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Types of Change

Types of Change. Anticipatory. Reactive. Importance of Timing. ALLENTOWN MATERIALS CORPORATION (A) . Harvard Business School Case Study. Performance Gaps. Profitability Poor Problems in Developing New Products Low Morale Organization Not Pulling Together. External Environment.

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Types of Change

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  1. Types of Change Anticipatory Reactive

  2. Importance of Timing

  3. ALLENTOWN MATERIALS CORPORATION (A) Harvard Business School Case Study

  4. Performance Gaps • Profitability Poor • Problems in Developing New Products • Low Morale • Organization Not Pulling Together

  5. External Environment • Change From Military to Commercial Markets • Increased Price Competition & Cost/Price Squeeze • Need to Develop New Products • Increased Demands for Service • High Degree of Uncertainty & Unpredictability

  6. Organizational Problems • Conflicts Between Functions • Poor Coordination • A Culture Where Conflict Is Not Confronted • A History of No Teamwork at the Top • No Clear or Agreed Upon Strategy

  7. Organizational Problems • No Common Agreement About Criteria of Performance • Marketing Seen As Important, But Not Competent--Low Influence • Product Development Meetings Are Ineffective

  8. Organization Design Issues • Moved HQs From Barnett to Allentown • Marketing Role Not Clearly Understood • Manufacturing Measured on Profit, but Unable to Control Unit Costs • Separation of Sales & Marketing • Coordination Through Top of Organization, --No Other Mechanisms

  9. Leadership Issues • Death of Joe Bennett • New G.M. Has Different, Less Directive Style • New G.M. Not Confronting

  10. People • High Expectations for Growth and Advancement • New Managers Brought in by G.M. From Traditional Glass Business

  11. Congruence Model of Organizations Environment Resources History System Unit Individual

  12. Congruence Model of Organizations Informal System Environment Resources History System Unit Individual Work Formal System Strategy People

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