SAR Health Services: Strategic Business Management Report

This report analyzes SAR Health Services, a multinational company specializing in diagnostic equipment, facing strategic challenges related to organizational restructuring, cost reduction, and the implementation of green initiatives. The company's recent reorganizations, emphasis on environmental sustainability, and expansion into the Asian market are key factors. The report examines the importance of employee training and development, particularly in relation to sustainability and new transport initiatives. It also addresses potential management issues such as resistance to change and employee demotivation due to cost-cutting measures. The report provides recommendations for managing change, building change capability, and ensuring the successful implementation of strategic plans. Key areas covered include infrastructure, finance, and employee relations, all critical for navigating the challenges and capitalizing on the opportunities within SAR Health Services.

unningR head: STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT
Strategic International Business Management
Name of the Student:
Name of University:
Author Note

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Table of Contents
Introduction......................................................................................................................................3
Factors for Managing Team in order to proceed with the Proposed Plan....................................4
Training and Development.......................................................................................................4
Cost...........................................................................................................................................5
Green Initiative.........................................................................................................................6
Management Issues Which Might Arise......................................................................................7
Resistance.................................................................................................................................7
Demotivation............................................................................................................................8
Recommendation.........................................................................................................................9
Factors to be considered to build change capability..................................................................11
Infrastructure..........................................................................................................................12
Finance...................................................................................................................................12
Employee Training and Relationship.....................................................................................12
References......................................................................................................................................14

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Introduction
SAR Health Services is an Enterprise which has its location in Switzerland. The company
had grown in the years to become multinational in its operation. The products which are offered
by the company in the market include diagnostic equipment to European hospitals. The market
has expanded for the company as they have currently entered the Asian market to offer their
products. The relationship shared by the company with its customers are based on trust and
reliance as the products which are offered by the company in the market meet high expectations
and quality standards. This makes the customers satisfied and dependent. In Europe, SARHS
provide services 24/7 which has been proven to be extremely favorable by the customers. There
are over 3000 employees who work for the company and strive to take it to a higher position in
the market. The human resource of the company comprises of steps were responsible for the
production of the equipment, technicians, office staffs who look after marketing, sales and
distribution of the products in order to ensure profitability and penetration in the market. They
also are managers and drivers completing the staffing in the company.
The company is intending to put emphasis on educating their employees in staff about the
environment and sustainable development in the organization for better position in the industry.
This is ensured in SARHS with the help of training programs and induction after new staffs
selected for the company. Other initiative which are taken by the company in order to create
awareness about the programs and missions which include departmental meetings which are held
at the headquarters. This happens during a green slot in which several activities and updates are
brought in to order concerning the environment and the ways to achieve sustainability. The green
initiative which has been introduced by the organization can immensely be benefitted through
their internship program as it’s and useful medium to cultivate new and developed ideas.

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Factors for Managing Team in order to proceed with the Proposed Plan
There are several factors which are to be taken into consideration in order to proceed with
the implementation process. The company has already gone through two restructuring of the
organization in the last two years, which have been challenging for the management as well as
the employees. The previous restructuring which happened in the company was from being a
functional matrix structure. The employees in the company have not fully accustomed to the
change order in the organization (Cameron and Green 2019). Due to the change there was
confusions among the employees regarding their responsibility and roles in the company. Some
of the managers were unable to understand their authority in the company itself. The company
should consider change of leadership which is practiced in the organization.
Training and Development
The company lays emphasis on the training and induction process through which the
employees are made aware about their roles and responsibilities in the company. SARHS not
only should prioritize and develop training programs which intend to make the employees aware
about environmental standard and sustainability which are to be achieved by the company, it
should also intend to create understanding and sense of belonging among the employees with the
company even through the change (Noe et al. 2015). The staffs should be trained well intimated
about the intended changes in the company in order to implement it with precision. Deviance
from the same might lead to constraints such as anger, demotivation, withdrawal, opposition
from the human resource (Dawson 2019). A smooth organizational change always requires effort
and contribution from the human resource who are integral part of the company.
SARHS has proposed to bring new transport initiatives to achieve sustainability and
contribute to achieve environmental balance. This can only be achieved if the drivers were

