Strategic International Business Management at SweDigi

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This report analyzes the change management process at SweDigi, focusing on issues related to people management, such as employee turnover, conflict, and communication challenges. It explores short and medium-term processes for new product development, highlighting the importance of idea generation, screening, concept testing, business analysis, product development, test marketing, commercialization, and market performance review. The report also discusses the leadership styles that Jan, the new leader, should adopt, including democratic, transactional, and Laissez-Faire approaches. Recommendations are made based on the ADKAR Model and Change Management Model to foster a positive environment and improve the company's overall situation. The analysis emphasizes the need for effective communication, conflict resolution, and employee satisfaction to achieve strategic objectives and maintain a competitive advantage.
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Strategic International Business Management
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STRATEGIC MANAGEMENT 1
Abstract
The main aim of this report is to understand the change management process. SweDigi has
been taken into consideration to analyse the change management process. In this report, the
issue has been discussed related to people management. Short term and medium term process
helps the Jan in developing new product. Democratic, transactional and Laissez-Faire are the
leadership style which the Jan has to adopt to improve the situation of the company. ADKAR
Model and Change management model is the model which is recommended to maintain the
positive environment.
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STRATEGIC MANAGEMENT 2
Contents
Introduction...........................................................................................................................................3
Issues faced by SweDigi........................................................................................................................3
Short and medium term process.............................................................................................................6
Medium Term....................................................................................................................................6
Short Term.........................................................................................................................................8
Leadership Style..................................................................................................................................10
Recommendations...............................................................................................................................11
Conclusion...........................................................................................................................................13
References...........................................................................................................................................14
Appendix.............................................................................................................................................17
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STRATEGIC MANAGEMENT 3
Introduction
Change management is a collective term which is used by the company to prepare and
support the team to achieve the objective. In this process, technology and the other habits are
change to attain the objective. The purpose of this approach is to implement the strategies for
the effective change and helps the people to adopt the changes (Hayes, 2014). At the time of
change the management, the leader faces the issue related to the people management. The
change management helps to achieve the success but sometimes the organisation fails in their
objectives (Brisson-Banks, 2009). In this report, the case study of SweDigi has been taken
into consideration to understand the change management. In this case, the CEO of the
organisation has been changed with the more experienced person. The new leader of the
company announced some changes to achieve the success in the market. The leader faces the
issue during the changes related to people management.
In this beginning of this report, the issues will be discussed which is faced by the leader.
After that, the short and medium term process of launching the new product will be analysed.
Leadership style has been adopted by the leader to resolve the issue of the company.
Recommendations will also be mentioned to improve the situation in the end of the report.
Issues faced by SweDigi
Employee’s turnover
Employee’s turnover is a big issue faced by the company due to unsatisfied demand of
employees. Employee’s turnover refers the issue in which the number of people leaves the
organisation. Employees satisfaction is evaluated in a table which reflects that the employees
retaining are depend on the satisfaction of employees. The employee’s first priority is given
to the necessity which is necessary to fulfil by the salary of the employees. The other phase of
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STRATEGIC MANAGEMENT 4
the employee satisfaction is luxurious life which can be possible with the high pay scale. The
last stage states that the employees want the respect in the organisation. It is necessary to
fulfil the demand of consumers to retain them for long time. The company has the benefit to
influence the employees to stay in the organisation for long time. The existing employees
have more experience about their jobs and they have more understanding in their jobs. The
company also have the opportunity to save the amount without spending the training to the
employees (Hill, 2017).
In the case of SweDigi, it has been seen that the marketing manager and production manager
quit their job and switch to the other companies. The other employees are also started
resigning their jobs. The reason behind the employees’ turnover is the dissatisfaction of
employees in the context of respect. There are different points of view of the employees for a
particular task due to diversity workforce. It is the responsibility of a leader to consider the
point of view of each and every employee so that they are encourages to participating in the
every meeting of the company. Jan fails to consider the point of view of each and every
employee in the organisation.
Conflict
There are many reasons due to which conflict has been raised in the organisation. It is
essential for the company to reduce the conflict to achieve the objective. The productivity of
the company is reduces due to conflict between the employees. In diversity workforce, people
have different point of view due to which the conflict is arises in the company. The company
fails to meet their objective of the company due to individuality work in the organisation.
