Implementing Strategy and Change: Robam Appliances Co., Ltd.

Implementing Strategy and Change

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Table of Contents

Introduction. 3

Part 1 - Current Strategic Position. 3

Analysis of Internal Positions. 3

SWOT Analysis of Robam (老板电器) 3

Robam Organizational Culture (倁板电器) Using Handy's Model 4

External Positioning. 6

PESTLE Analysis of Robam (老板电器) 6

Strategic Position, Mission, and Vision Analysis. 6

Current Strategy Suitability and Acceptability Assessment 7

Part 2 - The Current Environment: The Individuals. 7

The People: Current Culture, Commitment, and Employee Buy-in Analysis. 7

Cultural or Commitment Change Suggestions. 8

The Purpose: Mission, Vision, and Purpose. 9

The Planet: Sustainability and Environmental Impact 9

Strategic Need for Sustainable and Responsible Business Practices. 11

Part 3: Change Strategy Recommendations. 11

Development Focused on Individuals. 12

Personnel development 12

Improved Internal Communication. 12

Clarifying Objective. 12

Integrating Sustainability. 12

Engagement with the community. 12

Directing the attention to the planet 12

Kurt Lewin's Change Model Utilisation. 12

Execution of the Plan. 13

1. Matching Organisational Change Theories. 13

The 8-Step Change Model developed by Kotter 13

2. Detailed Procedures for Executing the Strategy. 14

Step 1. 14

Step 2: 14

Step 3: 14

Step 4: 14

Step 5: 14

Step 6: 14

Step 7: 14

3. Alignment with Corporate Goals. 15

4. Utilising Change Agents. 15

Conclusion. 15

Reference. 17

Appendix. 21

Introduction

Robam Appliances Co., Ltd. was founded in 1987 and has since been at the forefront of transforming kitchen lifestyles with its cutting-edge selection of appliances (Wang et al., 2019). It has made a significant difference in the lives of over 35 million families by providing them with essentials like range hoods, cookware, disinfectants, ovens, steam ovens, microwaves, and electric pressure pots over the years. Robam, known for its innovative range of hoods, has adapted these products to meet the needs of Chinese home cooks. Thus, this research aims to give readers an in-depth knowledge of how Robam can improve its market position by integrating people, purpose, and Planet into its strategy. The long-term viability and success of the business in a dynamic global marketplace depend heavily on this strategy.

Part 1 - Current Strategic Position

Analysis of Internal Positions

The SWOT analysis considers opportunities and threats as separate components.  Opportunities were examined to identify potential areas for growth and advancement, focusing on international markets and cutting-edge technology. Distinct from the company’s strengths, threats centre on difficulties such as competitors’ technological advances and changes in the cost of raw materials.

SWOT Analysis of Robam (老板电器)

Strengths

Robam maintains a dominant market position, specifically in the range hood and stove market, consistently holding the top sales spot worldwide for five consecutive years, as shown in the figure below (MMR. 2023). According to (Blanco-Callejo & de Pablos-Heredero, 2019), the company’s dedication to R&D has resulted in ongoing innovation and improvement of its products, guaranteeing a solid product portfolio that satisfies consumer needs.

Weaknesses

Robam, which dominates its market, needs help expanding its customer base because it relies on the Chinese market (Chi & Yang, 2022). The company also needs help differentiating its brand in the fiercely competitive kitchen appliance market, which impacts its profitability.

Opportunities

Robam has ample prospects for international expansion, especially in developing markets with rising demand for kitchen appliances (Xiao et al., 2022). Robam can gain an advantage in the luxury appliance market by responding to the growing demand for high-tech features like those found in smart homes.

Threats

Robam faces a threat from technological innovation if it does not keep up with the rapid changes in the kitchen appliance industry (Cui et al., 2021). Furthermore, rising costs of raw materials can hurt the company’s profit margins. However, Robam’s strategic directions are outlined in this SWOT analysis using the TOWS format, as shown in the figure below. It emphasises the importance of utilising strengths to maximise opportunities (SO Strategies) and utilising opportunities to overcome weaknesses (WO Strategies). Similarly, it proposes utilising strengths to address potential threats (ST Strategies) and finding methods to overcome weaknesses to minimise threats (WT Strategies).

Robam Organizational Culture (倁板电器) Using Handy’s Model

Robam, a well-known manufacturer of kitchen appliances, showcases a distinctive organisational culture that can be analysed through Charles Handy’s Model, as shown in the figure below. This model divides Organizational cultures into four categories: person, task, role, and power cultures.

Power Culture

Robam exemplifies characteristics of a Power Culture, as evidenced by its agile decision-making process. Under President Zhao Jihong’s direction, the business makes centralised strategic choices, as seen in its adoption of high-end branding and intelligent appliance technology (Pramanik et al., 2020). Robam can adapt quickly to market shifts, such as the growing popularity of smart home appliances, thanks to the company’s culture of constant innovation.

