The importance of organizational change for small businesses

Critically evaluate two different change tools for their effectiveness in two different industries.

Organizational change is a reviewing form of modifying the business for a better change. In case of small business, they need to change their business formation for the development of their market position. In such situation, organization change is important as the change brings development and provides a sustainable condition to business. In this paper two organization has already been selected are Adidas as the manufacturing company and Pan Pacific as the service company.

Socio-cultural tool develops the social aspects of the business. In modern business the acceptance of social need and people attraction about the product is important. Most of the companies make a survey before entering their product in that genre of the society, the reason behind the survey is to determine the social acclaim of this product and which are the technological aspect that people want from the company. Technological innovation is expected from the company to sustain their business in the globalized world. Another tool is the high-performance work experience and this tool provides competitive advantages for the company. In case of good business environment selecting good employees, retaining of those employees’, and motivating them through better work culture is important for the enhancement of business.

The essay explores that relationship of Adidas (Adidas Singapore: Official Online Store 2018) with socio-cultural aspect and makes an effective usefulness of Pan Pacific (Pan Pacific Singapore 2018) with socio-technological and high-performance work experience. These tools are so much effective for these industries that for the enhancement of their business most of the companies using this organizational change.

The scope of the essay is to deliver the legitimate reason that determines the key areas of these business industries and state the effective changes that needed to be implemented for the better application in business.

The first change tool is the Socio-technological tool and in this globalized business acceleration, this change is very important for the sustainable business condition. The system harnessing people technological aspect and provide a solid organizational structure that provides good ratings in a globalized market. The main focus, in this case, persists on the joint optimization that achieving both the excellence and quality of the product. If product quality is good people love to have those kinds of things (Cummings, Thomas and Christopher 2018). Social understanding is one of the major aspects of this case; they need to know their target market and who are the people can afford their product. So survey the market as per the socio-economic standard is also important. In case of manufacturing company Adidas, their products are high in quality and price. They have a certain starting range which is relatively much higher than other parallel companies, but they have different ranges of customers too (Benn et al. 2014). Players, Businessman, Executives of government or any wealthy person can afford their quality shoes, bags, and accessories. Technological amendments in their products make them richer and develop their market position in this particular field. So a division is there at the level of socio-cultural amendments. But the problem is stated in case of service industries like Pan Pacific. The hotel is one of the major hotels and they always want that all kinds of people come to the hotel and enjoy their services and facilities. The problem is consisted hereon, as they have a dilemma to set the price range for everyone. That is the reason; they have segregated their rooms and services for a different level of people. From the market study, the hotel authority knew that 47% people in Singapore can afford cherishes life but the mediocre people are not less in number so for them a different section has been arranged by them (Burke and Warner 2017).

The use of socio-cultural tool in business development

Another factor is dealing with high-performance work organization. This is a conceptual framework that managers used to decide their ultimate focus to improve the organizational performance. The improvement needs to be sustainable and that also instruct the positional development of the organization (Brown, Kerry and Stephen 2012). Designing a specific variant in the framework and input experiences and knowledge to expertise the job effectively is the main concern for this tool. High-performance notices in case of Adidas in their productivity but service industries are very much relying on this fact. The industry knows that transformation of bad reputation into a good one and delivering high-quality service is the key creativity that can change the hotel popularity and acclaim in this competitive scenario. Through the new changes in the hotel most of the people involve with the hotel and spend their quality time over here (Pieterse et al. 2012, 815). The innovative formation of the workforce that suggests the segregation of working people for each department and selects a supervisor for each of the department is the key factor of that hotel. Pan Pacific is one of the renowned hotels in Singapore, so organizational change impacted on their work and involves more people at their hotel.

Adidas is Europe’s largest footwear company and second largest company in the world. The company’s global corporate headquarters in Germany and the business location segregated in all over the world. The company produces “intelligent shoe”. A show with a microprocessor and the processor is capable of performing 5 million calculations per second. In 2005, this was a revolution that Adidas has made. From the beginning of the company till now, innovation and reading the market in an efficient way is the key characteristic of the company. The characteristics are also showcasing their range of products like apparel, sportswear, and shoes. In all sorts of sports, they deliver their goods and range of shoes the company have for their customers. “Nothing is impossible” is their creative campaign and through the campaign, they believe in this thing that innovative idea and technological amalgamation can really change the business scenario (Adidas Singapore: Official Online Store 2018). On the other hand, Pan Pacific Singapore is one of the largest hotels in Singapore, which has 38 floors and 790 rooms and suites. The entire hotel covers with bar, lounge, marketplace, café, theater, gym, restaurants, pool and spa. After the transformation in 2012, each sector has designed in a new way (Pan Pacific Singapore 2018). The workforce mentality has been revised and services at top notch. The basic similarity in both these sectors is the development of market position through the innovative process. Socio-technological aspect is an important aspect to know about the target market and specifies people who are capable of getting the product or services. But the major dissimilarity is on the implementation of these systems (Burke, Warner and Debra 2015). In case of Adidas, this is quite easy to change the product and manufacture something more innovative through the assistance from technological perspectives. However, in case of service industries, this is a long process of implementation. Total organizational, management change is required and this is a time-consuming process for Pan Pacific as well.

