Sweet Treats Limited (STL) is a small regional chain of cake shops with its headquarters in Warwick. STL was originally set up by Julie Bird. Its shares are now owned by family and friends of James Bird, the current Managing Director. Five other directors manage the company with James.

Over a three year period STL has expanded by taking over independent cake and cookware shops in local towns in the Midlands. STL now has 6 shops including the main shop in Warwick and is hoping to expand to 10 shops.

As part of their ongoing expansion plans STL also wants to introduce an online ordering service using a new online software package. This would offer a nationwide delivery service to customers' homes. This service would initially run from STL's headquarters in Warwick but with plans to expand into a new manufacturing unit.

The expansion through takeovers and the introduction of the online cake ordering service will result in restructuring changes within STL.

These would include:

the introduction of one regional manager based in the Warwick shop

a reduction in the number of shop manager roles

a reduction in the number of shop assistant roles

an increase in the number of cake bakers as well as a unit manager (for new manufacturing unit)

an increase in the number of delivery driver roles

the introduction of an e-commerce team to manage the online business

Each of the other 5 shops now has one shop manager. However STL would like to introduce one regional shop manager and have a cake baker in each store . The Warwick shop would continue to have a shop manager. In the smaller shops, the baker will also act as the shop manager and manage any shop assistants.

The proposed restructuring is not popular with the current employees. They feel that the reasons for the change, the need for the reorganisation of staff and the final staffing structure have been poorly communicated to them.

James Bird and his two fellow directors thought that the letters sent to staff and the notices on the staff notice boards in each shop clearly communicated the reasons for the reorganisation and the new structure that was to be put in place.

However the restructuring process is causing uncertainty among staff. The staff have also experienced a loss of motivation and a loss of trust in James Bird and his fellow directors.

There is an increase in voluntary staff turnover including the loss of managers. STL will also have additional costs associated with the online business expansion which will include :

recruitment of the e-commerce team and associated IT software

training costs for bakers to become shop managers

training costs for delivery driver roles.

A number of the staff in current job roles had originally been employed in the shops before the takeover by STL. Some of these staff are not very flexible and are resistant to any change in their job roles.

James Bird is keen to continue to expand and develop the company and has recently refitted part of the Warwick shop with a section selling partywear. This has proven to be a success and James now wants to introduce similar sections into the other shops. This development will impact on current job roles and will involve some restructuring.

James is aware of the problems associated with the planning change and restructuring and so he has contracted your management consultancy to help with the planning of this change.

You have been hired by STL to do some work around how the company has been affected by the VUCA environment in which they operate in.

Before STL commissions a report from you, they wish for you to offer them some insight as to how change management might help them, and what strategies/tactical options are available to see them through this difficult time.

Please answer to each question:

Change Management (definition, discuss the importance and need for change at Sweet Treats Limited - Organisational Change)

Organizational Development (definition, discuss, and identify the role that OD plays in the future success of the business)

VUCA Environment (how STL is affected and the impact on its operations)

Change Management Models (more than one)

Recommendations and strategies (STL may implement through the Transition state)