Bega Cheese Change Management

This report discusses the change management process in Bega Cheese Ltd, focusing on the role of stakeholders, culture, and strategy. It explores the challenges faced by the company during its transition from a cooperative to a public limited corporation and provides recommendations for effective implementation of change.

Bega Cheese change management1
BEGA CHEESE CHANGE MANAGEMENT
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Executive summary
As a result of global variation and technology improvement, many corporations have experienced the
need to change so as to cope with the dynamic business operation. Kotter’s change model highlights
characteristics that stand in the way of strong company transformation. When used correctly, the Kotter
model can assist business managers to overcome the modification concerns and therefore, facilitate the
organisation transformation. Companies that fight to remain confident and competitive must adopt a
change model. The manager also should learn to utilise the change models that can groove well into their
transformation actions. The paper has discussed comprehensively the role of stakeholders and culture
when implementing change. It has also deliberated on the importance of the organisation culture, value
proposition and internal and external strategic when executing the transformation routine. This report will
use different concepts to explain the change management in Bega Cheese Ltd and give the findings that
will guide company in implementing change.

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Table of contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Strategy and Change........................................................................................................................4
Culture.............................................................................................................................................7
Stakeholder Identification and Management...................................................................................9
Resistance to change......................................................................................................................10
Other Considerations.....................................................................................................................10
Findings.........................................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
In the current business scenario, adjusting with the swift change in the market is posing a huge problem to
many corporations. Change management entails implementing many approaches in the firm which assists
in adjusting with the identified concerns. Bega cheese is an Australian dairy products producer and one of
the prevalent contestants in the dairy sector. Due to the shift from cooperative firm to public limited, it
has encountered some organisational concerns, centred on why they are executing change managing in
the company (Begacheese.com.au 2017).
The report, therefore, discusses the changes in management being initiated in Bega Cheese Limited.
Various aspects of the executed change management plan will be discussed in great detail using different
theoretical models. The findings will be given which will assist in effective implementation of the
transformation management.
Strategy and Change
Historically, Bega Cheese Ltd has been a corporation with a sturdy sense of values, sincerity to
modification, and devotion to realising the finest outcomes. The company shares and harness broader
collective strengths and experts in food manufacturing. The group has vast operations abilities and
knowhow of innovative and lean food manufacturing actions. The company strategic track will remain to
create a trade towards the firm's vision to turn into the Great Australian food company. Therefore, the
corporate strategic change management will line up to core abilities in foodstuff technology, industrial
operations and market advancement of the central dairy and bigger foods range. The company’s idea is to
develop to be The Great Australian Food Company (Bega cheese 2017). This vision and the company’s
values are controlling the tactical selections which entail creating innovations and market development
for the future. The above vision can be explained over the company mission statement. For the company
to realise its objectives; however, it must modify gradually over time to acclimatise to the transforming
market and access to current market prospects. Bega cheese efficiently started a change course to perform

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the above, when they moved from a cooperative business to a limited one to withstand a competitive
benefit and realise the aggressive requirement of the marketplaces while upholding with their rivals.
For the aim of this report, the business paradigm transformation that the company has done, even though
necessary, presents the primary concerns. From the above, there are secondary problems relative to
human resource management, strategy, culture, and innovations. Importantly, what ought to be
pinpointed for the aim of this report, is the secondary concerns which are all interconnected to some
degree. The company, thus, must address the challenges adequately and comprehend the web
complexities of modification that will develop, reliant on which area they select to undertake. For
instance, the company cannot actively control and advance the strategy and culture of the enterprise
without communicating the HRM practices. Lengthily, policy and innovations ought to progress by
trying to pragmatically prevent any probable blockades facing the business in the HRM sector (Boje,
Burnes and Hassard 2011).
The above alignment is necessary as the strategic concerns can affect the transformation management in a
well-known manner. The engagement of the strategic planning by human resource management would be
essential in mitigating the risks linked with the modification management design. It is vital to mention
that the firm needs to reflect the projection level of the targeted user’s while bringing the variations on the
brand varieties. For that reason, it will be important in comprehending the systematic techniques to design
the organisational functionalities as per the transformation initiatives (Hayes 2014).
The Bega cheese organisation structure is designed most suitably. They comprise of a board of nine
directors. Independent director is also present to assist in upholding the transparency. The critical
department is subdivided into operations human resources, marketing, and productions. All the sections
have a responsible department under which the juniors are operating. The organisation systems of the
company have many experienced workers. To take care of the concern of the workforces, they have
established an employee response mechanism to collect the views from the workforces. According to the

