Research Korner: Hong Kong Examples

Managing Change - Sustainability Improvement Project for PCCW Hong Kong

Introduction Paper is one of the most energy-intensive commodities since it has large direct energy requirements, as well as substantial indirect energy use through its reliance on chemical inputs. Paper production and consumption are growing most rapidly in developing regions at nearly double the world average rate (Duchin et al., 1994). The demand for paper and the increase in its consumption have caused alarm to most countries and businesses in various regions. The raising paper consumption has led to ecological and environmental problems for the whole world. More paper being used means that there are additional wastes for every company that uses paper products. An increase in demand for paper by companies means that more trees will be cut down in various parts of the world. Companies that care and wanted to show that they have corporate responsibility started to take action regarding these issues. Various companies have decided that they want to reduce paper consumption.  One company that wants to reduce its paper consumption is PCCW Hong Kong. Being a caring company that has Corporate Social Responsibility (CSR), PCCW decided that it needs to do something and call for action & campaigns towards the cause. The reduction of paper consumption will try to solve ecological and environmental problems; it will also create actions that can benefit the company operation by cutting the usage of paper and lowering the cost of waste management.    This paper intends to design a small and sustainable improvement project for PCCW Hong Kong to reduce its paper consumption. The paper will make use of various tools and methods to introduce change in the company. Background/Drivers for change PCCW is recognized as the largest telecommunication enterprise in Hong Kong. PCCW operates in many small business units. PCCW offers products and services in fields like Telecommunications services, Television and Media Content, IT Services, PCCW Solutions and Infrastructure.  PCCW has made contributions to ICT and IT; such contributions include landline telecommunications, mobile telecommunications, broadband internet and PCCW solutions. The ICT and IT contributions provided innovation for the industries in Hong Kong and other parts of the world. There are various drivers for change; one is increasing innovation/IT knowledge. Change should be implemented because there is an increase in innovation and such innovation increases the demand for paper.   Another driver for change is the change of value, operation cost & effectiveness. PCCW is changing its values, operation costs and effectiveness; by reducing paper consumption the company can slowly achieve the changes it desires.   Moreover, the issues about waste management are another driver for change. The increasing paper consumption poses a problem for waste management. The accumulated waste can cause problems regarding the disposal of such waste.   If the company does not decrease its consumption of paper it will need to determine newer means of managing its waste. Ecology/environmental issues are also drivers for change. Paper consumption is an environmental issue for the world because the materials used in the making of paper are mostly consisted of wood. As more paper is used, more trees tend to be cut down. This causes the flooding in some countries.   Lastly, a driver for change is the corporate responsibility of the company. Like all other corporations, PCCW has a social responsibility to refrain from abusing the environment and to reduce their waste. This led the company towards thinking about determining actions to reduce paper consumption.   Stakeholder analysis The parties that will be mostly affected by the proposed change include the employees, customers, paper suppliers/printing companies.  The employees will be greatly affected because they will have to reduce their use of paper. This may be inconvenient as it requires them to change their work habits.  The employees are the ones that will have to adjust to the changes in the use of paper thus their cooperation will be required once the change process starts.   The people who will gain considerable benefits from the change are the government and the environmental groups. The change will provide an opportunity for the government to work with PCCW to build a pilot scheme in order to build a good image.  The change can help the government to become a pioneer by starting off the campaign to save their environment. This would build a better image for the government and it will help them have a successful start in creating change in their environment. The government will also receive fewer complains and criticism from the environmental groups as the reduction of paper use will solve the issues raised by environmental groups and appease their demands.  This will also allow PCCW to gain respect from certain environmental groups.  The government can create a huge impact the change process, this will only happen once the government becomes interested in the effects of the change process.   There is a small chance that the customer will be affected by the change process because the various printed documents/ information they want may not be accessible or be in limited numbers. The customers will have a hard time in accessing monthly bills/statements, promotion pamphlets, reply forms and application forms because they would all be converted to an electronic document format. Paper reduction means that PCCW will refrain from sending any hard copies to their customers.     Two similar parties that will be minimally hit by the change proposal are the paper suppliers and the printing companies.  These groups are the ones that make and sell paper products; the reduction in the demand for paper would cause a decline in the business growth.  The reduction of the demand for paper products would cause the company to implement personnel reduction or close down the printing business.   Issues Diagnosis & Overcome Strategies/Solution Finding Force field analysis is an exceptional tool developed by Kurt Lewin that provides managers with the opportunity to effect change (Gottlieb 2001). The next figure shows an analysis using force field model. One driving force for the change process is minimized environmental issues; less paper use means less damage to the environment. Another driving force for the change process is cost reduction for businesses. Less paper use could mean reduced supply expenses on paper products. Moreover, a driving force for the change is energy preservation in terms of product delivery. The lower demand for paper makes paper companies reduce their delivery schedules and helps in minimizing energy use. Reduced use of energy can be beneficial to the environment.  Lastly, a driving force for the change process is the belief that paper reduction will show that the company has social responsibility. Paper reduction will give a brand new image for the company and how it wants to provide responsible service to clients.   One restraining factor is that it causes an inconvenience to personnel and their clients as they will have only a limited use of paper products. Paper reduction will force the employees to use limited paper supplies.  