Introduction:Ledge Ltd. is a company that develop the technology of audio and video systems, producing digital production with high reputation in market. As a manufacturing staff in this company, assembling the required finished products and delivering them to stock holders are the mainly responsibility. In order to improve the efficiency, the specific work task of my work had reallocation. At the first, I not only produce the finished products, also need record the used stock, by the end, I just focus on manufacture, in other words, my work had reduced. After this change, manufacturing staff focus on production to save much time and complete more orders. In addition, manufacturing department is close related with R&D department, I need learn how to produce new production that start to enter market from R&D staffs. In the beginning of simulation, these two departments lack of communication, company realized this problem and improved it until the battery explosion happened. Except for these individual changes, there are two main changes in Ledge company. The first one is product strategy change, during the whole simulation, manufacturing department manager experienced personnel alteration situation, and cut several production lines that need much time and had low profit after managers’ meeting. This organizational change make company keep in a high efficiency with high return level compared with the begin stage. The next one is the change of attitude. Because the frequent orders cancellations in the first day, the whole company atmosphere made staffs be anxious and nervous. Some staffs start to lose their hearts for company, in a state of negative sabotage. With the company’ management system improve and the workflows optimize, staffs attitude from negative shift to positive, meanwhile willing to take part in the other organizational changes.Question 1:Based on the above changes, I think the mainly change in Ledge Ltd is product strategy change. The reason why I chose this one is making better use of labour resource, and manufacture is the main activity in the whole company operation. These cut lines need much time with low profitability, it is difficult to achieve company profit target timely. In the first day, due to low degree of proficiency and no inventory awareness, a lot of orders can not delivery to customer on time and be canceled. This problem made customer defection rate arose and not achieve the first day profit target. Besides, in the final day, Research & Development department create new product lines that have high profit and low cost. In the following part, I will analyse why do this change and what impacts it have.External causes:1.Competitive market: In term of external causes, the first factor is extremely competitive personal digital entertainment market. The Cube and Mole production of Ledge meet competitors who has cheaper and similar quality products, like Vida and iHear. In the earlier stage, the orders focus on Cube 8GB&16GB, which require complex assemble technology and lot of time. So there is a failure in the first day. When the competitors have advantage in delivery lead time, the customer be shared. This is a reason why cut these two types in the second day, meanwhile we faced the similar situation in the following stage and decide to cancel the whole Cube line and Mole 64GB. There is no obvious advantage on these low profitability product lines so that need to change.2.Supplier: Another cause is from supplier. There is a lack of communication between Ledge and PPS company, which lead to the inadequate training about new battery use, so when salesman promoted finished products in market triggered a serious nuclear leakage accident and battery explosion that damaged Ledge’ reputation and paid a lot of compensation. After these mistakes, company faced the crisis of confidence, indicating we need to stop the condemned goods production and find more new customers. So this is the reason why change the product strategy.Internal causes:1.Human resource allocation change. In the end of second day simulation, based on the previous situation, some staffs’ position changed. After two manufacture staffs became Research & Development workers, they came up with several products served car park and expand a new customer group. In this area, there is no powerful contender. Meanwhile, after manufacturing manager changed, she arranged the new job duties which simplified the production process and provided clearly company target immediately to motivate staffs. Under this management method, managers realized more unnecessary product lines can be cut. 2.The company profit target changed every day. In order to achieve this financial target, the sales strategy have to focus on high profit with low cost products, like Atom lines and self-developed products. With this strategy changes, company’ s operation strategy turns to hi-tech products. Indeed, after strategy changed, our company made the profit and achieved the income target in the final.3.The main one cause is low efficiency. In particular, at the begin of simulation, manufacturing staffs were unfamiliar with assembling finished products and need record the component stock. However, the main customer’ demand is Cube small storage products that staffs cannot complete enough amount in limited time. This inefficiency task arrangement cause the cancellation of orders and lose of reputation. Cutting these lines and developing good operable lines save satisfaction from the existing customers in order delivery aspect. Effect:Question 2: Evaluate the effectiveness of organisation in managing the change1.Appropriate and timely response to the need for changeAs for analyse the response performance to the need for change in Ledge, Lewin’ s Force Field Analyse is a useful tool. In Lewin’ s theory(1947), the organization is influenced by two forces: the driving force that supports change and the restraining force against change. When two forces are in balance, the organization is balanced. Change happens when something impels the driving force and the restraint force to be unbalanced. The first step is unfreezing. Before the old behavior is abandoned and the new behavior is accepted, breaking the balance is the fundamental thing. Lewin(1947) believes that it is not easy for companies to make changes, sometimes they need emotional stimulation to be effective on the status quo recognition, and aware of the need for such change. For example, after experiencing the first day’s simulation failure, all employees were in a very anxious and frustrated state while concerned about the company’s future development. Initially, managers thought inefficiencies in the manufacturing department led to the cancellation of certain orders that affected their sales profits, so they started to devote a great deal of human resources to manufacture, in particular, letting packaging operator and shareholder share part of manufacturing staffs’ work. In other words, the driving force in this phase is the worries about corporate deficit and low productivity. Certainly, there will be some restraints in the staff, like unwilling to take on more responsibility and adapt to the new workflow.Then entering the second stage, implementing planned change. Although it can produce the awareness of change, predicting the change direction and result accurately is difficult because of the complexity of related forces (Schein, 1996). In the next day’s simulation, the company cut two high-cost production lines, primarily for the Cube large storage products and Mole types in markets, where the change was initially effective and turned the company into a profit if keep it. The enthusiasm of employees is also due to the obvious performance improvement and the previous suppression is also weakened. It means that the relationship between driving force and restrain force present balance trend. However, in the process of change, the company’s operating state have not changed substantially, even if Ledge change production strategy, lack of communication has resulted in battery explosion and nuclear leaks and faced compensation and credit losses. As Lewin(1991) said, if there is no consolidation, the change will only be temporary.The third step is refreeze, which seeks to a new equilibrium situation to stabilize this change, avoiding repeating them (Lewin, 1947). According to the two days simulated failure experience, managers argued that changing the production line is a meaningful behavior, so they improve the strategy on the basis of the second day. Keeping the high production line and increasing investment in R department to open up new production line and the market. With the high morale and orderly workflow of the company, Ledge finally reached the profit target on the third day and kept the company in a stable state.Therefore, I think Lewin’s 3-step framework for change is an appropriate response to solve the initial problem and can change with every day situation change quickly. 