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Analysis of 1-800-GOT-JUNK?[/b]
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Submitted by[/b]: The Green Team[/b]
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1.0. EXECUTIVE SUMMARY.. 2
2.0. SITUATIONAL ANALYSIS.. 3
2.1. SWOT.. 4
2.2 Table 1: S.W.O.T Analysis. 4
3.0. ASSUMPTIONS.. 4
Enhancement: 4
Constraints: 5
4.0. CORE PROBLEM... 5
5.0. EVALUATIVE CRITERIA.. 5
5.1. Table 2: Evaluation Weights. 5
5.2. Reasons for Rating Alternatives. 5
6.0. ALTERNATIVES.. 6
7.0. ANALYSIS OF ALTERNATIVES.. 8
7.1 Analysis of Alternatives Chart.. 9
8.0. DECISION AND JUSTIFICATION.. 9
9.0. IMPLEMENTATION.. 11
9.1 Implementation table. 12
10.0. BIBLIOGRAPHY.. 13
APPENDICES.. 14
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1-800-GOT JUNK? is a successful junk removal company founded by Brian Scudamore, a novice and amateur in business since 1999. It is his vision that started the lucrative business and his vision that continues to make it successful. From 1999 to present 1-800-GOT- JUNK? has experienced rapid growth in expansion and revenue. The company has turned from “a rapid fire, turn on dime type organization to having to really manage growth[/i].”(1-800-GOT-GROWTH, 2008) Brian Scudamore now envisions the firm becoming represented in more global markets via more franchises. With growth comes change, in order to accommodate impending change this organization must be prepared. Therefore, assessment of change capability is necessary.
1-800-GOT-JUNK? is the largest junk removal company in the world with 375 franchises to date, reflecting system wide revenues over $125 million in 2007. The company should adapt a strategy to evaluate its change capability status due to uncertainties in the political, social, economic and, legal environment. Alternatives to change capability were considered. The use of a Change Readiness Assessment Survey was considered first. This would enable the company to formulate plans to enhance productivity. Another alternative could be enhancement of employee’s skills through training and technology which would in turn optimize the span of control. This would also involve improving the manager to employee ratio that would impact positively on their interaction. Thirdly, the acquisition of new technologies and more ecological products and processes e.g., becoming a green company would attract new customers who want to create a healthy environment. Yet another alternative could be the creation of an environment that facilitates continuous learning through the use of new skills, techniques, mentorship, and most importantly would be benchmarking. This would translate into an organization that is flexible and ready for changes. Lastly, 1-800-GOT JUNK? could decide that the status quo is sufficient.
While several of the above alternatives have merit, use of the change readiness survey was the best first step towards achieving change capability and maintenance of competitive advantage. Preparation for change is considered a critical precursor to the successful implementation of complex changes in organizational settings. Change management is a critical, though often overlooked, element in organizations today. It focuses on the human side of change helping people understand, accept and commit to new ways of working. It involves a process of creating a common vision, assessing the current state, designing the desired state, establishing new behaviours and working towards implementing the change. The end result of all this change-related effort for 1-800-GOT-JUNK? is likely to be effective implementation.
Successful implementation can be guided by knowledge of what courses of action are necessary, what kinds of resources are needed, how much time is needed, and how activities should be sequenced. The Change Readiness Assessment Survey will assess whether 1-800-GOT-JUNK? is ready for change, and whether the company has the human, financial, material, and informational resources necessary to implement change well. The Change Readiness Assessment Survey Report will highlight situational factors such as, whether sufficient time exists to implement the change well or whether the internal political environment supports implementation. When organizational members share a common assessment of task demands, resource availability, and situational factors, collectively they experience confidence and are ready for change and its implementation.
2.0. SITUATIONAL ANALYSIS
1-800-GOT JUNK? is a successful junk removal company founded by Brian Scudamore, a novice and amateur in business since 1999. It is his vision that started the lucrative business and his vision that continues to make it successful. From 1999 to present 1-800-GOT- JUNK? has experienced rapid growth in expansion and revenue. The company has turned from “a rapid fire, turn on dime type organization to having to really manage growth[/i].”(1-800-GOT-GROWTH, 2008) Brian Scudamore now envisions the firm becoming represented in more global markets via more franchises. With growth comes change, in order to accommodate impending change this organization must be prepared. Therefore, assessment of change capability is necessary.
Brian Scudamore foresees continued growth for his company, but he is wondering if his company has the capacity for change. In order to accommodate impending change the company must be prepared. “Organizational change is an alteration of people, structure, or technology in an organization.”[/i] (Management 9th edition, 2009) Organizational readiness for change is a multi-level construct. At an organizational level construct, readiness for change refers to “organizational members' shared resolve to implement a change (change commitment) and shared belief in their collective capability to do so (change efficacy).”[/i] (Implementation Science,[/i] 2009) Change can take many forms, including: a major shift in organizational direction, a decision to simplify and focus on a limited number of core activities, and a restructured program, process or organization. A realistic assessment of the company’s change capability is therefore essential for 1-800-GOT-JUNK?
Refer to detailed S.W.O.T in the appendix
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STRENGTHS[/b]
ü 1-800-GOT-JUNK? Company is the largest junk removal company in North America.
ü 1-800-GOT-JUNK?, named one of the Best employers in Canada for 2007 by Canadian Business.
ü Company has 375 franchises to date, reflecting system wide revenues over $125 million.
ü Named on the list of Entrepreneur Magazine’s fastest growing franchises in 2005 and 2006. (Sales more than doubled in one year).
ü Centralized booking and dispatch for all franchise partners.
ü Donates and recycles 60% of the junk.
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WEAKNESSES[/b]
ü “One captain of the ship,” often limits innovations and willingness for change.
ü Due to nature of business, it’s hard to find good employees and franchise partners.
ü Ambiguity in company’s vision.
ü High operational cost. (Hike in fuel prices)
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OPPORTUNITIES[/b]
ü Expansion into new markets.
ü Offer of stock on the stock market to increase visibility and capital.
ü Expand into other markets like recycling and moving.
ü Increase size of their fleet of trucks and vary trucks by size of job.
ü Investigate Readiness for Change and take appropriate actions.
ü Taking technology to the next level.
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THREATS[/b]
ü Low balling competitors who have local market advantage.
ü Changing climate for environmental resources: Rising gas prices.
ü Adverse weather conditions (Snow storms, heavy rains) also affect the company.
ü Company name can easily be copied like: 1-800-GOT-RID-OF-IT.
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