Research Project in SGS Lanka Ltd

Managing and Leading
Strategic Change

Table of Contents
1.0 ABSTRACT...............................................................................................................................1
1.1 INTRODUCTION ....................................................................................................................1
1.2 EXECUTIVE SUMMARY.......................................................................................................1
1.3 PRACTICAL RESEARCH ......................................................................................................1
1.4 PRACTICAL RESEARCH FINDINGS....................................................................................1
1.5 FUTURE APPROACH..............................................................................................................1
2.0 MODELS OF STRATEGIC CHANGE....................................................................................1
2.1 RELEVANCE OF MODEL TO CURRENT SITUATION WITHIN ORGANISATION......2
McKinsey 7-S framework...........................................................................................................2
Lewin's change management model............................................................................................4
ADKAR model...........................................................................................................................5
Bridges' transition model.............................................................................................................6
3.0 RECOMMENDATIONS...........................................................................................................7
3.1 CONCLUSION..........................................................................................................................8
BIBLIOGRAPHY............................................................................................................................9
APPENDIX A................................................................................................................................10
APPENDIX B................................................................................................................................11
APPENDIX C................................................................................................................................16
APPENDIX D................................................................................................................................16
pg. 2

1.0 ABSTRACT
Changes are one of the important component which helps to maintain same brand image
in industry. In this project SGS Lanka Ltd deals in export import services. They are thinking to
change their working style so this helps to improve services and improve customer satisfaction.
These days change is key of success of organisation. Managers of organisations plays vital role
in accepting and implementing changes. There are different techniques which helps to deals with
changes and actions has to be according to market trends. In this report techniques is used in
order to deal with internal as well as external forces. This report tells about relevance of change.
Managers of SGS Lanka Ltd changed their working technology and provide discounts to
customers in order to increase sales.
pg. 1

1.1 INTRODUCTION
Managing and leading strategic change includes all process and activities which are
involved in making changes in the company (Aronoff and Ward, 2016). Through this firm can
transform it and can make modification in their process and activities. Hence, organization can
earn more revenues and can maintain unique and distinct position in the market. It also helps the
firm to expand their operations and activities in minimum time. Assignment describes about the
SGS Lanka Ltd. is a company which provide services related to exporters, importers,
manufacturers, traders, agents, retailers, government and institutions. It was established in 1995
in U.K. Report explains about the critically analyse and evaluate nature of relationships between
organization environment and forces of change and monitor the key issues which arises from
management and leadership of change. It also describes the appraisal of management and
leadership responses in relation to forces and emerging organization dynamics. It will also
discuses about structure and communicate ideas and arguments.
pg. 2

1.2 EXECUTIVE SUMMARY
This report is based on changes taking place in commercial operations in orde to get
positive results. In order to implement modifications in effective way, managers has to adopt
changes frequently and take actions in order to coop- up with it. In this report there is discussion
about SGS Lanka Ltd which deals in providing import, export services to institutes, banking
organisations, etc. They are thinking to up grade their working style and pricing strategies so
they can compete in industry. In this report there is discussion about SWOT, PESTLE and
theories of change management. SGS Lanka Ltd are altering their technology and update their
pricing strategies in order to give discounts to clients.
pg. 3

1.3 PRACTICAL RESEARCH
Research is one of the best way to analyse whether change amangement is effective and
required for organisation or not. In research managers of SGS Lanka Ltd can implement change
in effective and efficient way. SGS Lanka Ltd has main goals to make good imager in industry,
this can be possible with the help of customer satisfaction and improving quality of services. As
there is competition in export business, so managers of SGS Lanka Ltd has to analyse
competitor's policies and accordingly changes has to be made. There is requirement of some
theories related to change management such as McKinsey 7-S framework 2, Lewin's change
management model, etc. These help to make strategies in order to implement changes
effectively.
There are possibilities that due to change in working style, there is negative impact on
employees, so research is conducted to know what is perception of employees regarding it.
Consumers are also one of the important aspects foer growth and development of association. It
is essential to evaluate services before and after change. Managers are thinking to upgrade their
technology and make pricing policies flexible, hence there is requirement of knowing mindset of
consumers also.
1.4 PRACTICAL RESEARCH FINDINGS
Research is conducted to know view of consumers as well as employees. Research
conducted by SGS Lanka Ltd make questionnaire which helps association to grow and expand
business (Refer Appendix C). Questionnaire is filed by employees and consumers in order to
know positive or negative impact of change.
 As per research it s clear that out of total respondents 70% are ready to accept change.
They feel that change is good for development of association. This helps to provide new
and upgraded techniques which helps in growth and development of SGS Lanka Ltd.
There is competition in market and with the help of change it is easy for SGS Lanka Ltd
to be compatible. As there is difference in demand of consumers so with the help of
alterations in business operations it is easy to satisfy customer demand. These
respondents feels that there is requirement of some motivation, guidance and leading
some change can be implemented effectively. There is requirement of regular analysis
which helps to get positive results from modification at work place.
pg. 4

