Change “Strategy’ word is using for planning to do something for beneficial future of the organization and making policies of different levels to achieve their goals and objectives. Organizational strategic change refers to the situation where some positive changes are required to work better than before. This situation can happen mostly in two times I. E. Company is newly established and going to design a management structure and working pattern, secondly a company merged in another company, after amalgamation of two or more companies, they may need to make up a new management and operational structure and some changes may be required in order to focusing the previous working environment and techniques of both companies which are amalgamated. There are many models introduced by different legends of management theories, some below mentioned models are famous which are very effective to make a strategic plan in organizational strategic change. 1. John P Cotter’s eight to successful change. 2.
Kјbled-Ross five stages transition (grief) cycle. 3. Proboscis’s five building blocks DAKAR (awareness, desire, knowledge, ability, reinforcements) model. 4. Muckiness’s change management model – unfreeze and refreeze. 5. Burke-Elitist’s casual change model; action research; gap analysis All these five persons have introduced very effective point of view for organizational strategic change. But it is not important that we can implement all these models or elements of a specific model for business strategy of an organization, because every organization has different working pattern, management styles and internal & external working environment.
These models can be used for this purpose but first of all the organization’s implementation authority should focus on their own business environment then they may apply the elements of these models on the business strategy. Focusing on a Auk’s most emerging company “British Petroleum (BP)” British Petroleum is not a newly established company, they amalgamated with US biggest oil company “Amoco” and renamed as “Bamboo” on August 1 1, 1998. But the company emerged in Auk’s oil sector as “BP” in July 2000.
Now BP is the biggest oil company in the UK and third largest oil company in the world. The elements of all above noted models can be used for this company strategic change, but we will prefer to discuss the Proboscis’s five building blocks DAKAR DAKAR elements define itself as:- I. Awareness of the need to change I’. Desire to participate and support the change iii. Knowledge of how to change (and what the change looks like) lb. Ability to implement the change on a day-to-day basis v.
Reinforcement to keep the change in place Awareness refers to change the small BSP network to vast network by amalgamation with another company. The management desires to introduce their company as one f the world’s largest company by availing the opportunity to integrate with the other biggest one I. E. Amoco. Knowledge is refers to understanding the amalgamation process, financial stability of other company, focusing on positive aspects which they can avail after mixing up of both companies. Ability to implement it successfully and Reinforcement to prove that the changing is really beneficial.
Strategic Interventions Strategic interventions refers to the situation where different factors related to teamwork, management style, employees’ development process, human resource management and internal/external business environment are involved for introduce and implement a strategic business plan. It is essential to focus on all these factors to make a strategic plan and get success to achieve the organization’s goals and At the time of demodulating, the management can be faced both agreement and disagreement behavior from the team members to implement on a specific goal.
If there is autocratic management style in the company, they will not face this situation, because in autocratic management style, the management only gives orders and the employees have to abide the order in all circumstances, but if the management style is participative, then they can face it, because they have to invite all concerned staff members to provide their opinions of a specific task.
When the management give a task to some staff members, may be they don’t have sufficient knowledge about the successful completion of the task, therefore the management has to provide the coaching and trainings to the staff members to increase their ability to work. The environment outside the business is also involved in an organizational strategic change plan. The strategic plan can be influenced by the demand and choice of the consumers, government involvement, present market situation, presence of competitors and the economy fluctuation etc.
Therefore at the time of making strategic plan for organizational changes, the focus on the external environment is also important. Understand the issued relating to strategic change in an organization Issues relating to Strategic Change in an Organization When an organization is going to emerge in a market, they have to adopt and plan about many strategic changes in all factors which are directly or indirectly influences he business as per market requirements. Strategic changes for an emerging company can be defined as under:- 1.
Economical Factors Economy of any country is based on the size of population, number of unemployment and market growth. Therefore, the economy is not stable every time, it has fluctuation. For example, when the people are unemployed, the will not have more capacity to fulfill their wants and needs. So the economy will goes down because the economy is based on profitable businesses. At present, Auk’s economy is going down due to a huge number of migrated people from all over the world and he unemployment has also increased due to this reason. I-J weather is mostly rainy. Snow falling is common in the winter season.
