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.
1

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
2

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.
3

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
4

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
5
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
6

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).
7

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:
8

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.
9

Right vision: For change in the organization and its operational activities, manager have
to develop clear vision so each member can identify their duty. With the help of this, individual
able to perform their task in agreed time period (Dawson, 2019). Manager have to linked vision
with strategy that helps the employees to accept and achieve business goals & objectives.
Communicate the vision: It is the most important step if this model where manager have
to develop support system in order to communicate vision with all the employees. Manager have
to build new vision through taking suggestion, opinion and feedback for the further
improvement.
Remove obstacle: Before accepting changes at every level they have to remove obstacle
which become barrier for the organization to achieve their goals & objectives. Manager
encourage their employees to accept changes and then implemented in the change process. In
context of GAC Ltd, manager have to identify obstacle and then remove for the efficient
outcomes.
Short term wins: Under this process, organisation have to develop short term goals and
they achieve with full efforts. It is important to develop short wins because it will take lesser
time in comparison to long term goals. Through building short term goals, manager of GAC
identify the efficiency and further improvement can easily done.
Continuous improvement: After implementing short term win they have to measure
performance and them find that if any improvement required. It is the slow going process where
they continuously improve the changes through analysing results. After getting multiple success
in the short term wins, manager of GAC Ltd have to established that changes are paying off.
Implement changes: After continuous improvement, if any changes required then they
have to implement for the further effectiveness. Now it become a part of corporate culture when
organization successfully implement the changes (Frynas and Mellahi, 2015). So manager have
to develop those strategies, standards and vision which help the employees to accept changes and
support for the further growth.
ADKAR model: It is goal oriented tool which help the change management team to
focus on each and every activity which further helps in achieving business goals & objectives. In
the organization, manager ensure that goal will be defined with the help of this model. Basically
by using this model, individual able to touch with each outcomes which provide better
sustainability and it helps in implementing strategy for the change. In context of GAC Ltd,
10

manager can follow this strategy in order to identify the various holes and gaps which lastly
affect the profitability. So manager can fix these gaps through providing effective training in
order to enhance their performance. There are various things which is used by this model and it
is discussed below and it affect the GAC Ltd:
 This model help the workers through out the process where they effectively implement
the changes which increase operational function and provide high efficiency.
 It helps in building efficient plan by using professionals and provide training to improve
employees performance which make them capable to achieve business goals &
objectives.
ADKAR model basically stand for:
Awareness: Each and every staff member have to be aware regarding organizational
changes so manager of GAC Ltd have to spread information regarding change. So every
employee become aware regarding organizational changes to improve performance.
Desire: Change have to accepted and give their equal participation to implement changes
in the organization. Manager of GAC Ltd have to encourage each worker for their contribution
(Galliers and Leidner, 2014).
Knowledge: To implement changes in the organization manager have to gather
information and expertise knowledge regarding every change. Otherwise it can negatively affect
the business where product or profitability both are affected.
Ability: To find their ability to incorporate with changes on regular basis because it is
very difficult change organizational activities because it will take enough time, efforts or
financial resources.
Reinforcement: Organization have to implement changes in their operational activities
and then monitor or support on regular basis. It help the manager to increase their efficiency or
effectiveness (Ginter, Duncan and Swayne, 2018).
By using this model Gulf Agency Company (GAC) can effectively implement the
changes and it further help the organization to enhance their employees performance. It will
increase productivity and profitability of the company. If GAC Ltd follow ADKAR model which
helps in identifying their organizational goal & objectives which further help the employees to
achieve in effective manner.
11

Develop change management strategy where stakeholders are involved and
develop strategy to overcome resistance
Change management strategy
It is the plan which helps the organization to make something different from competitors.
It will describe that how to address such changes which is beneficial for the company in order to
increase their efficiency or effectiveness. These strategic changes will helps in reducing
resistance and achieve business objectives & goals.
There are seven steps which helps the organization to implement change management
strategy which affect the stakeholders. In context of Gulf Academy Company, manager have to
implement in effective manner which increase efficiency or effectiveness and it is discussed
below:
 Communication: It is the most important strategy because most the time stakeholders
are not aware about organizational activity (Hubbard, Rice and Galvin, 2014). To
increase awareness regarding strategic change will helps the business to maintain
regulation communication between organization and customer to understand changes
which is required.
 Sponsorship: Organization have to develop strategy regarding sponsorship where
stakeholders of the company such as suppliers, employees, customer etc. They all are
wanted to know the reason of changing sponsorship.
 Stakeholder engagement: Under this strategy manager have to ensure that each and
every actions affect the society in positive way which is beneficial for the organization.
Change in the strategy will provide the effective results where stakeholders are engaged
throughout the change process.
 Impact of changes: Changes in the organization will affect the internal as well as
external parties. Basically organizational changes affect the stakeholder of the company
where new technology introduced and for this they have to provide proper training.
Initially it affect the owner because launching new technology will required huge
investment.
 Learning & development: This strategy define the skills, knowledge, capability for
stakeholder to adopt changes in order to increase organizational efficiency or
12

