Case Study Interlock Industries

Table Of Contents

INTRODUCTION

ANALYSIS
THE DRIVERS AND RESPONSES IN THE 21ST CENTURY
Changes approach
Effectiveness
Difficulties
MANAGEMENT AND META-MODEL APPROACH TO CHANGE
Approach
Effectiveness
Difficulties
DISCONTINUOUS CHANGE AND PROBLEMATIC CHANGE RESOLUTION
Approach
Effectiveness
Difficulties
CHANGE PROCESS
Approach to change
Effectiveness
Difficulties
CHANGE AND ORGANISATIONS
Changes approach
Effectiveness
Difficulties
CHANGE AND STRATEGY
Approach to Change
Effectiveness
Difficulties
ENTREPRENEURSHIP AND CHANGE
Change Approach
Effectiveness
Difficulties
LEADERSHIP IN INTERLOCK INDUSTRIES
Change Approach
Effectiveness
Difficulties

SYNTHESIS
ISSUE: INTERNAL OPERATIONS
ISSUE: PATENTS
ISSUE: INEFFECTIVE COMMUNICATION SYSTEM
ISSUE: LEADERSHIP

CONCLUSION

INTRODUCTION

The world in which business operates is continuously changing. Companies need to be susceptible and prepared to acknowledge the challenges that change presents and try to overcome these in order for the company to benefit. Pressures for change within a business can arise internally, from staff or management observing current processes, or from external pressures like changes in the economy. There are several pressures currently affecting large organizations, including changing markets, innovation (technological or otherwise), Total Quality Management, organisational structures, leadership status and HR perspective. Such pressures have been recognised and effectively managed by leaders at Interlock Industries; a New Zealand based multinational company concentrating most of their business at the Japanese market. Interlock Industries’ change management processes have been acknowledged as successful based on the following of the philosophies of Stuart Young, the Executive Chairman of the company. Through analysis of the Interlock case, it can be seen that Interlock is a company with a good relationship with foreign firms, strong leadership, processes designed to assist with innovation, quality and research and development, and the ability to continue to be prosperous and sustain competitive advantage into the future. In spite of this, issues have been identified concerning internal operations, patents, ineffective communications systems and leadership. Based on these findings, solutions have been provided that can be adopted to avoid potential company demise.

ANALYSIS

THE DRIVERS AND RESPONSES IN THE 21ST CENTURY

Changes approach

The ability to change and adapt is essential to survival in the uncertain business environment (Paul 2005, 5). In an international customer-driven environment, competitive advantage depends on an organisation’s ability to focus on its unique skills and capabilities, and build on and exploit these within a framework and culture of continuous improvement and innovation (Graetz et al. 2002, 16) This understanding is encouraged greatly at Interlock Industries and is demonstrated through their employment of an innovation pipeline, total quality management system and high standard of human resource practises.

Effectiveness

Interlock introduced workforce training in order to reach a higher level of confidence and skill level among employees. They also took the initiative to improve communication systems which provided benefits to the company in order to sustain their competitive advantages. In addition to such improvements, their willingness to operate in a global marketplace has increased the opportunities for the firm to expand its revenue by selling around the world (Charles 2005, 5). For example Stuart Young who came from New Zealand, targeted Japan as a new exporting market based on profit opportunities.

Difficulties

The global marketplace is very competitive. Globalisation of a business generates strong competition among companies. Interlock has to compete with products from progressive Asian countries such as Hong Kong, Taiwan and South Korea. In order to protect their products from becoming duplicated in these cheaper markets, Interlock was forced to invest in expensive patents resulting in an increase in their operation costs. Other than the cost increase, Interlock may face challenges in their products appealing to Japanese consumer tastes as what sells in New Zealand may not sell in Japan.

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