Congruence Model of Organizational Behavior Case Assignment
Module 3 - Case
Congruence Model of Organizational Behavior
Assignment Overview
XCG
The Excellent Consulting Group
Communication from Art:
I reviewed your report regarding Organizational Diagnosis, and I thought you did a nice job. I presented your recommendation to ABC Company and Whole Foods Market, and had several discussions with them.
They've finally decided that they want to use the Nadler-Tushman Congruence Model to analyze the overall congruence in the company – they like the Input and Output analysis that this model provides.
First, the company's executives are interested in the Inputs, including the strategy. They are interested in getting an objective opinion of what their critical inputs are and how they align with their strategy. So I suggest that you very quickly brush up more on the Congruence model, particularly for this assignment on inputs.
Second, we need to analyze how Whole Foods Market has been doing in terms of its performance and how it stacks up against its goals. We will do this at three levels: the overall organizational level, the group level, and the individual level. The Congruence Model explains this well. You should be up to speed on this model.
The executives also want to know how congruent the outputs are across the three levels. Given your analysis of performance at each of the three levels, are the interactions of these outputs congruent - highly, somewhat, or very little? Make this determination and support it with a logical argument using the information that you obtain about Whole Foods Market's goals and performance.
REQUIRED READING:
Nadler, D. A., & Tushman, M. L. (1980). A model for diagnosing organizational behavior. Organizational Dynamics, 9(2), 35-51. doi:10.1016/0090-2616(80)90039-X
Case Assignment
Using the Nadler-Tushman Congruence Model, conduct an analysis of Whole Foods Market's inputs and how they align with the strategy, as well as its outputs.
For the analysis, I suggest that you start with strategy, since you have already done some work on this aspect in your first report. Review Whole Foods Market’s strategy and then determine which one of Porter’s competitive strategies fits with this strategy. Then review the company’s inputs and determine one or two specific critical inputs from each input category: environment, resources, and history.
Ultimately, I want you to determine how aligned the critical inputs are with the strategy. Is there high congruence (alignment), some congruence, or little to no congruence? I expect you to support your claim with a good, logical argument using the information you have collected.
In order to make this case, you first need to review the strategy and then classify it as one of Porter’s competitive strategies. Then identify the Key Input factors in the first three categories. Explain why these are the critical input factors. Then determine how congruent the three input factors are with the strategy.
Then use the Nadler-Tushman Congruence Module to analyze Whole Foods Market's outputs. Start with the Organizational Level. Identify the Outputs - what does it produce and sell? What are its goals? How has it been performing? Then go the group level. What are some groups that Whole Foods Market identifies, and the goals and performance of these groups. Finally, discuss the Individual level. Here you will find it difficult to get much detailed information, so identify five to seven key jobs and their outputs. How can the performance of these jobs be measured? Finally determine the congruence of the outputs and make a strong argument for your case.
Be sure to include references. Turn in the 6- to 8-page paper by the end of the module.
KEYS TO THE ASSIGNMENT:
- Discuss the organization’s strategy and classify it according to Porter’s three generic competitive strategies.
- Identify the most critical inputs in each of the first three categories and justify why they are critical. Also explain what effect the inputs from one category have on inputs from the other categories. How well does the strategy fit with the environmental, resource and historical inputs you identified?
- Make a Case for your proposition as to how the Key Inputs support (are congruent with) the Strategy. Specifically make a claim: “The inputs at Whole Foods Market consisting of Organizational Environment factors, Internal Resource factors, and Historical Tradition factors are [highly, partially, or minimally] congruent with the company’s strategy.”
- In order to make your case you need to identify the outputs of the organization at each of three levels. Also identify the goals that it has set and its current performance. Include the following:
- Outputs at the organizational level are the products and/or services that it provides to its customers. What are these and how does the company categorize them? How does it measure its organizational performance (e.g., sales, net profit, return on sales, return on assets, market share, customer satisfaction, etc.). Provide some specific performance data.
- What are some ways the company identifies groups? For example, are there geographic groups (or divisions), functional groups, etc. What are the outputs of these groups? How does it (or how might it) measure performance of these groups?
- What are some of the key individual functions, and what are their outputs? How do these outputs contribute to the group outputs? How do they measure individual performance?
