Managing Organizational Change Luft, A. Article Review

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The main driver for this change was external, to enhance not only the competitive differentiation of the company, but also its image in the public eye.

Whereas GM divided its sales and marketing divisions, Microsoft's change focused on combining separate divisions: Global Agencies and Global Accounts. The former focused on top ad agencies, while to latter focused on top clients. For this combination, a new vice president was also appointing to report directly to the top executive. The Global Agencies leading executive was placed in charge of the global marketing team in a more integrated role.

One of the main differences between Microsoft and GM is that the latter focused more on working directly with clients, mainly because of the type of product and sales activity required for the company.

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Vehicle sales requires direct and intensive contact between a sales executive and client. Hence, greater focus was required to optimize this division. Microsoft, on the other hand, has no need to work directly with clients, while sales are driven by the quality of advertisements and the general image created in potential customers' minds by means of differentiation.

Neither strategy or rationale could therefore be considered to be more important than the other. In both companies, change occurred as a result of particular areas that needed a more specific or more integrated approach. Each type of change was effected to create a better competitive edge for each company......

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