Strategy-MLP-Dec' 14- 38444951

CIM/CAM Membership
Number
Unit Title
Level/Award
Accredited Study
Center
38444951
Marketing Leadership and Planning
Chartered Postgraduate Diploma in Marketing
Strategy Business College
Declaration:
“I confirm that in forwarding this assessment for marking, I understand and have applied the
CIM policies relating to the word count, plagiarism and collusion for all tasks. This assessment is
the result of my own independent work except where otherwise stated. Other sources are
acknowledged in the body of the text, a bibliography has been appended and Harvard
referencing has been used. I have not shared my work with other candidates. I further confirm
that I have submitted an electronic copy of this assessment to CIM in accordance with the
regulations.”
Word Count:
Task 1: 2680
Task 2: 4338 (Task 2.1: 3801 | Task 2.2: 537)
Task 3: 1621
(Excluding Index, Table of Contents, Summary of Audit Findings, Executive Summary, Headings,
References & Appendices)
Date of Submission: December, 2014

Marketing Leadership and Planning Associated Motorways Ltd Student No: 38444951
1
DELIVERING A CULTURE OF
INNOVATION, LEARNING AND RISK MANAGEMENT

2
Contents
TERMS OF REFERENCE:................................................................................................................................. 6
PROCEDURE ....................................................................................................................................................... 6
EXECUTIVE SUMMARY .................................................................................................................................. 6
Task 1 - Report
1.0 FINDINGS-...................................................................................................................................................... 6
THE DYNAMIC NATURE OF THE SRI-LANKAN AUTOMOTIVE INDUSTRY .......................................... 6
1.1 UNDERSTANDING THE FACTORS AFFECTING CURRENT LEVEL OF FLEXIBILITY OF AMW ... 6
1.1.1 Assessment of Culture & Structural Flexibility at AMW.......................................................................... 7
1.1.2 Sales Orientation and its implications on AMW‟s responsiveness ........................................................... 7
1.1.3 Strategies used, influencing flexibility at AMW ....................................................................................... 7
1.1.4 How is leadership influencing flexibility at AMW?.................................................................................. 8
1.1.5 Degree of flexibility derived through AMW‟s Value Chain ..................................................................... 8
1.1.6 Critical evaluation of resources influencing flexibility at AMW .............................................................. 8
1.1.7 Gap Analysis: Current State vs. Ideal State of Flexibility......................................................................... 9
1.2 BRIDGING THE GAP: RECOMMENDATIONS FOR IMPROVING THE FLEXIBILITY OF
AMW.................................................................................................................................................................... 10
1.2.1 How Can Developing a Learning Organization Help Improve AMW‟s Flexibility?.............................. 10
1.2.1.1 Five Disciplines of Learning- The core of a learning organization.......................................................... 11
1.2.1.2 Encouraging the practice of double-loop learning.................................................................................... 11
1.2.1.3Knowledge Management – A key for creating a Learning Organization.................................................. 12
1.2.2 Encouraging Innovation within AMW .................................................................................................... 12
1.2.2.1. Countering the Strategic Drift through Value Innovation ....................................................................... 12
1.2.2.2 Creativity – The foundation of Innovation ............................................................................................... 13
1.3 CONCLUSION ............................................................................................................................................. 13
Task 2 - Internal Marketing Plan
2.1 INTRODUCTION – INTERNAL MARKETING FOR CHANGE MANAGEMENT.......................... 15
2.1.1 Phase (1): Trigger for Change and Improvement .................................................................................... 16
2.1.1.1 Where are we now?..................................................................................................................... 16
2.1.2 Phase (2): Audit: Analysis & Evaluation................................................................................................. 17
2.1.3 Phase (3): Scope: Exploration & Creativity............................................................................................. 18
2.1.3.1 Where do we want to be? : Reaching Market Orientation.......................................................... 19

