What is Strategic Change?

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What is Strategic Change? A strategic change is a type of change where some general plans, policies of the business are changed. These changes are quite common and simple, something that is quite ordinary. Strategic changes are market oriented and are the first and final steps for market.

Roles in the changing process:

Roles in the changing process The Main Role in the changing process are: The change agent Middle managers 3. Other organizational members

1. The change Agent:

1. The change Agent The change agent: is the individual or group that effects strategic change in an organization. 2. Middle Mangers Middle managers are implementers of strategy and their roles include: Allocation and control of resources Monitoring performance and behavior of staff members Explaining strategy to their subordinates

3. Other Organizational Members:

3. Other Organizational Members Influences will be based on their level of interest and political power. Approaches to managing change will differ from different stakeholders.

Reasons for Strategic Change:

Reasons for Strategic Change The main reasons in the strategies changes are: poor outputs less revenue competitors pressure not completely implemented poor feedback more complicated change of environment public demand change in technology

Strategic change process:

Strategic change process Step one: strategic analysis Analysis of an organizations external environment, its current strategic orientation, and the degree of its effectiveness at meeting its objectives and missions. Step 2: strategy making Begins with the decision to change its vision and orientation in the future and includes defining the products and services to be offered, and specifying the markets to be served.

Step 3: strategic plan design Defines how the change process will be logistically accomplished through sequencing and pacing in light of the prevailing culture. Step four: implementation of the plan Transition to the new orientation, which includes developing budgets and timetables, assigning roles and tasks that will guide the process. :

Step 3: strategic plan design Defines how the change process will be logistically accomplished through sequencing and pacing in light of the prevailing culture. Step four: implementation of the plan Transition to the new orientation, which includes developing budgets and timetables, assigning roles and tasks that will guide the process. 9

Types of Strategies:
Types of Strategies The four types of strategic changes are: Adaptation Reconstruction Evolution Revolution 10

1. Adaptation: Adaptation is the change which can be accommodated within the current Model and occur incrementally. It is the most common form of change in organizations. 2. Reconstruction: Reconstruction is the type of change which may be rapid and could involve a good deal of upheaval in an organization, but which does not fundamentally change the Model. For example, an organization may make major structure changes on a major costcutting programme to deal with difficult conditions. :
1. Adaptation: Adaptation is the change which can be accommodated within the current Model and occur incrementally. It is the most common form of change in organizations. 2. Reconstruction: Reconstruction is the type of change which may be rapid and could involve a good deal of upheaval in an organization, but which does not fundamentally change the Model. For example, an organization may make major structure changes on a major costcutting programme to deal with difficult conditions. 11

3. Evolution: Evolution can be explained is by conceiving of organizations as 'learning systems', continually adjusting their strategies as their environment changes. 4. Revolution: Revolution is change which requires rapid and major strategic change, perhaps in circumstances where such drift has resulted in circumstances where pressures for change is extreme. For example, if profits decline threats the continued existence of a firm. :
3 . Evolution: Evolution can be explained is by conceiving of organizations as 'learning systems', continually adjusting their strategies as their environment changes. 4. Revolution: Revolution is change which requires rapid and major strategic change, perhaps in circumstances where such drift has resulted in circumstances where pressures for change is extreme. For example, if profits decline threats the continued existence of a firm. 12

Strategy Selection:
Strategy Selection There is no one strategy that fills all situation. Rather, a mix of strategies is often necessary to fully address each individual case. Many considerations need to be taken into account, including the degree of change, population of organization and time frame.

