Zoom's Change Management: Strategy, Leadership, and Long-Term Impact

This report analyzes Zoom's organizational changes in response to external pressures and internal challenges, particularly during the COVID-19 pandemic. It examines the company's strategic and operational shifts, focusing on the impact of security concerns and the rapid increase in user demand. The report includes a PEST/SWOT analysis to identify key drivers of change and evaluates how these changes have affected leadership, individual behavior, and team dynamics within Zoom. Furthermore, it assesses the measures taken to minimize the negative impacts of change and applies relevant change management models. The report concludes with a critical evaluation of the long-term implications of these changes, offering recommendations for effective planning and risk mitigation to ensure Zoom's continued success.

Understanding &
Leading Change
0

Table of Content
Assessment Part 1
1.0 Introduction p
2.0 An overview of the organisation and it’s change processes p
3.0 A PEST/SWOT analysis to be undertaken to identify drivers of change
p
4.1 An evaluation of the drivers and impacts of change and how they have
affected organisational strategy p
4.2 Comparing the impacts of change and the effect they have had upon the
organisation’s strategy and operations p
5.0 Evaluation of how change will have affected leadership, individuals and
team behaviour p
6.0 An evaluation of how the impact of change was minimised and the
application of appropriate models applied to plan for and process change
efficiently p
7.0 Critical evaluation of the long- term implications of change to inform
conclusions and recommendations for minimising affects of change through
effective planning and managing change, including change impact analysis
to identify potential risks of change p
8.0 Conclusion p
References p
1

1.0 Introduction
Zoom video communication is a distributor of video and online messaging services which
runs on a cloud-based end-to-end software platform. Eric Yuan started this firm in 2011 in
California, USA. Throughout the COVID-19 outbreak, this was the most useful aspect and it
was utilized for work from home, corporate meetings, recruitment, online learning and online
TV and web enjoyment. Their mission is to make video chats more secure by reducing
friction. Their vision is that individuals can achieve more due to the video interactions, that
consumers, the business, colleagues and themselves are its worth and that its culture is based
on delivering joy to others. The aim of the report is to measure the effect of large-scale
change on the organization's strategy and operations. Also analyzing how the change would
affect business behaviors and using theory and models, recommend steps that would be
implemented to reduce the negative impact on the firms.
Organizational change relates to a transition in an organization's existing condition with the
goal of improving performance. These changes would involve improving an organization's
procedures and routines, reorganizing its operational structure or making a significant
adjustment in its systems. This means that organizational change aims to increase
productivity in the short term or long term. As a result, the transition should take particular
actions in order to reach specific objectives and aims. To implement the change procedure
and achieve the desired outcome, a defined plan and allocation of resources method are
necessary. External change drivers comprises of political, economic, social and technological
factors over which an enterprise could have little or no control. As the elements are possible
sources of strategic risk, they must be carefully evaluated by organization or researcher.
2.0 An overview of the organisation and it’s change processes
In 2020, the company encountered a lot of issues when executing its
application. The major worry was security, which resulted in a drop in sales and
stock. The company ran into issues as a result of undesirable individuals
collecting video conversations in order to disrupt routine operations and data
leaks. The phenomenon of Zoombombing wherein pranksters enter Zoom
meetings and display pornographic or scary videos. Zoom's standard settings are
to responsible in this case since they do not encourage meeting passwords and
allow any participant to share the screen. For resolving their issues, the
2

organisation has hired multiple number of experts to increase their security and
privacy policies.
Organizational change describes the measures taken by a corporation or firm to
modify a significant aspect of its organisation, such as its culture, core
technology or infrastructure, or internal procedures. Organization design
includes the development of people, processes and structures to ensuring that
the firm's goals are met.
Phase1: The change process begins when senior management recognizes a
desire for transformation from inside the organisation. This is generally the
result of a major crisis, such as a sudden decline in sales, substantial labour
problems, or excessive labour turnover.
Phase2: An external entity is frequently recruited to propose a description of the
issue and begin the procedure of focusing organisational employees on it. If
3

