Anda di halaman 1dari 21

THE BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

FACULTY OF BUSINESS ADMINISTRATION IN FOREIGN


LANGUAGES
___________________________________________________________________________________________
_

CHANGE MANAGEMENT

CASE STUDY
Caroli Foods Group

AUTHORS
Gabriela-Cosmina Tudor
Andreea Serban
Gabriela Udrea
Group 127

Bucharest
2014

Contents
1.General presentation of the organization.................................................................................3
2. The subject of change.............................................................................................................6
3. Analysis of the field of forces.................................................................................................7
3.1. Analysis of the forces that promote change and their motivation........................................7
3.2. Analysis of the forces that are opposing change and their motivation................................9
4. Analysis of the critical mass necessary to trigger change.....................................................11
5. 1. Triggering of the change process......................................................................................12
5. 2. Methods of reduction of forces opposing change.............................................................13
6. 1. Analysis of the change process.........................................................................................14
6. 2. Dynamics of the forces that promote change and the inertial forces................................16
7. Analysis of the results. Evaluation of the residual stress......................................................18
8. Conclusions...........................................................................................................................20

Caroli Foods Group


- Case study

1.General presentation of the organization


Caroli Foods is one of the largest producers of cold-cuts and the leader of the
Romanian cold-cuts market, both by value and annual sales. Today, the company
manufactures four brands of cold cuts: Gourmet, Caroli, Maestro and Sissi (franchise) with
more than 200 products for all tastes. Out of these, CAROLI is the most popular brand in the
Caroli Foods Group portfolio. During the first 12 years of activity, Caroli Foods invested
more than EUR 35 millions in processing and distributing cold cuts (technology, hygiene
equipment, human resources, etc.). The company has 1,300 employees, among whom most
are between 18 and 35 years old. Caroli Foods products are aligned to the European Union
standards. The two factories in Pitesti, having a manufacturing area of more than 18,000
sq.m., are food safety certified. Caroli Foods Group is mainly made of the companies Caroli
Prod 2000, T.C. Affaires, INDCARF S.A. and Maestro Industries.
Caroli Foods Group considers technology to be an important pillar underpinning the
success and meeting the objectives of providing the best products and services to consumers.
Therefore, the company has invested in modern machinery equipped with process computers
that run programs for each operation and manufactured product but also in a professional IT
infrastructure. In terms of IT, the company operates a data center with over 50 professional
servers and storage systems (IBM and Dell) but also a range of solutions that includes: ERP
(Enterprise Resource Planning), WMS (Warehouse Management System), SFA (Sales Force
Automation), optimizing routes and Business Intelligence. Solutions are accessed remotely
using Microsoft Terminal Services in a Virtual Private Network (VPN). The IT infrastructure

is virtualized in a proportion of 50% and is managed by a team of specialists that consists of 8


people.
History
The company was founded in 1994 in Romania. It started its journey in a small factory
in Bucharest.
In 1999, Caroli Foods acquired INDCARF SA Pitesti. This represents the main
production factory of the company with a monthly production capacity of approximately
3,000 tons.
In 2002 took place the consolidation of the production unit in Pitesti.
One year later, in 2003, Caroli Foods acquired the premium brand Gourmet that to
serve all consumption segments of the Romanian market.
The years 2004 and 2005 brought quality certifications for the company. First, the ISO
Certification 9001:2000 for a quality oriented organization and quality management and good
practices and secondly, HACCP (Hazard Analysis and Critical Control Points) certification
and implementation of ERP (Enterprise Resource Planning) for the management system
orientated on preventing problems and assuring safer products.
In 2006, Caroli Foods bought, with about five million euro, the cold-cuts producer
Maestro Industries in Cluj. This acquisition made them market leader in Transylvania.
In February 2007, Caroli closed the factory in Cluj and relocated all its activity in the
production unit in Pitesti. Subsequently, Caroli sold the factory from Cluj and its land. The
stated aim of this action was that to strengthen the long-term operations in Romania. In this
regard, Ovidiu Dusleag, CEO of Caroli Foods declared Our priority is to support the
employees of the plant in Tulcea to overcome these difficult times, the entire team is making
all efforts in this regard. As a market leader, Caroli Foods is aware of the responsibility it has
to build a sustainable business model in Romania. From this assumed responsibility, we began
a process of consolidation of the local operations to provide quality products and services to
our customers and secure jobs for the 1,450 employees of the company. Here, they also
launched the Sissi brand that offers a range of ham.
The year 2008 came with the decision of entering new markets. In this regard, Caroli
Foods participated that year, between the 10th and 14th of March in Barcelona, at the
Alimentaria, the largest European Food and Beverage Exhibition. This was the second
presence of the company in an international exhibition of this kind. Caroli, Gourmet and
Maestro were the brands with which the company decided to expose that year a wide range of
4

