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Wednesday, May 6, 2020

Diageo Case Study for Potential Change- myassignmenthelp.com

Question: Discuss about theDiageo Case Study for Potential Change Management. Answer: Potential Change Management and Risk Issues It is important for an organization to change management to ensure that there is an achievement of set goals. The change is due to the dynamic external environment. The external environment keeps on changing requiring the management to develop strategies that are flexible to handle the changing business operations. Diageo Company aims at improving the efficiency in production through a review of the human resource functions. The company is supposed to change to come up with leadership and staff that are highly qualified to offer diverse spirit products to the targeted consumers (Jeston Nelis, 2014). Diageo is required to continuously improve the spirit products to have a sustainable competitive edge in the alcoholic beverages industry. The consumers of alcoholic beverages have diverse needs about their drink requiring the management to implement advanced technology in production. Proper leadership in an organization makes it possible to come up with an effective team that will work toward achievement of set goals. The costs of production in Diageo require being revenue to increase the revenue acquired from the sale of alcoholic beverages products. Overall change process Managing change is essential in ensuring that there is a smooth flow of operation of the business. This is where the change is supposed to be integrated into the production of alcoholic beverages production by Diageo Company for the achievement of set market share internationally. The strategies implemented in production and HR department require being accurate to operate in different nations. Diageo has operations over 180 countries requiring developing a company policy that will provide a smooth flow of operations. The management of change process requires analysis of views from the stakeholders of the company (Cavusgil, et al., 2014). The stakeholders have an interest in the production of the requiring the management to implement change that is effective in increasing the revenue from the sale of alcoholic beverages products internationally. Change makes it possible for a company to acquire a competitive edge in the market due to the continuous change of the external business envi ronment. Diageo produces high-quality spirits to the people requiring the management to implement change to deal with the diverse needs of consumers. The overall changes in the organization require considering technology, economy, growth opportunities and consumer needs for the accomplishment of set long-term goals (Boons Ludeke-Freund, 2013). The change is supposed to be helpful to the organization in improving the profitability level. Global strategy change by Diageo is implemented in phases to ensure that there is a proper execution of strategies in different locations of operation. Lessons learned/risk Diageo global strategies are aimed at acquiring a sustainable competitive advantage in the global alcoholic beverages industry. Risk management is essential in business to improve the performance of the company in the international market. Diageo strategies aim at reducing the cost of production of spirit products through the use of technology and proper HR functions. The strategies are implemented in phases to have a stable foundation in the organization due to the difference in the external environment in operating countries (Bohari, et al., 2017). The strategies are implemented by effectively managing the external business environment for the achievement of set long-term goals of production. Diageo has integrated technology in human resource to ensure that there is a quality production of spirits for the targeted global consumers. The technology used in HR is implemented in phases to evaluate the impact of change on the performance of the company. The governance of global strategy requires considering the service offered by the organization and business engagement in the industry (Sparrow, et al., 2016). Diageo strategy focuses on the set vision, mission and company values in ensuring that there is an improved performance in the global market. Proper leadership and teamwork in an organization improve the effectiveness of an organization. Leadership and technology change in Diageo has made it possible for the organization to cut costs by 20% which improves the revenue acquired from sale of spirit brands to the targeted global market. In 2006 the Diageo acquired an increase of 6% of profits from the sale of the 12 top spirits brand produced by the company. Use of technology in production makes it possible to achieve the set long-term goals (Westerman, et al., 2014). Diageo implemented the following strategies in using technology in HR functions; PeopleSoft in February 2004, IS strategy which implemented SAP in August 2004, September 2004 impact of SAP implementation was assessed, July 2005 there was organizational change, September 2005 SAP HR was applied in operation to cut the cost of HR functions. The implementation of technology by Diageo in HR and production made it possible to reduce the cost of production while maximi zing profits. Managing change Change is a process which requires being properly managed to ensure that it has a positive effect on the performance of the business. Diageo implements changes in phases to evaluate the effects of change in production properly. The change in an organization requires providing a competitive edge in the targeted market (Wagner III Hollenbeck, 2014). Diageo implements changes to ensure that there is a continuous improvement of the 12 top spirits brands in the global market. There are three processes in managing change which is preparation, managing and reinforcing the change in the organization (Dawson Andriopoulos, 2014). Preparation is where the stakeholders are required to be identified with the need for change in the organization. Managing change is developing a time frame to implement change for to monitor the effectiveness of the change. Lastly, is reinforcing the change to ensure that there are quality services and products to the consumers for an increase in profitability for the organization. Bibliography Bohari, A., Hin, C. Fuad, N., 2017. The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis.. Journal of Society and Space, pp. 1-9. Boons, F. Ludeke-Freund, F., 2013. Business models for sustainable innovation: state-of-the-art and steps towards a research agenda.. Journal of Cleaner Production, pp. 9-19.. Cavusgil, T. et al., 2014. International business.. s.l.:Pearson Australia.. Dawson, P. Andriopoulos, C., 2014. Managing change, creativity and innovation.. s.l.:Sage.. Jeston, J. Nelis, J., 2014. Business process management.. s.l.:Routledge.. Sparrow, P., Brewster, C. Chung, C., 2016. Globalizing human resource management.. s.l.:Routledge.. Wagner III, J. Hollenbeck, J., 2014. Organizational behavior: Securing competitive advantage.. s.l.:Routledge.. Westerman, G., Bonnet, D. McAfee, A., 2014. Leading digital: Turning technology into business transformation.. s.l.:Harvard Business Press..

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