Elite Business Solutions EBS Worldwide Inc Field Report

Elite Business Solutions (EBS) Worldwide, Inc.
Introduction
Change management is a crucial part of any business because, given the ever-shifting economy and the relevant economic forces, a business must change to adapt to the prevailing market forces (Doppelt 2017). The process of change management can either be successful or a failure, and its success or failure can significantly affect the continuation of the business. It is not always that failure of change management will translate to failure of the business, but it can significantly affect growth. This paper focuses on the Indian business environment by analyzing a Small and Medium Enterprise (SME) and an Entrepreneur who has experience of managing change. The analysis of the business will be done through Lewin's Change Management Model. Therefore, this paper analyses EBS Worldwide Inc., formerly known as EasyBuyMusic and the entrepreneur Chris George.
Overview of the Company
EBS Worldwide is an international full-service company that offers business development and general management consulting services for SME privately-held companies in North America. The company's mission is to help companies increase their profit margin through operations and management streamlining (EBS Worldwide Inc. 2009). However, before EBS Worldwide, the company was known as EasyBuyMusic, and it dealt solely with music. The company CEO was Chris George, who is a graduate of St. Mary's University in Texas and an MBA holder from New York University. George started EasyBuyMusic in 2000 with an investment of Rs 45 lakhs. Easybuymusic.com was a pioneer in the e-commerce industry, and under his leadership, the company grew to have branches in nine Indian cities with over 200 employees (Financial Express 2002). However, in 2004, George realized EasyBuyMusic had to change, and though the website had taught him invaluable lessons, the turned EasyBuyMusic to EBS Worldwide (Rodrigues 2012). Today EBS Worldwide provides marketing tools and services and has offices in India, Europe, and the US. Some of its products are MarketBlox, CreditMax, and PeopleMax.
Changes the entrepreneur made
The entrepreneur made a complete transformation of the company, not only the name but also the products offered. However, the company maintained the business model, which is e-commerce. The transition of the business was first in the business name. George changed the company name for EasyBuyMusic to EasyBuy with the e-commerce website URL as easybuystore.com. the primary reason for changing the business name was to accommodate the new avatar of the business (Financial Express 2002). However, it is to be noted that these changes began after the CEO had noticed the need for change to respond to the market forces and the changing customer needs.
After EasyBuy, the business did not take the needed course to profitability, and thus, the CEO reinvented the company to Elite Business Solutions/Analysis Inc. The new business name reflected the new products the company dealt with, which include marketing and business management tools. This was the most radical change the entrepreneur made by shifting the company from selling music to selling marketing and organizational management tools. Also, the entrepreneur widened the reach of the company from only India, in which EasyBuyMusic operated to a global reach with operations in the USA and Europe, specifically UK (EBS Worldwide Inc. 2009).
The outcomes
The outcomes of the changes the CEO made helped to turn around the company. First, the company entirely refocused its target customers. Initially, the company targeted music lovers who wanted to buy new albums and music CDs in India. After the change, the company now targeted corporates, organizations, and mostly all types of businesses, both small and medium, and in all types of the business sector (EBS Worldwide Inc. 2009). This has, therefore, expanded the company's customer base, which translates to increased income and a higher profit margin. Also, expanding the business to an international level means that the customer base is even more expanded.
As EasyBuyMusic, the company had to deal with logistic planning and high transportation and postal costs because after a customer bought an album, it had to be transported to the buyer. However, once the company changed, any product bought by a customer can simply be downloaded to the customer's computer system or simply given login details to access the product as a service. The eradication of transportation costs means that the company helped to cut costs. More importantly, the eradication of the need to transport means that the company did not have to factor in timely deliveries, which is a critical step for any e-commerce business. Non-adherence to delivery timelines is one of the issues that cause customer dissatisfaction for e-commerce businesses.
Specifically, to this case, the change outcome was significant since it helped turnaround the company's fortunes and, thus, the return of investors who withdrew earlier. As the easybuymusic.com e-commerce, the company had begun to see a decline in sales as a result of the challenges it faced, which drove away investors. However, after the transformation, the company saw the return of these investors as well as attracted new investors.
