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OD Intervention - Essay Example

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Change Management for Richies Supermarket Name Class Professor University Date I. Background Richies Supermarket was created by Mr. and Mrs. John and Marsha Smith whose first exposure in the market was through their attendance in the annual state fair selling the first variety of bread and homemade supermarket items…
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OD Intervention
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"OD Intervention"

Download file to see previous pages The business has proven itself to be viable in the market evident with its regular success over the years. Sales increased exponentially and growth seemed unstoppable. Ritchies Supermarket’s growth however stifled in the last five years. Since then, sales has been in precipitous decline and if not arrested would surely plummet the family business in bankruptcy. II. Environmental Analysis The decline of the company begun when big retailers entered into the market. Along their entry into the market were their efficient operations that enabled them to slash prices deeply that blunted Ritchies Supermarket competitiveness. Competitors such as Walmart, TESCO has also the advantage of scale and technology that ultimately reflect in the price tags which is considerably lower than Ritchies Supermarket. In addition, these big retailers have forged relationships with their suppliers and make their own brand which allows them to have discounts which Ritchies Grocer do not enjoy. Their wastage and spoilage is also minimal because of their efficient inventory system wrought by their advance technological structure. Ritchies Supermarket thrived on its relationship with its customers which it has established over the years. It boasts itself as a mom and pop Supermarket that capitalizes on its bond with its customers. But this relationship proved to be fragile especially when assaulted with discounted prices which big retailers such as Walmart and TESCO can afford that chipped away Ritchies Supermarket’s market share. Ritchies Supermarket’s shrinkage of its market share was significant during the recent 2008-2009 financial crisis where customers became sensitive with prices and this prompted a mass exodus of its customer base to big retailers to the point that it threatened its viability as a business. III. The Need for change The recent development in the market only tells that the old business model that made Ritchies Supermarket a success is no longer applicable. It has to adapt to the new market reality or otherwise perish. The necessity of implementing change in the company is now an imperative if the company is to survive. Parties affected by change It is a given that change is needed for the business to survive. The owners and its shareholders want it to keep the business a going concern and to ensure the continuous inflow of profit from the business. Not all parties may be enthusiastic with the necessary change in the business. Employees may not want it having been comfortable and accustomed to the the old business practice of the company. Management has to anticipate that in implementing change, resistance is often common. Resistance however fizzles out when the change is properly communicated among the employees. Second, the organization itself may not be able to adapt to the new system that is being introduced by change. Such, retooling may be necessary to enable the workforce to adapt to the new organizational change. This can be done through trainings and workshops. A follow through is necessary to ensure that the introduced change will be embedded as a new organizational culture. Reinforcement mechanisms must also be in place that will facilitate the assimilation of the change in the organization. IV. Implementation of change The premise of change The need to align product and service delivery in accordance to ...Download file to see next pagesRead More
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