Strategy-MLP-Dec' 14- 38444951

CIM/CAM Membership

Number

Unit Title

Level/Award

Accredited Study

Center

38444951

Marketing Leadership and Planning

Chartered Postgraduate Diploma in Marketing

Strategy Business College

Declaration:

“I confirm that in forwarding this assessment for marking, I understand and have applied the

CIM policies relating to the word count, plagiarism and collusion for all tasks. This assessment is

the result of my own independent work except where otherwise stated. Other sources are

acknowledged in the body of the text, a bibliography has been appended and Harvard

referencing has been used. I have not shared my work with other candidates. I further confirm

that I have submitted an electronic copy of this assessment to CIM in accordance with the

regulations.”

Word Count:

Task 1: 2680

Task 2: 4338 (Task 2.1: 3801 | Task 2.2: 537)

Task 3: 1621

(Excluding Index, Table of Contents, Summary of Audit Findings, Executive Summary, Headings, References & Appendices)

Date of Submission: December, 2014

Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951

1

DELIVERING A CULTURE OF

INNOVATION, LEARNING AND RISK MANAGEMENT


2

Contents TERMS OF REFERENCE: ................................................................................................................................. 6

PROCEDURE ....................................................................................................................................................... 6

EXECUTIVE SUMMARY .................................................................................................................................. 6

Task 1 - Report

1.0 FINDINGS- ...................................................................................................................................................... 6

THE DYNAMIC NATURE OF THE SRI-LANKAN AUTOMOTIVE INDUSTRY .......................................... 6

1.1 UNDERSTANDING THE FACTORS AFFECTING CURRENT LEVEL OF FLEXIBILITY OF AMW ... 6

1.1.1 Assessment of Culture & Structural Flexibility at AMW .......................................................................... 7

1.1.2 Sales Orientation and its implications on AMW‟s responsiveness ........................................................... 7

1.1.3 Strategies used, influencing flexibility at AMW ....................................................................................... 7

1.1.4 How is leadership influencing flexibility at AMW? .................................................................................. 8

1.1.5 Degree of flexibility derived through AMW‟s Value Chain ..................................................................... 8

1.1.6 Critical evaluation of resources influencing flexibility at AMW .............................................................. 8

1.1.7 Gap Analysis: Current State vs. Ideal State of Flexibility ......................................................................... 9

1.2 BRIDGING THE GAP: RECOMMENDATIONS FOR IMPROVING THE FLEXIBILITY OF

AMW .................................................................................................................................................................... 10

1.2.1 How Can Developing a Learning Organization Help Improve AMW‟s Flexibility? .............................. 10

1.2.1.1 Five Disciplines of Learning- The core of a learning organization .......................................................... 11

1.2.1.2 Encouraging the practice of double-loop learning .................................................................................... 11

1.2.1.3Knowledge Management – A key for creating a Learning Organization .................................................. 12

1.2.2 Encouraging Innovation within AMW .................................................................................................... 12

1.2.2.1. Countering the Strategic Drift through Value Innovation ....................................................................... 12

1.2.2.2 Creativity – The foundation of Innovation ............................................................................................... 13

1.3 CONCLUSION ............................................................................................................................................. 13

Task 2 - Internal Marketing Plan

2.1 INTRODUCTION – INTERNAL MARKETING FOR CHANGE MANAGEMENT .......................... 15

2.1.1 Phase (1): Trigger for Change and Improvement .................................................................................... 16

2.1.1.1 Where are we now? ..................................................................................................................... 16

2.1.2 Phase (2): Audit: Analysis & Evaluation ................................................................................................. 17

2.1.3 Phase (3): Scope: Exploration & Creativity............................................................................................. 18

2.1.3.1 Where do we want to be? : Reaching Market Orientation .......................................................... 19


3

2.1.3.2 Establishment of scope for the IM plan ....................................................................................... 20

2.1.4 Phase (4): Shape, Design and Planning .................................................................................................. 21

2.1.4.1 Internal Market Segmentation....................................................................................................... 21

2.1.4.2 The Internal Marketing Mix .......................................................................................................... 21

2.1.5 Phase (5): Action, Implementation and Control .................................................................................... 22

2.1.5.1 Internal Marketing Execution & Implementation ......................................................................... 22

2.1.5.3 Budget Allocations and Time Frame ............................................................................................ 26

2.1.6 Phase 6 – Unit Consolidation & Learning ............................................................................................. 26

2.1.6.1 Institutionalizing the Change through Learning & Coaching ....................................................... 27

2.1.6.2 Internal Marketing Evaluation ...................................................................................................... 27

2.1.7 Barriers and Potential Challenges for Internal Marketing ...................................................................... 28

2.2 CRITICAL ASSESSMENT OF AUTHOR‟S OWN LEADERSHIP STYLE ........................................ 28

2.2.1 Identification of Author‟s Leadership Style & Its Implications on IM Implementation ......................... 28

2.2.2 Developing the Ideal Leadership Style .................................................................................................... 29

2.2.2.1 Developing Author‟s Supportive/ Participative Leadership- ........................................................ 29

2.2.2.2 Personal Development Plan (PDP)- .............................................................................................. 30

2.3 CONCLUSION ............................................................................................................................................. 30

Task 3 - Briefing Paper

3.1 ABSTRACT ................................................................................................................................................... 32

3.2 BACKGROUND INFORMATION ............................................................................................................ 32

3.3 ANALYSIS .................................................................................................................................................... 32

3.3.1 Risk Identification at AMW..................................................................................................................... 32

3.3.1.1 Identification of Sources and Nature of Risks ............................................................................... 32

3.3.2 Critical Analysis and Assessment of Risks at AMW............................................................................... 33

3.3.2.1 Analysis and Assessment ............................................................................................................... 33

3.3.2.2 Developing Criteria to evaluate risks with high propensity........................................................... 34

3.3.3 Managing and Mitigating Risks of AMW through Internal-Marketing .................................................. 34

3.3.4 Risk Reporting and Policy ....................................................................................................................... 35

3.3.5 Why should AMW invest in risk management? ...................................................................................... 36

3.4 SUMMARY ................................................................................................................................................... 36

REFERENCES .................................................................................................................................................... 37

APPENDICES


4

Summary of Audit Findings

Resources and

Competencies

AMW‟s most significant unique resources are the over 6 decades worth partnerships with its key principal

agents, which it has effectively used in leveraging such resources into achieving market leadership &

competitive advantage, especially in the MRV category during period of 2000-2012. Refer A1 (Appendix 2).

Key value creating resources lie in infrastructural developments in factory, yet value reduction occurring in high

lead times of in-bound & out-bound operations in commercial procurement Refer A6 (Appendix 2)

Flexibility

Inflexibilities were identified across several key elements, amongst which Process and Strategic elements

exemplify the highest inflexibilities. Flexibility of working arrangements is on par with desired levels.

The inter-link between structural elements and internal processes has led to creating a ripple effect on

inflexibilities.

Environment &

Industry

As illustrated in A4 (Appendix 2), AMW competes in a highly competitive industry, with a range of choice for

customer and high power for suppliers.

It also operates in a very dynamic environment with significant changes to economic growth and technology

affecting automotive industry & ergo affecting socio-cultural factors can be forecasted. Refer A5 (Appendix 2).

Culture and

Structure

High role culture indicating high level of bureaucracy with staff centralized and specializes in functional tasks.

High power and authority variance from senior management (Grade H and above) to lower-middle level (Grade

D-B), caused by rigid functional structure. Refer A7 & A8, (Appendix 2)

High level of financial concern and maintenance of a positive P&L, even at monthly level, to display a positive

image of performance, at micro level. Refer A8 (Appendix 2)

Strategy

With 65 years of operations & extensive related diversification within the automotive industry, AMW is a

pioneer in the industry. Refer A11 (Appendix 2).

AMW falls within the Increased Priced/Standardized product category of Strategy Clock due to generic nature of

products offered across all brands (except the recent Nissan Patrol Y62) with a marginal higher price than

competitors. Refer A13 (Appendix 2). This has accordingly resulted in a perceived high value vs. standardized

quality on AMW vehicle brands. Refer 12 (Appendix 2)

Leadership

High level of authoritarian leadership is demonstrated with a drafted rigid set of guidelines for majority of the

staff members to operate upon. Refer A21 (appendix 2). The autocratic leadership is a by-product of the

functional structured culture demonstrating high level of financial syndrome.

Creativity

Creativity inhibitions across the organization was demonstrated through the tall-authority and approval

structures, high level of rational thinking & commonsense thinking displayed by senior management as well as

majority of the staff. Refer A22 (Appendix 2)

Risk Analysis

Highest level of current risk is the financial risk, due to heavy investments on the current expansion phase, with

environment risk showing significant growth Refer A23/ A24 (Appendix 2)

High technological risk through increase technological development is expected in the foreseeable future, but an

immediate social risk is identified with a rapid change in consumer behavior in vehicle purchasing.. Refer A26

(Appendix 2)

Knowledge

Management

Biggest barrier for knowledge management at AMW is Lack of efficient knowledge storing, secrecy and

undervaluing of knowledge. This may result in high employee churn. Refer A26 (Appendix 2)


5

Chapter

-One-

Critical evaluation of

the current level of

flexibility in response

to changing market

forces with

recommendations

on bridging the gap

between the Actual

vs. Ideal states of

flexibility & agility in

order to ultimately

create AMW a

‘learning

organization’.

TO: Marketing & Business Development Director

FROM: Marketing Manager

SUBJECT: Cultivating AMW‟s competitive advantage by fostering a culture of innovation & creativity

encouragement, which facilitates holistic learning & Risk Management.


6

TERMS OF REFERENCE: This report critically examines the current marketing strategy of AMW-Automotive Ltd. In doing-so, this report will

discourse the organizational culture‟s innovativeness, learning-facilitation and risk management.

PROCEDURE This report is buttressed with the strategic audit findings (Appendix 2), & employee attitude survey (Appendix 3).

EXECUTIVE SUMMARY Fueled by multiple factors environmental factors, the industries today are undergoing dynamic change, both at a global

and local level. These dynamics affect consumer needs and wants & thereby having a ripple effect on the competitive

arena for businesses. In such context, the adaptability to environment variances becomes a focal point of ensuring

sustainability for today‟s organizations. The same effect has now transpired to the Sri Lankan Automotive industry, where

technological, social and environmental variances have influenced the local consumer to develop advanced set of needs

and wants.

In such context, Associated Motorways (Pvt) Ltd (AMW) has to discover avenues of securing or heightening competitive

advantage through this change. Accordingly the ensuing project addresses the above dynamic through discussions carried

out across the following dimensions.

Critical evaluation of the current levels of internal flexibility within AMW, to identify its gaps and understand

avenues through the gap can be addressed.

Development of an internal marketing plan to carry through the internal-change required to manage the process of

executing recommendations derived on preceding task, thereby improving AMW‟s internal flexibilities and

efficiencies, and,

Discussions on why risk management should be considered a management priority in executing change, and

distinguishing the risks of not changing, against risks of changing, to determine its feasibility.

-1.0 FINDINGS-

THE DYNAMIC NATURE OF THE SRI-LANKAN AUTOMOTIVE INDUSTRY

The automotive industry is operating within an industry that has observed drastic variances caused by multiple

environmental factors. (Refer Appendix 2, A5). Amongst these, major influential factor for change are the improvement in

technology affecting automobiles, economic variances and the change in social trends. These changes in the industry &

competitor landscape, have threatened AMW‟s productivity & profitability. (Refer Appendix 1: Financial & Operational

Highlights).

Hence the need has arisen to evaluate the company‟s flexibility key elements as a core competency to realize future

competitive advantage; one that is derived through adaptability to changing external dynamics.

1.1 UNDERSTANDING THE FACTORS AFFECTING CURRENT LEVEL OF FLEXIBILITY

OF AMW In order to become a flexible, AMW should initially understand the essence of change, and ponder the question; what is

happening with the environment and what are we supposed to do to adapt? (Codrin et al, 2012). Moldoveanu and Dobrin

(2012) identify organizational-flexibility as “the capability of playing and articulating the managerial functions in the

context of processing the goods, services, different works etc., various measures, in respect of performance and relative

control of the turbulent environment.” Therefore in the process of assessing the current level of flexibility of

organizational constituents of AMW, both qualitative and quantitative elements within the entity should be measured.


7

1.1.1 Assessment of Culture & Structural Flexibility at AMW

As demonstrated, organizational flexibility could be derived through a varying set of elements within it, and the degree to

which such flexibility is necessary is determined through the identification of market dynamics. Accordingly, in order to

respond to such external forces, it is important to evaluate AMW‟s strategic orientation.

1.1.2 Sales Orientation and its implications on AMW’s responsiveness

Thomas et al (2001) explains sales-orientation as a business approach which “tries to utilize sales trends instead of

satisfying customer's needs”. AMW signifies low emphasis on building relationships with customer, , and high

emphasis on selling-tactics (A7, Appendix 2), which mean it has currently adopted the sales-orientation approach. Such

sales-orientation could bring about following limitations to the company in a highly dynamic environment. (Mehrabi et al,

2012).