A car has become a need now for Auk’s people due to the weather. BP Company is deals with diesel and petrol for vehicles. No doubt there are a huge number of vehicles used by people, so they have to buy the petrol and diesel for their vehicles. The gold and petrol rates are setting up as similarly across the world, therefore this is not possible to sale the BP products on very cheap rates to attract the customers towards them, But as per competition point f view BP has also competitors in the I-J such as Sees, Shell, Texaco, Total as well as the petrol stations of big retailers like Tests, Kingsbury, Morrison and Sad.
BSP management have to focus both on the competitors and present economy at the time of setting up the prices, if it is possible, then can reduce a nominal prices against the prices of their competitors’ products to attract the customers towards their petrol stations. 2. Changes in global markets The Middle East countries have a lot of natural oil resources. Mostly the companies of I-J and all over the world are imports fuel from Middle East Countries. Therefore, the increase and decrease of production and consumption. 3.
Customers expectations Due to the vast competition in every market sector, the customers’ expectations are very high. They required good product quality on reasonable rates. In 2005, BP Company changed their production strategy plan as they launched vehicle fuel’s three separate products I. E. BP Ultimate Unleaded, BP Ultimate Diesel and BP Ultimate 102 Unleaded. Through this products segmentation, BP has introduced very good quality fuel to their customers which reduces the fuel consumption and increases the engine life.
BP Ultimate Unleaded is produced for petrol engine vehicles, BP Ultimate Diesel is for Diesel engine vehicles and BP Ultimate 102 Unleaded is produced especially for sports cars and bikes. 4. Mergers British Petroleum has emerging in UK market with this name in 2000, they have faced the merger stages as the USA fuel company Amoco was merged in BP during 1998 and working with the company name of Bamboo. During the year 2000, Arc Petroleum Company merged in Bamboo and renamed as BP. Before merging and working separately, every company has their own strategic plans.
But after merging, hey are revising their strategic plans which are suitable for both companies’ operational structure. So the BP was also changed their strategic management plans which were suitable to work better in the future. Factors Driving the Change Factors driving the change refer to those factors which are directly involved to create an environment for a company to change their strategic plans. It can be defined as under:- Political factors. These factors are related to the Government. It can influence on a business at the time of changing of the government or changing in the rules and regulations.
Almost every big and international company has influenced by the political factors. For example, if the Government increased the percentage of taxes, the petroleum products prices may also be increased. New markets. When any company is going to start their business in a new market, they have to run their business in that area as per market requirements that how much the competitors they have in new market, what is the customers’ expectations and if the company is dealing with fuel products like BP, then how much is the fuel demand in that area to make sure the availability of fuel stock. Ђ Competitors.
When the new companies are going establish their business in the market, the existing companies may have to revise their operational strategic plans to maintain their stability. It can be happen to increase the efforts through sales promotions and advertisements as the BP launched their fuel products with three types I. E. BP Ultimate Unleaded, BP Ultimate Diesel, and BP Ultimate 102 Unleaded. They reintroduce their products with new televisions, billboards, radio, newspapers etc. Resource Implication Resources implication refers to the strategies to make or change the decisions to achieve the company’s goals and objectives.
There are three types of resources through which a company works smoothly and successfully. Human Resources. Human resources include the elements to utilities their workforce efficiently. It includes the restructuring inside the company that is reformation of departments, number of employees required the specific department, new hiring of related experience staff, provision of trainings to utilize the workforce more efficiently etc. Physical Resources. Physical resources can also be called the fixed and non-current sets of the company such as machinery, building and vehicles.
Sufficient resources and proper utilization of these sources are required by the company to meet the customers demand. Financial Resources. Financial resources have also an important role in company’s stability because the company can be face loss due to the lack of financial resources. It involves the sufficient working capital, the costs incurred on employees trainings, purchasing new buildings, refurbishment of existing buildings, re-locating cost if the company wants to move from existing area to another area etc.