Innovation And Change Management As Organizational Competitive Strategy (A Study Of Nigerian Bottling Company Plc)
Management Change and Innovation as a Business Survival Strategy has been a concern to the researcher as a study of Nigerian Bottling Company Plc, Benin City. The organization has some outstanding challenges to meet up with the unpredictable changes in the society; such changes have been opportunities to some industries and well as threat to others. For any business to succeed in our time change is inevitable; industries must consciously initiate change, change programmes and ensure that such programmes are carried out. Research questions will be formulated; related literature was reviewed. Data will be collected with the use of questionnaires, containing thirteen (13) questions structured on the research questions and personal interviews. The data collected were presented using tables and analyzed by percentage with description. The researcher recommends that creativity and innovation in business should be upheld as a tool for organization success.
Table of Content
- Title page
- Table of contents
- 1.1 Background of the study
- 1.2 Statement of the problem
- 1.3 Objective of the study
- 1.4 Statement of hypotheses
- 1.5 Scope to the study
- 1.6 Significance of the study
- 1.7 Limitation of the study
- 1.9 Definition of terms
- 1.9 Profile of Nigerian Bottling Company
Review of Related Literature
- 2.1 Introduction
- 2.2 The concept of change
- 2.3 The concept of change, innovation and creativity
- 2.4 The contemporary business organization
- 2.5 The environment of contemporary business organization
- 2.6 The place of organizational culture
- 2.7 Resistance to organizational change
- 2.8 Change management strategies
- 3.1 Introduction
- 3.2 Area of the study
- 3.3 Population of the study
- 3.4 Sample size and sample techniques
- 3.5 Method of data collection
- 3.6 Method of data analysis
- 3.7 Validity and Reliability of the instrument
Data Presentation and Analysis
- 4.1 Introduction
- 4.2 Presentation of Data
- 4.3 Test of hypothesis
Summary of Findings, Conclusion and Recommendations
- 5.1 Summary of findings
- 5.2 Conclusion
- 5.3 Recommendation
- Appendix I
- Appendix I (Questionnaire)
1.1 Background Of The Study
Companies, like any living organism, must become learning organization that change and adapt to suit their changing business environment. In today’s dynamic business environment, many organizations are increasingly realizing that globalization is making the world smaller and more competitive. A change in one aspect impacts another immediately.
However, when you do not practice the change management that looks after the future, the future will not look after you. The tendency for successful companies to fail to innovate is just that: a tendency when too much of interest is been put on current business, it’s hard to look ahead. Within the past few decades, business organizations have operated in such a complex and dynamic political, economic, technological and social environment, that for any business organization to remain in existence, it must watch out for these environmental factors.
Thorpe (1999:217) stated that economic situation today is one of increasing uncertainty and ambiguity. We are living in a world where many of the original ground rules no longer apply. Foreign competition has grown and technological change was destined to change our social fabric in ways that would require a quite different response from that which has gone before.
Change projects fail more often from lack of effective change management. Teams that ignore change management cite this as one of the “most important lessons learned” during their project. Teams that use management techniques have reduced turnover and the lobs or valued employees.
The truth has been established that management change can be as certain as possible that the environment in which their organization operate and the company itself will go through many changes overtime. If managers had control over this factors, one would argue that they keep the same and operate business, but in the case is not so, companies usually operate in environment over which they had little control. “Technology is continuously changing, competitors are trying new things and customers change their preferences and demand different products” (Robbins 2002:577). Employees change attitudes towards work that are not fixed and because of things that happen in people’s lives outside the work place.
All managers, regardless of country or sector, are facing unprecedented demands and challenges. All managers need the skill to cope with dramatic and unpredictable change, and all managers must be able to maintain the highest standards of performance corporate and individual while their employees cling onto an increasingly frenetic organizational Roller Coaster (Mabuabuchi, 1999:11).
The issue now boils down to the fact that management changes must either do something about their business organization or become obsolete. The problem now is one of innovate or die. To survive, changes must be effectively absorbed and innovation must become the watchword.
1.2 Statement Of Problem
The investigation here covers Nigerian Bottling Company Plc, Benin City that has experienced a near total collapse as a result of a negligent attitude to the forces of environmental changes. Globalization, emergence of communication and information technology, changes in technological, social and cultural demands are some of the forces that are affecting the environment outside and impacting the organization within.
In spite of all these efforts, managers have failed to realize that if these changes are not properly managed, there is potential for high turnover. They are faced with much more turbulent and technological world in the external environment.
