regulations are found primarily in the form of general behavioural instructions and the basis of â€Å"Common Senseâ€Å". The organisation’s development is therefore developing itself bottom-up. The best known concepts of  top-down management are business process re-engineering and business reengineering. The concept of business process re-engineering is aimed at changes concerning quality, service, cost and processing time. The core idea is process orientation. The concept of business process re-engineering takes into consideration strategy creation as well as process creation without describing, however, methods and instruments in detail. The documentation of the actual and the planned processes remain at a relatively coarse level and the main weight lies with few identified core processes. Business re-engineering is aimed at the radical redesign of enterprise strategies or essential enterprise processes. Its purpose is the improvement around scales in significant and measurable achievement dimensions in the areas of costs, quality, service and time. The implementation of this concept requires a â€Å"strong manager† who not only initiates the changes but also encourages the employees to make the necessary changes. Business re-engineering, therefore, is based on order and control, while the comprehensive knowledge of the organisation’s development and the participative system’s creation is maintained. The best known concepts of bottom-up management are kaizen and lean management. Kaizen (Japanese for â€Å"improvement† or â€Å"change for the better†) focuses upon continuous improvement of processes in manufacturing, engineering, development, marketing etc. (main business processes), supporting business processes and management. Kaizen as a management approach is based on the idea that no actual status (of a process or an organisation) is good enough to be kept. Kaizen refers to a continuous improvement of all functions and involves all employees from the executive board to the assembly line workers. It also applies to processes, such as purchasing and logistics and always involves the entire organization. Kaizen was first implemented in several Japanese businesses after the Second World War, influenced in part by American business and quality management teachers who visited the country. It has since spread throughout the world Lean Management explains how to link the advantages of batch-producing organizations (speed, low unit cost) with the benefits of a customer-oriented organisation (high flexibility, customizing, quality). â€Å"Lean† must be understood as â€Å"Lean Enterpriseâ€Å", an enterprise with  customer-oriented organisation which values customers, suppliers and employees. Principles of lean management are a gradual approach, group orientation, own responsibility, constant feedback in lower management levels and a long-term orientation. Other ideas of lean management are an enterprise-wide improvement of the quality, acceleration of the development, harmonious integration of the enterprise into the society as well as outsourcing and concentration on specific strengths of the organisation. The focus lies on the soft factors. Also in relation to a process-oriented thinking and strategy creation, lean management uses the Kaizen approach. Nevertheless, the concentration on a few, significant core processes is strongly stressed here. Comparing the bottom-up and top-down approaches, the advantage of a bottom-up orientation lies with the possibility of adapting the rhythm of the development and the capacity of the organisation for development. Small changes can be achieved at short notice or immediately, while lasting changes run smoothly and could guarantee a constant improvement of the problem solution capacity of the enterprise. On the other hand, permanent change processes and the constant restlessness linked with such change processes can also affect negatively the organisation, as possibly no clear direction is recognizable any longer. Few enterprises are ready for a radical change in their orientation as demanded in a top-down approach. No organisation is able to reorganize itself and the whole value-added chain ad hoc. Frequently the longevity of the soft factor â€Å"enterprise culture† is underestimated. Changes in the enterprise culture need time and, hence, are an object of evolutionary and participative approach and not a revolutionary and authoritarian process. The advantages of the top-down approach are the straight-forward attempt of comprehensive, department-covering thinking and action and the focus on the central processes. Nowadays, within modern change management approaches, top-down and bottom-up approaches are mixed. As shown in fig. 1, analysis and the strategy development is mainly done top-down whereas continuous process improvement is driven from the bottom-up. Constant dialogue between the involved parties guarantees a constant improvement and focusing on the core requirements. Figure 1: Modern Change Management – Bottom-Up meets Top-Down So change management is the: correct understanding of the organizations that want or need to be changed correct understanding of the people who are willing or forced to change the effectively realization of change understanding the dynamics of change Changes should be facilitated by the organizational structure because this enhances adaptation and flexibility. A simple organizational structure will reach a simple dynamic environment or, on the other hand, a simple dynamic environment needs a simple structure only. For a complex dynamic environment an adhocracy will be needed. Adhocracy means more democracy and less bureaucracy. One of the most important points is the people, because they form the organization. The culture of organization includes their way of working, attitudes and norms. These facts are at the core of every change and they are difficult to handle. Personal modifications regarding attitudes or skills in leadership or communication are hard to identify but ineffectiveness can be indicated by problems and conflicts in the management of human resources. 