Dissertation Economics Essay

CHAPTER 1

INTRODUCTION:

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This is the first chapter of this dissertation i.e. an introduction to the dissertation. In this chapter the author covers the subject of the research along the reasons why it is important to do research on this topic. This chapter also includes the aims and objectives of the research undertaken. In the last it provides a brief summary of contents of the entire chapter in order to make it easier for the reader.

1.1 Research Background:

According to Burnes1996 the globalisation of world may open up new markets and create more opportunities, but this all brings new competitors and uncertainties. If an organization is trying to enter in a new market or how to build up the potential of an organization to compete with the other firms entering in the market in which an organization already exists. In both the cases the fundamental goal is the same: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging environment. What changes are needed to sustain in the market. Either change or be ready to leave the challenging battlefield. Change will not disappear or dissipate. The organizations or firms will continue to be judged upon their ability to effectively and efficiently manage the change. Therefore the message is clear- the environment in which organizations operate will continue to change and managers will continue to find ways of ensuring that their organizations and its environment and the other constraints under which it operates, are, as far as possible, kept aligned.

As stated by Gilgeous 1997 in simple terms change is a response to some significant threat or opportunity occurring outside of the organization or firm. It is really important for an organization to continually monitor what is happening around, to develop a sense of awareness in order to do suitable change(s) to be in the game or to become a better competitor. In order to survive an organization has to develop the ability of change themselves continuously in a fundamental manner. This is the case of the fast moving sectors such as automobile.

According to Harvard Business Review 1998 many companies or firms do try to remake themselves to become significantly better competitors. They have included large firms or small firms, companies in the US, UK or in any other part of the world. These efforts have gone through many banners like total quality management, reengineering, right sizing, restructuring, cultural change etc. In almost every case, the basic goal has been the same- to make fundamental changes in a business to help cop with the challenging and competitive environment.

According to author, it can be easily understand by looking at the best automobile companies e.g. Ford and Toyota etc; they are constantly reinventing themselves. They do not rely on their models for a long time, either they do upgrade their models or launch a brand new one in order to keep pace with the changing environment.

According to Holbeche L.2006 organization's change-ability requires systems, process and people to be flexible and versatile and to recognize when change is needed. Organization able to manage knowledge learn how use knowledge in a good way. It is becoming an important source of competitive advantage. Organizations able to find, spread and manage it well are able to respond and innovate faster.

Holbeche 2006 says because of the build up pressure for change-effecting organization in every sector is increased competition resulting from globalisation, the growth of consumer power and the scientific-technology revolution. They want a good and reliable product at competitively priced. Companies need a constant change as they need to bring new products to the market quickly and cost effectively and this process should continue in order to attract and satisfy more and more consumers. ‘Doing what we have always done', this is not a suitable approach to move forward. It is not only up to attracting consumers and satisfying them in the initial stage, after sale service has taken an important place in today's world.

According to author, for instance automobiles organizations are providing free car services, more than one-year warranty, insurance without spending an extra penny etc has gained importance. The reason is companies are trying to come up with the new strategies and plans to attract the customers.

According to author, if we look at the facts revealed by Institute of Management and University of Manchester Institute of Science and technology, these facts portrays the same picture of how often the change process is taking place in the organizations and its importance in today's business.

As stated by Burnes 1996 the Institute of Management reported that 80% of the managers responded to its survey had experienced one or more corporate restructuring in their firms in the last five years. Almost a same picture emerged when University of Manchester Institute of Science and Technology carried out a study. It studied that 51% of the organizations responded were experiencing major transformations. In 1997 a survey done by both the Institute of Management and The Industrial society showed that there was no sluggishness or slackening in the process of change.

In today's business scenario firms in any sector like Electronics, Retail, finance etc, are undergoing major changes in order to become a better competitor. Similarly automobile sector round the globe is experiencing major changes. The same scenario is prevailing in Indian automobile market where the firms like Ford Motors, Toyota Motors, Mitsubishi Motors, Maruti Suzuki India Ltd; Honda Motors etc are trying their best to dominate the automobile market.

