GK Printers limited established as a small family company that specialized in printing business with a slogan of ‘No job too large o too small’.
The company started with 20 employees including its owners, with reasonable income. However, the company started to lose their customer due to the new technology which was computerized printer that provided by new competitor in the market. Moreover, the recession started at the beginning of 1980, where they started to lose their traditional customers. After that, the management employed a student as a consultant to examine their situation with their competitor. However, overall commend was to continue their business with newer equipments.
That was the beginning of their improvement, where they had an increase in their employees and their income. By the time GK Printer’s started to become more interest in providing the customers there requirement such as faster services, better quality and cheaper products. At the end of the third phase (end of 90’s) GK Printers started to follow the trend by having its own website. Moreover, they started to have its first department which specialized in graphic design.
At the beginning of the company’s life, it started with a realistic profit and reasonable way of living for both the owner and the employees of the company.
Apparently, by the beginning of the 80’s the company’s current situation started to deteriorate in many field such as their customers order, their way of doing business and their profit. The business environmental factor had a huge impact in forcing any company for change. One of the most important reasons that affect all companies negatively was the recession across the economy. However, this caused a significant reduction in many of the company’s activities, which last for long time. It was visible on their customer’s orders, which reduced spectacularly that cause the beginning of a company Bankruptcy.
The case study shows a significant transformation in GK printers’ business trend. At the beginning of 80’s, the case demonstrate that the company had a financial crises where as at the end of 90’s the company’s became successful with new method of doing business. On the other hand, at the beginning it had a satisfied situation, but by the beginning of 80’s the company’s trend drop off. The reason for that was the advert of the new computerized printer techniques, which provide quicker, cheaper and enhanced quality service. Additionally, the advert of new small printing bureau (such as Prontaprint) that was located in the city center.
Those reasons clearly decreased the number of GK printers’ customers. As a small family business the company started with 20 people, include the management and their employees. However, they believed in exceeding their customers and the market expectation, by providing quicker, computerized printer techniques. Major organization change has a huge impact on the organization and employee’s time, energy and emotion. GK printers’ change requires their employees to invest and control their energy and emotion with the extended period. However, the GK printers’ employees did not force against the change where they welcomed it.
By the Beginning of the 1980, the competition between the companies starts by providing new printer’s technologies and better services and quality. This was to cause in decreasing the number of customers. Meanwhile, the company’s confidence affected negatively, which allow them to think in selling the company. However, the GK printers’ management did not hesitate to employ a business student to monitor and examine the company’s option. Because of that, the student’s reports summarized that the other company are not as strong competitor as what the company thought.
Moreover, it was possible for the GK printers’ company to follow the trend of what the customer demand and providing better quality of services. Within 12 Months, the company started on buying their own new equipment. As a result, of the successful company’s strategy. By the late of 1980, GK printers’ employed 40 staff and managed to improve the company’s profitability substantial and became extremely competitive printing company. By having an adverse, an effect . This cause to make the revenue quadrupled to became 4 ? 4 million.
In 1989, the company was realised that better business systems was required.
The GK printers’ management authorized 6 employees to meet two hours once a week to find an alternative solution for business system. As a result of that, they provide an objective of system testing followed by choosing one company out of 20 companies that visited them for the new system.
In 1990, the GK printers’ customer affected by the recession where as the GK printers’ business did not. Therefore, the GK printers’ business was growing and did not affect by the crises. In 1993, GK printers’ started to become aware of their customers demand with consider to the price and delivery.
Because of that, the level of customer satisfaction has decreased and the competitor. By The beginning of 1994, Increasing on the number of the GK printers’ competitor and customer demand. Thus, the company lost significant amount of the business on this year. Mid of the 1990, the company developed a strong partnerships with the key customers and attracting new ones and develop one area of their business. Consequently, there was fast growing on the mentioned area than the rest. Overall, the three mentioned phases has one type of change, which was an Adaptation. Moreover, as John (2007, p. 5) revealed that adaptation was an incremental and adaptive response to a pressing external demand for change. After studding and consultations point of view, GK printers’ company found out that their business was losing in front of the new technology that their compotators were using. Therefore, GK printers’ adapted new technology and focus on following their competitors trend in order to achieve the customer’s needs and expectation.
The chart demonstrates the Diagnostic Model of five elements, which are Leadership, Culture, Strategy, Systems and Process and Environment.
This model illustrates how these elements are affecting on each other in the Gk printers’ work environment. The outline shows that leaders’ has a strong impact in the organizational culture and its strategy scheme. In GK printers’ company management focus in empowering their employees by assigning to them a projects where they can decide the action. Moreover, from the GK’s management point of view, employees are important asset in order to improve the company’s performance. On the other hand, there was a weak impact between the leadership and system & process.
Gk’s management did not interfere directly with the implementing new systems, but they observe the process of the implementation. Moreover, there was a strong impact between strategy and culture elements in both sides. Recession across the economy was one of the most important impacts under culture element. It leads the company to follow new strategy by creating a new and modified action plan. On the other hand, strategy had a huge impact in the system and process. By applying the new adopted strategy, GK Printers started to use computerized printers, which effected positively to the company performance.
