David jones case study
6DAVID JONES CASE STUDY
David Jones Case Study
David Jones has faced a number of criticisms especially in 2010 which was recorded as one of the worst times of the company. Its reputation was dented after a case of sexual harassment surfaced within the company which left the company exposed with regard to its unhealthy culture of corporate arrogance (Kegan and Labey, 2009). This issue tarnished the company immensely ever since its occurrence and has resulted to the continuous downfall of the company. Additionally, David Jones has also faced international retail attacks which has completely removed it from the race between other retail shop fronts. The company has reached a point where it is not contending for market share within its physical environment. The company has been edged off by international online retailers who ship products to Australia (Kegan and Labey, 2009). Therefore, this report will highlight the various interventions David Jones took to restore the reputation of the company as well as the change implementation framework that can be used by the organization. Furthermore, it will identify the weak areas that will affect future change efforts of the organization.
David Jones has encountered poor management issues which has threatened to distract the image of their brand therefore in order to intervene to such problem, the company should introduce training and development programmes which are aimed to training and developing their managers and staff (Michell, 2012). Training and developing their managers will be able to enhance their customer services and create good relationship between their employees. This will improve the operations of the company and thus boost its competitive advantage.
Trans-organizational Development is a tactic that focuses on creating collective as well as collaborative strategies with other organizations through forming partnerships (Martin and Barber, 2006). This tactic can be very effective for David Jones since it can help the store come up with business relations with other stores. For instance, David Jones has a reputation of promoting local designers, therefore, such a framework can bring a collaboration between the store and a local designer brand selling them exclusively in their stores.
Furthermore, they can solve the problem of intense competition by utilizing the differentiation strategy. David Jones should invest both capital and time in marketing and promotional activities in order to enhance its image recognition (Michell, 2012). This strategy will differentiate it from its competitors thus enabling them to gain competitive advantage. In addition, interventions concerning gaining a high market share and tackling technological challenges, David Jones should embark on online business (Michell, 2012). The company should have both physical and online stores in order to capture a customers from various locations.
Re-Engineering involves rethinking and a radical redesign of business operations with the aim of attaining spectacular enhancements in business performance (Martin and Barber, 2006). This method involves identifying fundamental business operations, defining performance objectives, designing new processes and finally restructuring the organization around the new business processes (Martin and Barber, 2006). This can be very effective for David Jones since it can allow the store rethink of different ways in which they can restructure their online retails so as to match their competitors.
Change Implementation Frameworks
Open System Planning (OSP) framework can be a very effective strategy for David Jones since it would help the store through: assessing their external environment and their response to their external environment. Furthermore, it would help them recognize their fundamental mission and create a scenario of environmental expectations (Martin and Barber, 2006). This would help the store identify their major competitors and the strategies they implement such as online retailing. It would not only help the store adapt effectively to their environment.
In addition, a performance management model incorporates the procedure of defining, evaluating and strengthening the work behaviours as well as the results of the employees (Martin and Barber, 2006). This model also comprises of various practices such as goal setting, assessment of performance as well as a reward system. In addition, high degrees of work performance can be achieved when goal setting, reward system and performance appraisal are merged with business strategy, work technology as well as employee involvement (Martin and Barber, 2006). Therefore, for David Jones to enhance its work performance, its management has to come up with an effective business strategy which defines its goals and objectives. Furthermore, David Jones should focus on workplace technology, which influences their decisions if their practices of performance management should be on the basis of individualism or as a group.
Additionally, the level of employee involvement in a company determines the status of performance management practices. Therefore, the level of employee management within David Jones should be highly participative in every stage of performance management (Martin and Barber, 2006). They should be heavily involve their employees in both designing as well as distributing practices involving performance management. This will encourage their employees to give more of their participation into the company boosting their competitive advantage.
Areas of Weakness
Management of employees can be one area of weakness due to changes in the company. If David Jones decides to create an online platform, it might lead to the job cuts since the consumers would have a direct access to the products (Michell, 2012). This would create a form of resistance to the change since the employees will feel that they may not be involved in a particular change. The structure of the organization can also be a possible area of weakness and may lead to resistance of change. This is because change brings about an entire transformation of the organization which might be a disadvantage to others.
To sum up, change within an organization is a significant undertaking because it can completely transform the face of the organization. On the other hand, change can also bring about resistance within the organization. Therefore, in the case of David Jones, change is crucial because it can bring about an increased performance as well as a good public image. In addition, there are a number of frameworks that are used to promote change within organizations. They include: general and enacted environment, Open System Planning, Trans-organizational Development and re-engineering to name a few.
Kegan, R. & Lahey, L. (2009). Immunity to change : how to overcome it and unlock potential in yourself and your organization. Boston, Mass: Harvard Business Press.
Martin, C. and Barber, K. (2006). Adaptive decision-making frameworks for dynamic multi-agent organizational change. Auton Agent Multi-Agent Syst, 13(3): pp.391-428.
Michell, S. (2012). Retail Rescue Plan for David Jones’, Financial Review, Accessed 8th August 2016 http://afr.com/p/retail_rescue_plan_for_david_jones_6mmF37Ah5Kmibr7w4idXpL