Week 3 Team 6 Course Project: Change Analysis
November 15, 2020
Week 3 Team 6 Course Project: Change Analysis
Often times an organization will choose to make a change from within. Whether it is to move some people around or create a new marketing strategy, or possibly restructuring their entire organization, eventually most companies will have to make a change. How these changes are planned out and executed, as well as the reason for the change, can have major effects on the organization. While organizational change is often inevitable, changes can be made that can positively benefit the company and generate additional profits and good public relations. In this paper we will examine two companies who went through organizational changes, why they made the changes, and how the company has been doing since the change.
Papa John’s Pizza had major public relations disasters and underwent a change in CEO in attempt to mend its negative image in the public and rejuvenate revenues for the company. Papa John’s was started by John Schnatter and for decades was a leader in the pizza industry. Unfortunately John Schnatter made some extremely negative comments publicly regarding the NFL and the efforts they were making with player protests. Soon after that he was recorded using racial slurs in an interview. (Winchel, 2018) Papa John’s as an organization went downhill and fast; stock prices and revenues decreased at a rapid rate, they were dropped as sponsors for multiple organizations, and social media blew up. Although Mr. Schnatter made multiple public apologies, the damage was done and he was not forgiven. He made the announcement of his resignation in 2017 (Reuters, 2019) and Papa John’s announced the new CEO would be Rob Lynch shortly thereafter. Since the change in CEO Papa John’s has begun to recover from the bad PR and business is looking up, sales and stocks are on the rise with some locations reporting over 33% growth and adding over 3 million customers in recent months (Rogers, 2020), and the public image has been mended due to the changes in the executives at the corporation.
While Papa John’s had a major PR disaster or two, our second company had more than we can count. Uber started as a ride share company that recently began food delivery (Uber Eats) as well. From 2014-2017 they had a slew of PR nightmares and lawsuits and were constantly in the news for events ranging from physical and sexual assaults of clients, sexual assault and discrimination in the corporate offices, reports of escort services, using Uber to spy on politicians and celebrities, deceiving law enforcement, and so much more (Levin, 2017). To say their organization was questionable and controversial is an understatement. Due to the constant scandals, CEO Travis Kalanick resigned in 2017 (Levin, 2017).
Uber received a huge gift in August 2017 when a new CEO, Dara Khosrowshahi, took over the organization (Kerr, 2018). Within the first eight months, Dara “dramatically reshaped Uber’s famously “toxic” corporate culture, smoothed relations inside Uber’s board and sealed a $9.3 billion investment deal led by Japanese internet giant Softbank. He also pushed to settle Waymo’s high-stakes lawsuit that alleged stolen trade secrets on self-driving cars (Kerr, 2018)”. Although Uber and its new CEO are changing the image of the organization and mending their relationship with the public, Uber is still seeing a loss in revenue. Revenue dropped from $3.8B to $3.13B in 2020 (Sumagaysay, 2020). It begs to question if the damage is done and the Uber name will ever fully recover from the negative image they had.
Winchel, B. (2018, July 17). Papa John’s founder resigns after using racial slur in PR meeting
[Updated]. Retrieved from http://prdaily.com/papa-johns-founder-resigns-after-using-racial-slur-in-pr-meeting-updated/.
Sometimes you have to think before you say things and realize who you may offend. Papa John’s Founder John Schnatter did just the opposite. November 2017, He used a racial slur during a PR meeting and down played the importance of the of the NFL players’ protest. John complained that due to the protests, it was hurting sales. He seemed very insensitive about the bigger picture. This hurt the company’s image and stocks. John was forced to resign and there were many other consequences that followed.
Rogers, K. (2020, August 06). Papa John’s CEO says it has won new customers during the
pandemic and will hire more workers to meet demand. Retrieved from https://www.cnbc.com/2020/08/06/papa-johns-ceo-rob-lynch-says-it-has-won-new-customers-during-the-pandemic.html.
The Pandemic seems to be helping Papa John’s tremendously along with CEO Rob Lynch. To have Shaquille O’ Neal as a board member is pretty exciting. There has been a great increase in sales digitally by 70%. Papa Johns have gained 3 million new customers. During this time people are not too interested in dining in and Papa John’s seems to be able to add enticing new products to their menu. CEO added Papadias sandwiches, Jalapeno popper rolls, and Shaq-A-Roni. The Shaq-A-Roni pizza also raises funds for Covid-19 relief and racial injustice. The growth in sales has also led to 30,000 new jobs in total, which is great for the economy and helping those who are unemployed.
Levin, S. (2017, June 27). Uber’s scandals, blunders and PR disasters: The full list. Retrieved
What issues has Uber not had. Under CEO Travis Kalanick, Uber faced may lawsuits and had many issues. Travis was forced to Step down. There has been a lot of negative press associated with the company. There have been issues from spying on Stars, sexual harassment, underpaying workers, and discrimination to name a few. Many deleted the Uber app. Travis seemed to have obviously thought he was God. He didn’t feel like the rules applied to him. Faced with all these issues, Travis was forced to step down and have Uber have a brand-new face lift.
Kerr, D. (2018, April 27). Uber CEO Dara Khosrowshahi is working to clean house in Travis
Kalanick’s wake. Retrieved from https://www.cnet.com/news/ubers-u-turn-how-ceo-dara-khosrowshahi-is-cleaning-up-after-scandals-and-lawsuits/.