products. This way, Caroli Foods wished to stir the interest of the international consumer who
values the authentic taste of Romanian products, prepared according to traditional recipes and
thus, to be able to enter more markets. The stand contained salami, ham products, chicken and
pork specialties, and, last but not least, Romanian traditional cold cuts. Our presence in an
international exhibition of the kind is a proof of our concern for quality and hygiene
standards, as well as of our concern for diversified recipes due to which our products are so
appreciated in Romania, as well as on any other market, declared Haluk Akdemir, CEO of
Caroli Foods.
In 2009 took place the relaunch of Economy brand Primo. At this point, Caroli Foods
had 5 brands in its portfolio: Gourmet, Caroli, Maestro, Sissi (franchise) and Primo Familia.
The year 2010 was an important milestone for the company as Caroli Foods and
Campofrio Food Group (the leading European meat processor and an important global player)
signed a joint venture agreement to raise the quality standard of the cold-cuts market and offer
better coverage in South Eastern Europe (Romania, Bulgaria, Republic of Moldavia, Serbia,
Ukraine and Turkey). The agreements took full effect on 20th July 2010 and the newly formed
venture was called Caroli Foods Group. Campofro Food Groups participation in said Joint
Venture" is 49% with the remaining 51% belonging to the former shareholders of Caroli
Foods. The CEO of Caroli Foods Group, Haluk Akdemir, claimed that he has set his mind on
increasing the sales by 80 million euros during the following three years and on increasing the
companys market share by 4%.
The results of the joint venture came fast, as CFG became the market leader in
Romania in 2011. In the same year, the CEO of Caroli Foods Group, Haluk Akdemir, was
replaced by Khaled El Solh on 10th of October.
In the year 2012 the company changed the way it virtualized its IT infrastructure. They
moved from using a commercial platform to using one provided by Microsoft, the Hyper-V
Server 2012.
In 2013 a new consolidation of production in the Pitesti factory took place and the
company received the IFS Certification - International Food Standard, version 6, Higher
level for internationally recognized food safety standard and quality audit of products and
processes.
This year, Caroli Foods is celebrating two decades of activity in which it has provided quality
products for all consumers.

2. The

subject of change

In 2012, for the provision of highest quality internal services for meeting the
requirements on reducing operational risks, Caroli Foods Group decided to change the
virtualization platform. The IT Department has initiated a comparative analysis of existing
commercial solutions, evaluation focused on: cost, functionality, level of support and
knowledge available technology by own team, and Windows Server 2012 with Hyper-V
responded best to the requirements from all points of view. Complementary, Caroli Foods
Group team began looking for a back-up solution on server level to provide superior
performance and which can be integrated into the project of creating a Disaster Recovery
Center that can be found on the company's investment plan. In this context, the IT department
evaluated also the Data Protection Manager, a key component of System Center 2012.
Carolis objective was to achieve a higher level of safety and comfort in the IT
infrastructure management, including the virtualized one, and for that they needed a better
platform. The first dilemma was: in what software to invest, which was the most
advantageous for Caroli? After analyzing the specific market, the company realized that
Windows Server 2012 together with System Center 2012 is the best choice because it offers
features such as Hyper-V Replica / Live Migration and dynamic resource allocation and the
licensing model is very flexible and includes both operating systems and visualization
platform, virtual machines management console and a back-up solution, which was very
price-attractive. says CRISTIAN Asanache, IT MANAGER, Caroli Foods.
Equally, for the decision Caroli took into account and the support services that
Microsoft provides to customers and partners in Romania.
Carolis search coincided with the announcement regarding the new version of
Microsoft Server 2012 and with the recorded progresses, which caught their attention. Even if
it was a new product, they knew what Microsoft Romania offers support services to the local
customers and they have been opened to the new technology. Every time the business
approached the new technology they have invested in preparing the team: access to
documentation, training, certifications, etc., and from this point of view is the support for
Microsoft products easier to access.