Paper reduction can result to reduced quality of work. The change process may compromise the quality of work done by the employees. Some employees depend heavily on paper products and the reduction of such office supplies may lead to them downgrading their services.  Paper reduction in PCCW could result to unemployment. When delivery schedules are reduced it means that the company will have to reduce the paid work hours of the personnel. If things grow worse, the alternative for the company is to terminate some personnel. The change process may result into habit change which may be the cause of strained relationships between the firm and the personnel. The change process will require the employees to change some of the things they do to perform their tasks, the employees will not like the change and this will result to arguments within the company. The change process may also lead to a forced discovery of alternatives to paper. Examples of alternatives can be in the form of electronic documents. The alternatives will dramatically reduce the number of paper consumed without sacrificing the quality of the employees work. The alternatives may give the company higher expenses due to the cost of researching and implementing the use of alternative technologies to paper. .    Resistance and Strategies to Overcome These Most people are afraid of the unknown. They often assume that the change may be inconvenience as it requires them to change their habits. Resistance to change is an emotional/behavioral response to real or imagined threats to an established work routine (Sims 2002).  People in the organization might resist change because of psychological modes, systems models, institutionalized models and culture models. Employees feel fears and anxieties when they are informed about the change process, this is an example of the psychological mode of resistance to change. The reduction of paper usage may increase the employee’s workload because they will have to convert documents into a format accepted by electronic documents. For clients, they will worry about the security issues when they use the electronic document systems. PCCW can solve these issues through consultative and empowering activities that can help in overcoming their anxiety and fear.   Sometimes employees believe that the change system is impractical; this is an example of restraining to change through the system mode. The file system and document circulation system may tend to still use paper for keeping records of salary bills or tax documents of employees. For clients, they may not like to change their habits and to then synchronize it with the change process. PCCW can remove such resistance through redesigning systems and making sure that these systems support new changes. When employees think that the change is unnecessary that means they are practicing the institutionalized mode of resistance to change, This mode gives them a belief that the change would force them to learn new skills to replace the traditional way of paper documentation. It is vital for PCCW to demonstrate the value of the proposed change or the urgency of change for organizational success or survival.   Employees have their own beliefs and principles, once they see that the change is different from their beliefs they will resist the change. This shows that they practice the cultural mode of resistance. Organizational culture is one of the toughest resistances to change.  This type of resistance cannot be easily removed since it is embedded in every employee of PCCW. The employees should be given a clear explanation on why such change is needed and what are the proposed alternatives to paper.     Kotter Process of change In every process in life and business a procedure should be followed; Kotter’s process of change will be used to provide an organized means to initiate change within PCCW. The process of change needs to make use of a multi-step process that will create power and motivation that is sufficient to overwhelm all the sources of resistance to change.  The process of change will only be successful if it is driven by high-quality leadership, not just by excellent management. 1. Establish a sense of urgency             To establish a sense of urgency, there will be posters containing facts about the increase of paper consumption, company expenses on paper products, environmental decay due to increasing waste and what the company wants to do with such issues. These posters should be placed on various bulletin boards in the companies’ offices and subsidiaries. The intended target viewers of the posters are the PCCW personnel located in their different offices. For the clients there will be informative notes and suggestions on PCCW’s website.  The informative notes will contain the figures for the increase in paper use, the increase in waste for the company and the proposed paper reduction scheme.  The informative notes on PCCW’s website will also include the new policies about paper use and paper consumption by the company.  For the paper suppliers PCCW should send out corporate letters informing them about their reduced orders for paper products. The letters will contain the reasons for the reduced orders of paper products.   2. Form a powerful coalition Coalitions will be formed with the organization Conversation Association of Hong Kong. This association is a champion of sustainable development and is dedicated to the protection of the environment. PCCW would also involve Hong Kong’s Environmental Protection Department in the coalition.  The coalition assists each other in making sure that paper usage will be reduced. The Conversation Association of Hong Kong and the Environmental Protection Department would help PCCW in gathering data that will explain why there is a need to reduce paper use. The two organizations will help PCCW reach the intended viewers of the message.   3. Create the vision The vision is to reduce paper consumption in PCCW and its subsidiaries. By 2010 PCCW and its subsidiaries will have reduced their use of paper products by 50%. The vision is to motivate the personnel and the clients to reduce their usage of paper products. The project also aims to motivate the personnel to use electronic documents.   4. Communicate the vision The members of the coalition will first hand information regarding the vision of the company and how it will be attained. The vision will be communicated via personal correspondence during the meetings of the coalition. The employees will know the vision through posters that will be placed in the office bulletin boards. The customers will know the vision through articles and postings in PCCW’s website. The paper makers will be informed of the vision through corporate letters.   5. Empower others to act PCCW should initiate some sort of contest wherein the department which can reduce paper use after three months will be given a special commendation or a discounted price. PCCW will also install in its website a portion where clients and employees can suggest alternatives to paper products. This portion of the website would encourage the customers and the employees to determine means to reduce paper reduction without causing them much discomfort.   6. Plan for short term wins To achieve short term wins the management of PCCW needs to reduce the paper works by minimizing some of their processes and recording procedures. The management would have to determine means to reduce the steps in making records about transactions made by the company.   