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By Group No 2
IT
inspire it follower, extra ordinary effect on follower Inspire the whole team Encourage new idea. Innovative idea
Product Restructuring
Restructuring
products is another way for companies to transform. One example of a company that achieved transformational change by altering its product line is Apple Computer. In 1996, Apple was losing money and had very little market share when it purchased former owner Steve Jobs' software company, NeXT. In 1997, Jobs become CEO of Apple and began restructuring the product line, placing greater emphasis on style and the use of proprietary operating systems, rather than systems it licensed from other designers.
Market Repositioning
Some
companies undergo transformational change in order to reposition themselves in the market, or to re-brand themselves. McDonald's is one example of this. In 2006, McDonald's suffered its first-ever quarterly loss, and the company was under fire from anti-obesity and anti-junk-food campaigners. Under direction from CEO John Skinner, McDonald's began transforming its culture, adding espresso drinks and healthier menu items and updating the look of its stores -- focusing on what its customers really wanted. By becoming more customer-focused, McDonald's built a culture of caring and empathy that brought it back into profit.
Transformational Leadership
A transformational leader is often responsible for challenging an organization's existing structure and inspiring employees to work harder and take the company forward. These leaders bring about transformational change through their vision and drive. One example is now-retired IBM CEO Lou Gerstner. In 1983, IBM had $8 billion in losses and was close to bankruptcy. Gerstner felt IBM had become too rigid and unable to change or adapt, and he set about changing the culture to one of teamwork, creativity and innovation. Gerstner fostered cooperation among employees and made the company more customerfocused. He did this by making tough decisions, sticking with them and modeling the behavior he wanted to see.
started as a transformational company, creating a fan base among consumers who felt that Apple computers offer more user-friendly features than PCs in 1976 The company has transformed itself from a competitor trying to make laptops and desktop computers to a company that makes handheld devices A transformational company often has to risk being a leader rather than becoming a better follower. The company has continued to transform itself and is in some ways leaving the old computer model behind with the iPad, the iPhone and the iPod
Starbukcks Change
Starbukcks did not transform itself -- it transformed an industry. Founder Howard Shultz was impressed with espresso bars in Milan and decided to create a shop where a sense of community was as important as the coffee. The resulting phenomenon of Starbucks is testament to the fact that influencing the customer's perception of your organization can be as important as what you sell. Many times, organizational transformation involves intangibles.
Change in IBM
International Business Machines transformed itself from a company selling large mainframes as its primary product into a company that has a global reach and is considered vital to the functioning of millions of businesses. It did this by creating a better focus on client needs, differentiating itself in the marketplace and improving its handling of finances. This transformation took a decade, according to Chairman, President and Chief Executive Officer Samuel J. Palmisano. Transformational organizations such as IBM usually have a charismatic leader who can communicate a strong new vision