Reference no: EM13847279

question 1

Class, you will be the "change agents" for this change. Your professor will be the CEO, issuing dictates, orders, suggestions, support, ideas, and thoughts. However, you, as class members, will need to take each new piece of information and determine how it will fit into your plans for change, as change agents. Keep an eye on the new information as well as how your colleagues are addressing it. Innovation, creativity, and level headedness is key to making this week's solution succeed. Good luck!

Here's the change: BubbleBath Inc. is a privately owned company with approximately 2,000 employees whose make up is primarily line workers. Management makes up about 20% of the company, with the remaining 1,600 people working to produce the line of bathtubs, hot tubs/spas, and designer fixtures for which the company has become famous. The company started 10 years ago working out of the initial founder's garage, and quickly increased in size when Jacuzzis became a standard fixture in many middle-class remodels and new constructions. Due to excellent marketing strategies, BubbleBath Inc. has not experienced a downturn in sales despite the recent economic downturn in construction. Instead, they have parlayed the middle-class flight from tourism to encourage the "staycation" and the upgrade of the home as the new spa of the 21st Century. Profits last year were up 15% and everyone is feeling cautiously optimistic. Nevertheless, the CEO is concerned with market analysis reports that despite the staycation mentality, growth over the next two years is predicted to be stagnant to declining. Last week, as per the original exit strategy of the founding investors, the company will be restructured into a limited partnership of three people from an incorporation model of 15 shareholders. 12 of the shareholders will be paid a return of 8% on their investment, and the remaining 3 shareholders will form a limited partnership. As a result, the CEO has received word from the new partners that they want to change the operations model as follows, effective in three months:

A. Discontinue the line of designer fixtures and focus solely on hot tubs and bathtubs. (This will mean eliminating two lines of 30 employees each.)

B. Move the entire operation from the city of Atlanta, GA to a town 25 miles south of Atlanta called McDonough, where all 3 of the partners reside. No relocation packages will be offered, but those employees who choose to "retire" at the time of the move will receive a 4 weeks' severance package. A new building which was originally intended to be a "HottubsRUs" factory is sitting vacant and the partners bought it for a steal. They already have a buyer for the old factory in Atlanta.

C. For the first time, include a sales office right in the new production building where a showcase with sales staff will be located. Along with supplying retail stores, the company will now also sell directly, both in the office and online. Initially, 5 sales people and one sales manager will be hired.

Your CEO has asked you, the managers, to come up with a change plan using Kotter's 8-step model. What are the first things that you will do in order to create a plan for change which will maximize efficiencies, utilize current processes, and ensure that profits continue? Who wants to start?

Question 2 ( response the answer you agree or disagree because....)

There is never an easy way to handle acquisitions, eliminating positions, moving across the state, or for that matter changing company direction. I would handle this transition by applying Kotter's 8 step in the following;

1. Create sense of urgency: Inform staff of the changes right away and eliminate room for speculation. Employees appreciate when management are transparent and keep them in the loop. Because 30 lines will be eliminated, I would offer new positions in other areas of the plant and employees who chose to leave, I would offer a reference letter and flexible time for interviews.

2.Form a powerful coalition:get employees on board by focusing on all the positive aspects of the transition. I would encourage them to move for possible promotions and better pay in the future as the company progresses.

3.Create a vision for change

Promote the company's new direction and the possibilities for growth. If employees can see themselves with the company long term and possibly moving up the latter, they may consider moving.

4. Communicate the vision

Explain to employees the company's desire for growth and expansion leading to company to be more profitable benefiting both the company and the employee.

5. Empower action

Employees can be part of the planning and implementation for the new development and move.

6. Create quick wins

Relocating will allow employees to earn more money and have more job security.

7.Build on the change

Change is good as long as it is for the best interest of the company and the employees (more growth opportunities)

8.Make it stick

Have routine meeting to address concerns and to motivate employees towards the new changes.