Ski and Deli Merger … Research Paper
Pages: 8 (1827 words) | Style: APA | Sources: 8
Dunn's Emporium -- Consultancy Report
Organizational Structure of the Company
The Environment for Change Process
The case study presented covers the merging of two separate companies that have different strategies but are also complementary to each other. In such mergers there is the potential for a certain form of synergy to develop between the two organizations. The study outlines the design of missions and visions of the companies, a proposed structure for the emerging company, a discussion of how to influence the new organization's culture, as well as a plan for assessing the opportunities and environmental challenges for the implementation of the strategic merger.
The company that Joseph Dunn created operates as a sports shop that caters to a target market that loves to ski. The shop is located in the busy town of Vail, Colorado, which is known as a ski paradise. Vail is famous for skiing and the location attracts numerous visitors who travel for a ski vacation. The shop provides ski equipment at competitive rates. As well as providing new equipment, the company also provides repair services for skiers for their ski equipment. The company provides quick repair service and usually gets repairs done quickly. The company also values timely delivery of new products that are sold and any adjustments made for new ski equipment purchased are generally completed within one day. The fast service in repair and adjustment of ski equipment is the specialty of the company. With a friendly, knowledgeable local staff, the company ensures that the skiers are satisfied and Dunn's ski emporium has created a loyal customer base.
The focus of the business, as based on its mission and its operations, is to create value through the satisfaction of the clients in terms of service, location, and price. The timely delivery of both repair work and adjustments needed for broken and new equipment respectively has provided the company a sustainable position within the local market.
In this scenario, the company wants to buy an adjacent eatery, the Deli. This eatery is also used by the ski patrons to have a snack while they wait for the repairs or the adjustments to their equipment. Also, many of the customers who come to the eatery also drop into the sports store to buy gloves, goggles, and other merchandise after eating at the Deli.
Because of the close proximity, Joseph Dunn feels that getting the two stores together under one organization could increase each organizations efficiency. It could also help increase business for both the stores due to their complementary nature. For example, while the ski store can gain more customers from those dropping by the eatery, the customers coming to the sports store could also be influenced to try some food at the deli. Furthermore, incentives and coupons could be given to customers to try to influence them to visit the other business.
Therefore the according to Dunn, the eatery, situated right next to the sports store would be able to complement the business of the sports store. Dunn's idea is to merge the two companies strategically and develop a new strategy for the new company.
The mission statement for the new company: to utilize the resources and location of both stores to increase efficiency and total sales. The organization will also maintain the high levels of customer satisfaction. The vision statement of the proposed new company should include the fact that the company would strive to generate more customers while also reducing expenses by sharing various resources.
Organizational Structure of the Company
For Joseph Dunn, the inclusion of the Deli would add to his total responsibilities. The problem for Dunn is that he does not have a background in the food business or does he know how to run a deli. Thus, for him it would be a new experience and as such it would represent a risk for him and the success of the new organization. Therefore, Dunn, must plan to mitigate this risk by hiring personnel that he can trust and that has the experience that he lacks. On idea would be to make a strategic agreements related to the management of the eatery. For example, Dunn is banking on the fact that George Atkins, the present owner of the eatery, would be retiring in a few years and would likely sell his business. However, Dunn also realizes the need for Atkins to remain on staff with the new business until the requisite expertise is created to manage the deli is acquired by the new owner (George & Jones, 2005).
The organizational structure would obviously have Dunn at the head of both businesses as the owner of the combined organization. However, since he lacks experience in the food business he needs Atkins's to stay onboard and to help to run the business. Therefore, Atkins would remain at the head of the eatery business if Dunn negotiate an arrangement with him to stay in the business as a manager.
He would need the participation of Atkins to manage the Deli effectively while also training new employees. Dun would be required to work with Atkins until such point that he is comfortable with managing the deli on his own. If Atkins does not accept such an arrangement, Dunn would have to make other arrangements such as recruiting someone new with the necessary experience. In this situation, Dunn would need to rely on the suggestions and advice of a new employee who is tasked with managing the deli. The new structure would require one senior employee from the administrative section of the sports store to look after the regular affairs of the eatery (George & Jones, 2005). Dunn would be in charge of formulating and deciding on the overall strategy of the expanded company.
Change management was identified to be a critical success factor in a merger. Kotter's 8 Step Change Model was identified to be a popular model for helping to guide change to the greatest extent possible. This a model takes the approach that the change process should be thought of as more of a campaign rather than a business process. Kotler's change model considers the change process from the perspective of the stakeholders and the various activities that can be conducted to prepare them for the planned change. Since the stakeholders are ultimately responsible for making the change, making a comprehensive effort to give them all the tools, motivation, and support they need to institute the change is sufficient to drive the change. Once the stakeholders are onboard with the change management plan, the implementation of the actual change is very easy (Green, 2007).
This model tries to overcome behavioral challenges that are present and effectively meet the needs of the changing environment. John Kotter and Dan Cohen identify "The Eight Stages of Successful Large Scale Change" in which leadership is an important aspect of change. Leadership is one of the critical success factors and there are a variety of tools that leaders can use such as setting a vision. A successful vision provides a roadmap of sorts that can inspire employees to overcome their personal challenges and concerns (Green, 2007).
The eight steps in this model are:
1. Create and increase the urgency for change.
2. A team is built to work for the campaign on change
3. Create the vision for change.
4. Communicate the need for change.
5. Empower staff with the ability to change.
6. Create short-term goals.
7. Stay persistent.
8. Make the change permanent
The central idea in change management is that if you support and prepare the stakeholders who are involved in the change, then much of the actual implementation of the change essentially takes care of itself. This occurs because the preparations can foster motivation from within the organization to make the proposed changes. However, to plan for change takes leadership which is a difficult concept to define accurately. For example, leadership is a concept in which there have been no less than six to eight major approaches that can be found in the academic literature (Turner & Muller, 2005). During periods of organizational change, a transformational leader is generally considered as an ideal leader to facilitate these changes.
Businesses are in a perpetual state of change whether they realize it or not; it is essentially require for the organization to exist (Kim, 1993). Organizational culture has been identified as a missing link in change management and the resulting organizational performance levels that are achieved after the change is instituted (Skerlavaj, 2006). Therefore, in addition to designing a change management plan, Dunn should also pay attention to the leadership that is exhibited as well as the organizational culture that emerges.
The Environment for Change Process
The environment in the scenario does not seem to prohibit change. For any organizational changes to happen it is necessary to consider all the stakeholders. The stakeholders in this process of organizational change are the employees of both the stores… [END OF PREVIEW]
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