1. How are these four change stories different from each other along the seven d
ID: 465559 • Letter: 1
Question
1. How are these four change stories different from each other along the seven dimensions of organizational change? Please briefly describe the nature of each organizational change using the table below. 2. Which change would be most challenging to manage? Based on your analysis above, please rank order the four changes from the most challenging to the least challenging and briefly explain why.
Briefly comment on how this analysis has either confirmed or changed your initial assessment of challenges in managing these changes. HP IBM Kodak McDonald's Scale Scope Depth Continuity Direction Mode Speed.
HP IBM Kodak McDonald's
Scale
Scope
Depth
Continuity
Direction
Mode
Speed
Explanation / Answer
Story for HP
The company was founded in a one-car garage in Palo Alto by William "Bill" Redington Hewlett and David "Dave" Packard, and initially produced a line of electronic test equipment. HP was the world's leading PC manufacturer from 2007 to Q2 2013, after which Lenovo remained ranked ahead of HP. It specialized in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines included personal computing devices, enterprise and industry standard servers, related storage devices, networking products, software and a diverse range of printers and other imaging products. HP marketed its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. HP also had services and consulting business around its products and partner products.
Story for IBM
The company originated in 1911 as the Computing-Tabulating-Recording Company (CTR) through the consolidation of The Tabulating Machine Company, the International Time Recording Company, the Computing Scale Company and the Bundy Manufacturing Company. CTR was renamed "International Business Machines" in 1924, a name which Thomas J. Watson first used for a CTR Canadian subsidiary. The initial "IBM" followed. In 1949, Watson created IBM World Trade Corporation, a subsidiary of IBM focused on foreign operations. Securities analysts nicknamed the company Big Blue for its size and common use of the color in products, packaging and its logo.
In 2012, Fortune ranked IBM the second largest U.S. firm in terms of number of employees (435,000 worldwide), the fourth largest in terms of market capitalization, the ninth most profitable, and the nineteenth largest firm in terms of revenue. Globally, the company was ranked the 31st largest in terms of revenue by Forbes for 2011. Other rankings for 2011/2012 include 1 company for leaders (Fortune), 1 green company in the United States (Newsweek), 2 best global brand (Inter-brand), 2 most respected company (Barron's), 5 most admired company (Fortune), and 18 most innovative company (Fast Company).
IBM has 12 research laboratories worldwide, bundled into IBM Research. As of 2013 the company held the record for most patents generated by a business for 22 consecutive years. Its employees have garnered five Nobel Prizes, six Turing Awards, ten National Medals of Technology and five National Medals of Science. Notable company inventions or developments include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the Universal Product Code (UPC), the financial swap, the Fortran programming language, SABRE airline reservation system, dynamic random-access memory (DRAM), copper wiring in semiconductors, the silicon-on-insulator (SOI) semiconductor manufacturing process and Watson artificial intelligence.
IBM has constantly evolved since its inception. Over the past decade, it has steadily shifted its business mix by exiting commoditizing markets such as PCs, hard disk drives and DRAMs and focusing on higher-value, more profitable markets such as business intelligence, data analytics, business continuity, security, cloud computing, virtualization and green solutions, resulting in a higher quality revenue stream and higher profit margins. IBM's operating margin expanded from 16.8% in 2004 to 24.3% in 2013, and net profit margins expanded from 9.0% in 2004 to 16.5% in 2013.
IBM acquired PwC's consulting business (2002), SPSS (2009) and Kenexa (2012), also spinning off companies like printer manufacturer Lexmark (1991), and selling off to Lenovo its personal computer product line (2005), plus its x86-based server businesses (2014). Also in 2014, IBM announced that it would go "fabless" by offloading IBM Micro Electronics semiconductor manufacturing to Global Foundries, a leader in advanced technology manufacturing, citing that semiconductor manufacturing is a capital-intensive business which is challenging to operate without scale. This transition had progressed as of early 2015.
Story of Kodak
Kodak provides packaging, functional printing, graphic communications and professional services for businesses around the world. Its main business segments are Digital Printing & Enterprise and Graphics, Entertainment & Commercial Films. It is best known for photographic film products. During most of the 20th century Kodak held a dominant position in photographic film. The company's ubiquity was such that its tagline "Kodak moment" entered the common lexicon to describe a personal event that demanded to be recorded for posterity.
Kodak began to struggle financially in the late 1990s as a result of the decline in sales of photographic film and its slowness in transitioning to digital photography. As part of a turnaround strategy, Kodak focused on digital photography and digital printing and attempted to generate revenues through aggressive patent litigation. In January 2012, Kodak filed for Chapter 11 bankruptcy protection in the United States District Court for the Southern District of New York. In February 2012, Kodak announced that it would cease making digital cameras, pocket video cameras and digital picture frames and focus on the corporate digital imaging market. In August 2012, Kodak announced the intention to sell its photographic film (excluding motion picture film), commercial scanners and kiosk operations as a measure to emerge from bankruptcy.
In January 2013, the Court approved financing for Kodak to emerge from bankruptcy by mid-2013. Kodak sold many of its patents for approximately $525,000,000 to a group of companies (including Apple, Google, Facebook, Amazon, Microsoft, Samsung, Adobe Systems and HTC) under the name Intellectual Ventures and RPX Corporation. On September 3, 2013, the company emerged from bankruptcy having shed its large legacy liabilities and exited several businesses. Personalized Imaging and Document Imaging are now part of Kodak Alaris, a separate company owned by the U.K.-based Kodak Pension Plan. On March 12, 2014, it announced that the Board of Directors had elected Jeffrey J. Clarke as Chief Executive Officer and a member of its Board of Directors.
Story of McDonald's
McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 36,538 outlets. Founded in the United States in 1940, the company began as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. According to a 2012 BBC report, McDonald's is the world's second largest private employer—behind Walmart—with 1.9 million employees, 1.5 million of whom work for franchises.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies and fruit.
Nature of change
As per the above table the nature of change for four companies are different and can be broadly classified under below four categories.
Process change HP, Kodak, IBM
System change Kodak IBM,HP
Structural change Kodak
Organizational change Kodak Mcdonald’s
Most challenging change
Speed is the most challenging to manage as organization needs to match with the pace in which world is changing as it developing world is adopting technology and which is making the world change so fast that every organization needs to be on toe to match the change and if any organization will miss changing matching the speed of world it will be left far behind.
Rank order the four changes from the most challenging to the least challenging
Category
HP
Scale
8
Continuity
8
Depth
7
Direction
7
Mode
7
Speed
7
Scope
3
Category
IBM
Scale
9
Depth
9
Continuity
8
Direction
8
Mode
8
Scope
7
Speed
7
Category
Kodak
Scope
8
Depth
6
Scale
6
Continuity
6
Mode
6
Speed
5
Direction
7
Category
McDonald's
Scale
9
Scope
9
Depth
9
Continuity
9
Speed
9
Direction
8
Mode
8
Category HP IBM Kodak McDonald's Scale 8 9 6 9 Scope 3 7 8 9 Depth 7 9 6 9 Continuity 8 8 6 9 Direction 7 8 7 8 Mode 7 8 6 8 Speed 7 7 5 9Related Questions
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