Part VII: Conclusion
7.1 Summary
The business and market analysis of PNS Superstore located in Hong Kong indicated that the retail company is encountering a number of internal and external pressures. These pressures include problems with its workforce, customers and competitors. For instance, the retail company and its stores lack the ability to deliver uniform and quality customer services. In terms of hygiene, the business is not as able in keeping the stores clean and safe at all times. Store floors in some areas are often left untidy; considering that the business mainly retails food product, this environment is unappealing for consumers. Moreover, slippery or wet floors can endanger the safety of the shoppers. Trolleys are also often left on main store entrances and exits, causing great inconvenience for the consumers.
The company’s work teams also lack efficiency due to communication and coordination issues. This problem makes it difficult for the company to handle and manage its subsidiaries. PNS is also encountering major issues with its human resources. For instance, cooperation among the staff is not as efficient. The lack of staff efficiency on the other hand affects the quality of services given to consumers. During non-peak store hours, the staff does not enthusiastically assist store shoppers. The cashier employees also show inappropriate customer transaction practices.
Aside from internal pressures, the retail company is also affected by its external business environment. Specifically, the retail industry in Hong Kong is very active; new business entrants are continuously growing in number, leading to a more intensive competition. Furthermore, technology is also making its ways to retail store improvement. While this is advantageous, competition from major retailers that can afford high end technology serves as a significant threat. Business rivals are also employing strategies similar to PNS, making it difficult to get the most out of its business plans. Expanding to other locations is also a challenge due to the expenses involved. Strategies related to cost reduction, market diversity and manpower management are also yet to be developed by the company.
These internal and external pressures in turn had affected the company’s overall performance. The business realized that in order to maintain the operations of the company for several more years, strategic changes would have to be developed and implemented. The company then developed a business plan with objectives that would help address its major concerns. These objectives include the creation of a better shopping experience for the customers, the development of highly skilled and knowledgeable staff, the empowerment of the employees, the reorganization of the staff structure for work distribution efficacy, the promotion of effective team-building and communication among the company personnel and the employment of proper measures in order to evaluate the progress of the implemented strategic changes.
The plan for strategic change of the company is comprised of various components. One of which is the conduction of trainings for the staff. These are focused on the development of the employees’ communication, leadership and team-building skills. During the process, participants went through workshops that involve seminars, classroom discussions and actual demonstrations. In addition to training programs, the company also carried out modifications on its existing policies and standard operations. Specifically, stricter observance of store policies had been enforced.
A clearer career ladder for both management and subordinate employees has also been developed. This has been integrated in order to optimize the potentials and skills of each organizational member. Opportunities for promotion, salary increases and incentives are also provided for the staff. Regular company gatherings are also to be conducted to recognize employees who have contributed greatly to the company’s development. Furthermore, store managers have also been trained on how to constantly motivate their staff.
The company believed that implementing strategic changes at PNS will result to significant business outcomes. Specifically, this plan may result to essential organizational and personal developments. On the organizational level for example, strategic change can help in enhancing PNS’s corporate culture. This change effect can help foster more productive behavior and attitudes among the employees. It can also direct the activities and efforts of the company members towards the achievement of a common goal. This effect can also broaden the understanding of the employees towards the people whom they serve. Leadership is also enhanced through organizational culture development. Better leaders are important in a business as they can help develop a mission and vision that are consistent, challenging but practical. They develop plans that are strategic in order to achieve the mission and cultural plans to achieve the vision.
The strategic plan of PNS mainly involves the intensive training of the managers and their subordinate employees. This could then lead to other important developments to the personnel level. For example, the quality and quantity of the services they provide for the customers can be enhanced considerably. The reduction of mistakes and errors as well as the emphasis on quality can be attained by means of training the employees. The amount of work employees can provide can also be improved through the same means.
In addition, employees can learn other skills that would make them more useful for the company. In particular, trained and highly-skilled workforce are the key in anticipating possible company problems, eliminating bottlenecks, developing new products, avoiding production shutdowns and ensuring quality. The development of their social and communication skills through training can also enable the employees to participate in group meetings as well as contribute in organizational tasks that require decision-making and leadership skills.
The strategic change at PNS also can result to significant personal developments. For example, this could help develop my abilities to interact and manage people. As a store manager, this personal development can help in making me a better company employee. Through this, I can learn new ways on how to handle different forms of interaction as well as personalities without causing major conflicts. I would be able to understand the needs and issues of other employees; this will be helpful in preventing unnecessary work disruptions or conflicts between employees. Enhancing my leadership potential can also help the company in ensuring that the employees are doing their jobs well. Through enhanced leadership skills, I can become a more effective mentor to my colleagues.
Aside from this, my creativity and productivity level can also be enhanced through strategic change. As the business plan of the company aims to empower employees through appropriate training, the staff will be more involved in the company’s different projects and decision-making activities. Empowered employees can provide unique and varied business ideas, which could enhance creativity. This can be useful for a number of company needs like designing new customer marketing strategies, organizing product line presentation and creating store campaigns.
