Reference no: EM133267141

Assignment:

Serge Gaudet operates a wholesale/retail drapery and window blind business in the small Canadian town of Sturgeon Falls, Ontario. The world economic crisis in the mid-2000's suddenly became real when banks would no longer extend him credit. In his words, "I had signed orders, contracts in hand, and my bank refused my line of credit so that I could buy the inventory. How was I to finance this deal? I had the contract and it was with a government hospital. Surely, this was credit worthy? What else could I do?"

Serge managed through the crisis by negotiating newer, tougher terms with his bank. But the lack of credit was not his only problem. "Normally, I bid on requests for proposals and win a reasonable percentage of them," he reported. "Suddenly, there was nothing to bid on. Nothing. Every institution that was going to buy blinds was waiting -- waiting for the government aid that was very slow in coming. It was touch and go whether I could last until new contracts came in."

Questions

1. Describe the key environmental issue(s) affecting Serge Gaudet's business.

2. Identify and describe the type of organizational change that you think Serge Gaudet should implement to prevent the ultimate failure of his business. Include the scope of this type of change (minor/major) and the impetus for this type of change (reactive/proactive). Explain why.

3. Given the type of organizational change you've identified and described in 2. (above), discuss the measures or actions that Serge Gaudet should take with his drapery and window blind business.