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Bridgestone Middle East and Africa is a branch of Bridgestone Corporation operating within the region. The company has been successful in the United Arab Emirates and the regional market because of its strong brand and quality products. However, it faces stiff competition from equally powerful brands in the market. The study focused on determining how this company can introduce a strategic change in its operations without causing resistance among employees and other stakeholders. The analysis has shown that the volatility of the market requires this firm to remain highly innovative.
It will need to develop new products in the market regularly depending on the emerging tastes and preferences. The analysis has also shown that the firm is still spending most of its promotional budgets on the mass media despite the increasing relevance of social media platforms. It is suggested that there is a need for a change in promotional strategies. The firm should spend more on social media because it is more popular than mass media among young adults. Using theories such as Kotters change model and Lewins change model can help in ensuring that such changes are introduced successfully and without resistance. The management should ensure that all the relevant stakeholders are actively involved in change management.
Introduction
Bridgestone Tire Company is one of the largest tire companies in the world. The company was founded by Shojiro Ishibashi in 1931 in Kurume city (Potoc nik, 2019). It achieved massive success after the Second World War and expanded its operations to North America, Europe, and the rest of Asia. Currently, the company has a global market coverage and is considered the second-largest manufacturer of tires after Michelin of France. However, the market is highly competitive as other global tire brands such as Goodyear of the United States Pirelli of Italy, and Continental of Germany are also keen on expanding their market share (Nakajima, 2019). The management of this company understands the stiff competition in the market and it is always keen on embracing new strategies to enable it to protect its market share.
Bridgestone Middle East and Africa is the branch of the company that is operating in Dubai. This regional branch has its headquarters in the city of Dubai and operates in the entire Middle East and African markets. Just like the global market, this firm is also facing stiff competition in the region from the competitors named above. Other smaller regional tire-making companies in the Middle East and African markets also pose a major competitive threat to the growth of the company. In a highly competitive market, a firm should find unique ways of meeting the expectations of customers. In this industry, customers focus on various factors when deciding to purchase a product from a given company.
One of the leading factors in customers decision-making process is the quality of the product they purchase. They want car tires that are not only durable but also suitable for specific terrains. Others also value the physical beauty of the product. The second factor is the pricing of the product (Akingbola, Rogers and Baluch, 2019). When a customer is convinced that two brands offer the same value, they will consider purchasing a product that is priced competitively. Other factors such as the availability of the product, promotional strategies, and customer care services also play a role in defining the decision of customers. The firm needs to assess how effectively it is meeting customers expectations, identify major weaknesses, and find ways of addressing these weaknesses effectively.
Customers tastes and preferences in this industry have been changing over the recent past. Steel rims have remained the most common type for decades. Spinners gained popularity in the 1990s before they faded away (Nakajima, 2019). Alloy rims and chrome rims are currently popular in major urban settings within the region. Changes in the rim type demand a new type of car tire. It means that firms in the tire industry must remain flexible enough to change their products whenever a new trend emerges in the market.
The management of Bridgestone Middle East and Africa must embrace change as it seeks to achieve growth in this competitive industry. As Lauer (2021) observes, successful firms do not wait for their rivals to introduce a new product for them to realize that there is a need for change. Instead, they become the agents of change by assessing the market trends and predicting the future pattern of consumption in the market. They then produce a new product that meets customers needs in the most effective way.
Factors Driving Change
Bridgestone is currently one of the most trusted tire brands in the United Arab Emirates. The company was able to understand the unique terrain in the country and temperature fluctuations during the day and at night. Its scientific approach to developing tires enabled it to develop a product that local customers have found to be suitable for various needs. Despite the trust that it has gained with local customers and the superiority of its products, the company cannot ignore the change.
As technology continues to transform the automobile industry, customers tastes and preferences will continue to change. It is the responsibility of the management of this company to monitor the change and then develops ways of adapting to them. In this section of the paper, the focus is to discuss the need for change in the organization, factors that drive the need for strategic change, and resource implications if the firm fails to embrace change.
The Need for Change in the Organization
Managing change within a given industry is critical in ensuring that a firm remains relevant in its operations. According to Katzenbach (2019), Eastman Kodak was once the largest film company in the world, enjoying over 85% of the global market share. It then developed digital film as a new product, but failed to commercialize it for fear that it would cannibalize its primary product, which was the traditional film. Its major market rival, Fujifilm, introduced digital film and it enabled it to become the market leader in the industry within a short period. On the other, Eastman Kodak lost its market dominance and was almost pushed to bankruptcy (Lauer, 2021).