Challenges and how they were countered
EasyBuyMusic faced various challenges that caused a decline in its business. The first challenge was customer dissatisfaction as a result of a weak delivery system (Rodrigues 2012). It is to be noted that the company was among the first in the first wave of an e-commerce business. The business required that albums bought by customers be delivered to them. However, at the time, India did not have a well-established transport network. It would take up to months before a customer received their album. To solve this problem, EBS Worldwide entirely eradicated the need for delivery as a customer can download the product they buy or, because the company provides full-serve product, simply login to the product through provided log in details.
The other significant challenge that EasyBuyMusic faced was a limited customer pool that, at a certain point, was limited and did not expand. This challenge was caused by numerous factors; the first was limited internet access and the low connectivity at the time, and second, the limited number of online credit cards in India (Rodrigues 2012). In 2000 when EasyBuyMusic was established, internet access was definitely the most challenging aspect for any online business as the infrastructure was not as sophisticated as it is today, and the internet could only be accessed through computers, which many did not have access to. Moreover, this limited customer pool was further diminished by the fact that potential customers needed a credit card to make payments. To counter these challenges, the company, as EBS Worldwide, tried to expand its customer base by expanding out of India into the more developed economics, Europe, and the US. These two markets have significantly well-advanced internet infrastructure and a wide selection of only payment avenues.
The other challenge that the company faced was a limited product line and a limited base of potential customers. As EasyBuyMusic, the company dealt only in music and had to collaborate with the giants in the industry, e.g., Virgin Atlantic and Sony. Also, the potential customer base in this industry is limited as a customer willing to buy music online are the leading youth with a source of income. To solve this problem, the CEO expanded the product line to include advertising, marketing, and organizational management software (EBS Worldwide Inc. 2009). The expansion of the company's product line also meant that the potential customer base was also expanded as it now targets small and medium businesses in all sectors.
Review of the approach using Lewin's Change management model
In the implementation of this change, George – the CEO, simply determine what he needed to do for his company, and with an understanding of the company's core business strengths and knowledge of the internet and customers' behavior online, the company changed to digital marketing services. However, in this paper, this change process will be analyzed within the descriptions of Lewin's Change Management Model. This model splits the change process into three phases; unfreeze, make changes, and refreeze (Shirey, 2013).
The unfreeze phase begins once the realization that the company needs change has been made. For EasyBuyMusic, the unfreeze stage involved the realization that the company is facing challenges which were signified by the investors beginning to leave. Once this happens, the company gets the perception that there are upcoming changes. The indication for perceived changes involves communicating with employees and preparing them for the necessary changes so that the company survives. This phase requires bringing all onboard to ensure that there is no bias or resentment.
The next stage is the make the actual changes. Once all is in place, and all stakeholders are expectant of the changes, then the implementation phase begins. For EasyBuyMusic, this phase is illustrated when employees have to be released, and in this case, through a phone call. This is because the management could not afford to travel to locations all across India. As the CEO, George has to call employees and terminate their employment from the company. This change helps to cut down on expenditure. At the same time, the CEO had to convince investors who were leaving to give him a second chance as his proposed changes would turn the company into profitability. After this, the CEO transformed the company into EBS Worldwide. This change was the most important in this phase, and it involves deployment, measuring, and modifications to accommodate feedback.
The last stage is the refreeze, which is after the changes have been modified as per available feedback. This change involves the maintenance of the new status quo. The new status quo for EBS Worldwide Inc. was operations in India, Europe, and the USA, and a new product line with a diverse new clientele.
