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Strategy-MLP-Dec' 14- 38444951

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Strategy-MLP-Dec' 14- 38444951

  1. 1. 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
  2. 2. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 1 DELIVERING A CULTURE OF INNOVATION, LEARNING AND RISK MANAGEMENT
  3. 3. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  4. 4. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  5. 5. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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)
  6. 6. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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.
  7. 7. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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.
  8. 8. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  9. 9. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 8 Table 1.3 Illustrator 1.1 Source: Porter‟s Generic Strategies (1985) Competitive Advantage DifferentiationLower Cost MarketScope BroadNarrow 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 ResourcesAudit& Analysis 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
  10. 10. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  11. 11. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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).
  12. 12. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  13. 13. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 21st 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 AmounttoChange
  14. 14. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 (A10,Appendix2) 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
  15. 15. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 14 Chapter -Two- Development of an internal marketing plan in delivering cultural and organizational change, in making AMW a learning organization.
  16. 16. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  17. 17. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 Actuali sation 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
  18. 18. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 InternalEnvironment(IE) 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 ExternalEnvironment (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
  19. 19. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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. ChangeandimprovementatAMW 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
  20. 20. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  21. 21. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 Internalcustomer satisfactionLowHigh 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 Illustrator2.8 2.7 Dimensions of Innovation Management Source: Adapted from Hooley et al (2004)
  22. 22. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  23. 23. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  24. 24. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  25. 25. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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. ReactiontoChange 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
  26. 26. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  27. 27. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  28. 28. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  29. 29. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 ConcernforPeople 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
  30. 30. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 Supportive Behavior Directive Behavior HighLow LowHigh Situational Leadership Model Source: Hersey & Blanchard (1982) Table 2.13 Illustrator 2.14
  31. 31. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  32. 32. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  33. 33. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  34. 34. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 ControllableUncontrollable Table 3.2 Illustrator 3.1
  35. 35. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 SeverityofConsequence LowMediumHigh 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
  36. 36. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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 MarketingIllustrator 3.3
  37. 37. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 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
  38. 38. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 37 REFERENCES Task 1  Argyris, C. & Schon, D. (1978). Organizational Learning: A Theory of Action Perspective. Massachusetts: Addison-Wesley Publishing Co. Cited in: Cartwright, S. (2002) Double-Loop Learning: A Concept and Process for Leadership Educators. Journal of Leadership Education, Vol1(1), pp68-71.  Codrin, V. et al (2012) Flexible organization. Global Business and Management Research: An International Journal, Vol4(3&4), pp277-285.  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 International Market of Bilehsavar County. International Journal of Business and Science, Vol3(17), pp216-222.  Moldoveanu, G. and Dobrin, C (2012) Unity of the organizational functions and flexibility. Theoretical and Empirical Researches in Urban Management, Vol7(3), pp53-61.  Mone, A. et al (1998) Organizational decline and innovation: a contingency framework. Academy of Management Review, Vol23, pp115–32.  Narver, J. and Slater, S. (1990) The effect of a market orientation on business profitability. Journal of Marketing, V54, pp20–35.  Ndlela, L. and du Toit, A. (2006) Establishing a knowledge management program for competitive advantage in an enterprise. International Journal of Information Management, Vol21(2001), pp151-165.  Parasuraman, V. et al (1994). Reassessment of expectations as a comparison standard in measuring service quality. Implications For Further Research, V58, pp111-124, Cited in: Mehrabi, J. et al (2012) Impact of Customer Orientation and Sales Orientation on Sales' Performance in International Market of Bilehsavar County. International Journal of Business and Science, Vol3(17), pp216-222.  Porter, M. (1985) The Competitive Advantage: Creating and Sustaining Superior Performance. NY: Free Press.  Rigie, M. and Harmeyer, K. (2013) SmartStorming: The Game Changing Process for Generating Bigger, Better Ideas. Indianapolis, Dog Ear.  Ryde, R. (2007) Thought Leadership: Moving hearts and minds. Hampshire, Palgrave MacMillan.  Sekhar, S. (2010) Business Policy and Strategic Management. New Delhi, I.K. International.  Senge, P. (1990) The fifth discipline: The art & practice of the learning organization. New York, Doubleday.  Thomas, W. et al (2001) The selling orientation– customer orientation (S.O.C.O.) scale: A proposed short form. Journal of Personal Selling & Sales Management, Vol21(1), pp63-78.
  39. 39. Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951 38 Task 2:  Blake, R., and Mouton, J. (1964). The Managerial Grid. Houston- Texas, Gulf Publishing  Diasz, L. (2013) Strategic Marketing: Marketing Strategies for Sri Lankan Business Entities. 1st Edition. Colombo, Softwave Printing.  Hanafizadeh, P. and Ravasan, A. (2011) A McKinsey 7S Model-Based Framework for ERP Readiness Assessment. International Journal of Enterprise Information Systems,Vol7(4) pp23-63.  Hersey, P. and Blanchard, K. (1982) Management of organizational behavior. 4th Edition. New Jersey, Prentice Hall.  Hooley, G. et al (2004) Marketing strategy and competitive positioning. 3rd Edition. United Kingdom, Prentice Hall.  Kotler, P., and Armstrong, G. (1991) Principles of Marketing: Instructor‟s Resource Manual. 5th Edition. New- Jersey, Prentice-Hall.  Lewin, K. et al (1939). Patterns of aggressive behavior in experimentally created social climates. Journal of Social Psychology, Vol10, pp271-301.  Lewin, K. (1947) Frontiers in group dynamics: concept, method and reality in social science. Cited in: Cartwright, D. (Ed.), Field Theory in Social Science. London, Social Science Paperbacks  Meek, H. et al (2008) The official CIM course book: managing marketing performance. 1st Edition. United Kingdom, Butterworth-Heinemann.  Narver, J. and Slater, S. (1990) The effect of a market orientation on business profitability. Journal of Marketing, V54, pp20–35.  Wilson, D. et al (1993) Introspecting about reasons can reduce post-choice satisfaction. Personality and Social Psychology Bulletin, Vol19(3), pp331-339. Task 3:  Boehm B. W, (1991) “Software Risk Management: Principles and Practices.” IEEE Software, January 1991, pp. 32-42. Cited in: Stern, R. and Arias, J. (2011) Review of risk management methods. Business Intelligence Journal, Vol4(1), pp59-78.  Kaplan, S. and Garrick, J. (1981). On the quantitative definition of risk. Risk Analysis, Vol1(1), pp11-26  Knight, F. (1921) Risk, uncertainty and profit. Boston, Houghton Mifflin.
  40. 40. Appendices Appendix 1: AMW Company Background Appendix 2: Strategic Audit Appendix 3: Attitude Survey Appendix 4: 360-degree Leadership Survey
  41. 41. 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. ThenNow 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 AMWGroup 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.

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