Change Management - Cathay Pacific Airways Limited

Running head: CHANGE MANAGEMENT
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Introduction
Owing to the dynamic nature of business environments across the world,
organizations have had to change the scope of their business in terms of structure, processes,
or leadership for the purpose of minimizing threats and utilizing the opportunities available to
them to their full potential. There are various drivers, which influence change processes in
business organizations. These drivers may include rapid advancements in the technological
field, changing economies of the countries, changes in the purchasing power of the
consumers, competition faced from rivals in the industry and the like (Hayes 2018). The
essay will further focus on the implementation of a change management process in Cathay
Pacific Airways Limited, based in Hong Kong. This change management process is hugely
dependent on the internal and external environment of the company, as well as an
identification of the forces that drive or resist the change process (Lines and Reddy
Vardireddy 2017). The importance of a change management process in the company lies in
its ability to improve the overall performance of the members of the organization as well as
the business processes and operations, thereby aiding the company to obtain higher
productivity and profitability. Another important aspect about this change management
process includes its impact on the organizational structure and leadership of the company.
The following sections will provide a detailed discussion on the abovementioned aspects
along with an outline on the manner in which any negative impact that may arise from the
change management process may be prevented or controlled.
Discussion
Overview of the Company
Cathay Pacific Airways Limited is an airlines company founded in the year 1946 and
based in Hong Kong. It conducts its operations in more than sixty countries across the world

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(Cathaypacific.com 2020). The primary services of the company include scheduled cargo and
passenger services to more than 190 destinations in the countries in which the company
operates. The mission of the company is to become one of the greatest service brands in the
world by treating each journey by the individual customers as their most important journey,
thereby aiding them to connect with meaningful places, people and experiences
(Cathaypacific.com 2020). The vision of the company is to become the best airline company
in the world by striving to excel in the quality of their operations and services to the
customers. Furthermore, the company also engages in environmentally sustainable business
practices, thereby performing their responsibilities towards not only the environment but also
the communities that they serve. The company additionally prioritizes the well being and
safety of the members of the organization as well as the customers, in order to derive
optimum customer satisfaction. The following sections will provide a detailed analysis of the
internal and external business environment of the company.
Analysis of Business Environment
PESTEL Analysis
A PESTEL analysis provides an evaluation of the various political, economic, social,
technological, environmental and legal factors that may be influencing the business activities
and function of an organization. In this regard, it can be mentioned that the political factors
influencing the business operations of Cathay Pacific Airways Limited include the political
stability of the countries in which the company operates as well as federal and state
legislations pertaining to the aviation industry. Furthermore, other political factors like
governmental policies on the security and safety of passengers, trade barriers among
countries and taxation policies also play an important role in determining the business
activities and operations of the company (Narandaran, Hamid and Habibullah 2016).

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The economic factors that influence the business operations and activities of the
company include foreign exchange rates, inflation rates and gross domestic product of the
different countries in which the company operates, regulations pertaining to wages and
employment as well as the potential for investments for the company in the different
countries (Morrell 2018). Furthermore, the disposable income and purchasing power of the
customers and fluctuations in the prices of fuel also determines the nature of business
operations for Cathay Pacific Airways Limited. The social factors influencing the operations
of the company include the tastes and preferences of the different customers based on their
demographics and the cultural and linguistic differences that may exist among them (Guercini
et al. 2014).
The technological factors influencing the business operations of the company include
the recent developments of technological infrastructure in the airline industry in terms of cost
and fuel efficiency (Sustainability.cathaypacific.com 2020). Furthermore, the strength of
network connectivity, technological infrastructure available at the various airports and the
maintenance and servicing of aircrafts are other technological factors that influence the
operations of the company. In this regard, it may be noted that these technological factors
would ultimately determine the investments made by the company in the field of research and
development (Belobaba, Odoni and Barnhart 2015). The environmental factors affecting the
operations of the company include regulations pertaining to fuel usage, emissions and
environmentally sustainable business activities (Srivastava and Hancsok 2014). The legal
factors determining the efficiency of the activities of the company include laws pertaining to
discrimination in order to protect the employees and the customers, health and safety laws for
the members of the organization as well as the customers and regulations pertaining to the
maintenance of quality standards.