Texas Chicken: Innovation and Organizational Change Business Report

This report examines the challenges faced by Texas Chicken New Zealand, focusing on the competitive landscape dominated by KFC and other fast-food chains. It identifies the business problem as competition impacting market share, brand value, and profitability. The report proposes an innovative solution: the development of a new product, specifically the "8 Pepper Chicken," designed to attract customers and differentiate the brand. It discusses the application of business knowledge in areas like operations, accounting, sales, human resources, and risk management. The report categorizes the innovation as a non-linear breakthrough and details the strategic level changes needed in structure, technology, culture, and human resources to support the innovation. Finally, it outlines strategies for ensuring ongoing innovation, including employee motivation, fostering a supportive culture, and engaging employees in decision-making. The report concludes by emphasizing the role of leadership in driving change and promoting innovation within the organization.

12/14/2019
RUNNING HEAD: INNOVATION AND ORGANIZATIONAL CHANGE 0
Innovation and Organizational Change
Student’s Details-

INNOVATION AND ORGANIZATIONAL CHANGE 1
Contents
Introduction......................................................................................................................................2
Business Problem or Challenge.......................................................................................................2
Innovative Solution for Business Problem......................................................................................3
Application of Business Knowledge...............................................................................................4
Identification of Type of Change.....................................................................................................5
Strategic Level Changes..................................................................................................................5
Strategies For Ensuring Ongoing Innovation..................................................................................6
Employee Engagement Contributing to Innovation........................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

INNOVATION AND ORGANIZATIONAL CHANGE 2
Introduction
Innovation is regarded as the tendency of bringing a new change that can be in the in the
form of products, services, systems or processes that facilitates the ease of doing the business
and can lead to attainment of more profits (Azar & Ciabuschi, 2017). Here, the business report is
based on the challenge or business problem faced by Texas Chicken New Zealand in terms of
making growth in the future. Texas Chicken serves the best chicken in the world operating from
more than 60 years (Texas Chicken, 2019). It has been evolved with the changes, new looks and
advertising campaigns that has made the company to be a renowned fast food company in the
whole world. The company was started by George W. Church and thereafter the company
opened 100 restaurants in seven states. The company has five branches in New Zealand and has
headquarters in Atlanta Georgia (Texas Chicken, 2019). The business environment of the
company can be understood from the fact that the company is a stable business position because
of the favorable environmental factors and its overall impact on the profitability of the company.
Here, the report will also discuss the innovative solution against the business problem identified.
Business Problem or Challenge
Business problem in an organization is the challenge that the organization in terms of
making profits and being productive in the long run. Here, the business problem with respect to
the Texas Chicken is the competition that the company faces from KFC and other competitors
into the food industry. Majorly, the company has been facing challenge in terms of competition
when KFC who has been big player in chicken market in New Zealand has taken the monopoly
(Mosh, 2019). Moreover, competition can be the major problem for the company in terms of
market share, customers and brand value. Increase in the competition may also lead to cut down
into the prices that can later affect the profits of the company (Bogdanova, Kozel, Ermolina, &
Litvinova, 2016). Additionally, the business faces the challenge in retaining the customers and
also decrease in the brand value and thereby affecting the business performance to a larger
extent.
Apart from this, the company has been facing the challenge of inadequate resources for
meeting the challenge of competition. This is considered to be a business problem wherein the
company is facing the risk potentially from the monopoly of the competitors. Moreover, business