- Evaluate how the outputs at the different levels interact with each other. Determine if you think the congruence of the outputs is high, medium, or low. Then make a strong case. It is very important that you support your position with evidence and information that you have discussed earlier in the report.
- Support your analysis with objective evidence. Sources of information for the entire project may include interviews, organizational documents and reports, articles in newspapers, and trade publications. Be sure to cite your sources and provide a list of references.
Write up your report in a 6- to 8-page paper and submit it by the end of the module.
Assignment Expectations
Your paper will be evaluated on the following seven points:
- Precision - Does the paper address the question(s) or task(s)?
- Breadth - Is the full breadth of the subject, that is, the Keys to the Assignment, addressed?
- Depth - Does the paper address the topic in sufficient depth and include the background readings and other background resources as references?
- Critical thinking - Is the subject thought about critically, that is, accurately, logically, relevantly, and precisely?
- Clarity - Is the writing clear and are the concepts articulated properly? Are paraphrasing and synthesis of concepts the primary means of responding to the questions or are points conveyed through excessive use of quotations?
- Organization - Is the paper well written? Are the grammar, spelling, and vocabulary appropriate for graduate-level work? Are headings included in all papers longer than two pages?
- Referencing (citations and references) - Does the paper include citations and quotation marks where appropriate? Are the references from the background readings and assignment present and properly cited? Are all the references listed in the bibliography present and referred to via citation?
TIPS AND SUGGESTIONS
- You may use a simple diagram to highlight important factors. However, do not use the diagram in lieu of valuable analysis (or to take up valuable writing space) - it should be in addition to your paper of 6-8 pages of analysis.
- Just because you have written the minimum four pages does not mean that you have adequately covered the topic. Err on the side of writing more rather than less.
- Choose the data you use carefully. Is it relevant and important?
- Include a cover page and reference page, in addition to the 6-8 pages of analysis described above.
- Include headings within the paper.
- Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have "borrowed" or paraphrased from other sources.
Please use graphs and diagrams to highlight important factors. (Very important)
Please use references that can be verified on the web. The URLs for the referenced material must go straight to the body of work referenced. They must work
Congruence Model of Organizational Behavior
Student’s Name
Institutional Affiliation
Congruence Model of Organizational Behavior
Introduction
Whole Food Marketing, Inc. (WFM) is an American based supermarket chain that engages in the business of organic and natural foods. The company operates both locally and internally with approximately 456 stores across the United States, Canada, and the United Kingdom. Also, WFM has outstanding facilities and mode of operations comprising of seafood-processing facilities, commissary kitchens, a specialty coffee services, bake house facilities, a produce procurement center distribution centers and-and tea procurement and roasting operation, among others.
Therefore, the paper seeks to discuss Whole Food Market strategy to Porter's three generic competitive strategies. Also, the paper will identify the company's critical inputs and their congruency with the strategy basing on Nadler-Tushman congruence model. Lastly, with the aid of the aforementioned, model, the paper will examine the key outputs and how it aligns with the company's strategies.
Source (http://slideplayer.com/slide/8067741/)
Strategies
The primary determinant of Whole Food Market's profitability is the adopted strategies and attractiveness of the industry in which it operates. Even of the industry have below-average profitability (Cheretis & Mujtaba, 2014). The primary objectives of the company is to promote their core products, which are the organic and natural food products to counter the artificial products provided by other competitors because the natural and organic products are healthier and recommended by doctors (Whole Food Market, 2014). In other words, the purpose of the promotion centers on prioritizing the wellbeing of the customers' health through the quality of the food they eat.
Recently, the company announced strategic goals which include intensive growth strategies through market expansions while mainly targeting both the low and middle-income customers along with other wealthy consumers, sales growth strategy, reduction of cost of production and increase of storage footage (Morrison, 2010). Practically, Whole Food market has recently undertaken more strategic steps such as intensive marketing of organic products, introducing more affordable products, paying much attention to local sourcing and customizing offers that match the local consumer needs, opening new outlets especially in a less affluent market segment (Morrison, 2010). Besides, Whole Foods strategies to minimize its expenses by compressing the sizes of some of its existing superstores, preventing huge amounts of spoiled goods as well as maximizing on its supply chain and advanced logistics operations.
