Many Multinational Corporations (MNCs) have reinvented themselves through the establishment and implementation of strategic management changes. The changes in the global business environment have contributed to the development and adoption of management strategies. Change management involves reinvention or switching up operations done in an organization (Torppa & Smith, 2011). Different giant companies like Amazon, Nokia, Coca-Cola, and Toyota have reinvented their operations. The ability of companies to reinvent themselves is essential in maintaining their competitive advantages in the changing global business environment.
Analysis and Discussion of Key Findings from Companies
Changing organizational structure helps in reinventing operations and maintaining the company's competitive advantage based on clients' needs. A large number of MNCs operating under different industries have reinvented themselves to maintain their market shares and increase sales both locally and globally (Sabrina, 2017). First, Nokia Company has changed its corporate management to increase market shares. According to Nokia, its shares in July 2012 were below $2 (Sabrina, 2017). Initially, Nokia was the leading supplier of mobile phones before the start of smartphone mania. Apple Inc. emerges and beats Nokia in market shares because of its strong management. The introduction of smartphone mania in the world subjected Nokia Company to serious business losses.
Nokia Company has reinvented itself in the technology industry; therefore, marking a history of more than 150 years of existence (Sabrina, 2017). To ensure effective change management, Nokia has employed a new chief executive officer (CEO) to be in charge of all the company's operations. In the process of implementing change strategies, Nokia's new management has sold the company's struggling phone unit to Microsoft. Nokia had focused to change its operations based on the global business environment to meet the needs of all customers.
Second, Coca-Cola has reinvented itself to maintain its market share and increase sales in all parts of the world. Coca-Cola has been the leading soft-drink company in the world. In the early 1980's Coke's leading rival, Pepsi, aggressively entered into the industry (Sabrina, 2017). To avoid losing some customers to Pepsi, Coca-Cola reinvented its operations. In this case, Coca-Cola listens to its customers to implement effective change management strategies and avoid undesired competition from Pepsi Company. Coca-Cola changed its management to ensure effective performances and various parts of the world (Sabrina, 2017). In this case, Coca-Cola has strived on product diversification portfolio to expand new markets.
Third, Toyota has re-evaluated its operations to improve competitive advantage in the automobile industry. After the Second World War, American car manufacturing companies destroyed Japanese auto markets (Sabrina, 2017). Toyota had to reinvent itself to maintain a competitive pace with rivals. For example, Toyota's managers were convinced by their engineers to apply just-in-time strategy in manufacturing. This manufacturing approach enabled Toyota to save their space, time, and money because supplies were ordered when they are required or use. Also, this strategy enabled Toyota Company to have enough cash for pursuing other business opportunities.
Lastly, Amazon is among the leading technology companies that make a lot of profits both in local and global markets. Jeff Bezos has developed and implemented various change management strategies for maintaining Amazon's competitive advantage in the technology industry. For example, the introduction of e-commerce at Amazon has helped in improving its market share, especially in the sale of books. Jeff Bezos aimed to ensure that his store becomes the largest in the world (Sabrina, 2017). To attain this business objective, Amazon's management started to offer new products, launched its Prime and Instant Video. The change management strategies applied by Amazon has enabled it to increase the market valuation from $200 to $440 in 2016 (Sabrina, 2017).
Recommendations for Sears, JCP, and Kmart
Change management strategies are important for implementation in the companies to avoid losses in their business operations (Torppa & Smith, 2011). Sears Company is required to develop appropriate change management strategies to maintain its competitive advantage and increase sales. To avoid being bankrupt, Sears, JPC, and Kmart should develop approaches that enable them to compete with other companies (Adanur, 2017). First, Sears should participate in Black Friday celebrations to increase their sales. During massive shopping days, Sears can provide discounts to attract many customers; therefore, increasing its sales and profit margins (Parnell, 2013).
Second, Sears, Kmart, and JPC should pick a brand. In this approach, the companies will adopt a department-store brand based on discount retailing. The tried-and-true strategy improves the collaboration between the companies (Arena, 2011). Also, the Sears-Kmart collaboration is based on their extensive real estate holdings; therefore, allowing them to match pricing strategies against competitors like Amazon. A value-focused strategy helps in reducing business losses and avoiding closure of department stores (Parnell, 2013). Lastly, Sears should give their clients what they want. Customers' needs should be prioritized to maintain a competitive advantage. The products and services offered at Sears should meet the needs of all customers. The management is responsible for developing guidelines that help in ensuring that all people receive what they want from Sears.
Having a practical implementation plan is crucial in ensuring change management; therefore, preventing bankruptcy. The implementation plan involves staff training, conduction of surveys, and follow-up programs to determine the efficacy of change management strategies (Arena, 2011).
Adanur, S. (2017). Wellington Sears Handbook of industrial textiles. Routledge. Retrieved from: https://www.taylorfrancis.com/books/9780203733905
Arena, C. (2011). Cause for success: 10 companies that put profit second and came in first. New World Library. Retrieved from: https://books.google.co.ke/books?hl=en&lr=&id=5YOS8GJPUL4C&oi=fnd&pg=PR1&dq=10+Companies+That+Completely+Reinvented+Themselves&ots=Z9erzm9b1e&sig=Jr0vJytCd396o2D9FCu9QDiPV-U&redir_esc=y#v=onepage&q=10%20Companies%20That%20Completely%20Reinvented%20Themselves&f=false
Parnell, J. A. (2013). Strategic management. Sage. Retrieved from: https://books.google.co.ke/books?hl=en&lr=&id=StY5DQAAQBAJ&oi=fnd&pg=PP1&dq=Chapter+11:+Strategy+Execution+Strategic+Change,+Culture,+and+Leadership+By:+John+A.+Parnell&ots=rMK4agJWdU&sig=kU4cwyKm9Nld3ZTtaN8m2ITRB1o&redir_esc=y#v=onepage&q=Chapter%2011%3A%20Strategy%20Execution%20Strategic%20Change%2C%20Culture%2C%20and%20Leadership%20By%3A%20John%20A.%20Parnell&f=false
Sabrina, S. (2017). 5 Case studies about successful change management. Retrieved from: https://www.tinypulse.com/blog/sk-case-studies-successful-change-management
Torppa, C. B., & Smith, K. L. (2011). Organizational change management: A test of the effectiveness of a communication plan. Communication Research Reports, 28(1), 62-73. Retrieved from: https://www.tandfonline.com/doi/abs/10.1080/08824096.2011.541364
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Essay on MNCs Reinventing Through Strategic Change: Amazon, Nokia, Coca-Cola, Toyota. (2023, Apr 09). Retrieved from https://proessays.net/essays/essay-on-mncs-reinventing-through-strategic-change-amazon-nokia-coca-cola-toyota
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