Read the case on page 360, Organizational Theory in Action/Practicing Organizational Theory: Store Learning. After reading this case related to clothing stores, discuss the situation in which the store finds itself. If it needs to change in any significant way, that action will require decisions. How should the store go about deciding on a course of action? Do you see any significant obstacles to change?
Scenario:
You are a group of top managers of a major clothing store who are facing a crisis. Your establishment has been the leading clothing store in your city for the last 15 years. In the last three years, however, two other major clothing store chains have opened up in your city, and they have steadily been luring away your customers—your sales are down 30%. To find out why, you have been surveying some of your former customers and have learned that they perceive, for whatever reason, that your store is just not keeping up with changing fashion trends and new forms of customer service. In examining the way your store operates, you have come to realize that over time the ten buyers who purchase the clothing and accessories for your store have been buying increasingly from the same set of clothing suppliers, and they have become reluctant to try new ones. Moreover, your salespeople rarely, if ever, make suggestions for changing the way your store operates. Your goal is to shake up store employees and turn around store performance.