In order to analyse the change of management in Xerox, it is necessary to adopt many management theories to analyse friction by friction. PEST analysis, comprising of Political, Economical, sociocultural and technological factors, according to which the marketing environment is made up of three aspects, internal environment, micro environment, macro environment etc. The internal environment consists of staff that is also called internal customers, office technology, wages and finance etc. Micro environment is external customers, agents and distributors, suppliers, out competitors etc. Macro environment consists of Political and legal forces, economic forces, sociocultural forces and technological forces etc. PEST is concerned only with the Macro Environment, which is concerned with the production of the company.
"The first is efficiency in the production of a given set of outputs. That is, with a given capital stock a given technology and a given set of resource prices, firms should be producing goods and services with a minimum expenditure of the economy's resources," (Cyert, 1988, p.36).
Xerox had to overcome many problems while going through Change Management. It could not compete with the Japanese competitors because of high manufacturing cost. Internal culture and leadership suffered due to mindsets bordering towards complacent inertia. ...