Company X and Its Performance in the Global Environment


Promoting change in the context of an organization requires substantial resources due to the need to address the emergent problems and keep the system viable (Pyzdek & Keller, 2014a). As the previous cause-and-effect analysis has shown, Company X is suffering from the lack of motivation among the employees and the inability to apply a new information management approach. However, a reconsideration of the current leadership strategy and the introduction of several incentives can be viewed as a sensible approach toward facilitating change in the context of a soon-to-be global retail organization (Heerkens, 2013).

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It is suggested that the following steps should be taken prior to transferring from the current data management approach to building a global supply chain:

  1. Shift from company-focused to stakeholder-focused value system;
  2. Leadership strategy change from laissez-faire to transformative;
  3. Benefits and public appraisals system;
  4. OB model design;
  5. In-depth training program.

Last but not least, the training program that will help the staff acquire the necessary skills and apply them successfully to specific scenarios is required. It is essential that a 40-hour program should help them apply critical thinking as opposed to learning the necessary steps by heart.

Time and Costs

Given the fact that the staff will spend an hour per day to learn new information and train the corresponding skills, the program is expected to take approximately two months. Naturally, it will be necessary to keep in mind that there is a possibility for unexpected obstacles to emerge. Thus, it will be a sensible step to create room for an extra week of training.

Though aimed primarily at training the skills related to cooperation and problem management, the program will unavoidably require substantial financial resources. As the table provided below shows, Company X will take significant expenses.

Type Amount ($) Number Total ($)
Software costs 1,725 20 34,500
Hardware costs 1,000 20 20,000
Infrastructure costs 5,000 1 5,000
Implementation costs 2,000 1 2,000
Employee Benefit Package (annual) 64,200 20 128,400
Instructors’ salaries (total) 120,000 N/A 120,000
Total 13,021,500

To avoid disturbances in the entrepreneurship’s financial framework, one will have to apply the principle of sustainable resources usage. Seeing that the procurement-related processes do not require much money at present, it will be necessary to cut some of the costs for the transportation processes by choosing cheaper options and redirect the resources to the training process and the provision of incentives for the staff.


Naturally, the implementation of the above steps is fraught with numerous risks for the entrepreneurship. First and moist obvious, there is a threat that the people involved will be against the newly adopted principles of the company’s operations. Changing the traditional behavioral patterns is a challenging process, and, when failing to motivate the employees, a manager is likely to suffer significant expenses (Pyzdek & Keller, 2014b).

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Additionally, the production process may be slackened once the staff accepts the new principles of operation and starts training new skills and testing the new operation trajectories. As a result, the income rates of the firm will be reduced. More importantly, the customer satisfaction rates may drop (Trendowicz, 2013).

Risk Management

The above issues can be managed by introducing a sustainable principle of resources management and a training program that will help the staff acquire the necessary skills gradually. As a result, the shift from the current principle of information management and resources usage can be conducted in a mildly challenging manner that will leave enough room for the managers to be flexible in the choice of information management tools and production process techniques. A sustainable use of the existing resources, including the human ones, thus, should be viewed as the primary means of promoting change.

Reference List

Heerkens, G. R. (2013). Project management, second edition (Briefcase Books Series) (2nd ed.). New York, NY: McGraw-Hill Professional.

Pyzdek, T. & Keller, P. (2014a).Control/verify phase. In The Six Sigma handbook (4th ed.) (pp. 585-600). New York, NY: McGraw-Hill.

Pyzdek, T. & Keller, P. (2014b). The Improve/design phase. In The Six Sigma handbook (4th ed.) (pp. 521-584). New York, NY: McGraw-Hill.

Trendowicz, A. (2013). Software cost estimation, benchmarking, and risk assessment: The software decision-makers’ guide to predictable software development. New York, NY: Springer Science & Business Media.

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