In this report I would lake to analyses the changes in the external environment which FIRST Choice has faced since it was founded .The report will analyze of social, technological, economic, political and legal factors which that affected the way FIRST choice plc .Secondly it reports the current relationship between FIRST Choice and the environment by using a SWOT analyses .Next the report will Prepare a set of guidelines to the management of FIRST Choice could use on how to conduct a SWOT it the report would also discuss the concept (Shared Values and Assumptions) with example of each one and explain the deal & Kennedy model of culture and give some items on how FIRST used those concept an alternative culture that could be used in the FIRST choice plc. Next the report would be explaining the type of culture you identified in part (e) above, assess the relationship between organizational culture and organizational behavior in FIRST Choice.
A) Political Factors:
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The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. We must consider issues such as: how stable is the political environment, will government policy influence laws that regulate or tax your business, what is the government's position on marketing ethics, what is the government's policy on the economy, does the government have a view on culture and religion and finally is the government involved in trading agreements such as EU, NAFA, ASEAN or other. For example First has to anticipated and prepared to meet future legal changes .From 2010,as part of an initiative in order to meet future changes and on apart of an initiative called Carbon Reduction Commitment ,will permit CO, s to generally .there create special quantities of C.C ,FIRST and other companies will need to buy carbon credits and legal changes that affect business are closely tied up with political ones
B) Economic Factors:
Marketers need to consider the state of a trading economy in the short and long -terms. This is especially true when planning for international marketing. We need to look at: interest rates, the level of inflation Employment level per capita and long -term prospects for the economy Gross Domestic Product (GDP) per capita, and so on. For example transport services are at the United Kingdom (UK) economy-moving people to work, home and school, and goods to douse holds and businesses. In the 1980s, the government started to privatize bus services in the UK .It believed that allowing private firms to compete to run bus services would keep prices low and ensure companies would try harder to give customers what they wanted.
C) Social Factors:
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factor include: what is the dominant religion, what are attitudes to foreign products and services, does language impact upon the diffusion of products onto markets, how much time do consumers have for leisure, what are the roles of means women within society etc .For example Environmental impacts, such as those caused by carbon dioxide (CO2) emissions or the management of waste, as apart of social respect sense of belongingness towards the organization. Are of particular concern to businesses like FIRST.
D) Technological Factors:
Technology is vital for competitive advantage, and is major driver of globalization. Consider the following points: does technology allow for products and services to be made more cheaply and to a better standard of quality, do the technologies offer consumers and businesses more innovative products and services such as internet banking, new generation mobile, etc .and How is distribution changed by new first is also very keen to introduce new technological changes in the function , technologies e.g. books via the internet, flight tickets , auctions ,etc .For example Vehicle safety features include padded seating ,integrated seat belts, additional escape hatches and CCTV.FIRST is working with the government via a specially appointed Yellow School Bus commission to investigate the possibility of rolling out specialized yellow school bus services throughout the UK.
E) Legal factors:
Include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.
Always on Time
Marked to Standard
The legal a agreement - the Kyoto protocol signed by the government in an initiative to reduce CO2 emissions, is a legal factor affecting the business.
The strength could be your specialist marketing expertise, a new innovative product or service, location of your business, quality processes and procedures and any other aspect of your business that adds value to your product or service. By aiming for the top in everything we do and helping each other we can deliver the highest levels of safety and service and give greater customer and employee satisfaction and we can seed they have developed strict operating practices based on the latest industry standards, which they adhere to and regularly review. .
A weakness in FIRST choice plc they aims for the top in every thing they do for the highest level of safety and service in general greater customers satisfaction and employee satisfaction this can be healed as a major strengths for the company. it could be lack of marketing expertise, undifferentiated products or services (i.e. in relation to your competitors), location of your business, poor quality goods or services and damaged reputation. For example from SWOT. For example from case study FIRST has to anticipate and prepare to meet future legal changes .From 2010, as part of an initiative called Carbon Reduction Commitment .FIRST and other companies will need to buy carbon credits.