3. Analysis of the field of forces


6

According to Lewins force-field analysis model, an organization is an open system.


There are two forces in organization change (Lewin, 1951), one is the pushing of the
organization to a new direction; it is the driving force. The other is preventing organization
from changing; it is the restraining force.

3.1. Analysis of the forces that promote change and


their motivation
Life isn't one damn thing after another. It's the same damn thing again and again. Edna St. Vincent Millay
Driving forces are forces outside the firm (external factors) that trigger the change of
strategy in an organization.
In the dynamic world we live nowadays it is essential to make changes in order to
adapt to the new environment and to survive; we have little choice but to continually change
or risk being left behind.
In the business world it seems that major organisational change is becoming ever more
frequent. The driving forces can be determined by the need of survival, adaptation to a
dynamic business environment, reengineering process, shifting to a new vision.
Changes can be initiated in people, technologies, processes or structures, but since there is a
strong influence and degree of interaction between them all, they will propagate across the
whole organization.
Many forces can affect an industry powerfully enough to qualify as driving forces. Some
are unique and specific to a particular industry situation, but most drivers of change fall into
one of the following categories:
1. The Internet and new e-commerce opportunities and threats it breeds in the industry;
2. Increasing globalization of the industry;
3. Changes in the long-run industry growth rate;
4. Changes in who buys the products and how they use it.
5. Product innovation;
6. Technological change;
7. Market innovation;
8. Entry or exit of major firms;
9. Diffusion of technical know-how across more companies and more countries;
10. Changes in cost and efficiency
7

11. Growing buyer for preferences for differentiated products instead of a commodity
product (or for a more standardized product instead of strongly differentiated
products);
12. Regulatory influences and government policy changes;
13. Changing societal concerns, attitudes, and lifestyles;
14. Reductions in uncertainty and business risk.
In the case of Caroli Food Group, changes were mostly triggered by the technological
innovation driven by the worlds digital revolution and by the overall accelerated pace of
doing things: production process, response to clients requests, efficiency.
Changes in IT - Todays Internet War between Google, Microsoft, and Facebook marks
just another step in the digitization of the economy, showing us that the digital revolution will
continue to change the tools we use to create and consume information, and will therefore
continue to have enormous influence on which business models are successful and which are
not. Information Technology continues to shrink the world and revolutionise the way
organisations operate. Success is no longer a matter of being the fastest or the fittest, but
rather is about being the most adaptable. Any enterprise that can introduce new ideas and new
approaches frequently and effortlessly has a huge advantage. It is the role of a modern leader
to make this possible.
Acceleration All the forces that trigger an organization to change are mutually
interdependent, and they feed off of one another. As their effect converge, they may have a
potential soundly disrouptive acceleration and impact in a way that is decisive and
inescapable.
New tools define new economic realities, which fundamentally affect how individuals,
families, and communities earn their livelihoods. In the words of James Burke, The more the
tools, the faster the rate of change.And every day were busy making new tools and bringing
them to market as fast as we can, so as the resulting events increase in magnitude and trends
gain speed, every company becomes more vulnerable to change.
Change is now happening so fast that traditional approaches to planning arent
effective. To cope successfully with this dynamic world, leaders have to find new approaches
to thinking and managing, and new ways of gathering information, planning, decision
making, allocating resources, developing strategy, and linking strategy to innovation.
Because the specificity of the activity of Caroli Foods Group, the IT system records
transactions 24 hours from 24, 7 days a week, with inevitable peaks on certain critical
8

applications. Therefor, the IT department must have provided the required continuity and
availability of resources, in order to have an optimal level and a high degree of agility of the
entire infrastructure. To achieve this goal, Caroli chose Windows Server 2012 virtualization
and IT infrastructure management.
By making these changes, Caroli Foods Group succeded in adapting to the continuous
changes in the Information Technology environment and to respond efficiently and fastly to
the requirements of everyday proccesses and activities of the company. They also achieved
their need for providing high quality internal services and reducing operational risks, as well
as reducing costs through more efficient use of servers and storage systems existing.
Moreover, by the dynamic resource allocation, Windows Server 2012 has resulted in
optimizing the running of business applications and in ensuring usage fluency.

