Change Management in Myer Holding Ltd.

This report analyzes the change management process of Myer Holding Ltd. in Australia and how the company overcame the problem of share price decline through various interventions and strategies.

Change Management in Myer Holding Ltd.
Report
System04104
5/7/2019

Executive Summary
Change in organisation determines the success or failure in the future. Due to technological
and external environmental changes, every organisation need change management. This
report analyses the change management process of Myer Holding Ltd. in Australia. This
report shows how company faced the problems of share price decline that arise because of
sales decline in the Myer stores and poor management decisions. This report shows how
company can enhance the share value in the market by maximising the sales of the company.
The new CEO of Myer, John King takes various decisions that help the company to easily
reduce the problem from the organisation and increase the sales. To increase the sales and
enhance the share price of the company, John focused on the technological aspects and
increased the sales of product through online channels. Company is still focusing on
enhancing the sale through Omni-channels. The online shopping on Myer mobile app and
website increase the sales and profit both of the organisations that further leaded to increase
in its sale price. However, the type of intervention technique used in this report is mainly
technological intervention topology. This strategy of the company provides a wide range of
choices to the customers and decreases the footprints in the stores. This intervention strategy
of Myer also helps the Myer to decline the footprint of customers in stores, while the sale of
product was continuously increasing.

Background
Myer Holding Ltd. Is the leading fashion and style departmental store group in Australia and
it is operating its business from last 100 years. Myer is known for its branded fashionable
clothes and its product quality. Myra is known for its decision that always favours the
customers. Mayra gives priority to its customer in every decision the company make or in
every action, the company take. Myer operates its business more than 70 retail stores in
Australia and having more than 11,500 members working in the team. Myer is dealing in
various product categories such as Womenswear, Menswear, kids and children wear, beauty
products, electronic goods, toys, and general merchandise etc. The specialities of Myra
Holding are best quality, exclusive brands, and offering best value in returns to its customers.
Introduction
The present report is based on the problem of Myer Holding Ltd. that is related to share price
decline of the company due to decrease in sales of the company. Myer Holding was facing
problem when it shares were decline continuously in 2018 and it was a great worry for the
company. This report shows how Myer holding recover its share price and adopt a change
strategy that improved the share price decline of the country. This report shows the power of
change. It explains how well the CEO and managing director of Myer Holding, John King,
solve this problem with his decision-making power and change management strategy in the
organisation (Myer Holding Ltd., 2018).
Main Body
Intervention
Myer Holding was facing strong decline in its share prices and due to the decline in its share
prices, company is struggling and experiencing lots of losses. To improve the price of shares
and overcome the problem, the CEO and Managing Director of Myer Holding had taken
many decisions and used it in the organisation. Some of the interventions including:
1. New Customer experiences: The Myer Holding Ltd. focuses in customer
experiential retailing and it cares about what customers want and how they will attract
to the stores. To increase the traffic in the Myer Holding stores, Company innovate

some new ideas such as opening of Ice Skating rink on the top floor of its Sydney
CBD store, and opening New Cafes, and Pop-up stores in some Myer stores (Michie,
et. al., 2008). The company is also introduced some dedicated clearance floors which
are now on eight stores. The customers are also rewarded points and bonus on their
regular shopping from Myer holding. This type of intervention can be considered
under the specifically rewards and customer experiential intervention (Balzer, 2018).
2. Adopting customer’s habit and preferences: Myer is known for its customer
priority services. When Myer holding was facing problems related to decline its sales,
the CEO of company himself interacting with customers in the stores and talking with
them about the problems. Company was continuously adopting and evolving the
customers’ preference and their habits. This will increase the company’s sales and it
will automatically help to increase the share price of the company. The interaction of
CEO with customers helped him to develop a clearer focus on what needs to be
focused to improve the customer service aspects.
3. Prioritising Omni-channel Business: The Omni channel business of the company
was one of the profitable segments of Myer holding retail stores. The CEO of the
company decided to increase the investment fund in Omni-channel business. The
Omni-channel business of the company was continuously giving strong growth and
sales that enhance the profit of the organisation. This is the strong reason why
company decided to invest in its Omni-channel business (Frankland, et. al., 2013).
4. Increase the business operation on digital platform: The Company focuses on
digital media for its product sale such as mobile app and through internet on its
websites. The company decided to increase its productivity and efficiency; it should
use digital platforms and promote their brands on social media channels. This strategy
of the company provides a wide range of choices to the customers and decreases the
footprints in the stores. This strategy of the company also helps to decline the
footprint of customers in stores, while the sale of product was continuously
increasing. The customer can now order the products online and get their delivery at
their home. This type of intervention can be considered as technological intervention
topology (Hatzakis, Lycett, Macredie and Martin, 2018).
Need/opportunity
Change management plays a key role in the success of any organisation where technology
and external environmental factors also plays a crucial part in it, because these factors are