It is therefore pertinent for managers of Nigerian Bottling Company Plc, Benin City to know that it is suicidal for organizations to remain static. They have to forego keeping an internal orientation and attempt to change dynamically as the environment changes. The environment is now busy, clogged and dense with opportunities, and threats, it is uncertain and dynamic.
1.3 Objectives Of The Study
Based on the problem that propelled the researcher to write on the topic, it is the broad objectives to this study to determine the appropriate way to which management change and innovation, as a business survival strategy should be carried out in Nigerian Bottling Company Plc, Benin City, as this would provide a scheme for proper incentives, motivation and more importantly, show case the employees who are due for promotion. In achieving these, the following sub-objectives serve as channels:
- To assess the management change and innovation in Nigerian Bottling Company Plc, Benin City, and discover the forces of the dynamism and complexity of contemporary business organization.
- To examine the importance of innovation and highly technical and creative business mind in coping and contending with the forces that pose a threat to organizational survival.
- To ascertain their strategy by reducing the use of change management techniques thereby reduce turnover and the loss of valued employees.
1.4 Statement Of Hypothesis
For the sake of authenticity of this study and the validity and reliability of the findings and conclusions there of, some basic hypothesis are put forth to be tested.
- Ho: Change and innovation does not enhance organization competitiveness.
- Hi: Change and innovation enhances organization competitiveness.
- Ho: Innovation and creativity does not enhance organizational growth.
- Hi: Innovation and creativity enhances organizational growth.
1.5 Scope Of The Study
This research is strictly carried out on management changes and innovation, therefore concentrating on complex and dynamic political, economic, technological, communication, information and social environment, that for any business to survive, it must watch out for these environmental factors.
The investigation covers Nigerian Bottling Company Plc, Benin City.
1.6 Limitations Of The Study
However, as expected in an exercise of this nature, the study is not without its inherent limitation. The researcher would have dropped this investigation for another one when she began to consider financial involvement in transporting from time to time to the organization to gather information, and no response were obtained to some of the items on the questionnaire because the respondents felt such items of information were confidential to the organization.
Secondly, managers openly turned down to the interviews, while others do not give absolutely the true and correct information.
Finally, it is the researcher extra effort to gather materials, data and information’s required for this study and as a result of these, not all the materials and information needed were available.
1.7 Significance Of The Study
This research work will help the organizations and managers to understand those benefits that innovation and change management which most organizations have neglected and ignored in the past. In understanding this on the side of the organizations, it will allow them to rethink and work towards a qualitative innovation and change management in order to enhance and increase the performance of the organizations.
1.8 Definition Of The Terms
It is defined as all legal, profit-directed economic and commercial activities that provides goods and services necessary to a nations standard of living, (Borne and Kurts, 1976).
This is defined as the functional stresses i.e. it comprises of organizing, planning, directing, controlling and staffing in other to achieve their aim in an organization, it is defined by Henry Fayol.
It is the ability to apply creative solution to problems. It acts as an effective tool to manage change in organization.
It is comprehensive plan for accomplishing an organization’s goals.
It is an alteration of an organization environment, structure, technology or people; because change is an organizational reality, handling it is an integral part of every manager’s jobs.
It is defined as an organization that has being in existence in spite of the challenges, difficulties and threat facing them.
It is the way of approaching business opportunities and challenges. It is a comprehensive and on going management process aimed at formulating and implementing effective strategies.
Management Change And Innovation:
It is a unique approach to adapt the philosophy and nuances to change facilitate change management. Initially, after the change has been effected, there is resistance to change, primarily because people have the fear of the unknown.
1.9 Historical Profile Of Nigerian Bottling Company (NBC)
The Nigerian Bottling Company Ltd is one of the biggest companies in the non-alcoholic beverage industry in the country and is the sole franchise bottler of The Coca-Cola Company in Nigeria.
The company serves approximately 160 million people by producing and distributing a unique portfolio of quality brands, bringing passion to marketplace implementation, and demonstrating leadership in corporate social responsibility.
NBC Ltd started operations in Nigeria in 1951. Based in the city of Lagos, they operate 13 bottling plants across the country. In addition, they channel products through 59 warehouses and distribution centers.
The company employs about 4,800 people and indirectly supports the jobs of up to more than a million more in our value chain.
The company aims to be our customers’ most preferred supplier, and conduct programmes to support more than 450,000 customers who sell our products to consumers.
