HRM
Change Management - Perrier Case Study
In any organization there is a need for change, otherwise organizations will stagnate and fail to adapt to changing environments. There are many drivers to change; changes in the competitive environment that result from the lowering of barriers to trade, such as increasing use of technology to facilitate trade, especially over international boarders and transportation technology increasing the level of competition faced in market (Salawu and Agboola, 2011, p235). Increasing levels of competition may be a significant driver for incumbent firm to develop and maintain competitive advantage, which may drive the need for innovation to compete. This was seen with Perrier and the introduction of Badiot Rouge. Where competition is coming in from offshore locations there is also the potential for the firm to face price pressures, with many offshore producers having the potential benefit of comparative advantage and able to offer lower prices (Nellis and Parker, 2006, p139).
The general economy may also be seen as a driver for change; for example in a recession there will be decreasing sales due to lowering aggregate demand may reduce the benefits of the economies of scope and scale, and with lower sales will result in lower profits and possible losses, so firms need to find ways to survive by finding ways of cutting costs or increasing efficiency.
Consumer fashions and trends will also impact on a business and impact in the way consumers choose to buy, or not to buy products. This can be seen easily in many markets, the fashion industry is one f the most transparent examples, but it is true all almost all sectors. Perrier found they benefited from fashions and trends during the 1980's when bottled water became fashionable. Firms need to look at the markets and assess the needs of consumers so they can adapt their products and marketing to meet the emerging demands (Hooley et al., 2007, p277).
Question 2
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