Corporate Strategy And Organizational Change

Published Date: 02 Nov 2017

Introduction

Change is a vital element in an individual’s life in order to progress. Bringing about change within an organization is also a significant component for the survival of the organization on today’s competitive business industry. This change must be properly planned to make the organization for effective and efficient. Leaders play a significant role in the proper planning and implementation of the change in organization. Dominos pizza have come a long way towards success and is one of the leading pizza chain worldwide. The success of Dominos is based on their effective corporate strategy, change management, and strategic leadership. This paper will discuss and analyze the case study of Dominos pizza through incorporating various journal articles.

Corporate Strategy and Organizational Change

Article 1: Edmonds, J. (2011), "Managing successful change," Industrial and Commercial Training, vol. 43, no. 6, pp. 349-353

In this journal article, the author has highlighted the importance of managing the change successfully. The article emphasize on the training and development of the employees to unsure that they are able to adopt the change. The author states that proper training can provide deeper understanding of implementing and adopting the change within the organization. According to the article, change within the organization is crucial for the success and prosperity (Edmonds, 2011, pp. 349-353). It ensures that the organization is equipped with the latest technology and is able to keep up with the changing demands of the customers and market. Incorporating change in the organization requires proper planning and strategies. Every organization is unique in its own why which is why there is no proper template for what is a successful change management strategy. One strategy can be a success for a certain organization but can be a failure for another organization. This is the reason why the author states that it is necessary to design the change management strategies as per the requirements and demands of the organization. However, there is one thing which possesses an evident challenge for an organization opting for change implementation, which is the resistance of the employees towards the change. According to the article, the individuals fear change because of the unknown. They do not know what will happen if those certain changes will happen. This is the reason why the change management strategies must include the proper training of the employees (Edmonds, 2011, pp. 349-353). Through proper steps and strategies, this resistance can be overcome as the employees will be ready and well prepared to face the change. The strategy must include training, building teams, overcoming conflict, fears and objections so that the change can be effectively managed and adopted by the entire organization.

Article 2: Bhat, J. (2010), "Managing innovation: understanding how continuity and change are interlinked," Global Journal of Flexible Systems Management, vol. 11, no. 1/2), pp. 63-74

This research article is focused on the major processes of change and continuity which are involved in the management of the innovation in the organization which increases their competitive advantage. The article also highlights the relationship amongst these processes. These processes offers the organizations to design and implement an effective approach to in order to deal with problems and challenges which are faced by the organizations when incorporating innovation in order to gain competitive advantage (Bhat, 2010, pp. 63-74 ). According to the authors, the effective management of change and continuity is increasingly becoming more important which has become the area of interest in the recent years. This article makes an emphasis on the fact that the organization can manage its competitiveness in as efficient way through proper management of both change and continuity. The study of the literature has been done in order to identify the major processes of innovation management which are related to networking, managerial, learning, organization and technology. This research has conducted an opinion survey of the manufacturing firms of India and the data collected through the research has been analyzed through stepwise regression analysis in order to determine the relation amongst the dimensions change and continuity in these processes of the organizations (Bhat, 2010, pp. 63-74 ). The article has determined that the processes related to continuity are the dominate processes which are now being given more attention in order to increase the organizations’ competiveness. The processes which focus more for the enhancement of the learning capabilities of the employees and the innovation processes in the firms are related to the change management processes.

Article 3: Dennin, S. (2001), ‘Reinventing management: the practices that enable continuous innovation’, Strategy & Leadership Vol.3, no.3, pp.1-24

The authors focus on creative and innovative culture throughout the business process by replacing the traditional role of managers with a new creative role, shifting traditional management to a new era with all employees. This approach entails a simultaneous implementation of the five shifts in management to bring in a continuous innovation and flow of improvement, added value with radical transparency, commitment and disciplined execution (Dennin, 2001, pp.1-24). The five shifts in management involve 1- Transition from shareholder capitalism to customer capitalism by committing all organization resources, system, processes, communicate positively, customizing solution and partnering with customers to add value to clients. 2- Shift manager’s role from being a controller to become enabler of their subordinate; empowering to become self organizing small empowered decision making teams, hiring for attitude and train for skills, motivate, evaluate fairly and reward and recognize performance 3- de-layering unnecessary managerial coordination bureaucracy to managerial dynamic linkage making work, decision making, the how to and how long would it take, attain feedback report and measure progress in short cycles (Dennin, 2001, pp.1-24). 4- Moving from making money to shareholders to providing a flow of added values through continuous improvement to customers. 5- The above four shifts success is subject to communication in an effective, two ways, result oriented, responsive, transparent, and authentic adult to-adult conversation. The integration of the five shifts into alive sunrise that shine on all stakeholders will definitely bring the desired result and breed creativity, innovation and a competitive advantage to the organization.