The company is part of the Coca-Cola Hellenic Group, one of the largest bottlers of the Coca-Cola Company’s products in the world, and the biggest in Europe. Coca-Cola Hellenic operations span 28 countries, serving more than 570 million people. The company is headquartered in Athens and listed on the Athens, New York, and London stock exchanges.
The company produces, sells and distributes a wide range of beverages, most of which are trademark products of the Coca-Cola Company. The company product’s portfolio consists of:
- leading brands Coca-Cola, Coca-Cola light, Fanta and Sprite
- local brands such as Schweppes, Five Alive, Limca and Eva
The company continuously reviews opportunities to expand our product portfolio in order to offer consumers in Nigeria an increasing range of choices. Every measure is taken to ensure that the company’s products are of the highest quality.
Summary, Conclusion And Recommendation
5.1 Summary Of The Study
The research work was carried out on “management change and innovation as a business survival strategy”. The ever-accelerating pace of change is one of the greatest changes facing contemporary managers and organizations. A manager must understand what change is, how it occurs and the factors associated with successful change in order to cope effectively with this important challenge, Management changes are often resisted because of uncertainty, threats to vested interest, lack of trust, misunderstanding and so on. The changes were often abrupt and characterized by hostilities. They brought massive changes in personnel and in policies affecting the operation of “organization”. For instance, restriction was placed on foreign ownership of business and on the importation of various raw materials.
Business organization is regarded as immortal; it outlives generation of owners, managers or workers, yet, management kind to equate their tenure with the life organization. They formulate policies which reflect their orientation and which often result in their success or changing things after identify the long run interest of their environment and align that of the organization to it. Such a policy may not be appealing in the short-run, as it may not take advantage of short-term opportunities. But industries which take such long-run view their industry’s interests are the one which maintain stable growth in the long run, at least relatively insulated from the instability which are the consequences of the frequent changes in the environment. It is of course realized that management has to fit its policy to the broad macroeconomic policy of government. But the change of innovation management is to see beyond the immediate advantage of short-term policies and while exploiting than for immediate advantage, to realize that they cannot last.
A long-term view of management is most likely to avoid a fallacy of composition, which leads to the perception that societal interest is a simple summation of component organization interest. In reality, the starting point is societal interest to which organizational interest must be aligned. Adopting this view, management is likely to produce stability in organization growth in spite of the changes of the environment.
Management is thus, faced with the need to adopt an innovative approach of developing a structure for their organization which will fit the skill, staff, style and super- ordinate goals of the organization. This posses a challenge to the creative and innovative power of management.
The need for change has been implied through this research study. A casual reflection on change should indicate that it encompasses almost all our concept in the organizational setting; think about leadership, motivation, organizational environment and roles. It is impossible to think about these and other concepts without enquiring about change. Managers are the primary change agents in most organizations. By the decision they make and their roles modeling behaviour, they shape the organization’s culture. For instance, management decision related to structural design, cultural factors and human resource policies largely determine the level of innovation within the organization. Similarly, management decision, policies and practices will determine the degree to which the organization learn and adapt to changing environmental factors.
In the light of the above, many practicing managers are becoming disenchanted with traditional ways of designing their organizations. Up till a few years ago, most managers attempted only timid modification and innovation.
However, many of today’s managers have finally overcome these resistances to make drastic organizational changes. They realize that the simple solution offered by the classical theories is no longer adequate for many of their complex problems. In particular, the needs for flexibility, adaptability to change and overcoming environmental uncertainty, are among the biggest challenges facing a growing number of modern organizations.
The research study discusses various attempts by contemporary managers to catch up with environmental trends. It has focused on the impact of traditional ideas & management on the efficiency of the organization.
Based on the analysis of data collected the summary of findings and conclusion drawn, the following recommendations are hereby put forward;
- That managers should make it a responsibility to critically study environmental trends and also adapt to such trends in the environment that are relevant to the effective working of their organizations.
- That managers and organizations should adapt flexible organizational structures to make room for environmental dynamics.
- That managers should make creativity and innovation their watchword as they create the necessary atmosphere for employee creativity and business innovation.
- That managers who are the key agents of change should bring their subordinates to the knowledge of the fact that change is important if the organization must stay a float.
- Managers should adopt effective change management strategies as bedrock for organizational success.
- The managers should see environmental influences not as threat of failure but as opportunities for success.
- Managers must ensure to convert environmental stimuli into innovative ideas with which to compete efficiently.
- Managers should ensure to create and manage change and change programmes.
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