ORG6503 : Organizational Theories & System
Instructor: Kathleen Henry
September 24, 2011
The owner of Creative Colors has taking my advice regarding restructuring and downsizing the company. The organization is now operating much more efficiently and has seen revenues begin to climb in its retail stores. With the improving economic climate in the region and the growing strength of the U.S. dollar compared to the Canadian dollar, the owner now sees an opportunity to acquire a regional competitor, Art Depot, based in Vancouver, Canada. The Owner of Creative Colors wants to expand the retail service capacity of Creative Colors by bringing Art Depot’s two retail stores (both located in Vancouver, Canada) under the Creative Colors’ brand. Creative Colors has known in the marketplace for their high quality, personalized service, while Art Depot has focused on a low-cost business strategy. The owner of Creative Colors is anxious to create a culture within the two Art Depot stores that supports excellent customer service. In this paper I will give her some advice about creating a new culture in the Art Depot stores. Low price strategy is a pricing approach where a company can give a low price to the people in order to encourage the mandate and the increase in the market share. This approach is the three common marketing strategies that can be used by any company, and is typically in use where the product has very little or no competitive advantage or where economies are achievable and they have a higher production quantities. Types of organizational values and norms
Norms are known as the common beliefs of a require character for all role incumbents of a system or subsystem" (Katz and Kahn p. 43) and Values are more generalized ideological justifications for norms, and express the aspirations that allegedly inform the required activities" (Katz and Kahn p. 43). Creating a culture that will help the employee.
When we look at the transition of the two stores in how it can produce high quality and personalized service the employee must be energetic, not just volatile will to change for the better of the company. The employee must influence a high quality environment, not just adapt to anything less. The store must be think about it future, not just the present/past oriented if they open minded changes will be easy for them. one of the most important factor to me in running an Art Deport I believe the organization as well as its employee must be relationship-oriented, not just task-oriented because when you care for people and value them as a person the custom can feel it in the way you service them ,therefore producing high quality and personalized service . The owner of the newly Vancouver , Canada “ Art depot” employee are the face of the company and if the organization want the store employee to behave in a way that would produce high quality the company must provide ongoing training and education for the employees it is a great investment therefore, leading to the improvement of sales. Education therefore, and the ability and willingness of the employee to learn new skills becomes an important competitive driver to the growth of business. Transitioning from a Low cost strategy to a differentiated strategy.
A low-cost strategy is to gain a sustainable cost advantage over competitors by either underpricing them to increase market shares, or earning a higher profit by selling at the industry average. Low-cost leadership means low overall costs, not just manufacturing or production costs. To sustain a low-cost leadership strategy a business should have access to capital, skill and expertise in designing products, and a low cost base and/or other methods (Pearson J.A. & Robinson R. B., 2011) this strategy is about producing a product to the consumer, almost the exact same product as the rival company with the same value, just being able to produce it more...