An opportunity could be a developing market such as the Internet, mergers, joint ventures or strategic alliances, moving into new market segments that offer improved profits, a new international market and finally it could be a market vacated by an ineffective competitor. For example from the SWOT analysis Opportunities to take over , merge with , or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater Chine Region. For example from case study FIRST aims to reduce it's CO2 emission by 25% for it's bus division and 20% for rail, both by 2020.Another factor affecting First's business is taxation and some changes may have a major impact on business like the number of older people in the UK is rising, by aiming for the top in everything we do and helping each other we can deliver the highest levels of safety and service and give greater customer and employee satisfaction.
A threat could be anew competitor in your home market, price wars with competitors, a competitor has anew, innovative product or service, competitors have superior access to channels of distribution and finally it could be taxation is introduced on your product or service. For example from SWOT analysis a threat being number one means that you are the target of competition, locally and globally. For example from case study No major found by the company but we shall be serous in handling competitions and we have be looking the change of customer tastes for preferences, Another factor affecting First's business is taxation and some changes may have a major impact on business like the number of older people in the UK is rising, by aiming for the top in everything we do and helping each other we can deliver the highest levels of safety and service and give greater customer and employee satisfaction.
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business project.
Strengths and Weaknesses are internal to an organization and are attributes that measure your internal capability.
Opportunities and Threats originate from outside the organization and refer to how the external environment affects your business.
During a SWOT analysis the FIRST choice plc would look into these aspects.
Strengths: The strength of the business over the other competitors in the market that would help the business to grow and sustain in the long run, which may include specialist marketing expertise, innovation that can be incorporated, business locations, quality of the standard procedures, etc.
Define areas you excel in, such as the company's core competency and resource analysis:
- What does your company do well, How strong is your company in the market, Does your company have a dear strategic direction and Does your company's culture produce a positive work environment?
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Weaknesses: Any weak areas that would hinder the development of the business would be considered as weakness for the business. In the case of FIRST, inability to operate any specific type of buses, inability to compete with the competitors due to improper planning and structuring, etc.
Evaluate your liabilities
- What could be improved at your company, what does your company do poorly, what should be avoided, is your company unable to finance needed technology and Do you have poor debt or cash flow?
Opportunities: The rules and regulations laid by the government can be used as an opportunity for the business development. Also the need of the public in the future can be well assessed in the present and possible business development can be thought of to enhance the business in the future. Increase safety concern of passengers, parents, high cost of maintaining personal vehicles, etc can be converted as opportunities for FIRST. Also moving into a different segment of the market or even into the international market could also bring opportunities for FIRST.
Analyze your customers and market attractiveness:
-What favorable circumstances are you facing, what are the interesting trends, is your company positioned to take on those trends, is your company entering new markets and is your company advanced in technology?
Threats: This include feature hinders that could affect the business. Future government rules could be a factor to be worried off; becoming number one in the market will attract more competitors both locally and globally; also high cost for fuel in the long run.
Check out what your competitors are doing and access other potential challenges
- What obstacles do you face, What is your competition doing , Are the required specifications for your products or services changing, Is changing technology threatening your position , What policies are local and federal lawmakers backing and Do they affect your industry?
Organizational culture can loosely be defined as the shared assumptions ,beliefs ,and "normal behaviors"(norms) of a group .these are powerful influences on the way people live and act, and they define what is "normal" and how to sanction those who are not "normal". For example from case study we have a portfolio of schemes that recognize our employee's commitment to the company.
a) Shared Values:
implicit fundamental beliefs, concepts, and principles that underlie the culture of an organization, and which guide decisions and behavior of its employees, management, and members.
Exposed values are those which are developed within a group when decisions are made by the groups and found to succeed. For example from case study we have a portfolio of schemes that recognize our employees' commitment to the company. And if you want to give example of the relationship with value you can seed it the focus in on making decisions that improve customer service. The team is central to delivering good customer service.
