Following a benchmarking exercise, the CEO of B company, a food manufacturer, decided that several changes were required in order to maintain competitiveness. These included; -
 A change in structure in order to improve the focus on particular products and customers –
 Tighter control of costs –
 The introduction of a more entrepreneurial culture
Having decided that these changes were necessary, the CEO e-mailed all heads of department indicating that the following few months, the company would move from a functional structure to a divisional structure. Existing functional heads would be interviewed for senior posts in the newly–created divisions in open competition with other applicants. The job specifications for the new divisional heads included requirements that the new heads would drive the changes, including a rapid transition to a more entrepreneurial culture and the implementation of new control mechanisms to contain costs. The CEO delegated the change program implementation into the hands of the head of
human resources and wends off on a two-week overseas business trip asking that he be kept informed of progress. The CEO returned from the business trip to find that no progress had been towards the change requested. The head of human resources informed the CEO that heads of departments were reluctant to discuss the intended changes and that some had even talked about resignation from the company.
a. Describe the key mistakes made by the CEO in the way he went about introducing the proposed changes in B Company
b. Given the situation on the CEO’s return, advise him what he should do in order to ensure the changes can be successfully implemented

Answer rating: 100% (QA)

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