AN ASSIGNMENT ONORGANIZATIONAL CHANGE

SUBMITTED BY: SUBMITTED TO

Abhijit Prusty PROF. VIBHA CHETANDSBSPGDMA1101

Dayananda Sagar Business School Shavige Malleswara Hills, Kumaraswamy Layout Bangalore 560078

Organisational Change Meaning:Organizational change is a structured approach in an organization for ensuring that changes are smoothly and successfully implemented, and that the lasting benefits of change are achieved. In the modern business environment, organizations face rapid change like never before. Globalization and the constant innovation of technology result in a constantly evolving business environment. Recent phenomenon like social media and mobile adaptability have revolutionized business and the effect of this is an ever increasing need for change, and therefore change management. The growth in technology also has a secondary effect of increasing the availability and therefore accountability from knowledge. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media. prying eyes and listening ears raise the stakes for failed business endeavors and increase the pressure on struggling executives. With the business environment experiencing so much change, organizations must then learn to become comfortable with change as well. Therefore, the ability to manage and adapt to organizational change is an essential ability required in the work place today.Due to the growth of technology, modern organizational change is largely motivated by exterior innovations rather than internal moves. And when these developments occur, the organizations that adapt quickest create for themselves a competitive advantage. Meanwhile the companies that refuse to change get left behind and this can result in drastic profit and/or market share losses.Organizational change directly affects all departments from the entry level employee to the upper management. With recent developments like social media marketing and smart phone applications, the entire company must learn how to handle these new changes to the organization. Whether its the CMO determining how to incorporate social media, or the secretary representing themselves and their company responsibly online, change occurs rapidly in todays ever developing world.When determining which latest techniques or innovations to adopt, there are four major components which must be considered.1. Levels, goals and strategies,2. Measurement system,3. Sequence of steps,4. Implementation and organizational change,Organizational change can have many faces. But regardless of the type, the critical aspect is a companys ability to win the buy-in of their organizations employees on the change. To effectively implement organizational change there is a four step process. First, recognizing the changes in the broader business environment. Second, developing the necessary adjustments for their companys needs. Third, training their employees on the appropriate changes. And fourth, winning the support of the employees with the persuasiveness of the appropriate adjustments. This four step process is change management in its essence, and organizational change in practice.

Principles of Change Management:

Example of Organisational Change:1. Mission changes,2. Strategic changes,3. Operational changes (including Structural changes),4. Technological changes,5. Changing the attitudes and behaviors of personnel,As a multidisciplinary practice that has evolved as a result of scholarly research, Organizational Change Management should begin with a systematic diagnosis of the current situation in order to determine both the need for change and the capability to change. The objectives, content, and process of change should all be specified as part of a Change Management plan.Change Management processes may include creative marketing to enable communication between change audiences, as well as deep social understanding about leaderships styles and group dynamics. As a visible track on transformation projects, Organizational Change Management aligns groups expectations, communicates, integrates teams and manages people training. It makes use of performance metrics, such as financial results, operational efficiency, leadership commitment, communication effectiveness, and the perceived need for change to design appropriate strategies, in order to avoid change failures or resolve troubled change projects.Successful change management is more likely to occur if the following are included:1. Benefits management and realization to define measurable stakeholder aims, create a business case for their achievement (which should be continuously updated), and monitor assumptions, risks, dependencies, costs, return on investment, dis-benefits and cultural issues affecting the progress of the associated work.2. Effective Communications that informs various stakeholders of the reasons for the change (why?), the benefits of successful implementation (what is in it for us, and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc.).3. Devise an effective education, training and/or skills upgrading scheme for the organization.4. Counter resistance from the employees of companies and align them to overall strategic direction of the organization.5. Provide personal counseling (if required) to alleviate any change-related fears.6. Monitoring of the implementation and fine-tuning as required.

Kinds of Change and the Barriers to Change

There are different kinds of change that an organization might undertake or be forced to undertake because of internal and external factors. The internal factors for change include reorganization and restructuring to meet the challenges of the future and also to act proactively to initiate change as a means of staying ahead of the competition. The external factors include change that is forced upon the organization because of falling revenues, changing market conditions and the need to adapt to the ever changing business landscape.Change can be organic which means that it evolves slowly and is like meandering up the gentle slope of a mountain. In this case, the organization and the management have enough time to prepare for change and reorient themselves accordingly. This is the kind of change that is adaptive meaning that firms have the opportunity to adapt themselves to the change.

Change can be radical which is rapid, sudden and uncertain. This is the kind of change that is disruptive and often forces organizations to reorient themselves without adequate notice and warning. It is better for organizations to anticipate change rather than be forced into accepting change that is rapid and sudden.We have seen how managers at different levels resist change and how this resistance manifests itself. Apart from the ideological and personality issues, there is the very real possibility of change being resisted because the visibility of what comes next is not clear. For instance, many managers tend to resist change because the change initiators have not clearly spelt out the outcomes of the changes and the possible impacts that such changes have on the organization. This is the realm of the known unknowns and the unknown unknowns which arise because of ambiguity, complexity and uncertainty. Hence, the resistance to change can come about due to the lack of coherence in the vision and mission and because the change is not clearly communicated as well.Finally, the rapidity with which change is introduced can upset the organization structures that are usually rigid and bureaucratic with bean counters at all levels resisting and actively thwarting change. Hence, it needs to be remembered that change initiators take into account all these factors when introducing changes.

Overcoming Barriers to Change

Research has shown that the best way to get the senior managers at all levels interested in the change initiatives is by engaging them and seeking their buy-in for the change management process. Studies have proved that the managers in the upper echelons buy into the change from a strategic perspective where the accent is on performance and hence radical or disruptive change is seen as part and parcel of an organizations development. Managers at the middle level can be made to see the value inherent in change and hence they can be brought on board. The frontline managers views and inputs can be sought and thereby their cooperation and participation in the change obtained. These are the broad outlines and the following detailed sets of approaches can be pursued as well.Make Them the HeroBy making the managers the change drivers and change initiators is often the best way of securing their buy-in. The point here is that by getting the managers to be the ones who are implementing change and by giving them centre stage, it is possible to secure their participation.

