The current business world is faced with a lot of challenges as evident with changing trends in organizational structures, business strategies and in terms of innovation and invention. As the result, the business world has become so competitive to the point that the individual businesses become afraid of facing elimination whenever they do not apply effective strategies. Others have resorted to very efficient business strategies in the competitive business such as product differentiation; this involves offering a unique value, which surpasses that offered by competitors, to the customers. The other strategy that have also been found to be effective is carrying out a business transformation. In the process of undergoing this transformation, businesses have resorted to the use of Kotter model to equip them with the means of achieving a quick transformation that yield effective results as desired. This paper presents a discussion of a company, which underwent through an organizational transformation and also some of the strategies that were derived from the Kotters` teachings. The company that is currently undergoing some structural changes is the ARGO Company.
One of Kotters teachings in a business transformation is to form a powerful and guiding coalition. The Argo Company applies this principle in their business. On September 25, the ARGO founded a subsidiary in Chicago. The ARGO Chicago became a joint venture between the Argo performance and Development and Argo. This change in business structure led to the formation of a management consultancy that generates operational excellence and the general performance. In addition, forming coalitions helps to spread the risks of the business and also leads to a quick expansion of the business; besides, a joint venture also leads to the development of large economies of scale that in the long run gives the business an added advantage.
Argo Company has also employed various technical avenues to constantly change with the changing trends in the business environment. This practice is also in line with Kotters` teachings of institutionalizing the new approaches. As Kotter quotes, “Until new behaviors are rooted in social norms and shared values, they are subject to degradations as soon as the pressure for change is removed" (North, 295). This approach therefore has helped in improving the health of the Argo group. It is also a very effective method in terms of developing new markets and business boundaries and also in ensuring that their business remains healthy at all times. The vision of the company has seen it through several transitional periods of the business practice.
Argo has not only underwent some organizational and strategic changes but also operational and organizational changes while still carrying out their services to their respective clients. As formally founded, the Argo branch in Chicago is fully operational and is mainly supporting the clients from the Northern American clients in the areas of food production, chemicals, rail and also in oil and gas industries. Another decisions that ARGO Company had to make, in relation to Kotters model, was to close their subsidiaries in Lviv and Budapest. The main reason for this change was because the political situation and the market had not developed as the company had planned. This move was taken since there was no point of keeping up with a standalone subsidiary.
Argo Company also changed the geographical location of where it was based from Grinzing to Heilgenstaadter. In this case, Argo Company applies a sense of urgency as a mode for business strategy; thereby, depicting the effectiveness of Kotters model. This comes due to the threat of losing ground to the competing companies and that sense of urgency is critical in enhancing service delivery to its customers. This is an organizational and structural module that has been implemented by the company through motivation of the works thus increasing the morale and attitude to work. This translates to a quick company client response (North, 287).
The Argo company communicates has a clear vision that is communicated to the subsidiary companies and this makes the business to be very effective and efficient. This makes the Argo organization to remain within their targets and goals. This is in line with the Kotters module of communicating vision that also suggests that leadership ought to estimate how much communication of the vision is required.
In conclusion, this competitive world of business is hard to penetrate due to the competing business world. Therefore, it must force the individual businesses to apply very strategic models and avenues that can give the business a breathing space and an opportunity to expand into the greener pastures. Consequently, Kotters` model comes in handy as key for aiding transformation towards highly effective results in terms of implementing business strategies.
North, Klaus, and Gita Kumta. Knowledge Management: Value Creation Through Organizational Learning. , 2014. Internet resource.