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assertions received from the workers, important initiatives are being executed. This assists in upholding
the active operating environs in the organisations which subsequently assists in improving the employee’s
satisfaction levels (Jabri 2017).
Value brand proposition is essential when deciding if the change routine will be successful. The
organisation's principle stands on transparency, fairness, and honesty. Their core values encompass all the
stakeholders in the enterprise. The products being offered to the users are also centred on the above
principles. Additionally, the leadership roles in the company take a crucial part in upholding the
organisation culture.
The internal and external views of strategy are also outstanding as it determines the success or failure of
the Bega cheese change management. The principal competitive advantage of the company is their
heritage which is being quickly recognisable to many of the users and staff members. Additionally, the
market establishment and brand equity info that have been collected are being utilised knowingly in
driving the transactions. To take over the competition and to realise the varied user requirements, they
will establish their innovative products in different rates and dimensions which is more desirable for the
clients. Therefore, in the case of brand diversification, this strategy will come handy in penetrating in new
sectors with having a more diversified brand portfolio.
The value chain in the company is essential when assessing chain readiness. The company intends to alter
a commercial unit scheme that will well line up with the operations of corporate en route for every key
market, client, channel and brand collections. Therefore, the value chain ensures the company remains
fast to familiarise and take chances as it grows, with inspired decision-making and lucidity of purpose in
all division of the business. Therefore, the value chain optimises the return and delivery of the company’s
products across the diverse business division, to accomplish the more extensive business synergies as a
complete and stay price competitive in the food business sector.

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Culture
The capacity of the Bega Cheese to stay linked with its legacy and culture has been a keystone of the
firm’s victory as it has developed past the lavish green fields of the Bega Valley. The company will carry
on to raise a culture of shared behaviour and beliefs across the organisation’s, driving the financial
performance over the business unit design, with every section concentrated on different market portions,
quality metrics and user service.
As earlier mentioned, the primary concerns facing the company are designed round their transformation
from a cooperative to a public limited corporation. In light of this, the company then established to
institute the mergers and acquisitions with the key companies to attend to HRM roles and initiative
innovations. The aim behind the mergers and acquisitions with the firms such as KRAFT from an HRM
viewpoint was to offer and uphold the recruitment in the metropolitans while offering back to the society,
steady with the moral model of the business, in spite of the adoptions of reputable technology. Also, the
staffs grew through the mergers and acquisitions supported by the innovations routine, as workers were
skilled and advanced through the TAFE drilling lessons to supplement the inventive purposes of the
enterprise.
Here, the complicated connection and interdependency amongst the roles are apparent, as the HRM and
innovations go along with one another. But, in doing the above, the company failed to recognise the
culture clashes which would unavoidably occur when joining the principles of the other business,
especially after the transformations from a cooperative to a limited one.
Certainly, resistance to such process would happen, and alternatively, the business could have executed
the structure to prevent the cultural clatters among the merging firms. It could have been realised by
advancing overarching and complicated concepts which would communicate the HRM strategy and
culture, as the innovations are reliant on them. Lengthily, to create on this and upsurge cognizance, the
company would profit from an evaluation of the culture behind their unions to comprehend the prospects
for clashes or highlights the collaborations. It applies to the primary challenges as the selection to avert

