Final Paper
Think of an organization you have worked for or one with which you are very familiar. Diagnose the need for change and present a plan to transform the organization, utilizing Kotter’s 8-Step Approach.
Include the following sections headings and additional sections as needed:
- Introduction
- Company Overview
- Diagnosis
- Kotter’s 8-Step Approach
- Conclusion
The Final Paper for the course must be submitted to the instructor by 11:59 p.m. of the time zone in which you reside on the last day of the class.
Writing the Final Paper
The Final Paper:
- Must be eight- to- ten double-spaced pages in length (excluding the title and reference pages) and formatted according to APA style as outlined in the approved APA style guide.
- Must include a title page that includes:
- Title of paper
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted
- Must include an introductory paragraph with a succinct thesis statement.
- Must address the topic of the paper with critical thought.
- Must conclude with a restatement of the thesis and a conclusion paragraph.
- Must use at least five scholarly sources.
- Must use APA style as outlined in the approved APA style guide to document all sources.
- Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide.
ANSWER
Introduction
Change management plan is described as any form of strategy or approached used when transitioning people, organizations, and teams through putting into use the methods anticipated to reorganize the utilization of resources, trade procedures, financial strategies, and any other means of operation that will redesign the company. These transformation management outline focuses on the entire body and the vital necessities that should be considered more essential, while alteration control can be utilized solely to determine the total number of individuals and teams affected by the company’s transition. Various disciplines are entitled to modification management process, and they include behavioral, social sciences and information technology, and business clarifications.
For an organization to transform, there is a need for the managers to update policies and steps that are significant in meeting the new-fangled requirements of the business. Various groups embrace modification management process as a way of educating the employees on the changes and assisting them through the entire transition process. When this process is applied accurately, adjustment management system eases the transformation with a structured approach that motivates the workers to adapt to the modifications. Moreover, employees should be accorded enough time to modify the new procedures of operations within the company, and holdovers from the previous methods bleed over into the fresh ones. Therefore, this paper will focus on the transformation management process applied in Bavarian Motor Works Company as a way of increasing marketing operations within the firm. Furthermore, it will concentrate on the organization summary, analysis, and use the Kotter’s 8-step method of transformation.
Company Overview
Bavarian Motor Works (BMW) is a modern German vehicle, sports car, motorcycle, and engine processing organization that was started way back in the year 1916 and has since then emerged to be the best-selling luxury automakers in the entire universe. The firm is combined with the Euro 50 stock market index with its headquarter located in Munich, Bavaria, and known for its production of both Mini and Rolls-Royce motor cars (Arsov, 2014). However, the organization manufactures motorcars from BMW motorsport group and motorcycles arranged under BMW Motorrad, electric vehicles which are regarded to fall under the BMW I sub-brand. The company is also famous for its eagerness in manufacturing some car chains that range from BMW 1 model to the modern BMW 8 model accompanied with their fittings to fulfill different customer’s wants. The organization produces different car models that vary when it comes to pricing, comfortability, and extravagance. Moreover, the cars are premeditated in a way that they all fit and adjusts to all types of roads with varied climate conditions. As observed by Arsov, A. (2014), the upcoming 8-series is expected to be more stylish than the seven series with pinched headlights, more space between the doors and rear wheel opening.
Pricing Structure
The pricing strategy applied within the company is significant in determining whatever the company will achieve as returns for the items sold hence evaluating the products that are raised within the assembly, commercial center marketing nature of the subject and the economic condition. The pricing of the company’s products is centered on various patterns with the major pattern refers to as “premium-station” which is essential in making the business unique and accessible in its numerous sectors thus triggering potential customers to buy and pay a relatively higher cost.
