Domtar Case Analysis
How did Domtar’s strategies align with its mission?
“Royer knew that to be effective in any competitive industry, an organization needed to have a strategic direction and specific goals. He decided to focus on two goals: return on investment and customer service…The competitive strategy had to focus on being innovative in product design, high in product quality, and unique in customer service…When Royer took over at Domtar, he explained to the executive team that there were three pillars to the company: customers, shareholders, and ourselves” (Blanchard & Thacker, 2007, p. 2). Domtar simply introduced two strategies which are return on investment and customer service. To make this strategy successful Royer aligned the strategy with three sections of the company, the customer, shareholders, and ourselves. The mission is to meet the ever-changing needs of our customers, provide shareholders with attractive returns, and create an environment in which shared human values and personal commitment prevail (Blanchard & Thacker, p. 2, 2007). How the strategy and mission aligns is by focusing on return on investment and customer service, to meet or exceed the mission. The impact created by the mission statement is also being carried out by the strategy.
Given the difficulty of organizational change, what factors contributed to the success at Domtar? How did Domtar’s management at all levels contribute to reducing resistance to change? What else might they have done? Royer noted that it is only “ourselves” that are able to have any impact on changing the company. Royer hiring a Kaizen guru, which gave Domtar a process of getting employees involved by using their expertise in the development of new and more effective ways of doing things. Royer knew that for the new strategic direction to be successful, everyone needed to understand the changes being proposed and have the skills to achieve them (Blanchard & Thacker, p. 2, 2007). “This last point...
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