Organisational Change Management - Essay Example

Organization structure shows the expressed allocation of responsibilities for different functions and processes to different entities like branches, its departments, workgroups and individuals. There are two most common organization structures known as vertical and horizontal structures. In case study there is vertical organizational structure as everyone has to be accountable to upper management for their doings and they have to obey all policies and rules made by them no matter they are favorable for them or not.

Key issues that organization is facing: This case study is about a French car component manufacturing that has two plants operating in France, Spain and UK. D2’s focuses is on having perfect return on investment and have growth in shareholders’ value. But over recent years D2 is facing a lot of problems and issue that hinders its growth. Recent economic downturn has a bad impact on demand and D2 has to struggle a lot for its survival. This is because of recession in business cycle, which represents a general slowdown in activities related to economy.

D2 is facing problems in capacity utilization and generation of profits as it need investments and has to cut down its cost to certain level. There is widespread drop in spending of the industry that is called as an adverse demand shock. D2 has decided to stop producing some components and to concentrate the production of other components at fewer sites in order to benefit from economies of scale. D2 will face so many problems when this decision would be announced because its plant’s workers are expecting D2 to invest highly in manufacturing departments of the D2 as many of the plants of French car component manufacturing are out-dated.

Another problem is that D2 is not working to utilize its capacity up to the mark. Production expansion by the D2 is not up to the standards. D2 cannot produce as much as it needs to produce because of its outdated plants. UK plant has to face closure because of its outdated technology. Production expansion is required through Blois in France because Blois has the most advanced technology in it and provides the opportunity to the D2 to have expansion in production and survive and grow. The new strategy will involve expanding production at the D2’s main factory at Blois in France.

Production is to be expanded in Blois because Blois has the most advanced manufacturing technology and the factory is not yet working to capacity. It is anticipated that increasing production at Blois will lead to a significant reduction in costs. Product development is needed in didcot (UK). D2 would be facing redundancy when it would announce these strategy and framework for product development and production expansion because these workers have no idea of using latest technology as they were playing with outdated version of technology and these employees and workers would be having no way to switch to other plants as other plants are operating in advanced technology.

D2 is expecting another problem that many of the D2 product developme