Subsidiary Initiative The Modern Multinational Corporation

Question: Discuss about the Subsidiary Initiative for The Modern Multinational Corporation. Answer: Introduction The following assignment evaluates the change initiative processes that can be successfully be implemented in Etched Airways. As such, it is necessary that the business enterprise consider certain attributes in the process of implementation of the changes. These include - the market conditions, inherent financial strength of the organization as well as the presence of the substitute brands in the market. As such, it is necessary that the company assess the inherent financial position of the organization, and make changes to the existing operational and the financial policies of the business entity. However, Harmon (2014) noted that there should be a definite time span within which the change management process has to be implemented in the business organization. The process order of the organization has to be re-innovated to aid the change management process implemented in the organization. Thus, the change initiative process shall play a definite role in the implementation of the change management process in the organization. In this regard, it can be said that the operational policies of the business enterprise shall enable the business enterprise in making changes to the alterations in the operational policies of the business enterprise. As such, it is necessary that the change initiative process is adopted in the business organization after considering these attributes. The technology would play a definite role in the implementation of the change management in the organization, thereby, leading the business organization to achieve business sustainability. Stark (2015) mentioned that the change initiative process shall only be successful if there is a clear flow of communication between the top management to the middle ranked managers in the business entity. As such, it is necessary that the proper training is provided to the executives and the managers to ensure that they have the required competencies to adjust to the change management processes of the organization. As such, it is necessary to evaluate the needs of the organization to implement the changes in the organization. In this process of the change management, it is necessary that the organization have to allocate the job roles as per the necessary expertise and the aptitude of the business enterprise. As well as the organization needs to adhere to the pertinent laws and regulations, that has been influencing the market operational policies of the business entity. Organizational Structure The organization chosen here is Etihad Airways that is based in Abu Dhabi, United Arab Emirates. This transport is a passenger airliner and has been travelling to the major international Destinations. As such, the brand also operates in the hospitality and the logistics sector. The brand has implemented Etihad Holidays as well as the Etihad Cargo. It is one of the leading airliners in the domestic market. In addition, through effective customer service policies adopted, it has created a name and reputation in the international market. It has adopted aggressive expansion policies and carrier passenger to all the major cities across the globe . Figure 1: Organization Structure (Source: Birkinshaw 2014) Discussion Key Stakeholders The change drivers in the organization shall reflect the financial and the organizational competencies in the business entity. Therefore, the organizational competencies shall consist of sales revenue as well as the operational constituents that has been affecting the business enterprise. The primary change drivers shall be able address the existing needs of the business organization. In addition, this shall be helpful for the business entity in ensuring smoother business operations. According to Shinn et al. (2016) mentioned that Etihad Airways has substantial financial resources that would enable the business enterprise to achieve greater operational efficiency. This would have a strong impact on daily business functionalities to aid the business enterprise in achieving further growth in the domestic and the international market. Besides this offers suitable customer service policies that has assisted the business entity in creating a positive perception on the consumers. Thus, stakeholder feedback shall be taken into consideration, in framing the operational processes of the business enterprise. Technology shall be an essential part of the change management processes adopted in the business organization. Implementing advanced technology mechanism shall assist the business enterprise in ensuring better coordination among the various departments in the business enterprise. In this regard, it can be said that there are ethical considerations have to be assessed in framing the operational policies of the business enterprise. Birkinshaw (2014) mentioned that these include following transparent and honest financial policies to assess the alterations or the change initiative policies followed by the business enterprise. In addition, giving employees a proper work environment to assist smoother operational policies implemented in the business organization. Besides this, following the environmental procedures implemented in the business organization shall adh ere to the strict environmental guidelines implemented in the business entity (Dumas et al 2013). Thus, the organization shall adhere to the environmental and human rights in developing the operational policies of the business entity. In this regard, it is necessary that the organization shall maintain honesty as well as transparency at all levels in the organization to prevent any ethical issues in the workplace. According to Jeston and Nelis (2014), the change initiatives implemented in the business organization shall be essential for the business organization to enhance the operational processes of the business entity. It shall have a mixed reaction to the change initiative process adopted in the business organization. Etihad Airways being a reputed business entity shall have strong reactions from the stakeholders implemented in the business entity. Thus, the management of the organization have to play an effective role in convincing the stakeholders in aiding organizational changes in the organization. As such, it is necessary that the organization the management of the organization have to play the leadership role in achieving the goals and the objectives of the business entity. According to Birkinshaw (2014), the primary answered questions refer to the alterations implemented in the organization. In this regard, it can be said that the roles of the organization has to be well-defined to assist the achievement of the goals and the objectives of the organization. Dumas et al.