OL 650 Meeting Minutes for Module _1_Group Number: __8___

TYPE OF MEETING BLACKBOARD DISCUSSION BOARD, CONFERENCE CALL, EMAILS

FACILITATOR Annie Cashman, John Grasso

NOTE TAKER Holly Watkins

DATE(S)/TIME Various

ATTENDEES Annie Cashman, Holly Watkins, Deborah Quinton, Dhwanit Shah, John Grasso, Wendy Weum

ABSENT

DURATION: (2) 60-minute conference calls.

Agenda Topic (s)TEAM BUILDING The team made self- introductions and each offered availability. We also discussed the

facilitator schedule and internal group deadlines.

TRADER JOE’SQUESTION 1

Answer:Organizational design is a methodology which is used to identify dysfunctional aspects of business such as the procedures, work flow, systems and structures and then realign them to fit the requirements of the current business and then develop plans to implement the new proposed changes. When Joe Coulombe’s realized that his supermarket chain was facing challenges from the growing 7-11 chain, he changed his approach towards the organizational design. His approach included decentralizing authority and empowerment of salesperson. It even influenced the way he controlled his sales person (Jones, 2010, p.26). He changed his strategy and started supplying upscale specialty products in his store. These products included drinks, wine and gourmet foods for the customers. He changed the name of his stores to Trader Joe’s and started providing every brand and variety of California wine that was available at that time (Jones, 2010, p.26). In addition to this he also added products like bread, cheese, fruits and vegetables in his organizational design to complement the wine sale. His approach started generating good return on investment (Jones, 2010, p.26).  

TRADER JOE’SQUESTION 2

Answer: In the very beginning, Coulombe knew that he had to create an atmosphere that promoted great customer service to enhance the shoppers experience and help separate Trader Joe’s from its competitors. In order to encourage the sales team to provide such a high standard of service the employees needed to have a positive morale. In order to create the positive work environment Coulombe gave the employees autonomy to make their own decisions; they were paid generous salaries and promotions were from within the company (Gareth, 2013 p.26).  Their relaxed atmosphere encouraged employees to interact with the customers creating a very unique shopping experience when compared to other supermarkets. The strong employee relationship focus created an environment of happy employees who in turn created happy customers. This customer friendly service is what helped make Trader Joe’s so successful.

TRADER JOE’SQUESTION 3

Answer:While Trader Joe’s motto of providing organic food at competitive prices still guides their business, they are facing numerous questions about the sources and suppliers

of their organic food products. Consumers are unhappy with the quality of service, which has deteriorated. Additionally, many consumers have criticized the company for using too much packaging, which not only means that the product inside the package is less in quantity but also that the company is not as eco-friendly as it claims to be. John Grasso also put together a SWOT analysis that accurately depicts Trader Joes. Strengths:

1. Credible brand: More than 50+ years old2. Distribution network: Chain has more than 400 stores across the country3. Supply Chain: Trader Joes obtain the right resources from suppliers and delivery the right product to customers in a timely manner4. Unique Products: Chain can charge higher prices for their products, because consumers can’t get those products elsewhere

5. Customer Loyalty: When given a choice, customers are loyal to Trader Joes. Instead of targeting all customers, chain only needs to target new customers in order to grow their business

6. Strong Brand Name: This gives firm the ability to charge higher prices for their products because consumers place additional value in the brand Weaknesses:1. Product recalls has affected the brand image a few times2. Geographic limitation means low market share 3. Limited Selection: Although the brand carries high-quality items, the store is not considered a "One Stop Shop" Opportunities:1. Expanding markets for private labels2. Growing demand for organic foods3. Online Market: The online market offers Trader Joes the ability to greatly expand their business4. International Expansion: International markets offer Trader Joes new opportunities to expand the business and increase sales Threats:1. Rising labor cost2. Substitute product: The availability of substitute products hurts chains ability to raise prices3. Intense Competition Sources:

Gareth R. Jones. (2013). Organizational Theory, Design, and Change. 7th Edition. Pearson Education Publisher: ISBN-10: 0-13-272994-6; ISBN-13: 978-0-13-272994-9.

Source: http://www.mbaskool.com/brandguide/lifestyle-and-retail/9643-trader-joes.html

WESTLAND HALLMARKQUESTION 1

Answer:Overall the group agreed the main reason(s)for the atrocious behavior was (1) Greed and (2) the managers failed to properly supervise and exercise ethical work practices

in their decision making. Unfortunately this was nothing new. According to Jones, “Federal investigators turned up evidence that as early as 1996 the plant had been cited for overuse of electric prods.”  (2013, p. 56) Employees commented that “supervisors were pressuring them to make sure they were slaughtering 500 cows daily to meet their quotas”. (Jones, 2013 p.56) This behavior appears to have come from the very top of the organization. As one member stated, “Based on CEO, Steven Mendell's behavior after his organization was caught, it is clear that this leader promoted completely unethical values, and focused on profit above all other ethical considerations, and this attitude permeated the organization.”