 While remaining 30% respondents are of conserve nature and they do not want to accept
alterations in business operations of SGS Lanka Ltd. They have fear of being loss due to
improper implementation of change. Employees who are resistant to change feel that due
to change in working style they may get fired from job. They do not want to change their
operational style so they want to resist to set benchmarks.
1.5 FUTURE APPROACH
Change is not one night process. There is requirement of proper planning which helps to
make alteration in working. There are possibilities that due to internal or external factor so
managers are not able to apply strategic change in effective way.
 Internal factors such as employees which are one of the essential component for
implementation of change. It is responsibility of managers to motivate workers to accept
changes.
 With the help of SWOT analysis, it is clear that SGS Lanka Ltd has motivate employees,
so they must be targeted to work according current market trends. In order to overcome
threat of competition, analysis of market is essential.
 There is much competition in providing export import services, managers must change
their policies. They must contract on analysing customer demand and cost must be
according to buying power of client.
 In case of PESTLE managers of SGS Lanka Ltd must focus on altering business
operations according to governmental policies. This helps to resist in industry and less
legal issues in name of SGS Lanka Ltd.
 Managers has to alter working style inn accordance to conserve environment. There must
be use more environment friendly techniques which helps organisation to maintain good
image. As managers of SGS Lanka Ltd are thinking to upgrade their machines, then it is
essential that they must harm society.
 SGS Lanka Ltd can expand their business through alteration of working style and
modifications has to be done in services. As there is difference in demand of consumer
according to purpose, so cost and features of services can be improved.
 There is competition in the field of export and important services, change management
plays vital role in growth and d3eveloopment of organisation.
pg. 5

 Managers must make alterations in policies, so bargaing power of customers are low.
When SGS Lanka Ltd works under dynamic nature, there is increment in sales and
profits, so it helps in repayment of loans and debts.
 In export and import business, there is much government interference and legal norms. In
order to run business in systematic manner, managers of SGS Lanka Ltd has to analyse
market and accordingly actions has to be taken.
2.0 MODELS OF STRATEGIC CHANGE
Introduction of new technology by firm involves prominent changes working of
employees. Thus, it is huge possibility that workforce might show resistance in this regard.
Thus, to cope up with this issue SGS Lanka can adopt the Lewin's change management model
that will help firm to communicate the benefits of adopting and absorbing the technological
changes by employees. Also to systematically plan out the policies and strategies related to
discount and reduction in firm's price levels SGS Lanka can make use Mc Kinsey 7's model and
ADKAR model that will help company to properly organize and apply these managerial changes
(Nakauchi and Wiersema, 2015).
 In McKinsey 7-S framework has seven elements which helps to guide and motivate
workers to apply change at workplace. Through this model skills and competencies of
workers can be improved.
 Lewin's change management model works to implement change in working style on
permanent basis. According to this model, there is requirement of alterations which are
effective and significant for market trends. By applying this model managers has to
ensure that analyse must be done before applying change, at the time of change and at
last after application of modifications. This also helps to apply change permanently
which helps to work in effective way.
 ADKAR model stands for awareness, desire, knowledge, ability, reinforcement. As per
this model, manager SGS Lanka Ltd. Must analyse situation and then actions has to be
taken. There must be desire to work under changed environment so alterations are more
effective. Superiors are able to know what changes are effective and what are not.
 Bridges' transition model covers three main stages i.e. ending, loosing and letting go, the
neutral zone and the new beginning. In first stage, change is just introduced. In this stage
perception of employees is just. In second stage, there are some confusion arises. This
pg. 6