By definition, senior managers are highly capable, motivated and ambitious. By making them the stars of the change process, their innate abilities can be harnessed to the benefit of the organization. It is often better to have a close association with the senior managers to achieve the desired results.Show them the potential of ChangeBy selling change and the value of such change to the organizations and themselves the senior managers can be persuaded to accept change. The point to note is that senior managers must be told what their role in the post change scenario would be and by making them see themselves in the future vision, they can be made to play a key part in the change management. As has been mentioned earlier, if the benefits of the change are explained and by persuading that the change does not involve downsizing or other reduction in roles and responsibilities, the senior managers can be expected to be partners rather than resisters in the change management process.Painting the AlternativesThis is the stick part of the carrot and stick approach wherein senior managers are told of the urgent need for change and by indicating to them what the consequences for themselves and the organization would be if the change does not succeed. By painting harsh alternative scenarios like declining market share and repercussions of layoffs and downsizing if the change does not succeed would make the senior managers realize the flip side of resistance. In this way, they can be persuaded to accept the business realities behind the change process.Involving Them in the ChangeBy adopting a hands on approach that would involve all hands and including all the stakeholders, senior managers can be brought on board. The point is that by adopting an inclusive approach and giving a sense of ownership to the senior managers and taking their inputs and feedback would ensure that the key aspect of engagement is achieved. As has been pointed out throughout this paper, the key to senior manager participation in the change initiatives is through engagement and only by communicating clearly the benefits of change and by positing the alternatives would it be possible to engage with senior managers. A suitable narrative of the changes and the impact that they have on the senior managers must be communicated to all levels and there must be a process in place to bring on board as many managers as possible.

The Role of Senior Managers as Barriers to Change

It is often the case that when change programs are initiated in firms, there is a level of resistance from senior managers due to a number of reasons. These range from protecting their turfs to uncertainties regarding their position after the change is implemented and to ego clashes as well as power politics. The ways in which they can manifest their resistance to change ranges from citing time pressures and constraints involved in implementing the change, citing operational pressures in bureaucratic and mechanistic organizations where the rigid structure does not lend itself to change and finally, by pointing out earlier instances of change that have failed. The point to note is that it is human nature to be comfortable with the status quo and hence barriers to organizational change are psychological more than anything else.In the case of senior managers, the barriers to change arise because they would want to protect their turfs, resist change because it has been initiated by a rival power group and finally, there is a tendency to resist change because the senior managers do not see a role for them after the change is implemented.It needs to be remembered that while bad strategies result in failed change initiatives, good strategies without proper execution and implementation lead to the same result. Hence, it is not enough to have a good strategy in place if there is no viable means of execution and implementation.When we discuss about the barriers of change from senior managers, we need to distinguish between the levels of managers. This is necessary as the barrier to change is different at each level. For instance, the front line managers often resist change because they fear for their positions post change. Since these managers are vulnerable to the changes wrought by technology where their positions become obsolete because of automation, the front line managers tend to resist change because of this aspect. The front line managers might also be disinterested in the change if it does not impact the day to day workings or the operational issues. This is the case of the distance between the change initiators and the operational managers that can result in the change being remote and the front line managers being unconcerned with the change.The middle level managers who form the sandwich between the workforce and senior management have a pivotal role to play in change management initiatives as they are the ones who communicate the changes to the workforce and in turn have to report on the success or otherwise of the initiatives to the senior management. These middle tier managers often resist change because of inertia and a status quo mentality which makes them impervious to new realities. It is a fact that the middle tier managers in bureaucratic or machine structure organizations have a lot from continuing with the status quo because of the tangible and intangible benefits that accrue to them.Finally, and most importantly, the managers in the upper echelons tend to resist change because they have personal fiefdoms that they protect jealously. Further, they have big personalities because of which the possibilities of ego clashes among the top management are very real. In cases where the change is initiated by one faction, the rival faction tends to oppose such change purely on personality issues alone. It is also noteworthy that senior managers and managers at all levels exhibit tendencies that are described in theory as value enhancing or utility maximizing (the so-called agency problems) which would make them behave in ways contrary to the interests of the shareholders. These are some of the characterizations of the levels of managers and their tendencies to resist change.

Why Some Organizations are Better at Driving Change ?

We live in a world where increasing complexity is the order of the day and the business landscape is characterized by a rapid turnover of companies which find themselves dethroned from their position because of outmoded thinking or anachronistic strategies.For instance, Nokia and RIM (the maker of Blackberry) were at the top of the leading mobile companies a couple of years ago. Now, their places have been taken by Apple and Samsung because both Nokia and RIM got bogged down due to a combination of internal problems as well as the failure to spot changing trends. They could not foresee the trends which indicated that mobile phones would be used for purposes very much different from making and receiving calls and instead they would be used in ways that would revolutionize the concept of mobiles as one-stop solutions for a wide variety of consumer needs. In other words, these companies were victims of complexity.

To deal with complexity and uncertainty, companies need to shift the lens with which they are viewing the business landscape and hence change according to the situation rather than have long term strategies based on fixed notions or projections that become obsolete within months. Change management in these cases becomes critical and not just necessary or essential. And to adapt to change, there needs to be a mindset and attitude change rather than plain business strategies. The mindset change is something that needs the top management to actively involve themselves in winning the hearts and minds of the employees and the other stakeholders. Only when there is a buy-in from the employees to the change initiatives being undertaken by the management can they succeed.The example of the legendary founder of Apple, the Late Steve Jobs is an excellent case in point as to how charismatic CEOs can go about winning the hearts and minds of employees. Jobs was not only instrumental in turning around Apple Inc. from near bankruptcy to a leader in the industry, but also ushered in a paradigm shift as to the way in which the computing and software industry operated. Another example is the case of Google which has made the organization of information its business and has ensured that the way in which we function everyday has been transformed. In both cases, the CEOs could inspire and motivate their employees to believe in their vision and by dint of hard work and diligent attention to detail, they succeeded in being change agents.These examples show how change can be initiated in response to ever changing and complex scenarios that business leaders face. What are needed are a compelling vision and a fresh way of looking at issues. Once the vision is articulated, there needs to be a push to reframe the issues and look at problems in a new light. Making sense of complexity becomes easier if the strategies are rethought according to changing circumstances. In conclusion, we need not succumb to complexity and instead use it to drive change that is lasting and beneficial to the company.