2. Concepts of Change Management A number of models are available to facilitate one’s understanding of transitioning of individuals through the phases of change management and strengthening organizational development initiatives in both government and corporate sectors. 2.1 Lewin ´s Change Theory Kurt Lewin theorized a three-stage model of change that has come to be known as the unfreezing-changerefreeze model which requires prior learning to be rejected and replaced. Edgar Schein provided further detail for a more comprehensive model of change, calling this approach â€Å"cognitive redefinition.† Lewin ´s model will be discussed later in this book in more detail.. 2.2 Chin & Benne ´s â€Å"Effecting Changes in Human System† Chin and Benne (1969) and Havelock (1971) each articulated different approaches but shared some  overlapping concepts. Some of the models had a primary focus on innovation and organization, while others focus on the individual: Empirical-rational approach The basic assumption underlying the empirical-rational model is that individuals are rational and will follow their rational self-interest. Thus, if a â€Å"good† change is suggested, people of good intention will adopt the change. This approach â€Å"posits that change is created by the dissemination of innovative techniques†. A primary strategy of this model is the dissemination of knowledge gained from research. One example of agencies and systems used for the development and diffusion of such research results are agricultural extension systems and the county agents who disseminate the results of agricultural research. In education, these activities are the domain of educational research and development centers,,regional educational laboratories, state departments of education, colleges and universities, national diffusion networks, intermediate service agencies, and staff development personnel within school districts. The rational view generally ignores the fact that school systems are already crowded with existing passive recipients, who may not have the necessary time or expertise to adopt or apply the new knowledge or program. Power-coercive approach The power-coercive approach relies on influencing individuals and systems to change through legislation and external leverage where the power of various types is the dominant factor. Power-coercive strategies emphasize political, economic, and moral sanctions, with the focus on using power of some kind to â€Å"force† individuals to adopt the change. One strategy is non-violent protest and demonstrations. A second strategy is the use of political institutions to achieve change – for example, changing educational policies through state-level legislation. Judicial decisions also impact educational policy. A third power-coercive strategy is recomposing or manipulating the power elite – electing people to public office, for instance, to support an intended change. History is replete with mandates, and other power- coercive strategies, which resulted in little change. Normative-re-educative approach In the normative-re-educative approach, the individual is seen as being actively in search of satisfying needs and interests. The individual does not passively accept what comes, but takes action to advance his/her goals. Further, changes are not just rational responses to new information but occur at the more personal level of values and habits. Additionally, the  individual is guided by social and institutional norms. The overarching principle of this model is that the individual must take part in his/her own change if it is to occur. This model includes direct intervention by change agents, who focus on the client system and who work collaboratively with the clients to identify and solve their problems. The normative-re-educative approach employs the help of change agents to assist clients in the change process by identifying needs; suggesting solutions, examining alternatives, and planning actions; transforming intention into adoption; stabilizing the change. The use of an agent to support clients and facilitate change was present in the early models. The concept of the change agent evolved further and has been reported in studies of educational and other organizational change. 2.3 Bullock and Batten’s Phases of Planned Change R.J. Bullock and D. Batten derived their ideas from project management and they recommend using exploration, planning, action, and integration for planned change. Exploration occurs when managers confirm the need for change and secure resources required to achieve it. These resources may be physical or they may be mental, such as a managers’ expertise. The next step, planning, occurs when key decisionmakers and experts create a change plan that they then review and approve. Next, action occurs with enactment of the plan. There should be opportunities for feedback during the action phase. Finally, integration begins when all actions in the change plan have taken place. Integration occurs when the changes have been aligned with the organization and there is some degree of formalization, such as through policies and procedures in the organization. Bullock and Batten analyzed over 30 models of change management and arrived at their own 4-phase model of programmed change management which can be applied to almost any circumstance. The model is useful in that it distinguishes between the ‘phases’ of change which the organization passes through as it implements change, and the ‘processes’ of change, i.e. the methods applied to get