Strategic International Business Management Report: SweDigi Case

This report delves into the strategic international business management challenges faced by SweDigi, a manufacturing company undergoing significant changes. The analysis focuses on the people management issues encountered by the new CEO, Jan, including employee resistance to change, c...Read More

Strategic international business management
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Management 1
Abstract
The purpose of the report is exploring the issues that are linked with the management as these are
used by company in managing the change. The findings include different types of issues related
to the people management that are faced by Jan within company. Further, the recommendations
have been provided in order to apply the change in successful manner with implementation of
ADKAR model and to take the short as well as the medium term to avail the introduction of the
new product back on track. Further, the findings also include the style of leadership that is
required to be adopt by Jan in this process as well as it also includes the reason behind the
democratic as well as the transformation style that remains appropriate.

Management 2
Contents
Introduction......................................................................................................................................4
Case overview..............................................................................................................................4
People management issues..............................................................................................................5
Transition in old product.............................................................................................................5
Communication issues.................................................................................................................5
Employee’s turnover issue...........................................................................................................6
Absence of marketing manager...................................................................................................7
Steps to get the launch of the new product back on track...............................................................7
Short-term measures....................................................................................................................8
Steps towards the threats of production manager....................................................................8
Marketing manager appointment.............................................................................................9
Measuring and monitoring the performance............................................................................9
Medium-term measures...............................................................................................................9
Jan should restructure the production process.......................................................................10
Measuring the effectiveness of quality as well as resources.................................................10
Measure the financial performance.......................................................................................11
Leadership styles...........................................................................................................................11
Transformational leadership style..............................................................................................12
Democratic leadership style.......................................................................................................12

Management 3
Decisions that help to improve this situation.................................................................................13
Recommendations..........................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

Management 4
Introduction
In the present era, the strategic management is the continuous planning, monitoring, analysis, as
well as the assessment of all that which is essential for the companies to meet the objectives as
well as goals. The competition is increasing as its affects the business operations that are
becomes complex as the company is supposed to make the strategy that assists in achieving the
goals and to work effectively. The aim of the report is to analyse the theories related to
leadership, motivation as well as the change management with its implementation. The report is
bases on the case study of SweDigi that reflects the different people management issues and its
encounter by Jan. In the end, it includes the recommendations on how the change management
theories like ADKAR can be implemented effectively by the company.
Case overview
The case is related with SweDigi which is an manufacturing company present in the south of
Sweden and was previously owned-managed it was sold to a group of people that consists of
seven similar sort of companies four years ago. Presently, the company is present with 543
employees with the present CEO of the company that is present with company for 15 years is
due to retire in coming few months. In the case, Jan is very enthusiastic about taking the role of
CEO at SweDigi.
Jan’s Mission
In order to turn company around in the coming 12 months by searching for the new niches for
the existing product range but majorly by launching the new product with the high tech
simulation game majorly for the use in training in media industry.

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People management issues
It has been found that personnel within the company are key towards their success due to which
it is every important to make the personnel satisfied with the work that is done by them. In the
case study, it has been found that Jan is dealing with the people management issues that are
given below -
Transition in old product
The major issue that has been witnessed by Jan as CEO include the transition in old product. The
change in the old product took place due to the improper management of company that turned
with the support of the modification majorly in the updated new product (Bridges, 2009).
However, this might lead to the issue as the marketing as well as production manager resist for
the change within the organisation. The change in the product makes the production manager to
give the threats of leaving or switching the company for another company in multinational
market. In addition, the marketing manager simple Quit work that is required to be done by
them. This reflects that people are not ready for any kind of changes as well as they resist for
even minor change in product (Carnall, 2007). Jan, CEO found that their company need
production manager for bringing the modification in the old product for introducing the new
product within the market. In this issue, the effective communication with both the marketing
and production manager can resolve the people management issue.
Communication issues
In the complex business structure, communication is considered as one of the key towards the
success of business. The communication within the business is not only required with the
customers but also among the employees (Noe, Hollenbeck, Gerhart and Wright, 2017). The