Role Culture

Role Culture in Robam could be less prominent, but the company’s emphasis on well-defined roles and responsibilities, particularly in research and development, sales, and service, is observable. According to Shen (2021), Robam’s Commitment to a robust service network to ensure timely customer support and its emphasis on proactive and one-of-a-kind service offerings indicate a well-defined organisational structure.

Task Culture

Robam’s culture is closely aligned with Task Culture. The ROKI innovative cooking system is just one example of the company’s project-based approach to innovation (Wang et al., 2019). Robam’s Task Culture promotes collaboration, ingenuity, and adaptability, enabling the company to remain at the vanguard of technological progress and market developments. This culture drives domestic and international company growth.

Person Culture

Robam’s organisational structure exhibits a reduced emphasis on personal culture. Nevertheless, the company’s endeavour to transform each employee into a partner, allowing them to partake in the company’s prosperity, suggests a transition towards recognising and appreciating individual contributions (Lahtinen, 2020). Thus, Robam’s organisational culture is a hybrid that heavily leans toward task and power cultures. The company’s success in a cutthroat market is mainly due to this blend, which promotes employee ownership, creativity, and speedy decision-making.

External Positioning

PESTLE Analysis of Robam (老板电器)

The PESTLE analysis of Robam paints a picture of opportunities and threats, as shown in the figure below. The political climate, marked by solid government backing, provides a conducive atmosphere for Robam, fostering expansion and advancement in consumer electronics. While risks associated with the real estate market and raw material price fluctuations exist, robust opportunities for growth can be found in emerging markets. Moreover, roam benefits enormously from social movements. Demand for Robam’s products may increase due to the rising popularity of high-end, intelligent kitchen appliances and the subsequent emphasis on family cooking. Robam has a unique opportunity to disrupt the smart home industry and increase its online presence thanks to recent developments in AI and the proliferation of e-commerce websites. Thus, competition from established brands like Haier and Midea is challenging today’s market. Nevertheless, Robam’s emphasis on top-tier, specialised products may serve as a strategic advantage, enabling it to establish a distinctive position in the market.

Strategic Position, Mission, and Vision Analysis

Focusing on responsibility, innovation, and practicality, Robam has become a leader in the high-end kitchen appliance market. The company’s vision extends beyond product excellence to include social harmony and the promotion of healthier family lives (LONG, 2020). Robam is strategically positioned in line with its Commitment to “Creating a New Kitchen in China” and its focus on clever, culturally sensitive appliances.

Current Strategy Suitability and Acceptability Assessment

Robam’s present approach, which centres on high-end, intelligent kitchen appliances, is a good fit for the market dynamics. The focus on advanced technology and products that align with cultural preferences caters to the increasing consumer need for intelligent, user-friendly kitchen solutions (Yi, Wang & Shu, 2020). As shown in the figure below, stakeholders approve of the strategy because it considers their needs while also catering to the needs of the company’s shareholders through market dominance and innovation-driven expansion.

Part 2 - The Current Environment: The Individuals

The People: Current Culture, Commitment, and Employee Buy-in Analysis

The corporate culture of Robam Appliances Co., Ltd. is characterised by creativity, accountability, and practicality. Robam’s goal of acquiring high-end, cutting-edge kitchen appliances has been greatly aided by this philosophy, fueled by the company’s enduring entrepreneurial spirit. The culture is marked by a firm dedication to fulfilling the diverse desires of individuals when it comes to kitchen life (Mikołajczyk, 2021). This demonstrates a profound comprehension of their consumer demographic and a solid commitment to improving kitchen experiences.

Companies with progressive and forward-thinking cultures, like the Ninth-level Central Digital Platform and Zero-Point Manufacturing, are moving toward intelligent manufacturing (George, 2023). This transition is in line with their dedication to spearhead the revolution of culinary practices, reflecting the overarching objective of the national initiative ‘Made in China 2025’. Consistent market leadership and rapid expansion into new product categories are strong indicators of a committed and enthusiastic workforce about the company’s goals.

The ROKI intelligent cooking system further demonstrates Robam’s innovative culture. Employees are motivated by the company’s leading position in reshaping Chinese cuisine and their substantial contributions to the digitalisation of the kitchen appliance sector. Employees feel gratified and connected due to their dedication to innovation and excellence.

Robam’s focus on sustainability, acceptability, and social responsibility, demonstrated by their numerous charitable endeavours, helps to foster a strong sense of corporate responsibility among staff members, as shown in the figure below in the SAFE matrix. This matrix offers a methodical framework for examining strategic options for Robam, considering their alignment with company objectives, stakeholder expectations, and available resources. Additionally, this facet of their culture improves the brand’s reputation and gives employees a feeling of pride and purpose because they work for a company that values social contributions.

Cultural or Commitment Change Suggestions

Robam’s new strategy could benefit from a culture of constant learning and adaptation if it is to be successful. This strategy places a premium on digital transformation and intelligent manufacturing. It is imperative to motivate employees to enhance their skills in data analytics, artificial intelligence, and digital technologies (Lyu & Liu, 2021). In this sense, collaborations with educational