7. Consolidate improvements and produce further change The improvements that have transpired will be consolidated and analyzed to see whether additional change should continue. It will then be consolidated with other changes that have happened.  Recordings of the changes within PCCW will be documented through electronic documents.   8. Institutionalize the new approach In this step the coalitions have complete assurance that the personnel and the customers have minimized the use of paper. In this step a strong system is being implemented to institutionalize the use of paper.  When the people have been institutionalized they will not be tempted to make use of paper and they will rely on the use of electronic documents. Change leadership For change to be a success it needs to be run by a competent person or a person that knows how to lead. Change is not a process that automatically gains its goals; it needs proper guidance and direction for its goals to be reached. The leadership on the change process is a hard task since one needs to know how to overcome the barriers and resistance to change. Those who are assigned to lead the change process needs to know how to establish change with the use of the organization’s culture. To manage change, leaders need to have an established direction. In the case of PCCW, the focus of the management should be on making sure that paper use will be reduced by 2010. To manage change leaders need to align the people. Through the website and bulletin board postings about the need to reduce paper consumption the managers of PCCW can try to motivate the personnel to think of means to reduce paper use. The manager should give additional information about why the change is necessary for the company’s survival.  To manage change the leaders need to inspire the employees. The managers of PCCW should be the first ones to reduce their use of paper products so that the employees will follow them.   Evaluation Approaches In evaluating the change process, two approaches are used and those are formative and summative. In the formative approach the effects of the changes will be observed and taken note of while the change process transpires. In this approach the initial issues and effects of the change process will be known and actions will be taken to prevent complications.  During the change process the amount of paper used by PCCW should be recorded according to the different departments and subsidiaries. Each department would email their records of the number of papers used over the number of papers available in a department’s inventory. By doing this the company can check whether the employees followed the paper reduction scheme. After all records are collated, they will be analyzed to see if there is an increase or decrease in paper consumption. During the change process, the management should coordinate with the waste management group to determine how much paper has been put in waste bins by each division of PCCW.   In the summative process the effects of the changes will be observed and taken note of after the whole change process has expired. In this approach the change process has been completed, the evaluation serves as a concluding part of the whole process in this approach the overall effect of the change process is seen and notes will be taken on what should and should not be done on the succeeding change processes. In the summative approach the strong points of the change process will be recorded for future references. After the change process the managers should check for the total consumption of paper for the whole year; it will be compared with the paper consumption for the previous years. After the change process, the paper waste of the company before the change process will be compared with the paper waste of the company after accomplishing the change process. Conclusion To reduce the paper consumption the PCCW should make sure that its managers are willing to reduce their use of papers. The managers would then motivate the employees and the customers to change their practices regarding their use of paper.  The managers need to make sure that the change process will be followed and if any change needs to be made, they will be ready to integrate it to the process. The managers need to be wary of the risk exposure while the change process is being implemented. The managers need to be ready for the resistance by some of the employees, customers and suppliers. The best thing the managers should do is slowly reduce the paper supplies allocated for each department; by doing this each personnel would not be tempted to consume paper products.   References Bentivegna, V, Brandon, PS & Lombardi, PL (eds.) 1997, Evaluation of the built environment for sustainability, E & FN Spon, London.   Doherty, TL & Horne, T 2002, Managing public services implementing changes: A thoughtful approach to the practice of management, Routledge, London.   Duchin, F, Idenburg, A, Lange, G & Thonstad, K 1994, The future of the environment: Ecological economics and technological change, Oxford University Press, New York.   Fishbein, M, Goldberg, ME & Middlestadt, SE 1997, Social marketing: Theoretical and practical perspectives, social marketing: Theoretical and practical perspectives, Lawrence Erlbaum Associates, Mahwah, NJ   Gilley, JW & Maycunich, A 2000, Organizational learning, Performance, and change: An introduction to strategic human resource development, Perseus Books, Cambridge, MA.   Gottlieb, MR 2001, Managing group process, Praeger, Westport, CT.   PCCW Corporate Website 2008, Company background, viewed 12 August, 2008, <http://www.pccw.com/eng>.   Sims, RR 2002, Managing organizational behavior, Quorum Books, Westport, CT.     Appendix: Time line for the change process

Managing Change - Sustainability Improvement Project for PCCW Hong Kong

Introduction Paper is one of the most energy-intensive commodities since it has large direct energy requirements, as well as substantia...

Effectiveness of Public Transport Systems for Tourists in Hong Kong

Effectiveness of Public Transport Systems for Tourists in Hong Kong   Introduction Hong Kong is geographically condensed. Among other things, Hong Kong prides itself with one of the world’s most well organized, secured, affordable, and numerous public transport systems. Tourists and locals can choose among taxis, ferries, rails, buses and trams to get around without difficulty and catch magnificent glimpses of the city. The public transport systems in Hong Kong are among the most modern, most accessible and cheapest in the word ().   Public Transport Systems in Hong Kong Mass-Transit Railway (MTR) The MTR is a safe, modern and efficient railway system that helps tourists get around Hong Kong Island, the Kowloon Peninsula and Lantau Island. The tourists can chooses among the convenient drop-off points provided by the MTR for all the best sightseeing, shopping, entertainment and dining options. The MTR is the best choice if a tourist wants to get to Hong Kong's attractions as well shopping and dining outlets quickly and conveniently. It is also a perfect transportation for visitors who want to have glimpses of the whole city. MTR is ideal for sightseeing visitors because of the wide-ranging coverage of the major city attractions and clear signage.   