This assignment required selecting two different types of Organisations, for my assignment I select Small size and Large sized business and then also includes the comparison between Small and large sized businesses. This report includes the various characteristics of small and large sized businesses. The information I am providing about large business, its behalf on Article and information about small business behalf on my own experience because I am working there for last one year.
EMC is a maker of Information Storage Eqipements.it store hardware and software.EMC founded in 1979 by Richard Egan and Roger Marino.EMC firstly present 64 kilobytes board for prime computer in 1981. EMC's data storage products are built to store and protect information. It is situated in Hopkinton, Massachusetts, USA. Joseph M.Tucci is the Chairmen and CEO of the company.
After reading the article EMC sales goes down very low. In late 2000 EMC's capital was $225 billion but its fell down 90% in next p months and that's bigger lost for company.EMC supplies their equipments' to small and middle size businesses and as well as banks and airline company. Usually EMC's main focus on hardware side but now company trying to focus on software side and service side as well.Tucci join EMC in early 2000 as a president and CEO of company and he wants to do Embedding change in company. He bring 6 broad lessons for company, those lessons will take up high company sales. Those 6 broad lessons are:-
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(1)Create an unshakable fact base.
(2)Move in sequenced stages.
(3)Capitalize on a new strategy's operational impact
(4)Eradicate bad behavior
(5)Know what creates a deep and permanent culture shift
(6)Use the CEO's position to inspire
So Tucci thought if he changes those 6 broad lessons, then it will be make company new image and sales figure up. But those changes are not very easy to taken place in any company. It will take time and all peoples of company have to suffer with new change.
About Small Business:-Farro Fresh Food is a unique one stop food market, where you can get vegetables, fruits, grocery, coffes, etc... under one roof. It is situated in Mt.Wellington, Auckland. Farro fresh food was started in 2006 by James draper and Janine draper.
After analyzing an d my own experience, I will says company going well and it has good sales and growth figures with time to time but some time you have to change according to new technology, new services, new products.thats all happened in Farro Fresh Food now because Immigration New Zealand change immigrations rules day by day, So farro change recruitment policies and change Eftpos machine, pricing change, dresscode change.
Those all changes happened in Farro Fresh Food now. Because company has to change with the situations and according to Government policies.
(1) Explain briefly what kind of change has taken place in both the organizations, and discuss the reasons of this change, identifying whether it is a result of internal environmental factors or external environmental factors in both the organizations you selected.
Answer (1): - Selected Organizations: -
Small business:-Farro Fresh Food
Types of changes in EMC:-after go through the article, EMC's sales fell down 90% in less than one year. So tucci brings 6 broad lessons which can change companies embedding structure.
Change in service:-in this change Tucci tell to all worker, employees, board member, and analyst, executive to improve our customer service and try to give best and fix price to our customers.try to maintain people's belief on us. He brings new companies contract, new telecom company, and new service providers.
Change in product:-in this change Tucci used 3 phases to bring up company sales and growth.1st phase about maintaining people's belief and 2nd phase about motivate employees to fulfil company vision and goal.3rd phase about how to get ability to executed those all change. But he used 4th phase as well that called "Balance sheet". He compare EMC with IBM's, So he will balance his companies advantages and disadvantages.
Change in market:-in this change, Tucci try to put new strategy on his salesperson and engineers. Now EMC target middle size storage market. Company selling partnership and distribution. Before company more focus on Hardware, than Software, than Service but Now Company more focus on Software and hardware then service.
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Change in management: - in this change, Tucci wants to change the work culture of EMC but that not easy. He try to give respect to the all peoples of EMC.he thought everyone has entitled for respect and honor.he told to everyone people guessing to his ability, not by dress code.
Reason for change:-In EMC there is Internal and External reason for change. Those are as follow:-
(1)Sales go down:-In EMC sales are goes down by 90% in only 9 months, that's serious problem for EMC.Tucci need to bring new ideas to put back the sales figures.
