Friday, 27 December 2013

Organizational Culture

ORGANIZATIONAL CHANGE 2

Problem statement

This project paper will investigate the declining profits at Zetech Technologies.

The report seeks to establish the reason behind the declining sales of Zetech products, and

if any internal issues might be the cause of the poor performance. This paper servers as a

written report detailing the investigation, root cause analysis, solution, implementation, and

evaluation plan regarding this problem.

Company background

Zetech technologies finds itself in a very competitive industry, one that in the recent

times has seen major innovations take place. The mobile phone industry, which due to the

changing dynamics in the world of technology, has changed it to smartphone industry, where

mobile phones are becoming obsolete and inferior to the smartphone. Smartphone industry

is defined by the type of Operating Software a particular smartphone is using. Currently

the most popular Operating Software in the smartphone market include: Google’s android

software that is being used by high ended devices such as Samsung, LG, HTC among others,

Microsoft’s windows software, Apple’s IOs software and the Symbian software, that was

being used on Nokia smartphones until the adopted they window’s software from Microsoft.

Google’s android software appears to be controlling the market, with many phones adopting

it, followed by IOs which is limited to only Apple phones then to Windows which was

launched first on the Nokia platform. Zetech’s greatest challenge would be Samsung who

have emerged as the market giant in the smartphone market, even beating the arch rivals

Apple’s IPhone. Other key market players who possess a lot of challenge for the England

based company would be HTC and LG electronics (Falaki et al, 2010).

Zetech cooperation is a multinational cooperation, information technology

cooperation, headquartered in London, England. The company’s main products are portable

ORGANIZATIONAL CHANGE 3

IT devices and mobile telephones. The company, the company owns a networking company

known as Zetech Solutions and Networks, which provides telecommunications network

services and equipment’s. Zetech has an employee base of 101, 982 employee, and operates

in more than 150 countries. The company was co-founded by Fredrik Idestam and Leo

Mechelin in 1865. The company was established as a ground wood pulp mill in south western

England.

Problem background

In the recent years, Zetech did not only struggle in making improved phones for its

customers, but it struggled to adapt culturally to the changing business environment. Zetech

faced fierce competition from key players in the mobile sector. Asian manufacturers were

becoming more aggressive in the smartphone industry, so did American computer companies.

Zetech on the other hand was busy converting its operating software to open source, and

operating at a huge scale, with an excess of sales of 450 million devices annually. Zetech’s

major problems started when they failed to recognise the competition that was bring fronted

by Google’s android software. Zetech failed to establish a competitor movement for the

emerging Android software. In fact Zetech had the capability of overpowering Android

by the virtue of each participant market share. Zetech’s decline is often cited to Apple’s

entry into the smartphone industry. Apart from fierce competition from Google and Apple

smartphones, the decline in Zetech market share has been greatly attributed to Symbian

open source movement. Zetech leadership were responsible for the execution of Symbian

Open Source initiatives. No support was however given to the initiatives and the foundation,

which means no progress could be observed in this sector, and relatively contributed to the

decline in sales. The effects of this menace has greatly been seen on the overall performance

of Zetech handsets across the world, they have been overtaken by Samsung which controls

major stokes on the international market (Falaki et al, 2010).

ORGANIZATIONAL CHANGE 4

Root Cause Analysis & Results

The cause of this problem can be attributed to four major factors:

• Lack of new ideas

• Stiff competition

• Political

• Inability to recognise the competition

Inability to recognise competition

There is a reason why the once perennial market leader was eliminated to the second

position, and one of those reason can be attributed to either wrong business strategies or

naivety, one that would cost Zetech its market share in major international markets.

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