Organizational Context
Single Source Inc. was established in 1995. The company started as a single-line ICI distributor and became a PPG distributor in 1999 following an acquisition of ICI. It is among the largest national distributor of PPG paint for cars, commercial and industrial use, and all associated supplies. As the industry evolved, the company sought opportunities in industrial paints and launched the Industrial Coatings Division in 2013. The division provides the clients with paints and services required for a number of market and commercial applications. The company provides paints for machinery equipment, construction and heavy industrial equipment The Company provides an array of automotive collision centers through retail centers across the nation. The company has won a PPG platinum distributor of the year award in 2007, Platinum plus Achievement seven times and Strategic Shop Win Challenge five times. The company has an elaborate distribution channel with more than 70 locations countrywide in 20 states. The certified PPG technicians are sales representatives deliver service at all collision centers. With more than 100 vendors countrywide, the company provides its customers with contact points that provide services. The company utilizes the multi-shop organization structure where the MSO clients are provided with information on how to reduce costs and profits. The company provides its MSO clients with inventory control services; which is important to the success of collision centers. The company uses the Logic ICS software to track collision centers inventory with elaborate dashboards and reports. Single Source Inc. provides its MSO clients with knowledge of how to minimize costs inside their body shops through Point of Use carts. The company provides its clients MSO clients with business enrichment services where they monitor training and cost efficiency to keep the shops running at maximum potential. MSO’s are beneficial since they provide increase sells turnover, low operating cost, and low prices for customers.
Application
In the ever evolving business environment; it is crucial that companies engage in new initiatives and technology improvements to stay ahead of competition. John Kotter a leadership and management guru formulated an 8-step theory of change in his 1995 book Leading Change . This section will apply the first two steps of the theory to Single Source Inc. The first two steps are; creating urgency for change and forming powerful coalitions. In the first step, it is important for the company to create a sense of urgency around the need for change, that helps the managers and employees create purpose. To achieve this step the company needs to evaluate its strength, weakness, opportunities, threats and conducting honest dialogues with stakeholders. The company strengths include the fact that they have diversified their businesses to help them grow better by diversifying their business to industrial paints. The company specializes in customer service through the several branches countrywide where clients are provided with exceptional service. The Multiple shop system means that they are located in different places where they can know their customers better and feel their habits hence increases rapid sales turnover. The company also has a strong brand reputation and consistent financial performance. The company’s main weakness is that the paint industry clients’ change tastes and perceptions hence necessitating the company to change with trends. The company also faces intense competition from companies such as PPG Paints. The opportunities that present for Single Source Inc. include market penetration, acquisitions and innovations. The company can benefit from more penetration in the market; the company is only available in 20 states out of 50. Penetration to other markets will increase brand reach and availability. The company benefited from an acquisition it made in 1999; however, it can benefit from more partnerships and acquisitions in other states. As mentioned earlier the taste and preferences of clients changes all the time hence the need to establish strategies for constant change in products. the main threats facing the company include the increasing prices of raw materials and stringent government regulations concerning quality of products and manufacturing facilities as environment policies are given more emphasis. After conducting a SWOT analysis of the company, it is crucial that managers conduct honest conversation with stakeholders on the need for change to get the thinking. The second step involves forming a powerful coalition; it is in this step that a leader influences stakeholders to commit to and support change. First Single Source Inc. leaders need to identify influencers and stakeholders in the organization, secondly, they need to ask these individuals to commit to change; if these key individuals are not convinced nobody else will be. Finally the individual leading for change at the organization should create a coalition team through honest discussions and checking for weak points.
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Critical Analysis
The company has to utilize the first and second steps of the Kotter change theory in most aspects of their operations however they might benefit more if they emphasized on the first step. The company has failed to analyze its weaknesses efficiently; the company faces strong competition from companies such as PPG paints. Its main competitors mostly have strong brand presence in other countries and most states in the United States. The company is only available in 20 states hence it could benefit from a stronger brand presence. Additionally, the company needs to review its innovation strategy since the paint industry is evolving constantly. Single Source Inc. needs to change its strategies to accommodate new trends, customer trends and preferences. The gaps in theory implementation might arise from lack of support and commitment from leaders and stakeholders. Additionally, the gaps in implementation might have been due resulted from insufficient preparation in the first step consequently leading to resistance and conflict.
