Action Research and Organizational Development

Full Answer Section

        Background Information XYZ Widget Company has experienced a significant decline in sales and market share over the past two years. Despite offering a higher-quality product at a higher production cost ($8) compared to competitor Jim's Widgets ($4), XYZ has lost market share to Jim's lower-priced offering ($9.99). This suggests potential issues with pricing strategy, marketing, or customer perception. Additionally, the CEO's reluctance to lower prices and subsequent cuts in sales commissions and layoffs could negatively impact employee morale. Organizational Chart [Insert a basic organizational chart here, including CEO, Sales Team, and any other relevant departments] Missing Step: Diagnosis and Feedback While the scenario mentions data gathering (sales figures, market share loss, competitor analysis), a crucial step seems missing: diagnosis and feedback. Action research emphasizes collaborative analysis of data to identify core issues and provide feedback to stakeholders (Lurey & Griffin, 2013). This step would involve in-depth analysis of sales data, customer feedback, competitor offerings, and internal communication practices. Interviews with sales representatives and potentially customers could provide valuable insights. Action Research Strategy Plan

1. Data Gathering and Diagnosis

• Conduct in-depth analysis of sales data to identify trends and customer purchase patterns.
• Gather customer feedback through surveys or focus groups to understand customer perceptions of XYZ widgets compared to competitors.
• Analyze competitor marketing and pricing strategies to understand their competitive advantage.
• Interview sales representatives to assess their experiences with sales goals, customer interactions, and overall morale.

2. Feedback

• Share findings from data analysis with relevant stakeholders, including the CEO, sales team, and potentially customer representatives.
• Facilitate group discussions to analyze the root causes of sales decline (e.g., pricing strategy, marketing effectiveness, customer service issues).

3. Planning Change

• Based on the feedback, develop a multi-pronged strategy to address identified issues. This may involve:
  • Pricing Strategy: Consider a price reduction or offer bundles with additional value (e.g., extended warranties, free accessories) to compete more effectively.
  • Marketing and Sales Strategies: Develop targeted marketing campaigns to highlight the quality and value proposition of XYZ widgets. Refine sales strategies and consider offering incentives or commission structures that motivate the sales team.
  • Customer Service: Analyze and improve customer service interactions to enhance customer satisfaction and loyalty.

4. Intervention

• Implement the chosen strategies and monitor their effectiveness through ongoing data collection and feedback loops.

5. Evaluation

• Regularly evaluate the impact of the implemented strategies on sales performance, market share, and employee morale.
• Make adjustments to the plan as needed based on the evaluation results.

Solutions to Increase Sales and Market Share Based on the potential issues identified, some possible solutions include:

• Price Adjustment: Consider a strategic price adjustment to be more competitive while maintaining profitability. This could involve slight price reductions, bundled offers, or targeted promotions.
• Enhanced Marketing: Develop targeted marketing campaigns emphasizing the superior quality and value proposition of XYZ widgets. Leverage multiple channels such as digital marketing, social media, and in-store promotions.
• Improved Customer Service: Analyze and improve customer service interactions to ensure a positive customer experience. This could involve training programs for sales representatives and streamlining customer support processes.

Employee Morale The CEO's cost-cutting measures (reduced commissions, layoffs) likely impacted employee morale negatively. Action research can help address this by:

• Open Communication: Organize open communication sessions with the CEO and sales team to address concerns and foster trust.
• Recognition and Reward Programs: Implement recognition and reward programs that incentivize sales representatives and motivate them to achieve goals.
• Training and Development Opportunities: Provide training and development opportunities to enhance employee skills and knowledge.

Timeline The timeframe for implementing the action research plan depends on the complexity of the chosen strategies. However, a realistic timeframe could be:

• Data gathering and diagnosis: 2-3 weeks
• Planning and intervention: 4-6 weeks
• Evaluation: Ongoing, with adjustments made as needed

Conclusion XYZ Widget Company faces challenges due to declining sales and market share. Applying action research can provide valuable insights into the root causes and allow for the development of a comprehensive strategy for recovery. By implementing a data-driven, collaborative approach, XYZ can regain market share, improve customer satisfaction, and enhance employee morale.    

Sample Solution

     

The Perils of XYZ Widget Company: An Action Research Approach

Introduction

This report presents an action research strategy plan for XYZ Widget Company, an organization facing declining sales and market share. The plan outlines the key phases of action research, gathers and analyzes data, suggests solutions, and addresses employee morale. The aim is to identify the root causes of declining sales, propose a strategy for recovery, and recommend methods to improve employee morale.