Assignment I: Management of Change
HK Uranus Investment Ltd
Executive Summary
In order to cope with the changes in the business market, companies must be able to cope with this changes and HK Uranus Investment Ltd is never an exemption. This report, tackles the change process of the company and how the company handle or will handle this change process. The change process is with regards to the new integrated marketing communication of the company. It is concluded that in order to have successful change process, the management must consider how the company will handle and manage it effectively and how they are able to overcome the resistance of the change process.
The main goal of this report is to analyse the change process of HK Uranus Ltd in terms of their promotional and marketing approach. Being a consultant, it is my core responsibility to determine which part of the change process is in the right path and which part needs intervention. In addition, it is also my duty to know how the company has implemented the change and if their approach adheres to the organizational objective.
The report will include brief description of the change process which includes the time line, people involved and major events of the change process. Further, this will also include the analysis of the current state of the business through the use of different marketing analysis approach. Drivers of change, sources of resistance and styles of leadership and management used will also be included in the analysis of this report. Furthermore, this will also provide discussion of scenario planning both for change and no change scenario.
Introduction
HK Uranus Investment Company Limited is known as a manufacturer and distributor of digital cameras and other electronic gadgets in Hong Kong. It has been established in 2005 by Mr. Tommy Chan. It is said that the competitive advantage of the company its broad experiences in terms of research and development, OEM capability, large product line, reliability and good reputation. HK Uranus Investment Company Ltd’s brand name is ECA which is currently being exported to major countries such as Mid-East/Africa, Asia, North America, Central/South America and Western Europe.
HK Uranus Investment Company Limited is an ODM and OEM manufacturer to produce different ranges of electronic devices like digital cameras, MP4 and mp3 player, mobile phone, GPS car navigator and digital camcorder. The main objective of the company is to provide quality products and services to the global market.
With the emergence of and rapid advancement of technology and digital and electronic gadgets, organizations that do not have the ability to adjust their system and innovate their problems are being left behind by larger and innovative companies. In this regard, it is important that the management will be open for changes, especially on their business and management approach so as to ensure that they are coping with the latest in the global market. Since HK Uranus Investment Company Ltd is a new company, the management should ensure that when they decide to implement some changes. They will have the enough ability, resources and skills to meet the objectives of the change management process. In their change management approach, the company decided to engage more in promoting their business in the HK market as well as international market. The company aims on having more intensive promotional tools to reach more customers and target market. The change management process initiative that will be given consideration in this report is about the Integrated Marketing communication change process that HK Uranus Investment Ltd.
1. Drivers of Changes
1.1 The External Drivers: Environmental Analysis (PEST)
Political Analysis
Hong Kong political aspect has less impact to its business sectors or more specifically, to the electronics industry. HK Basic Law is actually protecting organizations from major transitions in law in spite of their transfer to China. With this basic political aspect, it can be said that HK provides minimal effect on electronics industry. For instance, the production, import and export of materials for digital cameras will not be affected for the next ten years because of this political agreement. In this regard, the electronic firms like HK Uranus Investment Ltd will have more opportunity to benefit from low cost production in the country.
Economic Analysis
Hong Kong economy is known in the global market as a hub for international trade. Hong Kong is one of the leaders in trade and this is an important aspect for the economy of the country. Hong Kong market has been favourable to trade and most of the businesses have been efficient in balancing its exports and imports. The significance of trade in Hong Kong suggests the richness of its other related fields such as the electronics industry, specifically with HK Uranus Investment Ltd. This has been proven by the high contribution of digitalized products to different organisation sales and the entire economic development.
The essential role of the electronics industry in the country have suggested that that there are several similar businesses which emerges in the country. Because of the stiff competition, industries operating Hong Kong are positioned under much stress of offering their very best. In addition, this implies the importance of change management approach not only contribute to the economy, but most significantly to maintain strong business foundation as well as combat competition.
Social Analysis
It can be said that the social and cultural background of Hong Kong mainly influenced by the Eastern and Western nations. This is because of the status of Hong Kong as a major center for business and trade. Although the Hong Kong is greatly influenced by a number of different cultures, their people and their style still follow its old Chinese features intact. While keeping old Chinese traditions as well as cultural practices, the Hong Kong is also open to changes brought about by international influences. This in turn makes the nation’s culture rich and varied. This implies that the people of Hong Kong have access to some of the finer things in life, including technology.
Technological Analysis
Accordingly, Hong Kong is a melting pot of both Eastern and Western backgrounds (Chu, 1997). These Western and Eastern influences that make up the country’s socio-cultural background play a significant role to its current technological status. Knowing the HK has direct access to technological developments (Simon, 1995) from different countries worldwide, these can be being technologically inclined is quite easy. Furthermore, the high standards of living among the country’s citizens indicate the capability of the individuals to support technology as well as their ability to apply or implement them. The exposure to technology of both local and international market makes digital products, like digital camera and electronic gadgets, a marketable product.