3.2. Analysis of the forces that are opposing change and


their motivation
When driving force is stronger than the restraining force, organizational change
occurs, and the organization will move towards a new direction. When restraining is stronger
than the driving force, organization will stay where it was; and when these two forces are
equally powerful, it will stay stable temporally.
When organization is about to change, there are different forces to prevent them from change,
which is the above-mentioned restraining forces. Restraining forces can be divided into three
levels: organization level, secondary unit level, and individual level (Yang, Zhuo, & Yu,
2009).

Factors in the organizational level include the organizational structure inertia and

system pressure, organizational culture, and the pressure from past success.
Factors in secondary unit level include the standpoint difference and interest conflict

between different departments.


Factors in individual level include the misunderstanding, lack of trust, own benefit
threat feeling, uncertainty, custom, etc.

There are many factors that will affect the success or failure of organizational change. The
6 most important factors include the insufficient readiness for change, lack of systematic plan
for organization change, fast solution expectation, the focus of change activity instead of
result, poor management in change process, and mismatch between change plan and
organization context (Yang, Zhuo, & Yu, 2009). To achieve successful organizational change,
all these factors have to be considered carefully.
9

Readiness for change refers to the degree of positive acceptance of the necessity of
change, and the positive attitude toward the effect of change on self and the organization
(Armenakis, Harris, & Mossholder, 1993). The higher the preparation, the higher the
acceptance and executive power of the member shall be. The lower the preparation, the higher
the resistance to change, and the higher the probability of organization change to fail will be.
Another common reason for organizational change to fail is that many organizations do
not take the systematic viewpoint to make a holistic plan for organizational change. For
example, the attempt to make change through education only, and to overlook other factors
that may affect employees behavior such as organizational system, structure, culture, etc.
Moreover, some organization applies the identical changes plans to all departments and
individuals without considering their differences.
The fast solution expectation is another error organization makes. They often assume
introducing a set of organizational changes can solve all the problems, and recruiting an
outside consultant can assist on everything. With this expectation, the organization will
depend on the consultant too much, and invest too little, and will end the change plan too
early if the achievement does not meet their expectation. In addition, when planning the
organizational change, members often take the change activity too seriously, but neglect the
change goal itself. Thus, members participate in the activity vigorously, but the achievement
is actually very limited.
Poor management in change process is another commonly made mistake. Many factors
have to be considered and attended to in the unfreezing, moving or freezing stages. Overlook
certain factors many lead to total failure of the organizational change.
Finally, the match between change plan and organizational context may also play a
significant role in the success or failure of organizational change. Organizational change is to
establish new pattern of thinking and behavior. When the new pattern conflicts with the old
ones, the oversized resistance tends to cause the plan to fail. Therefore, in designing a change
plan, the organizational context must be incorporated.

4. Analysis of the critical mass necessary to trigger


change
A critical mass represents the minimum amount of people in an organization able to start
and to sustain a change.
10

The IT Department has initiated a comparative analysis of the existing commercial


solutions. The evaluation focused on: cost, functionality, available level of support but also
the technology knowledge of its own team, and Windows Server 2012 with Hyper-V
responded best to the requirements of all points of view.
Given the nature of the situation and the change that needed to take place, our critical
mass is made up of software components and the people working in the IT department. The IT
infrastructure is managed by a team of specialists that consists of 8 people. Because they were
approaching a new technology they had to invest in preparing the team: access to
documentation, training, certifications, and from this point of view Microsoft products are
easier to access. The IT department was also responsible of intense testing the new features,
along with groups of users in the company to ensure the smooth evolution of the change
process.
For the software part, it was determined that five hosts with 25 virtual machines will be
enough to trigger and complete the change. The project was conducted in December 2012 and
consisted of the migration of five hosts with 25 virtual machines from the free version of the
virtual commercial platform to the Hyper-V Server 2012. The process was quick, conversion
and migration being done with System Center Virtual Machine Manager, without the need for
tools from other providers and with support from Microsoft and the partner Active Systems.
The challenge of the project was the rapid conversion of the 5 hosts that we wanted to
move without changes and incidents, from the virtualized platform on the Microsoft one. For
this we prepared a compatible host and we used it to move all the running virtual machines.
Migration was swift and without incident, and basically the users of the business solutions
didnt notice the change. The process was easier because of the training of Carolis IT team in
Windows Server technologies and the support received from Microsoft and the partner Active
Systems said Cristian Asanache, IT Manager of Caroli Foods Group.

