Change Management: McDonalds, BMW, Starbucks and Continental Airline

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Restructuring Programme
Mergers and Acquisitions
Corporate culture
Role of IT in Change Management
References

Restructuring Programme

Change management is the process through which an organization changes its operations from the way it is operating at the present moment to a future desired mode. Change management is done to empower the employees and the business as a whole to keep up with the changes that are taking place in the business environment. Changes that can take place in an organization may include missionary changes, operational changes, strategic changes, technological changes and changes in the attitude and perceptions of the employees.

McDonalds undertook an organizational change which aimed at maintaining the company’s strength, capabilities and the competitive advantage it had over other companies in the food industry. This was as a reaction to changes which were as a result of generational change in its target customers.

Started in the fifty’s, McDonalds target customers have mainly been children and young adults. Through the variety of the fast foods that the restaurants have been selling, the business has been growing since then making good profit. However, at the present moment there has been a change in the taste and preference of consumers as a result of them being cautious about their health and nutrition.

McDonalds have implemented integrated marketing communication (IMC) as a part of their marketing strategy (Michelle, 2011). This strategy uses mediums of communication as a mode of advertising and promotion of their products. Through this campaign they have adopted a new health conscious strategy which is in line with the health awareness on obese children by introducing a new healthy and low fat menu for them.

This menu is called McKids meal and it is very different from the older menu that was present at the restaurants. For this innovation to be successful, a team of experts was put in place to check the progress of the change. The organization also used a combination of market mix and advertising strategies to reach out to more people. All this hard work aimed attaining consumer satisfaction so as to ensure that the loyalty of their esteemed customers is maintained.

Mergers and Acquisitions

BMW has been involved in a lot of mergers and acquisitions over the years. Its main aim is to join forces with other successful companies and produce powerful hybrid cars. Acquisition is the process by which one company gains control over another while merger is the process by which two or more corporations join up together in partnership so as to achieve certain goals and objectives.

BMW was for example motivated to purchase Rover and Land Rover so that it can strengthen and diversify its operations, gain market power and adjust to changes in the external environment (Lawrence 2003, p. 7).

At first the acquisition seemed to be failing because of several technicalities. The cars which they produced were somehow much expensive than those which were already in the market thus sales went down. BMW did not also conduct sufficient research on how this acquisition will add more value to the firm.

The anticipated growth into new market did not materialize due to the difference in the culture and backgrounds of these two companies; BMW is German while Rover is English. The culture clash made the loyal customers of each company to seek for alternatives (Lawrence 2003, p. 8).

To solve these problems, the management of BMW developed a business model that was based on excellence; a quality which has for a long time been associated with the company and started to manufacture luxurious and excellent cars which their consumers actually needed. This move was successful since the company started to sell more cars and earn profits.

Corporate culture

Executives at Starbucks normally credit their employees for the success which the business has been experiencing over the years. They refer to their employees as partners or their people giving the employees a sense of acceptance and belonging (Weber, 2008). The corporation has set up strict guidelines which have ensured that their employees maintain this culture.

Starbucks have got guidelines which managers have to follow during the process of recruiting new employees so as to ensure that they have got relevant skills, good behavior and are competent to work. They also have efficient communication mechanism that allows information to flow in all directions in the organization. This aids in ensuring that the information is not biased and employees are not afraid to talk to their superiors about their problems.

Employees have to maintain respect to one another and to their superiors while management is supposed to solve any disputes by using a common yardstick. Lastly, the employees are expected to treat the customers with courtesy and respect and ensure that they are satisfied with the services which the company offers. These guidelines have ensured that the corporate culture of Starbucks is maintained hence it continues to enjoy its success.

Role of IT in Change Management

In the early 1990`s Continental Airline was undergoing financial crisis which almost led to their bankruptcy. They however developed a new strategy which improved their operations and lead them out of bankruptcy. The only way out was to incorporate IT in their management and operations.

However, due to their financial constrains and lack of expertise in the field they had to partner up with an outsourcing IT firm. That is why they signed a ten year contract with EDS which provided the necessary skill and manpower in the field of information technology (Wejman, 2000, p. 22). This strategy was successful and by the mid 1990`s Continental Airlines had moved out of bankruptcy and had started to earn profits.

The strategy would not have been a success if the top managers of the company did not embrace technological advancement and realized that it was necessary for the maintenance of the progress which the company had made over the years. Top managers also realized that it was necessary to incorporate information technology in its operations since most of the innovations which they wanted to put in place required IT as a base.

This included things like online flight booking, checking of the flight status, communication among the staff and with customers all over the world and ease of making operations within the organization become faster and easier by the use of computers. The company therefore outsourced so that it can concentrate fully on its field of core competence and also to save money. The agreement it signed with EDS therefore gave the company a breathing space away from the pressures it was facing.

The IT which Continental Airlines use is flexible in nature so that it can cope with the changes in technology and the business world. This is because the world is dynamic and change occurs every day. For example, the IT which the company is been using has changed from mainframe to client-base and now the current system application is web-based. Therefore, the IT of a company has to be flexible to meet the future needs.

References

Lawrence, K. (2003) Why did BMW.s Acquisition of Rover Fail? Unpublished BA (Hons) dissertation, Bournemouth University.

Michelle, S. (2011) Management of Change: McDonalds Bahrain. Ivythesis.com. Web.

Weber, G. (2008) Preserving the Starbucks Counter Culture. Workforce.com. Web.

Wejman, B. (2000) Continental Airlines: Outsourcing IT to Support Business Transformation. International Journal of Communication, 2 (1), 19-25.

Click Here To Order Now!