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Key Issues Within Wakewood Internal SWOT Analysis

STRM 047 Strategic


Management

Student I.D. 14400726
Student Name Elorm D.
Oben-Torkornoo

Assignment - Case Study
of Wakewood

Word Count: - 987 words

Internal
Issues
Unclear
vision and
goals in all
units
Poor
Change
Managemen
t Skills
Organisation
al Structure
Fear of
Change from
employees
With a large unit of 700 workers, it can be
assumed that the entire organization is a
large one and has enjoyed some great
success in the past.

Key Issues/triggers identified include:
Internal Using the SWOT analysis exposes the
issues:
1. Strength: - Willingness of CEO to implement
new changes, and his strong goodwill with
employees.
2. Weakness:
-- Weak , centralised organisational
structure
--- Participative leadership style does not
encourage productivity (Lewin et al, 1939)
3. Opportunities:
- To tap into new technology that will boost productivity

4. Threats:
- Unwillingness to accept change due to fear of redundancy
A critic if SWOT, Valentin (2005) argues that SWOT guidelines generally lack criteria for prioritizing SWOTs, but this may be the case
for misapplication. A good application of SWOT is done with other models at the back of the consultants mind, like McKinsey 7s.
Thus when talking about weaknesses in SWOT, that is done looking at strategies, skills, staff, systems, strategy, etc. SWOT is a
great tool in the hands of great analyst
The Culture Issue Internal Issues (cont.)
Trompenaars and Hampden-Turner (2012)
describes culture as the way in which groups
or people solve problems and reconcile
dilemmas.
As a result of the
autonomous structure, there
are large variances in the
perception of quality and
customer care between CEO
and Unit 7 manager.
Perceived strategy for
achieving goals differ
between CEO and Unit 7
Manager.

Decentralised quality control
systems is the result of
increasing customer
complaints.




Interpretation of Web on
Organisational culture
The Cultural Web
reveals matters that
must be addressed for
change to occur.

There is the need for a
re-mapping of the
cultural web, which
involves the all
members of the
organisation taking part

Need for change
Wakewood through the Cultural Web
1. Stories:- The employees admire and immortalise the CEOs
achievements in implementing change in other units. It reveals
a strong value for achievement over ascription.
2. Rituals&Routines:- Poor handling of clients in Unit 7. Long
waits
3. Organisational Structure:- Autonomous 7 units with
independent General managers managing key functions of the
organisation. The CEO still maintains high influence and final
say.
4. Control Systems:- Quality and other functional systems
controlled by separate units. Unit 7 lacks quality control.
5. Power Structures:- The most influential people in the
structure are the unit heads; the General Managers of each
unit.
6. Paradigm: Employees taking for granted the importance of
Customer service.
Key Issues Within Wakewood External Analysis
Using Poters (1997) five forces model, brings out some of the
issues affecting Wakewood externally that require the change

1. Competitive Rivalry: Increasing competitive rivalry is an
indication of lowering barriers of entry. Wakewood must
therefore develop a strategy that builds on increasing
certain barriers of entry it has the power to.

2. Buyer Power: Increasing customer dissatisfaction is an
indication increasing buyer power. Weighing
options/substitutes gives the buyers power. Wakewood
must strategise to reduce dissatisfaction.

1. Supplier Power: Increasing cost of production is an
indication of pressure on factors of production. When
demand exceeds supply, price/cost goes up. Wakewood

Another factor, which is a trigger/issue, can be inferred from
the PEST analysis; Technology. The industry Wakewood
operates in seems to be changing rapidly, and technology
is a factor in that change.
External
Issues
Introduction
of new
technology
Increasing
costs due to
higher
supplier
power
Strong
demand for
quality by
buyers
Increasing
competitive
rivalry
PLANNED CHANGE: The Three-Step Change Model
Unfreezing
1. Issues that need include:
attitude of staff towards
customers, attitude towards
adoption of new technology
2. The CEO needs to meet
daily with Unit 7 manager to
get him to buy fully into
change programme. He is
the influencer in his unit.
3. CEO needs to create let
workers know the worst
case scenario should they
not change. He needs to
create urgency among staff.
4. The CEO needs to
manage and understand the
doubts and concerns .
Change
For change to be effective:
1. The CEO must clearly
communicate the vision to the unit
managers. Weekly workshops
/meetings at top management is
required. Activities to execute the new
vision should be clearly drawn and
unit heads put in charge.
2. Unit managers should actively
dispel rumours by being transparent
with staff about management plans.
3. Management needs to empower
action with financial resources.
4. The entire process should actively
involve all members of staff.
Refreezing
This is where the desired
change has taken place and
staff have embraced the way of
working.
1. To anchor the new change
into the organisational culture,
charters and new terms of
contract, as well as job
descriptions must be given to
all staff.
2. There should be frequent
training to support unit
managers and staff.
3. Managers should create
incentives for small successes
chalked to motivate staff
during the process
Lewin (1951) proposes a model that Wakewood will find ideal to executing its cultural change
Dawson (1994) and several other researchers have criticised the model as being simplistic and mechanistic in a world where
organisational change is continuous and an open-ended process. Others have criticised it as top-down and management dirven.
Lewins Force-Field Analysis of Wakewood: Change Process
disected
Any level of performance/equilibrium of an organisation is a result of a combination of driving and restraining
forces at works (Lewin, 1951)
Level of
performance
Time
Driving Forces
Restraining
Forces
Current State of
Wakewood
Expected State
after change
occurs
Driving Forces:
1. The enthusiasm of the CEO of Wakewood to
implement the change process.
2. Possible endorsement from Board of Directors
3. High Staff costs
4. Routine tasks are capable of replacement with
computerisation
0
Restraining Forces:
1. General Manager of Unit seems largely disinterested in
New technology
2. Staff reluctant to adapt.
3. Lack of skills to implement change
Strategy: To pursue the change process in Wakewood it is important to reduce the restraining forces
while maintaining or increasing the driving forces.
Change
Process
The New Wakewood: Change in Organisational Structure
Old Wakewood
Board of
Directors
Unit 1
(GM)
Functional
Units
Unit 2
(GM)
Unit 3
(GM)
Unit 4
(GM)
Unit 5
(GM)
Unit 6
(GM)
Unit 7
(GM)
Finance Personnel
Administra
tion
CEO
The old Wakewood: (via its structure)
- Lacked coherent vision and strategy
- Lacked possibility to conduct audits on various
functions without people feeling being witch-hunted
- Presented conflict in leadership. Staff see Unit
Managers as the most powerful because they
control hiring and firing decisions.
Board of Directors
Director of
Administration
Director of
Finance
Director of
Personnel
Director of
Marketing/
Customer
Relations
Unit
Managers
Unit 1
(Manager)
Unit 2
(Manager)
Unit 3
(Manager)
Unit 4
(Manager)
Unit 5
(Manager)
Unit 6
(Manager)
Unit 7
(Manager)
CEO
New Wakewood
The New Wakewood:
- Will bring all the functional heads and unit
managers to be directly accountable to the
CEO.
Senior Management will therefore be made
up of CEO, Directors of Admin., Finance,
Personnel, Marketing/Customer relation, and
Unit Heads.
- Regular meetings will provide opportunities
for quality and marketing targets to be agreed
upon and monitored.
- Based on standards agreed upon, healthy
unit competition can be promoted among
unit.
- The New Wakewood becomes more
participative.

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