Role of Catalysts in Organizational Change

The other articles in this series on Change Management have listed the business imperatives for change as well as the various barriers to change that arise from internal and external resisters. In this article, we examine the other side of driving change and that is to do with the role of people who can act as catalysts in driving change.Every organization has high performers and those who are steady as well as those who make up the bottom of the performance chart. Though it is not necessarily the case that the top performers are the ones who should drive change, more often than not, that is the case. However, there might be pearls waiting to be discovered as well.The broader point that we are making is thatmanagement and the HR department must institute a program that would identify potential change agents who can act as catalysts for the change initiatives which the management might be planning.

Most organizations have lists of employees whom they consider High Potentials or Fast Trackers which indicate that the people in these lists are being marked for higher positions and they are groomed accordingly. In addition to that, the management along with the HR department can compile a list of people who take initiative in their roles and are not content with merely doing their assigned tasks but are proactive about trying on new ideas and concepts. These people are an asset to any organization and the management must identify such people and get them together to brainstorm about new initiatives and how to make the organization more successful.The qualities that are needed in such change catalysts are impatience with the status quo, out of the box thinking, a different perspective than others about the strategies that the company is pursuing etc. When we mentioned that such people might not be necessarily the top performers, what we meant is that there might be employees at all levels who given the chance to change the existing paradigm may very well end up as the stars that the company needs. And when there is a need for change, such people turn out to assets that the company had undervalued all the while.The point about the catalysts for change initiatives is that they have the personal attributes needed to motivate and inspire others to follow their lead. The key point here is that they would be people enablers and leaders as far as leading from the front are concerned. Plus, they would with their infectious attitude towards change be able to convince those who are skeptical about the change initiatives. Hence, organizations need to rethink their system of rating the employees and include the change agent part of it and maybe, assign it more weight in determining the overall grade of the employee. Though this does not take anything away from the employees who are diligent and produce results, change initiatives can be driven only by a new way of thinking and hence non-linear thinking must be encouraged.Creating Sustainable Change - How to create and sustain change ?Who doesnt like change and who doesnt want to change? These are certainly truisms in the 21st century landscape where businesses proclaim their commitment to change and exhort their employees to Be the change you want to see. However, having a vision and mission statement that commits to change is different from actualizing the change. There are numerous examples of so-called paradigm shifters who have flattered to deceive. The best known example of this is the launch of Hotmail as the worlds first free web based mail service.There was lot of hype surrounding Hotmail and its legendary founder, Sabeer Bhatia, became an icon of sorts. Now, a decade later, how many teenagers who have entered the cyber world in the last few years even know about Hotmail? So, the point here is that having a great idea is just the first step. And executing it to actually creating a shift in the way things are done is the next step. Companies often do step 1 and step 2 pretty well. You might very well ask what the problem is.

The problem is the sustainability aspect of change. Or, put another way: How to create and sustain change by not losing the momentum? This is the challenge that companies face in the contemporary world where your last performance matters more than anything else. So, investors and the general public eagerly await the new product launches and the Next Big Thing from Microsoft, Google or Facebook and are disappointed if the offering does not live up to their expectations. It is no longer the case that companies can ride on their reputations created over a legacy system. Now, they have to constantly innovate and do better or even do best each time they go to the market. With the ever shortening product cycle and the dwindling time to market period, companies are literally engaged in a race to the bottom as far as their competitors are concerned.So, how does one sustain the momentum? The first thing to do is to create an atmosphere in the company or make the organizational culture Change oriented which makes automatic the process of listening to the market and responding appropriately. Next, invest in people who can be change agents and then make all efforts to retain them and nourish them. Creation of an organizational culture and nurturing change agents go hand in hand. The final step is to incorporate change into the organizational DNA so that change becomes a constant in the way the company does business. Taken together these steps represent the maintaining of the change process and building on the momentum created by the initial burst towards change. It needs to be remembered that sustainability is important not only from the environmental perspective but also from the organizational commitment to change. In conclusion, the change game ought to be practiced by companies if they are to remain abreast of the latest trends and to make the marketplace their own.

Role of HR in Change ManagementThis module has covered the various aspects of change management and the roles played by senior management as well as the CEO in top down change and the role of employees at all levels in bottom up change. This article looks at the role played by support functions in an organization in facilitating change. Specifically, it looks at the role that the Human Resources Department can play in supporting and enabling change. Before we launch into the specifics of how the HR can facilitate change, it needs to be remembered thatchange management is first and foremost about people and their capacity to adapt to change. Since, the HR department is all about recruiting, training and monitoring employee performance; it has a key role to play in any change management program. There are different aspects in which HR can play a significant role and we shall consider some of them.The HR department has to ensure that employees are motivated to undertake the change and participate in the change management program. For this to happen, they need to recruit the right people who can think out of the box and can bring a fresh perspective to the table.Companies like Yahoo and Intel look for people who can think non-linearly and in unconventional ways. Once the right people are recruited, they need to be encouraged and mentored so that they act as change agents. This is the key element of a successful change management strategy and this is where the HR department has a stellar role to play. Many companies have a separate role for a People Manager wherein he or she has the responsibility of mentoring and nurturing talent. Some examples are Fidelity and IBM that have designated people managers who are apart from the line managers and so their primary duty is to ensure the enabling and empowering of employees who report to them in a dotted line fashion.The point here is that the HR department must be encouraged to look for people who can act as catalysts for change and who can motivate other employees to participate in the change initiative. Since the HR department is staffed by people who have degrees in organizational and personal behavior, enlisting their help in driving change is a crucial element in the overall change management strategy. Great companies have great leaders and great leaders are enabled and energized by highly supportive environments that nurture and reward talent. The last aspect of reward and recognition is the final element in a successful change management plan and if the employees who enthusiastically participate in change initiatives are suitably rewarded and adequately recognized, there is an added incentive for them to further the change initiative.

