The tire industry is a very competitive industry with major players such as Bridgestone Corporation; The Goodyear Tire and Rubber Company and Compagnie Générale des Établissements Michelin. Competing in this market with low margins has been hard for Continental AG before 1995. They have been losing money due to their high manufacturing costs and not able to compete against big competitors.
Von Grunberg was appointed as new CEO in 1991 and has implemented several changes for the continuity of Continental AG and growth. Cutting labor costs by shifting manufacturing processes to low labor cost countries and restructuring the organizational strategy through innovation and differentiation has been are the main changes implemented.
Continental AG has used different sets of theoretical change strategies and tools as a combination to become a learning organization. Models such as Kurt Lewin field forces, Kaizen, Michael Porter’s generic strategies and Liedtka’s thinking model have all been implanted over the years.
Building theoretical knowledge in practice is a good way of understanding that it is clearly in correlation with the practical side of management. Through the combination of historical models and looking to the internal and external factors is the key for revival.
Table of contents
The initial change strategy
The underlying assumptions of strategic thinking
Change tool applied
The modification and development process of the change tools and solutions
Evaluation of alternative strategies
Evaluation of alternative change tools/solutions
Justification of the given intervention
This report has been created for the purpose of investigating an active company within the business environment that has had a change intervention authorized by Curtin Business School to get an insight on how theory can be applied into practice.... [continues]
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