the organization to the desired state. The model progresses as follows: Exploration phase – The organization has to make decision on the need for change: Explore and decide on the need for change Identify what  changes are required Identify resources required Planning phase – Understanding the problem: Diagnosis of the problem Clarify goals and objectives Identify specific activities required to undertake change Agree changes with stakeholders Identify supports required to enable change to occur Action phase – Changes identified are agreed and implemented: Support for change is explicit Changes are monitored and evaluated Results are communicated and acted upon Adjustments and refinements are made where necessary Integration phase – Stabilising and embedding change: Changes supported and reinforced Results and outcomes from change communicated throughout the organization Continuous development of employees through training, education Ongoing monitoring and evaluation 2.4 Beckhard and Harris change formula The change formula is a mathematical representation of the change process. The basic notion is that, for change to occur, the costs of change must be outweighed by dissatisfaction with the status quo, the desirability of the proposed change, and the practicality of the change. There will be resistance to change if people are not dissatisfied with the current state of the organization, or if the changes are not seen as an improvement, if the change cannot be done in a feasible way, or the cost is far too high. This formula can also be conceptualized as (D Ãâ€" V Ãâ€" F) > R. D = Dissatisfaction V = Vision F = First Steps R = Resistance to Change The multiplicative nature of this formula indicates that if any variable is zero or near zero, resistance to change will not be overcome. In other words, the variables of D, V, and F do not compensate for one another, and when one is very low, the cost of change is likely to be too high. 2.5 7-S Model Consultants at McKinsey & Company developed the 7S model in the late 1970s to help managers address the difficulties of organizational change. The model  shows that organizational immune systems and the many interconnected variables involved make change complex, and that an effective change effort must address many of these issues simultaneously. The 7-S Model is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make the organizations successful, or not: strategy; structure; systems; style; skills; staff; and shared values. The 7-S model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole, so that the organization’s problems may be diagnosed and a strategy may be developed and implemented. The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an organization’s ability to change. This theory helped to change managers’ thinking about how companies could be improved. It says that it is not just a matter of devising a new strategy and following it through. Nor is it a matter of setting up new systems and letting them generate improvements. To be effective, your organization must have a high degree of fit or internal alignment among all the seven Ss. Each S must be consistent with and reinforce the other Ss. All Ss are interrelated, so a change in one has a ripple effect on all the others. It is impossible to make progress on one without making progress on all. Thus, to improve your organization, you have to master systems thinking and pay attention to all of the seven elements at the same time. There is no starting point or implied hierarchy – different factors may drive the business in any one organization. The 7-S Model is a valuable tool to initiate change processes and to give them direction. A helpful application is to determine the current state of each element and to compare this with the ideal state. Based on this it is possible to develop action plans to achieve the intended state. 3. The Change Process 3.1 Initiating a Top-Down Change Accelerated by global competition, the pressure to change business strategy is a worldwide phenomenon. Industrial activities are shifting from manufacturing to service, globalization of markets, political realignments, technical advances in management information systems, corporate alliances  and downsizing of organizations are changing the structures of corporations and projects. In parallel, organizations are faced with global competition. This competition is becoming more and more obvious in automobile manufacturing, consumer electronics, computers and communications and household manufacturing. Increasingly, the global heavyweight players of the world economy are large corporations involved in international or multinational projects. There is a global market and competition for most products and services. In order to effectively compete in it, organizations must use creativity and transform their cultures, structures and operations. The emergence of these global organizations c reates pressure on domestic organizations and projects to restructure and internationalize their outlook and operations. Because of these powerful forces for globalization, organizations must explore project opportunities all over the world. Technology is changing at a rate greater than at any time in history. One of the most dramatic technological changes affecting the work environment is the rapid expansion of information system technology. This technological revolution is having a profound impact on project structures, power relationships and the management of complex project interfaces. Artificial intelligence, computerintegrated manufacturing and virtual reality are creating new project opportunities in terms of their development and applications. Technology eliminates the problems of physical distance. Audio/Video conferences create the personal and direct interaction that is