Strategic Change Management Report: GAC Case Study Analysis

This report delves into the intricacies of strategic change management, using Gulf Agency Company (GAC) as a case study. It begins with an organizational overview and identifies the need for change within GAC, exploring the factors that drive this need, including economic, political, social, technological, environmental, and legal influences, analyzed through a PESTEL framework. The report critically evaluates the resource implications of not responding to these changes. It further examines change management models and their relevance to GAC. Finally, it develops a change management strategy that involves stakeholders and addresses resistance, providing recommendations to enhance GAC's operational functions and overall efficiency.

Strategic Change
Management

Table of Contents
EXECUTIVE SUMMERY ............................................................................................................1
INTRODUCTION...........................................................................................................................2
Organizational Overview.............................................................................................................2
Background of change.................................................................................................................2
Evaluate the requirement of change in the organization and explain the factors which drive the
need of strategy along with critical evaluation ...............................................................................3
Need of change in the organization:............................................................................................3
Assess the factor which drive the need for strategic changes......................................................4
Critically evaluate resource implication for not respond to the changes.....................................6
Evaluate two change management model along with its relevancy with the chosen organization 7
Develop change management strategy where stakeholders are involved and develop strategy to
overcome resistance.......................................................................................................................12
Change management strategy....................................................................................................12
Strategy to overcome resistance.................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

