Business strategic changes and adoption of change
Changi Airport is located in Singapore on the eastern edge, and was inaugurated on 29th December, 1981. This airport is an integral part of the Changi Airport group that was formed to improve the business performances
The airport was constructed on the reclaimed land, where the Changi airbase was located during the World War II. Changi Airport Group had introduced innovative business strategies that set records of achievements.
It is one of the largest airports in the Asian nation, has the largest column-free hangar, which is spread across 20,000 sq meter areas. The quality of the services, promote customer services and in designing one of the world’s best infrastructure that is built on the eco-friendly process. This design has earned the airport many awards and earned it one of the strongest positions of the world.
In the year 2009, the airport was corporatized and named as the “Changi Airport Group.” Earlier it was handled by the civil aviation authorities of Singapore for around 25 years. Post conversion of the airport, the authorities restructured the CAAS and introduced new range of the regulatory issues.
This created a brand name for the airport and improved the quality of the services that were provided to the travelers. At present, the airport serves around 100 international airlines and the planes fly to 330 cities from 80 nations (Muliani, 2001).
The previous version of the airport was simple, and was similar to the other airports. A change in the authority introduced new version of the business conduct, and introduced the changes that were needed to increase the quality of the airport services and infrastructure that were provided to the people.
This report examines the SWOT and PEST analysis for the airport, and examines how the businesses conduct has changed for this centre over the years.
Strengths
- Changi airport has the best co-operative system and strong management team.
- This has created strong connections with the clients and the government and the leaders associated with the airline industrial leaders.
- Executive team management is equipped to handle the challenging changes needed in improving the quality of the clients ( Raymond, 2006).
- The airport authorities have formulated strong strategy that assist in rendering the better quality services and this was possible due to the corporatization
Weakness
- The needs to analyze the stakeholders requirement is a time consuming and a complicated process.
- There is no in-house maintenance department for the planes, and this affects the quality of the services intended to be provided on a timely basis are impacted.
- The management has a good strategy to create a hub, but the execution of the implementation of the strategy values needs more time and efforts (Al hmeidiyeen, 2009).
- The aviation rules across the world are constantly being reviewed and this needs the airline company to introduce the changes for the better execution of the project plan.
Opportunities
- After the corporatization, the business conduct and its quality is being properly being executed by the management
- With the introduction of the new hubs, the quality of the services that are provided to the clients are improved
- The airport has recovered 6 times award for being the best ail[ort of the world
- New strategies for the conduct of the business activities is being planned to be introduced for increasing the service values (Borgelt, and Falk, 2007).
Threats
- Competition in this industry is quite, and thus the management has to plan for allocating the funds to execute the works
- Cost of introducing the changes in the organizations is quite high, and it is necessary to plan for the recovery of the investment.
- Customers prefer to choose an airline service that offers lower priced services. This affects the quality of yet works that is being planned to cater the requirements of the clients.
- Demand for the lower priced services are still on rise, and this has encouraged the company or the airport authority to control the price. Fluctuations in the aviation turbine-fuel costs have affected the business conduct.
- Political factors – Singapore has the lowest risk factor, which makes it one of the most preferred nations. as per the information published on the “Political and economic risk consultancy” Singapore has the highest democratic redoing. People elect their respective representatives and decide to lead the nation. This assures political freedom, needed for improving the business development and growth in different sectors. The standard of living of the people in this region has drastically increased over the years, and this has been due to the stable political conditions that are needed for developing and introducing new measures to acquire the targeted business goals of business growth and development. Changi airport group has been highly benefitted by the existing political condition, as the business expansion could be effectively introduced by the airport authorities (Ferreira et al., 2012).
- Economic aspects – Singapore is one of free market economy, and thus it has a fast developing phase. The per-capita income of the nation is recorded to be the highest in the ASEAN. Policies and strategies are free from corruption thus making it one of the most positive places where the business developmental plan and strategies are developed and introduced. There is higher number of motive people, and educated people who make it one of the most preferred places to introduce the business related challenges. The government introduced a diversifying policy to boost the performances of the economy. However the constraints on the Singapore’s economic factors are associated with the labor shortages, increasing costs of the labor charges, and decline in the productivity. Huge business expansion plans could be introduced and this has motivated the business conduct. The country has been highly benefitted by its geographical locations and connections with different nations to improve the business performances.
