Assessment Task 1

What were the driving forces behind Kodak’s decision to transition to digital photography?

Answer:

Kodak was in a difficult economic situation in the beginning of the 21st century. From the late 90ties the sales for traditional photography equipment’s were declined continuously. The reason was a rapid development of new digital technologies and a fast switching of customers to digital photography. Kodak stood before a big challenge and decided to enter the new digital photography market. This market is very competitive and requires Kodak concentrating all its forces to gain market shares and profits. The company must be able to develop new products and business models in an extremely short time, differentiate itself from competitors, build a strong brand in the new market, save cost through restructuring and optimizing, ensure profits by thin profit margin and please the shareholders

What were the major issues faced by Kodak in the transition process?

Answer:

• Problems faced by the Eastman Kodak Company in the process of changing to Digital technology in printing
• It failed to establish market share and market leadership in the Digital sector
• It is threatened with either immediate or rapid diversification in technology
• The photography equipment industry was dominated by few large companies which were different in various industry segments 
• The photography equipment market was predicted as a commodity market with high competition, rapid growth, good profits for leader, but not for the follower. Therefore, product differentiation and innovation as well as associated pricing were very important for this industry
• High number of different competitors in various industry segments

Now that you know what happened to the company, what went wrong at Kodak from the Change Management perspective?

Answer:

Kodak started facing difficulties in 1984, when the Japanese firm Fuji Photo Film Co. invaded on Kodak’s market share as customers switched to their products after launching a 400-speed colour film that was 20% cheaper than Kodak’s. Secondly, during 1980s the company failed to recognize the change in the environment and instead followed and sticked to a business model that was no longer valid for the post-digital age. After the management realized the change and react accordingly but it was too late

What would have been potential barrier to change at Kodak?

Answer:

• Kodak invented the digital camera and yet through a combination of failing to embrace its own creation, an over focus on competition with Fujifilm and the fall in chemical photo film sales, the business is a shell of its former self
• Kodak was subject to intense competition as with most forms of digital hardware, the dominant forces were many players, low entry barriers, falling real prices, and commoditisation
• A difficult technology transitions

What would you do if you were managing a change project at Kodak in a management role?

Answer:

I must build my capability (as manager) to manage change and adapt my organisation. Motivating people, working with them to help them understand the need for change, and supporting them through personal and sometimes difficult change is a crucial component of making change a success. This has to fight for management attention alongside other, important tangibles such as new processes, structures or facilities. Change involves moving an organisation from its current state, through a transition phase, to a desired future state

Assessment Task 2

Develop a Change of Management Plan

Identify and explain the need for change

Franchise Entertainment Group, the operator of the Blockbuster and Video Ezy chains in Australia and Asia, has swooped on the assets of collapsed DVD retailer Blockbuster. Therefore, FEG has been deciding to revamp the company and introduce two new services in a forward-looking strategy to tackle a growing threat of domestic competition. The two services are introducing to community the shopping centre kiosks for DVD rentals and downloadable movies through its website that expire after 48 hours

Explain the likely impact of proposed changes on the company and its operations

The changes will impact on several thing for the company, such as the need for kiosk expansion three times bigger than the previous kiosk, reduction in service call and reduction in inventory fraud by 15% and 30% respectively. The change will also impact on cost saving either on labour by 20% and IT infrastructure for software and hardware

Identify change requirements and develop specific and measurable objectives for the project

• Monitor and manage FEG fleet of kiosks
• Maintain customer satisfaction
• Reporting for corporate and franchise personnel

An analysis of trends in the external environment using an appropriate tool/technique (e.g. Consumer preferences, technology etc.)

PEST Analysis

Competitor analysis (at least two comparable competitors)

Netflix

Netflix motion pictures, including movies and television programs are distributed broadly through a variety of channels, including movie theatres, airlines, hotels and in-home. It is streaming subscribers has been constantly increasing over the years, surpassing the 100 million mark in the second quarter of 2017. Moreover, members get the benefit where they can watch original series, documentaries, feature films, as well as television shows and movies directly on their Internet-connected screen, televisions, computers and mobile devices. It offers its streaming services both domestically and internationally

Redbox

Redbox is an exclusive renter of $1 per day new and old DVD movies. Redbox’s operating profits allowed for the low costs of the $1 per day rental fee per DVD. Redbox offers simply touch screens to select and rent movies within convenience locations in high traffic areas such as McDonald, 7-11, Walgreen’s and various “brick and mortar” kiosk locations. By 2010, there were Redbox vending kiosks in all states in the continental US, Puerto Rico and the U

Specify major change requirements in company’s operations due to planned changes

Blockbuster’s current strategies to reach their target market are focused on commercials, their website, social networking websites such as Facebook and Twitter, telephone, mail, in-store promotions, and also through applications for smart phones and tablets

Cost benefit analysis

Blockbuster has taken advantage of this change in the industry by providing Blockbuster Total Access Premium and Blockbuster Total Access Mail; these plans are available to all current and new subscribers to Blockbuster online. Finally, the elimination of late-fees, they have successfully warded off competition from significant competitors, excluding Netflix. The company operates in the US. The company is headquartered in Los Gatos, California and employs about 2,670 people. The company recorded revenues of $1,205.3 million in the financial year (FY) ended December 2007, an increase of 20.9% over 2006. The increase was primarily due to a substantial growth in the average number of paying subscribers for online DVD rentals. The operating profit of Netflix was $91.2 million in the FY2007, an increase of 41.5% over 2006. The net profit was $67 million in FY2007, an increase of 36. 4% over 2006.