Limitation of Sales Orientation Evaluation of limitation Implications on sustainability & flexibility

Focus on Short-term planning Short-term gains are targeted through aggressive

sales tactics, and stringent commission structures

Fails to gain true form of employee-

engagement.

Confined in marketing & sales Isolation of marketing/sales division from other

divisions. Functions perform in separation.

Reduces structural flexibility

Stifles inter-functional coordination.

Comparison of product-

performance with customer-

expectation

Results in sales-performance being higher/lower

than expected, which in turn would determine

level of customer satisfaction. (Parasuraman,

1994: Cited in Mehrabi et al, 2012).

Inability to determine true form of customer

satisfaction

Leads to inaccurate decision making

In such context, it is of vital importance that flexibility is leveraged from key elements at AMW to develop internal

efficiencies. However, prior to considering such internal elements, the implications of strategies used by AMW on its

flexibility must be evaluated.

1.1.3 Strategies used, influencing flexibility at AMW AMW currently operates on a top-down planned strategy. (Appendix 2, A19). Such planned-strategies may result in

hindering the organization‟s responsiveness to market dynamics, as the process of deviating from strategic plans will

require significant time-consuming involvement of BoD and other decision makers.

Element Identification Evaluation Implication on Flexibility

Culture Role Culture (Appendix 2, A7)

Employees specialize on specific functional tasks.

The task orientation amongst employers and

employees are high as a result.

Stifles employees‟ creative scope and

willingness/ability to take initiative,

thereby reducing “HR flexibility”.

Structure

Functional

structure (Appendix

2, A9)

With centralized commercial/operational functions

for all brands which in turn manifests high

bureaucracy.

Creates clearly defined job-roles and responsibilities

on employees.

Results in reduction of speed-to-market,

swift decision execution thereby reducing

both AMW‟s “commercial flexibility”

and high-bureaucracy reduces company‟s

“operational flexibility”. The narrow-

span-of-control, as a derivative of tall

functional structure creates barriers on

employee flexibility.

Span of

control

Tall-organizational

hierarchy, resulting

in a narrow-span of

control.

Each line manager has less than five directly-

reporting employees, which result in close scrutiny

of employees‟ tasks.

Learning &

Development

(Freedom to

learn)

Vocational training

targeted centrally

towards managers, learning modules on

intranet not updated

The lack of efficiency and novelty of the currently

deployed learning and development, and the

comparative differences of learning programs

available for managers vs employees, will result in

below-par operational excellence.

As operational excellence is a

fundamental element of organizational

responsiveness and flexibility, this will

ultimately result in hindering the

organizational flexibility.

Table 1.2

Table 1.1


8

Table 1.3

Illustrator 1.1

Source: Porter‟s Generic Strategies (1985)

Competitive Advantage

Differentiation Lower Cost

Ma

rket

Sco

pe

Bro

ad

Na

rro

w

Cost Leadership Differentiation

Cost Focus Differentiation Focus

Stuck in the

middle

Even though the strategic orientation of AMW is

demonstrated as „differentiation‟, (A22, Appendix

2), the value chain (A6, Appendix 2) displays

characteristics of that of cost focus/low price. As

a result, AMW faces the risk of being

strategically stuck-in-the-middle (illustrator 1.1)

This would create difficulties in generating

strategies to speedily seize competitive advantage

for AMW, thereby reducing its strategic

flexibility.

1.1.4 How is leadership influencing flexibility at AMW?

The management/leadership styles at AMW predominantly display the physiognomies of an “authoritarian” (A20,

Appendix 2), which entails company‟s leaders „selling decision‟ which hinders employee empowerment.

1.1.4.1 Leadership styles and Communication Authoritarian leadership results in a significant degree of repression of honest two-way communication between

employees & senior-managers. (Refer appendix 3 – communication).

Another consequence of this is employees not being promptly informed about decisions which affect them at the

workplace. (Task 2.1.5.1) which will result in the breakdowns in the communication process, as accurate feedback of

employees would not reach managers.

1.1.5 Degree of flexibility derived through AMW’s Value Chain The value chain exemplifies how customer value accumulates along a chain-of-activities leading to an end-

product/service (Porter, 1985, cited in Sekhar, 2010). (A7 Appendix 2). Ensuing demonstrates four key value chain

activities which have significant impact on company‟s level of flexibility.

Value Chain Element

& evaluation

Implication on Flexibility

Infrastructure: Central-warehousing Stifles the flexibility of delivery and extensive costs in transportation as 4 two-way

commutes to distances over 200km are done weekly.

Procurement: Centralized commercial division Reduces the flexibility of ordering processes and frequently increases cost

of raw material.

Human Resources and

Operations:

Rigid rules on incentive schemes with efficient execution of training programs result in high labor turnover

in factories thereby reducing H.R. flexibility

Marketing and Sales: Due to absence of efficient CRM systems and clearly marketers‟ defined job-responsibilities of attracting

new customers, the Commercial flexibility of AMW is challenged.

1.1.6 Critical evaluation of resources influencing flexibility at AMW

Res

ou

rces

Au

dit

&

An

aly

sis

Existing Resource Remarks Evaluation of Effect

General Organizational

Resources: (Refer

Appendix 2 A2)

Good key-stakeholder relationships

Tight brand-communication guidelines

Facilitate the organizational flexibility.

Adversely affects commercial flexibility.

Physical Resources:

(Refer Appendix 2 A2)

Centralized commercial resources

Only 2-key assembly points

Stifles operational flexibility

Reduces responsiveness to quick-orders


9

Financial Resources:

(Refer Appendix 2 A2

Financial resources involve the circulatory

assets of the organization, and have a

significant impact on the economic

performance

Accordingly they impose their rational

use, acting as constraints against

flexibility.

Human Resources (Refer

Appendix 2 A2)

Complex control mechanism, target vs. debt

collection based incentives and undocumented

informal lines & use of power and authority

High bureaucracies

Reduce creative scope and innovative

thinking of employees, thereby reducing

HR flexibility.

1.1.7 Gap Analysis: Current State vs. Ideal State of Flexibility

Based on the above identified elements, the following gap analysis if performed to determine the variance between where

AMW wants to be, and where it actually is, in terms of flexibility and responsiveness.

*Note: When performing the stated gap analysis, varying levels of weightage was assumed to each element according to

their capacities to influence AMW‟s adaptability.

Assessment Category Current

assessment

(Evaluation)

Degree of encouragement to learn Appendix 2 A13

The degree of readily available

material to learn Appendix 2 A18

Capacity to learn Appendix 2 A18

Learning and development at all levels of AMW

hierarchy Appendix 2 A18

Structure‟s support for learning Appendix 2 A13

Ability to accommodate learning into

current job roles Appendix 2 A18

The team spirit/level of shared purpose Appendix 3

Degree of honest/open communication Appendix 3

Level of risk aversion Appendix 2 A15

Importance given for retain and

transfer of knowledge Appendix 2 A16

Importance given for enhancing

employee creativity Appendix 2 A10

Level of process flexibility encouraging creativity Appendix 3

Leadership to facilitate innovation & learning at AMW Appendix 3

Leadership to facilitate collective decision making &

employee empowerment Appendix 2 A12

Cultural support systems to accommodate learning Appendix 2 A8

Level of inter-functional coordination Appendix 2 A7

Consideration of Flexibility as a strategic competency Appendix 2 13

Gap Analysis

Table 1.5

Table 1.4


10

Table 1.6

RECOMMENDATIONS

1.2 BRIDGING THE GAP: RECOMMENDATIONS FOR IMPROVING THE

FLEXIBILITY OF AMW The following strategic actions can be deployed to improve the current level of flexibility of AMW to match the ideal

states, thereby possibly preventing the occurrence of a strategic flux.

Current

Situation

Recommended

Option Justification

High

bureaucracy&

Inefficient

operational-

processes

Lean Management

By understanding the three P‟s (Purpose, People & Processes) of lean management,

through practicing Total-Quality-Management (TQM), and six-sigma models, AMW can

benefit from:

Heightened waste elimination,

Improved process efficiencies and

Minimization of defects in trading affairs,

, from vehicle procurement to sales to after sales.

Tall-Functional

Structure &

Centralized

Decision

Making

Flat / Matrix

Structure &

Decentralized

Decision

Making

By creating a flat organizational structure, the span of control will be widened, which

will allow the facilitation of decentralized decision making – which will operate as an

employee-empowering mechanism.

Also by removing the functional segregation and introducing a matrix structure, AMW

can eliminate central control, and enhance inter-functional coordination.

Accordingly the project teams generated through the flat, matrix structure will improve

employee empowerment.

Planned

Approach

Emergent

Approach

Through the emergent approach (Refer Appendix 3, A19), AMW will increase its

operational flexibility and responsiveness, and it will be able to swiftly adapt to the

environmental changes.

Critical-factor: In doing so, senior managers should efficiently control the process aspects

of strategy.

Lack of

training,

development

and knowledge

management

Develop a learning

culture

Learning culture will characterize optimum us of employee creativity and reaching high

levels of empowerment. (Discussed in point 1.2.1)

Sales

Orientation

Adopt Market

Orientation

(Narver and Slater,

1990)

Market-Orientation will create AMW more responsive to competitive actions, and enable

better understanding of their customers. The flexible flow of information across the

company will facilitate employee empowerment as well. (Discussed in detail in 2.1.3.1)

1.2.1 How Can Developing a Learning Organization Help Improve AMW’s Flexibility?

AMW currently possess limitations in employee training & development and knowledge sharing (A16, Appendix 2), it is

imperative to develop a learning culture within the company where “people continually expand their capacity to create

the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is

set free, and where people are continually learning to see the whole together” Senge (1990).

Illustrator 1.3


11

Five disciplines of a learning organization Source: Adapted from Senge (1990)

There are five key disciplines that an organization must respect in order to be considered as a learning organization.

1.2.1.1 Five Disciplines of Learning- The core of a learning organization

Learning Discipline Available Tool for

AMW‟s leaders Use of tool at AMW

Personal Mastery:

Perceptual Positioning At meetings, adopting several perspectives from both managements &

employees in an experimentally rich manner

Cognitive Re-framing After conducting above; search, identify and dispute irrational ideologies, and

evaluating positive alternatives.

Shared Vision

Concept-Shifting Drastically altering the perceived strategic concept of AMW which employees

possess.

Values Alignment Calibrate fundamental values acting as driving forces of employee commitment

towards organizational success.

Mental Models Reflective inquiry Placing current research on a broader context than before and demonstrate a

dispassionate/un-biased perspective.

Team Learning Action learning Brainstorming inputs on Organizational-Problems, Data-Gathering, Business-

Planning, and Implementation.

Systems Thinking Systems Thinking Maps Creating visual descriptions of the multiple key points of discussions.

1.2.1.2 Encouraging the practice of double-loop learning This section of discussion on making AMW a learning organization is based on creating an atmosphere that allows single,

double and triple loop learning.

AMW employees display characteristics of Single-loop Learning, where they take corrective measures for actions

performed regarding problems and negative feedback is taken, based on pre-determined objectives & goals.

Double-loop Learning

(Needed at AMW)

Governing

Values/Assumptions Actions Problems/Error

Single-loop

Learning

(Currently at AMW)

Single-Double Loop Learning Source: Argyris & Schön (1978)

Illustrator 1.3

Table 1.7

Illustrator 1.2

Personal Mastery

(1)

Shared Vision

(2)

Mental Models

(3)

Team Learning

(4)

Systems Thinking

(5)

Learning

Organization


12

Table 1.8

But In order to realize true form of learning, AMW should be able to question the adequacy of the pre-determined

objectives and operational norms, and assess their relevance and capacity to rectify the problems occurred, i.e. Double-

loop Learning (Cartwright, 2002).

1.2.1.3 Knowledge Management – A key for creating a Learning Organization Ndlela and du Toit (2006) explain that the success of the enterprises of 21

st century depend critically on the quality of

knowledge they apply in their business processes. As automotive industry as-a-whole includes highly specialized and

technical aspects to it, maintaining that knowledge of those who have been employed within the industry makes it

significantly unique-resource.

In such context, AMW should actively overcome barriers for knowledge management (Refer A24, Appendix 2), and create

the right climate for knowledge ownership & management.

Element Application for improving knowledge management

Culture of Freedom Adapt a “person culture” at AMW, and create the employee the „central focus‟ and develop surrounding

structures as supportive mechanisms.

Open Communication Adapt open-door policies & management-by-walking-around leadership practices.(MBWA)

Training and

knowledge-sharing

Initiate cross departmental training programs, and facilitate experienced employees to share their

knowledge with others

Recognize & reward

creative thought

Encourage employees to develop 2 new concise business improvement proposals as part of PDR/KPI, and

reward such employees with physical implementation of feasible proposals.

Process-Development Create a benchmark within the division to be distinguished as a „best-practice‟ within AMW

Technology Efficient use of Intranet & SAP systems to facilitate knowledge retrieval and application.

