Barnes and Nobel Case Study

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Business Finance

Tiffin University

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please se the attached assignment and reading that is to be used. Please have sufficient knowledge in business organization and the vocabulary to back it up.

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Surname 1 Student Name: Abdullah Alharbi Tiffin University Date: January 31, 3019 Case Analysis Problem statement Space utilization is the prevailing problem as the five0year plan suggests that the business is bound to grow that will lead to increase in partners, managers, staff, and associate partners. This anticipated growth in staff will call for action to accommodate all the staff members. Based on the interview results, there are basically two options available for the Royce Consulting. The first option involves continuing with the use of the current private offices while either leasing an additional floor in the same building that will cost the firm, $360,000 annually. Alternatively, the firm can continue with the current private offices but build another floor that will cost the organization a one-time cost of $600,000. The second option is for the firm is to opt for hoteling offices and upgrade the company’s office technology. The second option will only cost the firm a onetime cost of $190,000. While the hotel offices are the most suitable alternative, most managers have expressed their discontentment in the use of hotel offices. Based on the managers’ sentiments, it is most likely this move will negatively affect their productivity. Analysis Hotel offices are the most suitable course of action for Royce Consulting. Currently, the firm is spending a lot of resources on office cost for unoccupied offices that leads to additional unwanted costs. Since 60% of the offices are unoccupied most of the time, this means that the company is wasting a significant amount of money in maintaining and keeping offices that are Surname 2 often unoccupied. Additionally, with the anticipated rise in staff, the demand for more offices is bound to increases. Considering the costs associated with leasing or building an additional floor, hotel offices as identified by the partners is the most suitable option. However, all the managers are not willing to relocate to hotel offices due to repercussions such confidentiality of their files. While all the arguments made by the managers against the hotel offices are valid, these offices remain the most suitable alternative. Additionally, since the partners are responsible for making the final decisions and have agreed to the hotel offices, this is the course of action most likely to be adopted by the firm. Change resistance is a common phenomenon for any organization undergoing a major change in its operations. Similarly, the managers at Royce Consulting are portraying the same resistance to change. As a result, it is imperative for the partners to help the managers successfully undergo the change. In order to minimize the resistance, the partners have to help the managers understand why the change is necessary and what is in for them when the change is successfully procured. Educating the managers on the importance and advantages of the hotel offices over the other options will minimize their resistance. This will involve educating them on what is in for them when the change is successfully procured. In this case, the hotel offices will come with an upgrade in electronic technology that will make communication easier. Since electronic technology is already an issue for the company, the upgrade will work to the benefit of the managers. Therefore, helping the managers understand the benefits of the change to them will make it easier to implement the new offices. As two of the managers noted, the upgraded technology will make the change more bearable. Additionally, the managers proposed that their secretaries be provided to the same upgrade as well. Thus, in order to minimize the managers’ resistance and address some of their grievances, Surname 3 upgrading the entire electronic technology for the firm will bring positive outcome for the change. Communication throughout the change process is also imperative in ensuring successful transitioning to the new hotel offices. The partners should establish open communication with the managers and constantly seek the feedback of the managers on the effectiveness and efficiency of the new offices. Any issues raised by the managers should be addressed on time and measures to minimize managers’ discomfort at the new offices introduced. Further, more incentives should also be introduced to increase the managers’ satisfaction with their jobs. Since the new offices have the shortcoming of lowering the managers’ productivity, introducing incentives such as cash bonuses and gift cards, point systems, and privilege rewards will enhance the managers’ motivation. Motivating the managers is a crucial step in ensuring success of the hotel offices and ensuring that the firm continues to excel in its field. Recommendations The most recommended course of action for the firm is using hotel offices to minimize the costs. These offices are affordable and at the same time convenient. While there is anticipated resistance from the managers, getting ahead of the change and implementing incentives and educating the employees on the change will guarantee positive outcome. The employees shouldn’t be made to feel like they do not have a choice but to undergo the change since the partners have made the change. On the contrary, the managers should understand that they are part of the change that is driven towards bettering the firm and not inconveniencing them. This will require a lot of communication on the part of the partners with frequent initiatives established to address the managers’ obstacles in their process of adapting to the new offices. The confidentiality issue regarding the files that will be centralized should also be addressed. The central room for holding Surname 4 the files should be protected and highest form of privacy introduced. Not everyone should be allowed to the room and clearance should be required to access the files. Additionally, incentives are paramount in keeping the managers motivated and enhancing their productivity. Incentives such as cash bonuses and gift cards, point systems, and privilege rewards should be introduced to help the managers settle in their new environment. The technology update should be applied to all sectors of the firm to help the managers feel part of the firm’s decision-making process and understand that their opinion matter since they suggested having their secretaries have the same upgrade. The successful implementation of these strategies will ensure successfully transition of the firm’s managers to the new hotel offices. Surname 1 Student Name: Abdullah Alharbi Tiffin University Date: January 31, 3019 Case Analysis Problem statement Space utilization is the prevailing problem as the five0year plan suggests that the business is bound to grow that will lead to increase in partners, managers, staff, and associate partners. This anticipated growth in staff will call for action to accommodate all the staff members. Based on the interview results, there are basically two options available for