3
2.1.3.2 Establishment of scope for the IM plan....................................................................................... 20
2.1.4 Phase (4): Shape, Design and Planning .................................................................................................. 21
2.1.4.1 Internal Market Segmentation....................................................................................................... 21
2.1.4.2 The Internal Marketing Mix.......................................................................................................... 21
2.1.5 Phase (5): Action, Implementation and Control .................................................................................... 22
2.1.5.1 Internal Marketing Execution & Implementation......................................................................... 22
2.1.5.3 Budget Allocations and Time Frame............................................................................................ 26
2.1.6 Phase 6 – Unit Consolidation & Learning............................................................................................. 26
2.1.6.1 Institutionalizing the Change through Learning & Coaching....................................................... 27
2.1.6.2 Internal Marketing Evaluation ...................................................................................................... 27
2.1.7 Barriers and Potential Challenges for Internal Marketing ...................................................................... 28
2.2 CRITICAL ASSESSMENT OF AUTHOR‟S OWN LEADERSHIP STYLE ........................................ 28
2.2.1 Identification of Author‟s Leadership Style & Its Implications on IM Implementation ......................... 28
2.2.2 Developing the Ideal Leadership Style.................................................................................................... 29
2.2.2.1 Developing Author‟s Supportive/ Participative Leadership-........................................................ 29
2.2.2.2 Personal Development Plan (PDP)-.............................................................................................. 30
2.3 CONCLUSION ............................................................................................................................................. 30
Task 3 - Briefing Paper
3.1 ABSTRACT................................................................................................................................................... 32
3.2 BACKGROUND INFORMATION ............................................................................................................ 32
3.3 ANALYSIS .................................................................................................................................................... 32
3.3.1 Risk Identification at AMW..................................................................................................................... 32
3.3.1.1 Identification of Sources and Nature of Risks ............................................................................... 32
3.3.2 Critical Analysis and Assessment of Risks at AMW............................................................................... 33
3.3.2.1 Analysis and Assessment............................................................................................................... 33
3.3.2.2 Developing Criteria to evaluate risks with high propensity........................................................... 34
3.3.3 Managing and Mitigating Risks of AMW through Internal-Marketing .................................................. 34
3.3.4 Risk Reporting and Policy ....................................................................................................................... 35
3.3.5 Why should AMW invest in risk management?...................................................................................... 36
3.4 SUMMARY ................................................................................................................................................... 36
REFERENCES.................................................................................................................................................... 37
APPENDICES

4
Summary of Audit Findings
Resources and
Competencies
AMW‟s most significant unique resources are the over 6 decades worth partnerships with its key principal
agents, which it has effectively used in leveraging such resources into achieving market leadership &
competitive advantage, especially in the MRV category during period of 2000-2012. Refer A1 (Appendix 2).
Key value creating resources lie in infrastructural developments in factory, yet value reduction occurring in high
lead times of in-bound & out-bound operations in commercial procurement Refer A6 (Appendix 2)
Flexibility
Inflexibilities were identified across several key elements, amongst which Process and Strategic elements
exemplify the highest inflexibilities. Flexibility of working arrangements is on par with desired levels.
The inter-link between structural elements and internal processes has led to creating a ripple effect on
inflexibilities.
Environment &
Industry
As illustrated in A4 (Appendix 2), AMW competes in a highly competitive industry, with a range of choice for
customer and high power for suppliers.
It also operates in a very dynamic environment with significant changes to economic growth and technology
affecting automotive industry & ergo affecting socio-cultural factors can be forecasted. Refer A5 (Appendix 2).
Culture and
Structure
High role culture indicating high level of bureaucracy with staff centralized and specializes in functional tasks.
High power and authority variance from senior management (Grade H and above) to lower-middle level (Grade
D-B), caused by rigid functional structure. Refer A7 & A8, (Appendix 2)
High level of financial concern and maintenance of a positive P&L, even at monthly level, to display a positive
image of performance, at micro level. Refer A8 (Appendix 2)
Strategy
With 65 years of operations & extensive related diversification within the automotive industry, AMW is a
pioneer in the industry. Refer A11 (Appendix 2).
AMW falls within the Increased Priced/Standardized product category of Strategy Clock due to generic nature of
products offered across all brands (except the recent Nissan Patrol Y62) with a marginal higher price than
competitors. Refer A13 (Appendix 2). This has accordingly resulted in a perceived high value vs. standardized
quality on AMW vehicle brands. Refer 12 (Appendix 2)
Leadership
High level of authoritarian leadership is demonstrated with a drafted rigid set of guidelines for majority of the
staff members to operate upon. Refer A21 (appendix 2). The autocratic leadership is a by-product of the
functional structured culture demonstrating high level of financial syndrome.
Creativity
Creativity inhibitions across the organization was demonstrated through the tall-authority and approval
structures, high level of rational thinking & commonsense thinking displayed by senior management as well as
majority of the staff. Refer A22 (Appendix 2)
Risk Analysis
Highest level of current risk is the financial risk, due to heavy investments on the current expansion phase, with
environment risk showing significant growth Refer A23/ A24 (Appendix 2)
High technological risk through increase technological development is expected in the foreseeable future, but an
immediate social risk is identified with a rapid change in consumer behavior in vehicle purchasing.. Refer A26
(Appendix 2)
Knowledge
Management
Biggest barrier for knowledge management at AMW is Lack of efficient knowledge storing, secrecy and
undervaluing of knowledge. This may result in high employee churn. Refer A26 (Appendix 2)

