Human Resource Management
Analyzation of “The Case for Change at Modern Appliances”
James Bradshaw came to understand employee engagement as a way to ensure ongoing business effectiveness through a series of events. In the article, it states “Modern Appliances had been in business for almost 75 years and manufactured a wide range of appliances. With sales in excess of $2 billion, Modern was considered a quality manufacturer and a good marketer.” Further, it states that in recent years, the company began to face competitive pressure as North American companies began to outsource manufacturing to China and Vietnam as well as domestic Chinese manufacturers were learning to compete effectively outside their home markets and were importing into Modern’s traditionally strong North American markets. Additionally, European companies were focusing on styling to tempt people away from traditional North American suppliers and they were luring away segments of the market to whom innovative design was appealing. (Gantz, 2007)
Modern’s old business model consisted of various layers of cost control. Modern had strict and comprehensive cost controls in place to ensure expenditures were being controlled. For example, all supplies were ordered centrally and Modern’s purchasing department consistently negotiated good prices from their suppliers. With the various measures in place, Bradshaw felt that Modern could defend itself from new entrants if the workforce was fully engaged in the challenge of creating a truly superior value proposition for its customers and then sustaining the value proposition through everything they did to manufacture the product and market through their trade channels (Gantz, 2007)
Globalization put pressure on Modern because of outsourcing and the importing of appliances into North American markets. Further, the new entrants focused on the style of their products and in turn, Modern began to lose business as customers were being lured away as they found the designs to be
James Bradshaw came to understand employee engagement as a way to ensure ongoing business effectiveness through a series of events. In the article, it states “Modern Appliances had been in business for almost 75 years and manufactured a wide range of appliances. With sales in excess of $2 billion, Modern was considered a quality manufacturer and a good marketer.” Further, it states that in recent years, the company began to face competitive pressure as North American companies began to outsource manufacturing to China and Vietnam as well as domestic Chinese manufacturers were learning to compete effectively outside their home markets and were importing into Modern’s traditionally strong North American markets. Additionally, European companies were focusing on styling to tempt people away from traditional North American suppliers and they were luring away segments of the market to whom innovative design was appealing. (Gantz, 2007)
Modern’s old business model consisted of various layers of cost control. Modern had strict and comprehensive cost controls in place to ensure expenditures were being controlled. For example, all supplies were ordered centrally and Modern’s purchasing department consistently negotiated good prices from their suppliers. With the various measures in place, Bradshaw felt that Modern could defend itself from new entrants if the workforce was fully engaged in the challenge of creating a truly superior value proposition for its customers and then sustaining the value proposition through everything they did to manufacture the product and market through their trade channels (Gantz, 2007)
Globalization put pressure on Modern because of outsourcing and the importing of appliances into North American markets. Further, the new entrants focused on the style of their products and in turn, Modern began to lose business as customers were being lured away as they found the designs to be
References: Gantz, J. (2007). Employee engagement at Modern Appliances, Inc. Boston, MA: Harvard Business School Publishing. Retrieved from http://cb.hbsp.harvard.edu/cb/access/9788411 Nayar, V. (2010). Recasting the Role of the CEO: Transferring the Responsibility for Change- How Leaders Can Tap the Creative Energy of Employees. Retrieved from http://cb.hbsp.harvard.edu Raines, M. S. (2011) Engaging employees: Another step in improving safety. Professional Safety, 56(4), 36–43 http://smallbusiness.chron.com/causes-resistance-change-organization-347.html