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Accelerated speed in market changes affects organization

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market changes affect organization change

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Accelerated speed in market changes affects organization

  1. 1. Accelerated speed in market changes affects organization Iqra Naseer MP/2013-40 University of The Punjab, Lahore , Pakistan
  2. 2. Change • “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” Charles Darwin
  3. 3. Change in market • There is no permanent organizational chart for the world… It is of supreme importance to be ready at all times to take advantage of new opportunities. Roberto C. Goizueta Former Chairman and CEO Coca-Cola Company
  4. 4. Market Change “market change" is: • to give a different position, course, or direction to organization • to make a shift from one to another • to undergo a modification in market • to undergo transformation, transition or substitution of things
  5. 5. Types of change in organization • incremental change “may involve adjustments, tuning, enhancing in systems, processes, or structures, but it does not involve fundamental change in strategy, core values, or corporate identity.” • discontinuous change “is transformational, re-orientation, re-creation and fundamentally alters the organization at its core.”
  6. 6. Speed of change • Two streams of change • In the first stream, speed refers to the rate at which an innovation is diffused throughout a population of organizations (Rogers, 1983). • In the second stream, speed refers to the rate at which a product is transformed from an idea to a marketable entity (Stalk & Hout, • 1990).
  7. 7. Principles of Change 1. Challenging emotions should be greater than positive emotions. 2. Change only happens when each person makes a decision to implement the change. 3. Confidence of getting tough any where. 4. Truth" is more important during periods of change and uncertainty than a’ good news’.
  8. 8. Twelve Principles of Change Contd… 5. The intrinsic rewards of a project are often more important than the material rewards and recognition. 6. The change process must be linked to business and performance goals 7. The change process involves both organizational and personal participation
  9. 9. Model of innovation speed Need for speed + Economic competitiveness + Technological dynamics + Demographic dynamics Strategic orientation for speed + Speed emphasis + Goal clarity + Project support - Project stream breadth +External sourcing Organizational capability for speed +Champion pressure +Leader strength +Member experience +Team representativeness +Project integration +Project orientation Product quality Innovation speed Cost of development Project success ERIC H. KESSLER Pace University ALOK K. CHAKRABARTI New lersey Institute of Technology
  10. 10. Factors affecting market change • Change is inevitable in the life of an organization. • Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out. • Technological changes • Marketing conditions, External • Social changes, factors • Political and legal market changes,
  11. 11. Conti.. • Changes in the managerial personnel • Deficiency in Existing organization: Internal factors
  12. 12. Recent major market changes • INCOME CHANGES • The marketing man is primarily interested in whether people have money to spend, who these people are, how much they have to spend and where he can find them. • They are also interested in the amount of money available for discretionary spending beyond the essentials of food, clothing, shelter, essential medical care, incidental business expenses, and so on.
  13. 13. Conti… • POPULATION SHIFTS • This is a nation which has never hesitated to move on to new frontiers, • shift of people from place to place during war time change the market. • Change in rationing and income sources.
  14. 14. Conti.. • OCCUPATIONAL SHIFTS • There has always been some movement from place to place and from occupation to occupation. • Women and youths of school age have contributed to work.
  15. 15. Conti.. • SAVINGS AND DEFERRED DEMAND. • A very high reservoir of savings has been accumulated by individuals in the form of cash, property, bank deposits, and war savings bonds. • Deferred demand is to make decisions for the six months. i.e upcoming elections, war.
  16. 16. Conti.. • CHANGED LIVING STANDARDS AND BUYING HABITS • The increase in family income has been much greater than the increase in the cost of the basic goods and services to which they have been accustomed. • Families are more conscious about standards, buying greater varieties of rationing, automobiles, dresses, homes, etc
  17. 17. References • Everett R. Smith & Himmel, C. Some Major Recent Market Changes. Journal of Marketing, Vol. 9, No. 3 (Jan., 1945), pp. 225-233. • Eric H. Kessler & Alok K. Chakrabarti, INNOVATION SPEED: A CONCEPTUAL MODEL OF CONTEXT, ANTECEDENTS, AND OUTCOMES. Academy of Management review (1996). Vol. 21, No. 4, 1M3-1191. • www.wikipedia.com • http://www.evancarmichael.com/Small-Business-Consulting/3776/5-External-Forces-That- Affect-Sales-and-Marketing-Success.html • www.slideshare.com

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