Strategic Analysis and Change Recommendations for Bamix Ltd: A Report

This report undertakes a comprehensive analysis of organizational change within Bamix Ltd., a Swiss company in the electrical sector. It begins with an overview of the company's background, including its history, products, and organizational structure. The report then employs various assessment tools, such as SWOT, PESTEL, McKinsey 7S framework, and the Balanced Scorecard, to evaluate Bamix's current situation. The SWOT analysis identifies the company's strengths (e.g., independent status, experience) and weaknesses (e.g., limited employees, IT infrastructure). PESTEL analysis examines the external environment, including political, economic, social, and technological factors. The McKinsey 7S framework assesses the company's internal factors, including strategy, systems, and shared values. A change is recommended by the student and a PDCA cycle is adopted to describe the change process. The report concludes with critical analysis of the recommended change, and its potential impact on the company.

ORGANIZATIONAL BEHAVIOUR
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Abstract
In this assignment, the main objective is to propose a change in an organization. Bamix of
Switzerland is chosen for this project. This company is an essential player of electronic sector
of the country. In background section, different information about the company has been
given. This has helped to make an overall assessment about the company. Different
assessment tools like SWOT, PESTEL, Mckinsey 7s framework are used to evaluate the
selected organization. Different strengths and weaknesses are identified and its effect to the
company is described in the analysis section. Moreover, future threats and opportunities are
explained, which can help bamix to gain competitive advantage in the future. The tool of
PESTEL is used to analyze the external environment of the company in which the company
in operating currently. Political and economic environment of the country is analyzed along
with social and technological. Impact of these factors on the company is explained in the
analysis part of this section. In mckinsey 7s framework different hard and soft factors of the
company are evaluated. Hard factors like systems, strategies are explained and in soft factors,
shared values, skills, staff are described. Balance scorecard is another assessment tool that is
used to conduct situational analysis in this assignment. Present situation of the company and
change requirements are analyzed in this section with this tool. PDCA cycle is adopted in this
task to describe the change process. Before and after organizational charts are drawn in this
part to critically analyze the change process of offshoring a department of this company.
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Table of Contents
Introduction................................................................................................................................3
Background of the organization.................................................................................................3
SWOT analysis...........................................................................................................................4
PESTEL......................................................................................................................................5
McKinsey 7s framework............................................................................................................8
Balanced Scorecard..................................................................................................................10
PDCA cycle..............................................................................................................................12
Critical analysis of the recommendation for change................................................................15
Conclusion................................................................................................................................18
Reference list............................................................................................................................19
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Introduction
Organizational change is a process that helps to change organizational strategies, processes,
and technologies. The effect of such change helps a company to gain competitive advantage.
For making a successful change in an organization, it is essential to make a proper analysis of
the current situation. This helps to find the root of a problem for which change is essential.
For accomplishing the requirements of the assignment, the Bamix of Switzerland has been
chosen. Analysis of the company is done through the help of different assessment tools like
SWOT, PESTEL and McKinsey 7s framework. The change has been recommended and
critically analyzed in this assessment that can help the company to gain its goals.
Background of the organization
Bamix Ltd. is a Swiss organization, which is an eminent player of electrical sector. This
company was founded in 1953 and headquarter is located in Mettlen, Switzerland. Products
of Bamix are distributed in more than 40 countries with the help of distributors. The total
number of employees is 55 in this organization (Bamix.com, 2019). This company follows a
flat organizational structure. Flat organizational structure has few or no levels of
management. In a flat organization, employee supervision is less. The product of this
company includes universal stick blenders. This firm assures the highest possible quality and
durability. Besides, several new products are offered by this company includes baby food
container, thermo jug. Moreover, Bamix has also produced premium products range known
as Bamix luxury line, which contains 24-carat gold plated kitchen appliances. In 2017, the
company has faced some changes in marketing process as it has launched promotion
activities on Facebook, Instagram, and Youtube (Bamix.com, 2019). Different video clips
have been used on these sites to promote the company. In 2018, this firm launched three
product lines, which include Bamix BBQ line, Bamix Togo, Baking bamix. They also
maintain cooperative and fair relationships with all suppliers.
Figure 1: Logo of the company
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(Source: Bamix.com, 2019)
SWOT analysis
Strength Weakness
● Independent company
● More than 50 years of experience
● Dedicated and hardworking
employees
● This company have fair relationships
with its stakeholders
● Inappropriate organizational
structure
● Less number of employees
● Inappropriate IT process
Opportunities Threats
● Quality of product and services may
be improved in future
● Revenue generation can be increased
by continuous improvement
● Market competition
● Changed behavior of customers
● Changed needs of employees
Table 1: SWOT analysis
(Source: Created by Author)
From the above-mentioned table, the current status of Bamix can be understood easily and it
is elaborated below,
Strength: Bamix is an independent company it has the ability to make implement change
within the company to improve business performance. They started their journey in 1950 and
since then they have enlarged their product line. As they have more than 50 years of
experience in this field and it is helping them to understand the needs of change that can
ensure continuous improvement. Employees of this company are hardworking and dedicated.
