CHANGE IMPLEMENTATION

Change Implementation at Blockbuster

Change Implementation at Blockbuster

Introduction

According to the past studies it is observed and proved that the organizational behaviors are influenced by various factors that include the organizational culture which is the most significant element of an organization like in the case of the Blockbuster. This factor depends on different theories, moreover, past researchers worked on different aspect of this single phenomenon. In addition, the organizational behavior was considered as to be influenced by the classical approach which was helpful for identifying and resolving the initial or the minor problems that were pertaining to the organization.

In the case of Blockbuster should familiar with the word change management, if they are working within a large corporation or organization. Change management in an organization's culture has been around for a while but this term has become very common among organizations and corporations like Blockbuster that like to initiate changes in the culture to the processes including both tasks and organizational culture. A change management is a set of processes that are employed to make sure that changes have been implemented in ordered, controlled and systematic way.

Company

Blockbuster (or 'the company') is a provider of rental movie and game entertainment. The company operates in the US, Europe, Latin America, Australia, Canada, Mexico and Asia. The company is headquartered in McKinney, Texas and employs about 25,000 people.

The company recorded revenues of $3,240.7 million during the financial year ended January 2011 (FY2011), a decrease of 20% as compared to FY2010. The operating loss of the company was $128.2 million in FY2011, as compared to operating loss of $351.3 million in FY2010. The net loss was $271.6 million in FY2011, as compared to net loss of $569.3 million in FY2010.

The company filed for Chapter 11 Bankruptcy in September, 2010. Following which, in April 2011, DISH Network Corporation acquired Blockbuster for $320.6 million; the company now operates as a wholly owned subsidiary of DISH Network Corporation.

Blockbuster's financial performance

In March 2010, Blockbuster warned that it might need to file for Chapter 11 bankruptcy protection as it struggled with accumulated debt and fierce industry competition. Six months later, Blockbuster officially filed for bankruptcy, securing $125.0 million in debtor-in-possession financing (DIP) to cover operating costs in the immediate term. This exempted Blockbuster from filing an annual report for 2010.

Over 2009, industry revenue fell 19.0%, but the net loss was reduced due to a reduction in operating expenses, particularly in inventory costs, advertising and interest costs. Poor DVD title releases from studios continued to hamper Blockbuster's performance; however, it still managed to increase average rental rates. Same-store sales and rentals both fell during the year. The company reported that its existing credit facility had been extended to September 2010.

For fiscal 2008, industry revenue fell 4.8%; however, domestic same-store sales increased in each quarter during the year. Overall, a 6.2% rise in same-store sales was reported, compared with a fall of 6.9% in 2007. Rentals revenue rose 1.2% on a same-store basis, but with a ...