In the case study 1 below, identify one management problem that related to the Managing Change at FO (beverages company) in 900-1000 words. After identifying the management problem in this case - you then find at least five refereed journal articles that are relevant to the managing change. And evaluate the standing of journals, identify the author’s argument and compare it with the arguments of other authors in their research. Structure of the essay required: Introduction (1 paragraph) This section should include the following components: a brief description of the research problem identified from the case and a rationale for investigating it, and a brief but clear statement of the argument to be developed in the Review (for example, a statement such as: ‘This paper will argue that, in order to achieve higher levels of motivation and performance from their staff, the company needs to redesign the way work is organised and performed. Research indicates that the H.man and O.man (1980) model provides the best overall outcomes). The statement of argument becomes central to the development of your Review. It needs to be given some thought. Literature Themes or Arguments (2-3paragraphs) In this section, identify two arguments or themes in the research in relation to the identified problem. You will find, in all areas of research, at least two perspectives or arguments on any issue. (For example, some researchers think extrinsic rewards such as money are the best way to motivate staff; others believe the key is having interesting and fulfilling jobs). You need to critically evaluate these arguments and work out which is the best supported and has the most application to your case. For each argument (or theme), address the following questions: Which authors support or agree with a particular argument? What evidence do they use? Which authors disagree with this argument? What evidence do they use? Conclusion (1 paragraph) Summing up your problem, the different perspectives you find and the perspective that you feel is best supported by the research you considered. The Case Study 1: FO has traditionally been perceived is a beer company. As beer sales in Asia have stalled over the past 20 or more years, however, FO has sought growth in other areas. The most significant move away from beer has been into the wine industry. A number of small acquisitions in the Asia wine industry gave FO the start it needed, but the acquisition in 2000 of BE in California (for over $1 billion) made FO a serious player in the wine industry. Wine is the only category in the alcohol market that is growing. Unfortunately, it is also now the source of many of FO''s problems. In the USA, wine has enjoyed almost continuous double-digit growth over the past 30 years and has never experienced two consecutive years of falling demand. For this reason, the entire wine industry has been geared towards growth, both in terms of vines under cultivation and the wine production capacity. This all changed in 2001-02 when this overcapacity caught up with the industry. By the first half of 2003-03, earnings for FO had dropped by 64 per cent as deep price cutting across the industry, particularly at the lower end of the bottled wine market, cut away at profit margins. With a share price that dropped from $5.70 in 2001 to around $4.50 through much of 2004, it was clear that FO needed to undergo significant changes to get back on track. The first of these was the appointment of a new chief executive on 5 April 2004 and also a new head for the wine business.The immediate changes at FO under the new cheif focused on cutting costs and improving efficiencies. There is an assumption that the level of supply now outstrips demand and that the resulting extreme value wines (good wines sold at bargain-basement prices to maintain cash flow) are likely to remain in the market for some time. In this environment, FO is aiming for a ''least-cost production model'', which includes reviewing the entire global supply chain to increase efficiencies. In addition, in 2004 the company intended to reinvest half of the cost of the estimated savings of $60-85 million into the business, introduce a program of continual innovation and move to release new competitive products. Further, to support the share price, an on-market share buyback was proposed. There could be more radical changes in the future. As FO has moved from beer into multiple forms of alcohol, including wine, it could move into non-alcoholic beverages. Alternatively, the beer (plus the mixed drinks business) could be split from the wine business, because the business models are considerably different. In many respects, the ability of the company to undertake these more significant changes will partly depend on how well FO can manage the changes required to bring the wine business back to profitable levels. (end of the case)