Change Management (Oticon)

2914 WordsOct 8, 200912 Pages
[pic] A B E R D E E N B U S I N E S S S C H O O L Master of Business Administration Course Work Submission Form |Name: |MICHAEL CHIDI CHUKWUMA | |Email: |m.c.chukwuma@rgu.ac.uk | |Course: |MBA | |Module: |BSM 155 | |Assignment and Title: |CHANGE MANAGEMENT Course work…show more content…
Triggers leading to the change: Oticon was pioneer hearing instrument manufacturer and continued to operate in its initial strategy until things began to change due to; 1. Economic Trigger: It lost money and market share in the 80s’. In 1987, performance was so low that it lost half of its equity. 2. Technology Trigger: Market became dominated by more advanced technology companies with preferred digital products compared to Oticon’s ‘behind the ear’ products. 3. Social Trigger: Customers preferred ‘in the ear’ variety products compared to Oticon’s standard ‘behind the ear’ products. 4. Environmental Trigger: Oticon was operating as a state-subsidised Scandinavian company making it weak in more buoyant markets of America and the Far East. Oticon Change Drivers: 1. The new company President (Lars Kolind) was determined and will stop at nothing at bring change to Oticon. 2. Market gap for knowledge based hearing instrument company with good marketing relationship and main goal of putting a smile on customer’s face. 3. Shareholders expectation: After 10 years of poor performance, shareholder must be putting pressure on management for profitability. 4. Customer expectation: Demand for ‘in the ear’ type and digital product. Change Barriers: 1. Financial barrier: On arrival of Kolind as new president he needed to cut down cost to bring Oticon back to profitability in his first change drive. In his second stage change
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