EXECUTIVE SUMMERY
This report contain various topics such as need of change and the factors which drive the
changes. Along with some strategy which help organization to identify the reason of changes in
the organization. In addition it includes the change management model and strategy for the
implementation which provide successful outcomes.
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INTRODUCTION
In the competitive environment organization has to face various challenges which
required regular changes in the operations and other business activities. For this, top
management has to develop strategy for the change in management. Under this process, manager
build strategy to change in structure which helps in achieving business goals, mission, vision &
objectives (Al-Haddad and Kotnour, 2015). For the better understanding of this concept, this
report choose Gulf Agency Company Ltd (GAC). It is privately owned company which is
specialised in delivering quality service of shipping, logistic and marine services.
This report include the various topics such as background of the company chosen
company, identify the need along with factors which drive the changes and critically evaluate
those resources which is required at the time of implementation. Analyse two change
management model in relation to the selected organization and then develop change management
strategy which involve stakeholders. Along with this, some recommendations which helps the
organization to improve their operational functions and their efficiency or effectiveness.
Organizational Overview
Gulf Agency Company (GAC) was established in 1956 when a Swedish person start a
business through signing agreement with two Kuwaiti businessmen. They already provide ship
agency services in the country. Currently GAC is the Kuwait's Shipping Licence no 1 company.
In 1970, GAC expand their business in the Eastern Mediterranean and Nigeria (Gulf Academy
Company, 2018). Along with this, further expansion in 1990 throughout Africa, Europe, central
Asia etc. According to GAC strategy they focus on building effective relation with proper for the
long term benefit. Organization focuses on business philosophy and value to the customers,
potential clients, suppliers and other business partners. Currently GAC have more then 3000
employees in the 30 offices across the 50 countries.
Background of change
According to current scenario of the market, organization need to identify the
requirement of change which is very important for the further development and it will increase
efficiency as well as effectiveness in order to achieve business goals & objectives.
In order to maintain competitive edge in the business environment along with long term
sustainability. Organization has to adopt changes in order to increase efficiency as well as
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effectiveness. In the initial days of changes, organisation has to face various difficulties at the
time of implementing changes and consequences for stakeholders. Change management model
provide the change in structure which helps in meeting with goals & objectives of stakeholders.
Evaluate the requirement of change in the organization and explain the
factors which drive the need of strategy along with critical evaluation
Need of change in the organization:
Changes in the organization is not easy because it will take lots of research, strategy to
implement and regular monitoring. It plays very important role because after changing
organizational structure or strategy business increase their production which further helps in
increasing profit margin which helps in achieving business goals & objectives. In context of
GAC, manager identity the need of change and then develop strategy after discussing with top
manager (Bednar, Boivie and Prince, 2013). After getting approved by management, manager
develop strategy for the change and then implement in effective manner.
There are various reasons which affect the business to adopt changes and then build
strategy for the further development. Some of the reasons discussed below:
 Crisis affect various organization along with whole industry such as airlines and travel. It
will generate financial crisis which affect the organization and force the business to adopt
changes.
 Performance gap also required some changes, for this manager have to develop strategy
for the organizational change.
 Due to change in technology, business has to adopt otherwise they are not able to
perform their task and compete their competitors.
 Change in the organization helps in identifying opportunity which provide market growth
and competitive advantage (Nielsen and Nielsen, 2013).
 Due to internal as well as external factors, business has to adopt changes and for this
manager have to develop strategy for the effective implementation.
 Change in the operational activities through merger or acquisition affect the employees in
negative way. So manage have to develop strategy in order to reduce its impact.
Organization have to adopt changes which is continuous process where change in the
structure will help the business to meet with their stakeholder needs and it will provide success.
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For example: If GAC company wanted to enhance their performance so they have to hire expert
such as manager. It is the person who develop strategy which is flexible according to the
situation, manage people, identify the components and external factors which affect the business
as well as profitability. Employees are the important factor who helps the organization to adopt
changes in effective manner which increase efficiency and maximise profit margin. Along with
this, researcher continuous perform their task to identity required changes and then provide
alternate solutions to implement.
Assess the factor which drive the need for strategic changes
There are various factors which affect the GAC organization in order to implement
changes after analysis its impact. With the helps of PESTEL analysis, manger identify the
potential opportunity and threats which help the manager to take strategic decision in order to
increase organization performance and productivity.
PESTEL analysis: It is a business framework which help the organization to analyse or
monitor the factor which affect business operations and further actives. This analysis includes
the various factors which drive the need of change in the organization. Such as political,
economic, social, technological, environmental and legal factors. In context of GAC Ltd,
manager analyse the factors for the organizational change which further affect productivity,
profitability and some of it discussed below:
Political factor: This factor helps in identifying that in what level of government
interfere in the organization and the economy. Basically this factor include government influence
on the business such as various government policies, political stability, tax policy, corruption,
trade restriction, foreign trade etc (Bock and et.al., 2012). In context of GAC Ltd, Saudi Arabia
is political stable country where they enjoy financial and monetary stability. But in context of
logistic services, it is very difficult to apply different tax policies of different countries. Variation
in the price of commodity due to political reason such as change in the price of fuel and oil rates.
These factors affect the productivity as well as profitability which affect the manger's decision
making process in order to achieve business goals & objectives.
Social factor: In this external factors, manager have to analyse the different social
culture, value of product in the customer's eyes, their attitude regarding product, population
trend. Such as income distribution, age discrimination, career or growth rate of population. In
GAC Ltd, manager have to identify if any social issue occur then how to resolve because it will
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become the factor which drive the need of strategy change. If client's requirements will change
then manager have to change their strategy in order to satisfy their customer requirement and it
will further helps in increasing productivity as well as profitability (Boyd and et.al., 2012).
Economic factor: It includes the economic performance which affect the production or
profitability of the organization. These factors includes the interest rate, inflation rate, disposable
income, unemployment rates etc. In context of GAC Ltd, manager have to identify rate of
commodity because it will fluctuate timely. Overall growth of the industry also affect the
organization so manager have to analyse these factors and then change their strategy to
implement new changes which required to increase efficiency as well as effectiveness.
According to one research, forecasting of inflation rate in 2022 is about 1.86%.
Technological factor: Under this factor, manager analyse the market through research
where they find that change in the technology will affect the organization in term of their
productivity or profitability. In addition, it include the innovation in the manufacturing process
which make them capable to capture market and achieve their business goals & objectives.
Manager of GAC Ltd, have to analyse market and its latest trends which affect the business in
terms of digitalization. Use of technology is base because without digitalization, globalization is
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Illustration 1: Inflation Rate, 2019. (https://en.actualitix.com/country/sau/saudi-arabia-inflation-
rate.php)

