ACQUISITION AND REJUVENATION of a
Leading Consumer Goods Supermarket in Trinidad and Tobago
Abstract:
This paper exhausts the strategic
analysis, strategic choice and strategic implementation opportunities available
for an organisational rejuvenation project success factors in the consumer
industry in Trinidad in 2006. As a theoretical and practical marriage, this
paper examines and applies leading business model, to arrive at an
implementation scheme for project success!
In April 2006, BL’s Supermarket (Trinidad)
Limited announced its acquisition of MG’s Supermarket with the intent for
resale. As one of BL’s wholesale customers, fully staffed, manually operated
and under performing, MG’s was acquired below market value. This project is
structured within an adaptation of Johnson et al (2005) “Elements of Strategic
Management Framework” as the author proposes a new vision for the acquired.
Management in adopting a
consultancy, researcher and participative observer approach in proposal of this
new vision, derived information through data triangulation, comprising the
collection of quantitative and qualitative data from primary and secondary
sources including census, staff interviews, sampling, surveyed focus groups and
customers. Utilizing analytical and predictive research data analysis, and
coding methods, part one of this report
presents BL’s corporate strategy and stakeholder analysis as well as
macroeconomic variables that locally and regionally dictate and influence the
sector, industry and competitor environment. Inspection of BL’s microeconomics
exploiting the Mc Kinsey 7 S Model, and a recent MG’s customer survey and
Geographical segment analysis, is undertaken to arrive at a capability
assessment and Gap analysis.
Part two
commences with two projected scenarios, the options available to BL’s and a
vision for MG’s. Option evaluation is considered utilizing The Henley Strategic
Change Model. A Cost Benefit and Resource Analysis aids in justifying the
suitability, feasibility and acceptability of this emergent forward vertical
and horizontal integration strategy. The impact of rejuvenation is explored, offering
a preventative and proactive risk management diagnosis, geared at exploding
BL’s presence in the marketplace, with particular reference to resource,
cultural, competitive and service impacts, exceeding customer expectations and
optimizing shareholder value for future sustainability.
In recognition
of Kotter (2000) Eight Steps to Transforming Your Organisation, part three
tenders a change programme against the Henley Transformation Model, for the
birth of BL’s new outlet, detailing milestone and responsibility charts. A
revolutionary fundamental transformation within a stipulated three month
timeframe is designed and agreed upon, under the appointed leadership of BL’s Operations Manager (OM)
as Change Agent and MG’s new General
Manager (OGM). The BSC highlights key objectives, while the transference of
procedures and company policies is undertaken.
Change path commences with an
immediate reconstructional realignment through infrastructural upgrade and the
focused deployment of training programmes for MG’s retained staff and new
recruits. Change espouses a top-down approach, embracing a participative,
directive and educational style, with
behavioural and output targets that affect all levers. Lengel & Daft (1988), effective
communication media usage is utilised to engender intense commitment and
monitoring for change. With
heavy emphasis on the retail floor for customer service and quality focusing,
the Garrison’s Contingency Model (2002) highlights the key operational drivers for cultural
shifting, cultural shock containment and risk minimization against the
performance parameters and training package designed in recognition of Heskett
et al (1994). With the transference and
flexibility of BL’s performance and reward management practices and policies,
monitoring methodologies have to be initially embarked upon on a weekly and
monthly basis during the probationary period. BL’s learning organisation is
synergized in awareness of Pedler, Boydell and Burgoyne (1991) to sustain the
added value and impact of knowledge management towards attaining and
maintaining the vision of market and industry leadership.