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internal process of business is managed by the employees of SweDigi due to which it is essential
for them to communicate effectively. The lack of accurate decisions reflects that there are
loopholes in the communication among the employees within the company. The company is
performing its business operations in the competitive environment due to which they are required
to take the decisions in the effective manner. The conflict among the personnel takes place
because of the diverse people present in market that have different opinions as well as
understanding (Cascio, 2015). Misunderstanding among the employees arises due to the different
opinions as well as understanding that affect the performance of personnel for the existing as
well as the new products. Further, this has been witnessed in the case that the managers of
company doesn’t contribute in resolving the issues as they ignore all the things because of the
less bonding and communication among the team leaders as well as the employees (Collings,
Wood and Szamosi, 2018). Thus, this might lead to increase in personality clashes as well as
issues related to the trust. In addition, it is suggested to the Swedigi company to form a set of
structure that assist them in communicating effectively with the manager as well as the
employees which can be done with the effective use of communication methods and tools.
Employee’s turnover issue
It has been found that presently SweDigi Company is equipped with the 543 employees which
means that the company is increasing in size with numbers. Further, it has been found that
twenty employees have been made redundant as well as the forecast reflects the possibility of
further reduction in employees (DeCenzo, Robbins and Verhulst, 2016). Thus, this is considered
as one of the major issue related to the people management that has been witnessed. Moreover,
the new product within the company has made many other employees to think for the job switch
like production manager who threaten to resign the company. Thus, this is the reason due to

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which Jan, CEO of the company stated that if production manager is not with the company then
other employees of the company who are working with them are not aligned with me. This
means that the employees of the company can leave their job any time whenever they want to
leave (Dickmann, Brewster and Sparrow, 2016). HR of the company needs to perform their
practice in effective manner in which they ensure that employees of the company are aligned
with organisational goals.
Absence of marketing manager
In the present era, the marketing manager contributes effectively and they work in order to make
the products easy accessible for customers. The marketing manager of SweDigi is not there due
to which it creates the impact on the sales team of the company because they are the one who
needs to perform operations in effective manner. Presently, it has been witnessed that sales
agents are trained in the new products deals with the issue of findings the best prospective clients
for them (Vaid, and Ahearne, 2018). Thus, the personnel of sales team are dealing with the issues
of searching for the best clients to whom they can offer the products because there is lack of
marketing manager. This might increase the sales pressure from the company side and makes
them to leave the job that leads to people management issue. Considering the situation, it is
recommended to HR to hire the new marketing manager so that they can resolve the issues
related to sales and marketing (Price, 2017).
Steps to get the launch of the new product back on track
Considering the case, this has been found Jan has encountered the different problems within the
company that affected the production of the new product. The employees registered their
resistance towards the change because it is difficult to customize the new product majorly in the

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sales as well as in production that are taking off the forecast. Further, the management team
reflected their views on the progress assurance as well as its development that is not taking for
longer period (Bratton and Gold, 2017). Considering the depth analysis of the problems, it has
been found that Jan should take the short as well as medium term steps that assist them in
launching of the new product back on the track. The below given is the brief discussion of the
short as well as the long terms measures: -
Short-term measures
The short-term measures that are should be taken Jan are majorly for the short span of time and it
does not include much time.
Steps towards the threats of production manager
In the case, the first and major issue that has been witnessed by Jan with the people include the
threats by production manager for leaving the company. From the introduction of the fact that
there is need to produce the new product production manager of the company is threatening for
leaving the job that is faced by manager (Hayes, 2018). Jan should consider the issues because
these issues are required to solve by them that are considered as short-term measure. Jan should
organise the one-on-one meeting with the production manager, as this will help them in
understanding the issues which might be manager is facing at the time of production of new
product due to which he has taken the step to leave the company. The issues can be faced by the
manager might include low motivation, salary, incentives, change and many others (Bailey,
Mankin, Kelliher and Garavan, 2018). Jan can resolve all the issues by offering the hike in
salary, by improving the incentive schemes, by proving training that can easily enhance the skills
and knowledge. All these efforts will make the production manager to stay in the company and
all these steps can be taken by the HR in the short span of time.