1.2.2 Encouraging Innovation within AMW Mone et al (1998) identifies innovation as the most important determinant of firm‟s performance. For an organization like

AMW competing in a dynamic setting, the success will predominantly depend on „innovation‟ in not only new products,

but new processes, technology driven operations, product value additions for customers as well as new forms of

marketing.

1.2.2.1. Countering the Strategic Drift through Value Innovation One of the more significant risks of having limited flexibility for AMW is that the company would gradually coast-away

from the changing environment. (Refer Appendix 2, A5). This is epitomized in the „Strategic Drift‟ model by Johnson,

Scholes & Whittington, (2008). As displayed, AMW‟s position indicates a gradual drift-away with the environment.

Illustrator 1.4

Strategic Drift Model Source: Johnson, Scholes & Whittington (2008)

AMW

Drift

Phase 1

Increment

al Change

Phase 2

Strategic

Drift

Phase 3

Flux

Phase 4

Transformatio

nal change or

demise

Environmental

Change

Am

ou

nt

to C

ha

ng

e


13

The strategic drift can be a cause of several issues, and its implications on AMW will be dire. For an example:

AMW is used to making incremental changes to its strategies thereby allowing it to be aligned with the

environmental changes. (Phase 1).

In order to prevent AMW from reaching the period of flux and thereafter demise, it may have to,

o Create a quantum leap of innovation and create a revolutionary change as a proactive measure.

o Create a transformational change before the occurrence of organizational demise.

1.2.2.2 Creativity – The foundation of Innovation

Rigie and Harmeyer (2013) define creativity as “generating new ideas and concepts, or making connections between

ideas where none previously existed”.

This area discusses how creativity can be enhanced at AMW via Ryde‟s-Thinking-Repertoires framework. Ryde (2007)

identified several dominant functions which stifle an organization‟s creativity. These were audited at AMW (Refer A21,

Appendix 2) and the following shadow functions (and the degree of shadow function required) are recommended for

creativity stimulation within the company.

1.3 CONCLUSION In order to match the dynamic automotive industry, AMW should recognize the impact of having below-par levels of

flexibility & responsiveness, which will hinder the adaptability to the environment. As reconciliation to this, AMW should

develop an internal marketing plan to deploy the recommendations made above. By doing so, the company will be able to

derive sustainable long-term competitive-advantage.

Dominant

Function

Shadow

Function

Degree of Required

Shadow-Function

Execution of

Shadow Function

(A1

0,

Appen

dix

2)

Strengthen

based

Thinking

Create a „can-do‟ attitude amongst

AMW directors/senior-mangers, so

that it will transpire of employees to

take initiative.

V.High

Feeling

Thinking

Insight

Thinking

360 Degree

Thinking

Re-integrated

Thinking

Exit

Thinking

In strategic meetings, increase the

use of emotions, relating customer

protection and employees‟ lives

enrichment etc.

Make use of wealth of knowledge of

experienced employees, and

encouraging new uses of the gathered

knowledge.

Generate cross-functional teams in

determining feasibility of new

projects, or addressing current issues.

At meetings, evaluate budgets and

possibilities of accommodating more

than one option of execution.

Avoid gaining more-and-more

insight on feasible ideas when they

already make clear sense.

Moderate

Moderate

High

V.High

High

Table 1.9


14

Chapter

-Two-

Development of an

internal marketing

plan in delivering

cultural and

organizational

change, in making

AMW a learning

organization.


15

2.1 INTRODUCTION – INTERNAL MARKETING FOR CHANGE

MANAGEMENT

This chapter discusses the importance of developing an internal-marketing (IM) program aimed towards the internal

marketplace of AMW, in carrying out the recommended changes demonstrated in task 1.

Internal-marketing is a “the building of customer orientation among employees by training and motivating both

customers-contact and support staff to work as a team" (Kotler and

Armstrong, 1991).

As depicted in illustrator 2.1; Hooley et al (2004) explains that

internal-marketing should be considered as an input to marketing

strategy, parallel to the external-marketing-program.

This will allow AMW to reap benefits from exploiting new

opportunities, and unearthing neglected resources towards

achievement of a greater competitive advantage.

Developing the change management process

Accordingly, the ensuing discussion will identify, evaluate and justify the adaption of the following planning framework

in carrying out the change management process at AMW.

Each of these 6 phases will facilitate the change-management-process across AMW, in establishing the

recommendations made in task 1.2, to ultimately develop AMW in to one that can be considered as a learning

organization, derived through market-orientation.

Phase 1: Trigger

for change &

improvement

Phase 3: Score

exploration &

Creativity

Phase 2: Audit,

Analysis &

Evaluation

Phase 4: Shape,

Design &

Planning

Phase 5: Action,

Implementation &

Control

Phase 6: Unit,

Consolidation &

Learning

Illustrator 2.2

Adapted from Hooley et al (2004)

Marketing

Strategy

Internal

marketing

Program

External

marketing

Program

Illustrator 2.1

Process of Change Management adapted for AMW


16

2.1.1 Phase (1): Trigger for Change and Improvement

In this section, the key indicators of requirement for organizational change, along with the ability to change, is considered

by basing such consideration on the gap analysis (Refer Task 1.1.7).

2.1.1.1 Where are we now?

The initial phase attempts to determine the current position of the organization. Accordingly, the internal-audit findings

are cross-examined with the external environmental dynamics, to determine the „trigger‟ to initiate change at AMW.

How to determine triggers?

Simultaneously it is imperative to ascertain the level of needs-fulfillment of the employees within the company.

Need identification & evaluation of AMW employees through Maslow‟s Hierarchy of Needs (Via attitude Survey)

Accordingly, the ensuing step entails analysis of these elements to determine to what extent these elements trigger the

need to change (Discussed in task 2.1.2).

Self Actualisation

Aesthetic

Esteem

Love

Safety

Physiological Good – Acceptable satisfaction on salaries & working environments.

Average – High job security without majority of employees being

permanent, but limited benefits/perks (life insurance etc.) offered.

Average – Employees are recognized for creative thought, but

authoritarian leadership reduces expected respect for employees.

Good –Strong reputation of AMW makes employees feel sense of pride

Average – Needs improvement in; collective idea generation &

encouraging engagement in recreational activities.

Low – Limited career progression and participation in decision making

for executive & below level staff.

A4, Appendix 2 A5, Appendix 2 A6, Appendix 2

Appe

ndix 3

A12 / A8 / A11

Appendix 2

Macro

Political Economical Socio-cultural

Technological

Meso

Supplier Bargaining

Power

Customer Bargaining

Power

Industry Rivalry

Micro

Value Chain

Attitude Survey

Leadership Structure Strategic

Orientation

Illustrator 2.3

Determining Triggers for Change at AMW


17

2.1.2 Phase (2): Audit: Analysis & Evaluation

This section assesses the intensity of the trigger for change caused by dynamic elements from both within and outside

AMW.

Internal Triggers of Change

Inte

rnal

En

vir

on

men

t (I

E)

Identification Analysis Trigger for change

(1) Facilitation towards executions of

employees‟ creative initiatives is

low. (Appendix 3)

Even though creativity is recognized, the lack of

facilitation towards their execution will

demoralize employees

High Medium Low

(2) Very low inter-function

coordination. (A7, Appendix 2)

Highly disadvantageous when trying to initiate

cross-functional groups.

Lack of team work results in unrealization of

synergy.

(3) Centralized commercial procedures

(Task 1.1.5)

This could result in delays in carrying out urgent

procedures

(4) Metaphorical analysis on AMW as a

machine. (Appendix 3)

This entails AMW requiring refining of

processes to overcome inefficiencies.

(5) Functional structure & high role

culture (Task 1.1.1)

Extensive control mechanisms will result in

stifling of flexibility, as discussed in chapter 1.

(6) Authoritarian, selling leadership

(Task 1.1.4)

Will stifle employee creativity, employees will

get into a state-of-mind where they must be

spoon-fed of how tasks should be accomplished.

(7) Top-down formulated strategy

(A11, Appendix 2)

Reduces overall strategic flexibility, and can

adversely affect strategic fit with environment.

External Triggers of Change

Identification Analysis Trigger for change

Ex

tern

al

En

vir

on

men

t

(EE

)

(8) High change of automotive

technology (A4, Appendix 2)

With expected growth in demand for electric

cars, equal growth for related services is

expected, to which AMW does not cater

currently.

(9) High bargaining power of suppliers

and customer (A5, Appendix 2)

Due to high dependency on suppliers, and

dynamic nature of customer requirements, being

unable to proactively address their dynamics will

result in losing customers/suppliers.

(10) Lack of competitor intelligent

systems (A2, Appendix 2)

Will reduce ability to counter competitor

movements in exploiting new opportunities.

Evaluation of Drivers & Resisters of Change

Illustrator 2.5 depicts a force field analysis developed by basing the drivers and resisters of change on the analysis of

audit findings carried out in the preceding task.

Table 2.1

Table 2.2


18

Accordingly, it is evident that drivers-for-change overpowers the resisters (49 > 42). But it is imperative to realize that the

two dimensions vary on the slightest of margins, which reveals that the process of executing the change-program will

meet various impediments along the way.

Accordingly, the scope of the proposing IM plan attempts to encompass above mentioned elements, in order to drive

change within AMW.

2.1.3 Phase (3): Scope: Exploration & Creativity

Third phase of change-management considers innovative/ creative solutions to address triggers, discussed in task 2.1.2.

Accordingly, IM plan attempts to improve upon the limitations exemplified in current sales orientated (task 1.1.2)

towards achieving market orientation.

Ch

an

ge

an

d i

mp

rov

em

en

t a

t A

MW

Internal-Environment

Limited facilitation for employee initiatives (5)

Low Interfunctional-coordination (7)

Lapses in centralized commercial procedures (4)

Limitations of functional culture (8)

Authoritarian leadership resulting in loss of

creativity encouragement of employees (8)

External-Environment

Dynamic nature of contemporary automotive-

industry (9)

Bargaining power of suppliers & customers (8)

Drivers of Change

The established functional structure has resulted in

task-specialization of employees, so they will be

reluctant to accept new ways of doing things. (8)

Resisters of Change

Since AMW is currently undergoing expansion,

decision makers will be reluctant to allocate money

elsewhere (9)

Sales oriented strategic approach emphasizing on

short-term bottomline, than long-term sustainability

(8)

Stringent process regulations of the managing-body

– Al Futtaim (8)

High financial syndrome providing immense

importance of financial stability, which limits

process innovation + commercial flexibility (9)

Illustrator 2.5


19

However as every good plan begins with the „end‟ in mind (Covey, 1989) the subsequent step would be to document the

objectives.

2.1.3.1 Where do we want to be? : Reaching Market Orientation

Market Orientation and its implications on AMW’s responsiveness

Market orientation is “the organizational culture where beating competition through the creation of superior customer

value is the paramount objective throughout the business” (Narver and Slater, 1990) which, as demonstrated in Illustrator

2.6, operates on three key elements.

AMW demonstrates low-level of market-orientation (A10, Appendix-2). Therefore the scope of IM plan should initially

encompass the improvement of elements within the company which facilitates market-orientation.

Long term

objective Short Term Objectives

Achieve perfect

internal synergy

within AMW,

and achieve

100% market

orientation

within AMW, via

the true adoption

of a learning &

risk management

culture, by 2019.

Improve customer orientation by 52%; against the current score (A10, Appendix 2). Key areas of

improvement:

o Collection/monitoring customers‟ requirements

o Customer-satisfaction assessment

Achieve 60% enhancement in competitor orientation – Ensure a 12% increase in all competitor-

oriented elements (A10, Appendix 2), across 5 years.

Achieve 34% increase in the long-term perspective by emphasizing on internal-efficiencies as key-

element for market-improvement.

Improve inter-functional coordination by 65%. Key areas of improvement:

o Increase structural flexibility – adopt flat matrix structure (task 1.2)

o Improve functional-integration in satisfying customer-needs, by 60%

Improve AMW‟s person-culture by;

o Developing a management which focuses on customer issues, and emphasis delivering

customer-satisfaction.

o Developing employee-reward systems for market performance

Table 2.3

Responsiveness to change

Narver & Slater Model of Market Orientation Source: Extracted from Diasz, (2013)

Illustrator 2.6

Inter-functional

Coordination

Competitor

Orientation

Customer Orientation

Long term

profits


20

2.1.3.2 Establishment of scope for the IM plan

As per Hooley et al (2004) the scope of internal marketing ranges from delivering high standards of quality service,

developing effective internal communications, managing innovation with organization and as the implementing strategy

for external-marketing-plans.

As „implementation‟ & „communication‟ will be explained in ensuing discussions, the current attention will be on IM

towards high quality service & innovation-management at AMW.

IM for high service quality at AMW

It is apparent that AMW‟s success largely depends on the

employees who may not be in direct contact with the

marketing division. E.g.: customer-care staff, after-sales

service engineers, procurement agents, assembly-

plant/factory staff etc.

Therefore, IM addresses these employees‟ satisfaction as a

focal point, as that will directly have an effect on the

additional-value created for the end-consumer.