not possible because further it become barrier at the time of expansion. Use of social median
sites to promote their services and make their customer aware regarding different range of
solution which GAC Ltd provided to their client organization.
Environmental factor: It is the important factor due to insufficiency of raw material,
targeted population etc. It include the ecological factors such as climate change, weather etc.
these factors affect the various industry such tour, farming, insurance etc. Saudi Arabia is the
most loveable tourist place such as Dubai, Kuwait etc. so they many organization linked with
them and take necessary services which they required to perform their task (Schilling and et.al.,
2012). So manager have to analyse their needs which further help top management to develop
strategy as per the required of change in the organization. It will increase the demand of their
services which enhance employees performance and productivity. It fuhrer helps in achieving
business goals & objectives. Along with this, manger have to make sure that organization follow
each and every environment law otherwise it negatively affect the business.
Legal Factor: This factor directly affect the organization and it is overlap with political
factor which include specific laws and regulation according to the nature of business. In GAC
Ltd, manager have to make sure that business follow all the legal laws and regulation which
provide clear instruction regarding their task such as employee wage act, safety at workplace of
employee, use of safety equipments at the time of providing services (Brown and Bessant, 2013).
It will affect the business and force the government to interfere in the business activity to
identify the cause and reason. If GAC not able to implement these regulation then manager have
to adopt change strategy for the effective outcomes otherwise business has to follow various
complications.
Above mention driven factors affect the organization in order to implement changes so
manager have to analyse the need of strategic change. It will further affect the business in order
to increase employees as well as organizational efficiency which helps in achieving goals &
objectives.
Critically evaluate resource implication for not respond to the changes
It has been critically evaluated that GAC Ltd already serve worldwide area where they
have strong distribution network , logistic and effective supply chain. But in some places
business not able to perform well due to chosen locality which affect the business. Due to
already establish their infrastructure organization not able to shift anywhere because it will take
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lots of time and efforts (Steiss, 2019). So manager of GAC Ltd have to implement strategy
which helps organization to increase the reach of their service which further provide competitive
advantage. There are various resources which not responding to the changes and it is discussed
below:
 Finance: At the time of increasing operational or workers cost organization have to bear
all the expenses in order to complete their task and achieve business goals & objectives.
If suppliers or investors pull up their resources then it will become difficult for the
manager to manage all the activities related to the operational functions. So manager
have to implement various strategy such as cost cutting and cost control which further
organization have to reduce non valuable activities. It helps in reducing cost and increase
profit margin of the GAC Ltd.
 Human Resources: Workers of the organization is the main resources of production
which provide high efficiency. But retention of employees is the biggest challenges for
the business and high staff turnover cause the poor skills which reduce the efficiency or
output. Shortage of skills and experienced person affect the GAC Ltd at the time of
implementing changes. So manager have to ensure that they have skilled people who can
able to implement changes in effective manner (Cavallo and et.al., 2014).
 Capital: To adopt changes in the operational functions every business required capital in
term of required any change they have to spend money. For the equipment and regular
maintenance of machinery required capital in order to perform their task. If annual
maintenance cost will increase then it become difficult to survive and implement
changes.
Above mention resources affect the organization at the time of implementing changes in
order to increase efficiency as well as effectiveness. Lack of resources reduce the performance of
employees or organization which affect the productivity or profitability. Along with this, it
impact the organization and unable to achieve business goals & objectives.
Evaluate two change management model along with its relevancy with the
chosen organization
Change management model: In the business environment there are various change
management model which help the organization to implement various changes in order to
increase organizational efficiency as well as effectiveness (Change management model, 2019).
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Main advantage of this model is that organization perform their activities under the budget and
in structure way. Two change management model discussed below which affect the organization
in terms of productivity as well as profitability.
Key Stage John Kotter’s
8 step model
Prosci’s
ADKAR model
Current state 1. Increase Urgency
2. Build Coalitions
3. Vision
4. Communication
A – Awareness
D – Desire to support
Transition
period
5. Enable action
6. Quick wins
K – Knowledge
A – Ability
Desired state 7. Don’t let up
8. Make it stick
R - Reinforcement
John Kotter’s 8 step model: John Kotter introduce this change model which helps in
improving organizational ability and capabilities to get success. By following some steps
organization successfully able to implement changes. It helps in avoiding failure and increase
efficiency along with productivity or profitability (Kotter’s 8 Step Change Model, 2019). Main
aim of this model is to overcome resistance within organization. Kotter's 8 step model discussed
below:
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Illustration 2: Kotter's 8 Step Model, 2019.
(https://staff.napier.ac.uk/services/hr/workingattheUniversity/LandD/organisational-
change/support/building-your-resilience/Pages/Kotter%27s-8-Step-Change-
Model.aspx)
Urgency: It is the most important step of this model which help the organization to
identify the urgency of change. It will required honest statement which given by the internal as
well as external people that what kind of changes required to enhance employees performance as
well as organizational efficiency as well as effectiveness. Manager of Gulf Agency Company
(GAC) can identify the urgency by using this model of change. It help the organization to
achieve their business goals & objectives.
Develop guiding team: Good team is the combination of right people who sense the
urgency of organization and then implement changes. Team manager have to give efforts and
encourage each employee in order to motivate them and make them capable to achieve their
business goals & objectives. Project manager have to provide various instruction in order to
build effective team who can understand the urgency and then work further to implement
changes. Manager of GAC can develop guiding team by using this change management model
and increase their employees efficiency or performance.
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