Taxis Frequently the most excellent choice for short distance travels. Taxis are present in major areas and fares are reasonable. Many drivers speak some English. However, it is encouraged that tourists have their destination written in Chinese characters. Taxis come in different colors to indicate their area of service: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Red taxis operate in the urban areas of Hong Kong Island and Kowloon, but can also take passengers to and from the New Territories</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Green taxis operate in the New Territories and are cheaper than the urban taxis. They cannot take passengers into the urban areas of Kowloon and Hong Kong Island</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Blue taxis operate on Lantau Island only and are cheaper than urban and NT taxis </li> </ul>   Buses Bus routes cover approximately all of Hong Kong Island, Kowloon and the New Territories. Kowloon Motor Bus, New World First Bus and Citybus operate routes to cover Hong Kong Island, Kowloon and the New Territories. New Lantau on the other hand drives on Lantau Island while bus services are offered by Long Win Bus to north Lantau and the airport. Final destinations are notably put on view in English and Chinese on the front of the bus. Exact change is required. Octopus cards are accepted.   Minibuses Minibuses are small-scaled passenger buses that are capable of carrying more or less 16 passengers. Red minibuses operate on routes that are not always set, passengers can get on, and off wherever down the course excluding where special prohibitions apply. Green minibuses operate on specific routes at fixed prices. Exact payment is required when getting on. Octopus cards are accepted. Minibuses are sometimes faster. Once filled, minibuses will not stop until someone asks to get off. Please note that minibuses are more appropriate for people Cantonese speaking people and for those who are familiar with Hong Kong. Generally, minibuses serve areas, which are less accessible by other buses.   Ferries Ferries are abundant in the waters of Hong Kong. These ferries connect Hong Kong Island, Kowloon, the Outlying Islands, Macau and Mainland China.  With an excellent harbor and more than 260 outlying islands, Hong Kong has created n broad network of water transport including regular company-operated ferry services and the special "kaido" services. One of popular ferry that attracts tourists is the Star Ferry that travels across the Victoria Harbor and the various routes to the major, scenic outlying islands. Hong Kong’s ferries are typically cheaper than buses and trams. They are also fun, and provide interesting views of the harbor.   Trams Trams travel along an east-west path across north Hong Kong Island and follow the similar tracks they have covered since 1904. Trams provide cheap and convenient transportation around town. The upper decks present splendid views as they drive through busy city districts. Trams run from early morning until midnight. Octopus cards are accepted.   Kowloon-Canton Railway (KCR) The KCR provides commuter train service from Kowloon through the New Territories to the boundary with Mainland China as well as long-distance intercity rail transport into Mainland China. The KCR operates three domestic passenger rail services: East Rail, West Rail and Light Rail.   Benefits of Public Transport The cost savings for travelers using public transportation are high. A traveler can purchase a visitors pass for a local public transportation system and ride all day. This is more affordable than renting a car or taking numerous cab rides around the city or buy gas and park a vehicle.   The most popular activity for those using public transportation while visiting a city is sightseeing, restaurant dining and night life, shopping, travel to and from their place of lodging, visiting a historical site and travel to and from the airport. Travelers who originate from large metropolitan areas are more likely to take advantage of a city’s local public transportation system ().   Travelling around Hong Kong is easy and convenient. Hong Kong’s Public Transportation System is exceptional. The KCR trains, MTR trains, the light rail trains, the buses, taxies, mini-buses, and ferries encompass an enormous transportation network branching out from all directions of the whole city ().   Hong Kong’s Visitors Travel Arrangements Visitors can be categorized into three broad groups by how they arrange their journey to and within Hong Kong, whether it is in the form of “all inclusive tour”, “air ticket with hotel tour” or “non-package tour”. Since travel agents normally arrange all the transport for all the all-inclusive tours, visitors of this category seldom use the public transport facilities. Visitors of the other two categories normally have to make their own travel arrangements within Hong Kong. Other than, some visitors who may join local tours with own transport or may have special arrangement for private transport, a great many of them rely on the public transport services. According to the Visitor Profile Report 2001, for those visitors who did use public transport system, most of them chose Mass Transit Railway (MTR) and taxi to travel around Hong Kong.   Mode of Travel Generally, tourists are divided into two categories when it comes to mode of travel – (1) Tour package with tour guide and (2) Independent travel.   What do tourists look for in Public Transport Systems? Railways 1. Safe during usage of service 2. Comprehensible and precise directional signage and location maps 3. A ticketing system that is easy to follow 4. Punctual and reliable service 5. Clean and pleasant compartment/platform 6. Understandable announcements at the stations and on the trains 7. Appropriate staff attitude (polite, patient and attentive) 8. Competent enquiry handling 9. Effective staff communication skills 10. Toilets at the stations 11. Prompt and professional treatment of complaints 12. Tourists transport passes that will suit the needs of the touirists   Taxis 1. Safety on board 2. Honest taxi drivers 3. Taxi drivers with professional attitude 4. Well-maintained and clean taxis 5. Taxi drivers with effective communication skills 6. Clear and accurate information about fares and destinations 7. Assistance in loading and unloading baggage (www.sqs.gov.hk)   Buses 1. Safety while on board 2. Clear and accurate signs and route information at bus stops 3. Well maintained and clean buses 4. Punctual and reliable service 5. Suitable operating hours 6. Appropriate attitude of bus driver 7. Bus drivers with proper attitude 8. Neat bus drivers 9. Tourist buses 10. Tourist transport passes that suits tourists’ needs  (www.sqs.gov.hk)   Tourists’ Special Requirements Buses <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Clear and accurate signs and route information at bus stops</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Provision of tourist buses along major attractions</li> </ul> Railways <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Provision of toilets at stations</li> </ul> Taxis <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Provision of clear and accurate information about fares</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Assistance with loading and unloading baggage</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Tidiness of taxi drivers</li> </ul>   Service Requirements of Visitors Visitor Segments 1. Family Visitors – visitors that travel with immediate family members 2. Business Visitors – visitors that travel for business / convention and exhibition purpose   The “safety and security when using the service” is among the top priorities of both family and business visitors. Business visitors are more demanding on services, they look to efficient and prompt services, clean and comfortable environment. They are generally less satisfied with the language skills of the frontline practitioners. Family visitors are more demanding on accommodation, shopping and in-town transport services. They place higher importance on “safety and security when using the service” and “proper attitude of staff” ().           