Organisational change
A Dixons Group case study

Page 1: Introduction

If you looked at some of the largest and most successful organisations twenty years ago and then compared them with those of today, you would probably be surprised. Closer examination of these organisations would show numerous examples of success, failure or transition over this relatively short time period. Some of the largest business organisations today might not even have been around 20...
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Page 2: Strategic decisions

When Sir Stanley Kalms, the current chairman of Dixons, joined the business in 1948, it had a turnover of £105 per week. The Dixons Group today is one of the largest publicly quoted retail groups in the UK, with a turnover approaching £3 billion.The Dixons Group comprises: Dixons, the UK’s leading high street retailer of consumer electronics, selling the latest video, audio...
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Page 3: Acquisition

As a method of development, acquisition makes sense, particularly in markets which are relatively mature. Acquisition enabled Dixons to take over a large company which already existed in the electrical market-place (Currys) and also to acquire a developing organisation with a bright future (PC World).Mastercare was part of Currys when it was acquired by Dixons. A key benefit from acquiring...
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Page 4: Meeting the demands of the customer

In an industry which is fast-changing, organisations need to know their customers and their changing needs and requirements. The biggest threat for any organisation is to fail to adjust to changes in the market-place. In an increasingly complex retail environment it also became clear that not all customer requirements and purchasing habits were the same!As a retail organisation, Dixons needed to...
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Page 5: Responding to the changing business environment

The other strategy adopted by Dixons was that of internal development. This is usually a particularly effective strategy for developing products and services in markets where high growth is likely to take place. For Dixons this led to the development of The Link and Mastercare. Dixons used internal developments to segment its markets, increase its market penetration, take advantage of further...
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Page 6: Conclusion

Dixons strength comes from its entrepreneurial approach to doing business. It has developed into a nonbureaucratic organisation which is quick to respond to new ideas. Its group structure with the four separate chains offers the potential to operate a business which focuses upon diversified customer needs in a fast-changing marketplace. Yet, much still remains to be done. Dixons cannot afford to...
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