5
Chapter
-One-
Critical evaluation of
the current level of
flexibility in response
to changing market
forces with
recommendations
on bridging the gap
between the Actual
vs. Ideal states of
flexibility & agility in
order to ultimately
create AMW a
‘learning
organization’.
TO: Marketing & Business Development Director
FROM: Marketing Manager
SUBJECT: Cultivating AMW‟s competitive advantage by fostering a culture of innovation & creativity
encouragement, which facilitates holistic learning & Risk Management.

6
TERMS OF REFERENCE:
This report critically examines the current marketing strategy of AMW-Automotive Ltd. In doing-so, this report will
discourse the organizational culture‟s innovativeness, learning-facilitation and risk management.
PROCEDURE
This report is buttressed with the strategic audit findings (Appendix 2), & employee attitude survey (Appendix 3).
EXECUTIVE SUMMARY
Fueled by multiple factors environmental factors, the industries today are undergoing dynamic change, both at a global
and local level. These dynamics affect consumer needs and wants & thereby having a ripple effect on the competitive
arena for businesses. In such context, the adaptability to environment variances becomes a focal point of ensuring
sustainability for today‟s organizations. The same effect has now transpired to the Sri Lankan Automotive industry, where
technological, social and environmental variances have influenced the local consumer to develop advanced set of needs
and wants.
In such context, Associated Motorways (Pvt) Ltd (AMW) has to discover avenues of securing or heightening competitive
advantage through this change. Accordingly the ensuing project addresses the above dynamic through discussions carried
out across the following dimensions.
 Critical evaluation of the current levels of internal flexibility within AMW, to identify its gaps and understand
avenues through the gap can be addressed.
 Development of an internal marketing plan to carry through the internal-change required to manage the process of
executing recommendations derived on preceding task, thereby improving AMW‟s internal flexibilities and
efficiencies, and,
 Discussions on why risk management should be considered a management priority in executing change, and
distinguishing the risks of not changing, against risks of changing, to determine its feasibility.
-1.0 FINDINGS-
THE DYNAMIC NATURE OF THE SRI-LANKAN AUTOMOTIVE INDUSTRY
The automotive industry is operating within an industry that has observed drastic variances caused by multiple
environmental factors. (Refer Appendix 2, A5). Amongst these, major influential factor for change are the improvement in
technology affecting automobiles, economic variances and the change in social trends. These changes in the industry &
competitor landscape, have threatened AMW‟s productivity & profitability. (Refer Appendix 1: Financial & Operational
Highlights).
Hence the need has arisen to evaluate the company‟s flexibility key elements as a core competency to realize future
competitive advantage; one that is derived through adaptability to changing external dynamics.
1.1 UNDERSTANDING THE FACTORS AFFECTING CURRENT LEVEL OF FLEXIBILITY
OF AMW
In order to become a flexible, AMW should initially understand the essence of change, and ponder the question; what is
happening with the environment and what are we supposed to do to adapt? (Codrin et al, 2012). Moldoveanu and Dobrin
(2012) identify organizational-flexibility as “the capability of playing and articulating the managerial functions in the
context of processing the goods, services, different works etc., various measures, in respect of performance and relative
control of the turbulent environment.” Therefore in the process of assessing the current level of flexibility of
organizational constituents of AMW, both qualitative and quantitative elements within the entity should be measured.