internal staff members are skilled and trustworthy, they could also handle the
change process effectively.
Phase3: The change representative and management begin accumulating and
analysing required data in order to identify and address the most pressing issues.
Phase4: It is necessary for the entity to encourage thinking and prevent
employing the same old tactics. Alternatives are found through generating fresh
and viable possibilities in a creative manner. When colleagues are enabled to
engage in the process, they acquire a sense of participation and are much more
certain to be devoted to the ultimate plan of action.
Phase5: Phase 4 alternatives are often tested on a limited scale and the
outcomes are analysed. If the approach is effective in one unit or a subset of a
unit, it may be implemented throughout the enterprise.
Phase6: When the plan of action is considered appropriate, it must be embraced
freely by people in the organization. Performance improvement can serve as a
source of reinforcement, resulting in a dedication to the change.
3.0 A PEST/SWOT analysis to be undertaken to identify drivers of
change
PEST analysis
PEST Analysis is a measuring method used to analyse markets for a certain
product or business over a specific time period. PEST Analysis assists
businesses in making improved company decisions and increasing efficiency by
researching different factors that may impact a business, such as political,
economic, social and technological factors. In context to the selected
organisation, PEST analysis is mentioned below:
Political factors: The most crucial political element was the political approach
to nationwide lockdown in the year 2020, when the zoom application
experienced a significant increase in the amount of users and everyday
engagement in zoom sessions. In the social and health constraints that
lead imposed schools, colleges, companies and many people to seek simple and
4

free ways to communicate with their students, workers, teams, or relatives.
Zoom had approximately 10 million daily participants prior to COVID-19.
Within only a few weeks, the amount of users for this virtual solution had risen
to more than 200 million. Several countries, including those in Europe and
North America, seek to drive the need for zoom.
Economic factors: As it does not need the physical presence of teachers, online
education is a more cost-effective alternative to traditional education.
Additionally, because there are no productions or transportation costs to
consider for from copy to copy, suppliers of online education may provide their
course material at relatively low prices while still assuring a solid profit. While
being a more cost-effective long-term alternative to the conventional education,
online education has a somewhat significant initial cost. This is due to the fact
that in need to absorb digital information, every student must have accessibility
to an electronic device. And in advanced nations, there is little of an issue
because many students already own electronic gadgets and can easily purchase
them. The high price of computers and smart phones could be problematic in
underdeveloped nations.
Social factors: The split of work among on-site and teleporting customer
behaviour is one of the social and cultural societal factors that impact zoom.
During the first quarter of 2020, millions of people become customers through
having video meetings, conferences, or sharing moments. Several of these
behaviours remain as they are valued by employees, businesses and family
members that are far distant in the setting of a health crisis. The populace's
mobility and demand for digital are other factors affecting zoom and both are
raising trends in recent years in the framework of COVID-19. Social distancing
and curfew regulations enhanced the need for digital alternatives. Despite being
a very effective method of learning, internet education has the disadvantage of
diminishing personal connection. Students that attend a physical school engage
make eye contact with former classmates, school employees and a variety of
5

other people, including those they meet on their route. The few who learn
underneath an electronic screen miss out on this interpersonal connection that is
certainly essential to social growth and mental wellness. Another factor that
finds it challenging to substitute conventional education for younger kids is the
requirement for physical care. Conventional schools are a simple technique for
parents to ensuring that children are served, exercised and usually provided for
when they are normally out of the house for the most of the working day. Young
kids will be kept at homes for long periods of the day online schooling, which
would have been an unwise option for various reasons.
Technological factors: In terms of technology developments, the main affecting
factors of zoom at the beginning of this spring 2020 Lockdown, enabling two-
way encryption of conversations and their utilisation to digital data overall,
along with video conversations and conferences. This technology was not well
practised by the company and it received horrible criticism. As nearly all
students, particularly in poor nations, have access to technological devices,
students will be impossible to access online learning materials. Electronic
gadgets may be accessible in some situations, but their quality is insufficient to
offer a good learning experience. Another significant technological hurdle to
online education is Internet connectivity. Even if a student possesses a powerful
enough electronic device to receive digital educational materials, students must
still be able to browse those resources over the internet.
SWOT analysis
A SWOT analysis is a list of the corporation's strengths, weaknesses,
opportunities and threats. The fundamental goal of a SWOT analysis is to assist
companies in developing a complete understanding of all the elements
associated in taking a business decision. Internal factors are the corporation's
strengths and weaknesses. Strengths are attributes that provide a firm with a
competitive edge, whereas weaknesses are features that a corporation must
conquer in order to enhance its effectiveness. External factors are the
6