1. Three things that I liked about the assignment?
i. This assignment helped me to appreciate the need for flexibility when running a business. Mainly as a CEO, I now understand the need to understand the cycle of a business and to be bold enough to make decisions at the right time. Understanding the uncertain future of EasyBuyMusic and making the right decision for George was vital in not only the survival of the company but also expanding its customer base and profits.
ii. Change management is a vital step for any business. Whether changing product line, operational processes, or any other aspect of the business, change is essential and unavoidable because the market is ever-changing be in customer preferences, competition, or prevailing market forces. Implementing change, however, does not need to align with any given theoretical framework. It requires an understanding of the market, the target customer, and then the implementation of the change.
iii. In the implementation of change within an organization, the most critical factor is the target customer. In the implementation of change to transform EasyBuyMusic to EBS Worldwide, the essential resource for George was understanding of the target customer and how they behave in the digital environment. With this understanding, George was alert to develop a product that is effective for organizations in advertising, marketing, and managing customers online.
2. Two pieces of advice I have for this assignment for my peer if they were to improve the assignment.
i. The first advice I have for someone seeking to improve this assignment is to seek an audience with the CEO of EBS Worldwide Inc. – Chris George. This assignment has relied only on information available online, but firsthand information from George would significantly alter the author's perspective. The second piece of advice to improve this assignment is acquiring the financial records of both EasyBuyMusic and EBS Worldwide, as this is the most relevant indicator of the change.
ii. To improve this assignment, I would recommend that it should be undertaken as a resource project, and specifically, as a case study. A case study would allocate more time, resources, and allow for a broader collection of data. Through a simple research paper, it might not clearly illustrate change management as a process. The second recommendation to improve this assignment is to undertake a comprehensive analysis of both EasyBuyMusic and EBS Worldwide from a comparative perspective.
iii. In completing this assignment, several challenges were met, and solving them would help improve this assignment. The first challenge was a limited understanding of change management. To improve this assignment, I, therefore, would recommend an extensive understanding of the theory of change management. The second challenge was a lack of credible, original documents. I, therefore, recommend that to improve this assignment, there is a need to contact EBS Worldwide for original documents.
3. In the area of Corporate Entrepreneurship and Strategic Human Resource Management, two or three things that I learnt that I did not know before reading the assignment
i. The first thing, in the area of corporate entrepreneurship, that I have learned in the process of completing this assignment is the need for a solid business plan. In both EasyBuyMusic and EBS Worldwide, it is evident that Chris George, as the CEO, had a solid plan of what he wanted to create. Even though the first business failed, as a result of various limiting external factors, the second business has succeeded and operates at an international level. The second thing I learned is in the area of SHRM on the need for effective and transparent communication with the various stakeholders. Before, I thought that only good news for the company should be communicated, but it is now clear that even negative business should also be communicated.
ii. With the current change in the workplace, especially with the emergence of the digital workspace, it is essential to establish a clear human resource management protocol and provide staff with practical tools to complete their work. It is evident that, for EasyBuyMusic, there was no active management of human resources, e.g., by being let go through phone calls. The second this I have learned is on cooperate entrepreneurship and the need for networking, especially for startups. Through this assignment, I can now adequately appreciate the need for effective and extensive networks.
iii. The first thing I learnt as a result of completing this assignment is the need for a corporate entrepreneur to learn their niche. It can be argued that EasyBuyMusic failed as a result of an inadequate understanding of the niche. The second thing I learnt for corporate entrepreneurship is the need to be flexible and forward-looking. Once EasyBuyMusic failed, the CEO was flexible enough to move on to another venture. The third thing I have learned is on SHRM, that a need for a pragmatic contingent workforce management plan, especially in the case of freelancers and online management workforce.
References
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government, and civil society. Routledge.
EBS Worldwide Inc., 2009. Retrieved from http://www.ebsworldwide.biz/index.php
Financial Express, 2002. EasyBuyMusic renames itself, expands product range. Retrieved from https://www.financialexpress.com/archive/easybuymusic-renames-itself-expands-product-range/37717/
Rodrigues, M., 2012. Five entrepreneurs tell us how they reinvented themselves. India Today. Retrieved from https://www.indiatoday.in/magazine/supplement/story/20120813-business-entrepreneurs-stock-vinay-gupta-nikhil-velpanur-759294-2012-08-01
Shirey, M. R. (2013). Lewin's theory of planned change as a strategic resource. JONA: The Journal of Nursing Administration, 43(2), 69-72.