ASSIGNMENT

STRATEGIC CHANGE MANAGEMENT

UNIT CODE

: J/602/2062

QCF LEVEL 7

: BTEC PROFESSIONAL

SUBMISSION TO

: Mr. ANDREW SALIBA

SUBMITTED BY

: MD SULTAN MAHMUD

INSTITUTION

: DOMAIN ACADEMY

DATE

: 03rd Mar 2016.

Word Count

: 3322

A LEADING TRADING FIRM OF CHEMICALS IN

MIDDLE EAST

Address:
Caspian Chemical FZCO
8th Floor, City Tower 1,
Sheikh Zayed Rd.,
Dubai, UAE
P.O. Box: 18647 Jebel Ali
Dubai, U.A.E

Content
Details..

Page No.

1)

Structure method..

04

2)

Introduction...

04

3)

Strategic change management theories ..........

06

3.1)

The changes according to ADKAR model..

06

3.2)

Relevance do these models have in practice especially within

the economic context of the change...

07

3.3)

The changes according to KURT LEWIN model............

08

3.4)

Kbler Ross change curve model..

10

3.5)

Valuation was the strategic intervention techniques into the

organization changes..

12

3.6)

Need of strategic change

12

3.7)

Factors driven to the strategic change of the organization...

12

3.8)

Implications of strategic change do on the organizations recourses.

12

3.9)

Extension of stakeholders involved in this change

13

3.10

Strategic change system applied on stakeholders. .

13

3.11

Beneficial of changes these system..

13

3.12

Type of resistance was experience within the organization when

the change program launched and throughout its entire execution
phase.

13

Appropriate models that could have been applied within this change
and how this have been implemented and monitored the proposed
changes..

13

3.14

Force Field analysis Technique..

16

4)

Conclusion.......

19

5)

References.

20

3.13

1.

Structure Method:
This report base with a trading firm Caspian chemical by name, which has been established
and continuing successfully in Middle East. I have chance to experience working with them
as a consumer.
The report has been done by data collection and information from the general Manager and
through my last four years experience as a purchaser from another company dealing with
them every day.
This statement focus on change and change management from theoretical perspective and
models will be present. Then the discussion will center on actual change implemented, what
has driven the change, and then it proceeds on the implication on stakeholders.
The report will show how these changes create problem to implementation initially to
adopted by them .Though they have face some critic by working team by they had overcome
successfully by complete annual target and boost their business focus sub continent zonal
consumer.

2.

Introduction:
In collaboration with reputable manufacturers, the ability to obtain quality products to
enable Caspian chemical and providers to be the No. 1 suppliers of raw chemicals in the
Middle East and South-Asian countries.
Caspian chemical fzco is a International trading based organization. Which main hub
establish in world business capital in Dubai. Two pioneer Middle Eastern students founded
it by 1980 in U.A.E. These trading firm main products are chemical and lubricant raw
material product. Caspian chemical maintain more than 50 Staff serving its customer
worldwide with zonal office in India and Europe as well. The company has a number of
suppliers and customers that are all key stakeholders of the organization.
4

Caspian chemical doing trade some of world-renowned company. MERUBENY chemical,

SUMITOMO chemical, MITSUI chemical from Japan, NORDEL, DOW, KELTAN from
USA are some of major suppliers of Caspian chemical. On the other hand, they are do
selling focus on world giant customer like MOBIL, PEPSI, AMERICAN EXPRESS, VW,
and BMW.
CC has been running their business more than two decade over their self-zone in Middle
East and Mediterranean consumers without any improvement or change on their business
strategy. However, CC face competition to enter to South Asian countries market by South
East Asian business hub Singaporean multinational trading firm.CC has majority of working
staff recruited from Middle Eastern people like Qatar, Kuwait, and U.A.E. Which make in
trouble by communication gap to reach all kind class of chemical consumer. Therefore, the
main the problem before the change program was that the firm could not expand their
business in South Asian countries (India, Bangladesh, Pakistan) because of language barrier.

3.