The case demonstrates the danger that a firm faces if it fails to embrace change. Irrespective of the size of a firm or its dominance in the market, failure to embrace change may be dangerous to a firms successful operations in the market.
Change in Promotional Strategies
One of the areas that Bridgestone will need to embrace change is in its promotional strategies. In the United Arab Emirates, just like in other parts of the world, the company has been relying on mass media platforms to promote its brand and products (Potoc nik, 2019). It has been using platforms such as television and radio to enable it to reach out to customers with promotional messages. It has also been using billboards in strategic locations along major highways and inner cities. Although these platforms are still effective in reaching out to customers, social media platforms are emerging as better alternatives when handling the younger generations.
In Dubai, a significant number of car owners are young adults below 30 years. These youths rarely read newspapers, as Johnson (2019) observes. They also spend less time watching television or listening to the radio. Instead, they spend most of their time on social media platforms.
Facebook remains one of the most popular social media platforms. Baldwin and Cave (2021) observe that the platform has over 2.7 billion regular users globally. Other major social media platforms include YouTube, Instagram, Twitter, and LinkedIn. Young adults have become addicted to these platforms so much that some spend over 8 hours a day active on any of them. When promoting a brand, the goal of every company is to ensure that it reaches its targeted audience with the intended message.
The decreasing popularity of the mass media and increasing popularity of social media means that the management of this company has to redefine its promotional strategies. It has to increase its expenditure on social media platforms as it systematically reduces expenses on mass media. Facebook and YouTube should be given priority because of their popularity and effectiveness in passing promotional messages to customers.
Mass media platforms are less engaging than social media when there is a need to communicate with customers and get their views. Channels such as the radio and television offer a one-way approach to communication (Arora and Sinha, 2020). However, most of these new media platforms offer an opportunity for a firm to engage its customers in a discussion. Once a message is passed to clients on YouTube or Facebook, customers have the opportunity to provide instant responses. It means that if there is an issue that clients feel has not been addressed in the message, they can ask for clarity and the management can respond within the shortest time possible.
They offer a perfect platform for a firm to conduct a survey about a new product they have introduced, existing products, customer service strategies that the firm uses, the promotional message, and any other issue relevant to the successful engagement of customers (Wang, 2018). As such, it is essential for the company to change its current strategies by investing more in social media.
Change in Product and Product Offering
The management of this company should be keen on monitoring changes in the industry in terms of product and product offering. For a long time, tube-type tires were very popular around the world. However, the introduction of tubeless tires redefined the market. Roe (2020) explains that currently there are tires for winter, summer, touring tires, passenger tires, all-terrain tires, and run-flat tires among others. Each region requires a specific type of tire depending on temperature, terrain, economic activities, and popular culture among other factors. The management of this company needs to ensure that it monitors the changing trends and it should be ready to develop new products depending on the emerging needs.
Product offering is another area of change that is essential to ensure that the company is successful. The manner in which a firm handles customers and makes available products that they need is changing. In the past, a firm only needed to make its products available at a given location. Customers had to visit these shops, pay for them, and facilitate their transportation (Arora and Sinha, 2020). However, that has changed in modern society because of stiff competition. Firms are currently offering after-sale services such as transportation of products, fixing a car part at no extra cost, or offering relevant advice to customers before or after they have made their purchase. Bridgestone should be willing to do more to ensure that it remains competitive in the market.
Factors That Drive the Need for Strategic Change
Customer
The need for change is driven by various factors that the management of this company has to understand. The first and most important factor driving change is customers changing tastes and preferences. As a proactive firm that seeks to lead others in developing revolutionary products, it has to constantly understand changes in the market. As trends and fashion change, it is likely that customers may desire a specific type of tire. Instead of waiting for other firms to develop a new product and then copy the same, Bridgestone should remain committed to being the first to introduce such products. It means that it should conduct regular market research to understand what customers need. Once a market survey reveals that there is a need for change, the production unit should take appropriate measures to adjust accordingly.
Technology
Technology is another major factor that drives the need for strategic change. Technology has been at the center-stage of most of the revolutionary changes witnessed in different industries (Lauer, 2021). Technology will drive change at this company in different ways. First, it will redefine its operational strategies. The management will have to employ emerging technologies to enable it to improve on factors such as speed in production and quality of products. With the emergence of robot technology, the cost of production is going down as human capital is replaced with machines (Arora and Sinha, 2020). Technology is also changing the payment method.
