Key Issues Within Wakewood – Internal SWOT Analysis

STRM 047 – Strategic Management

Student I.D. – 14400726Student Name – Elorm D. Oben-Torkornoo

Assignment - Case Study of Wakewood

Word Count: - 987 words

Internal Issues

Unclear vision and goals in all

units

Poor Change

Management Skills

Organisational

Structure

Fear of Change

from employees

With a large unit of 700 workers, it can be assumed that the entire organization is a large one and has enjoyed some great success in the past.

Key Issues/triggers identified include:Internal – Using the SWOT analysis exposes

the issues:1. Strength: - Willingness of CEO to

implement new changes, and his strong goodwill with employees.

2. Weakness: -- Weak , centralised organisational structure

--- Participative leadership style does not encourage productivity (Lewin et al, 1939)

3. Opportunities:- To tap into new technology that will boost productivity

4. Threats:- Unwillingness to accept change due to fear of redundancy

A critic if SWOT, Valentin (2005) argues that SWOT guidelines generally lack criteria for prioritizing SWOTs, but this may be the case for misapplication. A good application of SWOT is done with other models at the back of the consultant’s mind, like McKinsey 7s. Thus when talking about weaknesses in SWOT, that is done looking at strategies, skills, staff, systems, strategy, etc. SWOT is a great tool in the hands of great analyst

The ‘Culture’ Issue – Internal Issues (cont.)

Trompenaars and Hampden-Turner (2012) describes culture as the way in which groups or people solve problems and reconcile dilemmas.

As a result of the autonomous structure, there are large variances in the perception of quality and customer care between CEO and Unit 7 manager. Perceived strategy for achieving goals differ between CEO and Unit 7 Manager.

Decentralised quality control systems is the result of increasing customer complaints.

Interpretation of Web on Organisational

cultureThe Cultural Web reveals matters that must be addressed for change to occur.

There is the need for a re-mapping of the cultural web, which involves the all members of the organisation taking part

Need for change

Wakewood through the Cultural Web

1. Stories:- The employees admire and immortalise the CEOs achievements in implementing change in other units. It reveals a strong value for achievement over ascription.

2. Rituals&Routines:- Poor handling of clients in Unit 7. Long waits

3. Organisational Structure:- Autonomous 7 units with independent General managers managing key functions of the organisation. The CEO still maintains high influence and final say.

4. Control Systems:- Quality and other functional systems controlled by separate units. Unit 7 lacks quality control.

5. Power Structures:- The most influential people in the structure are the unit heads; the General Managers of each unit.

6. Paradigm: Employees taking for granted the importance of Customer service.

Key Issues Within Wakewood – External AnalysisUsing Poter’s (1997) five forces model, brings out some of the issues affecting Wakewood externally that require the change

1. Competitive Rivalry: Increasing competitive rivalry is an indication of lowering barriers of entry. Wakewood must therefore develop a strategy that builds on increasing certain barriers of entry it has the power to.

2. Buyer Power: Increasing customer dissatisfaction is an indication increasing buyer power. Weighing options/substitutes gives the buyers power. Wakewood must strategise to reduce dissatisfaction.

3. Supplier Power: Increasing cost of production is an indication of pressure on factors of production. When demand exceeds supply, price/cost goes up. Wakewood

Another factor, which is a trigger/issue, can be inferred from the PEST analysis; Technology. The industry Wakewood operates in seems to be changing rapidly, and technology is a factor in that change.

External

Issues

Introduction of new

technology

Increasing costs due to higher supplier power

Strong demand for quality by

buyers

Increasing competitive rivalry

PLANNED CHANGE: The Three-Step Change Model

Unfreezing1. Issues that need include: attitude of staff towards customers, attitude towards adoption of new technology2. The CEO needs to meet daily with Unit 7 manager to get him to buy fully into change programme. He is the influencer in his unit.3. CEO needs to create let workers know the worst case scenario should they not change. He needs to create urgency among staff.4. The CEO needs to manage and understand the doubts and concerns .

ChangeFor change to be effective:1. The CEO must clearly communicate the vision to the unit managers. Weekly workshops /meetings at top management is required. Activities to execute the new vision should be clearly drawn and unit heads put in charge.2. Unit managers should actively dispel rumours by being transparent with staff about management plans.3. Management needs to empower action with financial resources.4. The entire process should actively involve all members of staff.

RefreezingThis is where the desired change has taken place and staff have embraced the way of working.1. To anchor the new change into the organisational culture, charters and new terms of contract, as well as job descriptions must be given to all staff.2. There should be frequent training to support unit managers and staff.3. Managers should create incentives for small successes chalked to motivate staff during the process

Lewin (1951) proposes a model that Wakewood will find ideal to executing its cultural change

Dawson (1994) and several other researchers have criticised the model as being simplistic and mechanistic in a world where organisational change is continuous and an open-ended process. Others have criticised it as top-down and management dirven.

Lewin’s Force-Field Analysis of Wakewood: Change Process disected Any level of performance/equilibrium of an organisation is a result of a combination of driving

and restraining forces at works (Lewin, 1951)

Level of performance

Time Driving Forces

Restraining Forces

Current State of Wakewood

Expected State after change occurs

Driving Forces:1. The enthusiasm of the CEO of Wakewood to

implement the change process.2. Possible endorsement from Board of Directors3. High Staff costs4. Routine tasks are capable of replacement

with computerisation

0

Restraining Forces:1. General Manager of Unit seems largely

disinterested in New technology2. Staff reluctant to adapt.3. Lack of skills to implement change

Strategy: To pursue the change process in Wakewood it is important to reduce the restraining forces while maintaining or increasing the driving forces.

Change Process

The New Wakewood: Change in Organisational Structure

Old Wakewood

Board of Directors

Unit 1 (GM)

Functional Units

Unit 2 (GM)

Unit 3 (GM)

Unit 4 (GM)

Unit 5 (GM)

Unit 6 (GM)

Unit 7 (GM)

Finance Personnel

Administra

tion

CEO

The old Wakewood: (via its structure)- Lacked coherent vision and strategy- Lacked possibility to conduct audits on various functions without people feeling being witch-hunted- Presented conflict in leadership. Staff see Unit Managers as the most powerful because they control hiring and firing decisions.

Board of Directors

Director of Administratio

n Director of Finance

Director of Personnel

Director of Marketing/Customer Relations

Unit Managers

Unit 1 (Manager)

Unit 2 (Manager)

Unit 3 (Manager)

Unit 4 (Manager)

Unit 5 (Manager)

Unit 6 (Manager)

Unit 7 (Manager)

CEO New Wakewood

The New Wakewood:- Will bring all the functional heads and unit managers to be directly accountable to the CEO.Senior Management will therefore be made up of CEO, Directors of Admin., Finance, Personnel, Marketing/Customer relation, and Unit Heads.- Regular meetings will provide opportunities for quality and marketing targets to be agreed upon and monitored.- Based on standards agreed upon, healthy unit competition can be promoted among unit.- The New Wakewood becomes more participative.