Accelerated speed in market changes affects organization

Iqra NaseerMP/2013-40

University of The Punjab, Lahore , Pakistan

Change

• “It is not the strongest of the species that survives, nor the most intelligent that survives.

It is the one that is the most adaptable to change.”

Charles Darwin

Change in market

• There is no permanent organizational chart for the world… It is of supreme importance to be ready at all times to take advantage of new opportunities.

Roberto C. GoizuetaFormer Chairman and CEO

Coca-Cola Company

Market Change

“market change" is:• to give a different position, course, or

direction to organization• to make a shift from one to another• to undergo a modification in market• to undergo transformation, transition or

substitution of things

Types of change in organization

• incremental change “may involve adjustments, tuning, enhancing in systems, processes, or structures, but it does not involve fundamental change in strategy, core values, or corporate identity.”

• discontinuous change “is transformational, re-orientation, re-creation and fundamentally alters the organization at its core.”

Speed of change

• Two streams of change• In the first stream, speed refers to the rate at

which an innovation is diffused throughout a population of organizations (Rogers, 1983).

• In the second stream, speed refers to the rate at which a product is transformed from an idea to a marketable entity (Stalk & Hout,

• 1990).

Principles of Change

1. Challenging emotions should be greater than positive emotions.

2. Change only happens when each person makes a decision to implement the change.

3. Confidence of getting tough any where.

4. Truth" is more important during periods of change and uncertainty than a’ good news’.

Twelve Principles of Change

5. The intrinsic rewards of a project are often more important than the material rewards and recognition.

Contd…

6. The change process must be linked to business and performance goals

7. The change process involves both organizational and personal participation

Model of innovation speed

Need for speed

+ Economic competitiveness

+ Technological dynamics

+ Demographic dynamics

Strategic orientation for speed

+ Speed emphasis+ Goal clarity+ Project support- Project stream breadth+External sourcing

Organizational capability for speed

+Champion pressure+Leader strength+Member experience+Team representativeness+Project integration+Project orientation

Product quality

Innovation speed

Cost of development

Project success

ERIC H. KESSLERPace UniversityALOK K. CHAKRABARTINew lersey Institute of Technology

Factors affecting market change

• Change is inevitable in the life of an organization.

• Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out.

• Technological changes• Marketing conditions, • Social changes,• Political and legal market changes,

External factors

Conti..

• Changes in the managerial personnel• Deficiency in Existing organization:

Internal factors

Recent major market changes• INCOME CHANGES• The marketing man is primarily interested in whether

people have money to spend, who these people are, how much they have to spend and where he can find them.

• They are also interested in the amount of money available for discretionary spending beyond the essentials of food, clothing, shelter, essential medical care, incidental business expenses, and so on.

Conti…

• POPULATION SHIFTS• This is a nation which has never hesitated to

move on to new frontiers,• shift of people from place to place during war

time change the market.• Change in rationing and income sources.

Conti..

• OCCUPATIONAL SHIFTS• There has always been some movement from

place to place and from occupation to occupation.

• Women and youths of school age have contributed to work.

Conti..

• SAVINGS AND DEFERRED DEMAND.

• A very high reservoir of savings has been accumulated by individuals in the form of cash, property, bank deposits, and war savings bonds.

• Deferred demand is to make decisions for the six months. i.e upcoming elections, war.

Conti..• CHANGED LIVING STANDARDS AND BUYING

HABITS• The increase in family income has been much

greater than the increase in the cost of the basic goods and services to which they have been accustomed.

• Families are more conscious about standards, buying greater varieties of rationing, automobiles, dresses, homes, etc

References• Everett R. Smith & Himmel, C. Some Major Recent Market Changes. Journal of Marketing,

Vol. 9, No. 3 (Jan., 1945), pp. 225-233.

• Eric H. Kessler & Alok K. Chakrabarti, INNOVATION SPEED: A CONCEPTUAL MODEL OF CONTEXT, ANTECEDENTS, AND OUTCOMES. Academy of Management review (1996). Vol. 21, No. 4, 1M3-1191.

• www.wikipedia.com• http://www.evancarmichael.com/Small-Business-Consulting/3776/5-External-Forces-That-Aff

ect-Sales-and-Marketing-Success.html• www.slideshare.com