2.Stakeholder engagementStakeholders refers to have a certain interest relationship with the organization, an organization that can influence to achieve the goals of the company, or individuals who can be affected by the company to realize the process of target. Stakeholders can divide into two types, internal and external, such as internal employees, suppliers and stockholders (Freeman,1987). All stakeholders will not have completely consistent agreement to problems, some groups have more influence than other groups. The core content of stakeholder theory is the company’s interests are not only affected by the investor, but slso all the stakeholders. The corporate governance goal should be meeting the different requirements of various stakeholders, paying attention to the social economic and political impact, making the various stakeholders can participate in corporate governance and decision-making together. (Margaret, 1996).In Ledge’ simulation, analyzing stakeholder engagement by Mendelow’ stakeholder mapping model(1991), which divides stakeholders into four parts by the relationship between interest and power. Grid A is stakeholders who have limited power with low interest, during the production lines change, financial department and buyers in this group. Because they do not need to change their specific work content in this change, and will not have a great impact on their interest, they will follow the company’s decisions and actions. So when we think about production strategy, we do not pay much attention to them. In group B, supplier, human resource manager and L&D department are the people who have high level interest but not have much power on change. Firstly, the product strategy change will result in the changes of the demand for suppliers. At the same time, in the second day of the change, the company in order to increase investment in manufacturing, let human resource manager and packaging operator involved in part of the product job on the premise that maintained their income. In this process, they believe that this change is benefit for the company’s earnings growth, and need to receive information in time. Guarantee this group interests can prevent them converted into other stakeholder group.As for box C, a group of stakeholders who with low interest in the organization but high power, consisting of customers and shareholders in Ledge. Company profit target’ achievement depends on the customer’s choice that has a constraint function to the enterprise in some extent, for example, a customer has the right to know enterprise’s product, service, quality and price, when the products need to change, company should listen to the views of customers, customer comments will affect the new decision behavior to be success or not. In Ledge, customers required delivery orders on time in the first day, so company cut the Cube small storage lines which complex and waste time to satisfy customers’ demand. For stockholders, maximizing profit is their main request for company. In order to prove the potential develop ability, R staffs try to create more hi-tech products and launch them. Satisfying their demand will prevent them from gaining more interest and turn into the ‘key players’. The final one is Box D, called ‘key players’. It is obvious that sales, R staffs and manufacturing department are the elements in this area. These persons hold the high influence on change implement and high interest, also can oppose the new strategy effectively and drive change if they want. Sales keep the communication with customers and market, sensitive to the demand change; R staffs hold the core technology while manufacturing staffs control the quality and efficiency of production. Thus, when Ledge decided to change production strategy, asking for the suggestion from these workers and concerning their acceptance of change. 3.Rational decision-makingDecision making process have four steps: define problem – analyse problem – provide solution – decision making. As for the product strategy change, the initial question was how to change current inefficient working situation to make Ledge meet its profit targets as soon as possible. The specific analysis of the current situation of the company’s operation and explains why the need for change has been describe in question 1. After clarified the objectives to change, everyone applied force field model to find the appropriate response. Firstly, sales offered a suggestion that finding more business cooperation with other companies, getting a long-term contract to develop contiguously, they think securing a fixed order can guarantee the company’s revenue. However, after managers’ meeting, managers considered that cut the entire Cube&Mole production line was a more effective solution than the former. Finally, managers decided to solicit the opinions of all the staff, and then proposed a proposal of reduce part of Cube production lines and create new products.In Simon’ theory(1976), different interest representatives will view these issues from their own interests, and chosen solutions will often result in conflicts. Judging and measuring these conflicts is extremely difficult, because in decision-making process, the collected all necessary information that related to decision-making situation is impossible, while the ability to deal with information is limited. Therefore, after putting forward these proposals, we chose the effort impact tool to predict and evaluate the results, and finally made the choice.According to the effort impact graph, the first idea should be in low impact and high effort area. Alought the fixed order can bring the long-term and stable income, manufacturing department cannot complete this order if they receive other online orders and other company’ demands under the existing resource and technology. Besides, there is another difficult that how to attract customers to achieve fixed orders. This change will reduce the reputation and lose customers, but is benefit for sales’ deduction wage. On the other hand, this way does not solve the essential problem, which focus on the production rate and the order completion rate. Therefore, this proposal were given up. The next idea from managers is similar with that from other grassroots employees. The former cut most of products at once will lead to the serious customer churn, because in this phase, Ledge still not own self-developed products and a large of customers have demands in part of these types products. This measure is low effort but also low impact. The latter is based on the former’ thought to improve it, keeping the lines which has large potential customers and urging researchers and developers to create hi-tech products to expand market. Obviously, this idea is in high impact and medium effort, due to the easiness of lines cutting and the difficult of new products invention. Finally, compared with these three changes suggestion, Ledge decided to choose the third one, in spite of the high workload for R&D department have to bear.