Article 4: Gerry, J. (2009), "Managing Strategic Change—Strategy, Culture and Action," Long Range Planning, Vol. 25, pp. 28-36

In this article, the author states that the high levels of competition, economic globalization and the emergence of new technologies are just three of the many factors that have pushed the organizational change and renewal processes, which are based on continuous innovation, are now a business constant. The corporate life is a sea change in which there are high tides sometimes and other times it's calm, but there are always waves (Gerry, 2009, pp. 28-36). Every day companies face new challenges, be it an established organization or a small business that is just beginning there are always new issues that affect their behavior and performance. In these times of rapid change, new challenges seriously threaten the survival of organizations, new foreign competitors, capital mobilization, difficulty retaining human talent and changing technologies are elements that compel people who hold the reins of the firms to be prepared for change and not only that but to have the ability to motivate people to achieve continuous renewal (Gerry, 2009, pp. 28-36). Change management is not to implement new management models that ultimately prove to be only temporary theories rather is to build the business environment changes for the good of the firm, therefore, companies must not only be flexible but those who manage them must develop a keen insight to anticipate change and to be so always at the forefront.

Critique of the Articles and Relevance to Dommino's Situation

"Creativity is any act, idea or product that changes an existing domain or that transforms an existing domain into a new domain," (Gerry, 2009, pp. 28-36). Creativity resides in the ability to combine elements to form new combinations that have scientific value, as well as aesthetic, social and technical values (Galpin, 2008, pp. 85-90). It results from the interaction of knowledge, intelligence, experience, interest and enthusiasm. Consensual manner, we can define creativity as the ability to perform a production that is both new and adapted to the context in which it occurs. Creativity is seen as a precursor to innovation. "Innovation is the introduction and intentional role in a group or an organization of ideas, production processes or procedures for new appropriate unit designated for the individual, group, organization, or company benefit" (Amabile et al, 2004, pp. 5-32). In this context, organizational creativity allows the production of new and useful ideas by an individual or group of individuals working together, likely to generate innovation (implementation of these ideas).

However, change is not easy, it needs proper planning and strategy. Dominos pizza managed to apply different changes in their strategies. They adopted some and rejected some, they also faced failure and customer's rejection. However, ultimately they managed to find the change and strategy which worked for them. Change and innovation include the development of a marketing system, financial system, management system (use of new methods of management, economic evaluation, change the organizational structure), personnel, manufacturing facility (for example, changes in technology). Dominos pizza was successful in combining change and innovation in their food items which attracted a lot of customers. They started taking feedback of the customers and actually worked on ensuring that the customer's complains were taken care of. This increased their customer following and they regained their lost customers as well.

Systems and Strategic Leadership

Article 1: Amabile, TM, Schatzel, EA, Moneta, GB & Kramer, SJ (2004), "Leader behaviors and the work environment for creativity: Perceived leader support," Leadership Quarterly, 15, pp. 5-32

According to the authors the leadership focuses on the definition of a style or brand of leadership itself for each company or organization. Every company or organization is unique and, therefore, must have its own style of leadership, as we discussed recently. The leadership style must be alignment between business strategy, organizational characteristics (culture and perceived gaps) and leadership systems. Leadership development is important, but only within this system of consistent leadership development (Amabile et al, 2004, pp. 5-32). It's easy to focus our attention on the celebrity, the charisma, the charm of a leader. But that is insufficient and sometimes harmful.

Article 2: Ellen F. Goldman, (2012) "Leadership practices that encourage strategic thinking", Journal of Strategy and Management, Vol. 5 Iss: 1, pp.25 - 40

The article demonstrates that the leadership not in the abstract or as an object of study and theorizing, but as a strategic concept as the most important competitive process of a company. This being the most important process of an organization, as a source of power for all others, then the real search for differentiation and competitive advantage goes through the difference and success in leadership processes of the company (Ellen, 2012, pp.25 - 40). The best companies in the long run are those who have better leadership over time. Leaders are those who develop a systematic way.

Article 3: V.K. Narayanan, Lee J. Zane, (2009) "Inventing a future for strategic leadership: phenomenal variety and epistemic opportunities", Journal of Strategy and Management, Vol. 2 Iss: 4, pp.380 - 404

This article defines strategic leadership as a pragmatic approach leadership in public sector companies. Strategic leadership is focused on results since most of the existing approaches (traditional), are geared to individual characteristics or organizational. Strategic leadership of the results to be achieved towards the concepts, while traditional approaches are based on the concepts, hoping or assuming that the results arise accordingly (Narayanan et al, 2009, pp.380 - 404). That is, in the traditional approach the concept of leadership is an end in itself, a theoretical construct. In strategic leadership, concepts are only instrumental and therefore quite flexible. What matters are the results of companies and public sector entities, no confirmation of the theoretical results. Models, by definition, always have bugs, so should only be references, not an end in itself, as with many of the traditional approaches. This theory-based approach and away from the reality remains that many of the people working in this sector know very little business, productivity, competitiveness, to get achievements and have difficulty combining concepts and reality of the day to day business and public entities.