However, illustrator 2.7 shows AMW‟s current position as

„Coercion‟ where external-customer satisfaction is

achieved by changing employee behavior through directive

management and control systems (Refer task 1.1.4).

A significant drawback of this position is that it fails to sustain customer satisfaction, while limiting employee-flexibility.

Therefore IM attempts to realize both internal and external customer satisfaction, to achieving „Synergy‟.

IM for innovation management at AMW

In this regard, Hooley et al (2004) discusses three key dimensions of innovation management, which is applied within the

context of AMW as follows.

Illustrator 2.7

Synergy

Internal euphoria

Alienation

External customer satisfaction

High Low

Inte

rnal

cust

om

er

sati

sfact

ion

L

ow

H

igh

Source: Adapted from Hooley et al (2004) Customer satisfaction: The internal and external market

Coercion

Looking at customer

needs

•Maslow's hierarchy (illustrator 2.4) demonstrates limitations in self-actualisation &aesthetic needs fulfillment of AMW employees, which could potentially make innovation ineffective.

Delivering the goods

•After realising what matters most to the employees, meassures (task 2.1.4.2) can be taken to rectify any gaps that currently persists.

Raising Realistic

expectations

•It is important to make sure that the proposed improvements and that which is communicated to employees is realistic, as unrealistic expectations will result in employee grievances

Illustra

tor2

.8

2.7

Dimensions of Innovation Management Source: Adapted from Hooley et al (2004)


21

2.1.4 Phase (4): Shape, Design and Planning

After determining the objectives and scope of change for AMW, the designing and planning of IM plan can be initiated.

2.1.4.1 Internal Market Segmentation The employee base of AMW is segregated according to the level of commitment which they would portray towards

the change program, as follows:

Internal Market

Segment Key Characteristics

Example of employee segment at

AMW

Initiators Employees who identify need for change Sales and Marketing employees

Campaigners Employees who sees benefits of change Directors, Senior-managers, Key

shareholders

Opponents Employees who actively resist change Operations and Accounts employees

Neutrals Employees who are yet to be convinced / disinterested in change Part-time workers/ in-plant trainees,

interns

2.1.4.2 The Internal Marketing Mix In designing the marketing mix for AMW, it is customized for internal employee segments as follows:

Marketing

mix Initiators Campaigners Neutrals Opponents

Product The product will be the “Change Management Plan” itself. It will be the plan of creating AMW a learning

organization, through the adoption of innovation and flexibility, facilitated by market orientation.

Price

Limited focus of price, as

initiators will determine

the need to change, ergo

will have high tolerance

on price of change.

Price will be the

sacrificing of other

projects which

competed for resources

with the IM plan.

Price will be; having to step

out of their comfort zones.

Price will be the

psychological price they

will have to bear in terms of

changing procedures,

hierarchies, adopting new

values etc.

Promotion

*(Communic

ation Plan)

-Comm.-objective: Focused on involvement &

morale building.

-Comm.-objective: Involvement building

through Goal Setting

-Comm.-objective: Help employees to relate to

rapidly changing

environment and its

implications

-Comm.-objective: Damage control, Countering

pessimism

-Communication Mix: Advertising: Through

magazines and newsletter

- Communication Mix:

Direct mail: Memos to

BoD, and internal email

Sales promotions:

Recognition schemes of

change stars

- Communication Mix: Advertising: Notice boards

& newsletter

Sales promotions:

Recognition schemes of

change stars.

- Communication Mix: Personal Selling: Face-to-

face meetings, employee-

conferences

Personal Selling: Incentive

schemes, and bonuses

-Key-Message: On the hasty

implementation of the IM

plan

-Key-Message:

On how change-strategy

will improve AMW‟s

bottom-line.

-Key-Message:

On positive aspects of

change, and benefits of

embracing it.

-Key-Message: On how change will not

alter work-

procedures/hierarchies for

the worst, but for better.

Place

Briefings & staff training

sessions; done as soon as

approval for change is

received.

Formal meetings at the

AMW “cinnamon”

board-room

Committees and staff

seminars

Informal conversations,

Social occasions &

workshops.

Ultimately, the HR division of AMW becomes the ultimate „distribution-channel‟ (Hooley et al, 2004), since it will

streamline recruitments, training & development, and reward systems in line with the internal marketing strategy,

thereby creating a culture which is more adoptive of IM plan.

Table 2.4


22

Physical

Evidence

Delivery of change

implementation by

„initiators‟ via conferences

Presentations done by

change-advocates,

stressing the financial

benefits of change

Display of interactive

videos

Training sessions &

workshops on attitude

building towards change

People

Involvement of teams of

employees, consisting

change-advocates

Involvement of senior

managers who support

change initiative.

Involvement of HR

division‟s senior staff-

members

Involvement of HR

division‟s senior staff-

members and Key opinion

leaders of AMW.

Process Implementation before

notification via e-mail

Discuss with all key-

stake holders and

determining

implementation strategy.

Hold educational forums

and gain support for joint-

implementation along

with advocates

Hold negotiations with

unions in an attempt to reach

consensus

2.1.5 Phase (5): Action, Implementation and Control

This could be determined as the most vital phase of change management, since it will entail physical implementation of

change within the company.

2.1.5.1 Internal Marketing Execution & Implementation Successful implementation of change depends on successful execution of the IM. Hence it is vital to precisely understand

what elements of AMW needs changing, degree of change required, and how to consolidate change.

The following 3 step model introduced by Kurt Lewin (1947) is used for change implementation at AMW.

(i) STEP 1- UNFREEZE

A) Examine the Status Quo

The gap analysis (Task 1.1.7) depicts limitations across several aspects within AMW. Such limitations will reduce the

company‟s ability to realize objectives, stated in task 2.1.3).

Illustrator 2.9

Kurt Lewin‟s Change management model Adapted from: Kurt Lewin: Human Relations (1947)

•Examine Status Quo

•Increase Drivers

•Reduce Resistors

Unfreeze

•Take Action

•Manage Change

•Involve People

Change

•Establish new ways

•Reward Desired outcomes

•Consolidate Change

Refreeze

Table 2.5


23

B) Increase Drivers & Reduce Resisters

- In order to capitalize on the drivers of change (task 2.1.2), AMW should communicate them across the company, and

heignten employees‟ awareness of the need for change. At the stage, it is imperative to recognize who the

„campaigners/initiators‟ of change are, as they will facilitate proactive communications in favor of change.

- The most significant resistence for change can be expected from „opponents‟. Accordingly, the marketing mix (Task

2.1.4.2) should successfully target their concerns and communicate effectively.

Communication – A Vital Element of “Unfreezing”

- The key to capitalize on drivers and reduce resisters, becomes informing the employees and all other stake holders of

the necessity of change, which should reach the employees through formal means, before grapevine and rumours.

Therefore communication becomes a vital point of success for the change program.

- It is imperative to make the communication process a transparent two-way process between the leaders/change

initiators & employees/change opponents via employee consultations. For this purpose, the stages-of-employee-

consultation-and-negotiations model by Cockton (2005) can be used.

Stage Application to AMW

Preparation Highlighting the underlining need for change (gaps) & objectives of the change, discussed in task 2.1.3

Approach Negotiate on a platform consisting opponents and campaigners, and discuss the implications of change

towards future success by illustrating a possitive image of the future of AMW, as well as the individual

employee‟s benefits.

Consultation Invite all members-of-negotiation to put forward alternative opinions, and discuss their viability, without

imposing decisions on changes.

Treaty Document the consensus reached at the negotiations and circulate across all stakeholders of IM.

(ii) STEP 2 – CHANGE

A) Take Action to Implement Change at AMW

This step addresses physical execution of IM at AMW, through then implementation of recommendations made in task

1.2, towards the achievement of predetermined objectives, stated in task 2.1.3. It should be noted that the below

mentioned are only the underlining changes needed to develop market-orientation at AMW.

Element Change executed Evaluation of Implications

Structure - Reduced middle level managerial layers & create a

matrix structure with cross-functional project teams.

-Will create resistance from line-managers being

impacted

-Will create facilitation from employees being

empowered from wider span of control

Operations - Reduce bureaucracy and eliminate value-reducing

procedures

-Will increase efficiency, and speed of decision making,

thereby increasing operational flexibility.

Training - Increase outbound training

- Improve intranet to support learning & development

- Expand ERP systems to facilitate knowledge

management

-The skill-building and capability-enhancement of

employees will allow gaining their support. This will

create campaigners.

Human

Resource

- Initiate employee recognition schemes.

- Create „AMW change stars‟

-Will further develop initiators through the recognition of

employees who embrace and facilitate change.

P

A

C

T

Table 2.6

Table 2.7


24

B) Managing Change – Essential for Winning Employee Engagement

Neuheimer (2010) identifies change as a journey which should be careful managed spread across anextensive time frame

without imposing it as a destination.

The journey-of-change is bound to flow across several stages, with each stage having a different level of acceptance

towards change (illustrator 2.10).

As mentioned above, the reaction to change may differ from one employee segment to another. Hence the change journey

should be identified, customized accordingly.

Opponents & Neutrals Campaigners & Initiators

-Shock, Denial and Confusion-

High – They will see negatives of flat structures and

decentralizations. This will lead to high uncertainty and adverse

notions on impending change.

Low – They will see benefits of change, but there is a

possibility of them being less optimistic when realistic

implications of change are unearthed.

-Anger/Resistance & Reluctance-

Despair – Especially the managers, whose autonomy is reduced,

will actively resist the change. Hence it is vital to prevent

complete-withdrawal of these employees at this point, as it could

breakdown the change-journey.

Doubt – The initial enthusiasm could be changed to doubt,

hence it is important to highlight key benefits of change.

-Understanding & Full-adoption-

Exploration – The confidence towards change will gradually shift

to positive, but it is vital to consolidate this by continuing on the

learning and development.

Engagement – Since campaigners of AMW consist majorly

top-tier leaders, and market-driven employees, efficiency-

improvements/cost-cutting within AMW can be leveraged as

focal-points to win their engagement.

Rea

ctio

n t

o C

ha

ng

e

Time

Shock

Denial & Confusion

Anger & Resistance

Reluctant Acceptance

Understanding

Full Adoption

Reaction to Change Source: Adapted by Wilson et al (1993)

Change Change Accepted

Illustrator 2.10

Table 2.8


25

(iii) STEP 3 - REFREEZE

A) Establish New Ways – Post Change-Implementation at AMW

At this point, the change is established, and the engagement of all internal-employee segments has been attained through

employee negotiations, consultations, and the change-journey has reached full adoption at AMW.

In such context the following Mckinsey‟s 7S framework depicts the semblance of AMW, once the recommendations are

carried-through the company, through the strategic change-management program, facilitated by internal-marketing,

discussed throughout task 2.1, thus far. “Effective organizations achieve a fit between these seven elements” (Hanafizadeh

and Ravasan, 2011).

Dimension Consolidated Change at AMW

Structure

Flat, matrix organizational structure;

Facilitating inter-functional corporation,

Wider span of control.

Strategy

Emergent strategic approach;

Facilitating operational flexibility,

High responsiveness to environmental-changes.

Staff

High employee satisfaction and positive attitudes displayed throughout; Actively participating in supporting change to become „AMW Change Stars‟

Better strings of communications with senior-managers

Style

Transformational leadership achieved through;

Sub-ordinate centered transformational leadership

Enhanced employee-empowerment through enhanced accountability

System

Efficient IT systems development;

To enhance the productivity of ERP systems linking knowledge hubs of different divisions

Facilitating retrieval of information to further develop competitor intelligence

AMW Corporate blog for internal communication – for employees to voice their concerns

Skills

Overall capability development of employees/employers alike through;

Cross functional team operations

Career-development programs for overall capability/skill development, than just vocational training.

Shared

Value

Enhance the strength of „documented‟ values; By practicing employee empowerment and capability development

Through integrative effort towards achieving customer satisfaction

By establishing „employee strength‟ as a key resource in achieving competitive advantage.

B) Reward Desired Outcome & Consolidating Change

One strategy of rewarding desired outcome is through the active recognition of “AMW Change Stars”. But the

change program should be able to recognize short-term gains of change, and share their information with all stake-

holders of the change program.

Change consolidation is the ultimate phase of change-management process, which will be discussed in task 2.1.6.

