Change Management in Lakeland Wonders

This report discusses the change management procedures taken by Cheryl Hailstorm in Lakeland Wonders. It analyzes the strengths and weaknesses of the organization in organizational change and provides recommendations.

Running head: CHANGE MANAGEMENT
Change Management
Name of the Student
Name of the University

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Executive Summary
This report has been based on the change management procedures done by Cheryl Hailstorm in
the Lakeland Wonders. The change management procedures taken by Cheryl Hailstorm have
been discussed in the report. Comparison of the change management theories and procedures
taken by her has been done in the report. Strengths and weaknesses of the Lakeland Wonders in
organizational change has been discussed in the report. The analysis has been done ion the bass
of culture, contextual and stakeholders of the organization. Proper recommendation to changes
made by Cheryl Hailstorm have been provided in the report.

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Table of Contents
1. An overview of organizational situation......................................................................................4
Report Objective and scope:........................................................................................................4
Scope:..........................................................................................................................................4
2.1 Key concepts about the changing:.............................................................................................5
Lippitt’s Phase of change theory:................................................................................................5
Social Cognitive Theory:.............................................................................................................6
2.2 Organizational change program of Lakeland Wonders by Cheryl to other stakeholders:.........6
Strength and Weakness of the Lakeland Wonders in organizational change:.............................7
Analysis/evaluation of the change programme communicated by Cheryl..................................8
Contextual analysis:.....................................................................................................................8
Cultural analysis:.......................................................................................................................10
Stakeholder analysis:.................................................................................................................11
2.3 Analysis of theories.................................................................................................................12
Recommendation...........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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1. An overview of organizational situation.
Kids & Company is famous toy company, which produces toys for the kids. The main
customer base of this company is in the high market. Being famous for providing world class
products, the price of the toys and other products in Kids & company is apparently high.
However, CEO of this company Cheryl Hailstrom, wants to capture the mid market in the toy
industry. In order to do this the contract of Bull’s Eye store is important (Carnall, 2018). It has
been found out that the price Bull’s Eye Store is giving for the contract is low compared to the
production cost of Kids & Company. In this situation, Cheryl Hailstorm is trying to convince the
other members of the management and production board to make this contract possible.
Report Objective and scope:
The main objective of this report is to analyze the changes in the management process
and the functionality of the organization. Generally, the consumer base of the company is fixed.
In this case, Kids & Company, only produces hi-end products which are costly (Hayes, 2018). In
order to cover more market space, this organization is planning to enter into the mid market
section of the toy industry. This will help them to provide standard toys to the consumers with
affordable price. Through this decision or step, the organizational change takes place in Kids &
Company. This change will lead to the changes in the production of the toys and the distribution
of the toys.
Scope:
The scope for the discussion regarding the changes in the management for the
organization can be analyzed through discussion that possible changes needed to be done in the

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organization to enter into the mid market. In this context, the CEO of the organization has
proposed some of the steps, that will help in the production line for the mid market products.
2.1 Key concepts about the changing:
The changing in the organizational management is important in case, if there is a need for
disruption in the organization. This will include the change in the business process and the
functioning (Cameron & Green, 2015). In this case, the CEO of the company wants to change
the system of the business process through entering into the mid-market by selling standard
products in relevant price.
The changes in the process will include the modification or improvisation of the business
objective for the organization. This will affect the manufacturing and production of the
organization. The key concept of changing is that the changes will take place if only the changes
are necessary in the organization and all the stakeholders in the organization are ready to accept
the change. In order to implement the change effectively, change theories can be applicable.
Lippitt’s Phase of change theory:
This is also known as, seven step change theory (Doppelt, 2017). This theory is focused on the
change in the agent rather than analysis of the change. These seven steps are-
 Identification of the problem
 Analysis for the motivation and the capacity for the change.
 Identification of the resources for the change.
 Choosing of the areas and objects those can be changed in the process.
 Understanding the objective for the change.

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 Maintaining the change.
 Making the change as the part of the company or organization.
Social Cognitive Theory:
Social cognitive theory, states that the change in the organization is influenced by the
environmental influences, behavior attributes and personal factors. Social learning and the need
for the development of the skill is important in the social cognitive theory (Hornstein, 2015). The
change in the process can be implemented in the organization through providing the training to
the employees in order to adopt the required change. In this context, certain processes are needed
to be taken care of- attentional process, retention process, reproduction process and
reinforcement process.
2.2 Organizational change program of Lakeland Wonders by Cheryl to other
stakeholders:
Lakeland Wonders is a toy producing company which is famous for manufacturing toys
of high end quality. The wooden toys manufactured by this company are high priced. However,
the CEO of the company has proposed a plan to capture the mid market of the toys by signing
the Bull’s contract. In order to capture in idea, CEO has proposed plan to the senior vice
president of the operations and the designers and the production team (Lozano, Nummert &
Ceulemans, 2016). The stakeholders of the company are then consumers and the other internal
members of the organization who are involved in the daily functioning and production of the
toys. The CEO of the organization has proposed a plan that will make the organization to provide
wooden toys of standard quality in a reasonable price.

