Organizational Structure Changes to Beat Competition in Market

Question: Explain the changes in organizational culture. Answer: Introduction Every organization operating in the competitive market has to go through some kind of changes. The main reason behind the changes is the competition in the market. Though 3D system was performing well, yet the competition has made it think of changing the business operations. However, changes in the internal environment are important along with the changes in the external environment. This write-up will focus on the changes that are required for 3D system within the organization as well as operations for outside the organization. A balance of between the internal and the external factors will give 3D system the strength to fight with the competitors and emerge as a winner. Changes in the organizational culture Figure 1: Four types of organizational culture (Source: Nica 2013) Until now 3D systems has been following a hierarchytype organizational culture. The hierarchytype organizational structure is structured and controlled (Wiewiora, Trigunarsyah, Murphy and Coffey 2013). They are more focussed on the positions of the employees and the managers in the organization. The roles and responsibilities of the employees are defined and the employees know about the seniority of the employees as compared to others. The junior employees also treat the senior employees with respect and the employees have a certain distinction (Hogan and Coote 2014). The tasks are also depended on the hierarchy of the employees. The CEO has been following the hierarchy-type organizational structure because he wanted to take 3D systems, to a new level. The CEO has been able to achieve the place where he wanted to be in. The only problem about the hierarchy-type organizational culture is that there is no informal relationship among the employees. At times, communication among the empl oyees and the interaction among the employees is necessary for the organization. Distinction of the roles the employees at items, give rise to unhealthy competition among the employees (Schneider, Ehrhart and Macey 2013). However, the recent competition in the market has made the managers to rethink about the organizational structure. To meet the competition in the market and prepare the employees to stay ahead in the race, the CEO has thought of implementing the market-type organizational culture. The market-type organizational culture is more focused on the business and competitions. It teaches the employees the necessary skills that are required to perform well in the external market (Bschgens, Bausch and Balkin 2013). By adhering to the market-type organizational culture, the CEO will be able to know the future of the external market and the type of competition that 3D systems might face in the future (Wang and Rafiq 2014). It will teach the employees to be well-coordinated and will give rise to cohesion among the employees and they will be able to understand the importance of working in a team and eventually they will be able to overcome the difficulties of competitions. Change in the leadership style As it has been discussed that 3D systems followed a hierarchy-type organizational culture, which means there had been distinction of positions and powers in the organization. This indicates that the employees shared a formal relationship and were more focussed on work. The CEO even followed and supported the transactional style of leadership. The transactional leadership style suggests that there will be reward and punishment in the organization (Hackman and Johnson 2013). The employees used to get the rewards if they perform well in the organization. If any of them employee did any mistake, the employees used to be punished by different means. The transactional leadership style, on one hand, made the employees perform better but it injected a sense of fear among the employees (Aydin, Sarier and Uysal 2013). The employees never asked about the well-being of each and other and never bothered to know if any of the employees is facing any problem (Cameron, Quinn, DeGraff and Thakor 2014 ). Thus, the level of competition among the employees rose rather than competition with the competitors. It is high time that the leadership style should be changes immediately. The leadership style of the CEO should be changed to transformational style of leadership. The transformational style of leadership makes the leader think about the employees and the development of the employees rather than putting the employees in pressure (Trivellas and Drimoussis 2013). The transformational leader helps the leader to understand mind set of the employees. Being a transformational leader, the CEO will not depend on the punishing and rewards (Roueche, Baker III and Rose 2014). He will try to input a sense of goodwill among the employees. The transformational leadership will be able to make the employees understand the importance of team work. When the employees will see that the leader is trying to think about the development of the employees, they will start working hard for the organizatio n (Bryman 2013). Eventually help the organization to face the hard times. During the time of competition, transformational leadership will be the best way to meet the challenges of the external market. Change in the marketing styles It can be seen that 3D system has specialised in both low-priced and high-priced 3D printers. Thus, it can be said that the products of 3D systems is up to the mark to meet the demands and need of the customers with many kind of budget. It is the duty of the 3D systems to make the customers know about the products. Moreover, the presence of 3D systems in the market is also helpful for the organization, as they have an idea about the trends of the market and the mindset of the customers. Though, the new entrants can pose threat for 3D systems, yet the applications of the new technology and marketing styles will help the organization to get a foothold in the competitive market. Thus, it is suggested that 3D systems should switch to online marketing. 