Prepare and submit an initial project proposal of approximately 550 words that addresses the
following questions:
� What is the name of the organisation you propose to use, where is it located, what is its primary
business and approximately how many staff does it employ? (If there are any concerns about any
aspect of commercial sensitivity, it is permissible to use an assumed name for the organisation you
select).
� Using the value creation-modus operandi-value capture concept, what is the business model used
by this organisation? To what extent does this business model rely on the application of new
technologies?
� What is the one change driver that is of particular relevance to this organisation�s current
situation?
� What significant change would you recommend the organisation implement in order to address the
identified change driver?
� Who are the key individuals and groups with a legitimate stakeholder interest in the change
process you recommend?
ODC PROJECT W32
ODC Project W3
The name of the organization is TLC Fashion Store; this is an assumed name. The
company’s real name is not used since there are concerns with regard to some aspects of
commercial sensitivity. In other words, an assumed name is used in order to protect the
anonymity of the selected company, which is a fashion retail store. The store is situated in
London’s Oxford Street. Its primary business is to sell high-end clothes, shoes, watches,
women handbags, sunglasses, and jewellery. The retail store stocks products for men and
women aged between 18 years to 34 years, who have an annual income of over £35,000. At
the moment, the retailer has a workforce of 11 people.
Using the value creation-modus operandi-value capture concept, it is determined that
at the moment, the business model that TLC Fashion Store uses is a business model that
involves selling its high-end fashion products only in-store; it does not allow online shopping.
The store uses the conventional brick-and-mortar store whereby it relies on customers to
enter the store, select a product, make a purchase, and exit. This model does not rely very
much on the application of new technologies (Cavalcante 2014). It makes limited use of new
ODC PROJECT W33
technologies since the company’s only use of technologies is the fact that it has a website
which it uses to advertise but not to sell its wide range of products.
The one change driver which is of particular relevance to TLC Fashion Store’s
present situation is certainly the use of a multi-channel store whereby the retailer can
combine both the brick-and-mortar store with online shopping. These days, consumers are
very much empowered thanks to the proliferation of smart phones and other internet-enabled
hand-held devices which have in fact shifted the power from retailers to shoppers (Overstreet
2013). Shoppers nowadays utilize their smart phones and other internet-enabled hand-held
devices to search online, shop and pay for products. As such, it is important that retailers
adapt new technologies which would allow their shoppers to shop online, purchase a product
online and pay online (Banks 2014). The significant change that I would recommend TLC
Fashion Store to implement so as to address the identified change driver is to change and
become a multi-channel retailer that not only has a physical brick-and-mortar store, but also
has an online presence that allows consumers to shop online for its various products and pay
online with the use of smart phones or other internet-enabled hand-held devices.
In the recommended change process, the key groups and individuals who have a
legitimate stakeholder interest include customers; the company’s top managers including the
Chief Executive Officer, Chief Financial Officer and Senior Marketing Manager; employees;
and government regulatory agencies. Customers are a key group of stakeholders since most
customers would like to shop for products online and pay online and TLC Fashion Store will
greatly improve the shopping experience and convenience of its customers when it allows
them to shop and pay online using their smart phones. TLC Fashion Store’s top managers are
also a key stakeholder group since they make the decision to implement the change in the
organization, they execute the change, and ensure that the change actually sticks by
incorporating it in the company’s corporate culture (Mayfield 2014). Employees are key
ODC PROJECT W34
stakeholders since the change would be futile if they do not accept it. Therefore, it would be
important that TLC Fashion Store’s senior managers convince the employees to accept the
change by telling them about the benefits of the change to them, to customers, and to the
company in general so that they do not resist it (Buchanan 2011). Government regulatory
agencies are also a vital stakeholder group since the new website which allows online
shopping and online payment will have to comply with relevant laws and regulations
pertaining to online payment and online cash transactions or else it may not be approved by
the authorities.
References
Banks, S 2014, Drivers of change: Retail industry in Australia. SIES Journal Of
Management, 14, 1, pp. 3-8, Business Source Complete, EBSCOhost, viewed 26
August 2016.
Buchanan, DA 2011 Reflections: Good practice, not rocket science – understanding failures
to change after extreme events. Journal of Change Management, 11(3): 273-288
Cavalcante, SA 2014, Designing business model change. International Journal of Innovation
Management, 18(2): 1-20
Mawby, E 2011, How to succeed in the retail industry. Journal Of Business & Retail
Management Research, 6, 2, pp. 1-12, Business Source Complete, EBSCOhost,
viewed 26 August 2016.
Mayfield, P 2014, Engaging with stakeholders is critical when leading change. Industrial and
Commercial Training, 46(2): 68 – 72
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Overstreet, J 2013, What’s driving change in retail? Retail insiders on the evolution of the
industry. Ekonomski Anali / Economic Annals, 54, 209, pp. 105-127, Business
Source Complete, EBSCOhost, viewed 26 August 2016.
