Analysis of Burke-Litwin Model
The Burke-Litwin diagnostic model is a comprehensive approach that focuses primarily on transformational factors that affect change. These transformational factors include the external environment, mission and strategy, leadership, and organizational culture (Akin, Dunford & Palmer, 2009). The Burke-Litwin model takes a top down approach where change should start at the top of the organization and flow down to the bottom. The primary transformational factor affecting both Sears and J.C. Penney was the external environment. Each of these companies faced tremendous pressure from non- traditional retailers offering online convenience for affordable prices. In addition, their inability to embrace ecommerce in its infancy compounded the difficulties for both retailors. The Burke and Litwin diagnostic model helps to illuminates the changes made by both organizations. These changes in the environmental landscape of the retail industry should have been more immediate and timely as to capture new customer and maintain the base. Another transactional factor that had an effect on the organization was the changes in their mission and strategy. Over the years both companies have changed their strategies multiple times. Sears and J.C. Penney has changed their CEO’s even hiring a CEO with no experience in the retail industry. The directions that these CEO’s turn their respective organizations into help to alienate their base and further create profitability challenges. Today these both challenge retailors are still trying to recover from their past missteps. Sears and J.C. Penney are loosing money by the truckloads. Sears is considering selling the remainder of its Canadian business while J.C. Penney just experienced a solid last quarter, with better than expected margins, and a small sales increase. The future is bleak for both retailors with annual losses for both retailors exceeding over 25% of shareholder equity (Hiller,...
References: Akin, G., Dunford R., and Palmer I. (2009). Managing Organizational Change: A Multiple Perspectives Approach (2nd ed.). New York: McGraw Hill
Hiller, Thomas (2014). J.C. Penney: Don’t Try To Catch A Falling Star Retrieved from the World Wide Web: http://seekingalpha.com/article/2235123-j-c-penney-dont-try-to-catch-a-falling-star
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