Change

Management
Ms. Shweta Singh
 Learning Outcomes
 1. Define change management and identify its key
components.
 2. Explain the significance of change management in
organizations and describe the basic steps involved in managing
change.
 Watch video link : https://www.youtube.com/watch?v=gmoDpj1jtyA

01 02
Tell me Real life How Did you Manage
example when you it ?
have experienced
change in your life ?
 What is Change Management?
 Change management is the methodology that integrates change and the ability to adapt into the
organization.

 Change Management is an organized, systematic application of the knowledge, tools, and

resources of change that provides organizations with a key process to achieve their business
strategy
 Scenario: Moving to a New
School
 Recognizing the Need for Change:
• Imagine a student who has to move to a new school because their family is relocating to
a different area. The student might initially feel nervous, uncertain, or even resistant to
the idea of starting over at a new place.
• Lesson for Students: Change is often unexpected, but it’s important to understand that
change is a part of life. It’s a chance to grow and learn new things.
 Planning and Preparation:
• The student starts preparing for the transition by researching their new school, learning
about the classes and extracurricular activities offered, and organizing school supplies.
• Lesson for Students: When faced with change, it helps to plan ahead. Doing some
research, organizing, and understanding what’s coming next can ease the process.
 Implementation: On the first day at the new school, the student feels nervous
but starts engaging with new classmates, meeting teachers, and participating in
class activities.Lesson for Students: Stepping into a new situation can feel
uncomfortable at first, but taking action and getting involved helps to make the
change easier. Trying new things and meeting new people will help you adjust.
 Support and Communication: The student talks to their old friends or family
members about how they’re feeling and may even ask their teachers or school
counselors for help if they feel overwhelmed. Perhaps they join a school club or
sports team to make new friends.Lesson for Students: You don’t have to go
through change alone. Asking for help, seeking advice, and staying connected to
supportive people can make the transition smoother.
 Monitoring and Evaluation: After a few weeks, the student reflects on how
they’re adjusting. They see that they are making new friends, learning in class,
and becoming more comfortable with the school environment.Lesson for
Students: It’s important to check in with yourself and assess how you’re
adjusting. If things are going well, celebrate the small wins; if there are
challenges, think about how you can improve.
 Adoption and Reinforcement: After a few months, the student feels fully settled
into their new school. They’ve developed a routine, made new friends, and
adapted to the changes.Lesson for Students: Change might be tough at first,
but with patience and persistence, you’ll eventually adapt. Over time, you’ll
feel more confident and capable in handling similar changes.
 Coca-Cola Case Study
 Coca-Cola's "New Coke" Case
 In 1985, Coca-Cola introduced "New Coke", a reformulated version of its classic soda, to compete with Pepsi,
which was gaining market share. Despite positive taste tests, the change faced strong backlash from loyal
customers who preferred the original formula.
 Coca-Cola had underestimated the emotional attachment customers had to the original taste. After evaluating
the public response, the company quickly reversed the decision and brought back the original formula under
the name "Coca-Cola Classic" just a few months later. The return of the classic formula was celebrated, and
Coca-Cola regained customer loyalty.
 Key Lessons:
• Understand emotional connections in change.
• Be flexible and responsive to feedback.
• Communication and listening to customers are critical in managing change.
 This case shows how even a well-researched change can fail if customer sentiments aren’t properly considered.
 Two types of Change
 Internal—structured shifts or programs that are an ongoing phenomenon within an organization.

 External—environmental changes that come from outside the organization, and the organization
exercises little or no control over them.
Forces for Change...
 Forces for Change...
“Knowledge Products and Services Structure
economy”

