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Read the posts of your classmates and comment on their assessment of the current event.

· Do you agree with their analysis? Did you find something else about the organizational change effort that you can add to the conversation?  Respond to at least two of your peers.

Peer One:

Barnes and Noble has been known as the world's largest bookstore since the 1980s. According to their website, they revolutionized bookselling by becoming a superstore that combined a "vast and deep selection" of books, warm and inviting staff, a comfortable and spacious atmosphere, and a comprehensive inventory of "music, educational toys, games, gifts," and even coffee (Barnes & Noble, 2021).

· What were the primary drivers of the change effort? Why were these drivers critical? Who was "feeling the pain" of those issues not being addressed effectively?

As the retail industry became disrupted by e-commerce, Barnes & Noble felt that it should find ways to connect with tech-savvy customers. Barnes & Noble executives worried that as time went on, consumers were going to be looking more for convenience in their book shopping and be less concerned with experiencing the brand onsite. In order to address this, Barnes & Noble introduced the Nook and the concept of eBooks. Interestingly, in 2015, the business model changed and the Nook division "split from the legacy retail bookstores so that each entity could pursue its unique identity" (Gaille, 2015). This is because Barnes & Noble did not respond to change drivers effectively and tried to become a manufacturer of new technology instead of "going where their customers wanted them to go" (Gaille, 2015). Customers saw Barnes & Noble as a bookstore and were faithful to the brand because of its expertise in meeting their needs for learning or entertainment (Gaille, 2015). Customers did not see Barnes & Noble as a technology manufacturer and did not take to the Nook as expected. Barnes & Noble felt the pain of this mistake and its losses and let the Nook go to give it a chance to "reinvent itself away from the legacy bookstore" (Gaille, 2015).

· What was the gap (or gaps) between the current situation and the targeted goal of the change effort?

The targeted goal of the change effort was to connect with tech-savvy customers so as to avoid going under should consumers decide to move from real books to eBooks. The gap between Barnes & Noble's current situation and the targeted goal of the change effort lies in the fact that the company tried to be "everything for everyone" instead of focusing on their "core demographics" (Gaille, 2015). The company failed to see that its customers were dedicated to the brand and experiencing the brand onsite and that this would help Barnes & Noble weather the e-commerce storm. Although the current business model is struggling, there is a great chance that it will not only survive but thrive because of its dedicated customer base (Gaille, 2015).

Article:  Barnes and Noble Business Model and Marketing Strategy - BrandonGaille.com  

References

Barnes & Noble. (2021).  https://www.barnesandnobleinc.com/about-bn/history/

Gaille, Brandon. (2015). Barnes and Noble Business Model and Marketing Strategy. Brandon Gaille Small

      Business & Marketing Advice. 

Peer Two:

Hi Everyone,

Walmart has made a large organizational change due to the COVID-19 Pandemic. Due to its influx in customers, Walmart had to create a new-team based operating model to serve more customers ("Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence," 2020). The change increased associate salaries as well as opportunities for pay. Some specific changes include: cross-training employees to take over different positions when others are out, new leadership roles, and higher pay for some employees ("Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence," 2020). The primary drivers of the change effort were leadership. Leadership noticed the employees, customers, and sales were hurting from the lack of help. There weren't enough employees to serve the giant influx of customers. Also, due to the pandemic, many employees needed time off without proper coverage ("Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence," 2020). Without more well-trained staff, the company itself could not function correctly. 

The current situation had employees doing very task-oriented jobs ("Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence," 2020). The company was more focused on what employees could do for them as opposed to what employees needed to do their job well. Specifically, store managers were responsible for merchandising plans only ("Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence," 2020). This means that they only had one responsibility day after day. The new changes had this role changed to a, "coach" who was now responsible for merchandising, staffing, and talent ("Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence," 2020). More responsibility leads to a more well-rounded business associated, who could use their perspective to help multiple parts of the company. The hope is that these individuals feel as though they are contributing to the company more.  The current situation had many employees working for lower wages. The targeted goal was to have 165,000 employees' pay increased. The overall goal is to give associates the option to grow their career and their pay ("Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence," 2020). According to Forbes, Walmart has met all of these goals (Leob, 2021 ). They even added an increase to over $425,000 employees as of February 2021 (Leob, 2021). Employees have more job opportunities and new roles they can apply to (Leob, 2021). The company itself had a net income drop of 13.5 billion because of their change investment, but their goals paid off because they had a 6.7% revenue jump in 2020 with this change (Leob, 2021). I conclude that even though the company had to invest in their employees to increase their efficiency, it was well worth it.

Best,

Kelly

References

Leob, W. (2021, February 19). As Walmart Plans For Future Growth, Here’s Where It Is Making The Right Moves. Forbes.  https://www.forbes.com/sites/walterloeb/2021/02/19/walmart-reports-2020-results-and-plans-for-future-growth/?sh=69b1fd1bf937

Walmart just made a change that could shape its future for years. It’s a lesson in emotional intelligence. (2020, September 21). Inc.com.  https://www.inc.com/justin-bariso/walmart-just-made-a-change-that-could-shape-its-future-for-years-its-a-lesson-in-emotional-intelligence.html