Table 2.9


26

2.1.5.3 Budget Allocations and Time Frame

LKR („000) 2015 2016 2017 2018 2019

1) Infrastructure & Resource development

Value Chain Realignment 20,000 20,000 18,000 18,000 14,000

Report hierarchy and structural configuration 4,000 4,000 4,000 - -

Installation of Competitor Intelligence Software (CIS) 8,500 - - - -

Development of AMW corporate blog 2,000

2) Learning & Development Enhancement

Intranet development for online learning 2,000 2,000 2,000 2,000 2,000

ERP system expansion for knowledge storing/sharing 8,000 6,000 - - -

Outsources skill development training for CFT‟s. 4,500 - - - -

Outbound training for team-work and communication 5,000 5,000 5,000

Trainings leaders for EQ development 5,000

3) Human Resources and Culture Realignment

Employee Recognition for change facilitation

Cultural alignment to market orientation 8,000 8,000 10,000 10,000 10,000

4) Internal Marketing Communications 4,500 4,500 4,500 4,500 4,500

TOTAL BUDGET 80,000 53,000 52,000 43,000 44,000

A significant proportion of budget allocation is targeted towards infrastructure and resource development. (Illustrator

2.11) because as it was identified in the gap analysis (task 1.1.7), the procedures and structure were the elements which

characterized extensive inflexibilities

2.1.6 Phase 6 – Unit Consolidation & Learning

Once the change is executed and implemented across AMW, the consolidation in procedures, hierarchies, culture,

resources etc. is vital in maintaining the momentum of change and encouraging the reinforcement of desired values and

attitudes towards market orientation at the company.

41%

18%

33%

8%

Budget Allocations Infrastructure &

Resource development

Learning &

Development

Enhancement

Human Resources and

Culture Realignment

Internal Marketing

Communications

Illustrator 2.11

Table 2.10


27

2.1.6.1 Institutionalizing the Change through Learning & Coaching As depicted in illustration 2.12, learning and transferring is a cycle which continuously realigns the organization‟s

learning and transference of knowledge, in accordance to the changing requirements, thereby ensuring the sustainable

consolidation of its intended objective – change management.

Consolidation of change will be enabled through the use of following learning model.

Learning Stage Recommendation Implication on Change Consolidation & Learning

Learning Needs

Identification

Survey employee attitudes concerning vocational

requirements to embrace new-ways of doing-things. E.g.:

Advanced SQL/Excel, Using knowledge-hub of AMW etc.

Will be helpful in realizing employee

concerns/confusions regarding changed procedures.

Establishing

Contexts Develop key areas to be addressed through learning

Will improve the efficiency of learning by having a

focused strategy.

Learning Design Document key objectives of systematic learning

Will facilitate evaluation of learning accuracy

after the transfer is complete

Support Systems Embracing the established decentralized-(two-way)

communication systems

Improved ability to coach and mentor employees

through learning process

Learning

Solution ERP systems training for employers/employees in

storing/retrieving/using company knowledge hub.

Will facilitate reviewing the experiences of change

and their implications

Learning

Transfer Making use of reconfigured intranet and communication

systems, in transferring learning gathered by employees.

Will be a testament to the effectiveness of learning

& minimization of future mistakes

Learning

Evaluation

Periodic review of employee attitudes towards change, and

comparison against objectives.

Will facilitate informing of future

changes/improvements so success can be repeated.

2.1.6.2 Internal Marketing Evaluation In order to consolidate change and maintain the momentum for success of future changes, it is necessary to evaluate the

implemented internal marketing strategy.

How to evaluate Internal-Marketing?

Conduct quarterly attitude-survey, to identify shifts in employee concerns/satisfactions.

External-customer satisfaction surveys, to determine shifts in customer satisfaction, number of complaints etc.

especially in functional areas of employees who were directly addressed through IM.

Track the progress of cross-functional project teams, and results achieved through synergy, through;

Learning need emerges, identified

Establish Contexts

Set objectives & learning design

Support Systems, workplace preparation

Learning Solution

Implementation/ Transfer of

learning

Evaluate the learning

Systematic Learning & Transfer Model Source: Adapted from Cockton (2002)

Illustrator 2.12

Table 2.11


28

o Lead-time in planning vs. execution

o Number of complaints from members

o Financial viability of strategies implemented

o Communication between members

Identify the employees‟ use of double-loop learning by assimilating how many times root-subject-matter is realigned/

reconfigured, in solving problems.

Identifying on a quarterly basis, the number of creative ideas/ initiatives which have been demonstrated by employees.

2.1.7 Barriers and Potential Challenges for Internal Marketing Meek et al (2008) identifies the following potential barriers of IM.

Potential Barrier/Challenge for IM Recommendations to Overcome Barrier

Opponents‟ strong & valid arguments -Before negotiating, gathering strong tangible/intangible evidence to counter arguments.

Potential for staff-turnover

-Communicate implications of change before its implementation,

-Use humor as a tool of reviewing change

-Confront ambiguities and demonstrate optimism for future

Financial challenge due to high cost -Establish ROI over desired levels – reach optimum levels. Spread the return over 5 year

period.

Difficulties in gaining inter-

departmental support

-Create cross-functional project teams consisting senior-managers & employees of all

divisions, with a responsibility of achieving project objectives/goals.

Time insufficiencies in implementation -Plan at least 6 months ahead of implementation, taking into consideration situational

implications on the internal-marketing program.

2.2 CRITICAL ASSESSMENT OF AUTHOR’S OWN LEADERSHIP STYLE

The internal marketing plan discussed above, entails the execution of several significant changes within AMW which will

therefore require the marketing manager – being the author – to perform the role of change agent within AMW, and

maintain the momentum-of-change across the company to ensure its success.

2.2.1 Identification of Author’s Leadership Style & Its Implications on IM

Implementation Hence the current leadership style of the author should be assessed to determine the level of facilitation it will portray on

executing the proposed changes. Accordingly, a 360-degree leadership survey (including self, peers, superiors &

subordinates within survey sample) was conducted (Appendix 4) and the findings are interpreted through the Blake &

Mouton (1964) grid as follows.

1, 9

Country Club

9, 9

Team Leadership

Impoverished

1, 1

Authoritarian

9, 1

1, 2, 3, 4, 5, 6, 7, 8 9

9

8

7

6

5

4

3

2

1

Conce

rn f

or

Peo

ple

Concern for Tasks

Middle of the Road

5, 5 3.6, 7.6

Author‟s leadership style identification Source: Blake & Mouton (1964)

Table 2.12

Illustrator 2.13


29

Author‟s current leadership style is identified as “authoritarian”, where leader retains autonomy/majority consideration in

decision making, employees are provided with clear expectations of task (Lewin et al, 1939). Implications of this would

be following:

Features “supporting” IM plan implementation Features “restraining” IM plan implementation

Focus on schedules will ensure timely implementation Will fail to empower employees

Tight hold of decision making will ensure intended

objectives will be met.

Transactional nature of leadership will restrict true form

of employee engagement

Will develop task-discipline on employees Lack of emotional-intelligence will limit ability to

empathize with employees

Strong analytical thinking will reduce margins for error Autocratic nature will reduce the possibility of converting

„opponents‟ into „campaigners‟

2.2.2 Developing the Ideal Leadership Style It is apparent that the ideal leadership style for

leading change at AMW will require a significant

amount of concern-for-people, as well as for tasks.

Ergo, with reference to Blake-and-Mouton model of

leadership (1964), “Team Leadership” can be

determined as most appropriate for the author.

In such context, the author will be adopting a

supportive role (Hersey & Blanchard, 1982) rather

than directive which is the ideal leadership for IM

implementation at AMW (illustrator 2.14).

2.2.2.1 Developing Author’s Supportive/ Participative Leadership-

Development

Needs How to Develop? (Evaluation) Why Develop? (Justification)

Passion towards

grooming-

subordinates

Consider employee capability developed

as a key success determinant of the

project

Will encourage the allocation of more responsibility and authority

to employees, while mentoring which in turn will empower them.

Emotional

Intelligence &

Empathy

Undertaking extensive reading of books

such as Emotional-Intelligence: Why it

can matter more-than IQ (Goleman,

2009).

Once he masters his own emotions and learn its implications on

others, he will have higher empathy with subordinates, peers, &

superiors, which is vital in gaining majority acceptance towards

IM plan.

Stewardship Regenerate academic knowledge on

leadership

Attend external learning &

development programmers

Will result in the author making a holistic effort with his team

towards improving the state of AMW better/more adaptive, and

sharing the positive outcomes with his team.

Higher enthusiasm

in accepting

challenges

The emotions of the author (as the leader) have a high chance of

being transpired across his team. So if he demonstrates great-

enthusiasm in the face of a challenge, same sentiment may emerge

within team.

S3

S4

S2

S1

Support

ive

Beh

avio

r

Directive Behavior High Low

Low

H

igh

Situational Leadership Model

Source: Hersey & Blanchard (1982)

Table 2.13

Illustrator 2.14


30

2.2.2.2 Personal Development Plan (PDP)- The following two year PDP (along with projected budget allocation in LKR) is designed, according to specific

development needs of author.

Development

Element

2015 2016

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

EQ Training 0.1

mil

0.1 mil

Team building/

motivation skills

0.2 mil

0.2

mil

Delegation ability 0.1

mil

0.1

mil

0.1

mil

Two-way

communication

0.2

mil

0.2

mil

Negotiation skills .02

mil

Stress Management

0.3 mil

0.2 mil

Coalition Building 0.1

mil

0.2

mil

Anger Management

Total LKR 1.3 Million (2015) 1 Million (2016)

2.3 CONCLUSION

This internal marketing plan discusses the execution of change management at AMW towards improving flexibilities and

overall responsiveness of AMW, along with an evaluation of author‟s own leadership development requirements for

successfully carrying out such change at AMW as a „change agent‟.

Table 2.15


31

Chapter

-Three-

Briefing Paper

-Business Risk Mitigation through

Internal Marketing-

By: Damien Patterson

Manager, Marketing

Date: 06th November 2014

Subject Matter: The importance of focusing on business

risk as a management priority, and the

implications of the proposed internal

marketing plan on AMW‟s risk

management


32

3.1 ABSTRACT

This briefing paper outlines the types and levels of risks that AMW is exposed to, across multiple functional areas, arising

from both within the company, and from the external-environment. It further discusses the significant implications of such

risks to the company, at a tactical, operational or even at strategic level, if left unaddressed. Ultimately a comprehension

of how the revised internal-marketing strategy, as discussed across task 2, will effectively reduce the exposure of AMW to

such risks will be undertaken.

Keywords: Risk, Hazard, Uncertainty, Risk Management, Risk analysis, Mitigation, Internal Marketing, Risk Matrix

3.2 BACKGROUND INFORMATION Changing market conditions, variances in the competitive arena, and numerous internal-dynamics, lead to the creation of

“risks” within the business environment. Numerous management-theorists have universally accepted and defined “risk” as

the probability of an event and its consequence (Kaplan and Garrick, 1981).

Knight (1921) has provided the fundamental differentiation for „risk‟ and „uncertainty‟ where he defined the former as

measurable uncertainty and the latter as immeasurable uncertainty.

Accordingly Risk Management can be identified as the practice of using processes, methods and tools for managing these

risks. Similarly it is of vital importance that AMW focuses upon risks, their implications and prevention mechanisms to

ensure sustainability.

3.3 ANALYSIS This paper identifies four steps through which risk management can be transpired within AMW.

1) Risk identification

2) Risk analysis and assessment

3) Risk management and mitigation

4) Risk reporting and policy

3.3.1 Risk Identification at AMW As initial step, it is important to realize the type of hazards (potential harm on someone/something) and the risks

(probability of negative consequence of hazard) (A22 / A23, Appendix 2).

3.3.1.1 Identification of Sources and Nature of Risks The following depicts a holistic scenario of the risks associated with AMW and their implications.

-Internal Sources of Risks-

Type of

Hazard

Cause(s) of risk Analysis of implication Propensity

of Risk

Financial Current Expansion Phase

(task 2.1.2) With current expansion of AMW into non-related industries, the short-

term financial stability of the company will be highly dependent on the

success of such investments and reserves. Moderate

Health and

Safety

Machinery, Island-wide

Parts transportation, In-

office electricity

Calamities concerning machines & vehicles will portray severe

consequences to employees‟ health and legal predicaments. Moderate/

High

Third-Party

(Customer)

Vehicle functionality Possible malfunction of vehicles sold to customers, will lead to adverse

outcomes which could affect the entire company and its brand image. Moderate

Leadership

Competence

Authoritarian Leadership

(task 1.1.4)

Transactional nature of this leadership-style might bring short term

gains, but will fail to facilitate sustainable employee empowerment and

satisfaction. High

Operational Bureaucracy &

inflexibilities (task 1.1.1)

Operational inflexibilities will have an adverse ripple effect on overall

commercial flexibility and innovation, as discussed throughout Task 1. Moderate

Table 3.1


33

These internal sources of risk or internal-hazards are unearthed from within AMW. Therefore, they have a certain degree

of controllability, which drastically reduces the propensity of adverse consequence from such risks.

The ensuing table depicts external sources of risks, which; due to their uncontrollability, entail a higher propensity of

adversities.

-External Sources of Risks-

Type of

Hazard

Cause(s) of risk Analysis of implication Propensity

of Risk

Political Change in political

power

A change in the ruling party may entail changes in regulatory policies.

It will also affect Taxes, charges, VAT, etc.

A change in budget allocations will have an effect on AMW‟s plans which

were made in parallel to the budget.