Mergers & acquisitions

Market Segment
Technology
 Case Study: Disney's Acquisition of
Pixar (2006)
 One of the most successful examples of a merger and
reorganization in corporate history is The Walt Disney
Company’s acquisition of Pixar Animation Studios in 2006.
This merger provides an insightful example of how two major
companies in the same industry can combine to create a stronger,
more innovative entity.
 Background:
 Disney was already a leader in animation and entertainment, with
a long history of successful animated films and theme parks.
However, in the 1990s and early 2000s, the company faced
increasing competition in animated films and a dip in the quality
of its output.
 Pixar, on the other hand, had revolutionized animation with its
groundbreaking 3D films like Toy Story, Finding Nemo, and The
Incredibles. Pixar had a reputation for creativity and innovation,
but it lacked the broader entertainment reach and resources that
Disney had.
 The Merger Process:
 Recognizing the Need for Change:
Disney’s animation division was struggling to stay relevant in an
evolving industry. Pixar, with its cutting-edge technology and
creativity, was seen as a potential way to revitalize Disney’s
animation offerings.
Pixar was also looking for a way to expand its reach. While Pixar
films were successful, the studio lacked the extensive distribution
and brand recognition that Disney possessed.
 Negotiation and Acquisition:
 In January 2006, Disney acquired Pixar for approximately $7.4
billion in an all-stock deal. The decision was made after extensive
negotiations between the two companies, and Pixar’s CEO, Steve
Jobs, became a major shareholder in Disney.
 This deal was seen as a way to combine the strengths of both
companies: Pixar's creative talent and technology, and Disney’s
global distribution, merchandising, and branding.
 Planning and Reorganization:
 After the acquisition, Disney underwent a significant
reorganization. Pixar’s leadership team, including John Lasseter,
the Chief Creative Officer at Pixar, was brought in to lead Disney’s
animation efforts.This reorganization meant that Pixar’s creative
culture and autonomy were largely preserved, which helped ease
concerns about the merger’s impact on the animation process.The
companies worked to integrate their cultures, with Disney’s
traditional values merging with Pixar’s innovative, free-flowing
creative style.
 Implementation and
Communication:
 Disney communicated the merger internally and externally,
reassuring both companies’ employees and stakeholders that the
merger would preserve the unique elements of Pixar’s creativity
while leveraging Disney’s larger resources.The merger was
carefully implemented to ensure that Pixar's creative process
wouldn’t be stifled by Disney's corporate structure. The Pixar
brand remained strong, but Disney was able to infuse its
established business operations to scale Pixar's success.
 Post-Merger Evaluation:
 After the merger, both companies experienced considerable
success. Pixar’s films, such as Cars (2006), Ratatouille (2007), and
WALL-E (2008), continued to be major box office hits.Disney
Animation also benefited from Pixar’s creativity.
 Under John Lasseter’s leadership, Disney revived its animation
division with hits like Tangled (2010) and Frozen (2013).The
merger also led to more innovation, such as the integration of
Pixar’s animation technology with Disney’s broader media empire,
helping the company maintain dominance in both animation and
entertainment.
 Adoption and Reinforcement:
 The merger was reinforced by the continuing success of Pixar’s
films and the strategic expansion of Disney’s entertainment
empire. Disney's ability to maintain Pixar’s brand identity while
benefiting from its creative resources demonstrated the success
of the reorganization.Over time, Pixar became more integrated
into Disney, but its creative culture continued to thrive, ensuring
that the merger was a win-win for both parties.
 Key Lessons from the Merger:

 Cultural Integration: Disney understood the importance of maintaining Pixar's

creative culture after the merger. The successful integration was largely due to
Pixar’s leadership team maintaining its autonomy and freedom within the larger
Disney structure.Clear Communication: Both companies communicated the reasons
for and benefits of the merger to their employees, stakeholders, and customers,
which helped in easing concerns and ensuring smooth transitions.Leveraging
Strengths: The merger combined Pixar's cutting-edge animation technology and
creativity with Disney's vast distribution network and brand power, creating a
dominant force in the entertainment industry.Leadership Continuity: By keeping
Pixar’s key creative leaders in place (like John Lasseter), Disney ensured that the
company’s innovative spirit and creative processes remained intact, even after the
merger.
 Conclusion:
 The merger between Disney and Pixar is widely regarded as a
successful case study in reorganization and change management.
By carefully planning the integration, respecting each company's
culture, and ensuring that both creative and business strategies
were aligned, the merger created a powerhouse in animation that
continues to dominate the entertainment industry today.
 Summarise the class
 Students summarise the session