Business Management Contemporary examples

**if asks analyse societal attitudes as driving force for contemporary example: explain change that
happ recently, define societal attitudes & WHY it drove for change, explain HOW drove change

 Eg: societal attitudes lead to Woolworths change in opening an hour earlier for elderly &
people with disabilities to purchase items before (specialised time) AS  seen as vulnerable
to virus so needs priorities
 ALSO led to limits on essential items AS  fear of virus so more awareness on sanitisation
like excessive purchase of hand sanitisers & toilet papers AS stay at home during lockdowns

**better to give WELL-KNOWN business BUT if not = give other BUT give brief info of what it does &
sells before answering question!!

CHANGE:
BIG W = (part of Woolworths group)
Eg: proposed change is for 30 of 183 Big W stores to be shut down b/w 2019 & 2021

Driving forces: (REMP – internal, GLTISC – external)

- Manager: Woolworths CEO Brad Banducci want to close 30 stores (Broad Meadows, Box
Hill) to improve bus’s profits (reduce expenses) & focus on existing stores (Keysborough)
- Reduction of costs: loss of $110 million (2018) promotes Big W to reduce costs by closing
down 30 stores + for labour & lease
- Pursuit of profit: due to COVID-19 at end of 2019 lead to low sales so low profits as no in-
store shopping & lack of ppl shopped online SO encouraged to close stores for more profits
- Competitors: Target & Kmart in industry have better advertising w/ lower costs than Big W
(Porter’s low cost strategy) so hard for Big W to have comp adv + generally have better m.s
than Big W
- Globalisation: reduced trade barriers & improvements in tech encourages store closures as
more trade b/w countries SO engage in online shopping w/ international retailers like
Amazon & Ebay w/ lower prices
- Legislation: hard to pay lease on time as low profits due to high expenses w/ labour &
machinery for operations so as set by legally binding contract thru legislation, this law was
set in stone so encouraged to just close stores

Restraining forces (MELTOF)

- Employees: around 1000 and more employees redundant + job & financial insecurities as
fear of made redundant (can be redeployed to other bus of Woolworths group) + also stress
levels if redeployed to other areas as need to learn new s&k and go training
- Time: Big W wants to close 30 stores b/w 2019-2021 so pressure to do it within time frame
- Financial considerations: although in long term, low expenses by 20 store closure, in short
term >> prepare funds associated w/ closures like costs of exiting lease contracts, give funds
for movers to move equipment & stock AND give transition services (counselling, resume-
skill classes) for redundant employees to be CSR SO high expenses

Lewin’s 3-step change model: (UCR)

- Change is to close 30 Big W stores between 2019-2021

 - Unfreeze: communicate reason for change which is to reduce expense & make more profits
- Change: implement the desired change & redeploy some workers to diff stores & diff
functions so give training + others redundant so counselling for them & redundancy
packages + make updates to online website on which store + locations no longer existing
- Refreeze: embed change for LONG TERM so create policies for those redeployed + have
those redeployed give feedback on how they feel ab new role & overall change

WOOLWORTHS =
Societal attitudes as driving force (GLITSC)

- Many bus like Woolworths needed to have reactive changes due to COVID-19
- COVID-19 led to customers in panic state of purchasing excessive amount of essentials for
survival of lockdown
- SO Woolworths CEO; Brad Banducci had to change way Woolies run to respond properly to
societal attitudes like put limit on no. of items person can purchase (to ensure enough stock
considering panic buying) & opened Woolworths stores hour early for elderly as societal
attitudes changed & seen them as more vulnerable & needs for essential items prioritised
- THUS, shows how societal attitudes encouraged Woolworths to change, to respond to these
attitudes efficiently
**DO NOT have change as ‘ordering more toilet paper & hand sanitisers for large stock’ AS
it’s not a real BUSINESS CHANGE!! (more about limits placed & special timings for elderly)

Lewis’ 3- step change model (UCR) PLASTIC BAG BAN POLICY- JUNE 2018

- Unfreeze: CEO Brad Banducci communicates vision of banning single- use plastic bags to
employees & customers + tell reasons & benefits (reduce env harm) so help overcome
employee resistance + address restraining forces (employees/ financial considerations)
- Change: evaluate change &strategies to achieve change (eg: say resistance from customers
regarding banning of single- use plastic bags BECAUSE of have to purchase green reusable
polypropylene- based bags SO Woolies overcame this resistance by allowing reusable bags
to be free for 10- day extension so customers adapt to change)
- Refreeze: Woolies explain env adv of the single- plastic bag use ban & benefits of the
reusable bags SO reinforce change to be successful in long term at Woolies

