Organizational change -A Dixons Group case study

Presented By:

Shaibal Halder

Ahmed Farhad

Organizational change

Organizational change is about the process of changing an organization's strategies, processes, procedures, technologies and culture, as well as the effect of such changes on the organization.

It Can Be… • In the structure of an organization

• In the structure of an organizational operation and size of a workforce

• In working hours or practices

• In the way roles are carried out

• In the scope of a role that results in a change in the working situation, structure, terms and conditions or environment.

Change We Need!!

For What??

• Sustainable development

• Achieve Organizational goals

• Business growth

Introduction

• The Dixons Group developed a business strategy which enabled it to achieve its corporate aim 'to be number one in the electrical and electronic market-place'.

..Business Diversification • Diversification is a type of growth strategy where a

company develops new products for existing or new markets.

• The nature of key decisions made by Dixons within the process of change as it built a chain designed to meet the requirements of different groups of customers.

Strategic decisions • Strategic management is the management of an

organization’s resources to achieve its goals and objectives. • It involves setting objectives, analyzing the competitive

environment, analyzing the internal organization, evaluating strategies and ensuring that management rolls out the strategies across the organization.

Strategic alternatives • Differentiation In cases where competition is stiff because of the proliferation of similar products, a company can come up with features that differentiate their products or services from those of rivals. • Diversification Diversification is a type of growth strategy where a company develops new products for existing or new markets. • Adjacent Businesses The adjacent businesses strategy involves entry into a niche where a core business is operating at its full or near-full potential and generating surplus cash.

Opted for a strategy

Its internal strategy involved further development of Dixons stores and the creation and development of The Link. Dixons’ external acquisitive strategy led to Currys, Mastercare and PC World becoming part of the Group, where they could also be further developed.

Acquisition • Acquisition enabled Dixons to take over a large company which

already existed in the electrical marketplace (Currys) and also to acquire a developing organization with a bright future (PC World).

• The 'group' concept enabled Dixons to develop its business across a horizontal plane which provided growth an at the same time enabled it to stay close to its expertise in electronic and electrical retailing.

• Acquisition also allowed Dixons to benefit from synergy.

Meeting the demands of the customer

In an increasingly complex retail environment it also became clear that not all customer requirements and purchasing habits were the same!

…Meeting the demands of the customer

In an industry which is fast-changing, organizations need to know their customers and their changing needs and requirements.

The biggest threat for any organization is to fail to adjust to changes in the market-place.

Three Barriers of Dixons

• Coping with change: recruiting and developing the people needed to adapt to a changing marketplace and rate of current growth.

• Proximity to customers: a challenge facing every retail organization - the ability to meet costumer needs.

• Product knowledge: the product knowledge of sale staff is the key to increasing market-share.

Future Market Developments!!!

Business strategies helps organizations to use their resources in a changing business.