Strategic change management theories:

3.1

Models of change did the organization applied

The changes according to ADKAR model

Figure
Source

: 01

: The ADKAR model

www.crm.realdolmen.com

CC had been facing problem to compete by Asian some of other chemical trading firm to
enter South Asian arena.CC
CC Admin adopt changes by recruited local people as sales and
marketing executive to deliver their service to maintain all class of stakeholders as per
follow the ADKER model (2006) fig-01. However, they had not make the people aware
negotiation with their existing sales employee but field executive has willingly executed
their knowledge and data to management to achieve desire success by new strategy.
Moreover management implemented training session with their existing team to share own
knowledge of experience.. CC indulged expertise on it to boost marketing strategy. By
recruited new people as change of strategy were quite difficulty to adopt same field with
6

new team member. However, they have ability to expand the existing market as local people
but they faced critical.
Under managerial supervision with expertise data knowledge new strategy got success with
existing team power.CC has successfully made Reinforcement with their new strategy but
they have to update and furnish their all of team member to compete of continues change
business world.

3.2

Relevance do these models have in practice especially within the economic context of
the change.
Though ADKER MODEL can be succeed by implementing where focus on two basic ideas
1)

It can be change by people not for organizational change.

2)

This change would be successful when people changes will be meeting with
organizational change.

The ADKER MODEL can be use to develop employee resistance to change. This model has
ability to find out why not changes get successful to achieve the complete goal, which is
important to take necessary action for successful change. This change management can be
successful to create individual and professional efficiency during the alteration.
When this model does not achieve his target level of achievement, it can be repair by every
certain changes step and address the impact point.

3.3

The changes according to KURT LEWIN model:

Figure:02
Source: Kurt Lewin's Model of Social Change
www.centerfortruejusticeandhealing.org

CC had been continuing old strategy to expanding market to enlarge their customer service
that as not effective as they assumed to capture market in subcontinent side.
side.CC had been try
to recover all kind of obstacles by shake their existing policy by using of change
management which was develop by k
kurt lewin (1947) fig-02.
CC managerial powers decide to make some changes

to unfreeze their existing sales

structure to compete with South Asian contender to overcome expansion condition. Through
unfreezing situation existed human resource 70% people sharing their experience to
management to help trainee new people to achieve maximum expansion
expansion in subcontinent
market. Either more or less 30% people did not ready to adopt the new unfreezing strategy
by willingly nor they quite the job.
CC stepped to new style recruit to local people with existing admin structure though the
people of marketing welcome to their change as well.CC
CC had been recruit new human
resources from local country where they targeted they also manage to make some internship
8

workshop with exiting human power. Existing people willingly shared their own knowledge
focus on possibilities and failure as well. Now CC has been running successfully to
overcome their sudden problem by competitor.
The refreezing process management and human power cooperated each and other to achieve
the goal of expansion to new business arena. In this process, the employees benefited by job
security with extra job satisfaction by getting profit commission .This make a good
competition to fill the sells volume to increase the chance of promotion. Within the change
implementation by management, they raise their turnover more than expected. Now CC not
only build good volume of product they also create good reputation in chemical business
market in the world which help to broad their product catalog list to serve more countries
consumer .

3.4

According to Kbler Ross change curve model:

Figure-03
Source: Kubler Ross change curve model
www.businessblogshub.com

The great Swiss psychiatrist Elisabeth Kbler-Ross had introduce her famous curve model
(1969) fig-03, which were inspired by her terminally ill patient research work which also

applied in this trading firm to overcome to enlarge business capacity in international market.
In the Initial stage when CC had informed to running human power about upcoming
changes of new Staff recruitments they felt shocked to losing their job in future, started skill
competition in workplace to survive their job in this trading organization.
Some of the existing working staff did denial to except the new proposal to recruit from
South Asian market. They established logic to protest that they thought because of
experience this policy cannot be success.
CC has been going to apply changes in their ongoing managerial recruitment process, which
has made great impact existing stuff. They feel frustrated to may lose their job. They suspect
10

