Kindly answer question 4 & 5

Developing a high level plan for change Example on Concrete Fases, discussed in Chapter 2, illustrates malament plans focused on developing new products and markets and problem. The plan for change failed to take account of the need to ma change for the operatives whose job was to manufacture and dispatch in a new production technology, but failed to consider the implicat un patios Case Study 15.1 offers another example of how high level an. e alter a need for change has been recognized Case study 15.1 Planning for change or Bairrada Wines chest will be referred to here is a small med Portuguese winery that uses traditional methods to produce acelet wine from its own grapes for many years demand outstripped supply so was decided to plant more vine it was 2003 bebe the additional output was available for sale but once again all the wine was quickly sold Encouraged by this the Bundet owner acquired more land and planted more vines to increase production, and profits Portugal and no effort had been made to develop export markets. The 25 per cent of the wine that been sold for export had been sold to foreign cur who had sought out the winery. But in 2009. The Portuguese economy was in free fall and local sales were predicted to fall over the long term. So, I WAS decided to begin exhibiting at those wine faits that attracted foreign buyers and to do more travelling to Visit buyers in selected export markets such as Germany and the UK continued to increase until the last quarter of 2008. It was then that the economic downturn began to affect sales However though revenue fell the winery was stil making a profit and the banks were happy to continue lending to Bainada Wines, even though they were closing their doors to many similar businesses This created a false sense of security and it was not until 2009 that the founder/owner and the CEO recognized that the recession was not a temporary downturn and they had to take action if they were to survive and prosper in the new hostile economic climate. Although times were getting harder, the business was continuing to make a modest profit and had few debts, so the founder/owner and the CEO decided that the situation did not call for them to impose any deaconian cuts. They felt that sudden radical change could do serious damage to the winery's culture and the high level of staff commitment that, over the years, had contributed to the success of the business. Their view was that the best way forward was to involve the management team and as many employees as possible in developing a plan that would secure the long-term Success of the business After several meetings of the management team, a plan began to emerge. It was decided that more needed to be done to secure the future market for their wine Over 75 per cent of output was sold within a CWU nud yns of the One Before reading on, view the change developed by the founder Be Wines is the change and for change ideas and in 2 Does the change blanches the main contorting the busine > Does the plante conto the west could affect the outcome of these mora nime work Aman was also given to reducing costs about counted for a high proportion of the annual spend so this was an obvious the company for many years, redundancy was a costly yet but because most employees had been with and letting people go could undermine the cument of those who were retained. However, w months off qualifying for early retirement, sa pobity was to explore her willingness to switch to one senior member of the administrative department Artime contract until then. It was also decided to explore other possibilities for moving staff to part- Savings could also be made if winery and vineyard workers could be persuaded to work more flexibly. It redy accepted practice that the agricultural weather conditions or the time of the year, there was workers would work in the winery when, because of did not work the other way round. Winery workers did Atle or no work in the vineyard. But this arrangement not normally work outside and seasonal workers were employed at harvest and for pruning. It was articipated that the proposal to temporarily relocate some of the winery workers to the vineyards at peak times would be resisted, but it was decided that this aption needed be explored. The management team acknowledged that they would have to communicate omissions 4 Would an alternative approach to outcomes SW'Yes, outline the elements of you alternative plan The proposed changes needed to be presented to the board of directors, so the CEO prepared a paper that outlined the plan and detailed all the contro required approval. The CEO and management considered the required approval a formal step and did not anticipate any problems. It was a huge surprise therefore, when the plan was not approved and the founder/owner, who owned 40 per cent of the shores was released from the role of company president He was outvoted by his children and other family members who together, owned the other to percent of the shares The board, which comprised the other family members, was not happy with the proposed plan. It wanted fast action to restore the previous level of profitability and came up with a new strategy, which Involved laying off five managers and supervisors and replacing them with two new managers who would be a compelling vision of the required changes if they were to secure the support for more flexible working. an approach Dibella (2007) identified as effective when the appeal of a necessary change is low (see Figure 15.2 below). Opportunities for cost savings were also identified within the winery. Elaborating aged wine is a traditional process, and in the winery many of the steps in the process, such as pump over, pressing, run off and racking, involved little mechanization, but it was decided to engage a consultant to investigate possibilities of reducing costs without affecting quality With this exception, it was decided to curtail all capital investment, so plans to construct a new water purification plant and purchase additional land for planting new vineyards were put on hold. The founder/owner and CEO felt that the management team had helped them to develop a good plan for change that involved working on several levers for change simultaneously. tasked to work alongside the CEO to cut costs as quickly as possible The plan for change that had been developed by the management team was not implemented because the founder/owner and the CEO had paid insufficient attention to the other family members who were on the board. The founder/owner was taken completely by surprise when they rejected the plan because, during the good times, they had shown little interest in how the business was managed and had done little to help shape the company's strategy. The foundet/owner also reported that he had never before observed them acting as a cohesive group Source This case is based on contributions from Eva Perez