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VTI CASE STUDY - Essay Example

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The growth and development of organizations and companies is a well calculated process rather than a piece of accidental event…
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Download file to see previous pages It is in light of this that planning remains an important aspect of all organizational structuring and management. In the absence of planning, organizations loss focus and fail to have a yardstick for measuring and identifying the height of growth they want to reach (Fernandez & Rainey, 2006). Through planning also, it is always possible for the organization to identify aspects and areas for change. Currently, VTI has come to a crossroad where the need for thorough organizational planning that will bring about rapid change is more than a necessity. From the situational analysis of the company, it is time for the company to respond to its external factors of competitiveness, which is focused on the use of electronic commerce (e-commerce). The need for change Change has its own merits and demerits, depending on how it is implemented and the factors that bring it about (Hadaway, Marler & Chaves, 2003). Generally though, many are those who are not comfortable with organizational changes. These people, commonly referred to as administrative conservatives hold the opinion that undertaking organizational changes affect the organizational climate negatively because it forces stakeholders to adjust when they are not really ready to adjust (Hannan & Freeman, 2004). A very typical example of this situation could be said to be taking place among the old senior management team of VTI Ltd who are refusing any form of change from the traditional street sales that the company is involved in. currently, change is eminent for VTI Ltd and cannot be delayed any further. This is because the market in which the company is operating has become so influenced with competition and user definition, whereby it is no longer what the company wants to offer to the consumer that matters but what the consumer wants to have (Alversson & Willmott, 2002). The need for change is therefore in the need for the company to keep track with the changes that is happening outside its domain of control. Causes of change The fact that the company is currently experiencing all time low in sales and has not made any profits in the past 2 years is due to a number of factors, some of which are internal, and others, external. Internally, it can be noted that there is a total absence and lack of unified code of conducting business at VTI. Clearly, the old senior management team is in a world of their own whiles the relatively younger staff is in a world of their own. In such a situation, Neale, Tenbrunsel, Galvin & Bazerman (2006) note that organizational conflict becomes common, especially role conflict. Presently, there seem to be a major lack of understanding as to the focus that the company should have in the implementation of basic organizational objectives. This has created an apathy whereby each member of within the organization is defending what he or she feels is right for the organization rather than what the organization wishes to have for itself. In relations to the adage that in unity is strength, it is important that the company has a common focus of the path it is going to trend to bring about the implementation of its goals and objectives. There are also major external causes of the poor performance that the company is currently experiencing. Firstly there is an absence of competitive advantage by the company to meet the competition it is faced with from its key competitors squarely. Currently, the global record sales market has become so competitive that there are new companies and outlines springing up with time. This has created brought about the need for ...Download file to see next pagesRead More
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