INNOVATION AND ORGANIZATIONAL CHANGE 3
problem in terms of growing competitors can be the problem for the company as the company
needs to make the required changes into the existing product line or the processes which can be
the significant issue for the company when it has less resources to meet the challenges. Further,
the growing performance of the competitors can be the problem for the company in terms of the
profits and the brand reputation which are the main factors for the productiveness of the
company (Mosh, 2019). This business problem for Texas Chicken requires an innovative
solution that can be helpful in the solving the problems and the future development of the
company.
Innovative Solution for Business Problem
Innovative solution is required for the solving of the business problem which can be the
new method, new process or completely new product that can be helpful in the development of
the organization and also helpful in meeting the future challenges faced by the company
(Macharis & Kin, 2017). Here, the innovative solution for the identified business problem is the
development of new product which can be the innovative solution for fighting with the
company’s competitor KFC. Thus, this innovation falls into the category of change in the
product or service wherein the company can make attempts to serve their customers better and
attract the maximum customers through providing a unique value. As a result, this innovative
product can be helpful in beating the competitors and also increases the brand awareness by
which the customers can make the better choice. Also, the new product can help the company to
attain profitable ways to overcome the competitors and make get the maximum customers.
Specifically, Texas Chicken has launched the new product called 8 Pepper Chicken
which is expected to be spiciest chicken to be introduced by the company till date. This kind of
chicken is coated with eight different kind of chilies along with spicy marinate (QSR Media ,
2019). This product has gained enormous popularity and got the attention of customers towards
the brand. This product is expected to be coming up with the different level and is available in all
the locations of New Zealand (Fresh, 2019). This innovated product had gained the big market
share in the food market and also made the renowned reputation and brand value which are the
driving force for the fighting with the competitors of the company. The company has made a
unique offering and has attracted the maximum customers towards the product of the company
which is the value that the company has created towards the core competitors.

INNOVATION AND ORGANIZATIONAL CHANGE 4
The innovative solution in terms of the new product can bring the new customers can be
the innovative and creative solution to be used against the competitors (Du, Yalcinkaya, &
Bstieler, 2016). It can be observed that new product requires the innovative idea and thought
process that enables the company to make the innovations into the product line through prior
market research and techniques. Moreover, Texas chicken has introduced the new product and
expanded the production through the promotions on the social media wherein the company has
provided giveaways that can maintain the global reputation and ultimately enable the company to
meet the challenges and competition from the competitors (Fresh, 2019). Thus, it can be said that
company’s efforts turn out to be the solutions for the business problem. Besides, the company
can introduce the product into the foreign market through expanding internationally that can be
the major stake over the competitors into the food industry and also can be the different idea to
be adopted against the problem. However, this innovative solutions in terms of the product can
be helpful for the solving of the problem for the future development of the company.
Application of Business Knowledge
Further, undertaking of the innovative practice requires the application of business
knowledge for the success of the innovation made. The business knowledge needs to be applied
on the aspect of operations, accounting, sales and marketing, human resources and risk
management. Further, operations of company need to be in such a way that it manufactures the
new product with the reduced cost and offer the quality product for the increased ease of the
customers (Yan, 2018). The knowledge on accounting is required for the recording of the
business transactions for the determination of profits drawn from the new product offering. Also,
sales and marketing department knowledge will help the company to market the product to
increase the awareness of the product through various kinds of promotional tools and techniques
which will make the customers to get the knowledge of the new product.
Further, the company will require the business knowledge about the area of human
resources in which the company needs to employ competent personnel and also ensures the
training of the employees that is needed with the change introduced within the company. Lastly,
business knowledge is required for the risk management which is the most important area that
the company needs to take care. Risk management is concerned with the identification of the
potential risk to be examined from the new product and making the plan for overcoming the risk

INNOVATION AND ORGANIZATIONAL CHANGE 5
identified (Tidd & Bessant, 2018). These five areas are needed to be understood to gain the
business knowledge for the innovative activities.
Identification of Type of Change
The innovation in the case of Texas Chicken falls into the category of non-linear
breakthrough which is the new product development. Breakthroughs are created when there are
obstacles for the future success and the change is required for the sudden increase in the
knowledge and the p-performance (Epstein, 2016). However, the innovation or change made into
the company requires to meet the massive problem of the competition and requires a solution
that can make the business profitable. Hence, the change has been taken place in the form of the
new product falls into the category of non-linear breakthrough in which the company has
attempted to enhance their business knowledge and also made the improvements in the existing
operations to get the desired outcome which is to improve the business performance and solve
the business problem through the innovative solution introduced (Anderson & Ackerman
Anderson, 2016).
Strategic Level Changes
The change identified requires the strategic implementation in terms of the structure,
technology, culture and human resources that can be helpful for attaining the goals of the
company. These strategic level changes are needed to be made for achieving the innovation
through the change in the culture that can motivate the employees of the company to accept and
make participation in the change and innovation activities (Kamasak, Yuvuz, Karagulle, & Agca,
2016). Further, strategic level changes are crucial in the human resources in order to increase the
efficiency of the product through the analysis of the training required for the changes and also
making the recruitments for employing the skilled human resources. In order to achieve the
innovation, the company needs to make the changes into the strategic goals of the company.
Texas Chicken need to make these strategic level changes for achieving the innovation.
Moreover, the new product development at the company can create urgency for the company to
make the changes into the structure of the company and also ensure that the technological
requirements are met that can affect the development of the new product (Fukushima & dos
Santos, 2019).

