1.0 IntroductionChange in society is inevitable and affects almost all key sectors in the society (Mittal 2012, p. 64). This makes change to be inevitable in modern world of humankind. One area change has become inevitable is the modern organisations. Business environment remains dynamic, a fact that continue to force organisation to embrace change in their strategies in order to remain competitive (Mittal 2012, p. 64). Therefore, change at any stage, level or situation becomes an important phenomenon to study and evaluate its impact to modern organisations. 2.0 Case-study: Retail Rescue Plan for David JonesDavid Jones is not the way it was a few years ago.
Many changes continue to take place in the business environment that affects the company. For example, attempt by the company to develop and operate an online shop, ten years ago, failed resulting in a big loss amounting to $28 million (Sue 2011, p. 1). There is increasing consumer mood shift that can be partly linked to increasing growth in the online retailing. But for DJ, it has been unable to capture and response appropriately to this consumer mood shift and the company has largely under-invested in technology (Sue 2011, p. 2).
Besides, David Jones has issues to do with people management. The company’s staff exhibit low morale and motivation can be said to be low. The situation has dilapidated into high turnover with top talents and great knowledge in the company moving out (Sue 2011, p. 3). The entire scenario has greatly affected activities at DJ especially in service provision. Investors are worried about weakening of company’s brands in the market. To change the current situation, DJ’s CEO, Paul Zahra, aims to implement a strategy in order to restore sales, margin and profit growth in the company.
The company also intends to increase and improve its bricks and stores, improve services, create and introduce more brands, improve pricing strategy, improve the quality and style of products and improve overall customer service experience (Sue 2011, p. 3). Although the company is determined to build its success on this strategy, the company does not forget or underestimate the difficulties it has faced in the past such as share and debt market volatility, impacts of natural disasters and soft house prices (Sue 2011, p. 3).
Fixing problem at DJ has invited opinion and analysis of many experts. For example, social researcher, Ross Honeywill, believes that DJ has multiple problems, especially in department store sector, that are deep-rooted and no easy solution available to apply to these problems (Sue 2011, p. 3). 3.0 Change processThe following is a discussion of how change at David Jones can be initiated and facilitated successful using a specific change management model. 3.1 Need for changeDifferent factors exist that explains why change may take place in an organisation.
For example, businesses in modern world are not immune to change; they are required to change in order to respond and fit well in the changing business environment (Ramanathan 2009, pp. 35-36). At the same time, change can be seen to be precipitated by changes in business environment such as shrinking markets, changing customer needs, changing workforce, increased government regulation and many more.