effectiveness (Kerzner, 2019). For the successful adoption of changes manager have to
provide training & development program.
 Measurement of benefits: Under this strategy manager have to implement changes and
then identify the expected benefits. Measurement should be quantify and specific which
is easy to measure. So after implementing changes, manager have to evaluate in order to
analyse the importance of change and what kind of benefits they get.
 Sustainability: Before implementing manager have to analyse that how it will become
part of the organization which further helps in performing their task. This strategy helps
the business to identify that after implementing changes it become stable or not for the
longer period.
Above mention change management strategy help the Gulf Academy Company to
implement changes in effective manner and it provide high efficiency or effectiveness in their
work
Strategy to overcome resistance
An organization adopt various strategy in order to overcome resistance which helps the
organization to implement to achieve business goals & objectives. Some of the strategy
discussed below:
Listen first and then talk: Firstly internal people have to communicate with each other
where they have to give chance to their employees to start conversation. So manager have to
listen their employees opinion or suggestion which further let it go their frustration over the
situation (Keupp, Palmié and Gassmann, 2012). So manager of GAC Ltd can use this strategy in
order to overcome resistance for the change.
Reason of communicating: Another strategy of overcoming resistance is to identify the
reason of communicating. After analysing the reason they have to develop proper plan that why,
what and how. Manager of GAC have to segment and target the audience through analysing their
needs and expectation. Organization have to identify the direct benefits to overcome resistance.
Company identify their stakeholders requirement and it involved suppliers, customer, investors
etc.
Think about employees: By using this strategy organization have to analyse their
employees requirement and how it will beneficial for them. For example: In the Gulf Academy
Company, manager have to develop new software system and they have to ensure that how
13

employees get the benefits by using this software. Along with this, measure what user done with
new technology and how it is beneficial.
Above mention strategy will helps the Gulf Academy Company (GAC) to overcome
resistance (Marler and Fisher, 2013). By using new technology through analysing its benefits to
the employees also helps the business. Along with this, listen their employees suggestions or
opinion which helps them to analyse their view and perspective.
CONCLUSION
From the above discussion it has been concluded that, strategic change management is
very important for the organization because it will increase efficiency or effectiveness. In order
to successful implementation of change will increase productivity as well as profitability.
Manager of the company have to analyse the reason that why changes is required and then they
have to implement effective strategy or model in order to effective outcomes. Two models of
change management will be explained how it will implemented to achieve their business goals &
objectives. ADKAR model helps in analysing common goals and it will followed up by the each
staff member. In addition, change management strategy helps the business to implement changes
and then overcome the resistance.
14

REFERENCES
Books & Journals
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model
for successful change. Journal of Organizational Change Management. 28(2). pp.234-
262.
Bednar, M. K., Boivie, S. and Prince, N.R., 2013. Burr under the saddle: How media coverage
influences strategic change. Organization Science. 24(3). pp.910-925.
Bock, A. J., and et.al., 2012. The effects of culture and structure on strategic flexibility during
business model innovation. Journal of Management studies. 49(2). pp.279-305.
Boyd, B. K., and et.al., 2012. Contingency hypotheses in strategic management research: Use,
disuse, or misuse?. Journal of Management. 38(1). pp.278-313.
Brown, S. and Bessant, J., 2013. Strategic operations management. Routledge.
Cavallo, E., and et.al., 2014. Strategic management implications for the adoption of
technological innovations in agricultural tractor: the role of scale factors and
environmental attitude. Technology Analysis & Strategic Management. 26(7). pp.765-
779.
Dawson, P., 2019. Reshaping change: A processual perspective. Routledge.
Frynas, J. G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Galliers, R. D. and Leidner, D. E., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Ginter, P. M., Duncan, W. J. and Swayne, L. E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Hubbard, G., Rice, J. and Galvin, P., 2014. Strategic management. Pearson Australia.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. Wiley.
Keupp, M. M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A
systematic review and paths for future research. International Journal of Management
Reviews. 14(4). pp.367-390.
Marler, J. H. and Fisher, S. L., 2013. An evidence-based review of e-HRM and strategic human
resource management. Human Resource Management Review. 23(1). pp.18-36.
Nielsen, B. B. and Nielsen, S., 2013. Top management team nationality diversity and firm
performance: A multilevel study. Strategic Management Journal. 34(3). pp.373-382.
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.
Steiss, A. W., 2019. Strategic management for public and nonprofit organizations. Routledge.
Online
Change management model. 2019. [Online]. Available Through:
<https://www.cleverism.com/major-approaches-models-of-change-management/>
Gulf Academy Company. 2018. [Online]. Available Through:
<https://www.gac.com/>
Inflation Rate of Saudi Arabia, 2019. [Online]. Available Through:
<https://en.actualitix.com/country/sau/saudi-arabia-inflation-rate.php>
15

Kotter’s 8 Step Change Model. 2019. [Online]. Available Through:
<https://www.toolshero.com/change-management/8-step-change-model-kotter/>
Kotter’s 8 Step Model. 2019. [Online]. Available Through:
<https://staff.napier.ac.uk/services/hr/workingattheUniversity/LandD/organisational-
change/support/building-your-resilience/Pages/Kotter%27s-8-Step-Change-
Model.aspx>
16