The clean-up guy left with all the issues and questions. What a hard job after such a mess made by Former CEO of Uber Travis. Dara Khosrowshahi Came with an open ear to listen to whom ever wanted to share ideas and still remains with an open ear. Dara was able to seal a 9.3 billion deal with Softbank. His empathy and background have helped him smooth things out and win over PR. Dara has been very successful with undoing a lot of damage caused by Travis and his aggressive dictatorship style of running the company.
|Change Image||Basis of Image||Application to Company #1||Application to Company #2||Pressures for Change||Differs From Others How?||Unintended Consequences From Image|
|Director||Director image views management as controlling and change outcomes being achievable as planned. It indicates that in steers the organization towards desired outcomes. This change involves a strategic management choice upon which the well-being and survival of the organization depends.||John Schnatter should have appeal to the company’s policy for zero tolerance towards racial discrimination. Papa John’s is made of many employees of different ethnicity and backgrounds. Addressing the NFL with racial slurs hinders your image and leadership for you employees.||Uber policy for sexual harassment should have been a direction that Travis Kalanick communicated with management of all levels. Training should have been directed, along with surveys for employees to address the many complaints and concerns for such behavior within the organization.||Failure to address management issues and challenging leadership with the task for a more cohesive structure cause financial decrease and hostile work environment. A unsuitable workplace for employees to feel safe or valued. This leads to a higher turnover ratio for employees staying at the job.||John issues were external during PR meetings and Travis issues were internal for not addressing employee issues. Their leadership styles and issues differ but created similar results.||The perception that John was enable to lead due his beliefs and opinions. Travis portrayed a leader that only cared for revenue. Stock plummets and customers question supporting Papa Johns.|
|Navigator||The navigator image is considered control at the hear to management action. Managers are to achieve the intended change factors such as restructure and cross-functional teams completing projects.||John Schnatter could have navigated for a better outcome by hiring Public Affairs to speak on his behalf regarding the company and his views on the NFL. This would’ve alleviated personal opinions and help media to get a more professional scoop.||Travis should address employees concerns with modules speaking on the possible mishaps of the company and challenge HR managers to address the issues on a every department level. Having employees to create a voice that will be heard.||Navigator from the top to bottom are leadership purpose and goals. Informing employees of their rights and winning their trust is all part of leadership. Whenever there is a lack in navigation, the business structure crumbles and change of leadership is inevitable.||John seemed very insensitive about the bigger picture. Travis seemed to have obviously thought he was God. He didn’t feel like the rules applied to him. Faced with all these issue.||Leadership inability to navigate such issues through the proper channels cause both companies to be views in a hindering image to customer and future employees.|
|Caretaker||Caretaker image views management controls internal and external force that propels change. Change such as encouraging entrepreneurial and innovative behavior within the ranks.||John could have used his platform to encourage or challenge individuals to be mindful of their choices. Expressing his support but also disagreeing in a more polite and professional manner.||Travis position allows for valued leadership and empathy for employees nationwide. Holding managers and supervisors accountable and taken care of employees within the company. Encouraging solutions that employees will adhere to and facilitate at all levels.||In today’s society, it is based on customer obsession and a customer-driven market. Leadership often forget that once the employees are taken care of; then employees ensure to take care of the customer. The goals needs to be balance with appreciation for both customers and employees.||Travis Kalanick, Uber faced , sexual harassment, underpaying workers, and discrimination. While John image and outbursts cause harm to the company’s revenue.||Lack of delegations and adhere to discrimination laws created anxiety and distrust among employees for both companies. Employees views leadership in a derogatory manner.|
|Coach||Change managers can intentionally shape the capabilities of the organization. They build the right set of values and skills to achieve desired outcomes.||Founder John Schnatter is familiar with coaching for success. He believe in “It’s a head coach model versus what we call the kingship model,”||CEO Travis Kalanick, engaged in the notion “we all need mentors.” When he faced crisis in the company he stated you had to know “take a step back and have some humility.||Travis needed to grow up in order for the company to grow. And John thought on being “head coach” was the answer to how he ran the company.||Travis and John both shared the head coach factor. They both manage with immaturity yet developed companies that have the ability for large profits.||John left the company with bad sales, closing restaurants and diminishing profits Travis has lost his top executives and stock for his company are gong down also. He is now being coached to grow up and find other help.|
|Interpreter||Change manager creates meaning of others in organizations.Competing meanings exist in the orgaization.only some meanings are likely to be realized and hew meanings emerge from alternative interpertations.||John wisely interpreted consumers correctly when he develop dipping sauces with pizza. By doing this his company was the third-largest take-out and pizza delivery restaurant chain in the United States||Travis took an idea that sharing the cost of a ride will save people money. this knowledge lead to rapid company growth in a short amount of time.||Uber had an lack of transparency internally resulting in teams that lack coordination and knowledge sharing . Papa Johns had an lack of transparency in the culture they was serving.||they both had an idea that resulted in company profits. But they both interpred wrong was the people who enjoyed their products and services.||both of them share in the fact that their reputations are shattered, loss of profits and the selling of their ideas because of image|
|Nurturer||Assumes small changes and have large impacts, they can’t control outcomes. But specigic outcomes can not be produced yet they are shaped throught qualities and capabilities in the organization.||papa johns image is damaged but the new board is nuturing it back to life by having the employees take a sensitivity program.||Uber new board is nurturing the company back by offering Uber eat that is big now with the covid pandemic .||Papa John knew they had to offer a diversity program in order to bring the chain back. Uber needed to add other services in order to keep them revelant in the market||they both provided a service that is needed. Food and a ride are important commodities in the market||these companies were almost destoyed and both are now being nurtured by the boards members for their orginzations.|
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