are becoming obsolete more quickly Japanese firms have progressed rapidly because they are very fast in adopting new technological innovations. Practical example of technological force for change Before some recent year, Ethiopian brewery factories use human power to wash a beer bottle. However, after the new technology which washes bottles is adopted, washing of bottle by hand is stopped and now all of Ethiopian brewery factories using a machine to wash bottles which implies technology force for organizational change. 2. Marketing Conditions Marketing conditions are no more static. They are in the process of rapid change as the needs, desires and expectations of the customers change rapidly and frequently. Moreover, there is tough competition in the market as the market is flooded with new products and innovations every day. New methods of advertising are used to influence the customers. Today the concept of consumerism has gained considerable importance and thus, the consumers are treated as the kings. Moreover, the competition today has some significant new twists. Most markets will soon be international because of decreasing transportation and communication costs and the increasing export orientation of business. The global economy will make sure that competitors are likely to come across the ocean as well as from across town. Successful organizations will be those who can change in response to the competition. Organizations those are not ready for these new sources of competition in the next decade may not exist for long. Practical example of marketing condition force for organizational change Debre berhan blanket factory 3
Debre berhan blanket factory is the first and oldest blanket factory in Ethiopia. For many decades, the factory monopolized the market for the blanket in Ethiopia. However, after recent years the major producer of blanket in Ethiopia such as DH GADA and KK come to the market and resulted to change in the following in Debre berhan blanket factory. This includes Substitute of the oldest equipment by the new ones Diversification of the blanket The factory is also forced to make heavy promotion via radio and TVs The above point implies the market force for organizational change in Debre Berhan blanket factory. 3. Social Changes Social and cultural environment also suggest some changes that the organizations have to adjust for. There are a lot of social changes due to spread of education, knowledge and a lot of government efforts. Social equality e.g. equal opportunities to women, equal pay for equal work, has posed new challenges for the management. The management has to follow certain social norms in shaping its employment, marketing and other policies. 4. Political Forces Political environment within and outside the country have an important impact on business especially the transnational corporations. The interference of the government in business has increased tremendously in most of the countries. The corporate sector is regulated by a lot of laws and regulations. The organizations do not have any control over the political and legal
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- Summer '19
- Leadership & Change Management