Accepted cause and effect relationships, or estimates of the existence of a fact from the known existence of other fact(s). Although useful in providing basis for action and in creating 'what if' scenarios to simulate different realities or possible situations, assumptions are dangerous when accepted as reality without thorough examination. See also critical thinking and thumb. Assumptions are those unconscious, taken for granted beliefs, perceptions, thoughts, underlying shared convictions that guide behavior and are the ultimate sources of value and action. For example from case study the focus is on making decisions that improve customer service and when employees are empowered to make decisions, this improves their sense of worth and self-esteem. It also helps them to use creative skills within their role and motivates them to perform better .for example of responding to demand is in the provision of high quality Yellow School Bus transport. market research showed that parents and students wanted safer buses ,so FIRST designed special pilot services with the student in mind ,based on the lessons learned from US operations .vehicle safety features include padded seating, integrated seat belts, additional escape hatches and CCTV.
a) Feed back & Reward:
How quickly are feedback and rewards provided (through which the people are told they are doing a good or bad job) ,quick feedback means an instant response. This could be in monetary terms, but could also be seen in other ways, such as the impact of a great save in a soccer match .For example from case study both personal and business events are celebrated in the firm with great enthusiasm .respecting high family values, all employees are given the day off for their birthday .family picnic tours are held, should where you work family days are held each year, and festivals such as Christmas and Easter are celebrated throughout the organization .Employees partners are invested to the staff Christmas celebrations ,where a thoughtful exchange of gifts the family culture.
Risk as represents the degree of uncertainty in the organization's activities. And you can seed it is the level of risk taking (degree of uncertainty). For example from case study in 2007, FIRST set out its Climate Change Strategy. The strategy sets targets to reduce CO2 emissions in the short and long term along with plans to achieve these targets. The strategy identified some of the risk of climate change. These included the vulnerability of road and rail infrastructure to flooding and storm surges along the cost. It identified ways of managing these risks, for example, by working with transport network providers to monitor and monitor roads and rail.
Way You Work Hard and play Hard:
Feedback and reward
Tough- guy macho
The organizational culture used in FIRST is based on 'Deal and Kennedy's Model of Culture'. This model is based on how quickly the organization receives feedback and reward after they have done something and the level of risk that they take. FIRST has focus on the decision making which improve customer services. In FIRSTS everyone has opportunities to contribute their own ideas. When employees are given freedom to take decisions, their morale is improved and creative skills are enhanced.
Importance is given for both personal and business events. This allows the organizational elements to realize the shared value of their personal. This clearly states the organizational cultural model of FIRST is "Deal and Kennedy's Model of Culture".Â
Work-hard, play-hard culture
This has rapid feedback/reward and low risk, leading to:
Stress coming from quantity of work rather than uncertainty.
High-speed action leading to high-speed recreation.
E.g. Restaurants, software companies.
According to Deal and Kennedy culture , there are four major types of culture .first is already running with the 1 st type a work hard , play hard culture. According to the culture, the characteristics are Rapid and Feedback & reward as low Risk.
Every FIRST employee has a responsibility for safety .they have developed strict operating practices based on the latest industry standards, which they adhere to and regularly review, at FIRST ,they aim to deliver the perfect journey by offering personalized service in simple , distinctive, accessible way, by training each other as equals and dealing with situations in an honest and professional manner, they will gain the respect of customer and colleagues, Forward thinking , innovative an possessing a can do attitude are qualities they value in their employees.
Feedback and reward
Is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs of organizational members and behavior. You can tell the culture of an organization by looking at the arrangement of furniture, what they brag about, what members wear, etcâ€¦
Can be affected by corporate culture, leadership, and management style. Organization behavior emerged as a distinct specialty from organization theory in the late 1950s and early 1960s through attempts to integrate different perspectives on human and management problems and develop an understanding of behavioral dynamics within organizations.
Every FIRST employee has a responsibility for safety .they have developed strict operating practices based on the latest industry standards, which they adhere to and regularly review, at FIRST ,they aim to deliver the perfect journey by offering personalized service in simple , distinctive, accessible way, by training each other as equals and dealing with situations in an honest and professional manner, they will gain the respect of customer and colleagues, Forward thinking , innovative an possessing a can do attitude are qualities they value in their employees.Â
Seeing that FIRST is a culture that has low risks, I chose the process culture to be the other option for first.
- Stress might be caused by internal politics and stupidity of the system since stress is low, work is slow in a comfortable and secured environment.
-Â Growth of government system in addition of more traditions of maintaining the status quo.
-Â An organization where there is little or no feedback is using the process culture. Members of this culture wonder how things are done rather how it to be achieved is. This situation is often controlled by the government. Example of process culture organizations: Banks, Insurance companies.