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from a cooperative to a limited form calls for a move in the elements of the business, which can be
executed actively over this transformation management routine (Petrescu 2010).
The company would have gained from a general concept which takes into account HRM, strategy,
novelty and culture while starting their related commercial mergers and acquisitions. It is commended
that Bega Cheese employs the Galbraith's star model, as it builds corresponding and direct associations
between the HRM, innovations, and culture. The above concept should be regularly monitored as it
sketches that if there are discrepancies between the individuals, strategy, and structure, then reductions in
unity and productivity becomes likely. Also, it is evident here as Bega Cheese needs to control the
potential and expectations conflicts between the internal and external elements. It is commended that this
star concept is utilised as an all-embracing structure, then the next results provided ought to be executed
secondary to this framework.
Thus, in the implementation of the star framework, it is commended that the company uses the practical
and applicable linear model regarding innovations. But, before the adoption of this concept, the firm
needs to commence in research and development (R&D) within to assist productions and upsurge of
awareness. It would be similar to the organisation's objectives put in place, assisting to withstand
competitive gain and stay as the top quality cheese merchandise nationwide. Additionally, the reliability
of this framework is used through the Bega Cheese’s targets to utilise their possessions in a manner which
reflects the VRIN competences. Broadly, the company should be focusing on aligning these two
innovative frameworks with the resource-based view to increase and sustain their competitive advantage
over their established technologies and employees (Michie, Atkins and West 2014).
Stakeholder Identification and Management
Additionally, the pertinent stakeholders patent within the Bega cheese ltd has been the individuals helping
and directing the transformation routine. It started with the company's chairman in 2003, when it was
acknowledged that cooperatives have primary concerns, in that, even though it is the favoured kind of

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operations which has been the way of the trade, it generated issues when trying to realise the competitive
market intricacies. Moreover, the subsequent distinguishable stakeholder is the shareholders who
considered voting in preference of a company becoming a privately owned firm. Then, the workforces
are openly the stakeholders as they modify within the industry and endure this routine. Eventually, the
primary challenges revolve about the shift of the company which it accepted, and this is the predominant
concern throughout this case study.
Consequently, the enterprise can advance their HRM by joining it with the productivity, in accord with
the routine conclusions, and specific differentiation approach. It would better if they could use this
process, as it would complement their training and development for the employees. For the company to
focus on the interdependency, the cultural and planned framework requires to be used steadily with the
HRM concepts. And so, to make sure efficiency when utilising the HRM actions, the company should
ensure to join the iceberg model to build reliable core principles across the corporation. If the above can
be accomplished, then it will reduce the quantity of restricting efforts which can occur in modification
routine, as allied with the force-field investigation (Goetsch and Davis 2014).
Resistance to change
Change resistance can be defined as a tendency for something to resist transformation even when a
surprisingly large amount of force is used. The idea of resistance to change is accredited to Kurt Lewin.
His conceptualization of the phrase, however, is very diverse from the current’s application. Lewin
developed his framework “centred on the person” as a multifaceted energy field in which all traits could
be conceived of as a modification in some state of a field" (Sarayreh, Khudair and Barakat 2013).
According to Lewin, resistance to change could happen, but that resistance could be anywhere in the
system. According to Kotter, it is probable for the resistance to be sited within the individuals; however, it
is much more likely to be established elsewhere in the system (Argyris 2017).

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Resistance influences change readiness because transformation in an organisation; one has to make
everyone be on board to ease and facilitate the transition. Therefore, leaders should make sure the change
teams are fully engaged and benefits are fully explained and how it will be of interests to themselves and
an entire organisation (Miner 2015).
Therefore, the team leader or manager can use either intrinsic or extrinsic motivation strategies to make
change readiness easier. Intrinsic motivations factors involve things such as promotion, job satisfaction,
proper engagement with all staffs, and involvement in decision making. Extrinsic factors include rewards,
bonus and salary increment in case of improved productivity (Benn, Edwards and Williams 2014).
Other Considerations
Change reaction: transformation response is the capability to suitably analyse the issues, evaluate the
tasks, and control the opinions of the workforces. This internal focus safeguards the company to sustain
the daily operations while responding in a timely and appropriate way to self-established and market-
oriented modifications (Agboola and Salawu 2010).
Change awareness: change awareness is a firm’s capabilities to redefine it as necessary. Good
modification awareness actions include scanning the environments for opportunities, concentrating on
developing trends and strategising for the future.
Political and legal changes: legal and political aspects hugely describe the actions which a firm can
undertake and the techniques which can be followed by it to attain those actions. Any modification in
these legal and political aspects may influence the organisation functions.
Social changes: public variation deliberate in regards to individuals' needs, aspirations and their ways of
operating. Social alteration has taken place due to forces such as urbanisation, level of education, global
impacts and feeling of autonomy (Anderson and Anderson 2010).