How do Public Transport Systems meet the Requirements of Tourists? MTR 1. Ensuring Safety A highly developed train control and signaling system helps to ensures that there is a safe distance between trains. MTR has also set up a perceptive fire alarm system and used noncombustible materials in the trains. 2. Reliability The train service is dependable. It is not affected by traffic or weather conditions. The trains operate 19 hours a day, 7 days a week. 3. Cleanliness and Comfort The trains are well maintained and clean. The trains and underground stations are air-conditioned to guarantee that the passengers have a comfortable travel environment. 4. Convenience The stations are located in the busiest parts of Hong Kong to make sure that the passengers can access the trains conveniently. Each station has multiple, clearly identified exits. For easy access, all platforms are linked to the public spaces by escalators (www.mtr.com). 5. Airport Express Tourist Octopus This 3-day Transport pass is widely accepted by all major transportation services in Hong Kong. The pass takes the tourist to and from the airport and allows them to travel within Hong Kong in a hassle-free way (). 6. Facilities Aside from the ticketing and train services, MTR also offers additional services to its passengers. Among the additional facilities and services offered are: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Post Boxes</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> ATM Service</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Public payphones</li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> MTR Travel Services Center – serves as travel agent, sells local and overseas tours, hotel rooms and other ticketing services. It also serves as a customer service outlet providing MTR-related information and selling souvenirs to passengers.</li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Location maps are installed at all MTR station halls. Passengers can find hotels, shopping centers and major buildings near each station ().</li> </ul>   Taxis The Transport Department encourages taxi drivers to follow The Hong Kong Taxi Service Standards to ensure that the requirements of the passengers are met. The said guideline is composed of 8 items that will help to achieve quality taxi service. 1. The taxi driver needs to keep a clean and tidy appearance 2. The taxi driver needs to keep his taxi clean and comfortable for the passengers 3. The taxi driver must charge exact fare 4. The taxi driver must be courteous at all times 5. The taxi driver must use the most direct route or route specified by passengers 6. The taxi driver is encouraged to be proactive in providing assistance to passengers 7. The taxi driver must adhere to taxi regulations 8. The taxi driver must provide the passengers with a safe and smooth ride ()   Kowloon-Canton Railway Corporation 1. Customer Services Centers The passengers can access the company’s per-recorded information any time of the day through fax or phone. The hotline service is available in three languages – Cantonese / Potonghua / English.   The system’s voice recognition feature enables passengers to obtain train service information more conveniently ().   Octopus Card Travelling in Hong Kong is convenient and stress-free because of the Octopus Card. Each Octopus card has a built-in microchip that contains all fare information. Four types of Octopus card are designed for adults, elderly, students and children. The versatile Octopus cards can be used on different transport systems; MTR, Airport Express, KCR East Rail & Light Rail, buses, ferries etc. These cards can also be used on most public payphones, vending machines and photo booths in transport premises ().   Recommendations In order that a more user-friendly transport environment conducive to tourism development is devised, close attention should be given to the following areas at the more detailed planning level: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Need of well-integrated public transport facilities as far as possible at major tourist attraction nodes</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> To promote tourism, major tourist attraction nodes should be linked up by a convenient public transport. To facilitate easy access, proper signage, route map and tourist information should be put up where appropriate. </li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Promoting the use of environmental friendly transport to improve the quality of environment and thus enhance the travel experience of tourists</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Making use of advanced transport information system to assist visitors to go around the territory</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Providing advanced multi-lingual tourist information system at major attraction nodes such as that tourist could obtain relevant information such as transport services, lodging, routing, mode choice and location of attraction. </li> </ul>         Railways 1. The staff can have language and body language training. 2. The company can come up with the proper guidelines for dealing with visitors from diffident cultural backgrounds. 3. The company may provide resources of different major languages for the staff that are stationed at the Customer Service Centers. 4. The company may also put up translation systems that will communicate to foreign visitors 5. The KCRC must improve its signage of toilets at stations 6. The MTR may provide signage of close by toilets on the location maps at each station.   Buses 1. There must be a database of all route information at selected bus stops that will guide the visitors. 2. Bus operators need to asses the needs of the tourists as passengers. The tourists need tourist passes that will suit their needs. 3. The Bus operators must cooperate with the Hong Kong Tourism Board.   Taxis 1. The Hong Kong Taxi Service Standards must be adhered to in order to promote a quality service for passengers. 2. An appropriate language proficiency evaluation for taxi drivers must be developed. The industry must promote the use of Workplace English and the drivers must be trained in order to have more effective communication skills.

Effectiveness of Public Transport Systems for Tourists in Hong Kong

Effectiveness of Public Transport Systems for Tourists in Hong Kong Introduction Hong Kong is geographically condensed. Among othe...

