Allworld Foods Case Study – Management Issues
This report will provide suggestions for the betterment of Larboards, for both its’ employees and customers and once again, to become a market leader. The four areas of major concern are the need for cultural change, improvement of organizational management and leadership and the implementation of more effective planning for change. Poor management practices have caused strained elation not only between the hierarchy within the firm but to subordinates also. Poor leadership has seen discontent staff with no sense of direction and a bleak working environment.
Inadequate planning has caused a dramatic loss of customers and dividends, as no new strategies had been planned or thought of and there were no set goals in the organization. The need for cultural change cannot be overstated as this is the core problem at Lowered Foods. This has resulted in a drag on productivity, progress and overall organizational performance. The road to regaining the reputation and esteem they once possessed will be very Eng but well worth the effort. Firstly Larboards will have to plan new strategies that will fit with the external environment to bring back lost customers.
It will then go on to discuss how the issues of leading, planning and management structure are hindering the growth of Lowered Foods and based on these implications examine ways in which managers should integrate policies to aid in making their organization sustainable. This report will also provide suitable recommendations that should be observed as this will help in improving the sustainability of an organization. The limitations in the compiling of this report were the word count limitations, scope and sources of research.
It was difficult to keep within the number restrictions, whilst till trying to implement applicable reference material in sufficient depth found through research. 2. 3 Sources of Data All information used in this report is from secondary sources and have been found through peer reviewed Journals, web sites, newspapers online databases and books. 2. 4 Organization of Report The report will discuss in detail how the culture developed in an organization can be key component to obstructing the success of the firm.
Managerial leading, planning and change of organizational structure and culture will be discussed, as these are issues that are crucial to the efficient operating of an organization. Based on these issues the report will further go on to explain how the implementation of strategic goals, a culture – strategy fit and performance management can be used to aid in preventing loss of dividends and customers, retention and satisfaction of personnel, all of which will provide for a more sustainable organization.
Recommendations for all identified major organizational problems will be respectfully outlined, stating each suggestion, its benefits and how it can aid in corporate sustainability. In conclusion, the main findings will be stated and a plan of execution of subsequent recommendations will be discussed. Organizational culture can influence the effectiveness of an organization and is particularly important when attempting to manage organization wide change.
Manager (2000) states “practitioners are coming to realism that, despite the best- laid plans, organizational change must include not only changing structures and processes, but also changing the corporate culture as well. ” Lowered Foods recognizes that their current organizational culture needs to transform to support the organization’s future success and progress. It has been affirmed that a well constructed and managed organization culture, closely associated to a successful easiness strategy, can denote the difference between triumph and failure in today’s demanding environment (Waddled, Cummings and Worker, 2007).
In order to address this there is a need to understand the dimensions of organizational culture that lead to successful implementation of the change necessary for Lowered Foods to become a more effective premiere grocery chain. Hatfield (2009) explains that an organization must plan where it wants to go before trying to make any changes in the organizational culture. Lowered Foods needs to have a clear picture of where the organization is currently and thus can plan where it ants to be next.
At present their position as market leader is under great threat due to a changing external environment, ideally Lowered Foods would like to continue to be the premiere grocery chain for years to come. It is evident that the organization’s assumptions can accompany those of their external surroundings. Corporate culture is the result of long term social learning and reflects what has been effective in the past (Scheme 1992).
At Lowered Foods they believed that their old strategy of increased advertising and aggressive pricing would still achieve they same positive outcome as it has when previously used in the past. This is depletive of the pattern of basic assumptions held within their organizational culture, as this strategy would have been passed down to succeeding generations of employees as an effective remedy. Vice (1992) notes that as organizations develop over time, they tend to become less open to change, less responsive to external environmental changes and more inwardly focused and reactive.
Lowered Foods have been changing and expanding but their organizational culture seems to have maintained the same shape it had when created by previous Coos and senior staff. Early experiences highlight the importance of the founding stages of an organization, and that founding leaders need to rapidly put in place effective capabilities, controls and routines, and create a culture that is open to learning and innovation (Pears, 2009).
It is perceptible that with an accumulation of experience organizations may become more successful but could also become less adaptable and less open to new ideas, which seems to be the case with Lowered Foods as they are finding it difficult to adapt to the changing environment and don’t have any new ideas as to how to get their sales back up and claim their prestige reputation apart from old methods that are not as effective as they used to previously be.
Leaders need to be externally focused, having a clear understanding of the environment they are operating in and its associated challenges and opportunities, so that effective strategic leadership can be exercised (Pears, 2009). Lowered Foods needs to gain a better understanding of how their external surroundings are affecting operations and that as the environment changes and develops so must the organization. Culture is a powerful component of an organization’s success, laying the tracks for tragedy to roll out on.
Trice (2009) states “Aligning organizational culture with strategy is a powerful means for gaining competitive advantage and industry or sector leadership”. Larboards seems to have no culture – strategy fit, the current strategies they already have in place seem to work away from the organizational culture. Organizational culture is a critical foundation which shapes the way that the work of the organization gets done (established through goals, plans, measures, rewards) and the infrastructure (systems, process and structures) gets utilized Caber and Panache, 1999).