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associated with the organization are fully equipped and trained to carry on the initiative. The
organization should not simply expect a drivers to become fuel efficient but to be so, they must
be provided with effective training (Alvesson and Sveningsson 2015). The company has
identified this and planned to provide training for fuel efficiency. However, this is a great
initiative which can be achieved by making the drivers aware about environmental degradation
and overconsumption of fuel. The drivers will feel more motivated to contribute to the cause and
help in bettering the environment through their efforts and contributions. The company can
introduce benefits and rewards for the drivers for upholding such values and initiatives as
proposed by the company to position themselves among the competitive force in the industry
(Bratton and Gold 2017).
It should also be ensured that the drivers and employees have proper infrastructure and
amenities to carry on their programs and initiatives which will allow them to function properly
and implement the changes towards positive outcome (Bratton and Gold 2017). If the employees
do not have proper amenities and infrastructure, the employees might feel demotivated and
confused about the change of work and company expectations. The employees should be able to
function in a proper environment which will allow them to be ahead of the competing forces in
the industry.
Cost
SARHS is intending to cut their costs of production. There has been pressures coming in
from the health care organizations for constrained budgets. This is challenging for the company
to offer their products as there are other competitive forces in the market offering similar
products which is increasing the bargaining power of the buyers to keep the price of the products
low. The company has been aware about the growing situation in the market, for which they

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have intended to cut down cost of operation which will eventually allow them to offer products
at low prices in the market (Lozano, Ceulemans and Seatter 2015). This can be positive and
ensure more profits and association with health care institutions. The cost of the production
should be brought down efficiently rather than exempting employees from the work force. Wise
usage of resources and amenities will be effective to bring down cost of production and finished
goods.
The company should keep in mind that, while bringing down the cost of operation, it is
important to keep in mind that laborers do not feel insecure about their jobs (Al-Haddad and
Kotnour 2015). If the cost of production is brought down by reducing labor and employees, there
might be agitation and conflicts resulting in poor productivity. The company has intended to
close down one production site and consolidate operations in the other one. This can be achieved
by relocation of work among employees and allowing work from home for employees who are
eligible and reliable. This has been rightly identified which can allow the company to cut down
costs without making the employees feel insecure (Bengat, Odenyo and Rotich 2015). The
company should promote participation and consideration of opinions and concerns of the valued
employees which will make certain that the employees feel a sense of belongingness (Al-Haddad
and Kotnour 2015). If the company values its employees during its growth, the employees are
motivated further to contribute to the growth and success of the company.
Communication
Communication is very important for a company to be successful in its ventures and get
bigger in market share. SARHS should aim to develop effective communication in the company
in order to ensure that there is flow of ideas and thoughts which strengthens a feeling of
belongingness among the employees. The culture of the company will be enhanced in which

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working conditions is most likely to get more positive and motivating for the employees.
Motivation and satisfaction is very important, which should also be ensured by the management
and the company by providing bonus, appraisals and recognitions to the employees for their
performance and contributions.
Green Initiative
The company intends to start their Green Initiative through programs which will allow
them to contribute to a positive cause of conserving the environment and the ecology. This, they
plan to implement through certain initiatives to make their business as well as the environment
sustainable in nature. The company lays emphasis on recycling their products, which can prove
to be very positive for their company profile. The environmentally conscious buyers will be
more eager to buy products and be associated with the company (Ahmed 2015). The company
should implement their ideas and proposals properly which will allow them to create a great
reputation. The Green Initiative will be successful if they engage all employees to follow their
objective and adopt them as choices. The wastes of the company are to be managed in an Eco
friendly way without causing harm to the company. Any negative outcome or reputation owing
to mismanagement of wastes and impact on the environment might be very detrimental for the
company reputation.
SARHS should also ensure that the organization is able to recycle products and wastes
for their usages which can bring down costs of operation too. A campaign for regulated
consumption of products and resources will be effective to grow awareness among the
employees. The cost of the products can also be brought down with the help of recycling of
products and wastes. Electricity can be produced with recycled energy. Home based work will
help to save resources and reduce wastes too. It can also be immensely beneficial for the

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company to save operation costs as many employees can be associated with the company from
across different geographic locations and contribute to the growth of the company.
Management Issues Which Might Arise
The company might face several issues owing to the changes happening frequently in the
company. The employees might face challenges to deal with the changing conditions and the
ways to accustom to the changed order in the company (Stone and Deadrick 2015). The changes
might be positive as well as negative for them, which might lead to negative as well as positive
reactions from the employees. The management should make it certain that these should be dealt
with, with precision in order to make progress with the implementation process.
Resistance
Resistance and emotional responses of the employees can be a problem for the company
to make changes. A very effective model and theory can be utilized by the company to chart out
or trace the development of personal transition of the employees alongside organizational
changes taking place. The process of change and reaction towards it can be understood and dealt
with, with more accuracy with the help of Change Curve and Transition Theory (Eisenberg and
Alahakone 2016). Understanding various responses of all the employees will help the leaders and
managers to employ correct ways to execute ideas and establish leadership style.
The employees might pose resistance to accustom to the changes. This can arise as there
has already been two consecutive changes as well as fear of not knowing the results which are to
come from the changes to be made (Lines et al. 2015). The company is intending to make a
drastic change of shutting down one sight and consolidating the process at the other site. This
means that the employees might feel pressurized to take up more work and apprehensive about
security and change of work (Hon, Bloom and Crant 2014). The employees might not want to