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Findings
Through all the framework and commended results, there is one fundamental action in specific which can
safeguard upon the implementation. If the company can implement an active R&D approach, it will
permit the business to comprehend the purpose of the concepts and how to execute them to report the
probable skirmishes. Research and development will be the device to measure in what manner
performance drive the firm, to comprehend the basic values of other corporations for unions and to
highlights and neutralise the restricting exertions in transformation routine.
Even though research and development would be the most productive manner to reduce a lackluster
strategy for controlling the primary issue, there are a few ruins which ought to be taken into the equation.
The main drawbacks of executing the R&D, it can be comparatively costly. The routine is not wholly
cost-effective; however the gains flows as R&D surpass the perils of not elevating the routine. The
contemporary R&D routine over the Bega is a risk and failing to communicate the right concerns. If it can
be directed to concentrate on the projected HRM, strategy, novelty and cultural models, then it is
supposed that the R&D will be past the beneficial, as it will start helping the company in more than one
element.
Additionally, the R&D procedure takes long which can be more accustomed to offering a long-term
answer. Although this is the case, it can be noticed over the star model that such actions require, planning,
duration and precision to be efficient and provide the right cures. It would be necessary for the company,
as this framework would give a quick reaction to the primary test which was recognised for the aim of
this report. Next, the framework then presented under the star concept would arrange in a line and relate
with the company’s goals, while communicating the secondary concerns encountered by the Bega
Cheese.

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Conclusion
The company has executed approaches and routines as they try to neutralize and react to the inherent risks
of transformation. But, this requirement can be created on and better understanding through the R&D, to
use the applicable concepts. This will, therefore, provide a direction to react and avert further situations
happening in the coming days. It will permit the company to become a proactive firm when trying to
facilitate a transformation routine, specifically in relations to the HRM, innovation, strategy, and culture.

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References
Agboola, A.A. and Salawu, R.O. (2010). Managing deviant behavior and resistance to
change. International Journal of Business and Management, 6(1), p.235.
Anderson, D. and Anderson, L.A. (2010). Beyond change management: How to achieve
breakthrough results through conscious change leadership (Vol. 36). John Wiley & Sons, pp.
35-42.
Argyris, C. (2017). Integrating the Individual and the Organization. Routledge, pp.18-21
Bega cheese, (2017). Bega Cheese annual report 2017. [Online]. Retrieved on 10 April, 2019
from:
Begacheese.com.au, (2017). Begacheese corporation. [Online]. Retrieved on 10 April, 2019
from:
Benn, S., Edwards, M. and Williams, T. (2014). Organizational change for corporate
sustainability. Routledge, pp.51-61.
Boje, D.M., Burnes, B. and Hassard, J. eds. (2011). The Routledge companion to organizational
change. Routledge, pp. 12-16.
Goetsch, D.L. and Davis, S.B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson, pp.22-25.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan, pp.39-
43.
Jabri, M. (2017). Managing organizational change: Process, social construction and dialogue.
Palgrave, pp. 7-11.

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Michie, S., Atkins, L. and West, R. (2014). The behaviour change wheel: a guide to designing
interventions. Needed: physician leaders, 26, p.146.
Miner, J.B. (2015). Organizational behavior 1: Essential theories of motivation and leadership.
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Petrescu, R. (2010). Organizational Change Process-Steps to A Successful Change. Annals of the
University of Craiova-Economic Sciences Series, 3, pp. 29-31.
Sarayreh, B.H., Khudair, H. and Barakat, E.A. (2013). Comparative study: the Kurt Lewin of
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