Problems at Perrier Nancy Wilcox Strayer University HRM 560 Professor Vanessa Graham February 17, 2013 Problems at Perrie This process of digitization accelerated the trend toward larger-scale commoditization, as goods that had once been considered luxuries became so cheap to make that they became available at mass market prices by leveraging digitized design, manufacturing, and distribution systems. This new computer-driven world of manufacturing and distribution became essential to the success.
Digitization also impacts all aspects of the arts, entertainment, business, and society, and it’s crucial to how products are designed, manufactured, and distributed.
It’s essential to how consumers gather and share information, and how they get entertainment, and to how companies manage their finances and operations. It’s even a basic resource for farmers, who plow and fertilize their fields according to what they learn from satellites, and it also tells them how, where, and for how much they can sell their produce.
Globalization has drawn every nation into a single economic system, and through social media, many of us are now participating in a mediated social system as well.
As a result, every company’s strategy must address a globalized market in which increasing numbers of people are participating in social and business communities that transcend national boundaries.
The power and impact of globalization means that it’s essential for every company to understand the current and future impacts of worldwide trends on operations, to develop a globalization strategy to optimize learning opportunities through exposure to various markets around the world, and perhaps also to extend its reach to new customers. As customer communities are also global, no large company can hope operate successfully without addressing global markets. And finally social mediaization throughout society.
Digital technology becomes progressively more significant as it’s applied to more and more functions of life, business, and society. Business today is inconceivable without the internet, and the countless software tools that we use to manage the modern enterprise. (Morris, ). There are many different reactions to employee’s and people in regards to change. Whenever you ask people to do things differently, you disrupt their habitual ways of doing things. This tends to make people feel awkward or uncomfortable as they struggle to eliminate the old responses and learn the new.
People initially focus on what they have to give up. Even for positive changes such as promotions, or those that result in more autonomy or authority, people will concentrate on what they will be loosing. People will feel alone even if everyone even if everyone else is involved. Everyone feels (or wants to feel) that their situation is unique and special. Unfortunately this tends to increase the sense of isolation for the people undergoing change. People can only handle so much change.
On a personal level, people who undergo too much change within too short a time will become dysfunctional, and in some cases may become physically sick. While some changes are beyond our control, it is important not to pile change upon change upon change. While change such as downsizing bring opportunities such as positive thing, the timing of additional change is also important. (Administrator, ). Perrier struggles to turn a profit. In 2003 its pretax profit margin on $300 million sales was only 0. 6% compared with 10. % for the Nestle Waters division overall. In 2004 it again recorded a loss. Relations between management and workers are not good. Almost all (93 percent) of Perrier’s 1,650 workers belong to the CGT, a union that is viewed by the management as consistently resisting Nestle’s attempts to improve Perrier’s financial performance. Danone launched a new product (Badoit Rouge) that was designed to directly compete with Perrier’s new super-bubbly brand, Eau de Perrier, Perrier’s management put bottles of Badoit Rouge in the factory cafeteria.
This had been done to emphasize the point to Perrier employees that they were involved in a head-to-head battle for that niche in the market. However, this act was not well received. (Palmer, Dunford, & Akin, 2009). One approach that can be used to manage resistance to change is education. Educating the employee’s as to the reasons for the change can result in less resistance. Communication is another key element for the resistance to change.
If the change and the process is communicated effectively then the employee’s will understand their role in this change and what is expected from them in order for this process to go smoothly. And finally, understanding. You must understand the confusion and the feelings of your employee’s and the resistance that you might encounter in order to develop a counter plan in the event that the resistance actually takes place. You cannot force to much to hard or the resistance will only damage the company and the change will not be successful.
When implementing change, managers must act as change agents. By definition, change agents are the catalysts that ensure the change process flows from one phase to the next until the change becomes permanent. Change agents possess an ability to motivate others, exhibit strong interpersonal skills, flexibility, confidence, and an ability to derive ideas from variable sources of input. Organizational leaders should look for these characteristics when assigning responsibility for managing the change process.
Managers, though often not the precipitators of change, are accountable to the organization for leading change. One of the most powerful tactics managers can use to alleviate change-related anxiety is to provide information. Managers serve to assuage fears about change by answering questions, addressing rumors, acknowledging uncertainties, and leading by example. Managers can remove fears of the unknown by hosting question and answer sessions with those affected by the change. (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). New York: McGraw-Hill. Ratini, B. (n. d. ). The managers role in implementing change. Retrieved February 17, 2013, from http://execclub. org/? p=488 Heading 1 Heading 2 Heading 3 Heading4 Heading 5
Cite this Case Study: Problems at Perrier
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