corporation's opportunities and threats. Opportunities are components in the
external environment that the firm recognizes that this could explore in the
future to produce value. Threats are external forces that might restrict the firm
from accomplishing its purpose, mission, or producing value. In context to the
selected, SWOT analysis is mentioned below:
SWOT Analysis
If the current pandemic offers anything good, it is an opportunity for technology
companies like Zoom and Facebook to grow so fast. Video conferencing and
remote control are once again far from the epidemic. In particular, many
employees suggested the possibility of using a remote operating style. That
situation offers the opportunity for significant growth and adoption from zoom
video services to date.
1) Video conferencing has been simplified
Zoom did not develop video conferencing technology, which existed before
2011. Zoom prioritizes user-friendly information. Its advanced technology and
open API platform have been well received by users around the world.
Zoom's biggest strengths are its technology products and services. Although it is
in a new production and development phase, it has established a brand among
industry leaders such as Google, Microsoft and Cisco.
2) Scope of products and services
Zoom has a great product range for video conferencing and webinar solutions. It
attracts individual clients and organizations around the world. Zoom's clean user
interface and third party integration make it an affordable communication tool.
It started with video conferencing and chat features, but has now expanded its
product range to include Internet calls and webinars.
3) International product acceptance and availability
Zoom offers one-on-one video, chat, screen sharing and free calling. It soon
attracted audiences from all over the world. Resource collaboration and sharing
has become an attractive organizational and educational institution. Zoom has a
7

brand name that is currently known for its apparent strength in expanding global
demand. Since last year (before the spread of Covid-19) it has reached over 300
million daily conferences through its network.
II) Zoom. Weaknesses
Zoom in on the open source API and Code Access provides developer
integration and custom access. The interface is easy to use to attract a more
international audience. However, corporate and business consumers have been
critical of the platform over security issues.
1) Lack of encryption
Zoom has been widely criticized for not having encryption on its platform.
Large business, government and sensitive business organizations are reluctant to
use the Zoom video conferencing platform. Although the company has
announced the removal of all communication products, experts still rely on
these claims.
2) Data security concerns
Apart from the obvious lack of encryption feature, another major criticism that
Zoom faces is the security of user data. Critics say that even though both users
are outside of China, one of Zoom's most popular applications went through
"Chinese" servers. Lack of cloud data security for their customers is another
flaw in their most important communication technology.
3) Economic instability
Zoom reported full annual gains after 7 years of operation. For a technology-
based product like Zoom with a global audience, the level of financial stability
is not the same. It received $ 3 million from WebX founder Subra Iyer in the
early years. Zoom 6 received additional investment from multiple funding
rounds worth $ 146 billion. The company reported net profit for the last two
operating years only from the IPO in April 2019. Despite the possibility of
reporting higher profits in the past years, inflation this year has led to the
current crisis.
8

