impact of strategy changes
TRANSCRIPT
What is Strategic Change?A strategic change is a type of change where some general plans, policies of the business are changed. These changes are quite common and simple, something that is quite ordinary.
Roles in the changing processThe Main Role in the changing process are:
1. The change agent
2. Middle managers
3. Other organizational members
1. The change AgentThe change agent: ‘is the individual or group that effects strategic change in an organization’.
2. Middle MangersMiddle managers are implementers of strategy and their roles include:
Allocation of resourcesMonitoring performance
and Explaining strategy
3. Other Organizational MembersInfluences will be based on their level of interest and political power.Approaches to managing change will differ from different stakeholders.
Reasons for Strategic ChangeThe main reasons in the strategies changes are:
1. poor outputs
2. less revenue
3. competitors pressure
4. not completely implemented
5. poor feedback
6. more complicated
7. change of environment
8. change in technology
Strategic change processStep one: strategic analysisAnalysis of an organizations external environment, its current strategic orientation, and its objectives and missions.
Step 2: strategy making Begins with the decision to change its vision in the future and includes defining the products to be offered, and specifying the markets to be served.
Step 3: strategic plan design Defines how the change process will be accomplished through sequencing and pacing in light of the prevailing culture.Step four: implementation of the plan Transition to the new orientation, which includes developing budgets, timetables, assigning roles and tasks that will guide the process.
Types of StrategiesThe four types of strategic changes are:
1. Adaptation
2. Reconstruction
3. Evolution
4. Revolution
1. Adaptation:Adaptation is the change which can be accommodated within the current Model and occurs often. It is the most common form of change in organizations.
2. Reconstruction:Reconstruction is the type of change which may be rapid, but which does not fundamentally change the Model. For example, an organization may make major structure changes on a major cost-cutting programme to deal with difficult conditions.
3. Evolution:Evolution can be explained is by conceiving of organizations as 'learning systems', adjusting their strategies as their environment changes.
4. Revolution:Revolution is change which requires rapid and major strategic change, where pressures for change is extreme. For example, if profits decline threats the continued of a firm.
Strategy SelectionThere is no one strategy that fills all situation.Many considerations need to be taken into account, including the degree of change, population of organization and time frame.When stakes are high, a mix of all four strategies is recommended because nothing can be left to change.
Practical Study of Organization
Introduction of UFONEUfone starts its operations in January 2001Have more than 2o million customers.Ufone has network coverage in 10,000 locations and across all major highways of Pakistan.It is one of five mobile companies in Pakistan.After the privatization of PTCL, Ufone is now owned by Etisalat in 2006.
MISSION STATEMENT of UFONE 'To be the best cellular option for u'
The main strategies change by ufone are:Strategy 1...AdvertisementsUfone was the first cellular company who contracted with the advertisement company. Before this strategy change, they have the separate advertisement department. This strategy was change on 2007 and they started advertisement in electronic media by using just background voices and animation. In that period, ufone was just able to attract 50 thousand new customers. And in 2009, they again change their strategy and started casting famous TV actors in it. This strategy change really works for ufone and they get more than five lakh new customers . which increases their profit up to 30% per year.
Strategy 2...Government TaxUfone have to change their strategy of call rates because of the government increases tax every year. The increase in tax rate affects the strategies of the company and they redesign the strategy.In 2011, the government increases tax about 1.11 %, due to this ufone, profit decreases up to 5%. They introduce the new low budget packages for their customers. The change in strategy gives vital benefits and they overcome from their loss.
Strategy 3...joint promotional strategy
Ufone joins hand with the Motorola Company in 2004 for a joint promotional that did not give desired profit to both parties but later in 2007, they change their strategy and joins hands with Nokia and blackberry Company. This provides the great amount of profit to them. And in the same way on 2006, they contracted with NBP for online bill paying for postpay customers. Which later ended in 2008 and they started online billing through UBL under the service name of UPAYMENT.
Strategy 4...Helpline Ufone starts there helpline service free of cost. But later on 2008 due to poor feedback, they changed the helpline strategy and start charging the helpline calls. For this cost, they started recording the calls and make this service available 24 hours a day. Due to this change of strategy ufone not only manage to earn extra profit but also able to satisfy customers.
Strategy 5...Activation of SIM
The activation of sim was very easy earlier but due to PTA new rule of activation of sim, the company has to implement their rule. The company change their system and software for activation of sim.
Strategy 6...Network up gradation
In the early days, ufone hired their own engineers for the network up gradation. On 2006 the company change the strategy and agreement with the huawei company, under the agreement huawei will expand ufone network to cover 2200 cities, villages and all major highways in the country.This strategy really improves the ufone network and attracts millions of customers. This change of strategy is the main reason of ufone success today.
SWOT ANALYSISSTRENGTHS:Easily manage changes in strategy.Highly technical and creative staff that's help them in changing strategy.Highly flexible strategies.WEAKNESS:No proper market research before implementing their strategy.Changes of strategy are very often in ufone.The continuous changing of Strategies loses the confidence of customers
OPPORTUNITY:The continuity of their implemented Strategies can get the confidence of new customers.They should make the strategy to introduced International SMS packages to attract more customers.
THREATS:The increase in Government Tax on Telecommunication companies is the main threat for Ufone strategies.The other competitors of Ufone are not regularly changing their strategies.Pakistan is facing some serious economic problems now a days so that would also affect the implemented Strategies.
CONCLUSION:From the report, concluded that the change of strategies is the routine part of ufone. Ufone implemented their strategies and change it. The most of change strategies gives vital benefit to the ufone.The change of Advertising and Network up gradation strategies are one of the main reason of ufone success in Pakistan. They should need to forecast the environment before implementing their strategies.
RECOMMENDATIONS They should forecast before
implementing strategies. It has not many franchises in the
country so they should look upon on their franchise strategy.
They should hired skilled people for making Strategies.
THE END!