The trend towards larger-scale commoditization was accelerated by the process of digitization. Previously considered luxuries, goods became available at mass market prices due to the affordability brought by digitized design, manufacturing, and distribution systems. The success of this new computer-driven world of manufacturing and distribution became crucial.
Digitization has a wide-ranging impact on various domains like arts, entertainment, business, and society. It plays a vital role in the design, manufacturing, and distribution of products. Additionally, it is important for how consumers access and exchange information, consume entertainment, and how companies handle their financial and operational aspects. Furthermore, it serves as a fundamental resource for farmers who utilize satellite-based insights to guide their field work such as plowing and fertilization. It also provides them with crucial information about the sales potential and pricing of their crops.
The advent of globalization has integrated all nations into a unified economic system, alongside the rise of social media, enabling widespread participation in a mediated social structure. Consequently, every company’s approach should encompass a global market, wherein a growing number of individuals engage in social and business networks that surpass national divisions.
Globalization has become powerful and influential, making it imperative for all companies to grasp the present and future effects of global trends on their operations. They must create a strategy for globalization to capitalize on learning prospects from different markets worldwide and potentially expand their customer base. Considering that customer communities are also global, any major company must tackle global markets to achieve successful operations. Additionally, social mediaization has become prevalent throughout society.
The increasing relevance of digital technology extends to various aspects of life, business, and society. The internet and numerous software tools have become indispensable in modern business operations (Morris, ). The introduction of change often elicits various reactions from employees and individuals. Asking people to alter their established routines can make them feel uneasy or uneasy as they try to unlearn their old habits and adopt new ones.
At first, individuals tend to prioritize what they will have to sacrifice, even for positive changes such as promotions or gaining more autonomy or authority. Regardless of everyone else being involved, individuals still feel solitary. Each person desires to believe that their situation is one-of-a-kind and exceptional. Regrettably, this often intensifies the feeling of being isolated during times of change. Individuals can only cope with a certain amount of change.
Experiencing excessive change within a brief period can lead individuals to dysfunction and, in certain instances, physical illness. Though some changes are beyond our influence, it is crucial to avoid overwhelming oneself with an accumulation of changes. While downsizing, for example, presents opportunities for positive outcomes, the timing of further changes should be carefully considered. (Administrator, ).
Perrier is experiencing difficulty in generating profits, with a pretax profit margin of only 0.6% in 2003 on $300 million in sales, while the Nestle Waters division as a whole achieved a margin of 10%. The company continued to incur losses in 2004. There is a strained relationship between management and workers, as nearly all (93%) of Perrier’s 1,650 employees are members of the CGT union. The management perceives this union as consistently hindering Nestle’s efforts to enhance Perrier’s financial performance. In response to Danone’s launch of a competing product called Badoit Rouge, which directly rivals Perrier’s new carbonated brand called Eau de Perrier, Perrier’s management placed bottles of Badoit Rouge in the factory cafeteria.
The purpose of emphasizing the head-to-head battle for the niche in the market to Perrier employees was not well received (Palmer, Dunford, & Akin, 2009). Education can be a helpful approach to managing resistance to change, as it informs employees about the reasons behind the change and can reduce resistance. Effective communication is also crucial in addressing resistance to change.
Effective communication is essential in ensuring that employees understand their role and responsibilities during a change process. It is important to consider possible confusion, resistance, and feelings among employees, in order to anticipate and address any potential issues. Forcing or pushing too hard can result in resistance that hinders the success of the company and the change.
Managers need to act as change agents during the implementation of changes. Being change agents means being catalysts that guide the change process smoothly from one phase to another until it becomes a permanent part of the organization. Change agents should have the ability to motivate others, demonstrate strong interpersonal skills, flexibility, confidence, and the ability to gather ideas from different sources. Organizational leaders should consider these characteristics when selecting someone to manage the change process.
Managers are responsible for leading change and addressing change-related anxiety. One effective strategy they can employ is providing information. By answering questions, addressing rumors, acknowledging uncertainties, and leading by example, managers can alleviate fears about change. Additionally, hosting question and answer sessions with those affected by the change can help dispel fears of the unknown (Ratini, ).
References
- Administrator (n. d. ). How people react to change. Retrieved February 17, 2013, from http://mdi. com. pk/management/2009/05/how-people-react-to-change/ Morris, L. (n. d. ).
- Innovation Management. Retrieved February 17, 2013, from http://www. innovationmanagement. se/2011/08/26/the-driving-forces-of-change/
- Palmer, I. , Dunford, R. , & Akin, G. (2009). Problems at Perrier. In McGraw-Hill (Ed. ), Managing organizational change (2nd ed. , pp. 72-73).
