Changing Consumer Habits Consumer spending habits have altered radically since the 1990s when Wal-Mart first saw huge growth in its sales and market share. In the 1990s, the use of online shopping was still in its infancy and mobile shopping was not prevalent until the late 1990s and early 2000s (Merchant, 2011). Online retail shopping has become increasingly common among consumers, and among online retail shoppers, increasing numbers of consumers are using mobile devices (Siwicki, 2014). In the 2013 holiday season, mobile shopping using a smartphone or tablet accounted for about 20 percent of e-commerce sales (Egol & Hodson, 2013). In comparison, in July of 2014, 56 percent of online retail shopping occurred through the use of a smartphone or tablet (Siwicki, 2014). While Wal-Mart offers walmart.com, this platform has not kept pace with the demand for it, and Wal-Mart has not taken full advantage of the chance to create applications for mobile devices to allow and encourage consumer spending. Changes That Need to Be Made at Wal-Mart Dr. John Kotter suggests an eight-step process for creating change in an organization. The first step entails establishing a sense of urgency, because before members of an organization will be motivated to adopt the changes, they must first understand the need for the change in a way that emphasizes the urgency to take action to address the problem. The second step is to form a powerful coalition, which means getting key people in the
Foreword by Spenser Johnson: One the surface, the story of this book appears to be a fable that is relatively easy to grasp, but it does subtly impart an invaluable lesson on change. The book covers John Kotter’s Eight Steps to bring about successful organizational change and can be equally useful for a high-school student as it is for a CEO of a multi-national organization.
Step 2 is forming a powerful guiding coalition. Leadership will have to be on board and on the same page in regards to the change. Kotter and Cohen reveal the core problems people face when leading change. Their main findings are that the central issue concerns not structure or systems but behavior and how to alter it (Farris, 2008). The success of the changes will depend on the ability of the managers to show their commitment to change and motivate the employees to do the same. Without any process to track the implementation, the change can also fail.
Another researcher, John P. Kotter (2006) outlined the “Eight Steps to Transforming Your Organization,” which are:
This course has taught me a lot in terms of initiating and managing change, and Kotter’s eight-stage process is a very useful approach when it comes to making changes within an organization. This course has helped me strengthen my skills in overcoming barriers that tend to get and make it difficult to
The demand for tablets and their uses for online shopping are increasing fast. Tablet users tend to spend more money when they shop online from their tablet. Data came out in early 2012 that stated that tablet shoppers spend 50% more than
Years ago, most people thought that it would remain impossible to click a button and place an order to buy something. Today about “195 million online American consumers” order take-out, book hotels, flights or even grocery shop (Weinstein 1). Many people can pay bills and transfer money to other people through a click of a button on their smartphone. 100,000 online consumers took a survey to reveal that most people preferred online shopping than physical shopping. 73% said it “[was] time saving” and also 58% of those people said they “liked it more because there were no crowds or lines.”(Weinstein 2). Consumers care more about the time used up than going to the store to look and try out the product in person. The internet offers a huge amount of choice and diversity in how people want to do things. But with the majority favoring online shopping, it just shows the laziness of our
It was noted that communication efforts must be verbal and active (Kotter, 1995). Kotter eight step change model has many drawbacks and benefits. The advantages are that it is the step by step, which is easy to follow model. Another is that it does not focus on the change itself, but rather the acceptance and the preparation of this change, which makes it an easy transition. In Kotter’s and Lewin’s models, both consider the difficulties that organizations encounter when trying to move people from their comfort zone for the change to happen. In both of the models they use a different set of calculations to know whether there is any need to change to take place in the
In 2005, Robert Greenwald released Wal-Mart: The High Cost of Low Price, a motion picture that divulges how Wal-Mart Stores, Inc., a wholesale department store established by Sam Walton in 1962, absconded from its chasten inaugurations, to ultimately progress and develop into a principal vendor of America, and soon afterwards the vastest transnational conglomerate on the planet, once one grounds their statistics on revenue. However, Greenwald undoubtedly affirms that the policies Wal-Mart has emplaced have not solely been detrimental to the already austere American economy, but also to the welfare of their personnel. Furthermore, Wal-Mart: The High Cost of Low Price congregates on various sociopolitical disputes that validate how Wal-Mart
Organizational change is a necessary outcome when considering various scenarios contributing to the resulting vision. Perplexing as it may seem, change initiatives don’t always result in positive outcomes. In fact, many never succeed. As a change agent, one should always have formulated a vision of what change will “look” like for the organization. One would be hard pressed to paint a landscape without having a vision of what the landscape should resemble. Yet, resistance to change usually becomes a significant factor contributing to an initiative’s failure. It is likely an
In order to obtain long term success, it is important to strictly follow Kotter’s Eight Step Change Model in the correct order. The first step is to create a sense of urgency among the staff. The PCA called in a meeting and introduced the concept of the change and reason for the change. It was a mandatory meeting and snacks and beverages were served. Several concerns and threats affecting the financial aspects of the company and how to maintain job security were addressed. Employees were asked one by one how they like what they are doing, why or why not they like it, what is important to them and what do they think can be done to improve it. Creating a guiding coalition and directing others in the right direction of change is the
The first step in driving the necessary change within the organization is to secure an outside consultant to serve as a change agent. The change agent will facilitate and guide the organizational development (OD) through process consultation intervention. In this process, it will be necessary to identify sources of resistance through Force field analysis. Once the sources are identified, one-on-one meetings and group meetings will be conducted to educate the employees on the changes and the reasons why change is necessary. This step will find the management team working to re-define the vision of the organization. As part of
Wal-Mart needs to regain that perspective in order to propel itself into the future of success. Their corporate tactics of making money and reducing costs incurred by employee benefits needs to be readdressed and realigned with the views of Sam Walton.
Have you ever wanted to make your community better? Many try to help their community, but they do not have the money. I would improve my community by adding things that would benefit everyone. What would you do to improve your community?
In the review of the book, “Making Change Work: Practical Tools for Overcoming Human Resistance to Change,” I decided to summarize the major steps the book establishes. It discusses how to begin the change process by understanding your need for change, to the final step of the change process where an organization needs to implement changes. After summarizing the steps, I am going to show how the book relates to the textbook, Organizational Change: An Action-Oriented Toolkit, as well as giving a managerial implication.
In this dynamic business environment, change is inevitable. Changes can be planned, or unintentional: depending on the driving forces behind. The major forces for change can be derived from the nature of the workforce, technology, economic shocks, competition, social trends, and world politics (Robbins & Judge, 2011). In this post the author will explain the Kotter’s eight –step approaches to managing organizational change and discuss how his company handles the planned changes in term of organization reconstruction.