Promotions
Bavarian Motor Works (BMW) clients are comprised of persons who fall under the bracket of the upper middle class with an annual salary of $ 70000 with their age ranging between 30 and 70 and on most occasions are individuals who embrace new technology (Schrott, 2012). Since the company has a massive inquiry and expansion support, making the goods conversant to the clients and the wide ecological area will be accessed by the firm’s reputation concerning how it handles its customers. Besides, the business success entirely depends on the effectiveness of its advertising and marketing strategies which include the use of the TV infomercials and marketing billboards with the help of mottos such as “the ultimately strongest machine” and “sheer driving pleasure.” These poster methods focus on reaching out to the clients and other concerned individuals the level of luxury that the car provides as compared to other goods.
Target Market
The company has a strategic plan to expand its branches and the modern BMW 8-series products to South Africa and the whole Africa as a result of its developing technical skills and population. Since the firm exists in South Africa, enlarging the information technology operation midpoints, and Shared Service Center (SSC) located in Pretoria East would be effective. As noted by Arsov, A. (2014), South Africa is considered to be one of the most industrialized and expanding markets worldwide with an amalgamation of massively developed first-world economic set-up and a continuously developing market budget that has resulted in the evolution of great pioneering and dynamic surrounding. Moreover, the country is viewed to be a trade and industry center of the African content with a Gross Domestic Product (GDP) of R1.8 trillion (US$280billion). As emphasized by Schrott, P. (2012), South Africa tops the continent with its industrial creation of close to 40 percent of the entire Africa’s output, mineral products of close to 50 percent of the total production and still produces a majority of the continent’s electricity.
Diagnosis
Implementing transformation management plan in a company is inevitable and cannot be avoided at any cost more so when the organization focuses on gaining a solid competitive advantage over the other producers in the marketing niche. The process of planning and adopting organization alterations is a complicated procedure since re-engineering the entire firm is a massive challenge to the managers and workers. Due to the constant emerging competition in the automobile industry, there is a need for Bavarian Motor Works (BMW) to reorganize its marketing and operations strategies to acquire maximum profit and marketing advantage. Management plan started way back in the year 1990 in motor car manufacturing company such as Ford which is an automobile firm. Organization transformation program within BMW has allowed the company to maintain its profit level with less cut down of the workforce in demanding production times.
Through these changes, the organization has been able to penetrate into new markets through selling premium motor cars at a relatively lower price. The company has been categorized as the only premium car producer to manufacture the BMW 3-series and 5-series models in China locally (Schrott, 2012). Furthermore, the company has not only joined the Brilliance China Automotive Holdings Limited but also channeled over 500million Euros in China where the MINI series would be produced and sold locally. Therefore change management plan enables other companies to deal with the similar situations effectively.
A majority of automobile manufacturing firms operates under tight pressure today with the tremendous change in the marketing procedure after globalization due to stiff marketing competition, technological improvements and the change towards consumer-driven selling methods. It is also essential for the automobile companies to concentrate from being product-driven to become customer-driven and this is only achievable through proper restructuring and re-orientation of employees.
Kotter Eight-Step Strategy
As observed by Kotter, J. (2010), close to seventy percent of the entire critical modification efforts in an institution do not succeed since they are not inclined to following the general procedures essential to the effect on the nature of change that is to be made. In Bavarian Motor Works, Kotter’s eight step strategy is significant in transforming the entire operations within the firm since it creates a solid foundation for a long-term change that will involve enlarging the organization’s website. The eight step change model strategy will be of help to the company in implementing transition; the first three stages in the model forms the basis of coming up with the right climate for the transformation. Stages four to six link the change to the company, and stages seven and eight focuses on the implementation and merging of the modification.
Stage 1: Creating the required urgency
Transformation is much embraced when the entire firm together with the employees wants to archive it hence Kotter submits that for the transition to be effective, 80 percent of the company’s administration should encourage the whole process. Coming up with a sense of urgency concerning the reasons of transformation helps in the creation of purpose and get things on the move. There is a need for the BMW Company to come up with the meaning of urgency since it will highlight precisely the spark required to keep operations on the right track. Hence, it implies trying to look into the possible threats that may include competition, product quality, pricing and target market than coming up with scenarios on things that are likely to happen in the motor vehicle industry. There is also the need for the company to focus on some of the possible opportunities when accessing operations that are occurring in the marketplace. It is also important to keep the momentum steady once the process has been started since lack of urgency may ruin the procedure hence leading to increased resistance and conflict.