if those people get recruit but they cannot manage to compete with other upcoming staff that
can be competent and knowledgeable and thus treating their job. The frustration was mostly
demonstrated in excessive sick days and complaining frequently various matters.
This frustration made them losing their concentration on their job as well. They feel
insecure their ongoing work which made them lose productivity to enlarge their market with
customer satisfaction. This phase is called depression phase and this can very detrimental to
the organization because people will fill loss without any drive and determination .In the CC
this phase cost about 20,000$ in lost productivity due to uncertainty amongst people.
This phase continue they realize this attitude not going so anything they collaborate with
managerial admin. They feel comfortable to experiment new management strategy to seize
their competitive market. Eventually they got slightly success, which made them some relief
from their stress and rise confident to involve more to enlarge market capacity.
Managerial admin when begun to cope their decision to human resource sector few of
experience staff felt to resign from existing duty where mostly decided to keep continue to
collaborate with admin to adopt the best decision they like to achieve maximum output
from the market field.
In the last phase peoples from who came some other of country, they cooperate join in CC
existed experience and efficient staff team to achieve maximum outmost result. All
marketing staff Integrated with CC managerial policy implementation that made good
competition to them.CC has been succeeded by impose of changes and achieve enlarge their
market as well.

11

3.5

Valuation was the strategic intervention techniques into the organization changes.
In my opinion, this model had some value to manager that he executed his authority
Power that he might be apply to change existing strategy to get succeed enlarge trading
market.

3.6

Need of strategic change.

There was need for this strategic change into the human resources focus on organization
success otherwise it was difficult enlarge expanding market area also defend by competitor.

3.7

Factors driven to the strategic change of the organization.

South Asian customers and other rivals business behavior and language barrier drove
this strategic change in this organization.

3.8

Implications of strategic change do on the organizations recourses.

Human resources were main implication to adopt new strategic changes .At the beginning
they were not cooperate to managerial authority to their existing work frame. Even they
quite their job to made implication in trading house, manager had to manage trainee
workshop to furnish again his human resources that cost not only by money but also by their
valuable time to overcome critical situation which create by people.

3.9

Extension of stakeholders involved in this change.

Manager and his working human power were involved to extent in this change.CC
existed human resources try to overcome their firm critical situation that made collapse
to expand their business area.

12

3.10

Strategic change system applied on stakeholders.

CC had not applied any kind of strategic change system on his stakeholders.

3.11

Beneficial of changes these system.

These strategic changes were beneficial to this organization, which made them
enlarge export market in new arena.

3.12

Type of resistance was experience within the organization when the change program
launched and throughout its entire execution phase.
When CC managing body going to execute Kubler Ross model into the existing human
resource they deny to accept and cooperate with them. They made sabotage against
workplace they left the job even some of them made strike to adopt new strategy to
recruit human resources from South Asian countries.

3.13

Appropriate models that could have been applied within this change and how this have
been implemented and monitored the proposed changes.
Culture often becomes the focus of attention during periods of organizational change
when companies merge and their cultures clash. There is model regarding management
culture which name is The PARADIGM developed by Gerry Johnson and Kevan Scholes
(1988) give a proper idea how a culture around and inner environment made impact to
change working pattern in an organization. This model helps to expose cultural assumptions
and practices and set to work aligning organizational elements with one another, and with
managerial strategy.

13

`
Figure 04
THE PARADIGM
Source: http://www.emeraldinsight.com/content_images/fig/0200220507002

The PARADIGM MODEL (refer to figure 4) identifies six interrelated elements that help to
make up what Johnson and Scholes call the "paradigm" the pattern or model of the work
environment. By analyzing the factors in each, you can begin to see the bigger picture of
your culture: what is working, what is nott working, and what needs to be changed. The six
elements are:

STROIES: To join and be part of Caspian chemical always been a challenging and success
story for new employees. One of most myth is common to know if anybody gets chance to
joint Caspian chemical human resource he or she need not see again to back.CC
administration
n always give good emphasis to his working forces. They provide good brand
of car, well furnish apartment including family, yearly travel vacation with air ticket. All
facilities include job securities, International branding, and business goodwill made by CC
which are now working like myth on behind of his success human resource development.