From the above analysis, it is observed that the different employees have different opinion
due to the conflict is arises in the company. In this case, employees have different point of
view which became an issue for the company. Jan organised the meetings to discuss the
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STRATEGIC MANAGEMENT 5
production process but due to different point of view of employees the meeting covert into
the arguments. It is observed that the management team has their different opinion for the
quality assurance process. The other departments have their own opinion towards the quality
assurance due to which the conflict raise in the company. The organisation fails in the new
project because they are not able to understand the techniques and changes which is
announced by Jan.
Communication
It is an issue which is faced by the company while the process of change management.
Communication is main component for the company which helps the leader to supervise the
team to do the work. Less productivity and ineffective process are the result of lack of
communication in the society. Communication helps the leader to maintain the relation with
the employees to achieve the objective.
In the case of SweDigi, it is observed that the employees did not able to understand the
changes which is introduced by Jan. the company fails in achieving the competitive
advantage due to lack of communication in the organisation. In this case, Jan announced the
change but the employees did not understand and produced the good by using the existing
techniques. The employees did not change the process which is the main reason failing the
organisation in the market. Due to lack of communication, the manager of the company is not
able to maintain the strong relation with the employees which increases the chances of frauds.
The manager has to maintain the relation with the employees so that the employees feel free
to communicate with the manager and tells the whole information.
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STRATEGIC MANAGEMENT 6
Short and medium term process
Medium Term
The company has to follow the eight steps for the development of new product in the market
and these are given below:
Idea Generation
The first step of this process is the idea generation which refers that the company has to
analyse the product before introducing the environment. As per the case study, Jan also has to
analyse the product in the market in terms of its unique features, qualities and services as
compare to its substitute products. The company has to evaluate the product as compare to
the others so that they can produce the unique products. The company has to spend on the
research and development department to analyse the trends of the market. The idea of te
product should be new which is required by the consumers so that the large number pf
consumers attracts towards the products and services (Demand Matric, 2018).
Idea screening
Idea Screening is the second step of the process in which it is ensure that the company should
analysed the idea of new product. It is the responsibility of the committee to analyse the idea
of new products. The committee has the right to select the goods ideas and reject the bad
ideas. As per the case study, Committee of the company has the responsibility to analyse the
plant and machinery of the company for the production of the product. The committee should
ensure the new techniques which are used to develop the new product in the market. The
committee has the right to stop the company to use the new machines and plant if those are
not effective (Hoque, Awang, Jusoff, Salleh, & Muda, 2017).
Concept testing
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STRATEGIC MANAGEMENT 7
After screening the idea of the producing the new product; the company has to be analyse the
concept. Concept of the product should be based on the demand of the consumers towards the
goods and services. The consumers are more attracted towards the new and unique concepts
which help them and make their work easy. Jan also has to analyse the concept as per the
consumer demand before producing the goods. In this test, the company can provide a sample
to the consumers and then analyse their reaction towards the goods and services. After that
the company can produce the product by using the new techniques with the same concept
(Wowak, Craighead, Ketchen Jr, & Hult, 2016).
Business Analysis
Profit is the main aim of the company to introduce the new product in the market. The
company has to analyse the product on the commercially basis. The company has to evaluate
the product in the terms of high profit by comparing it with the other products profitability.
The production cost of the product has been evaluated to analyse the profitability. The cost of
production helps the company to set the selling prices of the product. Jan also has to analyse
the competitors selling price to sell the product in the market.
Product development
It has been seen that a product is produced by putting the efforts of the every department. It is
the responsibility of the every department to set the plan to perform their own roles in the
production of a product. Production department has to make their own plans to set for the
production. Financial department has the responsibility to make a budget and provide the
whole information to the other departments so that they can perform their function as per the
plan. Marketing department has to make the plan to promote the product to increases the sale
(Moriarty, et al., 2014).
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STRATEGIC MANAGEMENT 8
Test Marketing
It is also an essential step which helps the company to analyse the consumer reaction towards
the product. The company has to produce the product in small quantity to analyse the
consumer reaction towards the product. The company can provide the services to the
consumers as free samples then analyse their reaction and takes the recommendation. Jan has
an opportunity to re-produce the product with the changes as per the recommendation in bulk
quantity.
Commercialisation
Jan has to invest in the marketing department to aware the customer towards the goods and
services. Jan has to promote the product on the large scale so that they reached at the large
number of consumers.