CSR & change: RESTRUCTURE IN JUNE 2019

- Went restructure in June 2019 where created 2 new departments (fresh service & fresh
convenience department)
- Lead to voluntary redundancies for ppl who were retained or redeployed to diff areas of bus
- Woolies gave outplacement services to those redundant like interview training so can find
job easily
- Adv: Woolies seen as “bus of choice” as followed transition issues for employee redundant +
customers may see Woolies as socially resp so shop there instead of rival businesses SO
increase sales & m.s
- Disadv: expensive to give outplacement services so increase expenses & decrease net profit
figures
AUS POST =
Eg: In May 2021, Australia Post was trialling an in- store recycling solution w/ REDCycle

In May 2021 Australia Post announced that it was trialling an in-store recycling solution for 8 weeks
w/ REDcycle. This would allow customers to drop their soft plastics including Australia Post plastic
satchels, bread bags, chip packets, bubble wrap and more into a dedicated bin at the Post Office.
From there the plastic would be processed by REDcycle and delivered to a manufacturing partner to
be made into a range of recycled products.

Driving forces: (REMP – internal, GLTISC – external)

- Societal attitudes: more interest & concern on plastic used in Australia Post’s packaging SO
following this, they gave customers opportunities to recycle satchels & other soft plastic of
the Post Office
- Pursuit of profit: can attract more customers due to being ethical w/ giving opportunity for
customers to recycle satchels & other plastics SO can increase sales & profits
- Manager: Nicole Sheffield suggested trial to give communities access to recycling services as
while many have recycled soft plastic with REDcycle, not all have the access SO increasing
access to this service

COLES =
Maslow’s Hierarchy of Needs: (PSSES)

- Due to COVID-19 changes at Coles, this impacted workers, SO managers aim to satisfy 5
needs to motivate them
- Physiological needs = basic needs for survival through providing suitable pay during the
pandemic so can afford food & water
- Safety & security needs = providing safety by providing job security such as giving full time or
part time positions during pandemic & safe working conditions to make them feel protected
- Social need = hosting work events & encouraging to work in teamwork in group tasks like
delivering goods like groceries to customers’ houses during pandemic
- Esteem needs = employee feel valued when managers recognise efforts & work ethics +
provide gratitude for coming to work during pandemic
- Self- actualisation needs = managers give opportunities to allow employees to progress skills
& reach full potential like promotions

Motivation strategy = performance related pay: (PISSC)

- Performance related pay: give financial/ non-financial rewards to employees meeting or

exceeding expectations
- Due to the COVID-19 changes at Coles, this would have impacted employees, SO managers
need to give financial rewards for employees meeting or exceeding expectations as they
ALSO may not feel motivated to come to work during pandemic (hesitant/ in fear), so giving
extra funds motivates them

FORD =
- Inputs: labour (employees s&k and time) + capital (machinery) + natural (iron & aluminium)
- Processes: physical assembling of car parts + testing cars
- Outputs: finish car after assembled & tested
TOYOTO =
Quality management: (total quality management - QTQ)

- Inspections made at each stage of production process to ensure products meet set standard
of quality & errors identified & fixed
- At Toyota, employees inspect vehicles at each stage of production process
- This allows to ensure each vehicle meets a set quality standard & any errors like marks &
dents fixed & source of error is identified. Thus, prevents are future errors of other vehicles
- This ensures customers receive high wuality vehicles so reduce customer complains & can
increase sales SO improves effectiveness of operations

Usage of tech advancements: (CAWC)

- Computer aided design:

 ADV: digitally design & plan vehicle before produce so no errors + engineers make
design changes + customers can digitally preview vehicle before purchase & receive it
 DISADV: employees redundant, expensive

Lean management: (POTZ)

- Pull: Toyota produce vehicles upon customer orders SO prevent overproduction & reduce
inventory stock
- One piece flow: Toyota produce 1 vehicle at a time so customers who place order get vehicle
in shortest time possible w/o errors
- Takt: continuous flow of production w/o delays SHOWN BY using just in time so materials
arrive at time when vehicle being produced OS save time
- Zero defects: employees check for errors in each stage of vehicle production SO cause of
errors detected & fixed to prevent further errors

*also Dandenong pavilion = pull (produce pasta etc upon orders) & takt (synchronise production
steps so no delays SO receive food items quick)

Global strategies: (GOG)

- Global sourcing of inputs: Toyota having tyres from USA & smartphone app from Korea
- Overseas manufacture: production of vehicles in 28 countries like China & USA
- Global outsourcing: Toyoto’s IT network security of of Japan outsourced to Australian IT
service bus

TIGERAIR =
Porter’s generic strategy (lower cost strategy)

- Charge similar or lower priced air tickets compared to competitors Qantas & Jetstar
- Give single class & no frills airline travel (just pay for ticket & have to pay for others like
entertainment & food)
- Give preferred seating, luggage, meals and inflight entertainment as extra purchases.
- Have lowest cost of operations = low labour expenses by training staff to perform many
roles & have single model of aeroplane (not diff so save expenses)
QANTAS =
Porter’s generic strategy: (show differentiation strategy)