The changes and training involved in the company’s plan can also help in making myself more productive as a PNS employee. Specifically, the skills I will develop will be useful in making more efficient in accomplishing my tasks. The organizational changes will also help me more effective in budgeting my time and available resources. During the training process, I will be able to learn important things regarding the company’s operations, products and services. Through this I will be able to contribute my learnings to increase the competitiveness of the company.
7.2 Conclusion
The implementation of strategic change at PNS resulted to a number of important changes to the company and to the personnel. Among the important achievements of the business include the establishment of better customer relations, development of more competent staff, increased employee satisfaction as well as the enhancement of overall store operations. The change also made the management sector more aware of the different pressures affecting the business. Another important development in the company brought about by change is that it made the company more adaptable, resourceful and creative. In terms of human relations, designing a change project that is directed for the customers and employees made the company more people-oriented, which is an important feature in today’s business sector.
While the change has resulted to positive effects to PNS, the project also led to some negative issues particularly on the personnel. The introduction of change in the company for instance, has been difficult at first due to the resistance of some employees. The employees believe that change in the company will only take valuable resources such as funds, time and energy. They also believe that changing their work routines will only lead to work disruption. This in turn affected the training programs conducted during the change implementation phase as some employees would refrain to participate in the said programs. PNS realized that its planned changes for the company will encounter resistance from some employees. Thus, the company also developed some measures to address this issue.
Despite the resistance of the employees, important developments among the company personnel, particularly in the top management sector, had been achieved. These include the enhancement of their ability to manage conflict and lead the employees. Furthermore, the gap between the lower level employees and the company management was reduced; this has been attributable to the improvement of the managers’ ability to communicate and deal with their staff employees. The employees also gained significant developments from the change project. Their level of productivity, sense of discipline and responsibility as well as their communication skills were improved through change.
Personally, I was also able to attain significant development though PNS’s strategic changes. One of which was the enhancement of my ability to communicate with different types of people. With my responsibility as the store manager, this personal development allowed me to work more efficiently with my staff as well as with the customers. With better working relations, problems happening daily in the store are now more easily relayed to me by my subordinates. As I motivate the staff, my working relations with them had also improved considerably. The change project also allowed me to learn how to effectively manage conflicts in the store. The trainings I have attended in the process taught me the different means of handling different store concerns and issues. In addition, I was also able to develop communication and listening skills, which had been helpful in conflict management.
Going through major changes in the company also made me encounter some problems. In order for me to handle my enhanced responsibilities, considerable time and energy would have to be allotted in order for be to fully adjust. Initially, the adjustment process was difficult for me as I still have to support my staff employees who were also undergoing the same challenge. Helping the company to introduce and observe the strategic changes had been a tedious and stressful experience. Nonetheless, the process increased my adaptability to changing work environments.
In conclusion, there are three important observations from the experience of strategic change at PNS. One of which is that change can bring about both positive and negative effects to the organization. Although strategic change is designed in order to bring important advantages to the company, it should be considered that risks and issues should be expected. For this reason, companies implementing change should always prepare countermeasures to overcome the negative effects. Another important observation is that the progress or outcome of change should be monitored and assessed. This helps in ensuring that the change project is going in accordance to the original plan.
Moreover, this help in determining the possible problem areas brought about by change. Immediate action on these problem areas can help prevent the issues from worsening. In the case of PNS, although the company is gradually achieving its set objectives through change, it will still have to employ other strategies including those that would improve its marketing efforts as well as strengthen its relations with the customers. This is related to the last important observation and that is, change should be a continuous process in order for the business to overcome current and future pressures.
7.3 Recommendation
In order to assess the outcome of the change project at PNS, the company made use of the balance scorecard system wherein both financial and non-financial indicators were used. Through this performance measurement system, the company management was able to conclude that the skills of the employees as well as the sales of the company had improved by means of its change project. However, the company also noted some areas that would need further changes. In particular, the company is in need of strategies that would enhance its current marketing strategies as well as strengthen the relation it has formed with its customers. For this reason, it is recommended that the company adopt continuously develop new strategies and implement further changes.
The improvement of its marketing strategies is necessary in order for the company to overcome the pressures brought about by its business competitors. In order to do this, strategies such as the implementation of the integrated marketing communication (IMC) approach, may be appropriate. This tool enables the integration of various marketing systems and channels, resulting to wider coverage and optimized marketing outcome. Aside from public relations and the use of various communication media, the IMC approach utilizes internet technology, which makes the marketing process more interactive. As this is presently the common trend in the retail industry, an interactive marketing approach can help the company reach out to the customers more.
It is also recommended that PNS does not only generate better relations with the customers. It is also important that this relation is strengthened as well. For this purpose, customer relationship management (CRM) strategy may be useful. This strategy had long been recognized by companies worldwide, including non-retail businesses. This strategy can help the company can learn more about its markets’ characteristics and demands. Gaining more information about the customers can not only help PNS manage its diversified markets but also identify new ones. The CRM strategy can also help the company maintain its customers as well as promote loyalty.
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