Change Management Process Goodyear

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CHANGE MANAGEMENT

GoodYear Company:
Analysis of change process

Introduction

In the framework of this project, we decided to use a Goodyear company, because we met during a lecture a manager of this company. This group provides rubber-based products, is present in several countries and generates a sales turnover of nearly 22 billion US$ in 2011. However, an audit has made ​​it clear to the company that a serious communication problem between every entities blocked group efficiency (delays, costs). So this company met strong difficulties to manage the necessary change of its structure in order to stay competitive. Consequently, we think it would be interesting to analyse the process used and the difficulties met in applying theoretical issues of the class.

Firstly, we will describe the company in details. Secondly, we will see the change management process made by the company.

1. Description of the company

Goodyear Tire and Rubber Company was created in 1898 by Frank Seiberling. The company manufactures tires for cars, planes and trucks. They manufacture also lot of others products related to the rubber in the automotive industry.

The first place where they begin to manufacture tires was open in Akron (Ohio, USA) in 1898. At this time they built tires for bicycle, carriage and horse hooves. The huge development began with Henry Ford who ordered tires for racing and after for the T-ford.

After that, in 1911 for the World War II, the designed some plane and airship that helps allies to won the war “of course”.

In 1926, Goodyear was the most important company of rubber in the world, and during the following 26 years, Goodyear became a multinational with an overhead of several billion.

Today at the global Goodyear brand, with its thousands of breakthroughs, innovations, new inventions, firsts and groundbreaking improvements, you're seeing a reflection of the bold, innovative and down-to-earth character of the company's founders. Today, Goodyear is the world's largest tire company, with a presence on six continents and annual sales of more than $15 billion. In addition to Goodyear brand tires, it produces several other well-respected brand names including Dunlop, Kelly, Fulda, Lee, Sava and Debica. 2. Change Management Process

2.1 Why and what are the objectives of the change management process in the GoodYear Company?

Change process often needs to be provoked by a person who is extern to the company, independent and objective about the company situation. In this case, an audit is useful to make company realising its weaknesses This audit allowed the company to have an impartial vision on its global operation, to have data on main issues and to start implementing the improvements necessary: more communication in order to increase the company global profitability. That means communication is not developed enough at the present time, that blocks company effectiveness by increasing delays and costs.

►First objective: improve cooperation and synchronism between business units

CEO wanted to implement a systemic change based on the Model of Cooperative Conceptual Change (M3C) which consists in: * Managers training to new managerial tools and techniques * The intervention of an external trainer to change team and individual behaviour * Inciting managers to have a daily pro-active attitude, making them able to realise the impact of their actions thanks to models.

►M3C objective: to increase company global effectiveness by using the following tools:

* More communication between teams and business units
* Empowering and autonomy of managers in order to decrease the decision-making process time. * Cooperation and “co-opetition”

That is why the CEO took the following decisions:

* To modify the structure of the company in departments and units linked to the supply chain in order to synchronize production and sales and to increase cooperation between...
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