In conclusion,HR needs to be seen as much more than a supporting function and instead, must be viewed as integral to the organizations change management strategy. Companies like the TATA group and Infosys are highly successful at change management because their personnel policies are employee friendly and are geared towards getting the best out of their employees.

Why Change Management Programs Often Fail ? Some Ways to Actualize Change

We have heard the story several times. A large conglomerate wants to implement a change management program, which it then announces amidst much fanfare and hype. The top leadership waxes eloquent on the need to change and why the organization must actualize change. However, a few years down the line, things are still bad for the company and the change program has bitten the dust. What are the reasons for this? First, there is something called change fatigue that sets in when the change being instituted is part of a long string of change management programs that have been going on in the organization. Second, the resistance to change (a topic we discussed at length in previous articles) is the next reason. Third, the employees might have little faith in the top management and the confidence in the management team is at such a situation that the employees do not take anything that the management says seriously.Therefore,the obvious question is what the management should do to actualize change. First, create an engaged organization where the buy-in for the change is secured deep and wide within the organizational hierarchy. This means that the Sandwich Layer of middle management and the key power centers in the organizations are on the same page as the management.

Second, have execution clarity, which means that the top management knows what it wants and how it should go about actualizing change. The message of change must be lucid and coherent and the senior as well as the other layers of management must think through the change process. Third, create a critical mass of enabled leaders who would carry through the change and who know what exactly the change entails and how to go about it.Fourth, the senior management must realize that in unity lies strength and hence, must build a cohesive organizational culture that does not fray at the edges or is hollow in the middle. In other words, there needs to be a sense of purpose about the change process and how it must be actualized by all levels of management. Fifth and finally, the Project Management Office and the Governance structures responsible for change must articulate, implement, seek feedback, and close out the change process as well as plug any leakages. The important point to note here is that the PMO must be vested with full powers to implement the change and as happens with economies and politics, governance mechanisms in organizations must not be clogged. In other words, the organizational arteries must be clear and free from appendages. If these elements of the change management process are taken into account, actualizing the change would be relatively easy.Finally,the whole point of the change program must be to engage with the employees at all levels and ensure that the change management program targets the core of the organizations competencies and vision and mission. In conclusion, change management programs can only succeed when these elements are conjoined together to create a coherent and understandable narrative that the employees can relate to.Theories on organizational change managementThere are many theories about how to "do" change. Many originate with leadership and change management guru, JOHN KOTTER. A professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change." We look at his eight steps for leading change below.

Step 1: Create Urgency

For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving.This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself.

Step 2: Form a Powerful CoalitionConvince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough you have to lead it.You can find effective change leaders throughout your organization they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance.Once formed, your "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change.

Step 3: Create a Vision for ChangeWhen you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember.A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense.

Step 4: Communicate the VisionWhat you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do.Don't just call special meetings to communicate your vision. Instead, talk about it every chance you get. Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it.It's also important to "walk the talk." What you do is far more important and believable than what you say. Demonstrate the kind of behavior that you want from others.

Step 5: Remove ObstaclesIf you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting.But is anyone resisting the change? And are there processes or structures that are getting in its way?Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward.

Step 6: Create Short-term WinsNothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress.Create short-term targets not just one long-term goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff.

Step 7: Build on the ChangeKotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change.Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements.Each success provides an opportunity to build on what went right and identify what you can improve.

Step 8: Anchor the Changes in Corporate CultureFinally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work.Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture.It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started.

CASE STUDY ORGANISATIONAL CHANGE SONY

HistoryMasaru Ibuka, the co-founder of Sony.In 1945, after World War II, Masaru Ibuka started a radio repair shop in a bombed-out building in Tokyo. The next year, he was joined by his colleague Akio Morita and they founded a company called Tokyo Tsushin Kogyo K.K., which translates in English to Tokyo Telecommunications Engineering Corporation. The company built Japan's first tape recorder called the Type-G.In the early 1950s, Ibuka traveled in the United States and heard about Bell Labs' invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company. While most American companies were researching the transistor for its military applications, Ibuka looked to apply it to communications. Although the American companies Regency and Texas Instruments built the first transistor radios, it was Ibuka's company that made them commercially successful for the first time. In August 1955, Tokyo Telecommunications Engineering released the Sony TR-55, Japan's first commercially produced transistor radio. They followed up in December of the same year by releasing the Sony TR-72, a product that won favor both within Japan and in export markets, including Canada, Australia, the Netherlands and Germany. Featuring six transistors, push-pull output and greatly improved sound quality, the TR-72 continued to be a popular seller into the early sixties.In May 1956, the company released the TR-6, which featured an innovative slim design and sound quality capable of rivaling portable tube radios. It was for the TR-6 that Sony first contracted "Atchan", a cartoon character created by Fuyuhiko Okabe, to become its advertising character. Now known as "Sony Boy", the character first appeared in a cartoon ad holding a TR-6 to his ear, but went on to represent the company in ads for a variety of products well into the mid-sixties. The following year, 1957, Tokyo Telecommunications Engineering came out with the TR-63 model, then the smallest (112 71 32 mm) transistor radio in commercial production. It was a worldwide commercial success.