Strategic Analysis of PCCW Hong Kong

Strategic Management Coursework Assignment         Strategic Analysis of PCCW Hong Kong         (Name of Student) (University)           (DATE)     Executive Summary   This assignment discusses and analyzes a specific company, which provides adequate information regarding one of its essential aspects, its human resource. A brief profile of the company is provided, including the company objectives, operating industry, and competitive position or environment. The evaluation and analysis of the organizational change process of the company is done by using different tools of analysis, in relation to strategic development.   The company chosen for this analysis is PCCW Limited, which is regarded as the leading company in Hong Kong and in all of Asia that provides communications services and information technologies. Findings of the report include possibly adopting both resource-led and market-led strategic development business models, particularly the Core Competence strategic option in order to improve the productivity and performance of PCCW’s human resource. However, major recommendation for the organization includes implementing additional trainings and seminars for the benefit of the employees and the organization as well. Another recommendation is using an appropriate Information System that would contribute to the improvement of the communication between the organization and its shareholders or suppliers.              Table of Content   Cover Page                                                                                                                  1 Executive Summary                                                                                                    2 Table of Content                                                                                                         3 Introduction to the Report                                                                                          4          Brief for the Case Object                                                                                            4 Strategic Analysis                                                                                                       6 Strategic Formulation                                                                                                 8 Strategic Option                                                                                                          13 Evaluation of Strategic Option                                                                                   15 Strategic Implementation                                                                                            16 Conclusion                                                                                                                  18 References                                                                                                                  20   Introduction to the Report   This assignment discusses the strategic development of PCCW, Hong Kong’s leading Telecommunications Company. One of its important aspects, its human resource are given emphasis and importance, being responsible for the success of the company in terms of providing effective products and services. A strategic analysis through identification of SWOT (strengths, weaknesses, opportunities, threats) is provided. In relation to this, identification of strategic options is also done, along with its evaluation in terms of its implementation. With its implementation, the factors that must be taken note of, such as problems, success factors, advantages, and performance indicators are determined.   Brief for the Case Object   PCCW Limited is the largest telecommunication company in Hong Kong and considered one of Asia’ leading competitors in terms of Information and Communication Technology or ICT. It contributes in enhancing Hong Kong ‘s image as a center of technology and business superiority, with its outstanding innovation, particularly with its IP-based business services, New Generation Fixed Line services, broadband pay-TV, Internet access, media content, large-scale IT solutions, mobility, and wireless innovations (Company Profile PCCW 2008). PCCW defeats its powerful rival, Singapore Telecomm, with its purchase of Hong Kong Telecomm Corporation, and thus, signed an agreement with British Cable and Wireless Limited on the acquisition of Hong Kong Telecomm. After its merger, the market value of the new and bigger corporation would exceed US$70 billion (Current Situation and Characteristics of the Asian Telecomm Operating Industry Development 2008). Being formerly known as Pacific Century CyberWorks, PCCW is now the leader in telecommunications services in Hong Kong and the city’s dominant carrier, operating 2.5 million local-exchange lines and about 1 million broadband access lines through subsidiary Cable & Wireless HKT (PCCW Limited Overview 2008), leading the company to efficiently provide its services to the citizens of Hong Kong.   The corporate business objectives of PCCW include maintaining its competitive positioning in the industry through providing support to the community and the environment and by sustaining its high-quality products and services that cannot be matched by its competitors. It supports services and products that would help make Hong Kong an IT hub, develop computer literacy and familiarity with the Internet of the community through education, and uphold environmental best practices (Community and Environment 2008) for the benefit of the whole community or society. Such objectives are being met by PCCW given the competitive environment it is in. It has been indicated that being one of Asia’s key telecommunications centers, Hong Kong’s environment is characterized with ‘great connectivity and services, and a high concentration of fiber optic cables connecting throughout the region and the rest of the world’ (James 2002). At present, ‘Hong Kong is probably the most competitive wireless environment in the world, with 71% of the wireless world that is served by GSM technologies in over 180 countries’ (James 2002). This leads to the discussion of the most crucial aspect of the organization, its human resources, being the key contributor to the success of the business organization. As such, the contribution of the organization’s human resource will be discussed, being essential in its strategic development and management.   Strategic Analysis - SWOT Analysis   One of the important strengths of PCCW is its clearly defined goals and objectives, which help drive the success of the organization in terms of how they provide efficient products and services to consumers. Not only does the organization focus on the competitive position of its organization, but also on the welfare of its human resources, the society, and the environment as a whole. PCCW also maintains the leading position in terms of its products and services, which include IP-based business services, New Generation Fixed Line services, broadband pay-TV, Internet access, media content, large-scale IT solutions, mobility, and wireless innovations (Company Profile PCCW 2008), enabling the company to maintain its leading position in the market. The company also has different business strategies for multiple level market entry, such as providing solutions for port management, security and CCTV systems, audio and visual solutions, and technical support and maintenance services to various sectors in the industry, including governments, public services, aviation, and broadcast engineering operations. It also re-entered the mobile market, collaborated with real estate and broadband companies, and improved its telephone directories. In terms of structure, the contribution of its large team of professionals, experiences and knowledge in the IT industry provide excellent ICT solutions that would help customers develop innovative and challenging business opportunities. However, the highly diverse and mobile workforce of the company serves as its primary weakness, as the lack of their synchronization may contribute to the increase of internal crises and problems in the company. Nevertheless, important opportunities for PCCW include the changing needs of their consumers, which can further drive their innovation in terms of services and technologies. This then further increases the demand of the company’s consumers for their services and products, which consequently drives the sales, competitive position, and success of the organization. The continuous growth of the organization can also drive its capacity expansion, which can help increase its workforce and its innovation strategies. In addition, a good opportunity for PCCW is also its affiliations, which may further provide the organization with new ideas and strategies that would propel its success and development in its industry. Aside from opportunities, threats also hinder the smooth operations of PCCW. Changing needs of consumers may serve as its vital threat, serving to make their prior products and services useless, particularly when new technologies are in line. Another vital threat are the external drivers of the organization, namely, politics, economics, society, and technology, as PCCW has no direct control over the many possible changes that may happen to them. Such uncontrollable changes must then drive the organization to adapt itself in order to function effectively in the industry. Threat also includes the internal conflicts and problems brought about by workforce conflict, communication conflict, and culture conflict in the organization.   