Stage 2: Creating an administrative alliance
Transformation requires not only managerial techniques but also steadfast leadership skills, commitment to the process, and necessary support from the employees and managers since leadership extends beyond just a title. BMW managers should seek out some influential individuals in the entire company whose powers originates from expertise, experience, status and political importance (Cameron & Green, 2015). The whole transition merger needs to operate as a team to form the urgency and the energy required to the development process and form the team through open discussion, examining the weak areas and dissent.
Stage 3: Creating an idea for adjustment
During the beginning of the transformation process, there is always some ideas and solutions floating around, with some of them being meaningful while others are less inspired hence there is a need for scrutiny. The ideas that will be of great significance to the organization should stand the test of coalition discussion hence the key is to be able to link these ideas to a vision that the workers can remember. A vivid vision will enable the employees to understand the reasons as to why they need to act promptly to the entire process since they will be able to see for themselves the things that the company is striving to achieve.
Stage 4: Communicating the vision
Vision communication procedures are significant in determining success hence any message delivered to the stakeholders should compete with other day-to-day operations within the organization. The information needs to be disseminated across various modes of communication at least 7 to 10 times before it is fully heard amongst other important messages hence the vision should be shared with all stakeholders. Moreover, it is essential to use the view daily as a compass in decision-making and problem-solving. It can be communicated through the company’s website which is the fastest and easiest way of disseminating information within the shortest time possible.
Stage 5: Encouraging extensive plan
It is necessary to do away with the fundamental obstacles to the change through discovering and managing resistance to transformation. Examine the processes and structures that are hindering the transition process, consistently monitoring the barriers to forward movement. It, therefore, means, changing the system that is likely to block the vision and replacing them with the structures of improvement. Do away with the problems and embrace the stakeholders to adopt the idea and help in moving the improvements forward.
Stage 6: Come up with temporary gains
The company is required to outline some of the quick wins that are significant in stabilizing the organization’s operations since it acts as a motivating factor to the workers in quest of the bigger goal of transformation in the institution. Failure to this, detractors and pessimists will take center stage to destroy and interfere with the modification procedures.
Stage 7: Build on the change
According to Kotter, J. (2010), many transformation methods do not succeed due to the declaration of victory that is made at an early stage; however, a first win is not enough. Implementing new initiatives recommends a change in the systems, structures, and procedures that do not merge with the overall new scheme. Continuous improvement should, therefore, be the mantra; hence, successful or failure will present a chance to scrutinize what operated, what did not, and those that should be upgraded.
Stage 8: Present the modifications in the trade culture
According to Tools, M. (2011), for an organization to embrace any transformation, it is necessary for it to stick and become part of the culture of the company. Also, how operations should be carried within the firm, and for change to be part of the culture, the managers should live the values and vision of the daily activities. These ideas and values should be transformed in the context of the everyday actions and conversation in the company. Additionally, the change should be seen within the industry and should be demonstrated through conversations and actions of the leaders as an indication of their support towards the change
Conclusion
The change models have their disadvantages and advantages even though their goal is to ensure that an organization in transition gets to understand the impact that the change will have on the employees and maintains a smooth transition. It is therefore advisable for a team to allow proper time for adaptation process and be transparent about these changes since they will boost the company and the employees.
References
Arsov, A. (2014). Who is Stronger? German Stock Exchange Xetra or BMW?–The Case of 2014.
Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Kotter, J. (2010). Kotter’s 8-step change model. Mind Tools. Retrieved from http://www. mindtools. com/pages/article/newPPM_82. htm.
Schrott, P. (2012). Analysis of the Internationalisation Strategies of German Car Companies in China: Analyse der Internationalisierungsstrategien deutscher Automobilhersteller in der Volksrepublik China. GRIN Verlag.
Tools, M. (2011). Kotter’s 8-step change model: Implementing change powerfully and successfully. Mind Tools-Management Training, Leadership Training and Career Training.