Product & Technology Milestones(1955) Japan's first transistor radio, employing five transistors developed in-house. The TR-55 became the forerunner of later portable radios. TR-610 Highly acclaimed for its novel design, it was a hit in both Europe and the US. Approximately 500,000 units were sold throughout the world. (1965) TFM-110 This model featured a black and silver design which was representative of the Solid State Eleven. Its chic design and unprecedented advanced sensitivity made the TFM-110 a top seller. (1975) ICF-5900 Five-band radio known by the nickname Sky Sensor. Its crystal marker (based on a quartz crystal resonator) ensured precise shortwave tuning. 1976 ICF-7500 Skillfully designed to separate the tuner and speaker, resulting in a high-performance, compact FM/AM receiver. 1995 ICF-TR40 Model commemorating the 40th anniversary of Sony radios. This handy portable radio featured a faux-leather exterior with metallic trim. 1997 ICF-B200 Emergency radio with built-in manual power generator. Just turn the handle to charge the internal batteries. 2000 SRF-G8V The use of magnesium alloy ensured a slim but durable body. With a text-to-speech function and a stand charger, this radio was designed specifically for commuter use.

Sony Corporation - SWOT Analysis.The Sony Corporation - SWOT Analysis company profile is the essential source for top-level company data and information. The report examines the companys key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.Sony Corporation (Sony) is one of the worlds leading consumer electronics firm with additional interests in the entertainment industry through subsidiaries dealing with recorded music, motion pictures, TV programming, DVDs and videos. The group operates globally and is headquartered in Tokyo, Japan. It employed 163,000 people as on March 31, 2007. The group recorded revenues of JPY8,295,695 million (approximately $70,355.8 million) during the fiscal year ended March 2007, an increase of 10.5% over 2006. The increase was driven by strong sales within the electronics, game and the pictures segment. The operating profit of the group was JPY71, 750 million (approximately $608.5 million) during fiscal year 2007, a decrease of 68.3% compared with 2006.The net profit was JPY126, 328 million (approximately $1,071.4 million) in fiscal year 2007, an increase of 2.2% over 2006.

Strength

One of Sonys greatest strengths is their ability to produce innovative, quality products. Sonys web page states Sony innovations have become part of mainstream culture, including: the first magnetic tape and tape recorder in 1950; the transistor radio in 1955; the worlds first all-transistor TV set in 1960; the worlds first color video cassette recorder in 1971; the Walkman personal stereo in 1979; the Compact Disc (CD) in 1982; the first 8mm camcorder in 1985; the Minidisk (MD) player in 1992; the PlayStation game system in 1995; Digital Mavica camera in 1997; Digital Versatile Disc (DVD) player in 1998; and the Network Walkman.digital.music.player.i.1999.(Sony.com/en/corporate).

PC World published The 20 Most Innovative Products for the Year 2006. Sonys Reader was listed as number six and Sonys PlayStation was listed as number sixteen. Sony Corporation has managed to be competitive and stay a powerful organization by learning from past failures. Sony states the following: Sony has learnt much from previous unsuccessful products. The Sony MSX home computer, for example, did not attain a satisfactory level of success. But it did teach Sony development engineers valuable know-how that would be applied in later years. In effect, these engineers became living resources, representing latent power within Sony that did not exist in other AV companies (Sony.net).

Another strength of Sony is their ability to be successful in several different markets. They have made an impact in the video game market, the PC market, and especially the television market and there are still numerous others.The greatest asset of Sony is of its human capital, especially its engineers which make up the R&D department. Their constant innovation is crucial for a consumer electronic firm which specializes in audio-visual equipment and the higher profit margin, which comes from being the leader of the pact. Subsidiaries are also well established, such as in the United States and Europe which give Sony a distinct local hands-on knowledge of the local market. It also makes Sony an international corporation, bringing together the talents and best of strategies of both world to the organization. Besides the employees, the two founders, Ibuka and Morita also legends in their fields which they create vision and sense of direction for the organization. They also acts as bridges between the employees and the management. The self promoting system and job rotating systems creates satisfaction for employees and give them greater exposure to all aspects of the business. Ideally, this would produce better products as engineers gain knowledge on consumer needs while marketing people engaged in the production and can give their point of view. The goodwill of the company among the consumers is one of the biggest asset of Sony corporation. the general image of the company is it a big company with huge experience in every field they are in ,provide high quality products, very expensive and best product.Distribution network of Sony and all its subsidies id world class.Showrooms made exclusively for the Sony products are very exclusively made. Which makes a customer entering it get caught spirit of Sony and feels completely dragged by it.

Weakness

Sonys biggest and most recent weakness is their lack of innovation with PS3. Sony focused on digital technology when building the PS3 and it has the ability to export video in high-definition. But this technology can only be viewed on a high definition TV so a lot of people will not even be able to see the full potential it has to offer. Another downfall to the PS3 is the price, which Sony has recently lowered by $100. Yet the weakness of the PS3 is even deeper when considering the range of video game selections. The majority of games available are all first-person shooter games, which appeal to a particular market. There are few games that appeal to a different section of video gamers. Sony executives made it clear that they know they need to do more than lower prices to woo consumers back to its flagging video.game.brand.

Opportunities

Sony seeks a lot of opportunities that utilize their strengths of innovation. At Sony Ericsson, design is about more than just a good looking product: it is integrated into every step of the process intelligent features, user-friendly applications, innovative materials and, of course, attractive visual appearance. Design is the essential differentiator when comparing mobile communications products.

Sony's Reader, a device the consumer-electronics giant hopes is an early draft of how the world will read books in the future, is another innovation that Sony is using as an opportunity to enter a new market. The downloaded books generally cost 20 to 30 percent less than their dead-tree counterparts, which is also setting a standard on what is expected in regards to new.products.That.encourage.environmentally.friendly.devices.

One of the other CSL projects most likely to succeed was a nifty little piece of graphics software for cell phones by Ivan Poupyrev. It might not sound like much, but the ability to draw realistic icons and avatars directly on a standard (non-touchscreen) phone is sure to add.Appeal.To.users.of.mobile.social-networking.sites.

Although there was far too much on display today to cover in depth here, there was a clear emphasis on what many predict will be the boom technology of the next few years social networking.in.all.itsforms.

