Action research is the process of inquiry that is used to assist an individual or organization in solving a problem or improving a situation. For each scenario below, think about the reasons why things did not work out well for the company and more specifically, think about action research in terms of developing a plan for action.
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Your task for this assignment is to explain what steps the organization should take—you would need to go into the company and do some lengthy action research in order to do this! Instead, just review the standard action research and organizational development steps covered in the background materials and try to assess which key step was missing in the scenarios below.
Then write a 4- to 5-page paper using three scholarly sources from the required and optional readings list addressing the following for the scenario below:
The Perils of XYZ Widget Company
Sales have gone down at the XYZ Widget Company and nobody in the organization, including the CEO, seems to know why. They decide to hire you, an organizational development consultant, to do some action research. You and the CEO spend a lot of time discussing how to proceed and create a contract. The contract specifies that you will limit the scope to finding factors that led to the decrease in sales, come up with a plan of action within one month, and answer the following questions using the background data from the scenario below.
XYZ Widget Company has lost 20% of its market share over the past two years resulting in a sales loss of 1.5 million in 2017 and 2 million in 2018 for a total of $3 million. Each widget costs the consumer $29.99 to purchase, and the average customer will purchase three widgets annually. Each XYZ widget is produced for $8 dollars and is of higher quality than the competition.
One competitor (Jim’s Widgets) in the widget industry with a similar product has increased market share by 12% due to a lower production cost of $4 per unit and price to the consumer of $9.99.
The CEO of XYZ Widget Company is reluctant to lower prices and has had to eliminate commissions and bonuses of sales employees who exceed goals. In addition, seven of the 21-member sales team were laid off for non-performance of sales goals.
Develop an Action Research Strategy Plan covering the following Action Research Phases in a report to the CEO.
- Data gathering and Diagnosis
- Planning Change
- What are the reasons behind the decrease in sales?
- What actions or strategy (data/sales/changes) should be taken to turn sales around and regain market share?
- What strategy should be taken to increase employee morale?
- How long should this strategy take to complete?