7
1.1.1 Assessment of Culture & Structural Flexibility at AMW
As demonstrated, organizational flexibility could be derived through a varying set of elements within it, and the degree to
which such flexibility is necessary is determined through the identification of market dynamics. Accordingly, in order to
respond to such external forces, it is important to evaluate AMW‟s strategic orientation.
1.1.2 Sales Orientation and its implications on AMW’s responsiveness
Thomas et al (2001) explains sales-orientation as a business approach which “tries to utilize sales trends instead of
satisfying customer's needs”. AMW signifies low emphasis on building relationships with customer, , and high
emphasis on selling-tactics (A7, Appendix 2), which mean it has currently adopted the sales-orientation approach. Such
sales-orientation could bring about following limitations to the company in a highly dynamic environment. (Mehrabi et al,
2012).
Limitation of Sales Orientation Evaluation of limitation Implications on sustainability & flexibility
Focus on Short-term planning
Short-term gains are targeted through aggressive
sales tactics, and stringent commission structures
Fails to gain true form of employee-
engagement.
Confined in marketing & sales
Isolation of marketing/sales division from other
divisions. Functions perform in separation.
Reduces structural flexibility
Stifles inter-functional coordination.
Comparison of product-
performance with customer-
expectation
Results in sales-performance being higher/lower
than expected, which in turn would determine
level of customer satisfaction. (Parasuraman,
1994: Cited in Mehrabi et al, 2012).
Inability to determine true form of customer
satisfaction
Leads to inaccurate decision making
In such context, it is of vital importance that flexibility is leveraged from key elements at AMW to develop internal
efficiencies. However, prior to considering such internal elements, the implications of strategies used by AMW on its
flexibility must be evaluated.
1.1.3 Strategies used, influencing flexibility at AMW
AMW currently operates on a top-down planned strategy. (Appendix 2, A19). Such planned-strategies may result in
hindering the organization‟s responsiveness to market dynamics, as the process of deviating from strategic plans will
require significant time-consuming involvement of BoD and other decision makers.
Element Identification Evaluation Implication on Flexibility
Culture
Role Culture
(Appendix 2, A7)
Employees specialize on specific functional tasks.
The task orientation amongst employers and
employees are high as a result.
Stifles employees‟ creative scope and
willingness/ability to take initiative,
thereby reducing “HR flexibility”.
Structure
Functional
structure (Appendix
2, A9)
With centralized commercial/operational functions
for all brands which in turn manifests high
bureaucracy.
Creates clearly defined job-roles and responsibilities
on employees.
Results in reduction of speed-to-market,
swift decision execution thereby reducing
both AMW‟s “commercial flexibility”
and high-bureaucracy reduces company‟s
“operational flexibility”. The narrow-
span-of-control, as a derivative of tall
functional structure creates barriers on
employee flexibility.
Span of
control
Tall-organizational
hierarchy, resulting
in a narrow-span of
control.
Each line manager has less than five directly-
reporting employees, which result in close scrutiny
of employees‟ tasks.
Learning &
Development
(Freedom to
learn)
Vocational training
targeted centrally
towards managers,
learning modules on
intranet not updated
The lack of efficiency and novelty of the currently
deployed learning and development, and the
comparative differences of learning programs
available for managers vs employees, will result in
below-par operational excellence.
As operational excellence is a
fundamental element of organizational
responsiveness and flexibility, this will
ultimately result in hindering the
organizational flexibility.
Table 1.2
Table 1.1

8
Table 1.3
Illustrator 1.1
Source: Porter‟s Generic Strategies (1985)
Competitive Advantage
DifferentiationLower Cost
MarketScope
BroadNarrow
Cost Leadership Differentiation
Cost Focus Differentiation Focus
Stuck in
the
middle
Even though the strategic orientation of AMW is
demonstrated as „differentiation‟, (A22, Appendix
2), the value chain (A6, Appendix 2) displays
characteristics of that of cost focus/low price. As
a result, AMW faces the risk of being
strategically stuck-in-the-middle (illustrator 1.1)
This would create difficulties in generating
strategies to speedily seize competitive advantage
for AMW, thereby reducing its strategic
flexibility.
1.1.4 How is leadership influencing flexibility at AMW?
The management/leadership styles at AMW predominantly display the physiognomies of an “authoritarian” (A20,
Appendix 2), which entails company‟s leaders „selling decision‟ which hinders employee empowerment.
1.1.4.1 Leadership styles and Communication
Authoritarian leadership results in a significant degree of repression of honest two-way communication between
employees & senior-managers. (Refer appendix 3 – communication).
Another consequence of this is employees not being promptly informed about decisions which affect them at the
workplace. (Task 2.1.5.1) which will result in the breakdowns in the communication process, as accurate feedback of
employees would not reach managers.
1.1.5 Degree of flexibility derived through AMW’s Value Chain
The value chain exemplifies how customer value accumulates along a chain-of-activities leading to an end-
product/service (Porter, 1985, cited in Sekhar, 2010). (A7 Appendix 2). Ensuing demonstrates four key value chain
activities which have significant impact on company‟s level of flexibility.
Value Chain Element
& evaluation
Implication on Flexibility
Infrastructure:
Central-warehousing Stifles the flexibility of delivery and extensive costs in transportation as 4 two-way
commutes to distances over 200km are done weekly.
Procurement:
Centralized commercial division Reduces the flexibility of ordering processes and frequently increases cost
of raw material.
Human Resources and
Operations:
Rigid rules on incentive schemes with efficient execution of training programs result in high labor turnover
in factories thereby reducing H.R. flexibility
Marketing and Sales:
Due to absence of efficient CRM systems and clearly marketers‟ defined job-responsibilities of attracting
new customers, the Commercial flexibility of AMW is challenged.
1.1.6 Critical evaluation of resources influencing flexibility at AMW
ResourcesAudit&
Analysis
Existing Resource Remarks Evaluation of Effect
General Organizational
Resources: (Refer
Appendix 2 A2)
Good key-stakeholder relationships
Tight brand-communication guidelines
 Facilitate the organizational flexibility.
 Adversely affects commercial flexibility.
Physical Resources:
(Refer Appendix 2 A2)
Centralized commercial resources
Only 2-key assembly points
 Stifles operational flexibility
 Reduces responsiveness to quick-orders