Threats

A common threat facing any company in sales is competition. Sonys Vaio is its newest innovation in notebook computers. The various models range in price from $845 - $2300. However, Dell has a great reputation when it comes to laptops similar to the Vaio and has a broader range of notebooks to choose from, not to mention that Dell has also been a top seller when it comes to desktop computers. Additionally, the cost of a Dell notebook computer seems to have a lower price tag than many of Sonys Vaio models.Sonys top competitors in the gaming industry are Nintendo and Microsoft. The PlayStation 3 sales have fallen behind recently. In 2007, 82,000 PS3s have sold and 360,000 Nintendo Wiis.

In the LCD television market, Sony excels but still faces some strong competition, including Samsung, Sharp, Panasonic and more. Many of these same brands appear in the DVD player.market.that.Sony.has.to.compete.with.

Competition isn't the only threat Sony is facing. Sony most recently had to make a public apology concerning the use of a backdrop in a violent video game, "Resistance: Fall of Man." Sony used the Manchester Cathedral in northwest England in this video game, which features a bloody gun battle scene between American soldiers and aliens. Sony made a formal, public apology on July 6, 2007. However, when asked to withdraw the game or make donations to community groups, they have refused.

REASONS FOR CHANGE BY SONY CORPORATIONProblems of the Sony in Recent Times Sony is facing many difficulties and there are two main reasons have caused to Sonys decline:Lack of Innovation Innovation development, in large part, defined the brand character for Sony. Sony grew to international prominence because of its ability to constantly innovative products over its competitive brand. Further, Sony had the ability to understand the hidden consumer demand & needs and create the product categories through its innovative development. The success of Walkman made Sony the undisputed market leader in portable music player. However, Sony did not follow up with this innovative product line or upgrade any outstanding to sustain its initial success (Surowieckis, 2011). During Apple iPad was introduced into the market, the brand reputation of Sony had dented and has suffered the huge challenges in product innovation (Business@GW, 2012). Lack of Core Competence There is another major problem for Sonys fall from the top is that Sony has ignored the continuous development of core business, nowadays, Sonys failure in capturing the digital music market, such as Sony to lose the market to Apple iPod due to lack continuous improvement so that lack core advantages. Additional, unsuccessful excessive and unrelated diversification, these failing diversification not only spends the brand resources in large part (Rubio, 2012), but also transfers the brand focus from the core of the brand (Lawler, 2012). Sony has stuck up in its multiple businesses: consumer electronics, music label, semiconductor, music online store, movies, games and financial services etc. Hence, Sony has already failed in product positioning and branding due to lack of brand focus and core competence (Byford, 2012). Objectives Lack innovation and core competencies as the vital business problems are identified by Sony. Sony is an innovation leading corporate. Once Sony has lack innovation, it should lose the core competency. Problem solving and decision-making are important skills can be effective in finding the root cause of the problems, making the best decisions and solutions and averting tragedy for Sonys survival and prosperity. Its theory also can enable Sony to achieve a sustainable competitive advantage over rivals. Therefore, through the problems of study for Sony, the present paper discusses how to think critically about business problems, and devise and implement the remedies for overallProcess of organisational change within Sony 1D Form a Team Establish a Sony group with cross-functional. The group of people selected should have key competence connected to the current Sonys problems and be from different areas of knowledge and expertise. 2D Describe the Problem In is in this step important to redefinition and re-map the Sonys problems. Describe these two problems in a measurable quantitative terms by the tools such as the 5W1H (Who, What, When, Where, Why, How). The Sony group should review the data to find overall reasons behind its failure and to why the problems occur, aims at resolve them. 3D Implement and Verify Short-term Corrective Actions In order to prevent these two problems becoming bigger or spreading, define and implement an intermediate actions until the permanent corrective action have been taken. 4D Define and Verify the Root Cause In this step all potential root-causes to the problems should be identified, explained and structured why the problems occurred by the support of applicable methods or tools such as a brainstorming session, Ishikawa, Fishbone, etc. Finally, identify alternative solutions to prevent root causes for further investigation in next phase. 5D Verify Corrective Actions Confirm and evaluate that the chosen solutions will resolve the Sonys problems and without causing new problems in this phase. It can help the Sony group through compare to verify some of solutions might not work or are causing the risks about new problems. 6D Implement Permanent Corrective Actions In this step the major task is to implement the actions that were chosen in the previous step against Sonys problems. The Sony group should establish a detailed implementation plan, so that it is clear everyone commits to the work. 7D Prevent Recurrence Monitor the problems afterwards to explore any possible recurrence of the problems and without causing new problems in order to make ensure that the permanent corrective actions implemented to solving the root causes of the problems. 8D Congratulate the Team Once these two problems are successfully resolved it is important to recognize what the team has accomplished, share their knowledge and expertise and give them praise for their collective efforts.

