LEXICON HOME APPLIANCE

Lexicon Home Appliance



Executive Summary

Lexicon Home Appliances is one of the recognised suppliers of white goods industry, which offer innovative products. The company has progressed because of its corporate social responsibility and run its business on strong foundation of business ethics. It has gained reputation as one of the best employers in the community since its establishment. However, the company is facing challenges because of its outdated and inefficient products and the strong competition. Considering Lexicon's conditions, there is an urgent need for the company to have organisational change to survive in the market. Therefore, the aim of this study is to suggest strategic design for organisational change for Lexicon. The analysis of the case study demonstrated that the company is in need to have changes in various areas. These changes include the supplier management, sales and delivery, financial reporting, production of innovative products and the reformation of the employees and company relationships. The objectives of the change include increasing customer satisfaction, controlling and decreasing the costs, growth and profitability. Cost reduction is the primary target of the supplier management and the revenue enhancement is the emphasis of the sales and delivery. The target of the financial reporting area is the streamlining of the information. Moreover, adoption of the advanced technologies will produce competitive and environmentally friendly products capable to compete in the market. Based on the analysis, Lexicon Company is offered several recommendations. It is recommended to develop effective communication throughout the organisation, to enhance employee connections to change and to foster collaboration during the organisational processes of change. It is also recommended to facilitate shift towards positive organisational culture.

Table of Contents

Introduction1

Case Study context overview2

Diagnosis and analysis of implications2

Main Issues for Lexicon Company2

Strengths2

Opportunities3

Threats3

Discussion4

Design for change6

Analysis and Recommendations of Design for Change9

Recommendations11

Conclusion12

References14

Lexicon Home Appliance

Introduction

Organisational change is difficult to define and measure as it is complex, multifaceted and pervasive phenomenon. Change can take different forms ranging from minor amendments to complete organisational transformation. The researchers known as Nadler and Tushman in 1993 outlined two change types i.e. incremental and strategic. Incremental involves making changes within organisational strategies. Strategic change looks to change the operating principles of organisation. Strategic change can caused by externally and may affect organisational existence.

The author known as Beer et al. in 1993 reported the failure of several organisations to make long-term and sustained change. They found that the greatest obstacle to change came from company-wide changes. The author Grieves in 2010 argued that strong leadership in change is essential. Some of the researchers stated that successful transformation is 70% to 90% leadership and only 10% to 30% management. The author known as O'Toole in 1996 highlighted the crucial role of leadership in change. The researcher known as Hurst in 2002 noted that multiple leadership roles could be enacted throughout the organisation to affect change. However, the resistance to change is a powerful force in change process. The author known as O'Toole in 1996 wrote that the real sign of effective leadership is the ability ...