(2013) stated that The middle-ranked employees of the company has to adhere to the operational policies set by the business enterprise. As such, it is necessary that the operational strategies of the business enterprise have to be allocated to different teams to assist the growth of the organization, in the context of the nature of the global market. Change Initiative Overview The change initiative process shall be done every six months as well as annually to assist the business organization in achieving further growth in the market. The change initiative shall be deemed successful, if the change management benefits matches with the pre-detremined objectives of the business entity (Jeston and Nelis 2014). Thus, if it serves the purpose of the organization, the management of the organization shall be able to continue with the existing operations of the business enterprise. In addition, the project shall be deemed to be successful in helping the organization to build the operational processes of the business entity. The internal factors that has to be considered are the cost of operations as well as the annual sales revenue in the organization. Strutzenberger and Ambos (2014) mentioned that the presence of the substitute brands in the market is also necessary attribute that has to be considered in framing the operational policies of the business entity. Key Success Factors The change initiative process shall have to be implemented after considering both the internal as well as the external factors affecting the market condition. These include the external factors like inflation, employment as well as the general economic condition of the consumers. In addition, it is necessary that the consumer behavior of the organization is also a necessary attribute that has to be considered in framing the marketing and the operational strategies of the business enterprise. It is necessary to inform the stakeholders about every changes made in the change initiative process. Thus, in this regard it can be said that stakeholders shall have the intrinsic details about the change management implemented in the business organization. As such, Simons (2015) mentioned that it is necessary that the stakeholder reactions shall depend considerably upon the outcomes achieved through the alterations in the change management of a business enterprise. Therefore, stakeholder reaction shall be positive, if the changes made in the operational processes of the business enterprise benefits the business organization in ensuring smoother operational processes and enhances the operational processes , thereby, adding to the profitability of the business enterprise. In addition, it is necessary that the Etihad Airways adopts the change drivers in the organization, to facilitate organizational growth. Evaluation and Assessment Procedure The evaluation and the assessment of the operational procedures in the business organization shall be re-innovated to enhance the existing procedures in the organization. In this regard, it can be said that the stakeholder reactions shall be assessed in accordance with the long term goals and the objectives of the business entity. As such, in the case of the Etihad Airways it is necessary that the market position of the business entity shall have to be assessed as per the long term goals and the objectives of the business enterprise. The evaluation shall be done on every aspect of the change initiative process in the business enterprise, to lead the business organization to further growth. The evaluation as well as the assessment procedures shall relate to the organization having a definite impact on the existing business strategy of the business enterprise. The evaluation and the assessment procedure shall be carried out through a number of stages. Firstly, this would relate to ever y aspect on the operational policies of the business enterprise. In regard to this, finance, marketing and HR shall be evaluated, in terms of the operational strategies of the business entity. Thus, on this aspect, the financial and the operational cost of the enterprise shall be emphasized upon to cater to the needs and the issues of the business enterprise. The manufacturing processes of the business enterprise shall be emphasized in an orderly manner to find out the discrepancies in the operational processes of the business entity. In addition, it is necessary to analyze the cost of production, which would assist the business enterprise in reducing the variable expenses of the firm. The change initiative techniques have to be implemented in the business entity as per the nature of the product and the service len the firm is operating. In these regard, Simons (2015) noted that Etihad airways has been operating in an intensively competitive market environment. As such, it is necessary that this shall assist the change management initiative is structured as per the needs of the organization. . According to Strutzenberger and Ambos (2014), the aviation sector is ever changing, with the emergence of innovative technology and customer service facilities. Thus, the firm shall engage in intensive market research to assist the business enterprise to assess the existing trends in the market, which shall enable the organization in taking change initiative strategies as per the needs of the organization. Conclusion It can be concluded that the change initiatives implemented in Etihad Airways has benefitted the business entity in achieving financial as well as operational benefits. In this regard , it can be said that stakeholder reactions has been mixed when assessing the business performance of the entity. It is necessary that the stakeholders are informed of every step in the change management process to maintain the channels of communication. In addition, there should be a clear flow of communication from the top management of the organization. Here, the leadership of the organization shall have to play a definite role in guiding the organization towards the change management initiatives that is being implemented in the business entity. The key change drivers in the case of Etihad Airways has been financial, organizational and the marketing competencies adopted in the business organization The success or the failure of the change initiatives can be judged by the business performance of the entity on semi-annually or on annual basis. As such, it is necessary that the evaluation procedures adopted in the business entity would have to be effective in assessing the present situation of the business entity and help the firm in responding appropriate measures. References Birkinshaw, J., 2014. Subsidiary initiative in the modern multinational corporation. Research in Global Strategic Management, 16, pp.201-220. Dumas, M., La Rosa, M., Mendling, J. and Reijers, H.A., 2013. Fundamentals of business process management (Vol. 1, p. 2). Heidelberg: Springer. Harmon, P., 2014. Business process change. Morgan Kaufmann. Jeston, J. and Nelis, J., 2014. Business process management. Routledge. Shinn, S.A., McKeever, J., Ruark, V., Bryson, J., Majerowicz, W., Wunderlick, L., Klein, G. and Nair, P., 2016, March. The Business Change Initiative: A novel approach to improved cost and schedule management. In 2016 IEEE Aerospace Conference (pp. 1-20). IEEE. Simons, M., 2015, June. Leading a successful change initiative. InProceedings of the Conference for Entrepreneurial Librarians. Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (pp. 1-29). Springer International Publishing. Strutzenberger, A. and Ambos, T.C., 2014. Unravelling the subsidiary initiative process: A multilevel approach. International Journal of Management Reviews, 16(3), pp.314-339.