9
Financial Resources:
(Refer Appendix 2 A2
Financial resources involve the circulatory
assets of the organization, and have a
significant impact on the economic
performance
 Accordingly they impose their rational
use, acting as constraints against
flexibility.
Human Resources (Refer
Appendix 2 A2)
Complex control mechanism, target vs. debt
collection based incentives and undocumented
informal lines & use of power and authority
High bureaucracies
 Reduce creative scope and innovative
thinking of employees, thereby reducing
HR flexibility.
1.1.7 Gap Analysis: Current State vs. Ideal State of Flexibility
Based on the above identified elements, the following gap analysis if performed to determine the variance between where
AMW wants to be, and where it actually is, in terms of flexibility and responsiveness.
*Note: When performing the stated gap analysis, varying levels of weightage was assumed to each element according to
their capacities to influence AMW‟s adaptability.
Assessment Category Current
assessment
(Evaluation)
Degree of encouragement to learn Appendix 2 A13
The degree of readily available
material to learn
Appendix 2 A18
Capacity to learn Appendix 2 A18
Learning and development at all levels of AMW
hierarchy
Appendix 2 A18
Structure‟s support for learning Appendix 2 A13
Ability to accommodate learning into
current job roles
Appendix 2 A18
The team spirit/level of shared purpose Appendix 3
Degree of honest/open communication Appendix 3
Level of risk aversion Appendix 2 A15
Importance given for retain and
transfer of knowledge
Appendix 2 A16
Importance given for enhancing
employee creativity
Appendix 2 A10
Level of process flexibility encouraging creativity Appendix 3
Leadership to facilitate innovation & learning at AMW Appendix 3
Leadership to facilitate collective decision making &
employee empowerment
Appendix 2 A12
Cultural support systems to accommodate learning Appendix 2 A8
Level of inter-functional coordination Appendix 2 A7
Consideration of Flexibility as a strategic competency Appendix 2 13
Gap Analysis
Table 1.5
Table 1.4

10
Table 1.6
RECOMMENDATIONS
1.2 BRIDGING THE GAP: RECOMMENDATIONS FOR IMPROVING THE
FLEXIBILITY OF AMW
The following strategic actions can be deployed to improve the current level of flexibility of AMW to match the ideal
states, thereby possibly preventing the occurrence of a strategic flux.
Current
Situation
Recommended
Option
Justification
High
bureaucracy&
Inefficient
operational-
processes
Lean Management
By understanding the three P‟s (Purpose, People & Processes) of lean management,
through practicing Total-Quality-Management (TQM), and six-sigma models, AMW can
benefit from:
 Heightened waste elimination,
 Improved process efficiencies and
 Minimization of defects in trading affairs,
, from vehicle procurement to sales to after sales.
Tall-Functional
Structure &
Centralized
Decision
Making
Flat / Matrix
Structure &
Decentralized
Decision
Making
By creating a flat organizational structure, the span of control will be widened, which
will allow the facilitation of decentralized decision making – which will operate as an
employee-empowering mechanism.
Also by removing the functional segregation and introducing a matrix structure, AMW
can eliminate central control, and enhance inter-functional coordination.
Accordingly the project teams generated through the flat, matrix structure will improve
employee empowerment.
Planned
Approach
Emergent
Approach
Through the emergent approach (Refer Appendix 3, A19), AMW will increase its
operational flexibility and responsiveness, and it will be able to swiftly adapt to the
environmental changes.
Critical-factor: In doing so, senior managers should efficiently control the process aspects
of strategy.
Lack of
training,
development
and knowledge
management
Develop a learning
culture
Learning culture will characterize optimum us of employee creativity and reaching high
levels of empowerment. (Discussed in point 1.2.1)
Sales
Orientation
Adopt Market
Orientation
(Narver and Slater,
1990)
Market-Orientation will create AMW more responsive to competitive actions, and enable
better understanding of their customers. The flexible flow of information across the
company will facilitate employee empowerment as well. (Discussed in detail in 2.1.3.1)
1.2.1 How Can Developing a Learning Organization Help Improve AMW’s Flexibility?
AMW currently possess limitations in employee training & development and knowledge sharing (A16, Appendix 2), it is
imperative to develop a learning culture within the company where “people continually expand their capacity to create
the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is
set free, and where people are continually learning to see the whole together” Senge (1990).

