Organization Change and Innovation

Wayne / 2018-12-12

Case Questions

Question 1

According to Caluwé and Vermaak (2007), planned change comprises of preplanned actions aimed at a particular goal. As a store manager, there are steps that I can take to ensure that the planned change is successful. Since the need for change has already been identified, the first step would be setting the goals for change. For example, one of the goals may be to make the store more attractive for customers. The next step is to identify a change agent tasked with implementing the change. A poor choice at this stage can make it hard to attain the desired changes. In addition, it is important to assess the climate within the company in order to help the employees embrace the changes. There are always some employees who consider a particular change unnecessary hence the need to let them know how the company stands to benefit. At this point the change implementation method can be selected followed by a plan of the implementation process. The plan answers the when, where, and how questions. Finally, the plan can be implemented.

Question 2

Part of IKEA’s marketing strategy is the provision of beautiful but affordable products. When introducing a new product, price is the initial, most important consideration. This has made it possible for the company to sell products at a price 20-50% below that of other players in the market. Although an IKEA executive admits that it is easier to produce beautiful, expensive items, the company hopes to make people stop viewing furniture as durable goods. Instead, they can experiment with change regularly given IKEA’s friendly prices. Therefore, the lamp in the IKEA TV ad represents a used piece of furniture that is no longer of use to the owner. Other people wonder why it has been abandoned and feel sad. However, to IKEA, there is no reason to feel bad since the item can be replaced. The TV ad encourages people to embrace change and experiment as much as possible.

Question 3

Every so often, customers’ needs and preferences change. Take for example, customers buy a beautifully designed sofa today but a few months down the line they begin to question their choice. Suddenly the sofa appears dull, ugly or poorly designed. Most probably the sofa looks as good as it was a few months ago but their needs/interests have changed. To keep up with these changes, innovation is necessary. Therefore, the IKEA executive means that now and every day is the best time to be innovative.  Besides, the company must also deal with competitors who are probably more innovative and keen on ensuring that the customers’ needs are met. Beating competition is almost impossible if the company supplies the same design of products for years. Through innovation, a company can gain a competitive edge both locally and globally (Afuah, 2009). Undoubtedly, IKEA must continue to uphold the spirit of innovation.

Question 4

I would want to manage an IKEA store for various reasons. First, they have a clear set of objectives that they want to achieve. For instance, they seek to provide well-designed and affordable furniture and furnishings. Having clear set goals minimizes confusion, and saves time. In addition, the company’s innovative culture makes it more appealing. All persons within IKEA are given the opportunity to share their ideas. This explains why the company has managed to develop so many products. Besides, am impressed that IKEA is concerned about people who are just starting out in life and not able to purchase every expensive products.