14

SYMBOLS: CC has been always maintaining his Trade Mark logo which are a good enough
to establish his goodwill as well as good kind of service which they provided last two
decades. They always provide and keep high quality of message to their customer that make
rich to bonding all kind of customer.
POWER STRUCTURE: The pocket of real power in the company.CC has well educated
chemistry background of administration personalities. Even when they adopt new strategy
or expertise, they always choose high standard. This trading farm has a team of chemist
whose are highly paid and dedicated to research chemical raw material product to provide
best service to all kind of consumer.CC has been good impression on U.A.E Taxation
revenue field.
ORGANIZATIONAL STRUCTURE: CC organizational structure maintain cross ladder
process. From top to bottom, all employees maintain good corporate relation each other with
keep synchronization .This trading firm organize routine basis workshop to develop old and
new employee sales strategy. Moreover administration all managerial staff arrange fortnight
basis board meeting to develop their strategy.
CONTROL SYSTEM: The ways that the organization is controlled. Caspian chemical has
been automated control system of staff attendance security, consignment dispatch.CC staff
always been rewarded when they achieve target of product service, they dont delay to
rewarded their own human power.CC admin believe if a single staff happy and proud to his
work station they can provide best output on it without any extra effort by senior level.
RITUALS AND ROUTINE:

The daily behavior and actions of people that signal

acceptable .CC admin has routine workshop system which help them to develop their human
15

resource by expertise which is very much fruitful to develop their business strategy. Besides
when they organize board meeting fortnight basis they urge to attendant to all sectors group
leader staff take part of decision-making. All kind staff feels proud to give them their ideas,
value, they can share what kind of problem they face when work to activate managerial
strategy likewise administrative people can set a perfect plan base on according to those
people ideas and experience who will work on it sell field. This way both side of people are
happy and cooperate to achieve their targeted goal.

3.14

Force Field Analysis

There is a technique to evaluate to make changes of strategic management, which are very
useful to take right decision helps to make a decision by analyzing the forces for and against
a change. This helps by communicate the reasoning behind to choose this decision.
Administration can use it for two purposes: to decide whether to go ahead with the change;
and to increase the chances of success, by strengthening the forces supporting change and
weakening those against it.
Force Field Analysis model was create by Kurt Lewin (1951). This model is like a
framework for looking at the factors (forces) that power of a situation, originally social
situations. It looks at forces that are either driving movement toward a goal (helping forces)
or blocking movement toward a goal (hindering forces)
To adopt this model to take right decision in any kind of changes inside established strategy
to ensure maximum of output come thorough by management and all of establishment. This

16

model assign on a score to each force, like 1 (weak) to 5 (strong), and then add up the scores
for each column (for and against).
Forces for change

Forces against change

Competitor increasing

To enlarge market

Upgrade of
Caspian Chemical

Need job
replacement by
existing experience
staff to provide best

Trading strategic

change
management with

Increase total trade

volume

new human
resource

Efficient human team

to provide best service
with minimum time

Rise extra cost and

time to train new
staff

Impact on
established working
field

Total:10

Total:8
Figure:05
Source: Adopted www.odi.org
Force Field Analysis of Caspian Chemical Trading fzco

As per Force field analysis(fig-05) CC set marked for 4 to defeat competitor who are
continually doing enlarge their export market whereas CC had been face problem by his
existing working strategy though they have stress to change a new wave of human power to
replace most experience people they gave them this point only 3 by mark.

17

CC has to manage this change increase trade volume not only domestic customer but also
high demand of International, which has great influence to activate these changes. However
CC need to shuffle and refurnish his total human resources by experience and expertise
which cost a lot to train them by money and time consume.

To introduce a new theories against existing establish working culture always challenging.
However, by depend on this method managerial administration can easily decide to adopt
new strategy by doing change existing route to get maximum output by their team players.

18

4.

Conclusion
Caspian chemical fzco trading firm has been taken a good initiative of managerial strategic
to compete their rival organization to expand new market. Though they had face some
critical situation by existing human resources but later on those people also help them to
overcome and achieve to enlarge their chemical business in South Asian market as well.

19

5.

References

1.

Hiatt, J. (2006). ADKAR: A Model for Change in Business, Government and our Community
(1st ed.). colorado, USA: Prosci Learning Center Publications.

2.

Johnson, S. (1988). Exploring corporate strategy (1st ed.). ATLANTA, USA: Simon and
Schuster Europe Limited.

3.

Kbler Ross, E. (1969). On Death and Dying (1st ed.). New York, USA: MACMILLAN
COMPANY.

4.

Lewin, K. (1951). Field Theory in Social Science (1st ed.). New York, USA: Harper and
Brothers.

5.

Lewin, K. (1947). Frontiers in Group Dynamics (1st ed.). New York, USA: Harper &
Brothers.

Abbreviation List

CC

: CASPIAN CHEMICAL

20