Strategic Formulation The concept of strategic development is defined as the identification or determination of the short- and long-term strategies that will be employed by an organization in order to achieve each of its goals (Social Entrepreneurs Inc. 2007). It is one of the important elements of strategic planning, which involves organizing, directing, managing, and controlling all the necessary strategies and plans involved in obtaining the goals and objectives of a particular organization. Another term essential involved in the concept of strategic development is the term ‘development’, which is said to occur when a gain in experience is effectively combined wit the conceptual understanding that can illuminate it, given increased confidence both to act and to perceive how such action relates to its context (Wilson 2001, 7). It then happens through experience or by learning from mistakes and successes (Joy-Matthews et al. 2004, 9). In this sense, understanding the concept of strategic development also involves understanding other concepts, such as learning, development, and strategic planning, which enable an organization facilitate and sustain changes that lead to its success in its industry. Both resource-led and market-led development strategies are being observed, wherein resource-led development strategy involves facilitating change in the organization due to changes in its resources, while market-led development strategy involves determining the different aspects or elements present in the market such as product, customer, strategy, planning, and other marketing concepts.        As mentioned, resource-led strategic development involves facilitating change and development on the part of the organization’s resources, and for this particular organization, PCCW, resource-led strategic development is addressed through its human resources. In this regard, business models that can be effectively used for resource-led strategic development include both BCG Matrix and Core Competences. The BCG Matrix is the business portfolio or growth-share matrix, which is used in order to analyze the flow of funds or the proper allocation of resources in an organization. In addition, it is based on the product life cycle theory, which can be used to identify the priorities that must be provided in the product portfolio of a business unit. This is because in order to guarantee the long-term value creation of a business, the organization must have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that produce a lot of cash (The BCG Matrix Product Portfolio Method 2008). Thus, with PCCW, it can be perceived that it is considered a Star. This is because a Star produces large amounts of cash due to its strong relative market share, but also consumes large amounts of cash due to their high growth rate (The BCG Matrix Product Portfolio Method 2008). From this analysis, it can be understood that PCCW has a high market share in Hong Kong, and at the same time, produces more than enough sales and profit that it can consume. In this sense, the company’s industry performance is attractive, thus, generating the company’s competitive advantage over its competitors. Another business model that can be used for resource-led strategic development is Core Competences. It has been indicated that a core competence is the result of a specific unique set of skills or production techniques that deliver value to the consumers. Such core competences take a product or production orientation rather than a market orientation. It emphasizes that thresholds, which can be in the form of resources and competences must be achieved by an organization in order to remain competitive. In addition, in order to remain competitive, an organization must be able to sustain three important resources, namely, Material, Human, and Intangible, with adequate and appropriate maintenance of Intangible Resources making the state of the organization most difficult to achieve (Core Competences Marketing and Core Competences 2008). Such Intangible Resources include activities that use resources of the organization, such as reducing cost, identifying relevant markets, and adding value. Using this business model, it can be understood that PCCW has already achieved Core Competences that cannot be matched or achieved by other organizations in Hong Kong. Because the company has already achieved the sustenance of its Intangible Resources, its competitors would be having a hard time to achieve the same reputation and competitive positioning it has.   On the other hand, understanding market-led strategic development in terms of its application in PCCW can be achieved based on two business models, namely, Ansoff’s product-market matrix and Generic Strategy. It has been indicated that Ansoff’s product/market growth matrix suggests that an organization attempts to grow depending on whether it markets new or existing products in new or existing markets. It suggests four growth strategies, namely, Market Penetration, in which the organization focuses on selling existing products into existing markets; Market Development, wherein the organization seeks to sell its existing products into new markets; Product Development, wherein organizations aim to introduce new products into existing markets; and Diversification, wherein an organization markets or sells new products to new markets (Ansoff’s Product/Market Matrix 2008). In analysis, it can be understood that two possible growth strategies are able to be applied by PCCW, namely, Market Development and Product Development. This is because the company focuses only on providing both old and new products and services to solely the market of Hong Kong. The other business model that can be used for market-led strategic development is Generic Strategy. According to Michael Porter’s Generic Strategy, the strength of an organization falls into one of two headings, namely, Cost Advantage and Differentiation, and applying such strengths three generic strategies are obtained, Cost Leadership, Differentiation, and Focus. Such are termed generic strategies because they are not firm or industry dependent. The Cost Leadership strategy emphasizes efficiency, requiring considerable market share advantage or preferential access to raw materials, components, labor, and many others, and involves low-cost strategies that could assist the company gain significant market share (Porter’s Generic Strategies 2007). Differentiation Strategy involves the production of a new product, which offers excellent value for the customers’ benefit, and to be able to do so, extensive research, communication and innovation must be done (Generic Strategies – Michael Porter (1980) 2008). Lastly, Focus Strategy emphasizes on specific or particular segments from a larger market (Power and Power 2007). Based on the three strategies, all three strategies can be utilized by PCCW. This is because all three strategies would help PCCW in sustaining and maintaining its competitive position in the market. This is because the wide range of products and services that the company offers its consumers enables PCCW to utilize and maximize the use of the different strategies in order to effectively reach its target consumers.                Strategic Option In terms of resource-led strategic development, both BCG matrix and Core Competences are suggested. Benefits of using the BCG matrix include enabling PCCW to take note of the increase or decrease of its market share and growth. The use of the BCG matrix would also enable PCCW base the amount of cash it was able to use and the amount of cash it was able to generate. In terms of using the Core Competences business model, its benefits include allowing PCCW to take note of its competences, including the different activities that are essential in sustaining the competitive position of the organization. It also enables the company to identify the needed and still lacking competences in order for it to stay on top of the market and among its competitors.   