Impact of strategy changes

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.

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

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 of resources
Monitoring performance
 and Explaining strategy

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

The main reasons in the strategies changes are:
1. poor outputs
2. less revenue
3. competitors pressure
4. not completely implemented
5. poor feedback
6. more complicated
7. change of environment
8. change in technology

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

Step 3: strategic plan design
Defines how the change process will be
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, timetables,
assigning roles and tasks that will guide the
process.
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The four types of strategic changes
are:
1. Adaptation
2. Reconstruction
3. Evolution
4. Revolution
10

1. Adaptation:
Adaptation is the change which can be accommodated
within the current Model and occurs often. It is the most
common form of change in organizations.
2. Reconstruction:
Reconstruction is the type of change which may be
rapid, but which does not fundamentally change the
Model. For example, an organization may make major
structure changes on a major cost-cutting programme to
deal with difficult conditions.
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3. Evolution:
Evolution can be explained is by conceiving of
organizations as 'learning systems', adjusting their
strategies as their environment changes.
4. Revolution:
Revolution is change which requires rapid
and major strategic change, where pressures
for change is extreme. For example, if profits
decline threats the continued of a firm.
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There is no one strategy that fills all
situation.
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
14

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

Strategy 1...Advertisements
Ufone was the first cellular company who contracted with
the advertisement company.
Before this strategy change, they have the separate
advertisement department. 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 strategy 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

Ufone have to change their strategy of call
rates because of the government increases tax
every year.
The increase in tax rate affects the strategies of
the company and they redesign the strategy.
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

Ufone joins hand with the Motorola Company in 2004
for a joint promotional that did not give desired profit to
both 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

Ufone starts there helpline service free of cost. But later
on 2008 due to poor feedback, they changed the helpline
strategy and start charging the helpline calls. For this
cost, they started recording the calls 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.
19

In the early days, ufone hired their own
engineers for the network up gradation.
On 2006 the company change the strategy
and 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

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
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The continuity of their implemented Strategies can get the
confidence of new customers.
They should make the strategy to introduced International
SMS packages 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 a
days so that would also affect the implemented Strategies.
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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 main reason of ufone success in
Pakistan.
They should need to forecast the environment before
implementing their strategies.
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 They should forecast before
implementing strategies.
 It has not many franchises in the
country so they should look upon
on their franchise strategy.
 They should hired skilled people
for making Strategies.
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