the Royce Consulting. The first option involves continuing with the use of the current private offices while either leasing an additional floor in the same building that will cost the firm, $360,000 annually. Alternatively, the firm can continue with the current private offices but build another floor that will cost the organization a one-time cost of $600,000. The second option is for the firm is to opt for hoteling offices and upgrade the company’s office technology. The second option will only cost the firm a onetime cost of $190,000. While the hotel offices are the most suitable alternative, most managers have expressed their discontentment in the use of hotel offices. Based on the managers’ sentiments, it is most likely this move will negatively affect their productivity. Analysis Hotel offices are the most suitable course of action for Royce Consulting. Currently, the firm is spending a lot of resources on office cost for unoccupied offices that leads to additional unwanted costs. Since 60% of the offices are unoccupied most of the time, this means that the company is wasting a significant amount of money in maintaining and keeping offices that are Surname 2 often unoccupied. Additionally, with the anticipated rise in staff, the demand for more offices is bound to increases. Considering the costs associated with leasing or building an additional floor, hotel offices as identified by the partners is the most suitable option. However, all the managers are not willing to relocate to hotel offices due to repercussions such confidentiality of their files. While all the arguments made by the managers against the hotel offices are valid, these offices remain the most suitable alternative. Additionally, since the partners are responsible for making the final decisions and have agreed to the hotel offices, this is the course of action most likely to be adopted by the firm. Change resistance is a common phenomenon for any organization undergoing a major change in its operations. Similarly, the managers at Royce Consulting are portraying the same resistance to change. As a result, it is imperative for the partners to help the managers successfully undergo the change. In order to minimize the resistance, the partners have to help the managers understand why the change is necessary and what is in for them when the change is successfully procured. Educating the managers on the importance and advantages of the hotel offices over the other options will minimize their resistance. This will involve educating them on what is in for them when the change is successfully procured. In this case, the hotel offices will come with an upgrade in electronic technology that will make communication easier. Since electronic technology is already an issue for the company, the upgrade will work to the benefit of the managers. Therefore, helping the managers understand the benefits of the change to them will make it easier to implement the new offices. As two of the managers noted, the upgraded technology will make the change more bearable. Additionally, the managers proposed that their secretaries be provided to the same upgrade as well. Thus, in order to minimize the managers’ resistance and address some of their grievances, Surname 3 upgrading the entire electronic technology for the firm will bring positive outcome for the change. Communication throughout the change process is also imperative in ensuring successful transitioning to the new hotel offices. The partners should establish open communication with the managers and constantly seek the feedback of the managers on the effectiveness and efficiency of the new offices. Any issues raised by the managers should be addressed on time and measures to minimize managers’ discomfort at the new offices introduced. Further, more incentives should also be introduced to increase the managers’ satisfaction with their jobs. Since the new offices have the shortcoming of lowering the managers’ productivity, introducing incentives such as cash bonuses and gift cards, point systems, and privilege rewards will enhance the managers’ motivation. Motivating the managers is a crucial step in ensuring success of the hotel offices and ensuring that the firm continues to excel in its field. Recommendations The most recommended course of action for the firm is using hotel offices to minimize the costs. These offices are affordable and at the same time convenient. While there is anticipated resistance from the managers, getting ahead of the change and implementing incentives and educating the employees on the change will guarantee positive outcome. The employees shouldn’t be made to feel like they do not have a choice but to undergo the change since the partners have made the change. On the contrary, the managers should understand that they are part of the change that is driven towards bettering the firm and not inconveniencing them. This will require a lot of communication on the part of the partners with frequent initiatives established to address the managers’ obstacles in their process of adapting to the new offices. The confidentiality issue regarding the files that will be centralized should also be addressed. The central room for holding Surname 4 the files should be protected and highest form of privacy introduced. Not everyone should be allowed to the room and clearance should be required to access the files. Additionally, incentives are paramount in keeping the managers motivated and enhancing their productivity. Incentives such as cash bonuses and gift cards, point systems, and privilege rewards should be introduced to help the managers settle in their new environment. The technology update should be applied to all sectors of the firm to help the managers feel part of the firm’s decision-making process and understand that their opinion matter since they suggested having their secretaries have the same upgrade. The successful implementation of these strategies will ensure successfully transition of the firm’s managers to the new hotel offices.
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Running head: CASE STUDY

1

Case Study: Can This Bookstore Be Saved?
Student’s Name
Institutional Affiliation

CASE STUDY

2
Case Study: Can This Bookstore Be Saved?

Summary
Growth of the internet and the rise of internet businesses has led to the closure of
previously dominant brick-and-mortar businesses that could not adapt. Barnes & Noble is among
those that survived. Having been a market leader for over 20 years, B&N was unbeatable. In the
80s, B&N considered launching an online bookstore but delayed until it was beaten by Amazon.
B&N started its online bookstore 2 years later. From then on, Amazon stayed ahead of the curve
in innovation and sales. B&N bought Fictionwise in early 2009 to compete against Kindle ereader. Two months later in July, it launched its e-bookstore and later its Nook e-reader. Price
wars between B&N and Amazon ensued with Amazon emerging top with a price difference of
$10 below Nook.
B&N has retained its brick-and-mortar stores. Although trying to compete, B&N does not
have a global reach. Amazon now controls about 60 percent of U.S. digital book market while
B&N continues to lose at 25 percent. Due to major loses with the Nook, B&N decided to
suspend production of colored...


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