Report: Change Management Strategies for David Jones Company Analysis

This report analyzes the case of David Jones, a company undergoing significant changes in the retail industry. It examines the challenges faced by the CEO, Paul Zahra, including adapting to a new working environment and the rapid shift towards online retail. The report identifies weaknesses such as a lack of market knowledge and patience, and the reliance on traditional business models. It explores intervention strategies like reducing store space, focusing on fashion and beauty, and implementing long-term approaches including new store openings and technological transformation. The report also highlights the importance of vision, mentorship, and resource availability in managing resistance to change and achieving organizational development. The analysis emphasizes the need for adaptability, strategic planning, and embracing technological advancements to remain competitive in the evolving market.

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Management of change and organization development
Student’s name
Institution affiliation

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The main objective of every organization is to succeed in their operations and offer quality
services to their clients. However, for this to be successful, they ought to make significant
changes that will revolutionize the whole organization. There are important activities that can
contribute to effective change in the organization (Worley, 2014). The stated activities can be
categorized into five major groups which include motivating factor, vision factor, political
factors, managing factors and momentum sustaining factors. All of the above are key for success
in any organization.
Areas of weakness
In the case study, areas of weakness can be depicted extracted clearly. It is common knowledge
that before starting any business or initiating any new program, background information is key.
However, when Paul Zahra was named the C.E.O of David Jones company, he immediately
opened an online stores where individuals would shop from their comfort zones. Although it was
a brilliant idea to initiate, he had no knowledge on how the business operated. That’s why he
ended up making huge loses three years down the line. Another weakness that can be identified
is lack of patience and expectation of instant results. Being an experienced CEO with 29 years of
exposure, Zahra failed to show patience in the newly established online platform that’s why after
the business failed to bring in the amount he expected he closed it. Unlike his competitors who
persisted in the business.
Another huge weakness that David Jones were facing is that they were still employing traditional
methods of business models yet the retail business is changing drastically. David jones focused
on traditional customer through discounting and promotion yet they had lost sight of other
growing market that have spending power.

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Challenges in the business
The main challenge Zahra faced in his new working environment is adapting to the new working
environment in an organization. The challenge is there worldwide and many organizations find it
difficult to adapt in a new working environment. For Mr. Zahra working in an environment
where the business was run with apps, iPod’s and smart phones was a huge challenge. Therefore
to success and prosper in the business, online presence was a vital tool to use.
Intervention strategies
Following the growing target market, David jones aims at handling their challenges and adapt to
the new environment. Therefore, David jones aims at embracing the strategic scope of the
smaller stores to accommodate developing consumer sentiments. The first options David jones
opted to take was to reduce space in lesser performing categories such as children ware and
home wares. They opted to venture in better segments such as Fashion and beauty. The need of
change was because of increased taste and demand in the mentioned fields.
Strategies
To rescue the organization, Zahra proposed three long time approach. Although the idea would
see investment of $80 million, the returns would be great and they would elevate the company’s
net worth. He proposed to open 6 small stores in strategic locations. His main intention was to be
targeted with th customer and still offer what they wanted.
He also focused on the company’s core strength. That is maintaining the market position as
leaders in fashion department that support the Australian designers.

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The last strategy Zahra employed was to transform the technologies used within the business and
establish a strong online presence. This provided online shopping that incorporates mobile
devices and utilized the power of social networking. Setting up an online call center was also a
strategy to ensure they link up with their clients.
He ensured that their prices were harmonized so as to maintain their customers loyalty by
offering the best prices for their commodities.
Managing resistance for change
After conducting a critical analysis on David jones organization, it is evident that he is a
true definition of change. Assessing the modern trends in the market, the company had to adopt
to the new system in the market so as to remain competent in business
(Yang, 2014). As the saying goes, “change is inevitable” Jones organization spent close to a
decade to learn the new system. Keeping up with fast moving technology for over 170 years and
still being reliable in the market is not an easy task. It requires dedication and full desire to
embrace change. From the case study, it is obvious that in the ancient times technology was not
very advanced. Therefore, smart phones had not been invented (Yang,2014). However, after
massive transformation, technology was on a new level. David had the mandate to change the
way things were initially done. He had to come up with an appropriate strategy to get the retail
business online and onto mobile devices for easy and convenient accessibility.
Creating vision
Having a vision for any business enterprise is very important. It keeps you on track and
aids in remain focus on the end results. It is evident that when David organization opened an
online gift store in 2000, but never had a vision for his idea. This is can be clearly seen because

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even after incurring hefty loses he closed the shop (Zaman,2011). From this, scenario, many
thing can be deduced. One, lack of organization and long term goals . If the organization had
done its background research before venturing into the online business, he would not have
suffered such huge losses. Secondly, failure to have long term goals for the idea contributed to
failure. This is possible because if he had visualized on the long term investment, perhaps he
wouldn’t have gone down so easily (Zaman,2011). David’s main competitors, Nordstrom’s
enterprise persisted even in the midst of all the turbulence. And eventually their perseverance
paid off handsomely. Later, their success was a motivation to David Jones
Importance of mentor
Having a support team or a source of motivation in any operation is very important. A
mentor will hold and walk with you in your operations (Evans,2010). After identifying David’s
desire and interest, Zahra was determined to transform David into a successful Omni channel
retailer so as to gain his position in the premier department in Australia stores. Therefore, Zahra
supported jones to come up with a strategy where customers would choose and browse and shop
for any commodity they required. After developing the platform, David needed to specify the
method in which the customers will be receiving their orders. Either by courier services or free
delivery within the location (Evans,2010).

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Availability of resources
Finances are the bottom line for any company operations. Availability of adequate
resources are important for the success of any organization/ company (Lawlor, 2010). Mr. David
had in place support individuals who would fund his idea and support it to its attainment. Mr.
Zahra came to David’s rescue. He presented a three pro longed work outline which was accepted
and approved. Therefore, $ 80 million was offered to execute the proposed plan. This was a
major breakthrough in David’s business. Zahra focused mainly on opening up few stalls which
were in the capacity to provide the customer with what they want. It was very mandatory for
David to focus on his core strength and abilities. This was only going to be possible if he was to
maintain his market position as the leader in fashion as a department store that support the
country’s designer.

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