Tough-guy macho culture
This has rapid feedback/reward and high risk, leading to:
Stress coming from high risk and potential loss/gain of reward.
Focus on the present rather than the longer-term future.
E.g. police, surgeons, sports.
*If we chose the tough guy macho culture the Feedback and Reward become Rapid and the Risk as High.
Feedback and reward
Tough-guy macho culture
This has rapid feedback/reward and high risk, leading to:
Stress coming from high risk and potential loss/gain of reward.
Focus on the present rather than the longer-term future.
E.g. police, surgeons, sports.
*If we chose the tough guy macho culture the Feedback and Reward become Rapid and the Risk as High.
In this report which was about FIRST choice plc I first conducted PESTL factors which affected the organization, after that I used the SWOT analysis to analyze the current relationship between first and the environment, then I prepared a set of guidelines that FIRST management could use help of to conduct a SWOT analysis followed by I explained the organization culture in terms of shared values & taken for granted assumptions within FIRST. Afterwards I went on explaining the recognized type of culture FIRST is using ,next I assessed the relationship between organizational behavior and culture in FIRST using the point I previously explained, finally I assumed to what extend will the management approach in FIRST used a different culture.
There are four strategies which organization may adopt:
Strategy - Differentiation: This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. This strategy is usually associated with charging a premium price for the product - often to reflect the higher production costs and extra value-added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products.
Strategy - Cost Leadership: With this strategy, the objective is to become the lowest-cost producer in the industry. Many (perhaps all) market segments in the industry are supplied with the emphasis placed minimizing costs. If the achieved selling price can at least equal (or near) the average for the market, then the lowest-cost producer will (in theory) enjoy the best profits. This strategy is usually associated with large-scale businesses offering "standard" products with relatively little differentiation that are perfectly acceptable to the majority of customers. Occasionally, a low-cost leader will also discount its product to maximize sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its market share.
Strategy - Differentiation Focus: In the differentiation focus strategy, a business aims to differentiate within just one or a small number of target market segments. The special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers. The important issue for any business adopting this strategy is to ensure that customers really do have different needs and wants - in other words that there is a valid basis for differentiation - and that existing competitor products are not meeting those needs and wants.
Strategy - Cost Focus: Here a business seeks a lower-cost advantage in just on or a small number of market segments. The product will be basic - perhaps a similar product to the higher-priced and featured market leader, but acceptable to sufficient consumers. Such products are often called.
Overall Cost Leadership First may adopt: is to reduce the price, it can increase the customers, and the customers are the leadership. Because of the high competition, First reduce the price to attract new customer or substitute products
Differentiation if First choice may adopt this strategy: First tries to increase the customer loyalty by providing services that they need and also there are large numbers of competitors, so First has to differentiate it's self and maintain its customers.
Cost Focus if First may adopt this strategy: focusing on Niche market. Focusing on cost, where it is important to attract new customer.
Niche Market : is the subset of the market on which a specific product is focusing on; Therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.
Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographics audience, Nevertheless, the final product quality (low or high) is not dependant on the price elasticity of demand though, it is more associated with the specific needs that the product is aimed at satisfy.
Differentiation Focus if First choice may adopt this strategy: focusing on Niche Market which the explanation is above. It also focuses on green consumers who wanted to use the environment friendly service and their needs. So First did bring some new changes like new legislation, the reduction of CO2 the environmental impacts.
Because of the number of green consumers are increasing First wanted to differentiate its self in order to gain its environmental friendly customers, so First improved the fuel efficiency of its vehicles like using alternative fuels such us bio-diesel, operational improvements through driver training and new technology to monitor driver performance. Also First differentiating it self by providing vast range of transport services, provide customer services, trying to reduce carbon emission and focus on green consumers.
Environmentally friendly (also eco-friendly, nature friendly, and green) are synonyms used to refer to goods and services considered to inflict minimal or no harm on the environment to make consumers aware, environmentally friendly goods and services often are marked with eco- labels.
First has produced a Climate Change Strategy because this strategy provides a lot of services which includes transport service which first is trying to reduce CO2 emission to the minimum. Like First is encouraging the children to use bus services rather than using car to go to the school. Also First aim is to change peoples mind about the public transport, so First did its best to deliver the highest level of safety and satisfy the customers.