continuously changing. To face the environmental and technological challenges any
organisation needs to bring changes in the organisation and stay competitive in the industry.
However, it can also be said that adopting change is not the end of the problems, rather
proper implementation and execution of the change is also required for the success. Myer
Holding also needs to bring change in the organisation to control its share prices and to
increase its sales. However, it has been seen that people in the organisation always resist
change, thus it is essential for an organisation to train and motivate the people to adopt the
new changes in the organisation. In the present case, Myer’s CEO self-involved himself in
the change process and were interacting the customers to know their problems.
Need of change
Myer Holding is facing strong competition in the Australian retail sector. It is very tough for
the company to survive in Australian retail market as it is still trying to cover its market share
and enhance its price of share. To adopt the rapidly changing customer behaviour and
preference it was necessary for the company to bring a strategy that will help in meet these
requirements and need of customers (Geisker, and Tallis, 2018).
(Source: Geisker, and Tallis, 2018)

An increasing competitive environment in Australia is still a major issue for the Myer holding
Ltd. To adopt the new changes and face the competition Myer Holding has to bring changes
in the organisations. Despite being tough trading conditions and decreasing price of shares of
the company, Myer is committed to fulfil the customer needs and provide them best services
in the Australia. This requirement needs such organisational changes that not only increase
the sales of the company rather it also help the company to introduce new customer
experience with offering various rewards and bonus points on regular vising of customers.
This need was strongly identified by the CEO and MD of Myer and he directly
communicated with the customers for the problems. However, this strategy of CEO became
successful and the share price of the company increased after few days with increasing sales.
(Source: Smith, 2015)
Evaluation of Change
The focus of the company on Omni-channel shopping is empowering customers and
providing them new channels for better shopping experience. The focus of the company to
invest more and more money in Omni-channels helps the company to increase its product
demand and it is the necessity of time that company have to focus on these things. To attract
the customers and increase the sales, Myer is operating a loyalty program “MYER one” in
which company has distributed more than five million membership cards. The regular
customers of Myer is receiving regular credits benefit and visiting frequently for purchasing

on Myer stores. Myer is giving $20 as rewards benefits to all its customers on every $1000
purchasing worth (MYER, 2017).
Myer Holding had urgent needs of bringing changes in its business strategy that help the
company to increase its share prices. However, investing in Omni-channel sale was a good
idea adopted by the company that helps the company to increase its sale. However, the
commitment of company towards its customers and community also helps the company to
resolve the situation. The strong background and philanthropy of the company and its brand
image also helps it to raise its sales volume. However, company also urged people to
purchase the products in round up with nearest value of dollars. It was also a major source of
funding for the company that helps the company to raise funds for different programs and
strategy to promote sales (Gandiya, 2018).
Diagnosis
Diagnostic model helps to understand the problem of Myer holdings. It is the process of
research about the problem that our current organisation is facing. It helps in providing quick
and accurate information about the problem and helps to define the future direction that can
helps to resolve the problem. The seven diagnostic models is the best way to diagnose the
problem of Myer Holding. This method of diagnosis helps to understand the interventions of
Myer holdings and it is possible to evaluate and improve the performance as well (MYER,
2017). The online marketing strategy and provide rewards and benefits to customers will help
the company to increase its sale that further improve it share prices as well. The 7s of the
Diagnosis model can be apply as follow:
1. Structure: The Company was facing strong decline its share prices from 2017 and it
was decline from $3.5 per share to $0.74 per share in 2017. The continuous fall in
share prices was a terrible problem for the company. After that, Mr Bracken resigned
from his post of CEO who also held the role of chief merchandise officer and
customer officer (Scharitzer and Korunka, 2010).
2. System: Myer focus on reducing the footprints on its retail shop centres and attract
people for purchasing products online. It provides more convenience to the people
who do not want to visit in the shopping centre of Myer. Myer provide them products
on their doorstep. It enhances the sale of its products and reduces the need of human
capital. However, the overall cost of the company was decreased with this idea. Myer
attract customers through online advertising and increases their attraction towards

