Change Management in Global Shipping Industry: A Case Study of CMA CGM

Running head: CHANGE MANAGEMENT
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Name of the Student
Name of the University
Author note

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Task 2: Report
Executive summary:
The objective of the paper is to recognize the changes in the business environment which are
necessitating the global shipping companies to embrace changes in their methods of operations.
The multinational shipping corporations have to invest immense capital towards embracing the
changes. The report also shows that there are certain factors which are encouraging the leading
global shipping corporations like CMA CGM to undergo the changes. There are factors which on
the other hand impeding these changes. The changes which the report explores are technological
advancements which aim to reduce their fuel expenditures and decrease the environmental
pollution which the global shipping activities are responsible for causing. The marine intermodal
operations form the base the global economy and thus, the global shipping companies are
coming under extreme pressure to embrace changes like incorporating smart ships in their fleets.

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Table of Contents
Task 2: Report..................................................................................................................................1
Introduction:....................................................................................................................................3
Analysis:..........................................................................................................................................3
Force field analysis for CMA CGM:...............................................................................................3
Drivers of changes:......................................................................................................................4
Internal developments:.............................................................................................................4
External developments:...............................................................................................................8
Forces resisting changes:.............................................................................................................9
Financial challenges:.............................................................................................................10
Cyber warfare and data thefts:...............................................................................................11
Vision and mission for the CMA CGM and business objective:...................................................12
Identify the change agents and propose a suitable structure for the implement of the plan:.........13
Create a resource implementation plan:........................................................................................13
Key success indicators:..................................................................................................................15
Potential risks during implementation:..........................................................................................16
Conclusion:....................................................................................................................................20
Task 3: Reflective essay:...............................................................................................................21
References:....................................................................................................................................24

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Introduction:
The global marine logistics and container industry is undergoing a sea of changes which
likely accelerate the shipping industry. These changes ranging from using of block chain
technology and more advanced or smart ships are boosting the shipping industry. However, there
are changes which are posing real threats like sea trade growth in slowing down, international
market conditions becoming more unpredictable and need to adapt to the new customer demands
(Deloitte.com. 2019). While the positive drivers of changes are encouraging the container
companies embrace changes, the impeding factors are try to stop or at least lower the change
rate. These conditions have taken every container company under their influences and even the
leading multinational shipping companies are no exceptions (Parker and Tyedmers 2015). The
aim of the essay would be study the force field taking into account both the positive and negative
drivers of changes. The company which would render a strong base to the study would be the
world’s third largest shipping and container transportation company, CMA CGM S.A, .having its
base in France (Cma-cgm.com. 2019).
Analysis:
Force field analysis for CMA CGM:
The force field analysis of CMA CGM should point out that factors which are
encouraging the changes and factors which are impeding the changes which the company needs
to embrace to gain higher level of sustainability. Maritime and Port Authority of Singapore while
shedding light on the technological developments, one of the strongest drivers of sustainability in
the shipping industry divides the drivers into two categories. The first category of drivers are
internal developments while the second category of drivers are external developments
(Mpa.gov.sg. 2019). The report does not shed light on the resistance which the shipping

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corporations like CMA CGM towards attainment of sustainability. The United Nations
Conference on Trade and Development (UNCTAD) points out that two factors resisting
sustainability and advancements pointed out by Maritime and Port Authority of Singapore are
lack of trained crews and financial investment (Unctad.org. 201). The below force field analysis
of the global intermodal industry through the lenses of CMA CGM:
Figure 1. Table showing future trends in global marine shipping
(Source: Mpa.gov.sg. 2019)
Drivers of changes:
The following are the drivers of changes of CMA CGM towards sustainability:
Internal developments:
The first drivers of changes which CMA is undergoing are internal developments
comprising of shipbuilding, propulsion and fuel consumption and smart ships. Walrave and

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Raven (2016) mention that technological developments taking the internal operations of the
shipping companies are one of the biggest drivers of change. SHM Group, one of the leading
international shipping group mention use of consolidation is of the future drivers of changes in
the global marine industry. The shipping companies all-around of the globe are merging and
acquiring with shipping companies from diverse markets. This strategy of acquisition and merger
is allowing the shipping companies to pool their assets which in turn supports shipbuilding
(Shmgroup.com. 2019). For example, CMA in order to expand its asset base to support its
shipbuilding has signed letter of intent (LOI) with two ship building yards in China. This
consolidation would enable the company to build around nine 22000 TEU megaships.
The second drivers of changes in the marine intermodal industry are propulsion and fuel
consumption. Parker and Tyedmers (2015) echoes the opinion of Parker and Tyedmers (2015).
They mention that with the global marine intermodal industry slowing down and rising cost of
fuel, thus lowering revenue generation and increasing expenditure of the shipping companies
respectively. Deloitte in one of its 2017 reports reported that the global GDP has and the world
exports volume has followed the suit. However, the value of the exports has fallen which means
that the shipping companies need to take steps to curtail expenditures to minimize the losses they
would suffer due to falling exports value (Deloitte.com. 2019). The leading shipping companies
are using technology to manage this risks. CMA CGM in its official website mentions that it is
using technology like fast oil recovery system, shore power connection and 24*7 fleet navigation
centers to minimize fleet operational costs (Cma-cgm.com. 2019).