First wanted to differentiate its self by focusing on green consumers who would like to use environmental friendly service, which first is providing this service. First is the pioneer among the competitors who used environment friendly service. Climate Change Strategy is like Differentiate Focus Strategy, it is narrow competitive scope and focus on high cost competitive.
Business Strategy and Strategy Choice:
Strategy of Business position and understanding the important external factor that may influence that position. The process of strategic analysis can be assisted by a number of tools including. Strategy of Business embodies an organizations long term objectives
This process involves understanding the nature of stakeholder expectations the ground rules, identifying strategic options, and then evaluating and selecting strategic options.
Using the Differentiate Focus Strategy is going to benefit first: like satisfying the stake holder's expectations by supplying the government rules which is reducing of CO2. Now days customers are contuse about environment friendly services and they have a choice to choose the environmental friendly service which First is providing it. Customers will be able to benefit from First transport so this means that they will be using the service and being loyal to First.
First differentiating it self because of high competitors and new entries in the market, so First is trying to make loyal customers.
Cost leadership strategy
Focus Strategy (Low Cost)
This generic strategy calls for being the low cost producer in an industry for given level of quality. The firm sells its product either at average industry prices to gain market shares. The firm can maintain some profitability where the competition suffers losses. Even without a price war, as the industry matures and price decline, the firms that can produce more cheaply will remain profitable for a longer period of them. The cost leader ship usually targets a broad market. Some of the ways that firms a acquire cost advantages are by improving process efficiencies, gaining unique access to a large source of the lower cost materials making optimal outsourcing or a voiding some costs al together. If competing firms are unable to lower their costs by a similar a mount, the firm may be able to sustain a competitive advantage based on cost leadership. The risk includes imitation by competitors and changes in customer taste.
It concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage of differentiation. The needs of the group can be better serviced by focusing entirely on it. A firm using a focus strategy often enjoys a high degree of customer loyalty and this entrenched loyalty discourages other firm from competing directly, because of their narrow market focus, firms pursuing a focus strategy have a lower volumes and therefore less bargaining power with their suppliers.
The risks include imitation and enhances in the target segment. Further more, it may be fairly easy for a broad market cost leadership its product in order to compete directly. Finally other focuses may be able to crave out sub segments that they can serve even well
Ability to cut price in relation deters potential entrants
Focusing develops core competencies that can act as an entry barrier
Ability to offer lower price to power buyer
Large buyers have less power to negotiate because of few alternatives
Better insulated from powerful suppliers
Suppliers have power because of low values but a differentiation
Firm is better able to pass on supplier price increases
Can use low price to defend against substitutes
Specialized product and core competency protect against substitutes
Better able to compete on price
Rivals cannot meet differentiation focused customer needsAnswer D:
The planning team deliberates in creating four lists:
1. Internal Strengths
2. Internal Weaknesses
3. External Opportunities
4. External Threats
Internal strengths are those characteristics of the company which place it, or can place it, at a significant competitive advantage. Internal weaknesses, on the other hand, are characteristics of the company which place it at a significant disadvantage.
External opportunities are those factors, independent of management's control, which may be seized to the company's advantage. External threats, again independent of the control, threaten effective management with harm.
First and foremost, the planning team must recognize that strategic planning is a time consuming and continuous process based an executive planning team's ability to assess their company's ability to develop according to the environment in which it operators.
Second, effectively communicating the strategic plan improves employee motivation. Communication of a strategic plan within the company stimulates positive employee response.
Third, strategic planning enhances managerial skills. Thus, it offers managers and subordinates an opportunity to broaden their viewpoint and grow with the organization.
Fourth, which just may be strategic planning's most significant contribution lies in its redirection of management's attention from tasks to opportunities.
- There are important factors FIRST should consider before changing its strategy, these factors are:
Social attitude towards Green consumers. Whether there is a big number of green consumers. The number of people who will be willing to use the public transport service.
Government initiative and expectation, the government is encouraging FIRST to reduce the emission of harmful gas in the air. They should know if the government is really supporting FIRST to reduce the carbon.
Improve the fuel efficiency of it vehicles.
They should identify of the climate change and also identify the ways of managing those risks.