Management 9
Marketing manager appointment
In the case, this has been witnessed that the SweDigi Company is dealing with the issue of lack
of marketing manager which is not only affected the sales but also lead to the people
management issues. The new product sales are not as per the forecasting done by the company
due to which they need the marketing manager who can take the strict steps and form the
strategies related to marketing of new product. The increase in the sales will take place
effectively with appointment of marketing manager that is possible with the promotion of
product in present market (Armstrong and Taylor, 2014). The marketing manager contributes
effectively in improving the awareness about the product that attracts the customers to purchase
product. Thus, this effectively help organisation to take reliable actions related to the volume of
goods that are required to be produced, the response of customers, changes in product and many
others. HR of the company need to look towards the needs of the company due to which they
need to search and appoint the marketing manager that is a short-term measure for the company.
Measuring and monitoring the performance
It has been witnessed in the case that SweDigi Company is dealing with the diverse issues that
are linked with the people management which directly create the impact on the performance of
employees (Marchington, Wilkinson, Donnelly and Kynighou, 2016). Jan should monitor the
performance and to take the necessary steps that can effectively contribute in improving the
working of the employees.
Medium-term measures
The medium term measures majorly consist of steps that are taken by company that is required to
be complete. Jan should take some of the medium-term steps that support them to launch the new
product effectively in the market.

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Jan should restructure the production process
In the case of SweDigi Company, Jan, CEO of the company should restructure the entire process
of the production for the new product of company in order to produce products in an effective
manner. Jan should do the proper planning for producing the new product because it requires the
equipment has in order to manufacture the new products that offers the clear understanding to
employees. This will meet the needs of the production department, which will satisfy the
manager, and they can effectively work (Kotter, 1995). This is long-term measures because it
requires the proper planning for the equipment’s that are required to purchase. In addition, it
includes the different ways through which the sourcing of amount can be done that will be
utilized for the production of new product. Finally, the purchase of products for the production of
new product will meet the needs of production manager as well as the company.
Measuring the effectiveness of quality as well as resources
In the case, the people management issue faced by Jan as a CEO not only has affected Jan but it
has affected the use of resources as well as the quality of products. The introduction of the new
product includes the changes in existing or old product. This creates the impact on quality as
well as on the resources of company (Brewster, Vernon, Sparrow and Houldsworth, 2016). The
resources of company gets affected which include the material used for the production as well as
the personnel that are major resource of company as they are dealing with the issue of people
management (Schein, 2002). The quality of the work done by the employees also gets affected
with such an organisational culture at the workplace. The measurement of effectiveness of the
resources as well as the quality is essential to be done which is not possible in the short span of
time and due to which its required time. This measure will assist them in taking the right steps
for the betterment of the company.

Management 11
Measure the financial performance
The survival of the SweDigi is dependent on their profit that is possible when the company will
be able to manage their new product. The new product has affected the sales that lead to the
decline in the profit of company. In long run, the profits are required to manage by the Jan with
the company. Thus, one of the steps that will be taken by the Jan is to measure the financial
performance of the company as this supports the financial decision of the company.
Leadership styles
In the present era, there are different types of the leadership styles that can be applied by the
companies at the workplace. The different styles of leadership that are present include
democratic, Laiseez-faire, transactional, transformation, paternalistic and many others. The most
common style of leadership that is generally used by the companies includes democratic
leadership style (Ullah, Kiran and Liu, 2019). In this style of leadership, the members of the
groups take the more participative role while making the final decision within the organisation.
This style of leadership is one of the most effective types that lead to high productivity with the
better contribution from the different group members with the rise in the morale of the team
members. On the hand, transformational leadership style is a theory where the leader perform
their business operation to determine the needed change, a forming vision to guide with the
change that occur through inspiration (Iqbal, Anwar and Haider, 2015). Considering the case of
SweDigi, it can be said that Jan should adopt the democratic and transformational leadership
styles within the workplace depending on different situations present at workplace. These
leadership styles are considered as effective for the company as well as it contribute for the
success of SweDigi.

