Organizational change at Dixons Group involved diversifying its business through acquisitions to meet different customer needs in the changing electronics retail market. Dixons pursued a strategy of acquiring Currys, Mastercare, and PC World to expand horizontally across the market while staying within its expertise. This allowed Dixons to benefit from synergies between the brands and develop each business further. Dixons also faced barriers to change from recruiting qualified staff, maintaining proximity to customers, and ensuring sufficient product knowledge among sales staff.
2. Organizational change
Organizational change is about the process of
changing an organization's strategies, processes,
procedures, technologies and culture, as well as
the effect of such changes on the organization.
3. It Can Be…
• In the structure of an organization
• In the structure of an organizational operation
and size of a workforce
• In working hours or practices
• In the way roles are carried out
• In the scope of a role that results in a change
in the working situation, structure, terms and
conditions or environment.
6. Introduction
• The Dixons Group developed a business
strategy which enabled it to achieve its
corporate aim 'to be number one in the
electrical and electronic market-place'.
7. ..Business Diversification
• Diversification is a type of growth strategy where a
company develops new products for existing or new
markets.
• The nature of key decisions made by Dixons within the
process of change as it built a chain designed to meet the
requirements of different groups of customers.
8. Strategic decisions
• Strategic management is the management of an
organization’s resources to achieve its goals and objectives.
• It involves setting objectives, analyzing the competitive
environment, analyzing the internal organization,
evaluating strategies and ensuring that management rolls
out the strategies across the organization.
9. Strategic alternatives
• Differentiation
In cases where competition is stiff because of the proliferation
of similar products, a company can come up with features that
differentiate their products or services from those of rivals.
• Diversification
Diversification is a type of growth strategy where a company
develops new products for existing or new markets.
• Adjacent Businesses
The adjacent businesses strategy involves entry into a niche
where a core business is operating at its full or near-full
potential and generating surplus cash.
10. Opted for a strategy
Its internal strategy involved
further development of
Dixons stores and the creation
and development of The Link.
Dixons’ external acquisitive
strategy led to Currys,
Mastercare and PC World
becoming part of the Group,
where they could also be
further developed.
11. Acquisition
• Acquisition enabled Dixons to take over a large company which
already existed in the electrical marketplace (Currys) and also to
acquire a developing organization with a bright future (PC World).
• The 'group' concept enabled Dixons to develop its business across
a horizontal plane which provided growth an at the same time
enabled it to stay close to its expertise in electronic and electrical
retailing.
• Acquisition also allowed Dixons to benefit from synergy.
12. Meeting the demands of the
customer
In an increasingly complex retail environment it also
became clear that not all customer requirements
and purchasing habits were the same!
13. …Meeting the demands of the
customer
In an industry which is
fast-changing,
organizations need to
know their customers
and their changing
needs and
requirements.
The biggest threat for
any organization is to
fail to adjust to changes
in the market-place.
14. Three Barriers of Dixons
• Coping with change: recruiting and developing
the people needed to adapt to a changing
marketplace and rate of current growth.
• Proximity to customers: a challenge facing
every retail organization - the ability to meet
costumer needs.
• Product knowledge: the product knowledge of
sale staff is the key to increasing market-share.