(2) Lack of work culture:-In EMC there is also lack of work culture because people who are old and experience they are defiantly entitled for respect and everyone in EMC are entitled for respect but they did not give respect to each other and there is people give respect to each other by his dresscode, So Tucci wants to change those dress code system.Tussi said "people get respect on his own behaviour and ability, not on dress code".
(1)Economic change:-Recession also plays a role to fell down company sales, because that time was very hard for the storage companies in USA.but Tucci give confidence to the employees we will get back our respect, position and value in the market.
(2)Customer expectations:-another reason of change is Customer demands.Tucci just wants to change some of product storage range. He wants to more focus on Software and services rather then hardware.
Types of changes in Farro Fresh Food:-After my work experience, I would says their different types of changes happened and now it will take place.
Change in company policy:-this change happened recently just 2 months ago. Company changed the product pricing, recruitment system, dress code. This change happens because of Immigration New Zealand, government of New Zealand.
Change in rules:- Now faro fresh food only hire PR staff because if they spend training cost on Student visa staff he will work only 20 hours and once he's visa finish he can't work. So company doesn't wants to waste money on non PR person.
Technical change:-this is most recent change in faro fresh food. This change we can says"Upgration or Demand", because old eftpos machines doesn't accept American Express Card, but now they change the whole system.
Reason for change:-there are internal and external reasons for change in Farro Fresh Food. They are as follow:-
(1)Technical problem:-the main reason for change the Eftpos machines is technical issue. Old eftpos machine doesn't accept American Express Card and that problem not good for company Reputation. So they have to change the machines for providing the best service.
(2)Need for productivities:-Farro fresh food lunches new products because of customer demands and for company profit. They start new department in store is call "Seafood department". They got request from customer every week for seafood, because they selling all other food under one roof. So they have to start new department Seafood.
(1)Competition:-Competition is bigger external factor for farro fresh food. Because Nosh is our bigger competitor in market right now. Nosh sales same product which Farro fresh food sale. So we have to always aware and updates with nosh and other competitors in market.
(2)Government policies and rules:-Government plays big role in pricing up and down matter.beacause recently government price up GST, So Company has to extent the prices as well and that change bring some low sale problem as well.
(2) Use your research and analytical ability and explain what was the role of the leader(s) in both originations throughout the change. Also explain how various leaders applied their ideas and concepts in the process of change management.
(i)Role of Leader in EMC:-In EMC Joseph M.Tucci plays a leader role. Because he takes all the responsibilities and he analyze all the factors of change. He is change whole Business work culture and he changed non profitable business to profitable, he changed old style service and bring new products, new partnership, new distribution, new corporate culture, inspiring to others. He change all the EMC structure by own leadership style. He told everyone to give respect to our customer and our seniors.
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(ii)Concept he used in change:-after reading article I would says he has leadership skills which make him different him to others. Those skills are:-
Risk Taking:-as a leader you should have risk taking ability for any problem. After go through the article a would say Tucci has risk taking ability. Because when he join EMC in early 2000,after 9 months company loss sale 90 percent and if he want, he will leave the company as it is, but he doesn't leave company and fulfil his responsibilities and use new concept to stand up the company again. He took all the risk and he did it. He brings company sales and growth back.
Decision making:-as a leader, he has decision making ability as well. Because in article when he bring 6 Broad lessons for embedding change and he applies all those lessons and phase for change company structure. He also shows in article how change automatically takes place in company and slowly-2 peoples are use to for those change. So, that's whole change process shows his Decision making ability.
Communicator:-as a communicator, he plays very good role in change. Because of his effective communication, he brings new Partnerships, new distributions, new services; new products and he collaborate with Dell, IBM and HP.
Developer:-as a leader he plays developer role as well, because one side he makes relationship with high levels company(IBM,Dell and HP) and other hand he develop new CLARiion Product, newly develop sentera system, a storage solution.So those abilities shows his developing skills.
Inspiring person:-as an EMC Ceo he plays inspiring person role as well. He inspire all the employees how to get together with each other and how to give positive feedback to customer. Because he takes 120-130 email every day and give them replay to those e-mails.he spend 40-50 percent his time with customers. So he is inspire all employees to give your customer best service.
