Organizational change is challenging but if effectively managed it is highly beneficial. The case study comprehensively articulates the strategic direction that Black and Decker Company would take in development of different local businesses into international entities. The company is in the business of power tools and home improvements equipment. A description of the dynamics of the business is presented within the case study. It is pertinent to note that a recent acquisition of the Emhart Corporation is considered as one of the key catalysts of profitability of the company. Emhart is a company that deals in architectural hardware such as locks and locksets. Multiple elements must be put into consideration in extending the architectural hardware business across different regions of the world. These aspects include the distribution channels, production and design as well as cost management. Grunewald experience in development of strategic plans is highlighted as another element that will significantly contribute to organizational development after the introduction of the new business unit. However, the challenges that the company has experienced in the past should not be overlooked.
Sources of black and decker’s recent performance improvements
Some of the sources of the company’s recent performance improvements include Mr. Archibald’s strategic direction towards a globalized market view. This is instrumental in enhancing the competitive advantage of the organization at the global market through a distribution channel that ensures just-in-time product delivery. Moreover, the aspect of continuous improvement of the production process has resulted to performance improvement.
Current performance driver
The current performance driver for the organization is globalization and an active new product development strategy. The organization has embarked on an ambitious globalization effort that will ensure that their local business capture market from different regions. The introduction of aggressive new product development triggered the aspect of reverse engineered competitor’s products. At the international front the power tools were doing well unlike other product lines of the organization.
Strengths and weaknesses of Grunewald’s proposal
On the ground representation of the company would enhance the decision making processes across different regions the organization intended to operate from.
The proposal to make the local champions responsible of the leadership role at their business unit level is an ingenious solution to the challenge of employee motivation across diverse backgrounds.
The goals described were not easily achievable in the timelines in the proposal.
The organizational culture of the company will be disregarded with the implementation of the proposal considering the diversity in the different regions.
Implementation of Grunewald proposal requires objective organizational development consultants to guide through the process. This would require a review of the company’s structure, technology as well as the human resources available. A selection of the global operational locations will be instrumental in defining the responsibilities of all the local champions. Strict timelines for all the local units will be established and a monitoring and evaluation system implemented to ensure conformance.
Changes and the success indicators