The scenario of this report is based on some major crisis faced by Shell which damaged its share prices. In this respect, the firm requires to implement change practices in the business so that they can cope up easily with such situations.
- Construct a proposal of Shell that determine all the required information in a business context.
- Evaluate changes management concept that shell can implement in their business practices.
- Develop a consideration that determines the strength, weaknesses and limitation of the shell.
i. Description of the Project
In 2004 shell face some oil reserve crises because of that their share price also damaged. To overcome with this chairman of company Jeroen Van der Veer, think to implement several modification in their structure and processes with this their 80 operating units also get suffered. Although, their customers/clients face several problem because of these alterations description of these is given below:-
- Products delivery process: when situation of oil reserve crises are arrived for this company have to make several changes and then must have to managed that (Al-Mudimigh, Ullah and Alsubaie, 2011). Because of this their 80 operating unit are changed then their process of delivering products are change. Goods delivery process is the major problem they are facing thus they are not getting products directly from company they have to go several agents, distributors are several other persons for purchasing.
- Needs and Wants of customers: operating units are modified then in this situation it may be possible that according to needs and wants of customers products are not producing or as per requirement not delivering to the clients of Shell. This is major issue which company and customer both are facing if wants are not fulfilled then no one will going to purchase products of that particular brand.
- Price Modification: changes can be related to the price also when increase in price of existing goods take place this directly gives impact on purchasing power of clients. If price got high then customers will suffer because no one wants to give high amount for the goods compare to present price. Modification in price gives wide impact on customer of Shell (Benn, Edwards and Williams, 2014).
These are the major impact which customers are facing because of modification in their present strategies and practices. As well modification must be managed in proper manner so their will be no major impact on customers or clients of Shell.
ii. Scope of Work
Change is giving wide impact on working of business strategies, practices and customers. which must be managed in proper way so their will be no negative effect on working of Shell. Satisfaction of customers is important because of this Oil reserve crises clients get disturbed and for this company have to tackle them in better manner so they can gain best outcomes with the modification. Plan for solving client's issues:
- When enterprise is implementing changes then they have to proper environment scanning (Caldwell, 2012). So easily analysation can be done of current market trend and customers needs or wants.
- Modification in 80 operation unit must be properly implemented so production of goods and services must be proper. Then need and wants of the same people can be fulfilled as well it is important for gaining competitive advantages.
- As per the products and customers price must be properly framed because no one want to spend too much amount for oil.
Lewin's Change Management Model : This is one of the famous and effective change management model which easily make possible to understand structured and organisational modification. Same model was given by Kurt Lewin in 1950 and this is still used by several companies like Shell. Although, this model consist three stages such as: Unfreeze, change and refreeze. Explanation of these is given below:
- Unfreeze: This is first stage of change management at this stage Shell get ready for implementing modification in their existing strategies and practices. Unfreeze means that at current stage organisation is using several policies, strategies, procedure which must be unfreeze so that alteration can be implemented. Main focus is that company have to explain other employees that why there is requirement of changes in existing and how these can help in generating profit (Drucker, 2012).
- Change: In the second stage of change real modification take place. This process is time consuming because all the strategies and policies are modified in this. At the change stage good leadership and support is essential because these feature not only lead to lead forward in the right path but also make the procedure easy for employees or individuals person who are involved in the process. Communication and time thus are the keys element for this step to take place with success.
- Refreeze:This one is last stage of change implementation in this alterations are expectable and implemented by company in their beginning to the last stage. In this process and strategies are getting refreeze and all working again becoming normal as well followed by each and every individual (Ghimire and Pimbert, 2013).
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iii. Key Objective of the Project
McKinsey 7 S Model- This theory was introduced in 1980 which includes seven stages for managing modification. Description of all these is given belo