In terms of market-led strategic development, both Ansoff’s product/market matrix and Porter’s Generic Strategies are suggested. The benefits of using Ansoff’s matrix include allowing PCCW to determine the direction of the organization in terms of its product or service development. It also allows PCCW to take note of the markets available for its expansion. Lastly, it helps PCCW determine the needed strategy in order to sustain its competitive positioning in the market. Similarly, using Porter’s Generic Strategies also allows PCCW to determine the right and appropriate strategies to be used by the organization in order to sustain its competitive position in the market.   Using such business models includes determining the different resources needed by PCCW in order to utilize them. The use of the BCG matrix requires the market share data of the company, particularly the present statistics data and the data that indicate the growth of shares of the company. It also requires PCCW’s sales inventory and profit data. Using the Core Competences business model requires the different resources being utilized by PCCW. It requires the current performance of the company based on the resources. It also requires the increase or the decrease of the resources that affect the overall performance of the company. Using the Ansoff matrix requires the evaluation of the current market targeted by PCCW, including the evaluation of the current products and services it offers. The responses of the customers of PCCW are also crucial, including the evaluation of the strategies currently used by the company. Using Porter’s Generic Strategies requires the evaluation of the current strategies being used by PCCW. It also requires the evaluation of the current performance and skills of its human resources, and the current market, products, and services it offers to its target market.   Using such business models have overall positive outcomes for PCCW. Using the BCG matrix would help the company evaluate the input and output of cash flow in PCCW. It would also help the company evaluate its market share. It would help PCCW figure out the appropriate strategies that it can use in order to sustain its position in the market. It would also help identify problems in the company. Using the Core Competence business model would help PCCW identify the problems of the company easily based on the performance of its resources. The business model would also help PCCW figure out the proper solutions to problems. It would also help figure out the impacts of the increase or decrease of resourced it utilizes. Using the Ansoff matrix would yield positive outcomes, such as identifying the need for new products or markets, identifying the need for sustaining old products and markets, and identifying the strategies to be used for maintaining PCCW’s competitive positioning. Lastly, using Porter’s Generic Strategies would help the company identify the skills needed by its resources, help identify the strategies to be used to improve its overall performance, and help identify problems to be encountered in the future.   Evaluation of Strategic Option   Advantages of using both resource-led and market-led strategic development business models involve addressing the many issues and aspects of human resources, such as organizational culture, attitudes, activities, motivation, leadership, and productivity. It also involves the improvement of the quality of products and services of PCCW by eliminating defects. Customer satisfaction and loyalty is also given emphasis through the improvement of the quality of products and services provided by the company. Lastly, its use also emphasizes on different employee interventions that improve overall company performance.   In terms of suitability, such business models are deemed highly suitable because it addresses organizational culture in an organization, and this is particularly needed in a highly-diverse organization, such as PCCW. In terms of feasibility, using this strategic option is highly feasible as PCCW has the necessary background and knowledge regarding their use. Given its rich organizational structure, it is perceived that the employees in the organization have the necessary expertise and experiences needed to evaluate the usefulness and relevance of the models in PCCW. In terms of acceptability, it is perceived that the use of the models is highly acceptable because the welfare of the whole organization and its consumers are given importance.   In addition, advantages also include the focus on the supply and products of PCCW, enhancement of good communication between suppliers and the organization, and addressing the needs of the consumers.   PCCW primarily provides products and services to its consumers, thus, needing the support of its suppliers. The use of such business models is also feasible because given its organizational structure, the expertise and experiences of its employees would be necessary to evaluate its need. In addition, because PCCW is an established IT services company in the market and industry, it would not be difficult for the company to communicate with its suppliers effectively. Lastly, its use is also highly acceptable because this strategic option deals with providing enough supplies and products for the welfare of its consumers and the company as well.   Strategic Implementation   The implementation of all four business models is being adapted as strategic options for PCCW. However, moving one lower level means that more specific strategies are to be implemented. Choosing only one strategic option from the business models, it can be suggested that the Core Competences business model is the most appropriate. This is because based on the overall performance of PCCW, it can be perceived that is able to sustain its threshold, thus, no other company in Hong Kong would be able to match its performance in terms of providing the products and services that it offers. In this regard, it can be suggested that the company was able to utilize all its resources effectively, thus, making the Core Competence business model the appropriate strategic option to be implemented.     However, in terms of its implementation, continued individual employee training and development programs must be assigned. Such programs should be used to ensure and to maintain an appropriate balance between the needs of the organization and the needs of the employees, to maintain and sustain the knowledge and skills that the organization demands. PCCW can also use and implement an Information System or any Internet-based program of communication for more effective and up-to-date transaction and negotiations.   Problems in the implementation of the strategies involve the resistance of the employees or shareholders, miscommunication, lack of appropriate resources or funds, and the delay of the needed IS program or training materials.   Success factors include the attentiveness of the employees and shareholders, the improved quality of the products and services offered by PCCW, more consumers and sales, improved communication, smoother operations, and compliance to policies and regulations.   Performance indicators include the number of consumers retained and added, including their feedbacks, employee turnover, and the balance between the sales made by PCCW with its debt.   Conclusion This assignment discussed the strategic development of PCCW, Hong Kong’s leading Telecommunications Company, provided its objectives and its competitive environment in relation to its performance in the industry. To emphasize the importance of its human resource a strategic analysis was done through examination of SWOT (strengths, weaknesses, opportunities, threats). Identification of strategic options is also done, along with its evaluation in terms of its implementation. With its implementation, the factors that must be taken note of, such as problems, success factors, advantages, and performance indicators are determined.   References Ansoff’s Product/Market Matrix. 2008. http://tutor2u.net/business/strategy/ansoff_matrix.htm. (accessed May 20, 2008). Community and Environment. 2008. http://www.pccw.com/eng/AboutUs/CommunityandEnvironment.html (accessed May 9, 2008). Company Profile PCCW. 2008. http://www.pccw.com/eng/AboutUs/CompanyProfile.html (accessed May 9, 2008). Core Competences Marketing and Core Competences. 2008. http://www.marketingteacher.com/Lessons/lesson_core_competences.htm. (accessed May 20, 2008). 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Strategic Analysis of PCCW Hong Kong

Strategic Management Coursework Assignment Strategic Analysis of PCCW Hong Kong (Name of Student)...