The role of socio-technological tool in market sustainability

The strategy is a trail towards attaining the prime goals of individuals, groups, and organizations. Along with that, its pointers to the best usage of companies’ obtainable capitals and it also guide the company to stay in a business effectively and incessant enhancements for its procedures. This is the way a manufacturing company should believe in their products and deliver a strategic outcome that enhances their service quality as well. As mentioned by Mahdi et al. (2015), the strategies are taken by manufacture industries are not stable enough to sustain the business for long (Mahdi et al. 2015, 170). Maybe the changes are relevant in that perspective but this is not the ultimate change. In the globalized market that changes are quite common, every innovation must be revised for the new one, this is the important aspect of strategic development. The cost leadership strategy is not promptly applied to the company as Differentiation strategy over products is already imposed on the company. Due to Differentiation strategy, low-cost market penetration is not applied for Adidas. Due to socio-technological tool implementation, Adidas has some advantages like automated highest production through changes, Labour cost decreases, the rate of production is higher, and capital and energy increase as per the expenditure (Battilana, Julie and Tiziana 2012, 392-394). These are some productive nature of the socio-technological reflection that provides better infrastructure for the company.

High-performance work organization is the most important factor for the development of business as the tool not only increases the production level but also developed the marketing arena with the promoting capability. In case of strategic perspective, Piller, Lindgens, and Steiner (2012) mentioned that mass customization is no doubt make a good market for customer preferences but the market also states quality of the product is not so good and their marketing approach has changed (Piller et al. 2012). Economic stimulation is also there through the better manufacturing option that got from strategic capabilities. In case of a better overview of marketing and technologies that workforce maintenance is required in this section. Precisely, it is critical that the increased inconsistency in customers’ necessities does not lead to important deterioration in the firm’s processes and supply chain. This loads a vigorous supply chain project – distinct as the ability to reuse or re?combine present organizational and supply chain assets to achieve discriminated customers’ desires.

In case the service industries like Pan Pacific the scenario is different. Socio-technological aspect is very relevant in that case as the rapid changes in hospitality industries and increases engagement of people is the main criteria for their changes. Through the technological innovation, business perspective can be changed and the industry can experience better opportunities to serve. As mentioned by Ali et al. (2016), the future generation of hospitality industry run by the power, innovation and controlled mechanism of profit approach that depends on some factors (Ali et al. 2016). The factors are reduced cost, resource availability, employees’ commitment, market understanding, choosing a target market, customer satisfaction, retention of employees and better investment relationship (Cameron, Esther and Mike 2016). These are the possible criteria that have to keep in mind for a change in business. Pan Pacific has the noteworthy managerial knowledge but they need to grab all section of people and have to segregate the rate so that each section of people used to go there and spent their quality time. The hotel management also takes care of sustainable practice that means a development plan that initiated for the better strategic changes in the hotel and through the technological enhancement it can persist in the hotel.

High-performance work experience and competitive advantage

The workforce should influence the high productivity in all the aspect so space and time needed for the considerable change are noticed in that section. From the literature review of Ongori, Iravo, and Munene (2013), the thing becomes very clear that drooping market facility and favor to their rival only happens if the organizational stability is not persisted (Iravo, M., J. Ongori, and C. Munene 2013, 921-922). The share amount of workforce and target people are there and the company has to choose them in an efficient way, else the market position of the company dropping down and it gets a threat from the market (Alvesson, Mats and Stefan 2015). There are some other challenges like long-range planning, volatile environment, employees’ training and development and project deadline. If a high amount of turnover is expected from the hotels then account development planning and organizational infrastructure needs to be proactive so that employees’ are getting ready for any kind of situation. The advantages that hotel will gain in this process will be the retention of experienced employees, a sustainable framework and competitive advantages in this globalized market (Goetsch, David and Stanley 2014). The basic objectives are also pointed to the business chances and hotel development scenario by encouraging projects and justify the high performance can only be attainable through employees’ effort and working nature.

Conclusion

From all the above findings, it can be concluded that socio-technological and high-performance work organization influences all sorts of business whether it is a manufacturing company or a service company. The procedure of application may be different; the advantages are also different but the way it implements in both the cases is important and encouraging for other business sections to adopt these styles for their future changes.

As mentioned in the thesis statement socio technological angle of Adidas is discussed here. Along with that changing manpower creates high performing rate that managers bring into the organization. These things also make a mark in service sectors like Pan Pacific. Both the tools are evaluated with the modern business perspective then the application has stated in both the sections. So using these tools are relevant and important for these two business sectors to change their market position and gain a good place in this business market.

References

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