Review of market performance
Jan has to take the feedback from the consumers by using the different sources and
techniques. The company can use the digital media to promote the product in the market thus;
they can also use the digital media to get the feedback from the customers (Maslennikov, &
Kalinina, 2015). The company can analyse the review of the consumers from their own
websites to check the consumer’s reactions towards the services. It is necessary for the
company to continuously evaluate their efficiency by analysing the customer feedback.
Short Term
Forecasting
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STRATEGIC MANAGEMENT 9
It is the responsibility of a manager to forecast the past and current position of the company
related to the product. In the process of forecasting, the strength and weakness of the
company is to be analysed so that it is easy to develop the strategies to boast the sale of the
product. This process of forecasting also helps the company in improving the strength and
utilising them as the strategy. It also helps to improve the weakness of the company in
promoting the product (Kumar, Luthra, Govindan, Kumar, & Haleem, 2016).
Production Equipment
The production equipment is major factor which helps the company in improving the quality
of product. Jan has to ensure about the product equipment to provide the quality of services to
the consumers. Excellence quality of product helps the company in attracting the large
number of consumers towards the product. Jan has to ensure about the new machines and
plants for the production of new product (Hakansson, 2015).
Address issue
Jan has to analyse the weaknesses of the company due to which the company fails in meeting
the objective. It is essential for the company to take care about the services and reasons due to
which the company faces the issues. In this case, employee turnover, conflicts are the main
issues due to which the company fails to achieve the objective (Kotter, 2007). After
analysing the issue; Jan has to address those issues to improve the quality of services. Jan has
to satisfy the employee needs by listen the point of every employee. The issue of the
company will reduces by satisfying the needs of employees. Satisfying the employees needs
and demands encourage them to do the work with the high quality. Addressing issues is a
best technique to improve the quality of product (Hill, Jones, & Schilling, 2014). .
Training
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Training is essential for every company to provide the quality of services to the customer. Jan
has to provide the training to the employees for using the new machines so that the quality of
product is improved.
Marketing
Jan has to promote the product at the large scale to attract the large number of customer
towards the services of the company. Television, radio and the other sources of promoting the
goods and services helps to attract the customers and boast the sale of the product (Cortese,
2015).
Leadership Style
Democratic Leadership
This leadership style states that a leader takes the decision by taking care of each member
(Saleem, 2015). In this case, Jan faced the issue of different opinion of the employees
towards the particular task. By using this leadership style, Jan has the responsibility to listen
the point of view every employees so that they can encourage to participating in the meetings.
This leadership style motivates the employees to give their best towards the work
(Amanchukwu, Stanley, & Ololube, 2015).
Transactional Leadership
Transactional Leadership style states that the leader has to appreciate the employees for their
work by providing rewards and awards. It has been seen that the Jan has to adopt this
leadership style to encourage the employees to give their best in their jobs. It has been seen
that the employees did not perform well and using the old machines for the new product
(Latyshev, & Akhmetshin, 2015). But using this leadership style attracts the employees to
perform well in the organisation. Jan has to provide monetary rewards to promote the
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STRATEGIC MANAGEMENT 11
employees towards their work and achieve the success in the market (Fairhurst, and
Connaughton, 2014).
Laissez-Faire Leadership
This leadership style states that the leader has to trust their employees and allocate them the
responsibilities above their positions. This technique develops the employee’s personality and
encourages them to handle the critical situations of the company (Marion, Eddleston, Friar, &
Deeds, 2015). Jan also has to adopt this leadership style so the issue of employee turnover is
reduces. The employees have the good opportunity to develop their skills which helps them
in future. It encourages them to stay in the organisation and give their best in their roles and
responsibilities (Intense Minimalism, 2015).
Recommendations
ADKAR Model
ADKAR Model is a goal oriented change management model that helps the company to
guide the individual and organisational changes. It contains the five tangible and concrete
outcomes that organisation needs to achieve the lasting change such as awareness, desire,
reinforcement, ability and knowledge. Jan has to adopt this model to resolve the issue of the
company. This is an effective tool which is used by the companies at the time of change
management (Prosci, 2018). Jan also has to adopt so that the issue faced by them is reduces
and he can easily achieve the objective. As per the model, it is essential that the senior and
junior manager and staffs have the knowledge about the changes of the company. The
information helps the employees to stable in the organisation as per the changes. It is also use
in the planning of change management activities, supporting the employees throughout the
change process. It is essential to set the plan for the process of change management to
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