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relocate if there are expectations and demands from the management's end to not stop the
production process. The expenditure for travel might increase if there is a change of location, this
might be one of the reasons behind employee resistance. If resistances arising within the
company is not dealt with, there might be troubles handling the operation and implementation of
the changes intended (DeCenzo, Robbins and Verhulst 2016). SARHS is also intending to
decrease the workforce, which might be negatively effecting the employees as they might feel
insecurity and withdrawal to be associated with the company. Resistance usually occur due to
anxiety and uncertainty. Employees start feeling insecure about their position at work (Albrecht
et al. 2015).
Conflict
The need for change may arise for process enhancements which should be implemented
by ensuring that the resistances posed by the employees do not get in the way of execution. The
trainee drivers who are accustomed with the existing system might not want to change their ways
to become fuel efficient as changes are not always welcomed positivity due to uncertainties and
unknown results (DeCenzo, Robbins and Verhulst 2016). Employees might have differences of
opinion and reaction to changes as well as situations in the organization. These differences of
opinion while working together might pose obstruction and conflict between people. If there is
conflicts and resistance within the organization, there might be added costs which the company
will have to bear in order to ensure proper functioning of operation. Conflicts can be handled or
managed by following The Tuckman’s team formation model which describes progress in a team
through four stages: forming, storming, norming and performing (Moghaddam and Nof 2015).
These stages involve the entire process of organizing to producing in the company to manage
conflict and perfomances.

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Motivation
Employees should be motivated to perform their work diligently. Their efforts and
contributions should be acknowledged as human resource of an organization is the backbone and
the most valued part. The company should make it certain that the employees are motivated to do
their work rather than feeling the burden of change (Albrecht et al. 2015). Teamwork and
coordination is the key to success, which ensures that members feel motivated. Every employee
feels motivated differently, the management should look out for ways to keep them motivated
even during the challenging period of change, as there will be apprehensiveness and uncertainty
in the minds of the employees. Poor motivation of employees may even tend to high employee
turnover in an organization which should be managed (DeCenzo, Robbins and Verhulst 2016).
During the change it should be ensure that higher engagement of employees and proper
communication should be maintained. These might as well affect productivity leading to the
growth of negative environment. Demoralization greatly affects productivity of a company,
which might affect its reputation and profitability in the market while closing down one site and
consolidating production process solely on the other.
Employees should be motivated in the organizational setting. The employees should be
motivated to be able to contribute to the company through their performances independently. The
characteristics and responses of the employees will also be acknowledged in such a way. This
can be ensured while also ensuring success for the company through Human Resource policies
and practices. The aim is to improve wellbeing and performance of the employees, which
include Ability, Motivation and Opportunity by following the AMO Model (Obeidat, Mitchell
and Bray 2016)
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Recommendation
SARHS is a multinational Enterprise which specializes in diagnostic equipment across
hospitals which are located in Europe but it has also expanded its market in Asia. As the
company has built high reliability and trust among the customers, it has been only possible due
to the efforts and contributions made by the employees. The company has laid emphasis on
environmental education which are conducted through training and induction processes.
Environmental sustainability is one of the goals set by the company which is frequently
discussed at the head office for implementation of plans and ideas to achieve sustainability in the
market. However, the company as already gone through restructuring of the organization twice
before which marks the proposed structuring to be the third one.
1. The primary goal behind restructuring is for cutting down costs of operation of the
company. However this is being implemented by closing down of one site and
consolidating the entire process of production in the other. This might increase pressure
on the employees in site B and make the employees who have worked in site A be
insecure and jobless. The aim of the company should be to retain as many employees
possible and aid security for the contributions they have made towards the growth of the
company.
2. SARHS can follow a model in their process of change, which is Lewin’s Change theory
(Hussain et al. 2018). This might be effective for the company to bring about a change in
the organization and its functionality by three stage model of unfreezing, change and re-
freeze, which will provide opportunity to the employees for their flexibility. It is effective
to maintain a dynamic balance.