Risk analysis and risk mitigation strategies

A communication or an education plan to promote the benefits of the change to the organisation

Communication through the meeting will include presentation of project plan to the management of Board of Directors of FEG business presentation and receiving their suggestions and recommendations for the project plan in order to obtain approval from them

The meeting with the employees including the trainers and other staff will be done in order to define the roles and responsibilities of each of them for implementing the changes. The Activities to be performed by them will be defined along with determination of expectations for achieving the organizational objectives

Perceived barriers to change and strategies to overcome the barriers

Need for staff training and learning to implement the new initiative

Strategies for implementing or actioning the change at the company and its stores

• Keep all staff members connected to the project plan
• Engage its employees where they will become emotionally engaged in the project process
• Prepare the organisational culture for change and innovation
• Ensure that all employees understand the basis of the strategic process and prioritise project goals

Resources required for implementation of the project (project resources)

Roles and responsibilities of team members

Team protocols and rules

Notification of absence

An employee who is too ill to attend work is required to notify his/her immediate supervisor as soon as practicable of the inability to attend work and the likely duration of the absence.  This notification is required to allow for work to be re‐ scheduled and for alternative staff arrangements where appropriate

Non-Attendance

Non‐attendance refers to staff taking unscheduled periods off work for a variety of reasons which may include minor ailments, caring for dependants or attending appointments, bereavement leave or other unanticipated periods of leave.  Absence for significant periods due to illness or injury or other reasons are also included

Manager responsibilities

Managers are responsible for approving sick leave in relation to notification of absence and evidence of incapacity as per the applicable award/agreement/procedure.

Employee responsibility

Ensure that he/she is aware of and adheres to the FEG procedure with respect to the taking, notification, certification and documentation of personal sick leave

Managing unplanned absences or non-attendance

Upon receiving notice of non‐attendance

1. Record the details of the discussion with the employee (name, position title, date & time notified, reason for and brief details of absence, anticipated return to work date if known)
2. Enquire if the absence is the result of an accident or grievance in the workplace and ensure appropriate incident form or other supporting documentation has been completed
3. Advise other staff, as relevant for operational reasons, of the absence and anticipated return date if known, and make operational adjustments as required
4. If there has been no notice received and the required notification time has passed or if the Manager has been made aware indirectly, the Manager may attempt to contact the employee, seeking advice from people & Culture as required
5. Keep written records of the initial contact with the employee and any subsequent discussions during the period of absence
6. Initiate a discussion with the employee immediately following each absence.  This should be a support session, enquiring about the wellness of the employee and the support if any the employee needs to maintain attendance

Team dynamic and delegation tasks

• Shared team leader and flexible leadership
• Prepare and present a brief, informative presentation to a small group
• Learn the essential elements of a functioning team
• Work as a group to accomplish a task
• Learn some important aspects of Team building and Team functioning

 

Assessment Task 3

1. Describe Prosci’s change management methodology, including the ADKAR model, in your own words

Answer:

 Prosci's model of individual change is called the Prosci ADKAR Model, an acronym for awareness, desire, knowledge, ability and reinforcement. ADKAR focuses on successful change and by implementing these steps, Prosci's methodology is expressed through change management activities, diagnosing gaps, developing corrective actions, and supporting managers and supervisors

2. Briefly describe the four stages of a Change Curve

Answer:

Denial: it is for the leader to help the people to understand what is happening and how it affects them

Resistance: during this stage of the change curve feelings like anger, self-doubt, fear and anxiety can build up, which can significantly stagger the progress of the change process, besides causing the morale and productivity to take a nosedive

Exploration: this is where people start acting and learning new ways so as to constructively contribute towards the change

Commitment: work activities return to normal as team members begin to co-operate whole heartedly

3. Briefly describe at least four external drivers of change

Answer:

• Economy: The performance of business depends up on the economic environment. At any type of financial fluctuations like inflation or deflation badly affect the business
• Political influence: The political forces are directly bearing on the functioning of the business
• Technologies: Technology helps in performing the operations in much better and cheaper way. The customer expects higher specifications, so it can maintain only new technologies
• New competitor: New competitors make more trebles for other companies, because they introduce new technology, ideas, innovations and customer satisfied goods and services with reasonable price

4. Briefly describe at least four internal drivers of change

Answer:

• Organisational culture: Organisational behaviour can be defined as the systematic study of the behaviour and attitude of both individual and group within the organisation
• Financial management: In a company the finance management take decision about fund distribution like purchase of raw materials, introduce new assets, proper fund distribution. In these reasons financial management has a powerful stand in the internal driving force
• Poor delivery: Poor customer service or delivery is a universal problem that impacts on the bottom line and profit margins in all types of industries, business and services throughout the world
• Competition: Globalisation has sharpened the competition

5. Draw a diagram of the three stages and their components of the Change Management Process