makes some to accept changes will some to reject changes. At last stage, change is
implemented in successful and effective manner.
2.1 RELEVANCE OF MODEL TO CURRENT SITUATION WITHIN
ORGANISATION
Introduction of any change or alteration in current working system by an organization is
evident to create lot of issues and is subject to face resistance from workforce. SGS Lanka to
maintain and enhance its core competencies is in phase to introduce certain technological and
managerial modifications (Lenz and Engledow, 2001). Thus to effectively handle these changes
firm been proactive is required to identify and implement best approaches for change
management. There are various theories that could be applied by firm to efficiently respond to
changes occurring in process, skill or leadership (McAdam and Lafferty, 2004). Hence, the
theories of change management used by SGS Lanka are described below:
McKinsey 7-S framework
This is more efficient method that emphasise over skills and process enhancement in
context of SGS Lanka. It is a model which is created by McKinsey in 1980's and it involve seven
steps. Stages used by Mc Kinsey's are described below:
pg. 7

(Source: Mc Kinsey's model, 2018)
Strategy: It is the first step and is the policy to accomplish the objectives. It consists of
step by step development of step by step procedure or future plan.
Structure: It is the stage which is related to the manner in which company is divided or
structure it follows. Hence it is important so that company can easily perform all activities (Otoo,
Agapitova and Behrens, 2015).
Systems: In this step, all activities and tasks are performed so that company can easily
accomplish the objectives. It is crucial so that activities run in systematic manner (Quinn, 2004).
Shared values: It refers to main values according to which organization perform all
activities and tasks. Hence all tasks and operation's run smoothly and successfully.
Style: It is the manner in which leadership and changes are adopted. Hence firm can
adopt changes and leadership so that firm can run in effective manner.
Staff: It means the employees who are performing the activities and tasks. They are
important so that organization can earn huge revenues and can increase the market share.
Skills: It means the competencies and skills which are possessed by the firm. Company
has high potential so that firm can complete all activities in proper time.
Lewin's change management model
pg. 8
Illustration 1: Mc Kinsey's model

To improve the process of changes and develop alternation in ease, SGS has adapted
Lewin's change models as this is more suitable approach. It is an effective model which can
easily bring changes in the company. It was created by Kurt Lewin in 1950's. It consists of 3
stages which are discussed below:
(Source: Kurt Lewin model of change, 2018)
Unfreeze: It is the first stage in this model. Company is prepared for the changes and
thinks that transformation is crucial for the firm. Organization tries to explain to staff members
that technical modifications are important so that staff members do not resist the changes.
Manager also discusses the benefits of technological advancement so that workers easily adopt
these changes.
Change: In this step, manager acts as a leader. They communicate with all staff members
and motivate them so that workers do not resist the changes. Employees also take time to adopt
changes and hence manager has to be patient with all workers so that all activities and tasks can
run properly. Also firm organize proper training and development program to make its workforce
efficient to handle the latest technology. For example SGS Lanka can organize many training
programmes so that it can provide training to all employees. Organization explains to staff
pg. 9
Illustration 2: Kurt Lewin model of change

members that they are promoted and there is increase in salary of all employees if they adopt the
changes. This motivates workers and staff members do not resist the changes.
Refreeze: In this step, management helps the staff members to make sure that changes are
applied in form and executed after objectives had been accomplished. Staff members are
comfortable and confident in adopting the changes. This is important so that staff members can
easily adopt the changes and firm can perform all activities and tasks. Hence SGS Lanka can
earn huge revenues and can enhance market share.
ADKAR model
It is an objective oriented model in which company emphasis on activities and tasks
which are important so that firm can accomplish the objectives. All staff members have to give
best results so that changes can be implemented in enterprise. It is determined by the managers to
determine the gap or hole in process of change management. Effective and efficient training is to
be given so that it can increase the knowledge and skills. It stands for:
Awareness: This step means the requirements and need for the change. Hence it is
important for company to determine the needs and then creates policies to bring medication in
method and process of firm.
Desire: In this step all staff members have to work together and then tries to create
changes in company. If all workers perform tasks then it directly bring modification in methods
and techniques of company.
Knowledge: Company creates methods and process so that firm can bringing the
changes. These methods are crucial so that modification can transform the company and hence
enterprise can earn huge revenues.
Ability: It is the stage where the changes are done on a regular basis. It is crucial so that
company can slowly transform itself and can become the market leader. This helps the
organization to earn more profits (MRenz, 2016).
Reinforcement: In this stage, manager implements the changes on continuous basis and
firm can change the plans and policies. This helps the company to motivate employees and hence
workers give superior results.
Bridges' transition model
It was created by William Bridges who is a consultant. It focus on the transition or not the
changes (Schilling, and et. al., 2012). Transition is a situation which observes the reaction and
pg. 10