1.1.1 Johnson & Scholes
After carrying out the PEST analysis, another important aspect to consider is the nature of the market environment. This is because firms in the same industry are facing various factors and be categorized differently. Accordingly, the nature of environment can be categorized into two dimensions.
Simple Complex
Static Dynamic and Analysis
For the electronic and technology industry like HK Uranus, the technology of the gadgets and devices can be considered as complex; however, the company ensures that the products are user friendly. Hence, HK Uranus can be considered in the complex status. On one hand, the business environment of the company depends on the external environment. As human resources have higher wage, they will expend more. Hence, the company should be able to do something to retain clients and improve customer services to meet their demands. In addition, HK Uranus has also been able to initiate various activities for their clients.
1.2 Internal Driver:
1.2.1 Strengths & Weaknesses Analysis
Strengths
The strengths of HK Uranus include the high potentials for growth and development of their electronic products and their ability to innovate in terms of their business and marketing approach. In addition, their strengths include the highly skilled labour forces and the policy and provision initiatives of HK local government. Aside from that, the company has the ability to innovative electronic gadgets designs to meet the needs of the customers and their intensive focus on marketing approach development.
Weaknesses
The only weakness of the company is their inability to match up with the larger industries in the HK market with high competitive position in the market place. Since they only start in 2005, they need to catch up with the marketing ability of the company and this can be done through initiating change management process.
1.2.2 Stages of Organization Growth
According to Churchill & Lewis (1983) identify six phases of growth:
I Conceptual Existence
II Survival
III Profitability – Stabilization
IV Profitability – Growth
V Takeoff
VI Maturity
In terms of growth status, it can be said that HK Uranus is in the stage of growing. Since, HK Uranus has been able to provide and distribute products in 5 continents, it can be said that it owns a stable client based and most of their clientele are in the average to middle and higher class. In order to grow more, the company is in need of reaching more clients through promotional and marketing activities. The goal is to establish a brand name by reaching more clients all over the world. Hence, the company is in the growth stage. Because of this, the company is in need of increasing their competitive power; hence a new integrated marketing communication will be needed for the company. This new integrated marketing communication should combine technological aspects with business strategy and align both management approaches to ensure that the company will be marketed effectively to reach and attract more clients in the global market. Through the use of internet and other media and print ads, this change process will be initiated.
1.3 Current State
1.3.1 Cultural Web
Accordingly, organizational development identifies the aspects which employees are seen as an important asset of the company (Chemers, 1997). This part will discuss the cultural state of HK Uranus through cultural web (See Appendix 2). In
Stories:
HK Uranus provides their new employee the chance to know more about the company through orientation and other workshops. This is to ensure that the employees know the standards and policies of the company as well as how it becomes competitive in the electronic market.
Symbols:
In terms of symbol, it can be said that HK Uranus has a triangular relationship between the clients, company and the employees. The mission of the company is to ensure that they provide quality products to their clients through the efficient work of the employees with a good management.
Power:
In terms of power, it can be said that the top management of HK Uranus has the final say in terms of decision making process. Though they allow their staffs to say their opinions and perceptions, the final decision still comes from the top management.
Organization Structure:
The HK Uranus’ organisational structure is somewhat hierarchical and vertically integrated. Hierarchical because the top managements made the decision and the employees follow orders from the top management. However, vertical because they also give their employees the chance for saying their opinion and grow professionally.
Control Systems:
The company uses comprehensive performance measurement and reward system as well as performance appraisal approach. The company motivates their employees by rewards and promotions. By due recognition given to employees by the company, they become more productive and positive.
Routines & Rituals:
. To ensure that the company adheres to quality and standards, they have a monthly meeting for the top management and quarterly meeting with the employees of each department. In addition, the company also provides training and development as part of their routines and rituals.
1.4 Growth stages (SWOT)
1.4.1 Threats
The threats of the company includes the strict and meticulous international standards for electronic gadgets, specifically the emergence of companies in China who are skilled in making electronic gadgets in bulk and the inability to meet the needs of the target market in terms of designs, and styles for consumer needs.
1.4.2 Opportunities
The opportunity of the HK Uranus Investment Ltd includes the rising potential in the global market and the growing awareness of international market for HK Uranus Investment Ltd. In addition, this also includes their opportunity in using advanced technology to aid in creating new designs for a shopping centre.
2. The Scope of Change
It can be said that industries initiate organizational changes because of the Internal and external drivers (Yee, 1998). In this regard, the internal drives of change include the need of the company to enhance their competitive position and performance. In addition, the internal drives include the need for reforming the marketing approach of the company. The external drivers include the improvement of their marketing approach through the use of integrated marketing communication. The following change agenda is showing the scope of be change to fit the environment.
1. Strategy (Please described)
It can be said that change can be regarded as the initiation of reorganization, restructuring or reengineering of an organization. The main goal of this is to improve company performance and output by coping with the new and efficient business approaches (Carlopio, 1998). As a competitive company in the electronic and digital camera, Uranus Investment Company Limited has always been trying to change their products as well as their marketing approaches in order to attain achieve quality products and services to their customers which is a major part of their strong commitment in the market. This change process will be in line with the new integrated marketing communication approach to reach for customers for the company.