11
Five disciplines of a learning organization Source: Adapted from Senge (1990)
There are five key disciplines that an organization must respect in order to be considered as a learning organization.
1.2.1.1 Five Disciplines of Learning- The core of a learning organization
Learning Discipline
Available Tool for
AMW‟s leaders
Use of tool at AMW
Personal Mastery:
Perceptual Positioning
At meetings, adopting several perspectives from both managements &
employees in an experimentally rich manner
Cognitive Re-framing
After conducting above; search, identify and dispute irrational ideologies, and
evaluating positive alternatives.
Shared Vision
Concept-Shifting
Drastically altering the perceived strategic concept of AMW which employees
possess.
Values Alignment
Calibrate fundamental values acting as driving forces of employee commitment
towards organizational success.
Mental Models Reflective inquiry
Placing current research on a broader context than before and demonstrate a
dispassionate/un-biased perspective.
Team Learning Action learning
Brainstorming inputs on Organizational-Problems, Data-Gathering, Business-
Planning, and Implementation.
Systems Thinking Systems Thinking Maps Creating visual descriptions of the multiple key points of discussions.
1.2.1.2 Encouraging the practice of double-loop learning
This section of discussion on making AMW a learning organization is based on creating an atmosphere that allows single,
double and triple loop learning.
AMW employees display characteristics of Single-loop Learning, where they take corrective measures for actions
performed regarding problems and negative feedback is taken, based on pre-determined objectives & goals.
Double-loop Learning
(Needed at AMW)
Governing
Values/Assumptions Actions Problems/Error
Single-loop
Learning
(Currently at AMW)
Single-Double Loop Learning Source: Argyris & Schön (1978)
Illustrator 1.3
Table 1.7
Illustrator 1.2
Personal Mastery
(1)
Shared Vision
(2)
Mental Models
(3)
Team Learning
(4)
Systems Thinking
(5)
Learning
Organization

12
Table 1.8
But In order to realize true form of learning, AMW should be able to question the adequacy of the pre-determined
objectives and operational norms, and assess their relevance and capacity to rectify the problems occurred, i.e. Double-
loop Learning (Cartwright, 2002).
1.2.1.3 Knowledge Management – A key for creating a Learning Organization
Ndlela and du Toit (2006) explain that the success of the enterprises of 21st
century depend critically on the quality of
knowledge they apply in their business processes. As automotive industry as-a-whole includes highly specialized and
technical aspects to it, maintaining that knowledge of those who have been employed within the industry makes it
significantly unique-resource.
In such context, AMW should actively overcome barriers for knowledge management (Refer A24, Appendix 2), and create
the right climate for knowledge ownership & management.
Element Application for improving knowledge management
Culture of Freedom
Adapt a “person culture” at AMW, and create the employee the „central focus‟ and develop surrounding
structures as supportive mechanisms.
Open Communication Adapt open-door policies & management-by-walking-around leadership practices.(MBWA)
Training and
knowledge-sharing
Initiate cross departmental training programs, and facilitate experienced employees to share their
knowledge with others
Recognize & reward
creative thought
Encourage employees to develop 2 new concise business improvement proposals as part of PDR/KPI, and
reward such employees with physical implementation of feasible proposals.
Process-Development Create a benchmark within the division to be distinguished as a „best-practice‟ within AMW
Technology Efficient use of Intranet & SAP systems to facilitate knowledge retrieval and application.
1.2.2 Encouraging Innovation within AMW
Mone et al (1998) identifies innovation as the most important determinant of firm‟s performance. For an organization like
AMW competing in a dynamic setting, the success will predominantly depend on „innovation‟ in not only new products,
but new processes, technology driven operations, product value additions for customers as well as new forms of
marketing.
1.2.2.1. Countering the Strategic Drift through Value Innovation
One of the more significant risks of having limited flexibility for AMW is that the company would gradually coast-away
from the changing environment. (Refer Appendix 2, A5). This is epitomized in the „Strategic Drift‟ model by Johnson,
Scholes & Whittington, (2008). As displayed, AMW‟s position indicates a gradual drift-away with the environment.
Illustrator 1.4
Strategic Drift Model Source: Johnson, Scholes & Whittington (2008)
AMW
Drift
Phase 1
Increment
al Change
Phase 2
Strategic
Drift
Phase 3
Flux
Phase 4
Transformatio
nal change or
demise
Environmental
Change
AmounttoChange