- Charge higher prices for air tickets compared to competitor Tigerair & Virgin Australia
- Give first, business & economy classes of travel w/ USB ports & PC power.
- Include meals, luggage & inflight entertainment in purchase price of plane ticket

Characteristics of a service business: (POSTC) 

- Production process: labour intensive as pilots & cabin crew work during a flight
- Customer contact: high degree of customer contact b/w cabin crew & passengers
throughout
- Occurrence of production and consumption: production & consumption occur same time as
service of flight & passengers transported occur simultaneously.
- Tangibility: outputs intangible as lacks physical appearance
- Consistency: flights tailored as customer choose destination, meals & seat quality

Senge’s learning organisation: (SSTMP)

- Systems thinking = shown when flight incident happ & lack of communication b/w engineers
& pilots was the reason
- Shared vision = safety of passenger is main objective of bus
- Team learning = employees work together in teams to continuously improve
- Mental models = changed w/ more female pilots being hired
- Personal mastery = give opportunities for employees to challenge & develop selves

Area of management: (SHOFT)

- Sales & marketing: promote Qantas flights thru media & flyer program
 CSR issue = gives customers option to donate spare foreign currency during flights
- HR: recruits, hires & trains pilots, cabin crew & ground crew
 CSR issue = allows employees to donate to charities directly from payrolls
- Operations: uses labour (cabin crew) as inputs
 CSR issue = uses biofuel in aeroplanes
- Finance: raise & allocate funds to diff areas of Qantas management & produces annual
financial report for shareholders
 CSR issue = gives funds to charitable organisations like ‘Great Barrier Reef Foundation
- Tech support: give technical assistance for pilots, cabin crews & ground crews using tech
 CSR issue = use operational manuals into digital format to the paper use

WESTPAC =
Lawrence and Nohria’s four drive theory: (BLAD)

- Drive to bond: encourages participation in social tasks like Australian Corporate Games.
- Drive to learn: upskills customer facing employees like banking advisors, in customer service
- Drive to acquire: give opportunities to work overseas & gives leadership positions (meet
potential)
- Drive to defend: has bus vision w/ employee values by promoting gender equity w/ more
females in leadership positions
GLORIA JEANS COFFEE =
CHANGE: 250 STORE CLOSURE

- In August 2018, Gloria Jeans aimed to close 250 stores after $306m loss =
CSR:

- Inputs: supply from both small- scale & large- scale suiplirs that conductTHEIR operations
ethically around the world  support all suppliers of all sizws ewually & purchase resources
(coffee beans, bread milk *natural, employees s&k *labour + ovebs & coffee machines
*capital) SO give source of income, reducing unemployment rates & improve promote
economic growth (social & economic friendly)
- Processes: use energy efficicent like ovens & coffee machines to grind, mix etc. THESE all
powered by solar panels SO env friendly
- Outpurs: produce sandwiches & cakes in rcyclbe brown paper bags + coffee in recyclable
cups so env friendly AND now change to electronic version of rewards card INSTEAD of
cardboard paper for rewards card which is changed after every 10 beverages bought SO no
more cardboard wasted so reduce env impact

YAKULT =
Quality management: (total quality management - QTQ)

- Inspections made at each stage of production process to ensure products meet set standard
of quality & errors identified & fixed
- At Yakult factory, internal employees inspect probiotic drinks at each stage of production for
taste.
- Once drinks are bottled, employees randomly inspect bottles for errors in printing, lid seals
and any other undesirable markings.
- By checking for defects in products, this ensures customers receive high uality propbitio
drinks with its packaging so reduce customer complains & can increase sales SO improves
effectiveness of operations

OTHERS =
For a business who implemented tech recently: Imaginative Creations – website development as
competitors (also had)

For café’s/ restaurants:

- Dandenong pavilion
- Gloria Jeans Coffee

Elements of operations system & CSR: (Gloria Jeans Coffee)

- Inputs: coffee beans, cocoa powder, flour, milk & bread >> CSR (source from local suppliers
so social resp)
- Processes: mixing, grinding beans, baking >> CSR (automatic energy- efficient ovens, toasters
& coffee machine so less carbon dioxide emissions & slow down climate change so env
friendly)
- Outputs: drink & food in their packaging >> CSR (package coffee is recyclable cups & food in
recycle paper bags so env friendly)
Manufacturing/ service business elements: (IPO) (POSTCC)

- For PROCESSES (actions used to transform inputs into outputs) = IKEA (manufacturing) =
capital intensive as uses machinery & equipment to cut, package & paint items like
bookshelf WHILE in ANZ banks (service) = labour intensive as uses employees s&k to talk to
customers, arrange & create accounts & their financial demands
- FOR OUTPUTS (final products produced & sold to customers) = IKEA (manufacturing) = final
products like book- shelf & tables are tangible as can physically be touched, stored &
standardised WHILE in ANZ banks (service) = service intangible so can’t be physically
touched, stored & can be talers to customers individual demands