Article 4: William A. Drago, Christine Clements, (1999) "Leadership characteristics and strategic planning", Management Research News, Vol. 22 Iss: 1, pp.11 - 18

According to this article, there is broad consensus on the importance of leadership for companies and organizations in general. However, the attribute of leadership is not a guarantee of success. Leaders are effective in some situations and periods and ineffective in others, organizations can lead to excellent results as well to disastrous results. In addition, many of the leadership development efforts have had little success (Drago et al, 1999, pp.11 - 18). Rather than question or debate the importance of the concept of leadership, the great challenge is to convert the leadership development efforts into something operational and effective. In a world increasingly complex, uncertain and turbulent, companies should focus more on leadership systems that attract, develop and seduce acting talents as leaders cascade and autonomy of decision, rather than systems based on leading top decision chain. In this context, The author states that the concept of Strategic Leadership, due to its high efficiency, it becomes very important for businesses and public entities.

Critique of the Articles and Relevance to Dommino's Situation

The main component of a profitable business strongly depends upon two main features, leadership and effective strategic management. The strategic management and leadership are the most essential skills which should be possessed by organizations. A strong leader can make a company move towards success (Wren, 1995, pp. 42-46). Strong leadership skills can be achieved through experience, while strategic management can be learned through taking a specialized course. Some outstanding leaders are born; strategic managements are achieved by consulting management consultants. Both are goal oriented that is both are aiming to achieve the goal, both assemble and make the most of the resources (Narayanan et al, 2009, pp.380 - 404). Management and leadership both involve supervisory functions. Furthermore, both work with people. David Brandon's major success was his approach towards the human capital. He understood that employee satisfaction is the key towards customer satisfaction and hence growth and prosperity for Dominos pizza. He had outstanding strategic thinking capabilities. He successfully managed to bring an entire change in Dominos pizza and it resulted in a drastic increase in the sales and profits of the pizza chain.

A leader cannot achieve success without a proper strategic management plan. While, strategic management needs a leader to get implemented. Leadership without management will only give you a short-time pleasure because more probable than not. Management without leadership also goes the same way (Drago et al, 1999, pp.11 - 18). With strategic management, one only have the right ingredients but they do not have the authority to implement them. There are no such goals, missions and visions to follow as there will not be a well defined direction. Brandon, however, had a clear sense of direction. He had a purpose to take Dominos pizza to the top of the industry. Leaders are on the long-term basis as they have vision, they are pro active with excitement for work while managers are on short-term basis as they have objectives, and they are reactive (Ellen, 2012, pp.25 - 40). When outstanding leadership is combined with effective management, one can set a direction and be able to manage the resources the way they want. This holds true for David Brandon. Not only that, Brandon arrived at his destination the way he had planned and wanted it. Dominos pizza is second only to Pizza hut and that to as its fierce competitor.

Application of Lessons from the Articles In Relation to Domino's Situation

The literature reveals that business sustainability in an environmental context complex is dependent on their ability to create and innovate to overcome some challenges. The company in its context is exposed to the influence of an environment more complex: strong competition, consumer unpredictable, a technology that making great strides, political choices and social systems that are increasingly demanding. Head of the company is the hub and the main driving force of any innovative and creative process (Westwood & Low, 2003, pp. 235–259). The leader’s activity covers all stages of innovation management, starting with the development of innovative ideas and planning to implementation of control over the process of innovation. That is why in today undergoing significant change system requirements for managers of all levels of government and, in particular, to the senior management of the companies.

David Brandson proved to be an outstanding strategic leader for Domino's pizza. He saved the pizzeria chain from failing drastically as the customers were not satisfied with Domino's pizza. Brandon, however, through his strategic planning managed to steer the pizza chain towards the top of the ladder of success. In the process of innovation the Dominos pizza performed all functions related to the management of strategic and operational planning process of innovation, making decisions regarding the allocation of functions and form design and target groups, implementation of personnel policies and the creation of innovation climate in the firm (Antonakis & Cianciolo, 2004, pp. 53-87). They made drastic changes in their strategies. Bringing a completely new recipe was a bold and risky move made by Dominos pizza. However, with appropriate and innovative marketing and promotional campaigns, this change proved to be a major success. Change management ensures that the change is implemented in an appropriate manner. This also includes preparing the employees for the change. When organization’s employees are prepared for process of change, the implementation of the change is much easy for the agents of change. Companies include individuals, whose opinions can undermine or facilitate the efficiency of change which is being implemented. Change also acquires visions that must be effectively communicated (Dennin, 2001, pp.1-24). Initiatives of change ought to be designed through making a feeling of necessity within the organization. Dominos pizza recognized that key factors such as productivity, competitiveness, and productive marketing and organizational efficiency, depend increasingly implement suitable mechanisms to change from the stage knowledge generation, or import and assimilation of it to the stage of practical application through the process of innovation (Edmonds, 2011, pp. 349-353).

Conclusion

In conclusion, it can be said that the change and leadership is necessary within the organization because of the dynamic increase in the environment. An organization has to continuously confront with the need to execute the changes in the culture, process, structure and strategy of the organization which can be determined through the strategy of Dominos pizza. The major components of the change, in accordance to the researches, include vision for change, mutual respect and trust, change initiatives and more. There are different theories and models designed for the implementation of the change within the organization which are being effectively followed by Dominos pizza.