Read the description below and complete. Must be between 850 and 1350 words. Correct attached to discuss a specific firm.

Managing Organizational Change

Renita Wickes

CTU

Business Management

Part 1

What is offshoring?

So that a company may reduce costs such as tax among many more costs, it may decide to put some of its money or even manufacture their goods. This process is called offshoring. Therefore the things that the manufacturer may look at including the economic conditions and the labor costs whereby the person may consider better economic conditions that are affordable or cheaper labor costs.

How were the stakeholders affected?

When a company decides to relocate its manufacturing activities to another country, for example, the stakeholders will be adversely affected an example being Microsoft Incorportaion. This includes the employees in the country of origin. As this may be one of the key reasons as to why the country is offshoring, they may lose their jobs. The vendors in the country of origin may start leaving a low-quality life as they experience a loss market.

What initiated the change?

As indicated earlier the need to offshore is as a result of increased labor costs and also the tax imposed on the production business of the company thus so that the company may save on the production and increase the profitability there may be the need to establish an offshore manufacturing company to take advantage of the cheaper labor in the respective new country of production ("Strategic Management for Competitive Advantage", 2016). Thus may not be positively accepted by the local employees in the mother country as they will be affected and also the vendors but to the management, this may sound good and highly welcomed as they understand the need to reduce production costs and increase the profit base. These changes nay are due to a sharp decrease in the profitability and very beautiful markets that a company may want it to take advantage of.

Part ii

Why this is considered a transformational change

Offshoring is considered as a transformational change. But what is a transformational change? This refers to a change in the strategies of a company in the way it has been operating. Thus this may include things like change in the geographical location, vendors, and the management. Thus if we look at the offshoring, in particular, it has elements similar to those described in transformational change. They include the change in the geographical location as the company starts operations in a new country, change in its vendors as it will start fetching vendors within the new country and also change in the managerial structure as new people may be appointed to head the new business.

Why can the firm not just keep doing what it has been doing?

Presently there are so many firms that are being started, thus there is increased competition in terms of product markets and the efficiency. Therefore the new upcoming companies re really branding their products and making them serve as many purposes as possible. This has made the existing companies face such stiff competition (KPMG, 2015). However, the only ways to manage such company is through the change in the way operations are carried out. One of the ways to change the way operations are carried out is through offshoring, by so doing, the company will look new in the face of the new country which would make it start competing for a fair share of the market. Also, another important fact is that this method helps a company to drastically seek for new dynamic and innovative talented people who can manage and run a business with regards to the latest trends in the markets.

What is management's role in the transformational change?

So that transformation may be effective there is the need to have an effective leadership that will drive the process until a time that the business will have picked up operations. It is so saddening that a company may have been struggling so much to come to terms in the market but all the struggles do not result in an achievement. This is because the company may not be fully involving some of its most important stakeholders ("The Role of Leadership in Organisational Transformation", 2016). Thus the leadership that is effective enough should be the key to such a transformation. Hence the role of such leadership should be ones who are able to manage issues, here as an organization is transforming, there are usually issues to do with the technical and emotional aspect that needs to be handled by the management. The second function for the management is that they are shapers, here they are expected to control the process to ensure that they go as per the plan.

Are there easier alternatives to accomplish the goal of remaining competitive?

Transformational change say offshoring may be one way of remaining competitive. However, it is not the only way businesses can gain competitive advantage, there are a number of options that can be emulated. The first option is to align effective models of operations with strategy plans for growth. This is because in the event of business operations, as time moves operating models as change. Thus it would be advantageous if businesses adopted the models that are flexible enough to enhance the growth of the business. The second way is having the right size of assets and capabilities that are able to be aligned with the strategic plans of the company, by focusing on the assets and the size of the workforce the company has so that it may not be very expensive to manage the business.

References

KPMG. (2015). Remaining Competitive in the Technology Industry. Retrieved November 30, 2016, from https://home.kpmg.com/content/dam/kpmg/pdf/2015/10/remaining-competitive.pdf

The Role of Leadership in Organisational Transformation. (2016). Cscollege.gov.sg. Retrieved 30 November 2016, from HYPERLINK "https://www.cscollege.gov.sg/Knowledge/Pages/The-Role-of-Leadership-in-Organisational-Transformation.aspx" https://www.cscollege.gov.sg/Knowledge/Pages/The-Role-of-Leadership-in-Organisational-Transformation.aspx

Strategic Management for Competitive Advantage. (2016). Harvard Business Review. Retrieved 30 November 2016, from HYPERLINK "https://hbr.org/1980/07/strategic-management-for-competitive-advantage" https://hbr.org/1980/07/strategic-management-for-competitive-advantage