INNOVATION AND ORGANIZATIONAL CHANGE 6
Strategies for Ensuring Ongoing Innovation
Leadership has a prominent role in driving innovation and change into the organization. It
is important for the leader to make and implement the change so that it can be successful and
gets the support of the employees (Lewis, Ricard, & Klijn, 2018). the leaders are expected to
make the strategies for ensuring ongoing innovation into the organization. The first strategy
should be to motivate the employees in order to increase the performance level and also
motivation through the rewards that can create the tendency of ongoing innovation. Motivation is
the best strategy to be used by the leader who is responsible for the successful implementation of
the change (Afsar & Umrani, 2019). In the company, leader must provide motivational sessions
and also provide motivational engagements that can make the employees satisfied through the
job and also increases the tendency of growing innovation in the company.
The second strategy that leaders can make is the cultivation of the culture that supports
the innovation and also values the beliefs and the religions of the employees so that it decreases
the resistance to change and also makes the employees show a positive attitude towards the
change made. Further, leader can make the culture of the company collaborative and
participative which increases the level of engagement and also increasing the motivation which
can promote the ongoing innovation (Bendell, Sullivan, & Marvel, 2019). Third strategy that the
leader can make is to include the employees into the decision-making process which in turn
make them feel engagements and lead to the generation of innovative idea. However, it can be
noted that the employees feel less hesitant to express their views and ideas when they are
motivated to perform better and often involved into the decision making-process.
Employee Engagement Contributing to Innovation
It can be analyzed that employees are motivated to perform better and also make
engagements into the business practice that can accelerate the rate of innovation and also make
the organization motivated to make the organizational change. The leader is motivated to make
the change when there is need to change the business operations and activities that can make the
business profitable and can solve the specific business problem (Sagnak, 2016). For example, in
the case of Texas Chicken, the responsible leader of the company is motivated to make the
changes into the organization through the recognition of the state of innovation which will make

INNOVATION AND ORGANIZATIONAL CHANGE 7
the business operations better. The leader motivates the employees to not only accept the change
but also make participation into the change activities and make significant contributions into the
organizational productivity and the change. This is coupled with the employee engagement that
creates the urgency to motivate the employees that ultimately creates job satisfaction for the
employees and also motivates them achieve excellent performance in the future (Susha,
Grönlund, & Janssen, 2015). This has been the part of analysis that is needed to employees
satisfied through the improved changes and increases the productivity of the company.
Further, it can be observed that change is led by the leader who has the responsibility to
not only make the changes but also makes efforts for the increasing profits of the company. The
leader has to motivate the employees for innovation that can increase the employee engagement
and can increase the tendency to improve the performance. Moreover, increase the innovation
and organizational change requires engagements with the stakeholders as well which will make
the participation in the decision-making process (Lee, Mazzei, & Kim, 2018). Stakeholders get
affected by the innovational change as they have interest involved with the company which may
be financial and non-financial but can affect the decision making of the company. For example,
when leader of Texas Chicken makes the innovation of a new product significant engagement
with the stakeholders such as employees, customers, suppliers and government is crucial. As a
result, motivation can be the factor in the engagements wherein the employees of the company
are motivated see the innovation in a positive way and also accept the change which ultimately
leads to increased job satisfaction due to the engagements made by the leader within the
company in order to make the company productive (Azar & Ciabuschi, 2017).
Conclusion
To conclude, it can be said that innovation and organizational change is crucial for the
organizations in order to solve a particular problem and provide a unique value to the customers
through the growing innovation. Moreover, whenever, a business challenge is faced, it seeks to
go for the innovative solution that will help the organization to solve the business problem in for
the purpose of being profitable. Here, the report is based on the business problem faced by Texas
Chicken which is the food chain company of New Zealand and along with the innovative
solution of the problems identified. Further, report has identified the type of change undertaken

INNOVATION AND ORGANIZATIONAL CHANGE 8
and the areas where the business knowledge is required for achieving the innovation. Lastly,
certain activities of the leader for driving the change practice is also discussed.