steps of employees when they are going through the changes. Changes can be instant or can take
time. Three stages used by SGS Lanka of this model are described below:
Stage 1: Ending, loosing and letting go: This is the first step when staff members are first
introduced towards the changes. Workers can fear, angry, denial, sadness and frustrated from the
changes. Hence, manager has to explain about the benefits of modifications so that employees do
not resist them.
Some staff members accept that some things are ended before workers can start the new
idea. If manager don't acknowledge the emotions of all employees, then employers can encounter
resistance in the change process.
Guiding workers through one stage: It is crucial to accept worker's resistance and to
understand their feelings. In this stage, manager allows the employees to accept the change and
let it go. This also allows staff members to interact with any other worker. It is important that
employer can listen emphatically and communicate effectively so that they can solve the issues
and problems.
It focus on applying the skills and knowledge of employees so that staff members can
easily execute the change. Workers often fear from change and manager has to educate them
about the benefits of adopting changes. If employees perform better then it improves their
performance.
Stage 2: The Neutral zone:
In this stage staff members are affected through change as workers are confused,
impatient etc. Depending on the methods through which staff members manage the change,
workers also experience the higher workload as they were used to new methods and systems
(Stensaker, 2015). Staff members also experience low morale and productivity, anxiety about
role, status and identity etc.
This stage consists of innovation, creativity and hence manager motivates the employees
to perform better.
This stage help the organization in guiding and supporting all workers in effective
manner (Quinn, 2004). Motivate staff members so that workers do not loose their zeal and
enthusiasm. This results in improving the performance of employees. Managers also receive
feedback from employees so that company can change their methods, procedure and other
techniques (Renz, 2016). This is crucial so that organization can accomplish their goals. This
pg. 11

also helps in increasing the motivation and enthusiasm, level of all workers and this results in
increasing the productivity. This directly assists the organization in retaining the existing staff
members and this results in earning of huge revenues.
Stage 3: The new beginning:
Last stage is the new beginning in which employees start accepting the changes. Hence
employees work with full energy and dedication. Workers are committed to company and they
are ready to adopt to changes.
In this stage company can use different techniques such as management by objectives in
which personal goals are related to organizational objectives. Hence employees perform
activities so that they can accomplish the targets. Company also give rewards to employees so
that staff members get motivated and they give superior results. This results in improving the
performance of enterprise.
Hence, SGS Lanka in regard of modifying the change can adopt these models and
practices in regard of managing change smoothly and more relevantly. This is essential to
optimise more authentic approach for proper improvement and development while addressing
change within company. Therefore, firm can use this to carry out necessary changes according to
the necessities .
3.0 RECOMMENDATIONS
There are different key elements and theories which can easily bring changes in the
company. This helps the company in making modifications in existing process, activities and
procedure (Tichy, 2005). Hence, organization can earn more revenues and can enhance the
market share. SGS Lanka has to change the technology and provide discount to all staff members
so that it can attract many people towards the company (Refer Appendix D). Organization had
used PESTEL analysis so that they can create effective strategies to adopt these factors
(Schilling, and et. al., 2012).
Firm has also performed the SWOT analysis so that they can monitor the strengths and
can remove the weakness. Enterprise can also evaluate various opportunities and can create plans
to remove the threats. Organization also create strategies to remove the weak points and convert
into strong points. Business had also used many approaches to change management such as
Lewin's change management model, McKinsey 7's model, ADKAR model and Bridges'
transition model etc. These all theories consists of different steps which assists the organization
pg. 12