13
The strategic drift can be a cause of several issues, and its implications on AMW will be dire. For an example:
 AMW is used to making incremental changes to its strategies thereby allowing it to be aligned with the
environmental changes. (Phase 1).
 In order to prevent AMW from reaching the period of flux and thereafter demise, it may have to,
o Create a quantum leap of innovation and create a revolutionary change as a proactive measure.
o Create a transformational change before the occurrence of organizational demise.
1.2.2.2 Creativity – The foundation of Innovation
Rigie and Harmeyer (2013) define creativity as “generating new ideas and concepts, or making connections between
ideas where none previously existed”.
This area discusses how creativity can be enhanced at AMW via Ryde‟s-Thinking-Repertoires framework. Ryde (2007)
identified several dominant functions which stifle an organization‟s creativity. These were audited at AMW (Refer A21,
Appendix 2) and the following shadow functions (and the degree of shadow function required) are recommended for
creativity stimulation within the company.
1.3 CONCLUSION
In order to match the dynamic automotive industry, AMW should recognize the impact of having below-par levels of
flexibility & responsiveness, which will hinder the adaptability to the environment. As reconciliation to this, AMW should
develop an internal marketing plan to deploy the recommendations made above. By doing so, the company will be able to
derive sustainable long-term competitive-advantage.
Dominant
Function
Shadow
Function
Degree of Required
Shadow-Function
Execution of
Shadow Function
(A10,Appendix2)
Strengthen
based
Thinking
Create a „can-do‟ attitude amongst
AMW directors/senior-mangers, so
that it will transpire of employees to
take initiative.
V.High
Feeling
Thinking
Insight
Thinking
360 Degree
Thinking
Re-integrated
Thinking
Exit
Thinking
In strategic meetings, increase the
use of emotions, relating customer
protection and employees‟ lives
enrichment etc.
Make use of wealth of knowledge of
experienced employees, and
encouraging new uses of the gathered
knowledge.
Generate cross-functional teams in
determining feasibility of new
projects, or addressing current issues.
At meetings, evaluate budgets and
possibilities of accommodating more
than one option of execution.
Avoid gaining more-and-more
insight on feasible ideas when they
already make clear sense.
Moderate
Moderate
High
V.High
High
Table 1.9

14
Chapter
-Two-
Development of an
internal marketing
plan in delivering
cultural and
organizational
change, in making
AMW a learning
organization.

15
2.1 INTRODUCTION – INTERNAL MARKETING FOR CHANGE
MANAGEMENT
This chapter discusses the importance of developing an internal-marketing (IM) program aimed towards the internal
marketplace of AMW, in carrying out the recommended changes demonstrated in task 1.
Internal-marketing is a “the building of customer orientation among employees by training and motivating both
customers-contact and support staff to work as a team" (Kotler and
Armstrong, 1991).
As depicted in illustrator 2.1; Hooley et al (2004) explains that
internal-marketing should be considered as an input to marketing
strategy, parallel to the external-marketing-program.
This will allow AMW to reap benefits from exploiting new
opportunities, and unearthing neglected resources towards
achievement of a greater competitive advantage.
Developing the change management process
Accordingly, the ensuing discussion will identify, evaluate and justify the adaption of the following planning framework
in carrying out the change management process at AMW.
Each of these 6 phases will facilitate the change-management-process across AMW, in establishing the
recommendations made in task 1.2, to ultimately develop AMW in to one that can be considered as a learning
organization, derived through market-orientation.
Phase 1: Trigger
for change &
improvement
Phase 3: Score
exploration &
Creativity
Phase 2: Audit,
Analysis &
Evaluation
Phase 4: Shape,
Design &
Planning
Phase 5: Action,
Implementation &
Control
Phase 6: Unit,
Consolidation &
Learning
Illustrator 2.2
Adapted from Hooley et al (2004)
Marketing
Strategy
Internal
marketing
Program
External
marketing
Program
Illustrator 2.1
Process of Change Management adapted for AMW