Traditionally, customers had to visit brick-and-mortar stores, select the needed items, and make physical payments through cheque or in cash. However, paperless payment has gained massive popularity, especially with the emergence of e-commerce. The management of this company has to ensure that it keeps up with technology in terms of payment platforms. Technology will also drive change in terms of the ease of communication between the firm and its clients. In the past, a firm had to conduct regular market surveys to understand what customers need. It would take long for a firm to conduct such a survey. However, technology is introducing a new platform where such surveys can be conducted daily and with ease through social media platforms.
Competition
Competition is another major driver of change that the company has to take into consideration. As explained above, the tire industry has some of the largest international brands. The management of this company has to ensure that its products, product offering strategies, and pricing are as competitive as possible (Katzenbach, 2019). In its effort to be proactive, the firm has to appreciate that sometimes a competitor may develop a unique product or production approach ahead of it. In such cases, the management must find ways of responding to such changes within the shortest period and most effective way possible. The competitor may decide to increase the price of its products as a way of attracting new customers. The firm should respond to such changes in ways that do not threaten its sustainability.
Government Policies
The management of Bridgestone Middle East and Africa must realize that its operations in the region are subject to government regulations. According to Lauer (2021), policies that a host government develops directly influence the approach that a firm takes in its operations. In the United Arab Emirates, the government has created an enabling environment for both local and foreign investors. Bridgestone, being a foreign firm, enjoys a sustainable business environment that has enhanced its prosperity in the country. However, the firm has to ensure that its activities are in line with government policies.
The UAE government is keen on implementing environmental regulation policies, which this firm has to embrace. It is possible that the government may issue other new directives based on various factors. The management of this firm must ensure that whenever such changes occur, it adjusts its operational strategies accordingly to be in line with the policies of the government.
Resource Implications for Not Responding to These Changes
Managing change remains one of the biggest challenges that large organizations have to confront on a regular basis. Johnson (2019) notes that in most cases, it costs money and time for a firm to adjust its operations in line with specific changes. It has to train its employees to understand how to operate in the new system, install new machines, and redefine its operational strategies. As such, it can be tempting for a firm to ignore changes. As briefly explained in the introduction, ignoring change can push a firm into bankruptcy as was the case with Eastman Kodak. If Bridgestone fails to redefine its products based on the changing tastes and preferences, there is the fear that its products may become less popular in the market. Sales of the firm will drop significantly and it may easily be forced out of the market.
The use of mass media as a means of promoting products and brands in the market has also become less effective in modern society. If Bridgestone fails to embrace new strategies of promoting its brand and products through social media, then it will lose its customer base. Its messages may not reach customers as is intended (Katzenbach, 2019). Other brands using social media will gain popularity at its expense. The impact is that sales of the firms products will drop significantly within a short period, reducing its profits.
Change Management Models and Their Relevance to the Organization
Managing change in an organization can be a challenging process. However, it is an eventuality that a firm cannot avoid, especially when operating in a highly competitive business environment. Various factors may make it necessary for a firm to shift from one approach to operation to another or from one product to the next. Various models have been developed to help the firm make such adjustments without causing major disruptions on the firms normal operations. The appropriateness of a model depends on the nature of the change and the capabilities of a firm. Lewins change management model and Kotters change management model were considered appropriate for the firm based on the challenges that the firm faces and changes needed as discussed above.
Lewins Change Management Model
Kurt Lewins model for change is one of the most popular theories of change that has been used in various settings. It proposes three stages of implementing change in an organization. The first step, as shown in figure 1 below, is to unfreeze where employees are adequately prepared before the actual change process. According to Akingbola, Rogers and Baluch (2019), this theory appreciates the fact that many people fear change for various reasons. Some employees may feel that their services will be rendered unnecessary, especially if it involves the introduction of machines and new technologies. Others may feel that they may lose their current positions in the firm if more experienced and knowledgeable employees are hired. Others may have the fear of the unknown, feeling that somehow the change may affect them negatively.
The first stage is meant to address these concerns to avoid resistance to change. Communication is critical at this initial stage of change management. The leadership of the firm must explain why it is necessary to introduce the change, its benefits, and how it will affect the firm and its employees. All the concerns of employees, especially those who fear losing their jobs or current positions, should be addressed in a sincere way (Arora and Sinha, 2020). The stage is meant to prepare the entire organization for a shift from one tradition to the next.
