Also, there should be a target of assigning the necessary resources to the segments that are being profitable. This strategy might not be immediately very profitable, as there will probably be some more inherent costs, even though some profit is expected, which will help in the company's actual financial situation. It is essential to start thinking about producing and marketing new products with the same characteristics which the actual consumers need. The products that the customers want to be on the market should be concentrated on, rather than continuing to offer the same customized products.
I have learned from this simulation that in order to create demand, there has to be adequate investment in hiring of sales offices, web centers, customer service, promotions and advertising. I feel that for better profitability, there must be good relations with suppliers and customers. "Effective change requires reinforcing new behaviors, attitudes and organizational practices" (Kreitner & Kinicki, 2004). Also, having the right products, in the exact moment seems to require quite some time, and I think this is another important issue to be considered. When an organisation has produced the right product or services, they would want to deliver it according to current products and happenings in the actual market, and also according to what the competition is doing. I think it is important for the company to examine what the priorities are, and to review the currently established brand service prices.
Effectiveness of Strategy
According to Kreitner and Kinicki, there are three stages in this strategy or model of planned change, and this strategy is instrumental in initiating, managing and stabilizing the change process.
The three stages of planned change are unfreezing, changing, and refreezing. Unfreezing focuses on creating the motivation to change, changing focuses on providing employees with new information, behavioral models and new ways of looking at things. Refreezing is the final stage used to help employees integrate the changed behavior into the every day process of doing business. Once employees are provided the opportunity to exhibit the new behavior, positive reinforcement is needed to reinforce the desire change (Kreitner & Kinicki, 2004)
Kreitner, R., Kinicki, A. (2003). Organizational behavior 6e. New York: The McGraw-
Hill Companies. Retrieved February 12, 2007 from University of Phoenix
Resource, MBA520 Resource optimization website