Business Management Case Study: Home Plus Company

820 Words 4 Pages
Organizational change is the altering of organizational structure, technology, and business strategy (Robbins, Decenzo and Coulter). As consumer preferences change, competition increases, and the economic environment fluctuates, business need to adapt to these changes to remain competitive and profitable. The management of Home Plus, a regional discount store, proposed a new strategy which involved doubling the number of high-end products the organization offered and cut its discounted packaged goods in half. This is a change from the initial business strategy in which the primary products the organization offered were discounted products. Before implementing the proposed strategy, Home Plus management must consider its advantages and disadvantages. …show more content…
Additionally, though managers believe the new strategy will differentiate the organization from its competitors, there is a chance that competitors may replicate this strategy. Managers also look forward to enter a new market, however, doing this will turn away existing loyal customers and as a business most valuable advertising agents are its customers this will not be beneficial to the organization. Managers should also consider the resources it will take to enter a new market and to purchase high-end products can be very high. Instead, managers should invest in new and better ways to satisfy current target market’s needs and build core competencies that will set them apart from their competitors. These are the reasons I disagree with the new strategy management of Home Plus have proposed.

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Robbins, Stephen P, David A Decenzo and Mary Coulter. Fundamentals of Management Essential Concepts and Applications. 9th. Pearson, 2015.

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