Reduce the resistance from drivers as the drivers would have to undergo training
Responding to the change in demand from customers preparing the employees within the organization for any new change whether technologically or environmentally.
There are lots of competitors in transport market and First is trying to be the pioneer in it. Now day's customers are aware about the environment and they want to be apart to save the environment. First was focusing on this thing so First is trying to reduce the CO2 with the help of the government. Because first wanted to reduce the number of competitors, you know as very few competitors would be focusing on environment friendly services. So this strategy did reduce the number of competitors.
Key issues of choice:
While managing a business, there are key issues that should be taken care of:
They should first think of how they will manage if they got any climate change and what risk will they be facing and how to manage it.
They should also keep in mind that drivers will need to have special training; they should reduce reduction and resistance
They should keep on budgeting for carbon credit due to carbon reduction commitments
FIRST has to improve the fuel efficiency of its vehicles
They need to start thinking of how to purchase vehicles with greater fuel efficiency.
Force Field Analysis is a simple but powerful technique for building an understanding of the forces that will drive and resist a proposed change. It consists of a two column form, with driving forces listed in the first column, and restraining forces in the second.
To carry out a force field analysis, follow these steps:
Describe your plan or proposal for change in the middle.
List all forces for change in one column, and all forces against change in another column.
Assign a score to each force, from 1 (weak) to 5 (strong).
For example, imagine that you are a manager deciding whether to install new manufacturing equipment in your factory.
Dramatic change is indicated for business sometimes just simply to stay in business. Change is the most difficult thing that any organization goes through. Change is required for any organization, if they wanted to stay in market, and every employee in every section should know about it and do their job as required. the change doesn't come from its self ,the employees n managers should work together to face the difficulties, its every bodies responsibility, if they see something wrong, they should fix it or at least try to fix it. Every employee should know how to reach its objective, like coming up with new ideas, how to increase the profit, reduce cost and improve quality. Every employee is aware about the benefits that they will get after change, so they will work harder to get the change, as they are motivated. Planning for change is very important for every body in the company.
Once you have carried out an analysis, you can decide whether your project is viable. In the example above, you might initially question whether it is worth going ahead with the plan.
Where you have already decided to carry out a project, Force Field Analysis can help you to work out how to improve its probability of success. Here you have two choices:
To reduce the strength of the forces opposing a project, or
To increase the forces pushing a project
Often the most elegant solution is the first: just trying to force change through may cause its own problems. People can be uncooperative if change is forced on them.
Stakeholders are the people who matter to a system. Stakeholder power analysis is a tool which helps understanding of how people affect policies and institutions, and how policies and institutions affect people.
It is particularly useful in identifying the winners and losers and in highlighting the challenges that need to be faced to change behavior, develop capabilities and tackle inequalities Like other tools, the usefulness and strength of stakeholder power analysis depends on the way it is used. It can be carried out by individual analysts, multi-stakeholder processes, or some intermediate between these two ends of the spectrum.
Stakeholder power analysis can be used progressively to empower important but marginalized groups, and to improve policies and institutions. But it should be recognized that the techniques can also be used more cynically by some - to work out who should be manipulated, undermined or disposed of. Progressive users should be aware that the cynics may be ahead of the game, and encourage all involved to be clear about their purpose, intentions and desired outcomes. First has tow stakeholders, they are, government and the customers. First provide buses for local student and for elderly people, First believes that providing local services will enhance the quality of the service and make loyal customers..
customer is the most important stakeholder, customer now are turning to green, so First is providing some services that no other competitor did, First is providing environment friendly service, which is reducing the CO2 emission. The study of stakeholders should not be limited to a description of the way in which the organization impacts upon the stakeholders. In the context of strategy, what is more important is the power and influence that a stakeholder has over the organization and its objectives.
Current and future strategies of the organization are affected by:
External pressure from the market place, including competitors, customers, suppliers, shareholders, pressure groups threatening a boycott, the government (through taxation and spending).
Internal pressures from existing commitments, managers, employees and their trade unions.
The personal ethical and moral perspectives of senior managers
Assessments are tools used by a change management team or project leader to assess the organization's readiness to change. Readiness assessments can include organizational assessments, culture and history assessments, employee assessments, sponsor assessments and change assessments. Each tool provides the project team with insights into the challenges and opportunities they may face during the change process.
