SWOT Analysis
Strengths- These refer to the internal and external features of a business organization that are responsible for giving it a valuable advantage over its competitors, e.g. QLG already has a good number of loyal customers and its products are well known in the market. Having this as its strong features, QLG is capable of using them to improve its performance and increase its sales. Basically, these features can be used by QLG to gain competitive advantage against the upcoming businesses.
Weaknesses- These are the environmental features of a business that are capable of causing a disadvantage to its operations when compared with its competitors e.g. outdated production methods. The business is still using the same production methods while the new businesses are using the new technology with new methods of production. These can be the issues that are causing its products to be of less quality than those of its competitors.
Opportunities- Are the chances available in a business’s surrounding environment that can later become add advantage to the business operations, e.g. QLG has a chance to expand its markets share and segment a much as possible. By doing this, the business can increase its sales and performance which leads to increase in profits in the end.
Threats- Are the characteristics of a business organization that can cause trouble or problems and challenge to its success, e.g. the rival businesses that are entering the marketing and overtaking QLG’s market share. These threats can bring an end to QLG or cause extremely poor performance. Such a threat means sharing the market which means sharing customers. The chances QLG dropping its performance levels is very high.
Opportunity to change its consumer demographic from selling only to middle class customers but concentrate on all possible consumers as well as other business that may need the products.
Opportunity to change its market share and market segment by increasing its market to more than 30km wide and selling the product in lump sum or wholesale.
The product itself so that it can be able to produce better quality product
Its production technology and methods to lower the high costs being incurred
The QLG opportunities for change and development listed above can only be achievable with the help of the business managers. However, the opportunities on change have to be prioritized for the business to be on going. When the business uses its chance to change its consumer demographic and the market share and segment, then it will definitely be motivated to device methods of developing the product and the production methods (Chew et al, 2008). Since the business managers are usually the people who make decisions, provide finances and other materials needed for any business operation, then they will certainly give the change and development idea support with an aim of making the business successful (Aljohani, 2015). However, the convincing will be required so that they can actually believe that the opportunity for change and development are worth giving a short. Some of the reasons that the managers can be given for them to support the operation include: giving them the facts about their employees losing jobs in case the business closed, QLG’s objectives, goals and aims, the responsibility of the business to the society, its customers and employees, the fact that they will also lose their jobs to name just but a few reasons.
First of all, QLG should try to change its customer demography, market share, and segment with its current product. This will help know how effective their current production method is. However, that should not affect its chance to improve its production methods. Therefore, the business should put the change on the demography, market share and segment as a priority as a test of the production method and technology. The reason for implementing demography change first is to ensure that it has enough loyal customers to buy its products even in the future after they improve the production methods.
The idea of changing the consumer demographic for QLG’s product can be tested by first of all trying to vary the prices even more than they currently are, so that the low class consumers can afford the products. This means that the business can have some products with high prices according to their quality, packaging etc. and others low to be able to accommodate both the high class and low class earning consumers.
The idea of increasing its market share and segment by selling more than 30km. QLG can sell even beyond the 30km. which means that it can reach even consumers in other cities and town which will increase its market share.
The idea of developing its product will be tested by coming up with a product with a better quality and which has been produced using different production technology and compare it with its current product. If the new product is liked than its current product then the business should focus on producing the quality of the new product.
Risk assessment and cost benefit analysis for changing the consumer demography
There is a risk for the business in case it tries to change its demography. According to Pinkse et al (2016), if the business is targeting all classes of consumers which in that case they will vary the product prices, they may lose their current customers who are the middle class. This is simply because the current consumers may think that the product’s quality has been interfered with and that’s why the prices are different. The probability of this risk occurring are low because when the production methods are improved, the product quality will certainly improve.
The cost benefit analysis of the business will vary as well. If QLG loses a large number of its current consumers and gain few new consumers, then the business will have lost a lot of revenue but if it gains more new consumers and loses a few of its current consumers the revenue will be high. These two scenarios will occur if QLG decides to change its consumer demography as stated above. The chances for this risk happening are also moderate. This is because the change in demography indicates a 50% chance of success or failure.
Risk assessment and cost benefit analysis for developing the production technology
The risk that may be associated with such a step is the risk of the technology failing to achieve its purpose, i.e. fails to produce the exact quality of product that is anticipated. This can be caused by either lack of experts to work with the technology or lack compatible software or hardware systems and materials to name just but a few things (Khan et al, 2013). The probability of this risk occurring is very low as well because better technology and production methods means better product quality.