5. 1. Triggering of the change process


This is a time of unprecedented change in our society. The changes one experiences
are happening at faster and faster rates. As examples, the telephone, radio, TV, and microwave
weren't even in use decades ago, and today these gadgets are commonplace, along with the
computer, Internet, and fax machine.

11

In just a few months, the technology that an organization uses on an everyday basis
may be outdated and replaced. That means an organization needs to be responsive to advances
in the technological environment; its employees' work skills must evolve as technology
evolves. Organizations that refuse to adapt are likely to be the ones that won't be around in a
few short years. If an organization wants to survive and prosper, its managers must
continually innovate and adapt to new situations.
Every organization goes through periods of transformation that can cause stress and
uncertainty. To be successful, organizations must embrace many types of change. Businesses
must develop improved production technologies, create new products desired in the
marketplace, implement new administrative systems, and upgrade employees' skills.
Organizations that adapt successfully are both profitable and admired. Managers must
contend with all factors that affect their organizations.
Because the specific activity of Caroli, computer system records transactions 24/24, 7
days a week, with the inevitable overload peaks on certain critical applications. The IT
department must ensure the continuous availability of the IT resources at an optimal level, and
a high degree of agility of the entire infrastructure.
Carolis IT Network needed focus. The managers of Caroli started to identify the areas
that needed to be changed and recommend how to proceed.
For virtualization of the IT infrastructure by 2012 Caroli Foods Group has used a free
version of a virtualization commercial platform which did not include the management
console and had functionality level limitations. Management of virtual machines was difficult
and required more attention and time from the IT team. In addition, the solution did not allow
automatic switching between the controllers of a storage system when one of them was nonfunctional and did not allow the dynamic allocation of hardware resources to each virtual
machine individually. Thus, resource intensive applications such as ensuring optimization of
transport routes in peak overload periods, had high latency in their operation and generated
some failures in the business processes, and complaints from users.
Beyond the lack of advanced console for managing the virtualized infrastructure, the
previous solution did not provide details of power or consumption for each machine
separately and they could not dynamically allocate available resources. Therefore, the IT
department allocated too much time to management and some applications responded slowly
during overloaded periods. To ensure the efficiency of business processes, it was necessary
to identify and adopt a commercial solution says CRISTIAN Asanache, IT MANAGER,
Caroli Foods.
12

Complementary, there were requirements for changing existing backup application,


requiring a solution that provides a centralized and efficient ongoing of the backup and restore
activities (the bare-metal level of the files system, to the state level of the systems, the SQL
database level). For the ERP solution, backed by a SQL database, was made a full back-up
every day, but the window for this to took several hours, a situation which does not meet the
needs of the company's business.

5. 2. Methods of reduction of forces opposing change


The most problem which will be occurred during the implementing change process is
resistance, so for an organization which wants to prevent problems it is extensively important
to response to employees (internal customer). In order to oppose to negative factors and
reduce resistance, below activities performed:
a) Interior design with suitable work environment ergonomics.
b) Training self-management, appropriate communications and teamwork to employees which
lead to increase professional capability of personnel.
c) Arranging coordination meetings and clarify management strategies to middle managers
and also to employees. Resistance can be reduced when leaders communicate with
organization members to help them see the need for change as well as the logic behind it. This
can be achieved through face-to-face discussions, formal group presentations, or special
reports or publications. The approach works providing the source of resistance is inadequate
communication and that leader-member relations are characterized by mutual trust. If trust
does not exist, the change is unlikely to succeed.
d) Encouraging employees to cooperate in improvement projects. Organization members who
participate in planning and implementing a change are less likely to resist it. Prior to making a
change, leaders can allow those who oppose the change to express their view on the change,
indicate potential problems, and suggest modifications. Such participant involvement can
reduce resistance, obtain commitment, and increase the quality of the change decision.
e) Exactly making known for employees the whole processes in the field of their own.

