Accelerated speed in market changes affects organization
Accelerated speed in market
changes affects organization
University of The Punjab, Lahore ,
• “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 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
Roberto C. Goizueta
Former Chairman and CEO
“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
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.”
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,
Principles of Change
1. Challenging emotions should be greater than
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’.
Twelve Principles of Change
5. The intrinsic rewards of a project are often more
important than the material rewards and
6. The change process must be linked to business
and performance goals
7. The change process involves both organizational
and personal participation
Model of innovation speed
Strategic orientation for
+ Speed emphasis
+ Goal clarity
+ Project support
- Project stream breadth
Organizational capability for
ERIC H. KESSLER
ALOK K. CHAKRABARTI
New lersey Institute of Technology
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,
• Social changes,
• Political and legal market changes,
• Changes in the managerial personnel
• Deficiency in Existing organization:
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
• 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.
• 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.
• OCCUPATIONAL SHIFTS
• There has always been some movement from
place to place and from occupation to
• Women and youths of school age have
contributed to work.
• 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
• Deferred demand is to make decisions for the
six months. i.e upcoming elections, war.
• CHANGED LIVING STANDARDS AND BUYING
• 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
• Families are more conscious about standards,
buying greater varieties of rationing,
automobiles, dresses, homes, etc
• 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.