3D systems should create a website of their own and start promoting their products online. They can take the help of free delivery to reach to the customers. The users can go through their website and select the products they want to buy an d 3D system will give them a free delivery to their home. It will be cost effective method for the organization as they do not have give the rent for the physical locations, staffs and other cost will be reduced (Lovelock, Patterson and Wirtz 2014). The online sites will help them to reach out more customers and if possible, even in the international locations. Other than creating a website, 3D systems can also use other types of online marketing as well. The best way to get a huge customer base is the social media (Hill, Jones and Schilling 2014). The company can crate page in the social media and publish advertisements regarding the services and the products of the company. The feedback of customers will help the organization to make them visible. The feedback of the customers will be even more helpful for the organization to make the alterations in the products, if required. The CEO should take the negative as well as the positive feedback positively. The online marketing will help 3D systems to get knowledge about the customers. The feedback of the customer might include the name of the new competitors in the market (Papadopoulos and Heslop 2014). Thus, it will be source of information for the organization to gain information about the competitors in the market. Another form of marketing that can help the organization is the e-mail marketing. 3D systems already have strong hold over the market (Foxall 2014). As a result, they have strong database of customers. By sending personalised mail and the special advertisements and offer will help the organization to draw more customers (Lusch and Vargo 2014). 3D systems should make use of their strong presence in the market to prosper in the market. PESTLE Analysis Political The political condition of the United States is stable. Hence, 3D system would not have any problem in expanding the business. The United States being a developed country, the government will support any type of development in the technological front in the country. Economic The United States is a developed country, hence, the chance of economic problems is much less in the country. However, the recession will always remain a threat for the company. thus, the organization should be prepared for any kind of economic downturn in the country Social 3D system has been operating in the market for the past four years. Hence, it has been able to connect with the citizens of that place. Even if 3D systems try to expand the business, the company should keep check on the social needs and demands of the people and then make the changes. Technological The United States is the perfect platform for 3D system to grow. On the other hand, the external environment for 3D systems will be competitive one. The market is full of companies that produce printers; hence, 3D systems will have to face tough competition from the market. Legal Whenever an organization is dealing with systems that have certain technological specification, they are open to various legal problems that are related to the use of ethical use of technology. Thus, 3D systems should keep all the legal documents clear so that it does not get into any trouble. Environmental Whenever an organization is involved in producing staffs that are related to information technology, the chances of the technological waste polluting the environment is quite high. Thus, 3D system should give special attention to the wastes that it does not pollute the environment. SWOT Analysis Strength The presence of 3D system for the past four years is the biggest strength. it has been through all the adverse situation and have been able to know the opportunities in the market that they will be able to use The manufacturing cost of the printers is less and hence, it helps the organization to provide the customers with cheap printers Weakness The hierarchal type organizational culture made the employees less focused on the competition in the market. The transactional leadership style has made the employees to work under pressure Opportunities As 3D system has a strong market presence, it will help the organization to know the opportunities and the threats and prepare itself for the future issues. The customers who have a tight budget will first come to 3D system to look for cheaper printers. Thus, it will help 3D systems to gain more customers from the market than any other organization. Threat The companies that followed the market-type organization culture might have already advanced in the marketing techniques and will have better idea about implementation of the marketing techniques than 3D system The organizations that have already implemented the transformational style have better work culture. 3D system will take time to match up with those companies that have a close internal bond among each other. Best-suited business model Finally, merging with another company will be the best-suited business model that the CEO can look out to gain strength. The online marketing will highlight them in the market. Thus, merging with another organization will become easier. 3D system can merge with another international organization to gain momentum in the competitive market. The business ideas of another organization along with the ideas of 3D system will act as great support to 3D system and wit will be able to face new companies who are coming in the market. Conclusion It is concluded from the write-up that there is a need to change the organizational culture, the leadership style and the marketing style. It is important that 3D system adopt a new business model that will help the organization to fight the challenges. 3D system followed the hierarchy-type organizational culture, which needs to be changed to market-type organizational culture. 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