Collapse of the Company Change Management Assignment
An organizational change is necessary for any company that intends to maintain its market advantages over its competitors and also to succeed in today’s rapidly changing business environments. Companies should encourage and pressure the employees to keep identifying areas of change in the business processes, practices, and marketing strategies and also in the public relationships managements. Just like software developers keep introducing new updates of its application to meet the changing needs of its customers, the same way a business can transform itself into different phases of changes to meet the dynamic requirements of populations and competition at the marketing level.
The Jarvis’s construction company is facing many challenges from both within and external environments. It is clear that it is almost at its end times. Having been one of the largest engineering companies in the region during the 1990s, it grew very fast reaching a nationally recognized level. Many factors that can result in the decline of a business some of them including organizational structure, leadership, politics and marketing strategies but the most dangerous of all is the inability of a business to develop and adapt effective business culture and adapt to change.
The Company Needs Changes
Change management refers to the structured approaches that tend to shift organizations and working teams from challenged situations to the desired state. There are numerous reasons for the construction company to adapt change. One of them is the changing of the global market that is shifting to new areas beyond the national boundaries. A company should find itself a position in global markets and reach new clients worldwide to increase its profits.
The Jarvis construction company depends largely on the technology. There are new inventions developments in machinery and working technologies that businesses can use to improve productivity. It is necessary that the company keep its machinery and the technology updated. In most cases, new technological advances appear with particular benefits such as convenience, efficiency in working, enhancing the quality of work and the company to reduce the costs of productions. Jarvis Company needs to make changes in the way it operates and affects the environment. The company is likely to impact the environment and natural resources in all its activities such as excavation and landscaping. Many environmentally friendly techniques have been developed, and companies can save a significant amount of funds by adapting to such technologies.
The company should adapt the best and latest methods in its management of finances. There are recent developments in the accounting field that can help the company manage its limited finances and their sources to increase efficiency. Many of these technologies are computerized, and they can help track down any unhealthy spending in the business and also increase the transparency in funds handling.
The use of the internet for marketing strategies and handling of data is important to any business. The company should see the need to switch from the manual data handling and elevate to the benefits of data mining techniques that the Internet sources offer to businesses. Many companies are extending information on what they do beyond the local perspective to international and international levels thereby creating new markets and attract new customers.
Diagnosis of the Jarvis’ Construction Company
Growing too Fast Without the Necessary Resources
The company is collapsing because of several reasons. For instance, the company entered into a fast growing construction market without enough resources and finances. There are also other companies in the market that pose stiff competition. The inability of the company to institute change within its management and operation levels have lead to other companies having all the competition advantages over Jarvis Construction Company.
The company seems to have problems in its management of finances. Gray claimed that “the incompetency in the accounting department could be another reason the company is heading to its closure. Business needs to employ the perfect skills in finance management and also in other resources. Financial strength is the greatest determinant of the business success or failure. Good accounting skills help the business allocate its resources accordingly and root out corruption or embezzlement of funds intended for its development. The business has failed to acquire investors. Investors help to finance the business and also to spread the risks to diverse groups. They also pressure the management to employ the effective changes within the business structure and practices to increase the sustainable profit margins.
Forging Financial Records
The public relationship is important for any organization’s growth and expansion. The company that has good reputations attracts more investors and customers. Also, the investor depends on the company’s image to make investment decisions. The construction company discourages good public relationship through their “book cooking” that points out cases of corruption within the business. The Jarvis Company seems to ignore the available price strategies that can help it achieve the competition advantages. It has also failed to handle the competition from other companies that tend to work much on their prices to maintain their positions in the market.
Overstretching the company’s resources
The company tends to engage itself in so many contracts that it cannot handle effectively. Handling many contracts deals at the same time can result in poor service delivery. For example, the London-Glasgow company blames it for its derailment. Handling many contracts with different clients can affect the business by disrupting if from providing the quality work.
Deteriorating public relations
The company also holds the blame for the crash of the Porters Bar crash in Hertfordshire that claimed some lives. Such and news about a company damages its ability to win both customers and investors since it damages the image. Another mistake the business have made is putting its entire stakes on a single point. The company depends on a single client to for the shares maintenance. It becomes hard for a business to rise after a stroke if it depends on a single client for restoration. It is also necessary to spread the risks the business faces by involving many players in the game.
The change interventions to avoid the collapsing of the company
The management of a company has many roles including setting the directions for the organization to achieve. Sometimes the realization that there are inefficiencies in the workflow indicates that something is not right. Jarvis Company should have employed different measures to address issues it faces in all its departments. The following discussion addresses the mechanisms I would have employed to prevent the decline of the Jarvis Construction Company.
Introducing a new executive management team
In order to salvage the collapsing Jarvis, there was a need to introduce a new executive management team. The incoming team should be composed of qualified and experienced personnel. The leadership of any organization plays a critical role in shaping the destiny of a company. In addition the incoming executive team should be conversant with the former organization structure and the running of Jarvis so as to exploit the available opportunities and avoid repeating the mistakes of the previous management team.
Enhance financial transparency and improve the tendering process
The biggest challenge the company has been limited funds and embezzlement. The company is making a significant amount of profit but due to in competencies in funds management, it is about to close. The investors are also scared to invest in the businesses with embezzlement cases, poor service delivery, and unpleasant profit margin. Efforts to attract more investors and also the employment of skilled accounting system would have saved the company a great deal on its capital and profit maximization. The company should improve its tendering to increase its profit through efficiency and competitiveness. Making relevant bid helps a business manage it is the tendering process and avoid being overwhelmed by the volume of work necessary to participate. The business should facilitate competitiveness and the values by securing the right prices and selecting the right competency.
Review the company’s public relations strategy
Further it was necessary to rebuild the tarnished reputation of Jarvis emanating from its previous failures. One way of reclaiming its previous reputation was through widespread participation in Corporatesocial responsibility activities. In addition, the company needed to formulate an elaborate public relations strategy.
Diversify its products scope
The company should improve its products and services to ensure that they meet the customer preferences. The construction services require innovativeness and adaptation to the latest technologies. The company, therefore, can increase its sales of construction services by improving the services and introducing new ones in the market. The other competitors have reduced the market prices to the lowest benefits level for the Jarvis Company. Interventions such as products and services differentiations can attract new customers. The company can penetrate into new markets to increase its market coverage. The use of the internet can also help the business employ effective marketing strategies to acquire new markets in the regional and global platforms.
Investing on training and necessary equipment
The success of construction companies also depends on the technology of the equipment and machinery. The company can keep its equipment up to date for efficiency and cost reduction. Skilled workers from diverse levels and fields of engineering are also important to the business activities in ensuring quality service delivery to their customers. Other important practices to avoid decline are the risk assessment and business impacts analysis. These practices help a business identify the losing edges and device the preventive measures. They also help a business recover easily after a breakdown. The risk assessment could have helped root out incompetence in the financial department, the points of quality deterioration in their services and also the areas that they need make changes for improvement.
In conclusion, changes in a business organizational, structural or market strategy are important to maintain sustainable productivity. Many businesses fail due to lack the appropriate management that can oversee the proper use of funds, and the marketing strategies are working for the achievement of the company. It is also the role of management to see that the company employs workers with the relevant skills, knowledge and experience to prevent future decline of the company. The paper has approached the change management by revealing both the need and measures that a company can employ to prevent its closure in future. It has also discussed the importance of investors in the success of the business.