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In order to do this, CEO of the company has proposed another offshore manufacturing
process in the organization. This production unit will be responsible of manufacturing toys is
relatively low prices (Cummings, Bridgman & Brown, 2016). Apart from that outsourcing can be
done through buying of the private labels from China, Indonesia and Philippines. All these steps
will help the Lakeland Wonders to take the contract of Bull’s Eye.
Strength and Weakness of the Lakeland Wonders in organizational change:
In order to carry on the organizational change in the business process, the strength and
the weakness of the Lakeland Wonders are needed to be evaluated.
Strength of Lakeland Wonders:
The strength of Lakeland Wonders is the string organizational support in the management
system. The CEO of this organization Cheryl Hailstrom is experienced enough to handle the
business sand the growth of the organization. Apart from that her vision and the mission
regarding the Lakeland is progressive (Verhulst & Lambrechts, 2015). Apart from that the
company has the strong reputation in the market for producing the toys. Apart from that the
tagline of this organization is “Handcrafted with Pride in USA”. The products of this
organization reflects the tag line.
The operation and the logistic team of Lakeland is very efficient is designing and packaging of
the toys. The market of the wooden toy is developing in a steady way and this organization has
the scope to do well in the industry.
Weakness of Lakeland Wonders:

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The main weakness of the Lake Wonders is that there is a difference in the opinion of
CEO of this organization and managers and team members of the other department involved in
the manufacturing process. The CEO of the company, wants the growth of the business and
selling of the products through greater market coverage (Samuel, Found & Williams, 2015). In
order to do this, getting the contract of Bull’s Eye is needed for the organization. However, the
price of this contract is not enough for Lakeland. In this situation, Lakeland CEO is proposing to
outsource the manufacturing unit so that Lakeland can provide the products to Bull’s Eye at
reasonable price meeting all the requirements of the contract. On the other hand, the senior vice
president of operations are disagreeing with the decision of CEO as, according to him quick steps
regarding this is not possible to be taken by Lakeland (Ceulemans, Lozano & Alonso-Almeida,
2015). The basic conflicts of the opinion between the CEO of Lakeland and other internal
stakeholders of the organization is the weakness for Lakeland.
Analysis/evaluation of the change programme communicated by Cheryl
Contextual analysis:
Organizational situation in Lakeland Wonders:
The organizational situation in the Lakeland Wonders needs to go through the change in order to
expand the business. Initially, the Lakeland Wonders produces hi-end wooden toys. The prices of
the toys are high. However, all the products of the Lakeland Wonders are maintaining the quality
and this factor enhances the good will of the Lakeland Wonders (Altamony, et al., 2016). The
change is needed in this situation in order to capture the higher industry and market expose.
Changes introduced by Cheryl:

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Cheryl, the CEO of the organization, has proposed some of the steps for the changes in the
organization. One of the steps is to enter the mid-market selling through agreeing with the
contract with Bull’s Eye (Steigenberger, 2015). However, according to the other stakeholders of
the company, this changes are not possible as it will not up to the standard of Lakeland Wonders.
Apart from that in order to sell the standard toys in low price, the organization has to set up a
new factory.
Reason for implementing the change:
The reason for the implementation of the change is that the expansion of the organization
is needed to be taken care of. Apart from that Lakeland Wonders wants to reach to the more
customers through producing standard toys with reasonable price.
Approaches and theories those can be linked with the changes:
There are several theories regarding the change in the management. The application and the
selection of the theory for the organization are dependent on the type of the organization and its
functioning. In the situation of the Lakeland Wonders, following steps are needed to be followed
to implement the changes in the organization:
 Identification of the need for change: Lakeland Wonders tries to capture higher market
expose. In order to do this the organization is keen to enter in the mid-market of the toy
industry (Lines et al., 2015).
 Identification of the scope for change: From the analysis and the evaluation it has been
found out that the market of the wooden toys is growing. In this situation standard quality
of wooden toys with reasonable price will help Lakeland Wonders to gain higher
revenue.

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 Decision making regarding the implementation of the change: The decision making
process regarding the implementation of the change has to be taken by the management.
In this case, it has been seen that all the stakeholders involved in the project are not
providing the same opinion (Donnelly & Kirk, 2015). In this situation the brainstorming
on the different ideas regarding the change can be done.
 Maintaining the implemented change in the organization: In order to implement the
change in the organization, proper infrastructure is needed to be developed. The use of
the emerging a digital technology can be used in this case (Ceptureanu, 2015). For the
situation of Lakeland Wonders, setting up new factories can be beneficial for producing
low range standard toys with reasonable price.
Change in the organizational management:
According to Buick et al., (2015) change in the organization is important for managing
the business and expansion of the organization. In this context, the changes are needed to be
identified in a proper way. The changes in the internal business process will make the
organization more innovative and this innovation will help the organization to attract the
consumer base.
According to Hamraz et al., (2015) the organizational change is important for the
expansion of the business and existence of the organization. However, the selection of the areas
for change is important for the getting the desired result for change. In this context the
organizational objective is needed to be clear at first step. In order to make the change permanent
for the organization, proper measures like technical advancement and proper monitoring are
needed to be taken.