Additionally, there are a strong impact from the environment element on the strategy and the system & process. The impact between the environment and the strategy to exceed the external customer expectation, by improving the companies services and develop the quality of work. However, Leadership, Culture, Strategy and Environment had an impact on the System and Process. That was by creating a system and process that exceeded the customer requirement and expectation, cutting the cost of their products because of the financial crises and empowering their employees by the managers.
ALIGNMENT AND MISALIGNMENT
As I believe GK Printers implemented theory O only instead of using both theories E and O. Theory O aimed in changing the organization strategy, which can be seen in the GK’s case. Additionally, GK Printers obtained a feedback from their consultants, and then made the needed changes. However, by applying this theory the GK’s management believed on focusing their effort of avoiding the problems that they could face in future. Meanwhile, GK’s manager had a strong commitment with their employees in the first and the second phases. Goals GK Printers started as a small family business with average and reasonable income.
As I believe, from beginning GK’s owner’s had one goal which was to keep their situation and their customer for long time without any improvement that could cost them money or effort (Michael, 2000). However, GK’s management was shucked of the new technology that had a huge negative impact of their customers order and their profit. On this point, GK’s management determined to outpace the difficulties and made the company succeed. Leadership Successful company determined by successful leadership. GK’s management had a fine background about leadership where they gave their employees the empowerment to change.
Additionally, the company’s management sat the goal and assigned the company improvement projects to some of their employees for recommendation and action to do. However, the employees were doing well in phase1 and phase2 where they were behind the improvement and the increase of the company income. Whereas, in phase 3 there was a miss-communication between the company’s General Managers and the Management. Focus At the first phase of the company live, there was a huge focus in following the trend of change by developing their equipment and their employees.
On the other hand, at the beginning of the second phase they were focused on delivering a better quality of services with the lowest cost. Whereas, the their phase were focusing on following the customer demand in more computerized way such as Process A good process to develop the company was made by good leaders, which affect the organization objective and strategy in surviving. The GK Printer’s case did not have a clear improvement plan. However, the company process of improvement was mad by some of the chosen employees and they made a list or recommendation in order to keep on track with the new technology.
On the other hand, the workforce agreed with the needed changes as the company was straggling with the financial crises on the first two phases. However, the process went well until the third phase where they started to open new department in order to exceed their customer expectation. Reward System It is one of the motivation processes, which allow the company to thank and encourage their employees. However, the GK’s employees were motivated by the empowerment they have to do their job. On the other hand, they weren’t motivated financial by salary raise or rewards.
Use of Consultants Most of the companies are using an expert with huge knowledge and background about specific subject. GK were haring a consultants to discuss about the company situation and asking for a recommendation. However, the implementations were made by the company internal employees.
1. Create a new training plan specifically for the company current need this will improve the quality of work. Moreover, there should be a frequently analyze the company performance and modify the type of training. This will aim to improve specific employees and job. 2.
The General Manager of the GK Printer’s should participate more on the projects and use a new style of leadership such as Effective communication, and negotiation. “To help you be, know, and do” (U. S. Army, 1973). 3. Continuance analyze of their situation of improvement which is by ongoing analyst to improve their products, services and their process if needed. (Continuance Improvement, n. d) 4. Create new a Performance Development Plan in order to monitor the development process of their employees. 5. GK’s should establish a Performance Career R … and started to motivate their employees with salary raise and another motivation awards. . Create a suggestion box for their internal and external customers. This will open new way of communication with the customers which will allow them to participate with the improvement of the company. 7. Establish a clear strategy for the GK Printers provided by the General Manager. 8. GK’s consultants should not be students that have no knowledge about the situation of the market. Instead of that, their consultants should be high educated with high level of knowledge, and an expert on a specific field.
We must become the change we want to see – Mahatma Gandhi
Change is the most terrifying thing in the world, and the concept behind it is self improvement or organization improvement. As Mahatma Gandhi said “we cannot convince other to change unless we change our self”. So in conclusion, although the change started from one of the competitor, but it started too this refracted on others such as GK Printers. However, the changes that mad by the GK Printers were huge at the beginning. From my point of view, the company was following the right trend in order to survive. That allows them to find their own path by listening to their customer and success in their graphical design.
Books: Michael Beer and Nitin Nohria. (2000). Cracking the Code of Change. Harvard Business Review: Harvard Business School Publishing Corporation John Hayes. (2007). The Theory and Practice of Change Management. (P. 4-21). New York: PLGRAVE MACMILLAN ONLINE Mahwah, New Jersey: Lawrence Erlbaum Associates. Routledge U. S. Army Handbook (1973). From Concepts of Leadership Web Site: http://www. skagitwatershed. org/~donclark/leader/leadcon. html No Name http://www. asq. org/learn-about-quality/continuous-improvement/overview/overviesw. html#