INNOVATION AND ORGANIZATIONAL CHANGE 9
References
Afsar, B., & Umrani, W. (2019). Transformational leadership and innovative work behavior: The
role of motivation to learn, task complexity and innovation climate. European Journal of
Innovation Management.
Anderson, D., & Ackerman Anderson, L. (2016, November 7). How Going for Breakthrough –
and Transformational Change – Raises the Bar on Business Results, Culture and
Leadership. Retrieved December 14, 2019, from Being First:
https://blog.beingfirst.com/going-for-breakthrough-transformational-change-raises-the-
bar-business-results-culture-leadership
Azar, G., & Ciabuschi, F. (2017). Organizational innovation, technological innovation, and
export performance: The effects of innovation radicalness and extensiveness.
International Business Review, 26(2), 324-336.
Bendell, B., Sullivan, D., & Marvel, M. (2019). A Gender‐Aware Study of Self‐Leadership
Strategies among High‐Growth Entrepreneurs. Journal of Small Business Management,
57(1), 110-130.
Bogdanova, S., Kozel, I., Ermolina, L., & Litvinova, T. (2016). Management of small
innovational enterprise under the conditions of global competition: possibilities and
threats. European Research Studies, 19(2), 268.
Du, S., Yalcinkaya, G., & Bstieler, L. (2016). Sustainability, social media driven open
innovation, and new product development performance. Journal of Product Innovation
Management, 33, 55-71.
Epstein, M. (2016). Breakthrough innovation: The critical role of management control systems.
In Performance measurement and management control: Contemporary issues (pp. 3-16).
Emerald Group Publishing Limited.
Fresh. (2019, July 11). Texas Chicken Launches NZ’s Hottest Fried Chicken. Retrieved
December 14, 2019, from Fresh: https://fresh.co.nz/2019/07/11/texas-chicken-launches-
nzs-hottest-fried-chicken/

INNOVATION AND ORGANIZATIONAL CHANGE 10
Fukushima, N., & dos Santos, A. (2019). Service design for innovation: the strategic role of
service design in innovation for manufacturing companies. Designing sustainability for
all, 135.
Kamasak, R., Yuvuz, M., Karagulle, A., & Agca, T. (2016). Importance of strategic flexibility on
the knowledge and innovation relationship: an emerging market study. Procedia-Social
and Behavioral Sciences, 229, 126-132.
Lee, Y., Mazzei, A., & Kim, J. (2018). Looking for motivational routes for employee-generated
innovation: Employees' scouting behavior. Journal of Business Research, 91, 286-294.
Lewis, J., Ricard, L., & Klijn, E. (2018). How innovation drivers, networking and leadership
shape public sector innovation capacity. International Review of Administrative Sciences,
84(2), 288-307.
Macharis, C., & Kin, B. (2017). The 4 A's of sustainable city distribution: Innovative solutions
and challenges ahead. International Journal of Sustainable Transportation, 11(2), 59-71.
Mosh. (2019, January 1). Texas Chicken/ Hits New Zealand. Retrieved December 14, 2019, from
Mosh: https://mosh.co.nz/portfolio/texas-chicken-hits-new-zealand/
QSR Media . (2019, July 17). Texas Chicken New Zealand launches spicy 8 Pepper Chicken.
Retrieved December 14, 2019, from QSR Media: https://qsrmedia.com.au/menu-
innovations/news/texas-chicken-new-zealand-launches-spicy-8-pepper-chicken
Sagnak, M. (2016). Participative leadership and change-oriented organizational citizenship: The
mediating effect of intrinsic motivation. Eurasian Journal of Educational Research,
16(62).
Susha, I., Grönlund, A., & Janssen, M. (2015). Driving factors of service innovation using open
government data: An exploratory study of entrepreneurs in two countries. Information
Polity, 20(1), 19-34.
Texas Chicken. (2019, January 1). About Us. Retrieved December 14, 2019, from Texas
Chicken: https://www.texaschicken.co.nz/About+Us.html

INNOVATION AND ORGANIZATIONAL CHANGE 11
Tidd, J., & Bessant, J. (2018). Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Yan, M. (2018). Improving entrepreneurial knowledge and business innovations by simulation-
based strategic decision support system. Knowledge Management Research & Practice,
16(2), 173-182.