Communication and communication planning
The first step in managing change is building awareness around the need for change and creating a desire among employees. Therefore, initial communications are typically designed to create awareness around the business reasons for change and the risk of not changing. Likewise, at each step in the process, communications should be designed to share the right messages at the right time.
Communication planning, therefore, begins with a careful analysis of the audiences, key messages and the timing for those messages. The change management team or project leaders must design a communication plan that addresses the needs of front-line employees, supervisors and executives. Each audience has particular needs for information based on their role in the implementation of the change.
If First want to meet the expectation of the customers and government, it should have a very strong communication with one another. A better communication in an organization reduce conflict in the business
Coaching and manager training for change management
Supervisors will play a key role in managing change. Ultimately, the direct supervisor has more influence over an employee's motivation to change than any other person at work. Unfortunately, supervisors as a group can be the most difficult to convince of the need for change and can be a source of resistance. It is vital for the change management team and executive sponsors to gain the support of supervisors and to build change leadership. Individual change management activities should be used to help these supervisors through the change process.
Training and training development
Training is the cornerstone for building knowledge about the change and the required skills. Project team members will develop training requirements based on the skills, knowledge and behaviors necessary to implement the change. These training requirements will be the starting point for the training group or the project team to develop training programs.
FIRST should keep on training not only their drivers but the people who are working in the business, therefore they will be prepared for any change, the drivers have the most important role in the organization therefore they should make sure they have the best qualities to do the job.Â
Resistance from employees and managers is normal. Persistent resistance, however, can threaten a project. The change management team needs to identify, understand and manage resistance throughout the organization. Resistance management is the processes and tools used by managers and executives with the support of the project team to manage employee resistance.
Model of change developed by Lewin described change as a three-stage process. The first stage he called "unfreezing". It involved overcoming inertia and dismantling the existing "mind set". Defense mechanisms have to be bypassed. In the second stage the change occurs. This is typically a period of confusion and transition. We are aware that the old ways are being challenged but we do not have a clear picture as to what we are replacing them with yet. The third and final stage he called "freezing". The new mindset is crystallizing and one's comfort level is returning to previous leve
Creation of motivation to Change
This phase of change is built on the theory that human behavior is established by Past observational learning and cultural influences. Change requires adding new forces for change or removal of some of the existing factors that are at play in perpetuating the behavior. This unfreezing process has three sub-processes that relate to a readiness and motivation to change.
Disconfirmation where present conditions lead to dissatisfaction, such as not meeting personal goals. However, the larger the gap between what is believed and what needs to be believed for change to occur, the more likely the new information will be ignored.
Previous beliefs now being seen as invalid creates "survival anxiety." However,
This may not be sufficient to prompt change if learning anxiety is present.
Learning anxiety triggers defensiveness and resistance due to the pain of having to unlearn what had been previously accepted. Three stages occur in response to learning anxiety: denial; scapegoat & passing the buck; and maneuvering &bargaining. It is necessary to move past the possible anxieties for change to progress. This can be accomplished by either having the survival anxiety be greater than the learning anxiety or, preferably, learning anxiety could be reduced.
Adjusting the equilibrium.
Developing new attitudes, beliefs, values and behaviors based on new information. Once the resisting forces have been investigated, understood and minimized, the change can be implemented. Resisting forces are reduced and driving forces increased. Doing so adjusts the position of equilibrium towards the desired balance position.
Practice: There are three main approaches with which change may be implemented:
Rational - Empirical
Change, or OD, is seen as a process of rational persuasion whereby the benefits of the change are logically explained to those who are influenced by it. Normative - Re-educative
This approach also assumes employees are rational individuals, but acknowledges the existence of socio-cultural norms within organizations. It challenges established values, beliefs, attitudes and norms and re-educates employees into the new techniques of working.
Power - Coercive
This method of change involves a process of the imposition of legitimate authority. Feedback may be denied and no alteration to plans may take place as a result of resistance. This approach simply forces through change by authority.
Practice: Methods used by managers and consultants to lead change:
Establishing a sense of urgency.
Forming a powerful leading coalition.
Creating and communicating a vision.
Empowering others to act on the vision.
Planning for and creating short-term wins.
Institutionalizing new approaches.