1. Jovan Petkovic AET 560 Dr. Joseph Walters May 14, 2015
Case Study Analysis
Jovan Petkovic
AET 560
Dr. Joseph Walters
May 14, 2015

2. Agenda Selected Case Study Background Best practices Theory applied
Theory as a change agent
Summary
Open floor for discussion

3. Case study ASDA – Grocery store chain United Kingdom Facing bankruptcy
Archie Norman hired to lead company out of bankruptcy
Never had any retail experience
Newly graduated with an MBA

4. Background ASDA Company Background Started in the late 1960’s
Pioneered with concept of large markets / expansive parking lots / low prices
Flourished in working class areas
Known as the blue collar store
Warehouse like atmosphere

5. Background ASDA Company Background 65,000 employees 205 Stores
2,000 corporate employees
4th largest grocery chain in the United Kingdom
Annual sales of $6 billion
Claimed 8 percent of the market share

6. Background ASDA Company Background Old management
Split into acquisition of other retail stores (carpeting and furniture)
Aiming at wealthier customers
Spend lavishly on upper management
Private jets
Increased bonuses
High-style offices
Company nearing bankruptcy

7. Best practices Renewal process Strategic Renewal Culture Change
Corporate strategy
Articulation of company values
Blueprint – ASDA’s Way of Working
Strategic Renewal
“We will supply the weekly shopping needs of ordinary working families”
Culture Change
Shatter old culture
Rebuild from ground up
Strategic renewal – Consultants from McKinsey & Company Consulting hired to help formulate a strategic position
Culture change – set parameters, drew up a statement of company values, set of operational concepts – Way of working
Greater autonomy to store management – making operational decisions,

8. Theory applied Transformational Change
Motivation
Commitment
Involvement
Support
Open communication / transparency
Overcome resistance
Passive
Active
Aggressive
Transformational change targets behavior, employee behavior. Now this we can use for both, not just the employees but the employer alike. However, there are three components that can be used separately or together. The components are turnaround, tools and techniques and transformation. The focus will be limited to transformational change for this presentation.
Motivation – a bottom line performance….employee commitment to their own achievement and the companies
Commitment – what attaches the employees emotionally to the goals of the organization?
Involvement – are employees directly involved in the decision process…change process?
Support – how much support are the employees receiving in attaining the organizational goals?

9. Summary Company wide complete renewal 3 year completion goal
Individual accountability and responsibility

10. Open floor
Let’s discuss…

11. References
Spector, B. (2013). Implementing organizational change: Theory into practice (3rd ed.). Upper Saddle River, NJ: Prentice Hall.
Tupper, C., Deszca, G., & Cynthia, I. (2012). Organizational change: An action-oriented toolkit (2nd ed.). Thousand Oaks, CA: Sage.