- Social factors – The country follows a multi-cultural aspect, just like any other eastern nation. Younger generation is talented and knowledge based, and this makes them adopt new changes and methods for the conduct of the business works. People in Singapore are fast adapting to the new technology which makes it one of the dynamic places to stay in. besides this, the number of people or lower priced labors that could be hired from the neighboring places are quite high. The companies follow multi-cultural practices, which is solely based on talent management and improvement of the businesses. This has highly benefited the Changi airport group that is completely based on the innovative strategies and policies.
- Technological – Singapore is one of the highest technologically progresses nation. The adoption of the technology is done, with an intention of providing people with the best services and at the same time taking care of the environmental factors. This makes the nation quite different and innovative from the others. Changi airport group is one good example where people can witness the adoption of the advanced technology, which is environmental friendly and designed to take care of the people requirements.
- Legal – The legal system is quite stringent in Singapore, as people and companies adhere to the policies and terms. Besides the rules for the business conduct in the aviation industry is quite strict, which makes it quite safe and reliable as compared to the other nations. a defined legal system is followed for analyzing the quality of being and planes that are procured from different nations (Loewe & Chen, 2007).
- Environment – The Changi airport group is a perfect example of the environmental factors that are considered by the management while designing the concept. A unique design has been created, so that the right process is followed for making people aware about the environmental factors and to reduce the issues that arise to the environment. Technology is used for taking care of the environmental issues, which is one of the prime requirements.
- Innovation to change
Nickols, (2006) stated that in a business environment, many factors leads to rapid and quick change like intensified competition, technological development digital and need for the knowledge economy, and others. Leaders and companies firmly need to handle the change and create responsive action plan to deal with it.
Borgelt & Falk (2007) analyzed the relevance of innovation that was integrated with the change management process that was introduced in the Changi airport working system. Changes were made in the communication process with the clients, handling the client requirements, and in introducing new processes to introduce a better method for increasing the value for the services.
With the change management on the other hand is a decision made by the leaders to lead the organization, especially during the change process. These changes help in achieving the desired changes with fewer errors
Changi Airport groups authorities were highly benefitted by adopting the innovation to change process, and this was the reason new terminals were introduced. The changes were done after discussing the project details with the staffs at different levels. This created a response system that encouraged the changes in the airport.
Innovation like change in the operational process and work conduct certainly leads to the change in the overall process. This was the reason Changi airport group was facilitated 6 times for being the best airport of the world. The risks in adapting and implementing the designs were examined, and with the help of the workforce the relevant changes were introduced.
Strategic changes were introduced after corporatization process where a detailed discussion was conducted with the staffs and the stakeholders. The organizational culture was based on handling the talent management and uses an innovative strategy to increase the quality of the services that were offered to the clients.
Through the innovative approach, the internal and external changes in the airport were introduced and this needed the staff’s participation in the change program. Leaders recruited the best talent and adopted an innovative process to improve the business conduct.
Staffs were introduced to the incentive (monetary and non-monetary) system, which encouraged the staffs to improve their performances. Without the innovation to change, the management couldn’t have achieved the targets that were determined by the managers.
- Organizations don’t have a coherent approach to change
Wince-Smith, (2005) analyzed the business strategies set out the guidelines to achieve the goals decided by the management. Strategies could range from implementing a business change or in introducing a new product. Ferreira et al., (2012) analyzed how a coherent approach allows the change that is adopted by the company to meet the production activities for the company.
The changes were introduced in the design selection, implementing proper method to execute the tasks, and in providing a world-class airport to the staffs. The organizational structure was set out clear, as unclear project plans could lead to a serious business related issue.
A prier project reporting process was followed and this assisted in developing the project works, and in introducing the changes that were relevant for improving the quality of the design that were selected.
An incoherent project execution would lead to –
- Improper communication process
- Inaccurate policy implementation
- Delay in the project work execution
- Face huge challenges in the task handling and errors in the works
Change airport followed a strategic evaluation method that was integrated with change management process. However the changes were not based on the coherent approach that was needed for implementing the changes. The airport authorities avoided following the coherent approach that had a direct impact on the business works.