They comply with the organizational policy and provide their best effort to satisfy customers
of Bamix. This organization can get support from their employees in terms of implementing
organizational change. The management of this company is successfully maintaining good
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business communication. As mentioned by Lewis (2019), this aspect helps organizations
maintain a fair relationship with all of their stakeholders.
Weakness: This Company has a limited number of weaknesses. However, they are bound to
work harder to mitigate their weaknesses. This company believes that they have a good
organizational structure. However, it is not appropriate for ensuring continuous business
improvement. As stated by Al-Haddad and Kotnour (2015), employees are the strength of
companies and lack of employees can prevent a company from ensuring growth. They have
only 55 employees at present and it is a remarkable weakness of this company. The products
have high market demand and due to this reason, they need to deal with many customers.
This company must include more potential employees who can support them in continuous
improvement. The IT department of this company is not running successfully due to a lack of
trained employees and this weakness must be removed from the system.
Opportunities: Organizations must review their current business operations to make
necessary changes to improve business performance. Bamix has established a good brand
image through maintaining quality of its products and services. This action may help them to
increase revenue generation in the future. On the other hand, potential employees of this
company can help them to ensure continuous improvement, which can lead them to gain
maximum financial benefits. As Bamix is an independent company, they can make positive
changes to their products and within the company as well to grab more other opportunities.
Threats: The marketplace of this company can be highly competitive if new similar
companies enter into this marketplace. Purchasing behavior of electric kitchen appliances is
changing over the passage of time (Pla-Barber et al. 2019). It is a potential threat to Bamix
and they need to change their business operations accordingly. On the other hand, basic needs
of employees changes over time and Bamix has a small workforce. The management of this
company needs to focus on the changing needs of employees and they need to take initiative
to meet all of their needs.
PESTEL
PESTEL Description
Political ● Highly decentralized government
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● Foreign relations, currency, and communications are controlled
by federal constitution
Economic ● GDP of the country is $635.65 billion
● Rank of the country is 28th in terms of ease of doing business
Social ● People of Switzerland are highly educated.
● Different ethnic groups like German, French form society.
Technological ● Research and development is developed in this country
● E-marketing and e-banking are very active
Environmental ● Biodiversity is massive
● The country is dependent upon hydroelectricity and nuclear
power
Legal ● Intellectual property rights are respected
● The country is open to foreign investment
Table 2: PESTEL
(Source: Created by Author)
Political: Switzerland has a government, which is highly decentralized and formed by the
coalition of four governments. Different affairs like foreign relations, army and taxes are all
covered by the federal constitution. The government of this country is a team that is formed
by seven members, each having the same rights. Government exercise executive power and
federal administration are not related to only one person. As stated by Agrawal et al. (2019),
a stable government of a country helps business to bloom and practice different operations
successfully. The federal assembly elects the president and vice president of the country.
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Economic: This country is considered as one of the most stable economies. GDP of the
country is $635.65 billion. In addition, the unemployment rate in the country is 3.2%.
Switzerland has attracted many foreign investments in recent times. Low corporate taxes,
good infrastructure, and availability of a skilled workforce have helped to attract foreign
investors. The country is good in exports and imports and ranked 28th in terms of ease of
doing business. Inflation rate of the country is -0.4%. This states that Switzerland has a stable
environment for conducting business. Moreover, companies in this country can conduct
operations freely without any barrier. Good infrastructure and low taxes reduce a firm's
operational costs.
Social: People of this country is highly educated and lead a modern lifestyle. The population
consists of people from different ethnic backgrounds like German, French, Italian and others.
While the literacy rate of the country is 99%, life expectancy at birth is 82.3. Different
languages are spoken in this country, which includes German, French and Italian. This can
help a firm to gain different employees from different backgrounds. Thus, a diverse range of
customers can be supported and satisfied. About 43% of the country's people age is between
25 and 54.
Technological: Research and development sector of the country is developed and
government allocates substantial funds behind this sector. People of this country have
knowledge about e-markets and e-banking. Computer users are also increasing in this
country. Developed technology helps a firm to attract desired customers and serve products
outside the country. This country is growing quickly in the manufacturing industry. Besides,
this country has the densest rail network in Europe. This can help this firm to strengthen its
supply chain.
Environmental: A vast portion of the country is covered by woodlands and consists of
massive biodiversity, which makes it a center of tourist attraction. This country stands among
the top 5 countries in environmental performance index. This country depends on renewable
energy sources for generating electricity. Hence, Bamix needs to follow different
environmental policies for production.
Legal: This country is known as a tax haven nation, which can facilitate the company. The
level of corruption is low in Switzerland and due to different anti-corruption measures. The
investment code in this country is transparent, which makes it open to foreign investment
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(Pisani and Ricart, 2016). Hence, this firm can achieve ample opportunities and support to
fulfill business goals. Support from the government and legal system is essential for a
business to grow in the future by implementing business strategies.
McKinsey 7s framework
This model can be used in this assignment for making a detailed internal analysis of Bamix.
Different hard and soft factors can be analyzed through the help of this model properly.