In the case of the cost benefit analysis, the business may choose to develop its technology which can be immensely expensive but the technology fails to bring any effects to the business. This basically means that the business will not have any increase in its income like earlier. This scenario causes the costs to be higher than the revenue which means that the business’s cost benefits analysis is low and vice versa. The chances for this risk occurring are high because with improvement in technology means more cost expenses.
|
action |
risk |
description |
|
Change consumer demography |
Risk of losing customers |
moderate |
|
Improving production technology |
Failure of purpose achievement |
low |
|
Improving production technology |
Increase product prices |
high |
Creditors: Agencies or individuals who give credit to businesses in terms of funds or donations.
Employees: The people who work in a certain business organization and get paid for their services.
Business owners: People who own the organization itself.
Government agencies: Are responsible for the provision of the legal and corporate governance advice for the business and its operations.
Suppliers: Are the providers of raw materials or inputs for business.
Consumers: These are simply the users of a certain product or service.
Financial advisor: This is a person who is skilled, experienced and is an expert on finance management and usage especially when businesses or individuals want advice on how and what to invest in.
Investors: The parties that give donations or rather those who fund a business to be established. By consulting an investor, one will know in case they decide to change or develop their business they will be able to attract new investors besides keeping their current investors.
Change Management Project Plan
Proposed Change- Change of the consumer demography
Objective- To be able to cover all the types of consumers with varying incomes in the society, i.e the high, middle and low class earners.
Resource and Budget Requirements- The resources needed for this change are the new consumers, price tags, laborers (e.g. sales people and promotion experts), new suppliers (to supply more inputs so that the business can produce enough products for the new consumers).
The budget estimation will be as follows:
Price tags- $250,000
Employee salary- $2500, 000
Raw material costs-$1million
Promotion costs- $100, 000
Service outsourcing- $250, 000
Travel costs- $100, 000
Advertising- $100, 000
Legal fee- $ 50, 000
Miscellaneous expenses- $200, 000
Total Budget= $4, 650, 000
Change Methodology- QLG business will focus on varying the product prices so that all consumer classes can be able to afford. The prices will be changed according to product quality, amount as well as packaging. That way, the business will be able to expand its consumer demography from selling to middle class consumers only but also will be able to reach the low and high earning consumer classes (Forsyth, 2012). I will use ADKAR change methodology. This method will enable the managers and employees focus on what is most important; which is the product and themselves. When employees are included in change determination, then the process becomes easier and more adaptable.
Implementation of Change Methodology- The methodology will be implemented through the use of these operations and activities; each and every product will have a price tag stuck on its top. Also, there will be promotions and immense advertisements being done around the area as well as outside the town. The company will also be rewarding the customers by offering the discounts when they purchase the item with high price. Through this, the employees will be able to reach many more consumers than before. The above adjustments on the product prices and marketing aspects will help the business to channel its efforts towards the product and consumers. Additionally, the management will concentrate on ensuring that every employee is aware of the methodology, has the desire to use and implement it, have the knowledge, ability and reinforcement to implement the methodology. The managers will ensure that the employees are ready and trained for the change. This will inflict change in the part of business management.
Approval/Reporting Protocol- The process will be approved by the business top managers and will also have the stakeholders’ consent. The reporting will be done by the sales team leaders of the business after every two days.
Conducting Training conferences- the stakeholders will attend a training conference where by they will be educated on the importance of the change for the business and be equipped with any other information regarding the change. The trainings were carried out by professionals and expert advices. The stakeholders were given the opportunity to note down points if desired as well as ask questions for participation purpose. This enabled the stakeholders to understand more about the importance of the desired change.
Meetings were also held to help the stakeholders bond with each other, share their ideas and air out their opinions concerning the change to the managers and other business decision makers. The meetings were held after every two weeks. This gave the stakeholders a chance to research on the reasons for change and if it was necessary. Additionally, they would consult each other freely outside the group meetings for further clarifications and understanding.
The management plan will be effective and efficient if all the requirements are met. The organization should ensure that especially the main requirements like finances and employees are available and capable (Parveen et al, 2016). The methodology should be well emphasized and done by experienced people, especially in the case of advertising and promotions. The objective of the plan is certainly achievable if the requirements are met.