needed to work as a team. Engineering and manufacturing industries are assisted by robotics and computer-based design and manufacturing techniques like CAD. Fast-changing consumer preferences caused by rapid and frequent technological changes and innovations have shortened the life cycle of several goods and services. The effects of rapid product obsolescence can be dramatic for organizations which cannot adapt and quickly handle this situation. In the pharmaceutical and electronics industries, some products become obsolete in as little six months. Projects aimed at developing products and services in such industries must adapt to this rate of change in a cost-effective manner to be successful. Fig. 1 about a modern change management process showed that change management starts with a (re-)definition of the current enterprise strategy. Deciding upon the right business strategy stands therefore at the beginning of every change process.  The process of finding the right strategy is illustrated in fig. 2. Figure 2: Finding the right Strategy Countless approaches for strategy definitions are available (e.g. Porter 5-Forces-Model, 7S) and are not topic of this book. Fig. 2 only shows a general approach for the strategic approach during the change process. One step in this approach might differ from a general strategy rehearsal. During a change project, it is necessary to involve an external expert for a strategy audit! A strategy-audit is an important cornerstone for a common image about the general and strategic position of the enterprise. Beside the management or departmental management in particular, the persons who are involved in marketing and sales and therefore have a direct customer contact and should be involved at this stage. The second step in the â€Å"top-down† part has been process analysis. The process analysis reflects the modelling of the existing processes. Participative reconstruction of the processes and the visualisation of the expectations, strengths and weaknesses for the initialization of a lasting change is required. A review process (iterative vote process with the employees questioned) is mandatory. The following stage of process (re-)design cannot be separated with regard to the method and the modelling tools from the process analysis. It is only to be distinguished as an â€Å"incremental† process optimisation and a â€Å"radical† reorganisation of the enterprise processes. The target of the top-down process analysis is firstly the elimination of all non value-increasing activities and secondly the optimisation of all remaining activities. 3.2 Initiating a Bottom-Up Change Managing organizational change from the bottom-up will be more successful if some simple principles are applied. Change management entails thoughtful planning and sensitive implementation and, above all, consultation and involvement of the people affected by those changes. If change is forced, problems will arise. Change must be realistic, achievable and measurable. These aspects are especially relevant to managing personal change. Before starting organizational change, the question of strategic change has to be answered: What do we want to achieve with this change, why, and how will we  know that the change has been achieved? Who is affected by this change, and how will they react to it? How much of this change can we achieve ourselves, and what parts of the change do we need help with? These aspects relate strongly to the management of personal as well as organizational change. Change needs to be understood and managed in a way that people can cope effectively with it. Change can be unsettling, so the manager logically needs to be a settling influence. Whenever an organization imposes new things on people there will be difficulties. Participation, involvement and open, early, full communication are the important factors. Workshops are very useful processes to develop collective understanding, approaches, policies, methods, systems, ideas, etc. Staff surveys are a helpful way to repair damage and mistrust among staff – provided you allow people to complete them anonymously, and provided you publish and act on the findings. Management training, empathy and facilitative capability are priority areas – managers are crucial to the change process – they must enable and facilitate, not merely convey and implement policy from above, which does not work – Change must involve the people change must not be imposed upon the people. One has to be wary of expressions like ‘mindset change’, and ‘changing people’s mindsets’ or ‘changing attitudes’, because this language often indicates a tendency towards imposed or enforced change and it implies strongly that the organization believes that its people currently have the ‘wrong’ mindset, which is never, ever, the case. If people are not approaching their tasks or the organization effectively, then the organization has the wrong mindset, not the people. Change such as new structures, policies, targets, acquisitions, disposals, re-locations, etc., all create new systems and environments, which need to be explained to people as early as possible, so that people’s involvement in validating and refining the changes themselves can be obtained. The following change management principles should be adopted]: At all times involve and agree support from people within the system (system = environment, processes, culture, relationships, behaviours, etc., whether personal or organizational). Understand where you/the organization is at the moment. Understand where you want to be, when, why, and what the measures will be for getting there. Plan development towards No.3 above in appropriate, achievable measurable stages. Communicate, involve, enable and facilitate  involvement from people, as early, openly and as fully as is possible.