6. 1. Analysis of the change process

13

Organizational development and change efforts go hand-in-hand; managers who are


interested in effecting change within their organizations must first thoroughly understand the
dynamics of change.
An organizational restructure to Carolis IT system solved the business problem. The
Carolis change process methodology is comprised of six phases, all closely related: Prepare,
Plan, Design, Implement, Operate, and Optimize. The process phases are implemented as
follows:
Prepare phase: Business agility starts with preparation: anticipating the broad vision,
requirements, and technologies needed to build and sustain a competitive advantage. In the
Prepare phase, the organization determines a business case and financial rationale to support
the adoption of new technology. By carefully anticipating future needs and developing both a
technology strategy and a high-level architecture to meet those needs, a business is better
equipped to contain costs during deployment and operations.
Plan phase: Successful technology deployment depends upon an accurate assessment
of the organizations current network, security state, and overall readiness to support the
proposed solution. In the Plan phase, the organization ascertains whether it has adequate
resources to manage a technology deployment project to completion. To evaluate and improve
network security, the IT department tests its network for vulnerability to intruders and outside
networks. IT then develops a detailed project plan to identify resources, potential difficulties,
individual responsibilities, and the critical tasks necessary to deliver the final project on time
and on budget.
Design phase: Developing a detailed design is essential to reducing risk, delays, and
the total cost of network deployments. A design aligned with business goals and technical
requirements can improve network performance while supporting high availability, reliability,
security, and scalability. Day-to-day operations and network management processes need to
be anticipated, and, when necessary, custom applications need to be created to integrate new
systems into existing infrastructure. The design phase can also guide and accelerate successful
implementation with a plan to stage, configure, test, and validate network operations.
Implement phase: A network is essential to any successful organization, and it must
deliver vital services without disruption. In the implement phase, the organization works to
integrate devices and new capabilities in accordance with the design, without compromising
network availability or performance. After identifying and resolving potential problems, the
organization attempts to speed return on investment with an efficient migration and successful
implementation, including installing, configuring, integrating, testing, and commissioning all
14

systems. After the network operation is validated, the organization can begin expanding and
improving IT staff skills to further increase productivity and reduce system downtime.
Operate phase: Network operations represent a significant portion of IT budgets, so it
is important to be able to reduce operating expenses while continually enhancing
performance. Throughout the operate phase, the IT department proactively monitors the
health and vital signs of the network to improve service quality, reduce disruptions, mitigate
outages, and maintain high availability, reliability, and security. By providing an efficient
framework and operational tools to respond to problems, a company can avoid costly
downtime and business interruption. Expert operations also enable an organization to
accommodate upgrades, moves, additions, and changes, while effectively reducing operating
costs.
Optimize phase: A good business never stops looking for a competitive advantage.
That is why continuous improvement is a mainstay of the lifecycle. Optimization is the
continuous process of planning, designing, and implementing incremental improvements to
existing processes. Have business goals or technical requirements changed? Is a new
capability or enhanced performance recommended? As the organization looks to optimize its
network and prepares to adapt to changing needs, the lifecycle begins anew, continually
evolving the network and improving results.
The project was conducted in December 2012 and consisted of migration of five hosts
with 25 virtual machines from the free version of commercial platform virtualization on
Hyper-V Server 2012. The process was quick, conversion and migration being done with
System Center Virtual Machine Manager, without the need for tools from other providers and
support from Microsoft and from Active Systems partner.
Business processes were not affected or influenced during conversion even if the
supporting machines were functional. Simultaneously with the migration operation was
operated a memory resources adjustment allocated to each virtual machine individually to
meet the tasks better.
CRISTIAN ASANACHE: The challenge of the project was the rapid conversion of the 5
hosts that we wanted to move without changes and incidents, from existing virtualized
environment on the Microsoft one. For this we prepared a compatible host which was used to
move all running virtual machines. Migration was swift and without incidents, and basically
the users of the solutions for business did not feel change. The process was facilitated by the
IT Team of Caroli Foods Group for Windows Server technologies and the support received
from Microsoft and from Active Systems partner.
15

Beyond addressing timely issues, the project aims to create a platform for long-term
operating unit for servers, virtualized infrastructure and back-up processes that would benefit
from a single support center.
For Caroli Foods Group, Windows Server 2012 becomes the basis for long-term
development of IT infrastructure and immediate plans foresee implementation of other
Microsoft technologies available for extending, centralizing and streamlining IT services
within the organization, said CRISTIAN Asanache.