WESTLAND HALLMARKQUESTION 2

Answer:The group discussed several solutions which included the need for a thorough training program, incentive programs and the need for clear, written policies for the treatment of animals and the proper hygiene of the facility. These policies should include procedures that are ethical, orally sound and comply with all appropriate regulations governing the handling and processing of livestock. One member commented that a policy protecting whistle blowers may have prevented the situation from escalating to such a tragic level. The group agreed, as Jones states, "The creation of an ethical corporate culture requires commitment at all levels of an organization, from the top down" (2013). .  Overall, the entire management team should have had the best interests of all stakeholders in mind, not just their own.  As part of this, the quotas that are expected must be reasonable and obtainable. Asking the managers to push through and hit quotas that are not reasonable is dangerous and promotes unethical behavior. 

IKEAQUESTION 1

Answer:IKEA has created an organizational culture that empowers their employees. Ikea has kept its environmental complexity very low in many ways.  Its products are simply designed, packaged in a way that greatly minimizes the space needed to store inventory, and delivers basically the same products to all of its customers regardless of the geographical market. ).  Ikea has followed the same model, with the same culture for decades.  It has a significant market share and because of the investment in its employees has a workforce that is more stable than others in its industry. .  Ikea uses materials that are easy to acquire, which coupled with their size and ability to leverage economy of scale, allows them access to their raw materials without significant competition. Other concepts discussed by the group included:

Easy to understand rules and procedures “simplicity, attention to detail, cost consciousness and responsiveness in every

aspect of its operation and behavior” (Jones, 2013 p. 88) They send their best and brightest managers to open up new stores.  every new employee, should start the global approach at the time he/she starts his

job by performing it at the bottom of the ladder and getting trained to perform all various jobs involved in store operations

IKEAQUESTION 2

Answer:Based on the Resource Dependency Theory, Ikea's ability to "minimize it dependence on other organizations for supply of scarce resources" (Jones pg. 69) has been the

lynchpin for its success.  IKEA has identified how to be successful in their organizational domain and they've carried that through to every new location they've opened across the globe.  They've kept the focus on the employees and as long as they do that, the environment itself won't have as much of an effect. The overwhelming theme is that good leaders lead by example.  The owner Ingvar Kamprad implemented his values of hard work, teamwork and responsibility towards the IKEA business. He believed that his customers and employees should be treated equally and fairly. One of the most important reasons IKEA has been so successful is that IKEA’s managers start in the warehouse floor. Most of the IKEA managers started from the lowest position of the store and moves their way up the position ranks. This process allows the potential manager to build IKEA’s global values and norms. Therefore, when they expand globally, IKEA’s values and norms would be the same in every store.

Gareth R. Jones. (2013). Organizational Theory, Design, and Change. 7th Edition. Pearson Education Publisher: ISBN-10: 0-13-272994-6; ISBN-13: 978-0-13-272994-9.

OTHER:

Project or Other –(As Needed)Individuals discussed their CMI topic choices and solicited feedback from the group via Blackboard

Final Change Management Project Topic:

Please include a table of CMI project topic of each team member in MM1:

Student NameOrganization Name/

Department/IndustryBrief Description of CMI Topic

Annie Cashman Nordson Medical Moving operations to MexicoJohn Grasso Hamden Fire Dept. Transition to electronic patient care

reporting systemWendy Weum DaVita/Administrative

Team/ Healthcare Management

Creative Succession Management Plan for our future leaders

Holly Watkins STG International, Inc. Implementing a rotational training program

for the operations staff to provide better succession planning and a promotional track for participating employees.

Deborah Quinton Virtua Health IT Self ServiceDhwanit Shah eProcurement Project Standardize procurement process

across the company

Discuss how the team will review each other’s CMI project. One on one review or as a group during team meetings?

Team Review Process List:

ACTION ITEMS PERSON RESPONSIBLE DEADLINE

Initial answers to case questions posted to Blackboard All 3/30/16

3 Quality Feedback Posts to classmates All 4/1/16

Submit Module 1 deliverables John 4/3/16

Post CMI topic to Blackboard All 4/3/16

This form is adapted from Dr. Lisa Chandler’s WMM template.