2. People (Please described)
For the change process of implementing a new Integrated Marketing Communication approach, the people who were involved include the top management who is responsible for the approval and evaluation of the change process. In addition, the people involved also include the marketing department from marketing manager to their down line, human resource management and audit management. The role of the marketing manager is to ensure that all levels of their department are well-informed about the implementation of the integrated marketing communication. Furthermore, the role of the HR management is to ensure that all staffs needed for this change process will be up and available. The audit management will ensure that financial resources will be available in case the marketing department will need it to implement the change process. The next person involved is the consultant.
3. System
The top management will be responsible to ensure that all system is properly set up for the integrated marketing communication. In this regard, the change process will conduct marketing research to know the latest about marketing communication and integrate the result with the change plan.
4. Structure
The major structure for this change process includes the development of change plan including goal and objective setting from the top management to marketing manager who will have the major responsibility for the entire change. In addition, another major event is the proper dissemination of the information for all the involved staffs responsible for making the change process possible and successful. The change process is the initiation of IMC focusing on advertising and promotion of the entire company and their brands. The change process also includes the released of new commercial ads from prints and media advertisement as well as the internet.
3. Sources of Resistance
Although there are aspects which support change process, there are also some contexts which inhibit or restrain change process. The following are the resistance which inhibits the success of the change process for the HK Uranus; these include the perception or reaction of stakeholder, absence of management support and organisational culture.
1. Job-related Issues
In terms of job related issue, the major issue to be considered is the setting up of website and internet for the staff and the members of the organisation for online communication.
2. Inertia of Manager
Furthermore, the inability of the top management to provide support on the implementation of the change process will hinder the transformation in attaining the set goals. In addition, it is essential to consider good communication skills because lack of communication among the involved people will affect the entire progress of the change process. It can be said that in HK Uranus, these resistance have been given enough attention and consideration (Wilkins & Dyer, 1988).
3. Fear of the Unknown
One of the sources of resistance that can be attributed with this change process is from management and employee of the HK Uranus which include the negative reactions. There may be staff which doesn’t have the ability to meet the needs of the change process specifically in implementing the integrated marketing communication approach.
4. Styles of Leadership
In dealing with the change process, it can be said that the current leadership approach of the company is the authoritative and democratic style. In this regard, the marketing manager who has the major responsibilities for this change process involved the staffs in decision making process. In this regard, the employees have the right to voice out their ideas and though which they perceive as helpful for initiating their change process. According to McGregor (1960), leadership style can be considered to fall under theory x and y. In this case, the leadership of HK Uranus is authoritarian (Theory x) as well as participative and soft management (Theory Y). The company has shown that although the power comes from the authority (leader), they also give their employees the chance to explain what they know to enhance the outcome of the change process.
4.1 The Leadership / Managerial Grid
The management style of the company to implement this change is diversification approach. In this regard, they will integrate their business approach with their marketing approach to reach more clients in the global market. Blake and McCanse (1991) have provided that leadership and management styles matrix into two major dimensions (concern for people and concern for production). In the case of HK Uranus, it can be noted that the main revenue of the firm comes from their electronic sales. Hence, the company carries out lots of practices to facilitate their production; they provide comfortable and friendly zone for their skilled workers and make a good connection with their clients. The company ensures that they provide high tech and innovative products.
5. Scenario Planning
5.1 No change scenario
HK Uranus Investment Ltd is ensured that they need they still do not need the changes of their products since they know that all their products are still more advanced in terms of technology than other company. In this regard, Uranus Investment believed that having a new marketing approach through the use of integrated marketing communication is not yet advisable for the company since they are able to have balance export and import because of the ongoing support of their customers to the digital and electronic products they are offering. With the international trade that they are engage in, the management also believe that changes in this aspect are not required because they are still have strong position in local and international level. Herein, the choice of the HK Uranus is to continue their marketing and promotional approach without imposing or changing their marketing communication approach. Hence, the company will continue to utilise their market approach and give support with their existing business strategy.
5.2 Change Scenario
The change is needed in order to reach more clients in the global market in order to make their customers be more aware of their existence. With this, the change will be implemented as soon as the change plan has been implemented and all the contexts needed to make the change successful. The change is needed in order for the company to be able to have a more comprehensive marketing communication approach specifically with the use of internet, print and media advertisements and other promotional tools.
Conclusion
Being a consultant, it can be said that the management of Uranus must be willing on the needs of the company by monitoring what is effectively working and now working in the change process. In order to execute the change for having a new integrated marketing communication, the management must be able to establish a better environment for changes, reassure support as well as commit all their management and financial resources.
Thus, it can be concluded that the change process is indeed a crucial and critical management aspects that must be considered by an organisation. The management must ensure that the change process really improved the strength and competitiveness and meet the objectives of the company. It is said that this will be successful if through assessment and evaluation of the company performance has been made. It is recommended that HK Uranus Investment Company Limited must see to it that that the changes are well planned and strategically imposed because these will the basis for having a successful change process.
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