“Managing Change and Restructuring at Sweet Treats Limited: A Management Consultancy Report”

Sweet Treats Limited (STL) is a small regional chain of cake shops with its headquarters in Warwick. STL
was originally set up by Julie Bird. Its shares are now owned by family and friends of James Bird, the
current Managing Director. Five other directors manage the company with James.
Over a three year period STL has expanded by taking over independent cake and cookware shops in local
towns in the Midlands. STL now has 6 shops including the main shop in Warwick and is hoping to expand
to 10 shops.
As part of their ongoing expansion plans STL also wants to introduce an online ordering service using a
new online software package. This would offer a nationwide delivery service to customers’ homes. This
service would initially run from STL’s headquarters in Warwick but with plans to expand into a new
manufacturing unit.
The expansion through takeovers and the introduction of the online cake ordering service will result in
restructuring changes within STL.
These would include:
• the introduction of one regional manager based in the Warwick shop
• a reduction in the number of shop manager roles
• a reduction in the number of shop assistant roles
• an increase in the number of cake bakers as well as a unit manager (for new manufacturing unit)
• an increase in the number of delivery driver roles
• the introduction of an e-commerce team to manage the online business
Each of the other 5 shops now has one shop manager. However STL would like to introduce one regional
shop manager and have a cake baker in each store . The Warwick shop would continue to have a shop
manager. In the smaller shops, the baker will also act as the shop manager and manage any shop
assistants.
Module code
and title:
MG630 Change and
Organisational Development
Module leader: Dr Sisi Wang
Assignment
No. and type:
CW1: 2,000 Word Individual
Report
Assessment
weighting:
60%
Submission
time and date:
Sunday 9th June 2024 before 2
pm.
Target feedback
time and date:
3 weeks after submission
deadline.
2
The proposed restructuring is not popular with the current employees. They feel that the reasons for the
change, the need for the reorganisation of staff and the final staffing structure have been poorly
communicated to them.
James Bird and his two fellow directors thought that the letters sent to staff and the notices on the staff
notice boards in each shop clearly communicated the reasons for the reorganisation and the new structure
that was to be put in place.
However the restructuring process is causing uncertainty among staff. The staff have also experienced a
loss of motivation and a loss of trust in James Bird and his fellow directors. There is an increase in
voluntary staff turnover including the loss of managers. STL will also have additional costs associated with
the online business expansion which will include :
• recruitment of the e-commerce team and associated IT software
• training costs for bakers to become shop managers
• training costs for delivery driver roles.
A number of the staff in current job roles had originally been employed in the shops before the takeover by
STL. Some of these staff are not very flexible and are resistant to any change in their job roles.
James Bird is keen to continue to expand and develop the company and has recently refitted part of the
Warwick shop with a section selling partywear. This has proven to be a success and James now wants to
introduce similar sections into the other shops. This development will impact on current job roles and will
involve some restructuring.
James is aware of the problems associated with the planning change and restructuring and so he has
contracted your management consultancy to help with the planning of this change.