In India there is a fierce competition among the major car players. There are about 20 major players in the Indian car market with different models. http://business.mapsofindia.com/automobile/car-manufacturers/index.html

In this sort of market Maruti Suzuki India Ltd is the largest passenger car company with a share over 50% in the domestic car market. Not only this Maruti Suzuki India Ltd has been rated first in customer satisfaction for eight years in a row in J D Power's Surveys.

http://www.marutisuzuki.com/about-us.aspx

Before 1998, the largest four-wheeler manufacturer in India had not faced the real competition as there were few players in the automobile sector and consumers had a little choice. In mid of 1998, players like Daewoo Motors, Hyundai Motors and country's own Tata Motors. It was the first time Maruti Suzuki had faced a real competition ever. Further, the competition become stiffer and Maruti Suzuki India Ltd started loosing the market share. In the middle of 2002, market share had come down to the lowest of 48.06%, first time in the history of Maruti Suzuki India Ltd.

http://www.thehindubusinessline.com/2002/10/22/stories/2002102202470200.htm

The author is going to do a research on Maruti Suzuki India Ltd, a largest four-wheeler automobile company in a big market like India, about the changes they have made in the organization and their strategies to regain its position again. What they have done and how they have made successful strategies to attract the consumers again.

1.3 Reason for undertaking the specific research:

Automobile industry is one of the author's best interests. Due to this keen interest author looks at this research as a good way to enhance his knowledge and skills in understanding the way of implementing strategies in a period of change and crisis in an automobile firm. Author has witnessed the crisis period of Maruti Suzuki India Ltd. when the market share was going down and there was a crucial need to implement new strategies. Author kept touch with the news and the automobile magazines like Overdrive, Auto India, and Autocar India etc. in that period back in India. When author came across to the topic ‘managing change' and was able to make a link between the topic and the crisis period of Maruti Suzuki India Ltd. This triggered the curiosity and will in author to persuade the topic: ‘Managing Change in Consumer Satisfaction'.

1.4 Aims and objectives of the research:

Aims:

The main aim of this research is to significantly describe the change process and its importance in implementing new strategies in order to satisfy the consumers.

Objectives:

What is ‘change' and its importance in today's competitive market.
The change process and its core competencies.
To describe resistance in the change process and the solutions in order to overcome from this situation.
To identify the role and importance of Leadership in the change process.
To describe the role of managers and supervisors in implementing the change in an organization.
To describe a framework or recipe for the effective implementation of the change.
To describe the need for change with the help of a practical case in an automobile firm.
To identify how an organization practically strives to manage change in order to attract the consumers, to regain the market share by implementing the new strategies.

1.5 Overview of the dissertation:

As this chapter has given the fair idea of the importance and reason to choose this subject for dissertation this. It also stated the main aims and objectives of the research. Now the author is about to summarise the stuff, which is going to be in this dissertation chapter-wise.

Chapter 2. Literature Review:

This chapter begins with the need and importance, definition of the change and its causes. Then it covers types of change, the process of change through steps and phases, core competencies of managing change and then it describes what is resistance to change and its solutions, which, covers the methods to deal resistance. Further, this chapter covers the importance of leadership in the change process and the role of managers and supervisors in the effective implementation of the change in an organization. In the last, this chapter focuses on the recipe that assists managers in order to implement the change effectively and efficiently.

Chapter 3. Research Methodology:

This chapter explains the different philosophies and techniques used by the researcher along with the justification of appropriate method chosen by the author. It also explains the methods, which are adopted by the author. The methods were elaborated in order to justify the suitability of the method for the specific research undertaken.

Chapter 4. Data Analysis:

This chapter basically states the data collected by the author through the interview of the manager (marketing division) of Maruti Suzuki India Ltd. The author tried to grasp the in-depth knowledge about realising the need for the change, implementing change in the organization and the new strategies implemented to attract the consumers. Later, it presents the data collected through questionnaires via mail. The result shows the response to the questions asked to the consumers about Maruti Suzuki India Ltd. In this chapter author has tried to link the theoretical i.e. literature review with the practical side i.e. questions asked to the manager.

Chapter 5. Conclusion & Recommendations:

This is the last and final chapter of this dissertation. What the author has understood from this research. The author tried to describe a brief summary of the whole research. Author also tried to link the research objectives with the findings. Further, what are author's recommendations about the organization, what will be good for the organization in his point of view? This all has been stated in this last and final chapter.

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