It is has become a necessity, rather than important, for organizations to be prepared to make all sorts of changes in this business in order to sustain in the market. These changes should encompass all or most of business strategies, culture, systems, and structure so that they can meet customers’ expectations, and find new opportunities for growth in business, career and sustain the competitive edge in the changing markets (McGrath amp. MacMillan, 2005). This is exactly the situation at Arrowhead Ltd, who had to venture into high-quality furniture production from less expensive furniture items in order to make some profits for the company. In order to improve the company’s profits through a change in business strategy, Arrowhead needs to implement changes at various levels and in different functions for achieving its objectives. These strategic changes should be able to bring about radical or transformational change to the established ways of working from both organizational and employee perspectives. In Gill’s (2006, p.323) words, ‘change requires effective management: clear objectives, planning. organizing roles, responsibilities, and resources, and compatible and supportive corporate policies, practices and systems. monitoring and control.Now that Arrowhead has identified its market segment, piloting the decision of producing high-end furniture is a crucial step towards venturing into the transformation. This process should be able to give a fair idea of how and what kind of furniture will be most desired by the new target customer. Firstly, Arrowhead should try to produce some furniture with the help of their best craftsmen who are enthusiastic and willing to innovate according to the customers’ requirement (Drucker, 2007).Based on what is feasible by the craftsmen, the company should decide on what types of furniture to be produced. Focusing on the chosen types will help in following a systematic innovation approach. This will also help in ensuring the innovation opportunities are in line with the strategic objective of the company, i.e. to improve their profits.