Leading change in Haworth Asia Pacific case study Assignment

Leading change in Haworth Asia Pacific case study - Assignment Example Finally the paper presents a guideline for Haworth Asia to manage the change journey in the near future. The guidelines present some standard tools and checklists that may help Frank Rexach in mapping an action plan for the future. 2. Case Summary and Key Issues 2.1 Introduction Haworth Asia is the second largest designer and manufacturer for contract office furniture and has recently started its second round of global expansion. The company wants to move towards a business model which works in a more integrative way. This will be a change from their present model in which sourcing and product development happens largely in isolation in different parts of the world. Thus the case was about a company which was a global organization and has to manage issues that are relevant to international marketing or international finance. The company also has to manage cross cultural management. 2.2 Office Furniture Industry Haworth is one of the four global leaders in the contract office furnitur e industry along with Steelcase, Herman Miller and Teknion. Haworth has been the most aggressive when it comes to global expansion, with presence in Europe, Australia and China. There are different strategies for global expansion and Haworth has been inclined towards acquisitions and others have been more inclined towards joint ventures. In joint ventures or agency relationships, these companies have to bear with agents or partners who try to push their own cheaper products to customers. Any corporation can adopt different methods to expand internationally. As was mentioned in the case Haworth has been able to choose its preferred mode expansion, partly because it was a private corporation. Normally a company starts with joint ventures or agency relations as it expands internationally. The tactics of Haworth, to expand with direct acquisitions, will be considered aggressive by most standards.   2.3  Ã‚   Haworth Asia Pacific Haworth is a private company which has worked to their advantage when it comes to global expansion. Their large competitors have to meet the near term expectations of financial markets, which can be a disadvantage during times of financial crisis (even though the crisis may be due to factors completely external to the furniture business, as in this case it was the dot com bubble burst). Haworth is a global organization since the product design and development takes place largely in USA and Europe, while the sourcing happens largely in Asia, and most of the clients are large multinationals. Haworth Asia pacific differs from Haworth operations in the USA, since Haworth Asia manages both manufacturing and client interaction. In USA, dealers manage the client interface. Haworth Asia was also considering targeting medium-priced segments since they have access to cheap labour and raw material. So when Haworth Asia Pacific decides to shift its head office from Hong Kong to Shanghai, they will be confronted with a unique challenge. For the fir st time in the history and culture of Haworth, the functions of manufacturing and marketing will be reporting to the same leaders. The conflicts and frictions that are usually between manufacturing and marketing in most industry can occur in Haworth Asia Pacific as well. They merit thorough consideration and analysis. 2.4  Ã‚   Market Analysis Haworth Asia was number two or three in all the markets, but in all the markets there

Sustainable Management Futures. Free Markets and Governments Essay

Sustainable Management Futures. Free Markets and Governments - Essay Example Some scholars go to the extent that the government shouldn’t even engage in public spending on health, education and other necessities. ( Reisman, J., 1998) With such a non-egalitarian orientation, the government’s role in a free market system is confined to the role of a spectator while the market ensures that the efficient businessmen are rewarded with profits. -THE SOCIAL COSTS OF THE INVISIBLE HAND Classical economists such as Adam Smith claim that a free market is bound to create growth, that the invisible hand in an unregulated market fosters growth of efficient market mechanisms. Even after almost three centuries having passed by after the evolution of this notion, the free market is still deemed as an ideal model, but its promised benefits to society are now being viewed as rather utopian in nature. The dynamics of an unregulated free market are seen as quite reminiscent of Social Darwinism. The market favors the efficient few who own the means of production. ( Stiglitz, J., 2011) The free market functions in such a way that formation of separate classes is inevitable. Much attention has been paid to the rise of the industrial bourgeoisie and the proletariat. The former owning the means of production and making profits, while the former providing labor and earning wages. While the free market is said to have provided opportunities for both, the sheer magnitude of the unequal share of rewards has raised skepticism to the social benefits of a free market. -FREE MARKETS IN THE CONTEMPORARY WORLD The recent global economic crisis is said to have been the result of unregulated free markets. The role of governments is now being brought into perspective again, as the government is the very entity that is assisting in stabilizing the markets with massive bailout packages. The enormous growth rates exhibited during the pre-recession period were phenomenal, but a retrospective analysis suggests that they were unsustainable. The major fuel for recent economic growth has been the availability of capital. Lenient credit policies have paved way for expanding markets but not much attention has been paid to the costs of such confidence based growth. The common man, encouraged by growth-driven corporations has increased consumption, with the assumption that incomes will rise simultaneously. This spiral might exist for a limited time, but when it stops, the market eventually collapses. Unregulated economic growth has led to the resurfacing of a plethora of subprime lending and major Ponzi schemes. (Stiglitz, J.,2011 ) Economic growth does in fact lead to improving social indicators. Ever since capitalism has become the popular form of economic governance around the world, per capita inflation-adjusted income has risen from $5,400 in 1980 to $8,500 in 2005. (Shleifer, A., 2009) While educational and health figures have improved, the north-south orientation of this growth has been noticed as well. While social indicators have improved i n some areas and strata of the population, other portions remain unaffected. For instance, the top 1% of the income earners in United States have 24% share in the overall incomes generated. (Timothy, N. 2010) -THE NEED OF A MEDIATOR- THE GOVERNMENT: The concept of a welfare state arises from the notion that the