Change In An Organization
At the beginning of the 21st century, the auto industry experiences problems caused by economic decline and global financial crisis. It is important to mention that because innovation is all about creating new realities, change must deal first and last with sight. Many economists admit that the US auto industry will not be able to survive without innovations and new products in technology as a driver of change. Financial investments are considered as “unrealistic” because of the impaired sight of the state. It is assumed that the strategic intention not only leads to changes in auto industry, but it adjudicates change, so providing almost instantaneous responsive changes, time and place specific. Change presupposes a purpose, so change is often perceived as continuous creative energy. Thesis Ford Motor Company has introduced changes in its technology, and prices as a result of new economic demands and needs of diverse customer groups.
Ford Motor Company is a leading American car producer with annual sales of about 146.277 billion (2008). In order to complete with Japanese manufacturers, the US industry and Ford Motor Company should introduce innovative technologies based on green technological solutions and energy saving technologies (Ford Motor Company 2009). In such a situation, the mission of car manufactures will change from profit-making companies to innovators and unique designers. The current economic and financial situation in the USA suggests that it is crucial to introduce changes in every operation and management processes. Anything about the current process and production that cannot be improved must be abandoned. Anything not existing that is needed to complete the production must be created–from within the production life itself. For instance, in an auto company, one of the most basic, routine activities is production of car parts; the specifics of the transaction may change from time to time, because of innovation and technological improvements, but it is still production. In actual practice that is the case; the change process seldom reaches to the basic operational aspects of the company. But in whole-context organization, the change is given a new meaning by being cast into a completely new context (Ivancevich, 2007).
The American economy has witnessed essential shifts from a production orientation to a consumer orientation, from an economy of shortage to an economy of abundance, from an agricultural to a mature industrial economy, and from concern about not being able to produce enough goods and services to becoming fully capable of satisfying basic needs through the availability of more than adequate production capacity. In this evolution, necessities are taken for granted, former luxuries become necessities, and expensive, luxurious items, previously unattainable, fall within reach (“Capitalism and the auto crisis” 2008). In such an economic environment, strategic marketing factors become important ingredients of economic growth. In a very real sense, marketing faces a number of increasing challenges in the United States. Although we have developed productive and technical capacities to the point where they are increasingly effective, both outstrip the economy’s marketing capabilities (Ivancevich, 2007). The market-focused economy now challenges society to develop a marketing capacity that will match its physical productive resources. Marketing is a phenomenon of mass systems, reaching its highest form and most efficient development in the creation of mass markets. Mass production can exist only in association with mass distribution, for production does not automatically create its own demand. Automation, for example, is predicted on the belief that mass markets can be created to absorb continuing supplies of innovative products (“Capitalism and the auto crisis” 2008; Daft, 2003).
The main trends in car industry are sales decline and low prices aimed to meet income and needs of consumers. Since Ford Motor Company is in serious decline, emphasis should be on understanding the characteristics of completely new, non-templated, natural systems that continuously create themselves as they aggressively appropriate technological, economic, and social possibilities. Innovation in designs and technologies will change the industry. Exactly how this exploration is conducted is, of course, the prerogative of the chief executive, but a wise planner will ensure that especially the most radical ideas are given serious consideration (Ford Motor Company 2009). It is important to assume that if this change process is properly planned and prepared, it can be accomplished in extended changes. Like Ford Motor Company, many car manufactures choose a retreat environment for what should be a casual but no-holds-barred examination of possibilities (Ivancevich, 2007). All of those who are to be active in the development of strategy should be invited to participate. Throughout this extended discussion, one thing must be made clear: the strategic planning process, not to mention the plan, will leverage the entire organization into an entirely new way of doing business (Levy and Merry, 2003).
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