Change Management Simulation: Power and Influence- Reflective Writing Assignment

Internal Code: MAS953

Reflective Writing Assignment:

Overview: You operate within Spectrum Sunglass Company, a ten-year-old, privately held company that designs, manufactures, and sells sunglasses. Headquartered in Tremont, California, all of Spectrum’s design and production capabilities are in southern California. Two years ago, a relatively short, mild recession caused revenues to fall nearly 7%, to $91 million, and profitability to fall to essentially breakeven. As a result, the company initiated significant cost cutting. Last year, sales rose to $101 million after the economy emerged from the recession, and the company returned to normal profitability. Exhibit 1 contains selected financial information for the previous two fiscal years. The company currently employs 580 employees. Eight people are members of the top management team, and 20 individuals help lead the overall organization. The organizational chart for Spectrum is depicted in the Prepare Tab of the simulation. In recent years, the retail value of the domestic sunglass industry has been approximately $3.4 billion. Analysts normally divide the U.S. market for nonprescription sunglasses into three price segments: low-end, moderate, and high-end. Low-end sunglasses are priced at less than $25 retail, and sold primarily through mass merchandisers, drugstores, grocery stores, and department stores. This segment represents roughly 50% of the industry dollars and 85% of the industry units sold. Moderately priced sunglasses range between $25 and $100 per pair. These glasses are sold through warehouses and sporting-goods stores, but they represent only 8% of the industry dollars and 5% of the industry units sold. High-end sunglasses are priced above $100 per pair. These are sold through sunglass specialty outlets and optical stores. These glasses represent 42% of industry dollars and 11% of industry units. Exhibit 2 contains a summary of the prices, volumes, and channels involved with the sunglass industry. Sunglasses address two basic functions in the marketplace. The first function is to protect the wearer’s eyes from harmful ultraviolet light. This is particularly important because of the earth’s thinning ozone layer, and it requires special expertise in eyewear manufacturing and sales. The second function focuses on fashion and aesthetics, and design expertise and celebrity endorsements help drive industry sales. Spectrum offers a moderately priced brand of prescription and nonprescription sunglasses that are sold primarily in the United States. All sets of sunglasses feature UV-ray blocking polarized lenses, and all lines are marketed with an oceanic, sporty theme. Building upon the company’s proprietary polarization technology, the polycarbonate lenses offer superior optical quality, color enhancement, and scratch- and impact-resistance. Crafted with the company’s proprietary production technology, the frames are lightweight, durable, and available in a wide variety of unique shapes and colors. Originally targeted to swimmers and surfers, its products are expanding into other outdoor users. Retail price points for its nonprescription products range from $59 to $99 per pair, and they are sold on the Internet and through sporting goods stores. Prescription sunglasses are sold through optical stores for $75 to $100 per pair. Question: