Question

You have been promoted to the position of Managing Director for a large company recently. Although established for more than 30 years, the company is now confronted with stiff competition and rapid technological changes in the industry where the company is operating. You have been tasked by the Board of Directors of the company with the mandate of spearheading change initiatives to improve the competitiveness, market share and profitability of your organisation.

a) Identify key changes which are imperative and what change model or models you will need to employ to manage change successfully.

Answer 1

To improve competitiveness, market share and profitability of your organisation following steps can be taken

1) Product Innovation : This is one of most effective strategy to increase market share. Customer are always looking for new things, However innovation is often very risky and expensive strategy which requires careful analysis of market demand and large investment

2) Market Segmentation : It means focusing on small players too. Thinking that small players won't yield much profit is wrong

3) Distribution Innovation: It means that there should be shop of company in every area. This will cater needs of people and will encourage them ti use product of comapny as they are available everywhere

4) Promotional Innovation : Advertisment is best way to penetrate into customer's mind. This way one can increase their market share as well as profit