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Transformational leadership style
This style of transformational leadership is considered as most common style that is practices by
the leaders in order to bring the change within the organisations, groups, oneself, and many
others. This style of leadership contributes in motivating the employees within the organisation
so that they can perform their work effectively (Asrar-ul-Haq and Kuchinke, 2016). The high
level of satisfaction is achieved once the needs of employees will be fulfilled which is possible
with transformational leadership style. Jan needs to bring the changes for the transition for new
product for which this leadership style is appropriate. This style of leadership helps Jan to bring
changes and manage the operations that contributes in goals of company. The communication
among the employees will become strong which will resolve all the related issues.
Democratic leadership style
This style of leadership is majorly involves the practice in which the leader has the obligation to
take the final step after involving employees in the discussion. This means that subordinates are
majorly involved while taking the decisions (Amanchukwu, Stanley, and Ololube, 2015). Jan
should adopt this style of leadership to deal with issues of communication, involvement of
supervisor in decisions and value to customers. Further, the leader can take step to bring changes
in agreement of employees so that they can work effectively. This style of leadership is essential
because it helps the employees to respect the ideas of other leaders present within the country. In
addition to this, the democratic leadership style makes the employees to be committed towards
the work. Jan will get the benefit, as they will be able to enhance their commitment level so that
they can work effectively (Khan, et al, 2015).

Management 13
Decisions that help to improve this situation
In the present situation, it is essential for SweDigi Company to take the essential steps for
managing the change. The implementation of ADKAR model will be effective as SweDigi
Company because they deal with resistance from employees (Prosci, 2018).
ADKAR model is form of five building blocks that lead to successful change that consist of
Awareness, Desire, Knowledge, Ability, and Reinforcement (Hayes, 2014).
 Awareness: - Awareness is part of model that shows personnel need to be aware related
to the change that exists. SweDigi company should make the personnel aware related to
the changes in terms of culture and work.
 Desire: - This block of model include the employees of company must have the desire to
participate as well as assist change that is required for the betterment. SweDigi needs to
discuss changes and should always make the employees to learn for the need of changes
within the workplace.
 Knowledge: - This block include the collection of knowledge that is linked with goals of
change to make it clear for employees. SweDigi Share the knowledge among the
employees who will develop their interest related to change.
 Ability: - This block shows that employees should have the ability to learn the new skills
and to manage the behaviour (Prosci, 2018). It has been determined that an employee has
least interest within the company. Thus, it becomes essential for SweDigi Company to
offer the training so that they can easily accept the change.
 Reinforcement: - This block majorly consist of reinforcement that is to maintain the
changes that makes it transparent for personnel that they can’ turn back. Jan needs to

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makes the employees understand that the company is in situation where they need to
make changes for survival and they cannot turn back.

Management 15
Recommendations
It is suggested to the SweDigi Company to for the strategic planning that helps them to eliminate
the different sort of issues faced by them. Buchanan & Mc Calman (1989) proposed a framework
that can helps in perpetual transition management that offers the insight linked to the fact that
triggers organisation and shows the outcomes within the company towards the change. This
model includes 4 layers that are essential to be used are: -
It is suggested to SweDigi Company to apply the model that leads to rise in effective planning;
management of resources as well as communication with the combination of changes needs to be
done in successful manner.

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Conclusion
In the end of the report, this can be said that SweDigi company CEO Jan, is dealing with
different sort of issues related to the personnel and these issues are required to be managed by
company. All these issues created the impact on the transition of the product in the market. In
order to deal with the issues and to bring it again on track it is must for the company to take the
steps for the new product that include long term as well as short-term measures. In addition, the
report includes the leadership style that has been suggested to Jan that include transformational
and democratic. The company need to take certain decision to manage the change that is possible
with the help of ADKAR model of change management.

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Management 18
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