Module Title: Strategic International Business Management Assessed intended learning outcomes: On successful completion of this assessment, you will be able to: Knowledge and Understanding. 1. To...

Case analysis
Table of Contents
3Case scenario
31) People Management issues underpinning the difficulties Jan is facing
62) Steps taken for launch of new products
103) Leadership style that Jan should adopt in this process
124) Any decisions or support needed at board level for helping improving this situation
14References
Case scenario
The underlying case scenario is based on a SweDigi manufacturing company located in the South of Sweden, engaged in the sub-contractor of the digital music industry. The financial and profit prospect of the organisation depicted negative trend in terms of decreasing sales figure, staff turnover, employees’ redundancy, and other several downturns. The board members of SweDegi realised the need of company turnaround through introducing new products, searching new niches for product range, retaining managerial personnel, implementing quality assurance processes, etc for boosting sales and growth prospects of the organisation. This change program invited appointment of new entrepreneur who has faced several challenges in the process of implementing and em
acing change program.
1) People Management issues underpinning the difficulties Jan is facing
Jan, new entrepreneur formulated mission of company turnaround in next 12 months through implementing high tech simulation game of new product innovations and services. The change program did not succeed due to poor management, high rate of staff redundancy, difficulties experienced by sales agents in accessing important prospective clients, conflicting or varying opinions of management team on progress development and quality assurance processes, which led Jan facing several difficulties and complexities.
For identifying and analysing people management issues, Kurt Lewin 3 phase change management model is used as shown below:

Unfreeze: In this phase, forces or driving factors preventing organisation personnel from adopting and em
acing change is identified and addressed. The need for change and search for possible solutions is the main feature of this change phase. In context to SweDigi, there are several people based factors, such as employee resistance to
eak prevailing status quo and lack of communication (Hayes, 2014).
At the outset, it is argued that whenever a new leader is introduced upon, employees or workers depict resistance. The employees at SwiDegi also depicted resistance for the new manager, Jan as they lack awareness for the person chosen, his way of working, and management style. Additionally, Jan announced turnaround or transformation strategy where prevailing production, marketing and sales system would get completely transformed. For example, there is one production plant at the organisation with traditional nature production equipment, which is considered unfit by Jan, developed resistance among employees. It proved quite difficult to get employees involve in the new production process, as they perceived that new production plants and equipment would pose threat to their existing position and working methodology in the industry.
Communication is another important issues experienced by Jan as senior management or existing board members expected to communicate proposed change to employees. For example, board members need to a
ange a formal or informal gathering explaining appointment of new entrepreneur, new processes, procedures recommended by him, expected change likely to occur on existing production methodology, etc need to be addressed, for which, Jan indeed has to face anger and resistance. No matter how large or small change, it is always expected that employees are never left out or made aware of the change; it can prove disastrous (Brisson-Banks, 2009).
Transition: At this stage, employees or personnel are taught or learnt with new behaviour, practices, values and working patterns through redesigned organisation structure and process changes. This period also proves highly confusing and resisting as employees need to move from old ways and learning new way of doing things. At SwiDegi, employees found as mistrusting Jan and depicting frustrating behaviour as they were thrown with the new change plan with the words, ‘forget the old way, this is how we do it now’ without detailing and explaining reasons for implementing change. This is the reason that employees at SwiDegi did not get involved in the new project, mistrust the whole project and stuck with their old habits as they were not in the position of comprehending new change program, understanding industry trends, and replacing their old habits with new ones (Schein, 2002).
Another major issue identified in this context is the lack of training, which deters the new change program and its effectiveness. The new change program proposed by Jan necessitates new training on the part of sales agents in accessing and approaching important prospective clients. The lack of training made it difficult for Jan to align different opinions and forming a team for tackling problems and improving processes. The main reason behind this is the failure or appreciation on the part of senior board members to inform and getting confidence of lower placement positions and personnel that certain elements and work processes would get change. The sales agents are not provided with the training in the belief as ‘they might be aware of the change or new processes’, which developed a sense of mistrust among them and continuing with their old habits and working methodologies (Al-Haddad & Kotnour, 2015).
Freeze: This is the final stage of adaptation of new working procedures and process ‘as is’ and crystallising new ways of doing things. In simple words, change is reinforced through preparing and involving employees in the process. However, at SwiDegi, Jan failed in refreezing or reinforcing new change program due to two main people management issues-change program did not work, and specific perception formed by specific category people. Broadly speaking, change program did not work in positive or expected manner, as it did not succeed in controlling or preventing staff redundancies. As found, marketing manager, production manager, and some other strategic nature personnel resigned and joined another firm in the same city. The main reason behind this staff turnover or redundancy is failure of Jan in working or aligning with older management practice or listening to it (Samson & Bevington, 2012).
The opinions and perspective held by marketing and production manager on product development, quality assurance and other aspects were not listen or accepted by Jan in any manner, rather, new practices imposed on them. This change resistance or people issue occur due to lack of communication as production and marketing manager expected to adopt and implement company-wide change with no question or query. Additionally, this issue also arise as marketing and production manager holds strategic...