Change Management of Tchibo Essay

Change Management of Tchibo History of Tchibo In 1949 Max Herz and Carl Tchilling-Hiryan founded the company Tchibo GmbH.

The brand name was formed out of the name “Tchilling” and the word “Bohnen” (German word for “coffeebean”). The two founders had the idea of delivering coffee via mail. In 1955 they opened the first Tchibo shop in Hamburg, Germany where clients could try the coffee before buying it. In the following years more branches were established all over Germany. In 1973 the company decided to go through a major change. The coffee business was doing well and they wanted to expand their product line.

But instead of enlarging their coffee products the founders had the idea of selling articles of daily use in addition. Under the motto “Jede Woche eine neue Welt” (“every week a new world”) Tchibo offers its clients a changing range of goods from fashion, jewelry, sporting products, home accessories, cooking products and entertainment electronics every single week. Later on the company also founded the travel organization Tchibo Reisen. In the following years the company began to expand into Europe, mainly concentrating on eastern Europe.

Change ManagementSince its foundation the company Tchibo has gone through many successful change efforts. In 1949 two people started a company that has now over 12. 000 employees.

In 2008 Tchibo had a turnover of € 3. 6 billion Euros (approx. $ 4. 7 billion dollars).

From having one small coffee-store in Hamburg they are now represented in more than 40 countries around the world that include Switzerland, Austria, the United Kingdom, Hungary, Poland, Russia, Rumania the Czech Republic and Turkey. Today Tchibo is the fifth largest coffee roaster of the world.In my opinion Tchibo managed to be so successful because they always put enough emphasis on creating something new. Even though in 1973 the company didn’t have a crisis nor had it any problems in distributing its products, the founders decided to enlarge their product line. I think to many people the innovation of selling articles of daily use in addition to coffee sounded like a “dead duck”.

But Max Herz and Carl Tchilling-Hiryan must have been so fond of this new idea that they accomplished to convince their personnel that this innovation could push their success even more.I believe that the two founders managed to create a sense of urgency for the change and communicated the new vision to their employees clearly and understandable. Once a clear picture of the future was developed and obstacles were removed the idea of “every week a new world” could assume shape. I suppose that the entrepreneurs really walked their talk and lived their vision. In doing so they served as an example for their staff and only then they made the change authentic. If they hadn’t been so focused on changing the process of distribution back then in 1973 their company would never have been as successful as it is today.