Change And External Environment

Change and External Environment 1

Change and External Environment

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Change and External Environment 2

Change and External Environment

Q1. Reasons why some services are better suited to private sector provision and some

to public provision

The debate on ownership type concept, either public or private sectors, is one of the

highly researched areas with a wide range of conclusions, findings and recommendation from

multiple research studies. Ownership, whether by public or private sector, seeks control of

various infrastructures and services. Therefore, the ideal aspect that determines the most

effective type of ownership is efficiency. Factors that determine efficiency therefore include

competition, regulation, recruitment and compensation autonomy, and wider institutional

development issues (UNDP, 2015, pp 3-4). Therefore, the best approach to determine which

services to allocate to either of the ownership models must be strictly guided by such elements to

ensure efficiency is guaranteed. The service allocation to either the public or private sector is

guided on achievement of more efficiency with the consideration of the above mentioned factors.

Some of the services are very sensitive to the members of public including healthcare,

security, water and transport infrastructures and therefore require high level of regulation. As a

result such services are allocated to the public sector under the government’s control. Through

these sectors, the government is able to enforce the necessary regulations that could otherwise

not be achieved in the free market approach of the private sector. Moreover, some of the services

are allocated for provision by the government or the public sector in order to promote equality

and fairness. The public sector utilizes a convergence approach in which the services are put in

an accessible point by all the people without discrimination on quality of the service. The private

sector in most cases cannot be able to guarantee equality and fairness as it mostly employs

Change and External Environment 3

capitalism concept which encourage competition and profitability. As a result, most of the

disadvantaged populations would not be able to access critical infrastructures such as healthcare

among others.

The privatization of services is also essential as it provides highly efficient outcomes on

services that do not demand high externalities (UNDP, 2015, pp 5). The private sector can be in a

position to enhance job creation, enhance competition, create improved compensation programs,

and enhance profitability incentives. The private sector is instrumental in provision of services

that lead to economic development and enhance growth and development in term of monetary

and value based infrastructure. The private sector is able to promote high level of

competitiveness in various industries and as a result, supporting absorption of people into

employment programs and establishing competitive compensation plans (UNDP, 2015, pp 6).

However, the private sector largely depends on the public sector for provision of its services. For

instance, the private sector depends on the public sector to educate people in order to employ

them. The public sector must also provide security assurance for private sector to be successful.

Therefore, the two sectors complement each other and none can be termed important than the

other.

Q2. UK based organization wishing to expand its organization abroad needs your advice

on how to manage change in their company. They want you to prepare a short

discussion paper that details four key areas that they need to priorities in both their

exiting UK operation and in the new country. Using evidence from this course justify

the four areas that you choose

Change and External Environment 4

Consumers – Consumers are the major stakeholders of the business operations and corporates

activities. The organization must establish a comprehensive review of its existing consumers in

the UK, and the prospective customers in the foreign country. Through such analysis, the

organization will gain a comprehensive insight of who its consumers are, their needs and their

views on organization’s operations (Senior, 2000, pp 10). As a result, the change strategy of

venturing into the new market will enhance the company’s understanding of its consumer needs

in both the existing and new market. Consequently, the organization’s analysis of the UK

consumers will enhance its understanding of the customers in the new market and establish

which aspects to improve on for an effective market restructuring strategy.

Environment – The business environment is critical in determining the manner in which the

organization aligns itself with the market needs and trends. The organization must perform a

comprehensive analysis on the various environment aspects to ensure that there is improved

efficiency and integration of its operations and the environment needs (Thornhill, 2000, pg 263).

For instance, the organization must analyze trends such as competition, pricing strategy and

compliance and regulation standards, and compare them between the existing market and the

new market (Cameron and Green, 2015, pp 242-243). As a result, the organization will gain

insights on which operations will need to be conducted differently, and which operations will

have to be dropped or assimilated.

Employee relations – In both the existing and the prospective market in the new country, the

organization must understand its already established employee relations and the required

relations for the new environment. The organization must reflect on its recruitment and retention

programs to determine the need for improvements and adjusting in the new market. The main

aim of engaging in people resource analysis is to promote the ability of the organization to

Change and External Environment 5

enhance the its people management practices (Senior, 2000, pp 10). The organization should

enforce strategies that will help it assimilate and retain competent employees in both the existing

and the prospective markets. Analyzing employee relations will also determine the workforce

requirements required during the change (Thornhill, 2000, pg 264).