Strategy
Bamix has divided its products into three different product lines. Moreover, they want to
provide the best experience to their customers by changing operating procedures.
Differentiation in product offerings can help them to attract a diverse range of customers
(Bettiol et al. 2019). They offer luxury products such as gold plated kitchen appliances for
attracting premium products.
Supreme customer service is another essential strategy that can help Bamix to gain the
attention of targeted customers. This can be done through collection of information from
market properly and process them to fulfill the needs of target customers.
Systems
Systems refer to the daily activities that employees accomplish for getting their job done.
Bamix has different systems within the organization. This system deals with product
knowledge and development.
● Training: Bamix provides training to its staff extensively regarding development of
product. This helps employees to get knowledge about the latest technologies and
they can respond to market changes quickly. Regular training is provided to the new
employees, which helps them to get accustomed to the working environment at a
faster rate.
● Communication: this is another essential system that is exerted both internally and
externally. Different company policies and programs are conveyed to the staff through
the help of internal communication. As stated by Burke (2017), good internal
communication helps to leverage relationship between management and employees.
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On the other hand, external communication is done with the suppliers in Bamix to
maintain a cooperative relationship with them. Bamix maintains a fair relationship
with all the suppliers through the help of effective communication.
● Product development: This is another essential system that helps the firms to gain
competitive advantage. The development of product is done by maintaining standard
quality for meeting the expectations of target customers and achieving organizational
goals.
Structure
Bamix follows a flat organizational structure, which gives less scope to the management to
supervise their employees. Levels of management are less and staff gets more freedom to
work in their own way. However, Lewis (2019) contradicted that in flat organizational
structure employees generally lack a boss and this can create lots of confusion. Hence, this
can limit the long-term growth opportunities of this firm. A different essential operational
procedure like management of information technology faces barriers due to shortage of staff
and improper organizational structure.
Shared Values
This is another essential soft factor, which states commonly held beliefs and assumptions that
are also called corporate culture. This firm set value for long term relationship and support
exchange of technologies and ideas with suppliers. Bamix is trying to create a corporate
culture that is based on creativity, trust, and cooperation. Moreover, they try to form a work
environment, which helps to elevate the quality of life of employees through hard work. The
authority of the company is friendly with employees that help them to achieve future-oriented
goals.
Styles
In an organization, style needs to be innovative and team-oriented, which is flexible in nature.
Management style in Bamix is cooperative and tries to motivate employees through regular
review and provision of benefit. Managers review performance of employees and provide
essential tips to mitigate gaps in their performance. Hence, employees get boosted perform
well and achieve both their personal and organizational goals (Al-Haddad and Kotnour,
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2015). Moreover, employees in this firm are allowed to make decisions and participate in
essential strategy formulation. This gives them confidence and their loyalty towards this
company increases.
Skills
Employees and management staff are knowledgeable and friendly. Positioning of Bamix
products is in the lines of their partners. They try to fulfill their clients' needs through hard
work and cooperation with all the partners. Moreover, high demand for their products is met
through the help of an excellent network of distributors. They have established a good
network of distributors in different continents like Europe, Asia and Africa (Bamix.com,
2019).
Staff
This is another soft factor that refers to the quality of people. Employees of Bamix perform
essential operations like consumer service, product development, and others. They are
provided with a flexible work environment and other benefits that have lowered employee
turnover rate in this company.
Balanced Scorecard
Strategy: Providing customers the best experience of purchasing
electric kitchen appliances by offshoring the IT department abroad
Objectives Measures Targets Initiatives
Financial Increase
revenue
generation by
satisfying
customers with
the best quality
product and
services
Measure the
profit after
implementing
the change
Increase 10%
revenue in next
1 year
Improve the
information
collecting
technique with
the help of
effective
software
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Customer Communicating
with customers
to understand
their needs and
demands from
Bamix
Measuring the
level of
customer
satisfaction after
the
implementation
of change
Increase the size
of customer
base by 15%
within the next
1 year
Ensure training
programs for
employees to
help them to
collect
information
about target
customer group
Internal
Business
Processes
Developing an
efficient IT
department to
retrieve, process
and use
information
about the target
customers
Assessing the
performance of
the IT
department and
its effect if
consumers and
business
Improve the
process of
gathering and
processing
information of
customers by
10% within the
next 8 months
Planning about
offshoring
abroad for
particularly help
the IT
department to
run
uninterruptedly
Learning and
growth
Focusing on the
provision of
training to
employees to
make them able
to contribute to
the achievement
of business
goals
Measuring the
performance of
trained
employees twice
in 6 months
Improve
performance of
employees by
20% within the
next 6 months
Arranging
training
program and
inviting the best
experts who can
guide existing
workforce
Table 3: Balanced Scorecard
(Source: Created by Author)
Bamix has introduced 3 more new product lines in 2018 (Bamix.com, 2019). At present, they
are bound to deal with a large number of customers. However, the IT department of this
company is not able to collect and process information about the target audience due to lack
of workforce. The above mentioned balanced scorecard can help this company to offshore the
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