The paper "Change and Reasons for Strategic Need for Change" is a perfect example of a Management Assignment. The Global Financial Crisis had adverse effects on the growth and profitability of the company. The clients have cut back their purchases by 50% in the last six months. The two competitors in the business have become aggressive despite the impact of the global financial crisis. They have become tougher competitors and the company is the risk of losing out. The company has to maintain its market share and look for ways of countering the slashing of orders from its current customers.
There is a need to improve efficiency and gain the advantage of the competitors in the market. A new client has been secured through the efforts of the marketing and sales department. The client has a tougher contractual agreement and has sophisticated systems that need to be implemented. The organization has to adapt to the required new systems of the new customer or risk facing uncertainty as well as possible closure in the next two years. There is a need to purchase the new SAS which is user-unfriendly and train the employees on how to use it.
The company has to spend money on the implementation of the new system and train its employees on how they use the user-unfriendly system. The company has to overhaul tracking, purchasing, administration, and compliance framework. The organization has also had to come up with new procedures and policies. The company has to implement change or risk losing out in the business to its competitors. The marketing and sales department has to be very aggressive and secure other customers. SWOT analysis in relation to the intended change Strengths The indented change will enormously benefit the company.
The new client will bring in $1million in terms of income. Training of employees and implementing the new system will enhance the efficiency and productivity of the company and give it a competitive advantage. The new client is enormous and if he is secured, the company will realize growth and profitability. The old system of the company will be replaced with a more sophisticated system. Weaknesses The new system that has to be implemented is user-unfriendly and will cost a lot in terms of training and implementations.
The system will cost $250,000 for the company for all the employees. Implementation will require an extra $10,000 and five thousand dollars for labor. The old system will be rendered obsolete as the company implements the new system. The system will also need time to implement. This will affect the productivity of the company and its profitability. Opportunities The employees will have a chance to be trained on new technical skills that will be needed to carry out functions with the new system.
The organization's efficiency will improve and it will have the opportunity to deal with other sophisticated cases that may arise. The company has also had an opportunity to assess and evaluate the resources available and ensure maximum utilization in the company. The company will take the chance to ensure that all employees are computer literate and those who cannot adapt are laid off. The change plan will propel production to a new level.
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