Managing Strategic Change at the Hmv Group
Managing Strategic Change At The HMV Group |
1. Introduction HMV Group announced a three year strategic and operational review in March 2007. The primary purpose of this dissertation is to analyse the methods used to manage this strategic change and to discuss alternatives. The secondary focus is to assess the decision to change. At a time of change, much focus is placed upon developing strategy and not enough on the implementation and management side. It is possible that a ‘perfect strategy’ for a situation is wasted by poor implementation. A specific strategy can be developed over night, however; successful strategy implementation is a much longer process. In order to analyse HMV Group’s change management efforts, it is crucial to understand the company in detail. The prescription for change depends on the diagnosis. The type of change required depends on the nature of the business in its particular context. HMV Group plc consists of HMV; the UK’s largest high street entertainment specialist, and Waterstone’s; the UK’s largest high street bookseller (BMI, 2007). The recent increase in sales of digital products and online digital media shows a paradigm shift in the consumer use of media. HMV Group has admitted that it has not responded quickly enough to the market structure change. In March 2007, HMV group announced a three year agenda to transform HMV and Waterstone’s led by group CEO Simon Fox (HMV Group, 2008). Proposed ChangesOver three years (2006/2007 – 2009/2010) HMV plan to: 1. Protect and revitalise the core business – A new HMV store layout offering internet access, digital delivery media purchase, pay-per-play gaming centres and 3 network concessions increasing footfall. Waterstone’s will do more to grow its share of the children’s book market and launch an innovative loyalty scheme for customers. 2. Grow revenue from new channels – Invest online; in its website and in a new social networking site aimed at uniting people with the same
1. Introduction HMV Group announced a three year strategic and operational review in March 2007. The primary purpose of this dissertation is to analyse the methods used to manage this strategic change and to discuss alternatives. The secondary focus is to assess the decision to change. At a time of change, much focus is placed upon developing strategy and not enough on the implementation and management side. It is possible that a ‘perfect strategy’ for a situation is wasted by poor implementation. A specific strategy can be developed over night, however; successful strategy implementation is a much longer process. In order to analyse HMV Group’s change management efforts, it is crucial to understand the company in detail. The prescription for change depends on the diagnosis. The type of change required depends on the nature of the business in its particular context. HMV Group plc consists of HMV; the UK’s largest high street entertainment specialist, and Waterstone’s; the UK’s largest high street bookseller (BMI, 2007). The recent increase in sales of digital products and online digital media shows a paradigm shift in the consumer use of media. HMV Group has admitted that it has not responded quickly enough to the market structure change. In March 2007, HMV group announced a three year agenda to transform HMV and Waterstone’s led by group CEO Simon Fox (HMV Group, 2008). Proposed ChangesOver three years (2006/2007 – 2009/2010) HMV plan to: 1. Protect and revitalise the core business – A new HMV store layout offering internet access, digital delivery media purchase, pay-per-play gaming centres and 3 network concessions increasing footfall. Waterstone’s will do more to grow its share of the children’s book market and launch an innovative loyalty scheme for customers. 2. Grow revenue from new channels – Invest online; in its website and in a new social networking site aimed at uniting people with the same
References: Books Carnal, C.A. (2003) Managing Change in Organisations, Fourth Edition. Harlow: FT Prentice Hall Cartwright, J. (1999) Cultural Transformation, Harlow: Prentice Hall Chaffey, D. (2007) E-Business and E-Commerce Management (3rd edition), Harlow: FT Prentice Hall Chandler, A.D., Jr. (1962) Strategy and Structure: Chapters in the History of Industrial Enterprise. Cambridge, MA: MIT Press Eccles, T. (1994) Succeeding with Change, Maidenhead: McGraw-Hill Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach. Pitman: London Hayes, J. (2002) The Theory and Practice of Change Management. Palgrave Macmillan: Hampshire Johnson, G., Scholes, K.(2005) Exploring Corporate Strategy: Text and Cases, 7th Edition, Pearson Education Lynch, R. (2006) Corporate Strategy (4th Edition), FT Prentice Hall: Harlow Mintzberg, H., Quinn J. B., Ghoshal, S., (2002) The Strategy Process. (2nd European Edition), FT Prentice Hall: Harlow Pettigrew, A. and Whipp, R. (1991) Managing Change for Competitive Success, Oxford: Blackwell Raynor, M.E. (2007) The Strategy Paradox, First Edition, London: Doubleday Tichy, N. (1983) Managing Strategic Change, Wiley Tichy, N. and Devanna, M.A. (1990) The Transformational Leader, Wiley Journals Baden-Fuller, C. and Stopford J. M. ‘Rejuvenating the Mature Business’, Harvard Business School Press (1994) Geiger, S.W., Richie, W.J. and Marlin, D. ‘Strategy/Structure Fit and Firm Performance’. Organisational Development Journal. Summer 2006, 24, 2, p.10 March, J.G. ‘The Business Firm as a Political Coalition’. Journal of Politics. 1962, 24, 662-678 Kotter, J.P. ‘Leading Change: Why Transformational Efforts Fail’. Harvard Business Review. March-April 1995, 39-67 Schweiger, D.M. and DeNisi, A.S. ‘Communication with employees following a merger: a longitudinal field experiment’, Academy of Management Journal, 1991, 34, pp.110-135 Websites ‘HMV Group Strategic and Operational Review’, HMV Group, (Cited 12/02/08) available at: http://www.hmvgroup.com Trochim, W.M.K. (2006) ‘Nonprobability Sampling’, Web Centre for Social Research Methods (cited 12/03/08), available at: http://www.socialresearchmethods.net Video(1) Gerry Johnson interviewing George Yip on the subject of global strategy, referring to his 1992 book listed below Bibliography Williams, C. and Rains, J. ‘Linking Strategy to Structure: The Power of Systematic Organisation Design’. Organisation Development Journal. Summer 2007, 25, 2, p.163-171 Yip, G. (1992) Total Global Strategy: Managing for Worldwide Competitive Advantage. Harlow: Prentice Hall |