High

Social Creation of newly

rich income groups

If their needs are not duly met, it could mean the loss of a key customer to a

competitor, which results in opportunity cost of his/her entire customer-

lifetime-value (CLTV). High

Technological

Revolutionary

innovations in

automotive

The automotive industry is faced with frequent innovations, which will

derive the „first-to-market‟ opportunities.

But if technology failed, it will entail severe financial predicaments. Very-High

Environment

al Risk

Extreme weather

conditions

AMW‟s factory and plants being centrally located in Kalutara, a region

which experiences frequent floods, may disturb the productivity, or worse,

cause physical damage to employees and machinery. Very-High

3.3.2 Critical Analysis and Assessment of Risks at AMW Risk analysis at AMW will enable the assessment of the probability and magnitude of loss each identified risk item

(Boehm, 1991).

3.3.2.1 Analysis and Assessment It is evident that an array of elements, both within and outside the control of AMW, with varying extents of impact, has

exposed AMW to risks, thereby developing the company‟s need to take proactive measures towards reducing the potential

adverse effect.

-Competitive malpractices (undercutting etc)

-Social risks associted with newly rich

-Pressure group influences

- Relentless innovation in global automotive industry

- Falling share prices

- Market risks of liquidity

- Environmental damage for products in transit

- Products liability risk

-Natural Disasters - Floods in factory area

-AMW Executive kidnapping

-Human rights violation related implications from global

NGO's.

-Machinery Failures & employee accidents

- Factory employee union action

- Product default risk

- Bureaucracy preventing agility

-Leadership stifling creativity

Wide Impact

Local

Controllable Uncontrollable

Table 3.2

Illustrator 3.1


34

Assessing risks at AMW The risk assessment of AMW further categorized risk based on probability of the occurrence of risk along with the

severity of the consequence it may portray on the company (A15, Appendix 2). It was further able to identify the time-

perspective of such risks. (A17, Appendix 2). In such context, the following figure demonstrates the preliminary action

AMW should exercise.

3.3.2.2 Developing Criteria to evaluate risks with high propensity With regards to the risks identified in task 3.3.1 and the evidence derived through it; demonstrating the severity of

external environmental changes, the contingency planning for such damage limitations should be targeted towards

eventually enhancing AMW‟s responsiveness to these changes.

As a preliminary step, it is imperative to evaluate the impact of risks generated through external environmental change.

External

Environmental Risk

Criteria for Evaluation

Political: Change in

Power

The probability of change in ruling political party

The % change of import taxes and VAT

The effect on lobbying power for competitors and AMW

Change that should be made in plans developed by AMW in accordance to the 2014/15 government budget.

Social: Newly rich

consumer segment

% increase in newly-rich consumer segment

% growth in spending on different automotive categories

Implications on developing CLTV of AMW‟s customer base

Rate of adoption of innovation in automotive

Technological:

Innovations in

automotive

Feasibility of adopting innovation in Sri Lanka

Cost of adoption

Level of internal adaptability of AMW to innovation

Training needed for sales and technical staff

Environmental:

Extreme-weather

conditions

% of rain fall expected in Kalutara region

Level of precautionary measures to reduce possibility of floods

Potential damage for raw materials, in transport and storage, due to weather.

3.3.3 Managing and Mitigating Risks of AMW through Internal-Marketing This paper recommends the risk-reduction & transferring strategies for risk-mitigation at AMW.

3.3.3.1 Risk Reduction through Internal Marketing The internal marketing plan discussed in Task 2 discusses the executing change within AMW to improve its overall

flexibility.

Damage

Limitation

Contingency

Monitor

Contingency

Contingency

Contingency

Monitor

Monitor

Ignore

Sev

erit

y o

f C

on

seq

uen

ce

Lo

w

M

ediu

m

Hig

h

Probability of Occurrence

High Medium Low

Action Description

Damage

Limitation

Executing measures for limiting financial

damage, productivity hindrance & health and

safety protection from the occurrence.

Contingency Developing pre-defined action plans to be

executed if an identified risk occurs.

Monitor Invigilate the probable risk, to identify its

movement towards, or away from AMW

Ignore

Due to low probability of occurrence,

disregard allocating time & resources for its

prevention

Table 3.3

Table 3.4


35

By having higher responsiveness to changes in the dynamic external environment, AMW will be able to reduce

risks that may have otherwise arisen, and their implications to the company. However it should be noted that the

implementation of change through IM plan (Task 2.1.5) will generate several risks.

Even though the implementation change through internal marketing carries such risks, the level of flexibility improvement

of AMW will potentially overcome the drawbacks (risks). This is because the level of risk AMW is exposed to will be

much higher, if these flexibility limitations are left unaddressed, which means that risk of not changing outweighs the

risks of changing.

3.3.4 Risk Reporting and Policy When reporting on organizational risk, it should be designed for appropriate levels, i.e. strategic, operational and tactical

levels. Accordingly, in order to increase the effectiveness of risk managing within AMW, it would be beneficial to

develop a risk management policy which establishes responsibilities and accountabilities that is aimed at employees

within all three levels.

0

2

4

6

8

10

Cost of

implementation

Training for new

adjustment

Impact on short-term

productivity

Emergent strategic

approach

Learning development

Period of shut down

due to lay out changes

Complexities in flat

structure

loss of autonomy with

wide-span of control

Risk

Illustrator 3.2 Risks of proposed change

0

2

4

6

8

10

Flexibility in

operations

Commercial fleixbility

Adaptability of new

innovation

Level of learning

supporting innovation

Training and

development

Competitor

intelligence

Employee creativity

and empowerment

Efficient use of

organizational

knowledge

Before IM

After IM

Addressing risks through Internal Marketing Illustrator 3.3


36

Level Responsible Personnel Responsibilities and Accountabilities

Strategic

Board of Directors -Create a flat structure to facilitate AMW‟s flexibility

-Allocate resources for risk management

Senior Managers -Efficiently delegate allocated resources for risk-management

-Evaluate line managers‟ risk reports and discuss with directors.

Operational Line Managers

-Maintain a report on risks pertaining to the division

-Establish assistant-managers‟, executive & junior executive level employees‟ KPI‟s in

parallel to AMW‟s risk management policy

Tactical Assistant

managers/Executives and

Junior Executives

-Assess risks at their level and report to line managers

-Be aware of risks and carry out tasks in such a manner to reduce risks

3.3.5 Why should AMW invest in risk management? As discussed earlier, it is apparent that the risks of not changing outweigh the risks of changing. The feasibility of risk

management is further demonstrated through the improvements of various aspects within AMW, which will in turn reduce

the exposure of the company to such risks.

Aspect Risk creating element Recommendation for reducing

exposure to Risk

Expected Objectives

Employee

Attitude

Negative attitude across

multiple elements

(appendix 3)

Reduce risk through internal-marketing:

- Higher learning and development

- Better communication

- Creativity enhancement

- Higher recognition

-Higher employee satisfaction

-Better risk reporting

-Better risk avoidance

Organizational

Leadership Transaction leadership

Reduce risk by developing ideal leadership

style (Task 2.2.2)

- Leadership Training

- EQ development

-Developing transformational leaders

-Higher risk analysis and prevention on

responsible areas

Financial

allocations AMW expansion phase

Reduce risk by;

- Efficient feasibility studies

- Scenario planning on investments

- Hedging of investments

-Maintenance of financial stability and

liquidity

-Managing shareholder equity along

with investments

Factory

Premises

Possible malfunctions in

machinery & equipment

Reduce risk by educating employees on,

- Safety precautions

- How to act in emergencies

- How to prevent accidents

-Maintain health and safety of

employees

-Prevent expensive litigations

Extreme weather

conditions Transfer risk through insurance

-Reduce liability for AMW on

uncontrollable elements

Macro/Meso

Environment

Dynamic changes in

-consumer preferrences,

-technology,

-social trends, &

-competition

Reduce risk by increasing responsiveness

through,

-Flatter structure

-Reduced bureaucracy

Heightened operational & commercial

flexibility

-Overall effective implementation of change.

-Competitor intelligence gathering

-Higher adaptability to environment

-Prevention of reaching organizational

flux

-Higher sustainability derived through

innovation

-Retention of competitive advantage

through effective responses to

competitor-actions.

3.4 SUMMARY This paper discusses the importance of recognizing and acting upon risk as a management priority of AMW, to mitigate

negative consequences which may arise from it. Such risk management is assessed against numerous elements in order to

determine the feasibility of adapting risk management within the company. Additionally, the risk of change and IM

discussed in task two are evaluated to determine how recommended changes will result in reducing risk at AMW towards

achieving predetermined objectives.

Table 3.5

Table 3.6


37

REFERENCES

Task 1

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Johnson, G. et al (2008) Exploring Corporate Strategy: Text & Cases. 8th Edition. United Kingdom, Prentice Hall.

Mehrabi, J. et al (2012) Impact of Customer Orientation and Sales Orientation on Sales' Performance in

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Mone, A. et al (1998) Organizational decline and innovation: a contingency framework. Academy of Management

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Narver, J. and Slater, S. (1990) The effect of a market orientation on business profitability. Journal of Marketing,

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Ndlela, L. and du Toit, A. (2006) Establishing a knowledge management program for competitive advantage in an

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Thomas, W. et al (2001) The selling orientation– customer orientation (S.O.C.O.) scale: A proposed short form.

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38

Task 2:

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Appendices Appendix 1: AMW Company Background

Appendix 2: Strategic Audit

Appendix 3: Attitude Survey

Appendix 4: 360-degree Leadership Survey

AMW's core business sectors are Tyre Retreading, Automotive sales and after-sales services, Lubricants, Batteries &

Tyres and Financial Services (Leasing, Hire Purchase)

History: AMW (Pvt) Ltd was established by Sir Cyril De Zoysa in 1949

as „Associated Rubber Industries Ltd‟, where the company primarily

engaged in Tire-Rebuilding and Manufacturing. Over the years AMW

underwent several strategic related diversifications in the automotive

industry, to establish its position as the leader in the industry.

Current Management: In July 2008, Associated Motorways (Private) Ltd.,

came under the management expertise of Al-Futtaim Engineering (AFE),

a wholly-owned subsidiary of Al-Futtaim group, thereby aligning itself

with the Group Automotive Division's development strategy and the

global strategy.

Legal Classification: Incorporated as a Private Limited Liability

Company.

Th

en

No

w

AMW Local Distribution

Network

The Automotive sector consists

primarily of B2C marketing through

networks of vehicle showrooms (both

major and minor scale showrooms)

across the island.

*The figure illustrates the major

showroom network distribution of

AMW.

Incorporated as a

pioneer tyre rebuilder

Sole distributor

of NISSAN

Sole agency for

distribution of

„YAMAHA‟

motor

Sole distributor in Sri Lanka

for MARUTI Sole distributorship

of EICHER

Sole Distributor

- PIAGGIO

Sole distributorship

for BP-CASTROL

Distributor

for

RENAULT

Sole

distributor -

SUZUKI

AL-FUTTAIM

GROUP Management

AMW Capital

Leasing - 2006

1949

1957

1981

1992

2003 2006

1996

1999

2002

Associated

Autoways (Pvt) Ltd

1993

2005

2.0 Company Milestones

AM

W G

rou

p

Associated Autoways (Pvt) Ltd

Associated Property Development Ltd

AMW Capital Leasing PLC

Associated Motor Lanka Co. Ltd

*Associated Motorways (Pvt) Ltd

*Automotive Unit

Commercial Sales Unit

*SUV‟s, Passenger/Small Cars, Three & Two wheelers

Lubricants, Batteries, Tires & Car care products

Marathon Dag Tire Manufacture/ Cold Processed Tires/ Rebuilt Tires

Land Development, Construction

Leasing, Higher Purchase, Auto Loan, Fixed Deposit, Islamic

Finance

Automall

-SBU PORTFOLIO- -PRODUCT/BRAND PORTFOLIO-

3. SBU & Product Portfolio

-Company Background- ASSOCIATED MOTORWAYS (PVT) LIMITED

Associated Motorways (Private) Limited is the leader in the motor industry in Sri Lanka, representing established international

brands and offering a diverse range of automotive services. With 65 years of experience in the transport industry and operating

in partnership with UAE-based global conglomerate, the Al-Futtaim Group, AMW (Pvt) Ltd is the leading multinational

automotive Group in Sri Lanka.

Company Vision, Philosophy & Values

Source: Marketing Manager, AMW Automotive Division

3. Customer Segmentation of key brands

4. Industry Overview: Market Share Distribution

Segmenting Variable Passenger/Small Cars SUV‟s Three/Two wheeler

Demographic -Income: Moderate earner

-Age: 21- 29

-Income: High/Moderate

-Age: 32-40

-Income: Low/Moderate

-Age: 30-38

Psychographic -Economical/Fuel Efficient

-Value-for-money

-Status seekers

-Performance seekers

-Value-for-money

-Dual purpose requirement

Geographical -Sub-Urban/Urban -Centrally Urban -Rural/ Sub-urban

Behavioral -First-time driver

-Household secondary car

-Adventurous

-Potential Loyalty

Passenger/Goods Transport

-Long distance driving

Figure 1: Income Generation of key automotive

brands

Category Brand % of

total

revenue

Market

Position in

its category

Small Passenger

Vehicles

Maruti-

Suzuki 52% #1

Luxury SUV Vehicles Nissan 9% #3

Three/Two Wheelers Yamaha 28% #4

Source: Business Analyst, AMW Automotive Division

*Maruti/Suzuki‟s proportion of income generation within the

company declined from 62% (2011), 60% in 2012, due to

sharp increase in market demand for Yamaha FZ Bikes and

Nissan Patrol & Nissan Xtrail SUV‟s.