Financial Resources – The change strategy and the venturing into new markets in the new

country will require the organization to have adequate financial resources to accommodate the

investment. The organization therefore must review its financial capacity in the existing market

to determine how much funds will be allocated for the new market venture investment. The

organization must also prioritize on determining the required financial resources for the new

market project. As a result, the corporate shall be able to internalize the nature of change

required in terms of financial resources and the funds that must be prepared for the change

strategy.

Q3. Why the impact of globalization can be overstated when looking at managing

change in an organization

Globalization is a rapidly growing concept and has left significant landmarks on the

organizational operation in the modern business world. In corporate change management

practices, globalization plays an essential role in determining the effectiveness of change (Senior,

2000, pg 12). Globalization concept is mostly associated with increased and heightened level of

uncertainty in the organization during the change strategy. As a result, the corporate is likely to

overstate the concepts of risk management during change management practices (Börsch, 2004,

pp 597). Unlike other impacts of change in the organization, globalization is completely out of

Change and External Environment 6

the organization’s control. During the change management process, the organization is likely to

overlook on the aspect of globalization to improve its preparedness on the risk factors involved.

The concept of globalization is interrelated with most of the organization’s processes

including the consumers, competition, and regulations among others (Senior, 2000, pg 15).

Therefore, during the change analysis process, the organization is likely to engage in deep

analysis of how the concepts are intermingled through the aspect of globalization. As a result the

organization will establish an overall and comprehensive insight into globalization as the parent

issue in the change strategy. The integration with other crucial issues that are considered as

significant factors in change strategy can be lead to all decisions on the change strategy leading

to an emphasis on the concept of globalization and thus ignoring some crucial details associated

with the other factors individually (Marković, 2008, pg 5).

In most cases, the organization aims at improving its services and aligning them with the

global standards and global market needs. As a result, the organization must determine how such

requirements are associated with the globalization concepts such as integrated community

structures which have changed the consumer behaviors. Therefore, the organization will spend

most of the time analyzing how the new business strategies will be aligned with the global

market. The organization may thus be blinded from looking and evaluating other significant

concepts that impacts the change management in the organization.

The concept of change requires investment of time and other resource in establishing an

improved corporate environment (Mabey and Mayon-white, 1993, pg 9). Such an environment

must take into account the major market determinants in the modern world where globalization

and technology advancements are major players. Thus, the management might be contented with

Change and External Environment 7

the ideology that the concept of globalization demands maximum attention as it emerges in

multiple dimensions. It should be noted that globalization is a critical aspect in the change

strategy as it is a continuously advancing and a consistent issue in the business environment. As

much as the management should analyze its impact critically, globalization should not be

overstated to the extent of failing to recognize other factors.

Change and External Environment 8

References

Börsch, A. (2004). What happens after privatization? Globalization, corporate governance and

adjustment at British Telecom and Deutsche Telekom. Journal of European Public

Policy, 11(4), pp.593-612.

Cameron, E and Green, M. (2015) Restructuring. In Cameron, E and Green, M, (2015) Making

sense of change management: a complete guide to the models, tools and techniques of

organizational change, 4th, London: Kogan pp. 231-263

Mabey, C. and Mayon-white, B. (1993). Managing change. In: C. Mabey and B. Mayon-white,

ed., Managing change, 2nd ed. London: Paul chapman, pp.5-19.

Marković, M. (2008). Managing the organizational change and culture in the age of

globalization. Journal of Business Economics and Management, 9(1), pp.3-11.

Senior, B. (2000). Organisations and their changing environments. In: B. Senior, ed.,

Organisational change. New York: Financial Times Prentice Hall, pp.3-34.

Thornhill, A. et. al. (2000). Downsizing and the management of change. In: A. Thornhill, et. al.

ed., Managing change: a human resource strategy approach. Harlow: Financial

Times/Prentice Hall

UNDP (2015). Is the Private Sector more Efficient? A cautionary tale. UNDP Global Centre for

Public Service Excellence. [online] Singapore: UNDP GCPSE, pp.4-13. Available at:

http://www.undp.org/content/dam/undp/library/capacity-

development/English/Singapore%20Centre/GCPSE_Efficiency.pdf [Accessed 19 Jun.

2018].

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