Trident University International
MGT423 Organizational Development and Change Module 1 Case
MGT423 Organizational Development and Change Dr.Virginia Johnson
August 16th, 2020
ORGANIZATIONAL DEVELOPMENT AND CHANGE
...
Trident University International
MGT423 Organizational Development and Change Module 1 Case
MGT423 Organizational Development and Change Dr.Virginia Johnson
August 16th, 2020
ORGANIZATIONAL DEVELOPMENT AND CHANGE MODULE 1 CASE
The XYZ Widget Company
The XYZ Widget Company is experiencing a decline in sales, which cannot be easily
explained by anyone in the company, including its CEO. This may not be so far-fetched from
reality as many companies suffer from revenue decline without being able to pinpoint the reason.
“In today’s world of little or no economic growth and rapid technological change, more and more
companies are being faced with the need to cope with an end game” (Kathryn & Porter 2014).
The Decrease in Sales
For XYZ Widget Company, the reason for the decline in sales may not be obvious but
can be narrowed down to a cause and eventually addressed. XYZ Widget Company has been
producing widgets selling, on average, three per customer per year, but in the last two years, the
company has lost a market share of 20%. This market share decline has resulted in $1.5 million
in lost sales. A competitor, Jim’s Widgets company, has gained a 12% market share, possibly due
to their ability to offer a similar product for less than 50% of the price XYZ Widget Company
charges for their product.
The competition can be considered the primary reason why the sales have declined for
XYZ Widget Company. Customers looking for widgets now have other options to buy from and
at a better price. As the scenario states, the CEO of XYZ Widget Company is reluctant to lower
prices to remain competitive; this also becomes a factor in the decline of sales for the Company.
In order for the XYZ Widget Company to gain the market share back and possibly
increase it, the issues that brought the company to this point must be identified and addressed by
using the action research strate
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