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Organisational Change

Major organizational changes were presented by Group No. 8. The document discussed three examples of organizational changes: 1) Quaker Oats' failed merger with Snapple due to differing cultures and competition from larger rivals, 2) Adobe scrapping its performance review system in favor of more frequent informal check-ins to reduce attrition, and 3) Microsoft restructuring into various organizations focused on productivity, cloud, and personal computing under CEO Satya Nadella to spur innovation. The changes aimed to reduce competition, increase productivity, and spur innovation but some like the Quaker Oats-Snapple merger failed due to unforeseen challenges while others like Microsoft's restructuring proved successful in revitalizing the

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158 views13 pages

Organisational Change

Major organizational changes were presented by Group No. 8. The document discussed three examples of organizational changes: 1) Quaker Oats' failed merger with Snapple due to differing cultures and competition from larger rivals, 2) Adobe scrapping its performance review system in favor of more frequent informal check-ins to reduce attrition, and 3) Microsoft restructuring into various organizations focused on productivity, cloud, and personal computing under CEO Satya Nadella to spur innovation. The changes aimed to reduce competition, increase productivity, and spur innovation but some like the Quaker Oats-Snapple merger failed due to unforeseen challenges while others like Microsoft's restructuring proved successful in revitalizing the

Uploaded by

Anusha Singh
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MANAGING ORGANIZATIONAL CHANGES

Major Organizational Changes

Presented By
Group No. 8

NANDINI VARSHNEY | MBA20112


ANUSHA SINGH | MBA20154
ALOK TIWARI | MBA20288
NITISH KUMAR SINGH | MBA20374
VINAY KUMAR | MBA20375
Quaker Oats Reason
and Snapple ​
 Planned to reduce competition in market by merging and
to capture market share​

 Recently successful acquisition of Gatorade drink led to


think more mergers of same type​

 Quaker Oats' management thought it could leverage its


relationships with supermarkets and large

 Change ​

 Quaker merged with Snapple despite the wall street


warning regarding overpaying purchase price​

 Paid penalty for $0.7billion for breaking merger and


acquisition rules and this led to conflicts in the current
management system
Quaker Oats
and Snapple

Conclusion​

 It is counted as the most flopped deal because loss was suffered by each company, board as well
as employees​

 In just 27 months, Quaker Oats sold Snapple to a holding company for a mere $300 million​

 Snapple had revenues of approximately $500 million, down from $700 million at the time that the
acquisition took place

 Differing cultures translated into a disastrous marketing campaign for Snapple that was
championed by managers not attuned to its branding sensitivities​

 While these challenges befuddled Quaker Oats, gargantuan rivals Coca-Cola and PepsiCo 
launched a barrage of new competing products that ate away at Snapple's positioning in the
beverage market
 Reason

 Performance review system was costly​

 Near about 80,000 hours wasted on performance


evaluation
​
 Rise of voluntary attrition after review due to
dissatisfaction
Steps taken

 Made less formal check in discussion process​

 Increased frequency from once a year to four times a year

 Allowed discussions session to talk about career goals and


improvement required in employees​

 To inform change, Adobe hosted sessions for employees​

 Created training sessions for managers to teach how to best


structure their check in sessions​

 Company also created employee resource centre to answer


FAQs about performance management, career coaching etc
Conclusion​

 The change has been successful​

 90% managers voluntary became part of training sessions​

 30% decrease in attrition rate​

 50% increase in involuntary departures lead to higher productivity for company


 Reason

 To merge complementary strengths of both the companies,


which will enable to build capabilities, create engaging and
personalised learning programmes
 Merger will create vast organizational change and operating
model and culture changes dramatically for one or both
merging companies.
 These changes go far beyond a new name and senior
leadership; they challenge the core of an organization’s
identity, purpose, and day-to-day work.

Change

 India’s biggest online-education start-up Byju’s has acquired


brick & mortar test prep leader Aakash Educational Services
Ltd through a strategic merger

 Byju's acquires Aakash Educational Services in nearly $1-


billion deal
Conclusion​

 In the midst of the pandemic, and the uncertainty arising from it has hastened the process of digitalisation among traditional
players in the test prep space

 Byju’s was already in an advantageous position because of its EdTech advancement and now this merger is proving to be
fruitful for the Aakash as well.

 Aakash  with its legacy of more than 30 years and Byju’s technology-based learning is taking students closer to their
JEE/NEET dream which yielding better results for employees as well

 With centres across India, expert faculty, and cutting-edge technology Aakash + Byju’s is giving its subscribers edge over
others

 Aakash Educational Services will continue to function independently under the leadership of Founder JC Chaudhry and
Aakash Chaudhry and Byju's will make further investments to accelerate Aakash’s growth
 Reason

 Microsoft was struggling to keep up with other companies — specifically, with Google
becoming dominant in the search and software market and Apple owning the phone market

 The tech giant’s growth came to a halt due to internal wars between major departments.

 Company being increasingly dependent on Windows and Office, as innovation was limited
due to the toxic work environment. Although both products are very successful, the
stagnation put the company in a dangerous “comfort” zone.

Change

 Microsoft products and platforms would no longer exist as separate groups​

 Their new common functions include:​


 Reinventing productivity and business processes​
 Building an intelligent cloud platform​
 Creating more personal computing​

 Later on Nadella created a new AI and Research Group by merging their original research group with the Bing, Cortana, and
Information Platform teams, this move brought roughly 5,000 engineers and computer scientists together to focus on artificial
innovation across all Microsoft product lines
Conclusion​

 Satya Nadella introduced a new mission with


his employees: “To empower every person and
every organization on the planet to achieve
more.” ​

 As a result of the new well-established mission,


the company’s future looks brighter with its
restructuring still in progress. The entire
restructuring process was carried out with
exceptional care thus giving us one of the
absolute best examples of Change Management
in an Organisation
 Reason

 Google started taking up too many "MoonShoot


Projects"

Change  Therefore, Google grew to be extremely diverse.


The company started taking up all kinds of
 Larry Page segregated Google into various organizations, every projects, including ones relating to human
one of them possessed by another umbrella enterprise called longevity, smart vehicles, wearable tech, smart
Alphabet homes, and more. ​
​
 Each of Alphabet’s companies had its own goals and a CEO  As a result, Google was becoming an increasingly
focused solely on those goals impossible organization to manage

 Larry’s motivators to make this change included:​


 Getting more ambitious things done while taking  the long-
term view in mind​
 Improving the transparency and oversight of what we’re
doing​
 Investing at the scale of the opportunities and resources we
see​

 Essentially, Google wanted to separate every major project into


independent organizations with unique goals and ambitions. That
Conclusion​

 Larry Page at the announcement of Alphabet said that


“the reorganization would free the employees to
concentrate more productively and happily on their own
mission without having to be concerned about Google
overall.”​

 This implied that each of Alphabet’s companies was


now liable for their own expenditures and income. And
yet, the increased responsibility made the innovation
much more meaningful. ​

 In the end, what truly paid off for Google (now


Alphabet) was the long-term vision Page had for the
company, which drove him to lead a change
management initiative for the good of his organization.​
References
 https://www.forbes.com/sites/davidburkus/2016/06/01/how-adobe-scrapped-its-perform
ance-review-system-and-why-it-worked/?sh=490bc86455e8

 https://www.tinypulse.com/blog/3-examples-of-organizational-change-and-why-they-got-i
t-right

 https://www.thehindubusinessline.com/news/education/byjus-acquires-aakash-education
al-services/article34243695.ece

 https://www.investopedia.com/articles/financial-theory/08/merger-acquisition-disasters.a
sp
Thank You | Questions ?

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