Vision

To be the Company of choice

by providing value based customer

experiences enabled by an

empowered and engaged workforce

1.2 Company

Philosophy

“We believe that the true

greatness of an entity lies in

the power of its people.

Associated Motorways is

what it is today, because of

the mutual respect and

value we place on

customers, employees,

partners and

stakeholders, and our

constant commitment to

sustain and grow these

relationships”.

1.3 Values

Integrity – to principals & partners.

Loyalty – to all stakeholders

Excellence – in every operation

Caring–fostering a supportive

workplace

Equality – to every employee

Source: Business Development Manager, AMW

AMW 24%

United Motors

9%

Kia Motors

11% Prestige

8%

Toyota Lanka 33%

Other 15%

PASSENGER /SMALL CAR MARKET SHARE DISTRIBUTION

AMW 19%

United Motors

24% Kia

Motors 26%

Prestige 7%

Toyota Lanka 12%

Other 12%

SUV MARKET SHARE DISTRIBUTION *AMW holds #3

position in the SUV

market, behind

Kia/Hyundai & United

motors. The sharp

increase in the demand

for 2012 Mitsubishi

Montero helped UM in

gaining #2 position in

the SUV market.

* Toyota Lanka has

been leading the

Passenger Sedan

Vehicle category for

almost a decade. AMW

has secured the #2

market position, owing

to specific brands such

as Suzuki Alto

800/K10 and Nissan

Sunny/Sylphy. Sedan

category further shows

a significant growth in

Prestige motors, owing

to rise in BMW 3/5

series demands.

5. AMW Automotive Unit - Key Highlights

The Financial Highlights*:

2010/11 2013/14 Turnover 14.28 Bn 9.7 Bn

% Growth 14.1% 9.4%

Interest Cover

(Times) 46.4 21.4

Quick asset Ratio 1.67 1.02

Current Ratio 3.28 2.4 *Due to regulations implemented by AMW‟s managing

body Al-futtaim, the actual profitability of the company

could not be indicated.

The Operational Highlights:

2010/11 2013/14 No. of employees 1480 1707

Gender distribution

(Male: Female)

8.1 : 1.9 8 : 2

Inventory turnover 2.6 2.2

Debtors Collection

(Days) 41 29

Value added per

employees („000) 2189 1931

Organization‟s

Climate

(Based on

findings from

„Attitude Survey,

Appendix 3)

Innovation & Creativity Considerably high level of managerial support for employees who take initiative and generate

creative ideas. Below-par level of holistic approaches/brainstorming for idea generation.

Teamwork Very low inter-functional coordination and relationships in carrying out projects and tasks, and the

existence of a common goal/purpose was merely marginally identified across these teams.

Resources &

Challenges Significant availability information to carry out tasks, which is a result of the majority employee

consent towards company infrastructure. Negative feedback on optimum utilization of employees‟

skills/perceived skills.

Communication Employees are not well-informed about company changes which affect them, and two-way

communication with managers are at a very low level.

Metaphorical Analysis AMW as a machine – A machine in need of oiling and fixing.

AMW structure as a ladder – One that mostly does not connect to the top, only a minority finds it as

a ladder climbable to the top with effort.

Performance of

the

Organization

# of Products Launched 2013 – 7 (2 highly successful, 3 successful) | 2014 (YTD) - 9 (5 deemed highly successful)

Cost savings from new

product Cost Saving = 420million (2013 – Implementing of Kaizen, phase 1 & 2 rather than acquiring new

land as vehicle yards.

Proposed projects 4 service centers, 3 new all-brand showrooms, factory equipment expansion

Policies and

Practices

Driving Factors Including 3 new business proposals in management level employees‟ KPI, Planned investments on

related diversification projects.

Resisting Factors Tall authority structure, 4-5 stage approval structures for new project proposals,

Cognitive

Styles

Senior Management

(majority) Cognitive styles demonstrated by SBU Senior Management – ENTJ: Vision focused, Planners,

Strategic, Systematic and Assertive, Pursues achievement and improvement.

Appendix 2: Strategic Audit

A2 SWOT Analysis

Strengths

-High Brand recognition and

Brand Insistence

-Sound second hand market value

-Exceptional After-Sales facilities

-Strong ties with principal agents.

Weaknesses

-High disparity in revenue

distribution across brand categories.

-Limited new product introduction

within last few years.

-Absence of efficient competitor

intelligence system

Opportunities Continuous growth of the newly-rich

customer segments

Positive customer attitude towards green

& electric vehicles

Continuous increase in automotive

promotion/exhibition events

Threats

Intense competition

Growing demand for

competitor Hybrid vehicles

Fluctuating exchange rates

Unstable economic policies.

Easy to imitate Difficult to imitate

Res

ou

rces

Threshold Resources

-Physical resources: Central

Colombo HQ, Spare parts &

machinery, Showrooms etc.

- Human Resources:

Management with industry

experience, Managers‟

training program

Unique Resources - Worldwide Brand reputation

and AMW reputation within

SL.

- Over 50 year partnership with

Key principal agents.

- Island wide

dealer/distributors

Co

mp

eten

cies

Threshold Competencies

-New Market Development

-Network expansion

- Flexible financial resources

for expansion phases.

Core Competencies

-Over 60 years of automotive

presence.

-Sustainable market leadership

in *MRV category.

-Management expertise of Al-

Futtaim

A1 Resource vs. Competence Analysis

A3 Innovation Audit – Drummon & Ensor, (1999)

In 2005 (Then) In 2014 (Now)

Political Political stability with policies

favoring assembly-plant

development

Political instability with policies

favoring importation of extreme-

URV‟s

Econom

ical

GDP growth rate of 6.2%

Low-level of roads and related

infrastructure development.

Increasing fuel & oil costs

GDP G.R. 7.3% with rapid

developments in roads, bridges and

related infrastructure.

High fuel and oil costs

Sociocul

tural

Cost and Safety driven

Overall desire for luxury

automobiles was relatively low.

Less-concern for eco friendly

Luxury and Status Driven Majority

Affordability of luxury.

Increasing attitude towards

ecofriendly and energy efficiency.

Technol

ogical

Moderate technological

developments.

Technological development

included DVD stereo systems and

Rear-A/C etc.

Very high tech. development.

Latter stages of growth in key-less

& Initial stages of electric cars

Legal Business legislations, and import

tarrif

299% for >2000cc & 290% Tax

rate for vehicle imports

Increase in business legislations

Vehicle imports under VAT-free

permits & permit transfers

Growing of interest groups

A4 PESTL Analysis

T. of Substitutes – High

-Other forms of transportation

(bicycle, public transportation,

walking etc).

-Ample amount of other

options in the automotive

industry

Threat of New Entry –Low

-Very high capital requirement

-Government regulations against

licensing agents

competitors

- Volatile laws and regulations

Bargaining power of

customer - High

-Many options available for

customers

-Fairly high price consciousness

in MRV‟s and BOP vehicles

Bargaining power of

Suppliers - High

-As suppliers are principle

vehicle agents, they have a

significant say on the

operations.

Intensity of Rivalry- High: Every single brand has more

than three competitors offering products of similar options at

similar prices, and market leadership is shared amongst at least 5

key competitors amongst 12 overall.

A5 Porter‟s five forces

Dimension Elements

Stories 60 year history, Cyril De Zoysa‟s

legacy, family owned leadership,

Increase in confidentiality after Al

Futtaim ownership, streamlining of

work increasing efficiency after new

management

Symbols All employees driving company brand

vehicles, Directors‟ parking space,

Addressing seniors as Mr. or Mrs.,

Top-rank automobiles to Directors,

Flag-ship vehicle to MD.

Power

Structure

Autonomy on power for senior

management, High power distance, MD

& Finance Director having major

bargaining power over others

Organizat

ional

structure

Functional, rigid structure, Clearly

defined responsibilities, Transactional

leaders, High lead time in decision

making & approval obtainment.

Control

Systems

Complex control mechanisms. Rigid

operational and IT controls, High

authority and approval systems, Target-

Vs. Debt Collection based incentives.

Routines &

Rituals Daily progress reports and daily

objective presentation, Monthly Sales

meeting: review collection as a main

factor, Weekly functional process

reviews.

A6 Value Chain Analysis

Infrastructure: 15 Acre Tyre Manufacturing and Retreading Factory in Kalutara. 4 Acre vehicle assembly point in Peliyagoda.

Island wide showrooms distribution with vehicle carriers. Head office in Colombo, and 2 warehouses.

Human Resources: Over 1700 employees, with 69% in Sales and Marketing. 5 National Sales Managers for separate brands, 14

Regional managers. Quarterly Employee Satisfaction surveys. Sales and Marketing training development programs.

Performance driven incentive schemes. Quarterly technical training for factory employees.

Technology: Efficient ERP system through SAP, to streamline procedures with regards to each division. Other than that,

relatively low advancement in technological infrastructure. Initial stages of Social Media presence for brands, and rigid control

measures with regards to use of internet-related technologies. (wi-fi, Dongles etc.)

Inbound Logistics

Efficient inbound

logistics in imports

from Malaysia, India,

Thailand. Streamlined

procedures to maintain

production/demand

without hindrance.

Operation

Tyre manufacturing

and rethreading.

Distribution of

vehicles, parts, after

sales products to

relevant locations.

Outbound Logistics

Assembled-vehicles

distribution to dealer

points and

showrooms through

company owned

fleet carriers.

Sales and Marketing

Predominant B2C

ATL. Limited direct

Marketing to existing

customers. PR and

print media dominant

marketing.

Services

Free vehicle checkups,

Test-Drives, constantly

improving of after sales

facilities, extended free-

new car service than

competitors.

MA

RG

INS

Procurement: Centralized Commercial Procurement team to handle international and local procurement and logistics

procedures. Separate International/local teams to negotiate/maintain relationships with suppliers and related partners.

Orientation Findings Scor

e

Customer -Collection/monitoring of customer information/needs

-Employees feel AMW policies are directed to satisfy customer

-Assessment on customer satisfaction

-Customization of AMW offerings according to different segments

-Emphasis on building relationships with customers

2/5

3/5

2/5

3/5

2/5

Competitor -Frequent information collection about competitors

-Conducting regular benchmarking against competitors

-Speed of response to competitor actions

-Emphasis on differentiating offerings from that of competitors

2/5

2/5

3/5

2/5

Long-Term

Perspective

-Prioritizing long-term market share & short-term profits

-Emphasis on market-performance improvement over improvement

of internal efficiencies

-Decisions are based on long term orientation

4/5

3/5

3/5

Inter-

functional

coordinatio

n

-Interfunctional communication on customer information

-Working together effectively to achieve customer needs

-Departmental harmony facilitating coordinative service

-Flexibility of the company is high ergo able to seize opportunities.

2/5

2/5

2/5

1/5

Organizatio

nal Culture

-Senior management‟s emphasis given to customer issues in

discussions

-Reward structures‟ direct relation to market performance

-Employees recognize their role in delivering customer satisfaction

-Senior managers‟ level of importance given for delivering customer

satisfaction

2/5

3/5

2/5

3/5

Total Low-Moderate level of Market Orientation 48/100

A7 Market Orientation Survey – Narver & Slater

A8 Cultural Web – Johnson et al (2011)

A9 Strategic Stance

Leaders

Pioneers

Challengers

Follower

s

Nich

e

A10 Ryde‟s thinking Repertoires

Dominant Function Rate (1-5)

Deficit Thinking 2

Rational Thinking 4

Commonsense

Thinking 4

Equity thinking 3

Binary Thinking 2

Sticky Thinking 3

Total of creativity-

stifling thinking

repertoires

18/30

(High)

A11 Planned Vs. Emergent Strategy – Mintzberg et al.,

)

Intended

Strategy

Behavior

Patterns

Deliberate

Strategy

Unrealized Strategy

Emergent

Strategy

REALIZED

STRATEGY

AMW uses a Top-down “formulated” Strategy to realize stated

objectives, through a documented & systematized process.

0

1

2

3

4

5

Lack of

time/cost

Undervaluing

knowledge

Top

Management

undervaluation

of knowledge

Limited

Knowledge

assets

Lack of efficient

knowledge

storing

Limited Access

Secrecy

1) Minor Barrier for knowledge management

2) Trivial Barrier for knowledge management

3) Considerable Barrier for knowledge management

4) Significant Barrier for knowledge management

5) Extreme Barrier for knowledge management

A16 Barriers in Developing Knowledge

Management

- Radical change in automotive technology, may cause a

radical change in social trends

- Competitors setting up assembly plants

- Government regulations on vehicle imports and

restrictions/increments on permit –imports, will

drastically affect demand.