in bringing changes in the company (Stensaker, 2015). Enterprise can also explain the benefits
of adopting changes to employees so that workers can perform in effective and efficient manner.
Thus, as a result, company can earn huge profits and can enhance the market share. It also help
SGS Lanka to expand the activities and operations in minimum time. This helps the organization
to enhance their reputation.
It is recommended that company can focus on Mc Kinsey's model among other models
which consist of seven steps. Through this, it can bring changes in company and employees can
perform better. Firm can upgrade their technology and can use latest technology and tools. This
helps the firm in increasing satisfaction level of employees. Company can also provide discounts
to all user's which directly improves the performance of staff members and company can
accomplish the objectives. Another suggestion to cope up with change is adopting suitable
leadership style within the organisation to direct the functions accordingly. Organization can
adopt democratic style of leadership in which staff members can give their suggestion regarding
any matter and workers can also take decisions related to firm. It is an effective style which
motivates all workers to perform better to accomplish business objectives in significant manner.
3.1 CONCLUSION
From the above report it has been concluded that understanding and leading strategic
change is crucial in every company. Firm has to make changes in their policies so that they can
perform their activities in unique manner. By conducting SWOT, company can identify and
evaluate strength and convert their weakness and PESTEL analysis is performed so that firm can
create strategies to adopt these factors. Through performing porter' five forces, an organisation
can perform competitive edge of organisation in more significant manner. There are numeorus
types of changes and models of change management that firm can employ such as Lewin's
change management model, Mc Kinsey's, ADKAR model and Bridge's transition model etc. It is
recommended that company can focus on Mc Kinsey's model among all the models.
pg. 13

BIBLIOGRAPHY
Books and Journals
Aronoff, C. and Ward, J., 2016. Preparing your family business for strategic change. Springer.
Glass, C. and Cook, A., 2016. Leading at the top: Understanding women's challenges above the
glass ceiling. The Leadership Quarterly. 27(1). pp.51-63.
Hall, G. E. and Hord, S. M., 2006. Implementing change: Patterns, principles, and potholes.
Helfat, C. E. and et. al., 2009. Dynamic capabilities: Understanding strategic change in
organizations. John Wiley & Sons.
Helfat, C. E. and Martin, J. A., 2015. Dynamic managerial capabilities: Review and assessment
of managerial impact on strategic change. Journal of Management. 41(5). pp.1281-
1312.
Lenz, R. T. and Engledow, J. L., 2001. Environmental analysis units and strategic decision‐
making: A field study of selected ‘leading‐edge’corporations. Strategic Management
Journal. 7(1). pp.69-89.
Marshall, S. ed., 2007.Strategic Leadership of Change in Higher Education: What's New?.
Routledge.
Mauriel, J. J., 1989. Strategic Leadership for Schools: Creating and Sustaining Productive
Change.
McAdam, R. and Lafferty, B., 2004. A multilevel case study critique of six sigma: statistical
control or strategic change?. International Journal of Operations & Production
Management. 24(5). pp.530-549.
Nakauchi, M. and Wiersema, M. F., 2015. Executive succession and strategic change in Japan.
Strategic Management Journal. 36(2). pp.298-306.
Otoo, S., Agapitova, N. and Behrens, J., 2015. A strategic and results-oriented approach to
learning for capacity development.
Quinn, J. B., 1989. Managing strategic change. Readings in strategic management. pp.19-42.
Renz, D. O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Schilling, A. and et. al., 2012. Understanding professionals' reactions to strategic change: the role
of threatened professional identities. The Service Industries Journal. 32(8). pp.1229-
1245.
Stensaker, B., 2015. Organizational identity as a concept for understanding university dynamics.
Higher Education. 69(1). pp.103-115.
Tichy, N. M., 1983.Managing strategic change: Technical, political, and cultural dynamics(Vol.
3). John Wiley & Sons.
Online
PESTLE Analysis for Your Service Business. 2018. [Online]. Available. through:
<https://academy.getjobber.com/resources/articles/pestle-analysis>
pg. 14

APPENDIX A
Company profile
SGS Lanka was established in 1995 in U.K. It is a service industry which provide many
services such as exporting, importing, traders agents, retailer etc. Company provide solution for
many industries. They are described below:
 Agriculture and food
 Chemical
 Construction
 Consumer, Goods and Retail
 Environment
 Industrial manufacturing
 Mining
 Oil and gas
 Public sector Trade
History: SGC transformed gain trading in Europe by offering innovative agricultural
inspection services (Glass and Cook, 2016). Company has increase their operations and it has
expanded their activities around the world. In 1981, SGC was listed on Swiss stock exchange
and it gives different solution to issues and problems related to various service. During mid 20's
they started diversifying their operations and started offering inspection, testing and verification
services in different sectors of industry such as chemicals. Oil & gas, minerals and industrial etc.
Vision: Their main vision is to become more competitive and most productive service companies
in world. Firm want to deliver distinct services to all people and can give strong
competition to other rivals.
Values: They follow certain values such as passion, integrity, entrepreneurial and innovative
spirit and they guide staff members in performing their activities.
pg. 15