The capturing of such aspects will be done by making sure that the change is successful and that it is effective and efficient. Also, as the change goes on, videos and pictures will be taken and hanged on the business notice boards for future reference. Additionally, the most hardworking employees will be rewarded.
The change will be reviewed by analyzing the whole process of change to ensure that everything has been covered. This relates to identifying the success and failures of the process. Also, I will include looking back at the business objectives and goals set before the change and ensure that they have all been achieved. The change should be able to improve the quality of the product, take of the employee who may have lost their jobs, create competitive advantage for QLG, reduce the costs of production and product prices and lastly increase the market share and segment for the business. Successful implementation will indicate increase in business profits and product sales as well as customer numbers and loyalty.
The modifications to be made (in case of any mistakes) will be in accordance with the failure. For instance: if it is the lack of enough funds to carry out the entire change process, then the business will ensure that enough more funds are set up for the next project. The business will also ensure that all the stakeholders have understood the importance for the change and approved it. The business manager must have a clear understanding of what should be involved for the chance to be effective and efficient.
Change management process is a step by step procedures and activities that a manager must follow when working on a change project in order for them to achieve the expected or set goals and objectives.
Creativity improvement theory is basically whereby an individual is able to think outside the box or rather think beyond the general level. Therefore, it is a theory that helps an individual improve their own personal ideas and thinking capacities.
Innovation theory is whereby an individual is able to come up with something (product, idea, method etc.) completely new and has not been devised by anyone else before.
Continuous theory is whereby an individual continuously develops a business by thinking in the same manner or doing something in the same manner for a long time.
Promotion of the value of:
c)Sustainability in your business- Ensure the availability of funds, carry out a thorough SWOT and PEST analysis for your business, include the stakeholders (customers, employees, suppliers, investors, creditors etc.) in your decision making processes, ensure that the external environment does not cause any negative effect to business operations to name just but a few ways.
To ensure success recognitions, I would:
Impact of organizational behavior and external environment to change
Organizational behavior is simply the different ways in which employees relate or interact with each other in a business organization. This can impact change either negatively or positively. If the employees work together and have positive relations, then the change project will certainly be easy to manage and achieve (Morgan et al, 2008). However, if the employees have negative relations or rather, they have problems working with each other, then change in the organization will be almost impossible to achieve.
The external environment is the aspects and features surrounding the business on the outside. They include features like the suppliers, customers, investors, financial institutions, public perceptions (Voase, 2013), economy and legal policies among other things. If these aspects negatively affect the business (whether directly or indirectly) then the possibility of change will also be impossible and if they positively affect the business, change will be easier to achieve.
References
Choudhury, R. (2013). Managing Change. Journal of Hotel & Business Management, 03(01).
Entrepreneurship in Family Firms, Business Families, and Family Business Groups. (2015). Journal of Small Business Management, 53(4), pp.1290-1290.
Forsyth, P. (2012). Managing change. London: Kogan Page.
Khan, S. and Ashta, A. (2013). Managing Multi-Faceted Risks in Microfinance Operations. Strategic Change, 22(1-2), pp.1-16.
Loader, D. (2007). Operations risk. Oxford: Butterworth-Heinemann.
Managing change. (2007). Boston, Mass.: Harvard Business School Press.
Morgan, R. and Page, K. (2008). Managing business transformation to deliver strategic agility. Strategic Change, 17(5-6), pp.155-168.
Piercy, N. (2012). Business history and operations management. Business History, 54(2), pp.154-178.
Pinkse, J. and Gasbarro, F. (2016). Managing Physical Impacts of Climate Change: An Attentional Perspective on Corporate Adaptation. Business & Society.
Voase, R. (2013). The Television Entrepreneurs: Social Change and Public Understanding of Business. Managing Leisure, 18(3), pp.252-254.
Parveen, M., Maimani, K. and Kassim, N.M., 2016. A comparative study on job satisfaction between registered nurses and other qualified healthcare professionals. International Journal of Healthcare Management.
Chew, Y.T. and Choo, S.M., 2008. A Study of the Change Management and Challenges in a Bank. Research and Practice in Human Resource Management, 16(2), pp.100-118.
Aljohani, M.R., 2015. Change Management. International Journal of Scientific & Technology Research, 4(8), pp.319-323.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download