Evaluating and implementing change

Assignment Help Operation Management

Reference no: EM132245155

Evaluating and Implementing Change

Implementing change in any organization can be a daunting task. As we have discussed in class, change is inevitable, and organizations need to embrace a culture of change for long term survival. However not all changes are worthwhile. Blindly implementing change can result in sub-optimal performance and in some cases it can diminish performance. Change initiatives must be evaluated from a business perspective.

Consider an example of a automobile dealership is evaluating a new protocol in their auto-service department. The service department generates more revenue than the sales department, on an annualized basis. Sales revenues have been down in recent years, and management would like to find ways to increase service revenue to offset any shortfalls from the sales department. The service department has proposed to senior management that they can make a change to their service offerings to increase revenue. Currently, the service department offers ala carte offerings for service. Patrons can opt for separate services on an as needed basis (e.g. oil, change, spark plug change, timing belt service, transmission service and so on). A key change proposed would involve offering packaged service solutions (e.g. 10K mileage service, 30K mileage service, 75K mileage service, and so on). Each package service would bundle many of the previously offered services. If implemented, the change could yield an extra $1M of service revenue for the dealership. Without this change, substantially growing service revenue would be very unlikely for the dealership. The change implementation will involve having to re-market its services appropriately, changing advertising, increasing promotions, training staff, and so on, They would have to do so without making long-time customers feel like they are being offered more services than then need at any given time.

How should the dealership go about evaluating this change? Should they embark on this change? Please explain your answer completely in a typed response (1 page or less).

Reference no: EM132245155

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