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Cultural analysis:
Lakeland Wonders is a famous toy manufacturing company which produces hi-end toys.
The organization has the reputation of producing quality toys. The current number of employees
in the organization is 5000. The organization has one manufacturing factory at Minnesota.
Currently, the organization wants to expand the business through entering the mid-market
(Ceulemans, Lozano & Alonso-Almeida, 2015).
Stakeholder analysis:
Name of
Stakeholders
Role Responsibility Impact
Cheryl Hailstorm CEO Decision making that
will help Lakeland in
the business growth.
The business
overview will be
dependent on the
decision of the CEO
Mark Dawosn Senior Vice
president, operations.
The operations and
the functionality of
the organization are
managed by Mark
Dawson.
The logistic and the
supply chain can run
properly with the
proper functioning of
the organization,.
Elaine Spenser Marketing Making the
marketing plan for
reaching to the large
numbers of
With the proper
marketing plan, the
sales of the products
of Lakeland Wonders

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consumers. can be enhanced.
Ned Honester CFO Chief financial
officer is responsible
for monitoring the
cash flow in the
organization.
The cost of the
production and the
management of the
finance can be done
properly.
Jerry Silistro Sales Take decisions for
enhancing the sales.
The sales can be
enhanced.
Consumers Buyers Buys the products of
Lakeland wonders.
Responsible for
enhancing the sales
of the toys for
Lakeland.
2.3 Analysis of theories
An adjustment of Lewin's hypothesis, Lippitt distinguishes seven periods of arranged
change: (1) diagnosing the issue in an entire shape, (2) evaluating framework inspiration and
assets, (3) distinguishing the change operator and evaluating the change operator's inspiration
and assets, (4) recognizing dynamic targets, frequently including a pilot test, (5) picking the
proper job for the change specialist and outlining the hierarchy of leadership, (6) diffusing and
keeping up the change, and (7) ending the helping relationship of the change specialist.
Advantageous commitments to a working change layout from Lippitt's model incorporate
including those influenced by the change, focusing on arranging destinations and time spans,
thinking about a pilot occasion, establishing mechanisms for criticism, and securing the change

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through formal frameworks, for example, strategies. Lippitt's hypothesis, close by a law based
style of administration, is a mainstream and compelling mix. Stage 1 is worried about diagnosing
the issue and is the point at which a requirement for change has been taken note. Bennett (2013)
suggests undertaking an exhaustive writing survey at this pOint, or appointing this assignment to
somebody with great basic examination abilities, to survey all accessible information and to
utilize the discoveries to support the change specialist's position.
Mental speculations of human advancement center intensely around the development of
abilities, particularly amid the prior developmental years when changes happen quickly.
However, the key issue of what decides human life ways has gotten little consideration. Learning
of the dimension to which different capacities have created does not, in itself, let us know much
about the course close to home lives will take. At the point when human advancement is seen
from a life expectancy viewpoint, the persuasive determinants incorporate a differed progression
of life occasions that shift in their capacity to influence the bearing lives take. A significant
number of these determinants incorporate age-reviewed social impacts that are given by custom
inside familial, instructive, also, other institutional frameworks. Some include natural conditions
that activity impact over individual's fates. Others are unpredicatable events in the physical
condition. Still others include unpredictable life occasions, for example, profession changes,
separate, relocation, mishaps, and disease. Social and mechanical changes modify, regularly
extensively, the sorts of life occasions that end up standard in the general public. Without a
doubt, a considerable lot of the real changes in social and monetary life are introduced by
advancements of innovation.
Recommendation
Following are the recommendations:

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 It can be recommended that Cheryl Hailstrom has been looking for expansion of the
business of Lakeland. However, she wants to make few changes in the business
organization that might be not acceptable by other stakeholders of the company.
 It is recommended that she needs to make slight changes in her change management
strategies so that all stakeholders might get involved in her thinking.
 Cheryl Hailstrom has not able to create the urgency of change in the company. Due to
this most of the stakeholders are not understanding the motive behind the change in the
company.
 It is recommended that she needs to create and convey urgency of change in the
company. The change management strategies implied in the Lakeland has been focused
on offshore manufacturing of toys for expanding the market of company.
Conclusion
In this circumstance, Lakeland CEO is proposing to redistribute the assembling unit with
the goal that Lakeland can give the items to Bull's Eye at sensible value meeting every one of the
necessities of the agreement. Then again, the senior VP of activities are contradicting the choice
of CEO as, as per him brisk advances in regards to this is beyond the realm of imagination to
expect to be taken by Lakeland. The fundamental clashes of the feeling between the CEO of
Lakeland and other inside partners of the association is the soft spot for Lakeland.

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