The second stage of the model is the actual introduction of the change. The assumption at this stage is that employees and all stakeholders are adequately informed and prepared for the change. If the change involves the shift from using mass media to social media platforms in promoting the firms brand and products, the marketing department should be ready to make the shift at this stage. The change process will involve developing promotional commercials appropriate for social media platforms (Baldwin and Cave, 2021). A commercial meant for the radio cannot be used when the platform is Facebook or YouTube.
The message may remain the same, but the marketing unit of Bridgestone will need to adjust it to ensure that it is suitable for the platform used. The change process may also require identifying and adjusting issues that were either ignored or unforeseen at the planning stage. Effective communication and good leadership are critical at this stage. The management should be ready to assist employees and stakeholders in various ways at this stage.
The last stage of this model is to freeze/refreeze. At this stage, the team leading the change should ensure that employees and all stakeholders embrace the change. The biggest concern at this stage is to ensure that organizational culture is aligned with the new system that has been introduced. Continued assistance of employees is essential at this stage (Akingbola, Rogers and Baluch, 2019). In some cases, it may be necessary to redeploy or eliminate employees who are incapable of coping up with the change or dragging down the entire process. The management must explain why specific employees had to be redeployed or retrenched to eliminate the fear of victimization. This model is critical for Bridgestone when making the shift from mass to social media platforms when promoting its brand and products. It will ensure that there is a smooth transition at the firm.
Kotters Change Management Model
Kotters change management model also emphasizes the need to introduce change in an organization in a way that would bring the least opposition possible while at the same time ensuring that the process achieves the maximum success possible. It identifies eight stages needed to introduce change within an organization. The first three stages are defined as creating the climate for change (Baldwin and Cave, 2021). It starts with creating urgency so that everyone can understand and appreciate the need for change.
The management will then develop a powerful coalition that will lead the process. When the change involves the introduction of a new product, the top management unit and the production manager must develop a team of highly skilled employees who will lead the process of developing the new product. The third step is to create a vision for change. The team must have a vision that will guide them in their quest to develop a new product. The management of Bridgestone should ensure that the vision developed is aligned with the overall vision of the company. Figure 2 below identifies the stages involved.
The next three steps involve engaging and enabling the organization during the change. It starts with communicating the vision that was developed in the previous stage. The special team should ensure that the rest of the stakeholders in the organization understands why it is necessary to introduce the new product. For instance, the marketing unit will need to understand how to promote and sell the new product. The finance department will need to understand the financial implication of the new product.
The next step is to empower action (Arora and Sinha, 2020). The process involves the actual implementation of the change. Employees involved should be empowered through training and sharing of knowledge to ensure that they can operate effectively under the next system. The sixth step is to achieve and amplify quick gains. Instead of waiting for the overall success, the team should appreciate small steps made towards achieving the overall goal. Such quick wins are meant to motivate employees and other stakeholders to ensure that they remain committed to the new system.
The last two stages are defined as implementing and sustaining change. It starts with building on the change, which is stage 7 of the model. The team leading the change is expected to assess if the process has been a success. All the weaknesses and issues raised are expected to be addressed at this stage. Stakeholders who were not directly involved in the change process and are expected to play a given role should be assisted to ensure that they understand their new position.
The final stage of this model is making the change stick. After going through a rigorous process of introducing change within an organization, the management must ensure that it remains relevant. For Bridgestone, it will be critical to ensure that when the new product is introduced, it becomes one of the successful products of the firm. The marketing unit will need to use various promotional platforms to ensure that customers are informed of its existence and the superiority it has over other products. The production unit should have the capacity to lower the cost of producing the new tire even further to help in increasing the firms profitability.
The two models of change are relevant in redefining operations of Bridgestone as it seeks to gain a competitive edge over its rivals. The discussion above showed that this firm will need a change in two main areas. The first is in its promotional campaign strategies. There is a shift from the traditional mass media platforms to social media marketing. However, the company is still using a lot of its resources on mass media marketing. It will be necessary for the management to reconsider its marketing strategies.
Using Kotters change management model, it can develop a small team in the marketing department that will lead this change in a smooth and systematic manner without causing discontent within the organization. The team will ensure that all the other employees and shareholders understand and appreciate the need for the change. Strategies such as cost-benefit analysis can be used to convince shareholders about the importance of the new approach.