APPENDIX B
SWOT ANALYSIS
Environment analysis is evaluation of internal and external factors which can impact the
company. For example there is inflation which is economic factor then firm has to deliver
services at low rate (Hall and Hord, 2006). This helps the firm to earn huge revenues. There are
different trends which can impact the service industry. Hence, SWOT analysis of SGS Lanka is
described below:
Strengths
 Good financial resources: The
company provide employment
opportunities to many people and hence
it can earn huge revenues. Firm recruits educated and competent
staff members so that firm can earn
huge revenues.
Weakness
 Company cannot adopt many changes
in environment which is also a
weakness of firm. Hence, firm has to
create effective policies to adopt
changes.
 Firm faces huge competition from many
service sector. For example Abbot
group, British pipelines agency etc.
Opportunities
 Company has opportunity to capture
new and advanced technologies so that
they can provide effective services to
all people. Enterprise has to follow the Govt. rules
as then only it can survive in market.
Threats
 Company is facing huge competition
from other rivals and hence it has to
create effective policies to beat
competitors.
PESTEL Analysis
PESTEL analysis consists of political, social, economic, environmental, legal and
technological factors which can affect the company (Helfat and et. al., 2009). For example there
are changes in technology and due to this reason firm has to adopt latest techniques. Hence
enterprise use online tools to promote various products band to deliver the services. This helps
pg. 16

the firm in capturing more users. It includes the external factors which can affect the company. It
is described below (PESTLE Analysis for Your Service Business, 2018):
Source: PESTEL analysis, 2018
Basis Factor Description O/T H/M/L
Political
International
relations
International relations of
political parties of UK
affects growth and
expansion of business.
H
Corruption There is corruption in
industry which affects
political policies of country.
SGS Lanka Ltd has to alter
their policies related to anti-
L
pg. 17
Illustration 3: PESTEL analysis

corruption act.
Economical Inflation rate There is a situation of
inflation in market. Hence,
company has to provide
services at low rate as then
only they can attract more
users and firm can earn huge
revenues.
M
Bank loan rate In order to upgrade
technologies of managers of
SGS Lanka Ltd has to select
sources of funds. In case of
increment in bank loan rate
then growth of association
gets affected.
L
Social Demands There are possibilities of
requirement of export or
import services for family,
professional or other
purpose. So this affects
requirement of consumers.
H
Lifestyle There is difference in
lifestyle of consumers, so
managers has to provide
services as per social class
of customer.
M
Technological Testing and
laboratory tools
Due to modification and
advancement in the
technologies, the
organisation has to alter
their techniques for testing
L
pg. 18

and laboratory tools. Cause
of this reason, firm has
decided to adopt latest tools
and techniques. This helps
the organization to earn
profits.
Internet SGS Lanka Ltd deals in
export import services, so
there is requirement of
internet in order to book
order, quick services to
client, etc. This also helps to
interact with internal as well
as external parties of
organisation.
H
Legal Consumer
protection act
SGS Lanka has to create
strategies to provide rights
to all users. For example:
customers can move to court
if they finds that there is
defective product and can
claim compensation also.
M
Fraud As per legal factor there
must not be fraud in export
import of services. It is
responsibility of manager to
deliver some illegal stuff.
H
Environmenta
l
Pollution SGS Lanka create strategies
and policies so that there is
no pollution and hence firm
can protect the environment.
H
pg. 19

Firm also create policies to
reduce the wastage and can
helps organization to
perform functions in
effective manner.
Climatic changes There are changes taking
place in environment, so
managers of SGS Lanka Ltd
has to take corrective
measures in order to deal
with such changes.
M
Porter's five forces model: It consist of five elements which can affect the SGS Lanka. It
is described below:
Source: Porter's five forces model, 2018
Basis
pg. 20
Illustration 4: Porter's five forces model