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3. The energy costs of the company can be brought down, which can be effective to bring
down cost of operation as a whole. The aim of bringing down cost of operation will be
successful if they carefully plan and reduce the excess of resources which are being used
during production process. Allowing employees to work from home will allow the
company to save resources, electricity and money while they can be associated with the
company and contribute in the growth of the company.
4. During the period of 6 months time, the employees can be provided with training
programs to develop their skills and enhance productivity of the company to take the
initiatives of green slot and recycling forward after commencement of the another plot
100 miles away.
5. The employees who worked in site A should be assured about their job security after
shutting down of site A. It is being anticipated that there will be a reduction of production
site by 5-8%. It should be ensured only the low performing employees are excluded from
the work force.
6. The Green Initiative is supposed to bring down the carbon foot print of the company by
2020, which will as a result, bring down costs of production. However, the company
should look out that the green initiatives are also maintained while managing wastes and
recycling of products in the company, for usages. If the employees are motivated to
develop and adopt a lifestyle of minimal wastage and recycling, it would contribute to the
betterment of the company reputation and the environment itself. Encouraging the usage
of wastage bins will prove to be very effective for the company. The company can
engage in awareness program and campaigns to promote sanitation and cleanliness by
installing recycle and waste bins in areas near hospitals.

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7. The employees should be engaged during the process of change and made aware about
the proposed plans and ideas. The employees should not have to anticipate and assume
about the courses of action which might give rise to tension and anxiety. There should be
scope for participating and consideration of opinions of the valued employees which will
allow the company to achieve positive growth in the company (Cloutier et al. 2015).
8. The staffs who are reliable can be given opportunity to work from home, which will
allow the company to retain valuable employees. Employees for whom the increase of
distance will be a factor of worry, the company can also provide opportunity for work
from home facility with the condition to report at work once a week.
Factors to be considered to build change capability
There are a few factors which should be taken into consideration to enhance the
capability of change in future. A company should, at the very first place, have a clear plan of
action and the objectives which are to be achieved at the end of the change process (Bengat,
Odenyo and Rotich 2015). Confusion and doubts may give rise to problems and tensions for the
company as the employees might face trouble understanding their roles and responsibilities
associated with the company and their work (Hayes 2018). The proposed idea and the period of
time required for implementation should be set in accordance with the proposed plan and
objectives. The employees should have a clear idea about the change which is intended in the
company.
Infrastructure
The company should pay attention to the infrastructure of the company while undergoing
a change. It is important to have proper infrastructure to have a change in the organization. If the
company lacks proper infrastructure, there might be changes that the change process will be

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difficult to execute (Hayes 2018). SARHS should aim at building good infrastructure for the
company to enhance their capability for the long run and sustenance in the industry.
Culture
The company should with the opportunity to collaborate. Such a culture is able to foster
great thoughts and newer ideas for growth and change for the company. The employees will feel
encouraged to place their ideas forward, which will be considered for development and
collaboration. The change should be positive which must be perceived positively by the
employees. This can be made certain of, by creating a positive narrative of change and build
expectations among the workers.
Finance
The financial aspects are to be taken into consideration to enhance prospects of the
company for the future. The capability of the company can only be bettered if SARHS has great
financial capability and profit earnings coming from the market. If there is an intended change, it
should be examined, if the company has the capability to withstand and execute the intended
plan of action (Bengat, Odenyo and Rotich 2015). Financial stability is very necessary for
enhancing capability.
Employee Training and Relationship
The company should maintain good relationship with the employees which ensures
positivity and motivation among the workers about the work which they perform and contribute
to the positive growth of the company. The employees are the backbone of the company, which
should be paid great attention to by taking into consideration their opinions and expectations
related to the job (Hayes 2018). It is important to ensure proper communication and interaction

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between the employees and management (Bratton and Gold 2017). Training and develop is
another aspect which should be maintained in order to ensure proper functioning of the operation
(Bengat, Odenyo and Rotich 2015). The employees should be given opportunities to develop and
enhance their skills which they can make use of to better their performances and feel positive
about overcoming their shortcomings. The trainers and managers should also be provided with
opportunities for training and development opening newer avenues of growth and enhancements.
Conclusion
SARHS is intending to bring a change to the organization and introduce training for
Green Initiatives to the drivers for fuel efficiency and closing down of one site temporarily.
However, there are anticipation for the reduction of employees by 5-8%. This might give rise to
resistance tensions and conflicts which must be dealt with efficiently in order to avoid further
problems. The company’s aim should be to achieve sustainability and encourage participation of
employees to implement the change which has been identified by the management in order to
reduce cost of operation which is necessary to sustain the demands in the market of products
being available at lower costs.

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