The section above also discussed the need for the firm to introduce a new product that meets the emerging needs. Introducing a new product often takes a long process of identifying the need, developing a concept, and screening before a prototype is developed. If it is approved, it will also require the production unit to reduce the output of one or two types of tires to create room for the new product. The change will need to be taken systematically, and Kurt Lewins model of change offers the best steps that can be followed to ensure that the desired goal is realized. This model helps in ensuring that such transformations are realized without any significant resistance.
Change Management Strategy Involving Stakeholders and Overcoming Resistance
In the above section, two models of change management have been discussed. Each can be used because they all focus on ensuring that change is introduced in an organization with the least possible resistance from stakeholders. Kurt Lewins model is good because it is simple and easy to apply. However, the management of Bridgestone Middle East and Africa should consider using Kotters model of change because it is more detailed. As Lauer (2021) observes, managing change requires an understanding of the possible reaction of different stakeholders based on their interest in the project. In this section, the focus is to discuss change management strategies, implications of the strategy for the relevant stakeholders, and strategies needed to overcome a possible resistance to change.
Change Management Strategy Involving Stakeholders
When introducing change in an organization, the management must start by defining all the stakeholders who will be directly or indirectly be influenced by the outcome and those with the capacity to stop or frustrate the change process. Shareholders of the company are important stakeholders who have to understand how their investment will be spent to generate more revenue for them after the change process.
Employees have to understand their new role and how the system introduced may affect their job security and current positions in the firm. The top management unit will be interested in knowing how the change will help the firm realize its vision and achieve growth despite stiff competition in the market. Customers will be interested in receiving a superior product at a competitive price after the change. The government, suppliers, and competitors are other important stakeholders that cannot be ignored in such a plan. Using any of the two models discussed above, the change management strategy should take into consideration the following factors.
Planning should be the first item and factor that will influence the success of the change process. The team that is assigned the role of implementing the change should develop a detailed plan that defines every activity that should be taken in the project (Arora and Sinha, 2020). The plan should include a timeline within which each activity has to be completed, resources that will be needed for every activity, employees involved and their specific responsibilities, and the supervisory roles. The plan should have realistic objectives that can be assessed with ease to help determine the project is on the right track.
Transparency should be part of the strategy that the company will embrace. The management should ensure that all the stakeholders understand the reason why it is important to introduce change. Cases where the real reason for the change is hidden from the majority of stakeholders often result in conflicts at the implementation stage, leading to resistance (Johnson, 2019). As such, it is the responsibility of the team to provide a detailed explanation of the process that led to the realization that change is necessary. They should also explain the process that will be taken to achieve the intended goal, and the possible outcome. Issues raised by the stakeholders should be addressed effectively.
Communication is an essential aspect of change management strategy. The team implementing the change should ensure that they keep everybody else informed of all the activities in the project. Information should be shared as early as possible during the planning phase. When the project is initiated, all the relevant stakeholders should be aware of these changes. Internal communication channels such as memos and letters can be used to communicate with stakeholders. Emailing and direct phone calls are also effective channels of communication (Roe, 2020). Currently, social media platforms such as Facebook, Twitter, and Instagram also offer effective communication platforms.
Training of employees should be part of the change management strategy. It is wrong to assume that all the workers will understand what is expected of them under the new system. They should go through some form of training to ensure that they understand what is expected of them when the change is introduced. On-job training or seminars can be used to equip them with the relevant skills. Monitoring and evaluation are the other aspects of the strategy that should be emphasized. Every step of the program should be evaluated to ensure that the intended goal is achieved.
Implications of the Strategy for the Relevant Stakeholders
The multi-stakeholder approach to introducing change propose above will have a major implication in the firm. The top management will benefit from the strategy because there will be a reduced level of resistance. Employees, shareholders, and suppliers will be aware of the shift and as such, they are less likely to raise concerns at the stage of the implementation. The management will have time to focus on achieving specific goals in the change project instead of focusing on addressing issues arising from different stakeholders. A clearly articulated plan will include how the firm will have access to all the materials needed for the new project and their cost. It will save time for the managers during the implementation phase.
Shareholders will benefit from the strategy because they will be aware of the need for the change, specific areas of operation that it will affect, any additional resources that will be needed, and benefits expected. Conducting a cost-benefit analysis will make it possible for these shareholders to determine the net gain that will arise from the project and t
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