6. 2. Dynamics of the forces that promote change and


the inertial forces
Change is one of the most critical aspects of effective management. Change is the
coping process of moving from the present state to a desired state that individuals, groups and
organizations undertake in response to dynamic internal and external factors that alter current
realities.
Technology Advances
Businesses and managers are now faced with highly dynamic and ever more complex
operating environments. Technologies and products along with the industries they support and
serve are converging. The world is presently characterized by dramatic technological shifts.
Technological advancements, particularly in communication and computer technology, have
revolutionized the workplace and have helped to create a whole new range of
products/services. Advances in technology have contributed to the development of economies.
The technological forces are the major force that promoted change in the Caroli company.
Using new technology influences the subsystems in the organization. For example, the
technological advancement in computers has revolutionized the design, development and
manufacture of products. The electronic point of sales system for instance, that permits
improved stock control by instantaneously updating records and assessing the actual effects of
price change, has improved the sales and marketing of goods.
Resource Constraints
Resources refer to money, material, machinery, personnel, information and technology.
Depletion, inadequacy or non-availability of these can be a powerful change force for any
organization.
16

Persons Focused Change


This is the change concerned with human resources planning and with enhancing
employee competence and performance. Redefining organsational strategy and goods;
structural change in terms of expansion, contracting technological inputs al these have
implications for human resources management. For example, introduction of new
technologies result in person focused change such as: replacement (when an employee cannot
be trained further), replacement (to where an employees current skills are best suited), and
employee training and development. It may also lead to laying down new recruitment and
selection policies in tune with changing technologies and their requirements. The availability
or non-availability of employees with the required skills also influences an organisations plan
for expansion, of venturing into new products/services and of profitability.

7. Analysis of the results. Evaluation of the residual


stress
By using Microsoft Windows Server 2012 Enterprise, Caroli Foods Group has brought
a number of benefits in the context of migration process and long-term benefits simplifying
the IT infrastructure management.
Ensuring business continuity
Migrating the 5 hosts and the virtual machines was done quickly and without
downtime. Business applications of Caroli Foods Group remained functional throughout the
process, and users' activity was not affected.
CRISTIAN Asanache: "Native integration of System Center Virtual Machine Manager and
Windows Server 2012 was key of the project and assured us continuity throughout the
migration. Basically, business users have not even noticed the change of platform."
Optimizing the running of business applications through dynamic allocation of resources
Prior to Windows Server 2012 project, some of the business applications of Caroli
Foods Group did not have sufficient resources on load peaks which caused higher response
rates and hence complaints from users. "Windows Server 2012 allows detailed monitoring of
17

resources consumed by each virtual machine and their dynamical allocation. After migration
was complete, the response time of applications was reduced and eliminated the slow
processing of loading peaks . I recorded this improvement both for LOB solutions (such as the
application for transport routes optimization) as well as for the IT space provided to test new
applications. Thus , we increased user comfort and we ensure the continuity and efficiency of
business processes within the company , believes CRISTIAN Asanache .

Reduction of IT infrastructure costs


Windows Server 2012 project developed within Caroli Foods Group has reduced IT
costs by eliminating the investment in additional hardware resources, such as servers, storage
or backup solution licenses.
In a virtualized environment, if there isn't a shared storage system, moving virtual
machines between hosts is not possible, but Windows Server 2012 removes this constraint.
Without Microsoft, the company would have to use additional equipment which induces
considerable storage acquisition costs, as well as delivery and setup costs. Furthermore, the
licensing model of Windows Server 2012 is very flexible and includes both operating systems
and platform virtualization management console virtual machines and back-up solution.
Optimization of testing environment and reduction of the time for producing the new
functionalities of business applications
The market on which Caroli Foods Group operates is very dynamic and, therefore,
business processes are constantly changing.That has a direct impact on updating software
solutions. Before starting production , the IT Department is intensely testing the new features,
along with groups of users in the company. Virtualized infrastructure with Windows Server
2012 and System Center 2012 allows rapid construction of test environments and loading
them with actual data .
With Windows Server 2012 we have readily available resources test environments ,
and snapshots of business applications that you get every 15 minutes allow us to conduct tests
with fresh data and thus achieve a high accuracy . One of the test environments with high
impact on Caroli Foods Group is the ERP solution and rapid implementation of these tests is
18