Changes undertaken by Sony corporationInnovation Oriented Solutions In order to reinforce Sony innovation technology development capabilities and ensure that Sony tied closely to product and service innovation strategy, Shoji Nemoto (head of innovation technology) and Tomoyuki Suzuki (image senior vice president) (Ellen, 2012), both highly experienced and technical knowledgeable individuals with management backgrounds and will lead R&D endeavors to innovation development. Sony also will work with Kunimasa Suzuki (head of products and services innovation strategy) to ensure the efficient innovation development of technology for existing product and service lines (Rosen, 2012), take a lead to push efforts to develop new concepts and acquire next-generation innovation technologies. R&D, design and marketing will more consumer-centric to innovation development and further beef up its designs and features so that revamp brand image (Konan, 2012). Sony is pursuing ever-faster innovation based on its mid-to-long-term strategies and by developing differentiated technologies capable of generating true value in its products. One of Sonys key new business fields is the medical business, which currently comprises medical-use printers, monitors, cameras, recorders and other peripherals. Although Sonys medical-related businesses were previously scattered across several business units, these have now been combined to form the medical business group, under the leadership of Executive Deputy President Hiroshi Yoshioka. (Sony Annual Report, 2012) The alternative solution is that creating new businesses units and pursuing new market fields to accelerating innovation (Kaz, 2012). Brand Focus And Core Competence Oriented Solutions Sony is positioning its digital imaging, game and mobile businesses as the three main focus areas of its consumer electronics business and will plans technology development and focus investments in these three areas going forward. Sony anticipates that about 70% of its total R&D financial budget will be main dedicated to these three areas (Sony Group, 2012). Hence, Sony investing in its core areas in order to nurturing and strengthening its core competence and brand focus towards regaining brand leadership. Sony is accelerating its efforts to turn around the television business, for which it is targeting a return to profitability in fiscal year 2013. Sony has already initiated cost reductions in LCD panel manufacturing in addition to pursuing further production efficiencies by reducing model count by 40% in fiscal year 2012 compared with fiscal year 2011. Comparing fiscal year 2013 to fiscal year 2011, Sony is also targeting a 60% reduction in fixed business costs and a 30% reduction in operating costs as it executes a thorough overhaul of the television business. (Sony Annual Report, 2012) The alternative solution is realigning business portfolio (Minato-ku, 2012), Sony will restructure its organization structure, operating subsidiaries and trimmed down its unrelated diversification business units as it aims at further enhance managerial and operational efficiency. Impact Of Organisational Change After using these solutions Sony increases about 70% of overall sales and 85% of operating income from the entire consumer electronics business by Fiscal Year 2014 (Sony Annual Report, 2012). Among, Sony will target digital imaging business total sales of 1.5 trillion yen and a double-digit. In addition, Sony will target total sales of one trillion yen and profitability of 8% from game business and 1.8 trillion yen from the mobile business, and significant operating income margin improvement.

CASE STUDY 2 ORGANISATIONAL CHANGE KODAK

1. INTRODUCTION OF COMPANY Eastman Kodak Company, commonly known as Kodak, is an American technology company focused on imaging solutions and services for businesses. The company is headquartered in Rochester, New York, United States and incorporated in New Jersey. It was founded by George Eastman in 1888. Kodak provides packaging, functional printing, graphic communications and professional services for businesses around the world. Its main business segments are Digital Printing & Enterprise and Graphics, Entertainment & Commercial Films.SUCCESS YEAR OF KODAKKodak is best known for photographic film products. During most of the 20th century Kodak held a dominant position in photographic film, and in 1976, had a 90% market share of photographic film sales in the United States. The company's ubiquity was such that its tagline "Kodak moment" entered the common lexicon to describe a personal event that demanded to be recorded for posterity.Kodak began to struggle financially in the late 1990s as a result of the decline in sales of photographic film and its slowness in transitioning to digital photography, despite having invented the core technology used in current digital cameras. 2007 was the most recent year in which the company made a profit. However, Kodak ended its most recent fiscal quarter reporting a $19M profit. As part of a turnaround strategy, Kodak focused on digital photography and digital printing and attempted to generate revenues through aggressive patent litigation.From the company's founding by George Eastman in 1888, Kodak followed the razor and blades strategy of selling inexpensive cameras and making large margins from consumables film, chemicals and paper. As late as 1976, Kodak commanded 90% of film sales and 85% of camera sales in the U.S., according to a 2005 case study for Harvard Business School.TIME OF DOWNFALLIn January 2012, Kodak filed for Chapter 11 bankruptcy protection in the United States District Court for the Southern District of New York. In February 2012, Kodak announced that it would cease making digital cameras, pocket video cameras and digital picture frames and focus on the corporate digital imaging market. In August 2012, Kodak announced the intention to sell its photographic film (excluding motion picture film), commercial scanners and kiosk operations as a measure to emerge from bankruptcy. In January 2013, the Court approved financing for the company to emerge from bankruptcy by mid-2013. Kodak sold many of its patents for approximately $525,000,000 to a group of companies (including Apple, Google, Facebook, Amazon, Microsoft, Samsung, Adobe Systems and HTC) under the name Intellectual Ventures and RPX Corporation. On September 3, 2013, Kodak emerged from bankruptcy having shed its large legacy liabilities and exited several businesses. Personalized Imaging and Document Imaging are now part of Kodak Alaris, a separate company owned by the U.K.-based Kodak Pension Plan.It has also been suggested that Kodak originated from the suggestion of David Houston, a fellow photographic inventor who held the patents to several roll film camera concepts that he later sold to Eastman. Houston, who started receiving patents in 1881, was said to have chosen Nodak as a nickname of his home state, North Dakota (NoDak). This is contested by other historians, however, who note that Kodak was trademarked before Eastman bought Houston's patentsEVOLUTION OF BRAND LOGOEarly 1900's. Kodak is the first company to integrate its name and look into asymbol.1930's. Focus moved to the Kodak name and the red and yellow "trade dress" color.1960's. The corner curl was introduced.1970's. The mark retained the red and yellow colors and the Kodak name, but a box and graphic "K" element were added.

1980's. A more contemporary type font streamlined the Kodak name within the existing.logo

Today.The box is gone, simplifying the logo. The rounded type font and distinctive "a" give the name a more contemporary look. Kodak is continuing to use this logo with its sharpened focus on imaging for business.

2. PRODUCTS OF COMPANY:1. Batteries, Chargers, FlashlightsKODAK Batteries are available in wide range of options, so you can find the best battery for your needs. Our range includes Alkaline, Zinc Chloride and Rechargeable batteries to keep your favorite and important items toys, MP3 players, smoke detectors, flashlights powered and ready to go when you need them.

2. Camera Bags and Accessories, Flash Memory Card Readers, BinocularsKODAK Camera Bags are available in various shapes, sizes and materials to fit a wide range of cameras. Tripods range from 6" to 72". KODAK Card Readers are available in many configurations to read most memory cards. KODAK Binoculars range from small pocket size to waterproof/floatable models. Other accessories include: lens filters, wireless shutter releases and led lights.

3. Digital Cameras and Pocket Video CamerasThe KODAK PIXPRO Digital Devices are powerful, economical cameras that give photographers of all levels the confidence they need to make a creative leap forward and find the story in every moment. The PIXPRO Cameras are available in three varieties: compact and easy to use, high-powered zoom and waterproof HD video cameras. 4. Eyeglass LensesThese advanced technological lenses optimize your sight while maximizing your look with all the latest styles in frames. Head to your local KODAK Lens Vision Centre to have your lenses prescribed and fitted by an independent expert.