- Japanese current economic slump may affect

production of principal agents such as Nissan, Suzuki,

which in turn will severely affect AMW.

A17 Risk radar

A12 Continuum of Leadership Behavior A13 Flexibility Analysis of Key Elements

0

1

2

3

4

5Structural

Process

HR

Strategic

CommercialFinancial

Learning

Knowledge

mgt

Work

Arrangement

Current Desired

A14 Types & Propensity of Organizational Risk

Type of Risk Propensity Elements

Legal and

Professional Low

All business activities are conducted strictly

adhering to state laws, even acts such as

undercutting and guerrilla marketing are

discouraged.

Financial Risk High

Since company is experiencing a rapid

expansion span, numerous investments island

wide, High debtor provisions.

Health and

Safety Risk High

Health & safety elements concerning vehicles

and their security and safety functionalities

Hostile Action

Risk Low

Due to the non-controversial nature of

industry, very low risk of pressure groups.

Third Party

Risk High

Third-party risk is always associated with

automotive industry, yet precautions are

implemented.

Environmental

Risk Moderate

Extreme weather conditions are very rare in

Sri Lanka. Yet, droughts and floods of

relatively high scale are experienced.

Likeliness

Very Moderate

Less Ext:

Technological

Int: Customer

Ext: Economic

Int: Employee

Competence

Ext: Political

Int: Leadership

Competence

Ext: Delivery

Risk

Int: Customer

Ext: Social

Int: Employee

Competencies

Ext:

Environmental

Int: Financial

Ext: Technical

Risk in

operations

Int:

Ext:

Int: Ventilation

Systems

Ext:

Int:

Plan Monitor

Contingency Plan Reject

Scenario Plan

Sig

nif

ica

nce

Les

s

M

od

erat

e

V

ery

A15 Risk Scenario Matrix

A21 Key findings of Attitude

Survey

A22 Bowman‟s Strategy clock

Hybrid

(3)

Low Price (2)

Low Added

Value/ Low

Price (1) Low Value/

Standard

Price (8)

Increased Price/

Low Values (7)

Increased

Price/

Standard

Product (6)

Focused

Differentiation

(5)

Differentiation

(4)

Low

P

erce

ived

Ad

ded

Valu

e

Hig

h

AMW

Dimensio

n

Description

Structur

e

Tall, Hierarchical Structure with centralized decision

making and narrow span of control.

Strategy Planned strategic approach, which is not suitable for

dynamic environment. Strategies developed without

much/any inputs from employees, but employees are

responsible for implementation of formulated

strategies.

Staff Overall satisfaction towards job roles is low across

front-office and sales employees, many feel like their

talents are not utilized optimally.

Style Leaders „sell decisions‟ without incurring participation

from employees, authoritarian & transactional

approach towards leadership.

System Lack of customer and competitor intelligence systems,

efficient use of ERP systems.

Skills Training & development targeted mainly towards

managers, directive leadership skills derived by high

power control given to top-level managers.

Shared

Value

Even though corporate values are documented, the

practicing of which is observed at a very limited level.

Learning

Stage

Current scenario of AMW Rating

(./5) Learning need

identification

Low recognition of employees‟ learning & development needs

Learning programs directed only towards senior management

Establishing

contexts

The learning areas to be addressed are not clearly recognized. E.g.

successful inter-functional collaboration techniques, effective

CRM etc.

Learning

objectives and

design

Lack of learning programs deployed result in non-identification of

learning objectives. Training programs designed & deployed with

some foresight & credible relevancy to senior management.

Support systems Lack of honest two way communication, technological platform

to implement e-learning and limited sense of shared ownership of

knowledge.

Learning

solutions &

implementations

Under-utilization of in-house ERP and related technology in

deployed learning programs, limited awareness for deployed

learning programs.

Learning

Transfer

Yet-to-see visible transference of learning of the learning

programs deployed in June, 2014.

Learning

Evaluation

Very limited evaluation of deployed programs‟ effectively,

thereby resulting in reduction in future investments in learning

programs

A18 Systematic Learning and Transfer Cycle – Juanita Cockton

Source AM

W

U.M

To

yo

ta

DIM

O

Superior Product

Benefit 6 7 8 9

Perceived Brand

Advantage 7 7 9 10

Low Cost

Operations 7 8 7 6

Legal Advantage 9 9 10 9

Scale

Advantage 9 8 7 10

Offensive

Advantage 6 8 9 8

*1= Lowest, 10=Highest

A19 Sources of Competitive Advantage

A20 Ansoff‟s Growth Matrix

Products

Existing New Market Penetration

-Improved After-Sales

-Increase vehicle issues on

permit

-Focus advertising and

special event sponsorships

E.g. 4X4 Rally

Market Development

-BOP & MRV focus on

North province

- Nissan MRV‟s and

URV‟s for future hotel

chains – e.g. Shangri-La

Mark

ets

New

E

xis

tin

g Product Development

-Mainstream

introduction of electric

cars

- Yamaha jet-ski‟s and

out-bound motors

-New Holland tractors

for local farmers

Diversification

A23 Mckensey‟s 7 S Framework

Assessed element Current

Score Innovation/creativity 49.75%

Cross functional Teamwork 25%

Recognition rewards 55.2%

Learning/Training 30%

Human & Physical resource flexibility 22%

Process flexibility 36%

Communication 37%

Appendix 3: AMW Automotive - Employee Attitude Survey

24 What are your opinions on the challenges facing AMW?

25 What changes do you see AMW making in order to stay competitive?

Statement

Circle which is most

appropriate

Strongly

Agree

=5

Strongly

Disagree

=1

1 AMW's corporate culture facilitates brain-storming and collective idea generation 5 4 3 2 1

2 The managers and supervisors recognize employees with creative ideas and solutions 5 4 3 2 1

3 Employees who take initiative are backed by supervisors' support and guidance 5 4 3 2 1

4 Company is committed to providing competitive products and services 5 4 3 2 1

5 AMW does a good job of recognizing the efforts of employees to improve customer

service 5 4 3 2 1

6 If I do a good job I have a better chance of getting ahead 5 4 3 2 1

7 There is a spirit of we're all in this together across work groups. 5 4 3 2 1

8 I believe that all the divisions in the company interact and work together to achieve a

common goal 5 4 3 2 1

9 I can get the information I need to do my job 5 4 3 2 1

10I have adequate technology to do my job 5 4 3 2 1

11 My skills and abilities are utilized effectively by the company 5 4 3 2 1

12 Employees have equal access to job related training opportunities 5 4 3 2 1

13 My training meets my needs for my current job 5 4 3 2 1

14 I have the opportunity to learn skills that will improve my chances for promotion 5 4 3 2 1

15I generally feel informed about changes that affect me within AMW 5 4 3 2 1

16 AMW supports honest two-way communication between Managers and Employee 5 4 3 2 1

17 I am able to contact Senior Management as needed 5 4 3 2 1

18 I believe that AMW is supportive of my life outside of work. 5 4 3 2 1

19 The number hours I work are satisfactory to me 5 4 3 2 1

20 I understand the policies related to overtime and alternate work arrangements 5 4 3 2 1

21 I believe all procedures relating to do my job are necessary 5 4 3 2 1

22 If AMW was a machine, I see it as a, Well-oiled machine. Machine that needs fixing/oiling Breaking down machine

23 If AMW company structure was a ladder, I see it as a ladder that,

Is climbable to the top with some effort Does not connect to the top-tier Is broken down half-way through

40% 45%

49%

60% 55%

51%

0%

10%

20%

30%

40%

50%

60%

70%

EqualTraining

Job training Training &career

Positive Negative

8) Metaphorical Analysis: AMW As a

machine (Q22) 9) Metaphorical Analysis: Structure

as a ladder (Q23)

1-4 Innovation & Creativity

5-6 Recognition

7-8 Teamwork

9-11 Resources

12-14 Training & Learning

15-17 Communication

18-21 Flexibility

38%

58% 60%

43%

61%

42% 40%

57%

0%

10%

20%

30%

40%

50%

60%

70%

Brainstorming Creativity Initiatives Innovativeproducts

Positive Negative

35%

66% 65%

33%

0%

10%

20%

30%

40%

50%

60%

70%

Recognition Progression

Positive Negative

30% 23%

70% 77%

0%

20%

40%

60%

80%

100%

Work-groups CommonGoal

Positive Negative

60% 69%

41% 40% 31%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Info.Availability

Tech.Infrastructure

Skill utilization

Positive Negative

34% 41%

48%

76%

59% 52%

0%10%20%30%40%50%60%70%80%

Positive Negative

84% 85% 80%

36%

16% 15% 20%

64%

0%

20%

40%

60%

80%

100%

Positive Negative

11%

86%

3%

Well oiled Needs fixing Verge of breaking

28%

68%

4%

Climbable with effort Doesn't connect to top

Broken half-way

Challenges facing AMW – Growing competition, Lack of public awareness of AMW brands‟ affiliation with

the company, Breakdowns in communication leading to lack of coordination, Hesitation in executing creative

ideas, Non-performing brands in the portfolio, Competitors‟ outlook towards introducing innovative

products, Loosing grip on state-agency relationships with competitors winning more bulk-order purchase

tenders.

Changes to Stay Competitive – More focused attention for BTL promotions, Competitor monitoring and

analyzing their movement, Increase employee retention, Inter-departmental relationship strengthening and

create a share vision, Introduce more innovative products in line of customer demand, Develop attractive

Research Analysis {Sample: 24 – (6 employees from 4 sub-divisions)}.

4) Resources (Q9-Q11) 5) Training & Learning (Q12-Q14) 6) Communication (Q15-Q17)

1) Innovation & Creativity (Q1-4) 2) Recognition (Q5-Q6) 3) Teamwork (Q7-Q8)

7) Flexibility ( Q18-Q21)

Statement

Circle which is most appropriate

Always Sometimes Never

1 I encourage my team to participate when it comes decision-making

time and I try to implement their ideas and suggestions. 5 4 3 2 1 0

2 Nothing is more important than accomplishing a goal or task. 5 4 3 2 1 0

3 I closely monitor the schedule to ensure a task or project will be

completed in time. 5 4 3 2 1 0

4 I enjoy coaching people on new tasks and procedures. 5 4 3 2 1 0

5 The more challenging a task is, the more I enjoy it. 5 4 3 2 1 0

6 I encourage my employees to be creative about their job. 5 4 3 2 1 0

7 When seeing a complex task through to completion, I ensure that

every detail is accounted for. 5 4 3 2 1 0

8 I find it easy to carry out several complicated tasks at the same time. 5 4 3 2 1 0

9 I enjoy reading articles, books, and journals about training, leadership,

and psychology; and then putting what I have read into action. 5 4 3 2 1 0

10 When correcting mistakes, I do not worry about jeopardizing

relationships. 5 4 3 2 1 0

11 I manage my time very efficiently. 5 4 3 2 1 0

12 I enjoy explaining the intricacies and details of a complex task or

project to my employees. 5 4 3 2 1 0

13 Breaking large projects into small manageable tasks is second nature

to me. 5 4 3 2 1 0

14 Nothing is more important than building a great team. 5 4 3 2 1 0

15 I enjoy analyzing problems. 5 4 3 2 1 0

16 I honor other people's boundaries. 5 4 3 2 1 0

17 Counseling my employees to improve their performance or behavior

is second nature to me. 5 4 3 2 1 0

18 I enjoy reading articles, books, and trade journals about my

profession; and then implementing the new procedures I have learned. 5 4 3 2 1 0

Appendix 4 – Personal Leadership Style Survey

Source: http://www.bumc.bu.edu/facdev-medicine/files/2010/10/Leadership-Matrix-Self-Assessment-

Questionnaire.pdf

Survey Sample: - Total Sample Size: 13

- The survey sample included the following members:

Self: Marketing Manager

Superiors: Marketing Director, Business Director

Peers: National Sales Manager, 2 Business unit General Managersubordinates: Assistant marketing

manager, assistant brand manager, 5 sales and marketing executives

Survey Findings

Interpretation

According to the leadership survey, the candidate indicates high levels of Task orientation with a score of 7.6.

In contrast, candidate demonstrates moderate-low level of people orientation.

High Task Orientation, and low people orientation indicate low level of emphasis given to people partaking in

projects, and their emotions and career development, but higher emphasis is given to realizing scheduled

timelines, task execution accuracies, work flow management and timely completion of the project(s).

People

Question Avg. Score

1. 2

4. 3

6. 2

9. 2

10. 1

12. 2

14. 2

16. 3

17. 1

TOTAL 18

X 0.2 3.6

Task

Question Avg. Score

2. 4

3. 4

5. 3

7. 5

8. 4

11. 4

13. 5

15. 5

18. 4

TOTAL 38

X 0.2 7.6

0

2

4

6

8

10

12

Never Sometimes Always

People Orientation Task Orientation

Strategy-MLP-Dec' 14- 38444951

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