Furthermore, the company has researched and redesigned its market approaches. In particular, Whole Food Market is currently conducting numerous market efforts such as offering sales, whereby they offer to flash sales on various products for few hours (Morrison, 2010). Also, they provide customers with financial and consumer spending habits advise as well as offering advice and promoting natural and inorganic foods as the important constituent of health which should not be expensive. Also, the company undertakes price matching against other competitors. Whole Food Market derives strong competitive edge because the uniqueness they have is itself a competitive advantage. The company's employees and associates are highly trained and knowledgeable. Also, the company offers a diverse variety of products compared to competitors, and this has subsequently earned them a stronger competitive advantage.
From the above strategic analysis, it can be classified into three Porter's generic strategies: cost leadership, differentiation, and focus. Product differentiation and cost leadership strategy refers to a business-level strategy, and that is vital for the industry (Cumming & Worley, 2014). Differentiation strategy is about the improvement of products to add unique attributes which are highly valuable to customers as they perceive them as different from the products of competitors. However, the company practices less differentiation as the competition is high as competitors such as Costco, Trader Joe's Company, and Sprouts Farmers Market, Inc. also engage in intensive product differentiation. To counter the intensity of the competition that arises from differentiation strategy Whole Food Market resorted cost leadership strategy (Nadler & Tushman, 1980). The strategy is based on offering products at the lowest prices than the competitors. The company offers lower prices than that of rivals to generate more revenues as well as offering prices below the average industry prices to earn a great market share. Under focus strategy, the company has concentrated on a narrow segment where it has employed a cost leadership strategy and product quality. This is evident by the business decision to focus on setting market segment targeting the low income, middle income, and the affluent customers separately to effect the cost leadership strategy (Whole Food Market, 2014).
Inputs of Whole Foods Market
The company has been in business since 1980, and over the years, Whole Food Market has earned a rich history as it became the pioneer and the leading players in the organic food industry. As early as 1980, Whole Food Market concentrated highly expansion strategy by opening up new stores across the company. By the end of the 1990s and 2000s, the company had already expanded its market share through numerous acquisitions (Nadler & Tushman, 1980). The company managed to earn tremendous goodwill and huge brand recognition through is standard, quality and ethical practices in their production and sourcing of food. Compared with the major rivals in the industry, Whole Food Market has strictest standards and principles, which has guided its operations over the years. About history as an input for Nadler-Tushman congruence model, it is essential to incorporate such two inputs. First is the focus on the expansion strategy that targeted the affluent customers due to high premiums (Cheretis & Mujtaba, 2014). This approach helped in shaping the perception of the company as the "whole paycheck" company in the past. Second, through the high standard and quality culture of production has enabled the company to capture the customers who care about health and prefer organic food (Whole Food Market, 2014).
In the context of resources the company has a strong market position as it has dense networks of stores both locally and internationally and this allows Whole Food to offer a wide range of goods. Also, Whole Food have many suppliers, which has significantly reduce the suppliers bargaining power. At the internal level; UK and Canada, Whole Food also has a good reputation for its strong brand as well as ethical practices, wide networks of stores as well as quality foods (Whole Food Market, 2014). Also, the company has a team of approximately 58, 0000 qualified and competent employees who are working towards the company's mission and vision. Lastly, whole food has huge capital evidence by its large economies of scale and revenue generation in the recent years (Whole Food Market, 2014).
Concerning the environment perspective, the company has been exposed to high competition from private labels, large stores and small stores, which have triggered an increasing trend of supply organic foods. Another environmental factor is the legal factors, whereby the food certification bodies such as the Safe Quality Food (SQF), Global Organic Alliance (GOA) and the Canadian Food Inspection Agency (CFIA) have put stringent measures to uphold standards for safer food and supply (Whole Food Market, 2014). Lastly, the labor unions are always updating labor laws in a bid to ensure the company is observing employees' welfare.
Congruency between Inputs and Strategy
Concisely, Whole Foods has an ambiguous congruency between the inputs and Strategy (Cawsey, Deszca, & Ingols, 2015). First the company faces a dilemma and difficulty in integrating the current strategy and historical inputs. Initially, Whole Food approached the market as a premium segment brand that was designed to attract affluent c...
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