(i)Role of Leader in Farro Fresh Food:- in farro fresh food I can says James draper plays effective leader role in whole change because he is a owner of business and he has all the authorities to do whatever he do on management level. He did three main changes in Company. He change new Eftpos system, change in company policies, changes in rules. James Draper brings all new changes and now it is part of Farro Fresh Food.
(ii)Concept he used in change:-According to my own experience, James Draper plays perfect and accurate role in whole change process. He used very innovative and planning skills in whole change management. Skills he used in whole process that are:-
Planner:-as a leader he has good planner ability. Because when he changes new Eftpos system, he plans the entire factor how can it will change, how much time it will take, and how much cost and according to plan he changed the systems. Now new system working perfectly and peoples love to shop with Farro fresh food.
Vision:-James draper has good visionary ability as well because he start this business in 2006,in just 4 year he open New store in Northshore.that means his vision are very clear and perfect with the timeline and he going to open Another New Store in Hamilton soon. So, that's clear Farro Fresh Food Company vision very clear and company growth and sales very well.
Motivation:-he is good motivator as well, because he calls every week meeting with all different department managers and always motivates them for level up the sales and provide good customer service. Because when he implement new pricing list in store, he knows some customer going to get angry for new pricing, then he motivate and told all checkout staff just explain to our nicely about new pricing.
Risk taking:-as a good leader ha has risk taking ability as well, because when he implement new rule. They going to hire only PR staff, he knows it will affect all the business, because some of trained staff quit the job and it will be serious problem for business but he took those risk and implement new rule.
(3) Compare and evaluate the application of leadership in change management in both the organizations and discuss the similarities and differences in implementation of leadership ideas in both organizations.
Answer (3): - In both organizations the leaders implemented change in regards to their size and their business expertise. They both use different ideas to implement the change and they were different. The Similarities and differences in both Organisations as follow:-
Both CEO's / Owner were focusing on high growth and high sales and they were successful in their implementations.
Both organisations are change in management, product and service, before their rapid growth period.
Both companies are changed according to their needs. For example in EMC's change when companies sales fell down by 90% and they have to change in management system according to need. And other side Farro Fresh food change when new rules and regulation came, new eftpos System because of need.
In early both company not adopting new change but slowly-2 they have to accept the change.
Both organisations Leaders have Risk taking ability because they know if they want to get the success, then they have to take the risk.
Both organisations leaders are believe in change because change is important for any organisation with the time.
Both organisation focus on customer demands and try to give best customer service to the customer.
Both companies are task oriented as well as people skills.
In both organisation going well and successful end of the day.
Both of the companies have different strategies for growth like Farro was spending more money on their own companies rather than buying new companies, on other hand EMC spend their money to collaborate with Dell, IBM and HP.
EMC separated their business to make easy to grow but Farro Fresh food only has own food business.
EMC are large scale business. Currently EMC 43000 employees but farro fresh food has small business and it has only 70 employees.
EMC is an international company but farro fresh food only a local company.
EMC is a bigger company, their revenue is high and risks are high as well, but Farro fresh food has small company and small revenue with small risk.
EMC is bigger company, so there is hard to get a job but farro has small company you can easily get a job.
In EMC, Mr.Tucci used much planned and risk taking leadership style, but in farro James draper used innovative and visionary skills.
In EMC Tucci analyses all the problem and then try to make the solution according to the problem but in Farro fresh food, James draper doesn't have time to think about some problem. For example GST price change.
In EMC change taking long time to take palace but in Farro it will take less time.
Evaluation:-after reading the article of EMC and analyses farro fresh food my own experience. I would say change was very effective and useful for both organisations. Because both organisations need change, according to their problems. On hand EMC sales goes down by 90% and if Tucci doesn't bring any idea, then EMC will be closed in next few months.otherside farro fresh food also need change because of competitions with others supermarkets and GST pricing up and Eftpos system.it is a serious matters which has to resolved by the time and James did it. Even farro fresh food is a small company but if they don't change by the time, and then this company also going to closed.
So, Change was effective and necessary for both organisations. Companies have to accept the change by the time.
Notes from Tutor.