Competitive rivalry There are different competitors in market so the power of
competitive rivalry is high. Hence, firm has to create
effective policies to beat rivals. For example Intertek
Group Plc, Cotecna Inspection SA, Applus, alsglobal.com,
Bureau Veritas etc.
Bargaining power of suppliers Different suppliers supply raw materials and due to this
reason bargaining power of suppliers are high. Hence,
enterprise can select that suppliers who can give materials
at low rate. For example, there is a supplier named British
Gas is the largest business every supplier and firm
provides services to all people. This company charges
fixed prices from all firm's. If suppliers charge higher
prices from company, then firm can take decision to
change their supplier.
Bargaining power of customers There are various customers who avail the services. Thus
bargaining power of customers are high. If users finds that
huge prices are charged by company then customers
purchase products from another firm.
Threat of new entrants Many new rivals are entering in market and hence the
threat of new entrants is high. For example, there is a rival
firm which is charging low prices than SGS Lanka, then it
is a threat for firm as customers avail services from its
competitors.
Threat of substitute products There are various substitutes such as Intertek Group Plc,
Applus etc. which are there in market. Due to this reason
threat of substitute products are high as numerous
companies are establishing their business. Company
provides discount to many people. It is a threat for SGS
Lanka as it do not provide discount and there are more
pg. 21

chances of loosing users.
The PESTEL analysis and Porter's five force model conducted by SGS Lanka revealed
that firm needs to gear up in its technological aspects to be competitive. Also there is high threat
for a company from new competitors entering the industry and availability of various substitutes
in the same. This is requisite for company to maintain its competitiveness and to cope up with
technological advancement in industry.
pg. 22

APPENDIX C
Managers of SCG Lanka Ltd are accepting new technology, to improve performance of
overall organisation. Hence managers are thinking to conduct serve through questionnaire which
helps to know relevance of change management in growth and development of association.
Target audience for survey is employees as well as consumers. Sample size of respondents are
50.
Q1) Is change is essential for long run in industry? Yes
No
Q2) With the help of change management SGS Lanka Ltd can compete
with external factors?
Agree
Disagree
Q3) Do you agree that modification in technology is kind of
modification in working style?
Yes
No
No idea
Q4) Is it risky for SGS Lanka Ltd to implement change in operations? Yes
No
No idea
Q5) Do you satisfied with the current performance of organisation? I am
I am not
Q6) Being customer, do you want SGS Lanka Ltd to alter their pricing
strategies in order to attain competitive analysis?
Yes
No
Q7) Being employee, do you prefer to work under upgraded technology? Yes
No
Q8) Why is it necessary to implement change in operations? Maintain market
share
Quick services
to consumer
pg. 23

Less
Possibilities of
defects
Q9) Do you feel there is requirement of change in technology of SGS
Lanka Ltd?
Agree
Disagree
Q10) What do you recommend managers for implementing change in
operations at workplace?
pg. 24

APPENDIX D
From the above analysis SCG Lanka has identified that it is requisite for firm to make
use of advanced technology in its current business operations to enhance its competency and to
survive in this dynamic business environment. Also, company can opt for providing discounts
and to lower down the prices of its services so that company can retain its existing customers and
attract new potential ones. This will help firm to cope up with its probable market threats. There
are two key areas of change which make modification in process and methods. Managers and
leaders have to take decisions to bring transformation in company (Marshall, 2007). Hence two
key areas of change in SGS Lanka are described below: Technological Up gradation: To enhance its competency and to maintains its market
position it is requisite for firm to adopt latest technological advancement that are been
introduced in industry (Mauriel, 2002). For instance, with increased popularity of
digitalization, firm can opt of making use of various online sites, websites, social and
other apps for attracting potential customers and to communicate information related to
command's various offers, services and discounts in cost effective and quick manner. For
successfully adopting new technology and to gain benefit from that it is essential foe
SCG Lanka to train its employees beforehand to efficiently handle that technology.
 Providing discounts and reduction in existing price levels: Reduction in price charged
for services or to provide most exclusive discounts for inducing consumers to avail firms
services, SCG Lanka requires to properly plan out its whole strategies to reap maximum
benefit out of it. For this, it is requites for firm to conduct a detailed market research and
analyse all micro and macro environmental factors. This will help firm to gather
information and data related to competitors pricing strategies, policies, government
regulations, rebates, customers needs and requirement etc. that will assist firm to take
effective decisions related to discount and price reduction.
pg. 25