The incidences related to improper planning were avoided and resources were properly used for the creation of the new idea. With the new idea creation, it was possible to evaluate the issues that had affected the quality of the task accomplishment including the design creation and implementation of the better plans.
- Importance of shared information at the project level
Project works carried out at the higher level are usually complicated and challenging. Raymond (2006) examined the quality of the information sharing at the project level are quiet important as it helps in accomplishing the business goals.
Staffs were involved in the task discussion process, which was the prime requirement for the conduct of the business works, including selecting the future development of the project that had to be undertaken by the managers. This feature certainly improved the development of the Change airport and in providing the best service facilities to the clients (Susman et al., 2006).
Changi airport group had undergone through drastic changes that were needed for accomplishing the business goals of rendering the better quality services. The management introduced a proper knowledge sharing process that was done through the communicative process to increase the quality of the project works. Through the information sharing process, the project execution was properly organized and it was used to identify the problem and solve the challenges.
- Organizations defensive routines keep them from embracing transformational change
Defensive routines are the process where a member follows an interpersonal interaction between the people to create and protect themselves (Nickol, 2006). The decisions made by the company could either be of superior quality or low quality.
The management made important decisions that were necessary for increasing the world-class services that were provided to the travelers. Business goal for the airport was to provide a world-class connectivity services that were essential for retaining the business activities and to capture maximum clients.
The factors causing failure to the business conduct and the project execution were properly planned and implemented by the management (Susman et al., 2006). This was the key essential factors that helped in controlling the negative aspects that were associated with the business development and its growth plan. The strategic goals were analyzed for any defensive routines that had a direct impact on the execution of the project work.
It is necessary for an organization not to adopt defensive routines to keep themselves always from the transformational changes that are introduced in the company. For this, the management needs to get involved in an effective planning and task execution process where the leaders analyze the risks and discuss the positive factors associated with the changes.
An analysis is done to conduct the works, and adopt a better method and process for the execution of the project works that are necessary to accomplish the business goals. Changi Airport group has undertaken the necessary changes to increase the quality of the intereiors that was necessary for providing the better services.
Business strategies and policies are quite different, and it needs to be properly introduced by tee managers. A change in the operational level has a major impact on the business conduct, and affects the people management process. Huge businesses could adopt the changes by introducing innovative methods that helped in including people, selecting the best resources and in accomplishing the goals that are necessary for the business conduct.
The changes are introduced after examining the acceptable of the change, and its impact on the people. By analyzing these factors, the leaders could adopt the needed changes and acquire the business goals.
Recommendation
- A change in the internal work culture is needed to include the peoples view to improve the business activities
- Innovative strategies could be included and discussed with the people could be motivated to adopt the changes.
Al hmeidiyeen, M., (2009): Analysis and Evaluation of the Relationship between Change Management and Performance Criteria at Greater Amman Municipality (GAM). M.B.A. thesis in Alzaytoonah University of Jordan.
Borgelt, K., & Falk, I, (2007). The leadership/management conundrum: innovation or risk management? Leadership & Organization Development Journal, Vol. 28 Iss 2 pp. 122 – 136
Ferreira, D., Manso, G., & Silva, A., (2012). Incentives to Innovate and the Decision to Go Public or Private. faculty.haas.berkeley.edu/manso/fms
Loewe, P,,m & Chen, G., (2007). Changing your company’s approach to innovation. Strategy & Leadership, Vol. 35 Iss 6 pp. 18 – 26
Muliani., T. (2001). Changi International Airport”. singaporeInfopedia. National Library Board Singapore.
Raymond, L., (2006). Minister Raymond Lim at the Opening of Changi Airport’s CIP Termina . Newsroom > Archives. Ministry of Transport, Singapore.
Nickols, F., (2006). Analysis and Evaluation of the Relationship between Change Management and Performance Criteria at Greater Amman Municipality (GAM)”,M.B.A. thesis in Alzaytoonah University of Jordan.
Susman, G., Jansen, K., Michael, J., & Bukowski, S., (2006): Innovation and Change Management in Small and Medium-Sized Manufacturing Companies” Smeal College of Business. The Pennsylvania State University.
Wince, S., (2005): The leadership/management conundrum: innovation or risk management?”, Leadership & Organization Development Journal, Vol. 28 Iss 2 pp. 122 – 136
