Change Management Research: Impact of Negative Brand Image on Malaysian Airlines

Running head: CHANGE MANAGEMENT RESEARCH
Change Management Research
Name of the Student
Name of the University
Author Note

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Executive Summary:
The purpose of this report is to specify the impact of the detrimental effects of negative brand
image of the organizations. The chosen organization for the paper is the Malaysian Airlines
which went through considerable number of non-profitable periods and experienced
significant amount of financial crisis. The paper evaluates the success of the change initiative
taken by the organization in order to return to profitability. At the initial parts, the paper is
able to specify the external and internal factors that triggered the change, the challenges faced
by the organization in managing the change and also includes the recommendation to
overcome those challenges. In the later part, the paper is able to define a stakeholder for the
organization, impact of the change on them and expectation of the mentioned stakeholder
from the organization during the change. Along with that, the paper also uses the
Kaleidoscope model to evaluate the scope of the change along with the identification of the
resistances and strategies for the change. At the end of the paper, the method of success
measurement is described and learning from the case is portrayed. Apart from that three
recommendations are also advised for the smooth conduction of the business operation of the
organization.

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Table of Contents
Introduction:...............................................................................................................................4
Overview:...................................................................................................................................5
The Crisis that affected the Malaysian Airlines:........................................................................5
Open System model:..................................................................................................................6
Inputs:.....................................................................................................................................6
Transition:..............................................................................................................................6
Output:....................................................................................................................................7
Force Field Analysis:.................................................................................................................7
Driving Forces for the Change:..............................................................................................7
Restraining Forces:.................................................................................................................7
SWOT Analysis:........................................................................................................................8
Strengths:................................................................................................................................8
Weakness:..............................................................................................................................8
Opportunity:...........................................................................................................................8
Threats:...................................................................................................................................8
Strategic planning for the management of the change:..............................................................8
Challenges:.................................................................................................................................9
Recommendation:......................................................................................................................9
Stakeholder Selection:..............................................................................................................10
Kaleidoscope Model:...............................................................................................................10
Time:....................................................................................................................................11

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Scope:...................................................................................................................................11
Preservation:.........................................................................................................................12
Diversity:..............................................................................................................................12
Capability:............................................................................................................................12
Capacity:..............................................................................................................................12
Readiness for the Change:....................................................................................................13
Power:..................................................................................................................................13
Sources of Resistance:..............................................................................................................14
Strategies used by MAS:..........................................................................................................14
Execution of the strategies Used:.............................................................................................15
Unfreeze:..............................................................................................................................15
Change:................................................................................................................................15
Refreeze:..............................................................................................................................16
Measure of Success:.................................................................................................................16
Conclusion:..............................................................................................................................17
Lessons from the crisis:........................................................................................................17
Recommendation:................................................................................................................17
References:...............................................................................................................................18

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Introduction:
The modern day organizations are observed to be subjected to significant amount of
competition with the other market competitors and the organization usually tries their level
best to manage their business operations in such a way that it provides them the much needed
space in the intensely competitive business market. The organizations formulate the relevant
strategies for managing their business operation in an effective manner which will be helpful
for them in achieving their financial goals. Along with the positives, the formulation of the
strategy also incorporates bad results for some of the organizations as well, where the
business strategy formulated by the organization did not align effectively with the resources
of the organization. Hence the strategy making is significant part for any organization. As
defective strategy is observed to be significantly affecting the financial structure of the
organizations, the change becomes much needed for the organization (Carnall, 2018). The
business organizations are observed to shift their focus with the introduction of the change
initiative to overcome the severe impact of the defective strategies of the organization. The
change initiative is a process by which the organizations try to settle their issues with
appropriate and efficient modification in the strategy of their business operations (Cameron &
Green, 2015). The paper is focused in specifying one such case where the chosen
organization, Malaysian Airlines, restructured their strategy of business conduction in order
to overcome the financial struggles and the aircraft losses that it faced in the year 2014. The
air craft crashes were significant for the organization as the brand of the organization was
getting significantly affected with these incidents. Along with the brand value, the
organization was subjected to a notable financial crisis as an effect of the disappearances of
its flights. The main triggering reason behind the change initiative was the need of rebranding
the organization so that it could be able to overcome the financial crisis (Hayes, 2018).

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Part 1:
Overview:
The Malaysian Airlines is a notable aviation group of Malaysia which was founded in
the year 1947 in the form of Malayan Airways. The organization faced several changes
throughout the 71 year of its life span where it got converted as Malaysian Airline System
and then in the year 2015 it got converted as Malaysian Airlines Berhead
(malaysiaairlines.com, 2018). The organization having Khazansah Nasional Berhead and the
Malaysia Aviation Group as the parent organization and was observed to be a part of the
Oneworld Airline Alliance (oneworld.com, 2018). The organization was having its
headquartering Kuala Lumpur.
The organization was conducting in a profitable manner at the start but in the year
1997, the organization was staring to experience significant losses. The organization suffered
repeated periods of unprofitability where the organization suffered significantly huge
amounts as losses. In the year 1997 the organization suffered a loss of RM 260 million. In the
financial year 2000-2001, the organization again faced a loss of RM 417 million which in the
following financial year increased to RM 836 million (malaysiaairlines.com, 2018). Apart
from that the organization was observed to report a loss of RM 1.3 billion.
The Crisis that affected the Malaysian Airlines:
In the year 2011, the organization again faced a series of the non-profitable periods,
where the organization was observed to report a loss of RM 2.52 billion and this was the
highest sum as loss in the history of the organization (chartnexus.com, 2018). The
organization was able to specify the reasons as the rise in the fuel cost and the
mismanagement of the organization. The organization was significantly trying to reduce the