Traditional Retail Industry To Pursue Non - Organic Growth Strategies And Means

Testrite Retail Group founded B&Q in1995. The Group has since become the most successful DIY and home furniture company in Taiwan. Chairman Ho began the reconstruction of Testrite Retail Group in order to pursue further development and future profit growth. He faced a changing retail environment both within Taiwan and outside of the country, as well as a deficit of managerial talent.This study examines Testrite Retail Group’s series of business transformations, and discusses the following subjects:(1) The rationales for, and the results, of transformations undergone by a rapidly-growing firm.(2) How to transform smoothly from a start-up led by its entrepreneur-founder to a more mature enterprise led by seasoned executives, resolving the inevitable challenges that will be encountered along the way.(3) Turning a successful entrepreneurial startup into a mature company that will grow in its core business, possibly expand into other areas, and perhaps even go public.The Case Research method is used for this study. Besides interviewing high-level management and collecting secondary data, this study also references Organizational-Change-related theories as the foundation of the analysis. The study also examines the transformation processes of Testrite Retail Group, to see if the changes made were sufficient, and to determine if there are lessons to be learned from the company’s experience.The conclusion of this study is that Testrite Retail Group’s transformative processes, and the ways it dealt with those in the organization who resisted change, are fairly consistent with what would be predicted by the theories of Organizational Change. That being said, the key factor in TRG’s the success was Chairman Ho, who embodied, that is, personally took on, the transformations that he made, before enacting them in the company; this personal metamorphosis allowed for Testrite Retail Group’s smooth developments, which garnered successful results in terms of such criteria as store, sales, and profit growth.