retail shops by organising Ice skating rink on the top floor of Sydney shops. It was
more effective in attracting people in Myer shops. However, introducing new idea like
opening pop up stores, opening of cafes in the stores attracting customer and provide
them based customer experience was the main idea of Myer holdings (Mitchell,
2018).
3. Staff: The numbers of staff were reduced after implementing these change strategy in
the organisation. However, the overall cost of operation is also decreased because of
less use of human capital and people engagement in the retail shops. However, the
online sales of Myer group are increasing every day after implementation of such
innovative ideas of its CEO. People are doing more purchasing than physical stores
and get many reward and benefits as well.
4. Style: In the above change management process, it has been seen that the CEO of the
company himself was spending time with customers and try to understand their
problems. It has been seen that CEO of the company was trying to practically
understanding the problems. However, the decision of company to invest more in
Omni-channel investment is also a crucial phase of this change because Omni channel
helps in continuous growth and provide profit to the company (Zutshi, Creed,
Holmes, and Brain, 2016).
5. Skills: The Company needs to implement its online market strategy and it requires
both technical and managerial skills. Apart from this, implementing the idea of online
marketing needs innovative decision-making process. The people who involved in the
decision making process are normally related to top management. However, failure of
ex-CEO of the company was another concern for Myer holdings. Skills of leader and
employees are so crucial in implementing change in any organisation because the
success of change management process totally depends on how people adopt the
changes (Lippke and Ziegelmann, 2008).
6. Shared value: The Myer group always gives first priority to its customers and its
CEO launched a plan for promoting the customers in the organisation. The CEO John
King said that he would put customer on the first priority on every action of the
company. The company’s vision is to become world’s best class retail stores.
Planning and Implementation
The planning and implementation of the change management process is the crucial part in
change management or any organisational change (Turner, 2018). The effectiveness of

change depends on how organisations implements and execute the change management plan.
To implement the change in the organisation Myer Holding considers several strategies and
process that helps the company to properly implements the change process in the organisation
(Jenner, 2015).
Provide Customer Lead Offers: Myer holding is a customer oriented company and it cares the
need of its customer. In customer lead offers strategy; Myer used various optimisation
techniques for change management process such as cluster optimisation technique, category
optimisation, brand optimisation, localisation of products, and strong supplier collaboration.
This is also explained in its business model and clearly elaborated how company provide
various offers and discount to its customer to increase its sale (Harris, 2018).
Focus on providing wonderful experiences to the customers: The change in the
organisation directed towards the customer experience. It has been considered during change
management implementation and process plan that customer will experience superb shopping
experiences. The sizes of stores were enlarged and customers were provided best shopping
experience such as cafes, Ice-skating etc. However, main focus of the company is to provide
online facilities and superb online experience via Omni channels as well (Jermier and Forbes,
2011).

(Source: Jenner, 2015)
Omni-Channel Shopping: The Myer Holdings normally focuses on the online segments and
customers. The main motive of the company was to increase investment in Omni-Channel
and provide excellent facilities and products to the customers in cheap prices. This was the
main focus of the company to provide Omni-channel experience to its every customer.
However, promoting online sales strategy of the company improved the sale decline of the
company and it also improves the share price in the market. The focus of the company is also
on right infrastructure and operations because it is essential for the success of any change in
the organisation (Tohidi, 2011).
Productivity stop-change: The Company provides best stork network optimisation to the
customers in its online networking and storage facilities. Organisation provides instant
information to the customers and accepts their purchase order. This change in the sales
process provides lots of immediate information to the customers that further enhance their

trust in the Myer Holdings. However, implementing change in the stores is also a crucial
thing and it has been observed that Myra Holdings has also changed the interior of stores for
providing larger place for the customers. The Myer believes that customer wants best service
in the store and it is the responsibility of the company to provide them best services to the
customers under one roof. The Store implemented new workforce management tool in all
stores. The focus of the company is to provide space to its customers because the increasing
number of customers is also a major challenge for the company because the Myer has limited
resources to handle a large number of customers (Free, wt. al., 2013).
Recommendations
The recommendations for the Myer Holding are as follow:
1. They should focus on more convenient online sale practices. Technology is changing
every day and competition is also rising in the market. To face the strong competition
in the retail market, Myer should continuously focus on innovative ideas and
technological development.
2. The company should also focus on providing training to its store managers and people
who are working on stores, because if they will manage people in proper way, the half
of the problem can easily be solved.
3. The focus of the company on Omni-channels is increasing day by day and the
company completely depends for its profit and growth on this factor. The company
should also focus on other strategy to face the competition and challenge in the
market.
Concussion
From the above conclusion, it can be said that change in any organisation is necessary and the
way Myer handled its problem of sales decline and decline in its share prices, is excellent.
The focus of the company is totally on customer experience and company gives full priority
to the customers. However, bringing change in the form of technological innovation and
attracting customer through online channels was a successful organisational change of the
Myer. However, the small space in the stores is still a problem on the Myer stores. However,
the plan of reducing footprints on stores was successful of Myer with increasing online
customers.

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