III) Zoom opportunities
Zoom has finally made its mark in the global video conferencing industry. The
pandemic problem has opened new doors for technology companies like Zoom.
1) Requirements to increase video conferencing
Zoom has grown from 10 billion meetings in December 2019 to the current 300
million daily meetings limit. Although the significant increase in styles is
largely dependent on the current issues of COVID 19, consumption is likely to
increase in the coming years as well. Zoom focuses on organizational clients
with 10 or more users. It has already announced future plans to work with
startups and provide customized solutions for corporate customers.
2) Business partnership opportunities
Demand for work from home is likely to increase and this trend is likely to
increase in the coming years. Most businesses require customized
communication requirements for employees and their customers. Zoom
responds with improved API delivery to already optimized SDK and corporate
users. Zoom recently launched the event hosting event "Onzoom". The
education and health sectors will also grow in demand for video chats in the
coming years.
If Zoom can keep up with the pace of competition, it will show steady growth
over the next few years.
ZOOM Threat
Zoom works very fast in the technology industry. Its competitors are industry
leaders such as Microsoft and Google, which have unrestricted jobs around the
world. Making its mark on the industry with the highest quality and sustaining
growth and development is always a challenge for Zoom.
1) Highly competitive market
Competing with global brands like Microsoft, Google and Cisco is not an easy
task for any company. Zoom faces stiff competition from well-established and
international products in the video conferencing industry. The company has
9

recently introduced new products such as cloud-based event products Zoom
Phone and OneZoom. However, market competition remains a major
commercial threat to Zoom.
2) Reliance on third party platform
Product dependence on third-party platform services is one of Zoom's major
issues. The pricing plans offered by Zoom are not the ultimate cost borne by the
end user. The total cost of video communications will result in significant
business losses for the company in the coming years.
3) Intelligence safety concern
Zoom also faces commercial losses due to criticism of its lack of data security.
Government and major corporate users are not always ready to use Zoom
resources. Though the company has introduced its new end-to-end (E2EE)
features, it will take time to restore consumer confidence.
Mention the drivers of change (Session -1)
As more companies move to work remotely during the COVID-19 epidemic,
companies face a new challenge to make greater use of their remote work.
Zoom has become a popular videoconference app and has always been a top
choice for most travel groups and organizations. However, as with any change
in technology, people will find that it causes them a lot of problems. Video
conferencing has proven to be an important part of many corporate social media
and collaborative strategies. Like the Board of Executive Board, the cost of
video conferencing, ease of use, flexibility and feasibility open the door to a
wide variety of new application models to meet the needs of today's dynamic
work environment. Switching to a cloud-based approach to videoconference
solutions is a very important thing. This significantly reduces delivery time,
maintenance efforts and costs for IT departments and end users.
Infrastructure such as software on physical and virtual servers
Implementing business software on physical and virtual servers has been a
common technical solution in the business world for many years. This concept
10

has only been expressed in video conferencing for the past three years, where
the need for complex, fast, and short response times is crucial in providing an
acceptable user experience.
Over the past few years, businesses have increasingly used video conferencing
as an internal tool, enabling communication between their partners over the
same IP network. Video interconnection between companies is, in most cases,
restricted by network security policies that prohibit incoming (and continuous)
IP video calls. IP video traffic can enter or leave corporate networks, among
other issues include backback issues and vendor engagement challenges. So
without much interest in inter-company video, the attempted call will fail. And
because of this, many companies abandon the whole idea. Today, however,
companies have softened their stance on IP video, allowing most outgoing video
traffic to break through the firewall and leave the network. In addition, the
service provider has expanded their offerings to allow companies to stream
more videos in the cloud. And over time, video conferencing has become a
common tool for corporate communications.
Even in the past, things were never the same. Over the years the office computer
has shown that it does not produce more magic than a home computer. It makes
no sense for employees to sit at an office computer for two hours instead of a
home computer. While many have been debating the issue for years, many
employers fear that domestic workers will benefit from a lack of oversight and
not be productive. Last year he threw this long-term idea out the door because
many managers found their employees more productive work from home than
sitting in the office on their own time.
Before the epidemic, the main trend of video conferencing was meeting rooms.
This technology is now adequately maintained and affordable to make available
to more workers. Companies began asking for video production in small spaces
throughout the office, rather than in large conference rooms, because smaller
groups have remote members and require video in the form of room managers.
11