When stakes are high, a mix of all four strategies is recommended because nothing can be left to change. 13

Practical Study of Organization:

Practical Study of Organization 14

Introduction of UFONE:
Introduction of UFONE Ufone starts its operations in January 2001 Have more than 2o million customers. Ufone has network coverage in 10,000 locations and across all major highways of Pakistan. It is one of five mobile companies in Pakistan. After the privatization of PTCL, Ufone is now owned by Etisalat in 2006. MISSION STATEMENT of UFONE 'To be the best cellular option for u' 15

The main strategies change by ufone are::

The main strategies change by ufone are: Strategy 1...Advertisements Ufone was the first cellular company who contracted with the advertisement company. Before this strategy change, they have the separate department for advertisement. This strategy was change on 2007 and they started advertisement in electronic media by using just background voices and animation. In that period, ufone was just able to attract 50 thousand new customers. And in 2009, they again change their policy regarding advertisement and started casting famous TV actors in it. This strategy change really works for ufone and they get more than five lakh new customers . which increases their profit up to 30% per year. 16

Strategy 2...Government Tax :

Strategy 2...Government Tax Ufone have to change their strategy of call rates every year because of the government increases tax every year. The increase in tax rate affects the strategies of the company and they redesign the strategy to give benefits to general people. In 2011, the government increases tax about 1.11 %, due to this ufone, profit decreases up to 5%. They introduce the new low budget packages for their customers. The change in strategy gives vital benefits and they overcome from their loss. 17

Strategy 3...joint promotional strategy :

Strategy 3...joint promotional strategy Ufone joins hand with the Motorola Company in 2004 for a joint promotional that did not give desired profit to both the parties but later in 2007, they change their strategy and joins hands with Nokia and blackberry Company. This provides the great amount of profit to them. And in the same way on 2006, they contracted with NBP for online bill paying for postpay customers. Which later ended in 2008 and they started online billing through UBL under the service name of UPAYMENT . 18

Strategy 4...Helpline :
Strategy 4...Helpline Ufone starts there helpline service free of cost for their customers. But later on 2008 due to poor feedback, they changed the helpline strategy and starting charging the helpline calls. For this cost, they started recording the calls of customers and make this service available 24 hours a day. Due to this change of strategy ufone not only manage to earn extra profit but also able to satisfy customers. Strategy 5... Activation of SIM The activation of sim was very easy earlier but due to PTA new rule of activation of sim, the company has to implement their rule. The company change their system and software for activation of sim. This change of strategy gives a huge loss to the company. 19

Strategy 6...Network up gradation :

Strategy 6...Network up gradation In the early days, ufone hired their own engineers for the network up gradation. On 2006 the management of the company change the strategy and they agreement with the huawei company, under the agreement huawei will expand ufone network to cover 2200 cities, villages and all major highways in the country. This strategy really improves the ufone network and attracts millions of customers. This change of strategy is the main reason of ufone success today. 20

SWOT ANALYSIS:
SWOT ANALYSIS STRENGTHS: Easily manage changes in strategy. Highly technical and creative staff that's help them in changing strategy. Highly flexible strategies. WEAKNESS: No proper market research before implementing their strategy. Changes of strategy are very often in ufone. The continuous changing of Strategies loses the confidence of customers 21

OPPORTUNITY: :
OPPORTUNITY: The continuity of their implemented Strategies can get the confidence of new customers. Ufone should develop some new franchises in remote areas so that people will get more and more benefit from it and it will help to increase their customers. They should make the strategy to introduced International SMS packages like local SMS to attract more customers. THREATS: The increase in Government Tax on Telecommunication companies is the main threat for Ufone strategies. The other competitors of Ufone are not regularly changing their strategies. Pakistan is facing some serious economic problems now days so that would also affect the implemented Strategies. 22

CONCLUSION: :
CONCLUSION: From the report, concluded that the change of strategies is the routine part of ufone. Ufone implemented their strategies and change it. The most of change strategies gives vital benefit to the ufone. The change of Advertising and Network up gradation strategies are one of the reason of ufone success in Pakistan. They should need to forecast the environment before implementing their strategies. 23

RECOMMENDATIONS:
RECOMMENDATIONS They should forecast before implementing strategies. It has not many franchises in the country so they should look upon on their franchise strategy. Ufone networks get jammed on special occasions so there is a need to review their network strategy. They should hired skilled people for making Strategies . 24