5. Inkjet Paper and Specialty MediaKODAK Print Media products provide exciting ways for consumers to share and display their photos and information with easy-to-use DIY products and software for the home, school and workplace. The product line includes photo inkjet papers, document papers, specialty inkjet media and software to meet the needs of families and professionals.

6. Personalized and Document ImagingThe Personalized Imaging business markets high-quality imaging products and services. Products include retail photo kiosks and dry lab systems, traditional photographic paper and workflow solutions, still-camera film products and digital souvenir photography services and solutions.The Document Imaging business enables customers to capture, manage and deliver data from digital and paper sources.7. Recordable MediaAs people accumulate more and more digital files - data, pictures, videos, music the need for secure, inexpensive and high-quality storage options is rapidly growing. Kodak provides the perfect solution to your data storing needs offering a large range of optical and digital storage devices and supplies, including flash drives, portable hard drives, CDs, and DVDs. With these products, consumers and businesses have the necessary tools to safely store, access, share and use all forms of content.

RESONS OF ORGANISATIONAL CHANGEPOLITICAL FACTORS: The US government is a very stable government and US product exists in the whole world except for specific countries as Iran and North Korea. US copyright law requires all photo shops to refrain from printing or releasing digital images taken by professional photographers without a copyright release Images taken by amateur photographers may encounter difficulty in having their professional-looking images in print; thus, affecting photo printing sales.ECONOMIC FACTORS: The global economies in the good condition, but the lack of demand for the product negatively affect. Digital camera sales in 2002 amounted to $2.96 billion USD, taking a considerable portion of the total revenue of the industry. Price declines of digital camera made it highly affordable for more consumers, resulting to even greater demands.SOCIAL FACTORS The lifestyle changes and increased in using mobile phones with cameras and affects negatively on the demand for regular camera. Consumers use digital cameras to send them through electronic mail; most digitally-captured images are stored for onscreen viewing. Buyers have become more accustomed to buying technology-based products that contain several features such as digital cameras and photo-capable cell phones.TECHNOLOGICAL FACTORS Terrible development in mobile phones, compact cameras, leads to the end of the regular cameras. Rapid development in camera products brought about by technology requires considerable investments for highly-skilled staff, marketing efforts and production equipment. New digital cameras must have multiple features that are appropriate to current environment and customer needsENVIRONMENTAL FACTORS Kodak has been widely criticized by environmentalists and researchers as one of the worst polluters in the US. According to scorecard.org a web site that collects information on corporate pollution, Kodak is the worst polluter in New York State, having released 4,433,749 pounds of chemical into the environment.LEGAL FACTORS Health and Safety is very important in Kodak and all the products are very safe and company with laws of most world countriesREASON OF FAILURE:Eastman Kodak is a picture-perfect example. It built one of the first digital cameras in 1975. That technology, followed by the development of Smartphones that double as cameras, has battered Kodak's old film- and camera-making business almost to death. Strange to recall, Kodak was the Google of its day. Founded in 1880, it was known for its pioneering technology and innovative marketing. You press the button, we do the rest, was its slogan in 1888.By 1976 Kodak accounted for 90% of film and 85% of camera sales in America. Until the 1990s it was regularly rated one of the world's five most valuable brands. Then came digital photography to replace film, and Smartphones to replace cameras. Kodak's revenues peaked at nearly $16 billion in 1996 and its profits at $2.5 billion in 1999. The consensus forecast by analysts is that its revenues in 2011 were $6.2 billion. It recently reported a third-quarter loss of $222m, the ninth quarterly loss in three years. In 1988, Kodak employed over 145,000 workers worldwide; at the last count, barely one-tenth as many. Its share price has fallen by nearly 90% in the past year (see chart).

For weeks, rumors have swirled around Rochester, the company town that Kodak still dominates, that unless the firm quickly sells its portfolio of intellectual property, it will go bust. Two announcements on January 10ththat it is restructuring into two business units and suing Apple and HTC over various alleged patent infringementsgave hope to optimists. But the restructuring could be in preparation for Chapter 11 bankruptcy.While Kodak suffers, its long-time rival Fujifilm is doing rather well. The two firms have much in common. Both enjoyed lucrative near-monopolies of their home markets: Kodak selling film in America, Fujifilm in Japan. A good deal of the trade friction during the 1990s between America and Japan sprang from Kodak's desire to keep cheap Japanese film off its patch.Both firms saw their traditional business rendered obsolete. But whereas Kodak has so far failed to adapt adequately, Fujifilm has transformed itself into a solidly profitable business, with a market capitalisation, even after a rough year, of some $12.6 billion to Kodak's $220m.

Organisational change undertaken by Kodak

As the brand with largest market share in category dominated by premium brands, Kodak should exercise the high road strategy that implies high levels of innovation and judicious pricing.

If Kodak starts to compete on price, they run the risk of transforming the category into a commodity.

As the Market Leader, Kodak should not react desperately to movements of small companies, but it should protect its market.

Kodak must align its interest with those of the retailers.

Sell on brand equity and image promise consumers that although they cant see perfection, it exists

Kodaks existing buyers are predominantly brand-loyal giving them a lower-priced Kodak branded option could subsume higher-margin lines

Instead of Royal Gold, disambiguate the two Gold lines and rename Ektar as Kodak Platinum and Kodak Gold Plus as simply Kodak Gold. By having Gold and Platinum, the company clearly communicates quality differences to the consumer

Widen channels - Distribute Kodak Platinum through all the channels, not only through camera shops.

Launch an advertising campaign that emphasizes long-term quality over short-term savings and educate the consumer.

The company should focus its efforts on innovation in all product lines, thereby justifying and maintaining its premium market position. Innovation is the only way Kodak can fight their product becoming a commodity.

Product launches may be supported by promotional activities and materials that further educate the consumer about the superiority of Kodak products.