Communist Party Essay

Conservatism is today, in 2009, a word without meaning. It can refer to a Christian agrarianism, urban free market capitalism, the Objectivist world of Ayn Rand and the libertarians, the Communist Party of the Russian Federation and the imams of Syria and Saudi Arabia. It can refer to the love of free trade and protectionism. It can refer to a strong state, such as Franco’s Spain, or a weak one, such as the early American republic. It can embrace technology and innovation or reject it, seeking a simpler life. It is both anti- and philo-Semitic. It can embrace either integration or race separatism. It can refer to a monarchy or a republic. It can refer to populism or aristocracy. It can refer to the assembly line or the craft guild. It can refer to Milton Friedman, George Bush, G. K. Chesterton or Fedor Dostoyevskii. The word is worse than useless. The book under review here purports to be a conservative manifesto for the Obama era, the era of democratic dominance last seen in the early 1990s. It is in fact two books: a semi-theoretical account of conservative ideas in the first few chapters, and later, a more issue-oriented approach to American politics in 2008-2009. Ultimately, the book fails for several reasons: first, it fails because its â€Å"theory† is aimed at a popular audience, and hence, lacks the theoretical rigor of works such as The Conservative Mind. It also fails because the beginnings of the work, dealing with the founding fathers and the nature of federalism and constitutionalism, are, at best, incompletely integrated with the issue-oriented chapters that follow. Thirdly, and most seriously, the ultimately ideological aim of this book is in no respect different from the basic theoretical ideas of the Enlightenment, dependent upon John Locke, Thomas Jefferson and Adam Smith, regardless of the completely different ethical starting points of the two systems. This is a curious beginning for a work on â€Å"conservatism. † Even more odd is the author’s complete lack of differentiation among the various people that formed the artificial category of â€Å"the founding fathers. † There is nothing about Patrick Henry or George Mason’s rejection of the constitution, or the radical distinctions between Federalists and Anti-Federalists. The author is a radio talk host with a law degree. He is not a social theorist or philosopher, much less a historian, yet the scope of his work seems to demand these backgrounds. The work itself is highly unoriginal, with every idea and every ideological formulation stated in almost the precisely identical to terms in the National Review or conservative papers such as Human Events. There is nothing in the book itself that is specifically original, and these ideas have been regular currency in conservative circles since the New Deal. Since it does purport to be a summation of â€Å"conservative thought,† the fact is that the author sets the reader up for a theoretical discourse that Mr. Levin does not have te desire or ability to relate.

People Management Approaches, Policies, Practices in Hilton Hotel Free Essay Example, 4500 words

In the chapter, an analysis has been done to have an insight into the emerging issues in the arena of human resource management in Hilton hotel. The effort has been put not only to discuss the techniques and tactics used in human resource management, but also the issue and the way to resolve the same. A conclusion has been inferred from the analysis part with mention of the recommendations which are expected to enhance the human resource management further to increase the effectiveness of the critical resource in Hilton hotel. Hilton Hotel has earned a huge amount of popularity in the hotel industry segment taken in an international context. The hotel company has successfully been able to internationalize its operations by extending its network to around 76 countries spread around the world. Hilton Hotel by operating through a network of six continents has been able to address the needs of its international customers through the creation of around 530 hotel outlets. The hotel and re sort properties of Hilton group host a large number of mega-events pertaining to the entertainment and business sectors. We will write a custom essay sample on People Management Approaches, Policies, Practices in Hilton Hotel or any topic specifically for you Only $17.96 $11.86/pageorder now Further, the hotels belonging to the Hilton group also earn fame owing to a large number of innovations rendered to its products and services. Records show that Hilton group of hotels were the pioneers in the extension of the service parameter of setting television in the hotel rooms. Further other pioneering works carried out by Hilton group consisted of extending the business through the franchising principle and also opening up of hotel outlets near the airports to gain a huge number of visitors. The workforce of Hilton Group works in such fashion as to promote the Hilton Brand in the global scale by working closely following the organisational culture. However, Hilton Group as a company also helps its employees to move to new avenues and explore myriad career options through the creation of a positive work atmosphere. (Hilton Hotels and Resorts, 2011). The Hilton Group of Hotels cater greatly in selecting and retaining the right person to work f or in the organisation.