an important issue because it involves many colleagues in the departments of business ,


whose productivity should be the least affected", declares CRISTIAN Asanache.
Reduce the risk of data loss
A direct result of the project was to replace the back-up done daily for the ERP
solution with a salvage value of the full data back-up made at intervals of 15 minutes.
Component of System Center Data Protection Manager 2012 thus reduce the risk of data loss
and enables Caroli Foods Group to respect the requirements of the audit.

8. Conclusions
As Caroli Foods strives to be the cold-cuts market leader and to offer the best products
of high quality and value to its customers, they are well-aware of the fact that, in order to
achieve this goal and maintain this position, they dont only have to produce and deliver good
products, but also to have competent personnel that works with the best equipment and the
most efficient applications, software and platforms designed specially for their ongoing
activities. By ensuring this, they managed to achieve a high level of availability and to reduce
costs through exploiting more efficiently the servers and the existing storage systems.
Because using their old storage platform meant spending many hours only to save the
activities that happened during one day, the implementantion of a new virtualized
infrastructure was needed. After analyzing the most important factors, it was decided to
acquire and implement the latest Windows Server and System. This decision was made
because this platform met the needs of the company and because Microsoft is known by
everyone, so relatively easy to use.
As in any change, there were forces that opposed it, but the IT management team
considered every aspect and prepared the grounds on which this change would take place.
Intense tests were made and they paid special attention to the people directly affected by the
process and provided them with help, assistance and training. Since all aspects were well
thought of and taken care of, the implementation was swift and easy, most of the users not
even noticing the change taking place. The results came fast, the time for saving the days
activity reduced from hours to only fifteen minutes. The back-up done daily for the
incremental ERP solution was replaced with a data saving of full back-up value made at
intervals of 15 minutes. The component called System Center Data Protection Manager 2012

19

reduces, thus, the risk of data loss and enables Caroli Foods Group to comply to the audits
requirements.
Moreover, through the dynamic allocation of resources, Windows Server 2012 has
resulted in optimizing the running business applications and ensured fluency in use.
The existing structure is currently finely tuned and well-positioned to accommodate
growth and enable Caroli to respond quickly to its rapidly-changing business demands. And,
as Caroli continues to grow, its IT department will continue to evolve to better serve the
business needs.

References:
http://www.nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,
%20Fred%20C.%20Forces%20For%20and%20Resistance%20to%20Change
%20NFEASJ%20V27%20N4%202010.pdf
http://www.ddegjust.ac.in/studymaterial/mba/obh-413.pdf
http://www.carolifoods.ro/en/
http://www.wall-street.ro/tag/caroli-foods.html
http://www.microsoft.com/romania/business/studiu_de_caz/caroli_foods_implementeaza
_windows_server_2012_si_system_center_2012.aspx
http://www.campofriofoodgroup.com/cs/Satellite/cfg/news/news-releases/joint-venturein-romania/1328183911661.html
http://www.revistapiata.ro/Grupului_Caroli_Foods_a_concentrat_toata_productia_la_fabrica_din_Pitestiid6664.html
http://www.5forcesofchange.com/about/articles/article-5-forces-change-peoplemanagement-magazine/
http://innovationmanagement.se/wp-content/uploads/2011/08/Innovation-MasterPlan_Chapter-2.pdf
Lippitt. Gordon L. "Organizational Renewal: Achieving viability in a changing world"
New York: Appleton- Canlury- crofts, 1969.
Hayes, J. The Theory and Practice of Change Management. Second Edition. Palgrave
Macmillan, Hampshire, 2007.

20

"ADKAR" - a model for change management. Change management tutorial series.


Prosci, Accessed August 21, 2006

21