16
2.1.1 Phase (1): Trigger for Change and Improvement
In this section, the key indicators of requirement for organizational change, along with the ability to change, is considered
by basing such consideration on the gap analysis (Refer Task 1.1.7).
2.1.1.1 Where are we now?
The initial phase attempts to determine the current position of the organization. Accordingly, the internal-audit findings
are cross-examined with the external environmental dynamics, to determine the „trigger‟ to initiate change at AMW.
How to determine triggers?
Simultaneously it is imperative to ascertain the level of needs-fulfillment of the employees within the company.
Need identification & evaluation of AMW employees through Maslow‟s Hierarchy of Needs (Via attitude Survey)
Accordingly, the ensuing step entails analysis of these elements to determine to what extent these elements trigger the
need to change (Discussed in task 2.1.2).
Self
Actuali
sation
Aesthetic
Esteem
Love
Safety
Physiological Good – Acceptable satisfaction on salaries & working environments.
Average – High job security without majority of employees being
permanent, but limited benefits/perks (life insurance etc.) offered.
Average – Employees are recognized for creative thought, but
authoritarian leadership reduces expected respect for employees.
Good –Strong reputation of AMW makes employees feel sense of pride
Average – Needs improvement in; collective idea generation &
encouraging engagement in recreational activities.
Low – Limited career progression and participation in decision making
for executive & below level staff.
A4, Appendix 2 A5, Appendix 2 A6,
Appendix 2
Appe
ndix 3
A12 / A8 / A11
Appendix 2
Macro
Political Economical
Socio-
cultural
Technological
Meso
Supplier
Bargaining
Power
Customer
Bargaining
Power
Industry
Rivalry
Micro
Value
Chain
Attitude
Survey
Leadership Structure
Strategic
Orientation
Illustrator 2.3
Determining Triggers for Change at AMW

17
2.1.2 Phase (2): Audit: Analysis & Evaluation
This section assesses the intensity of the trigger for change caused by dynamic elements from both within and outside
AMW.
Internal Triggers of Change
InternalEnvironment(IE)
Identification Analysis Trigger for change
(1) Facilitation towards executions of
employees‟ creative initiatives is
low. (Appendix 3)
Even though creativity is recognized, the lack of
facilitation towards their execution will
demoralize employees
High Medium Low

(2) Very low inter-function
coordination. (A7, Appendix 2)
Highly disadvantageous when trying to initiate
cross-functional groups.
Lack of team work results in unrealization of
synergy.

(3) Centralized commercial procedures
(Task 1.1.5)
This could result in delays in carrying out urgent
procedures

(4) Metaphorical analysis on AMW as a
machine. (Appendix 3)
This entails AMW requiring refining of
processes to overcome inefficiencies.

(5) Functional structure & high role
culture (Task 1.1.1)
Extensive control mechanisms will result in
stifling of flexibility, as discussed in chapter 1.

(6) Authoritarian, selling leadership
(Task 1.1.4)
Will stifle employee creativity, employees will
get into a state-of-mind where they must be
spoon-fed of how tasks should be accomplished.

(7) Top-down formulated strategy
(A11, Appendix 2)
Reduces overall strategic flexibility, and can
adversely affect strategic fit with environment.

External Triggers of Change
Identification Analysis Trigger for change
ExternalEnvironment
(EE)
(8) High change of automotive
technology (A4, Appendix 2)
With expected growth in demand for electric
cars, equal growth for related services is
expected, to which AMW does not cater
currently.

(9) High bargaining power of suppliers
and customer (A5, Appendix 2)
Due to high dependency on suppliers, and
dynamic nature of customer requirements, being
unable to proactively address their dynamics will
result in losing customers/suppliers.

(10)Lack of competitor intelligent
systems (A2, Appendix 2)
Will reduce ability to counter competitor
movements in exploiting new opportunities.

Evaluation of Drivers & Resisters of Change
Illustrator 2.5 depicts a force field analysis developed by basing the drivers and resisters of change on the analysis of
audit findings carried out in the preceding task.
Table 2.1
Table 2.2

18
Accordingly, it is evident that drivers-for-change overpowers the resisters (49 > 42). But it is imperative to realize that the
two dimensions vary on the slightest of margins, which reveals that the process of executing the change-program will
meet various impediments along the way.
Accordingly, the scope of the proposing IM plan attempts to encompass above mentioned elements, in order to drive
change within AMW.
2.1.3 Phase (3): Scope: Exploration & Creativity
Third phase of change-management considers innovative/ creative solutions to address triggers, discussed in task 2.1.2.
Accordingly, IM plan attempts to improve upon the limitations exemplified in current sales orientated (task 1.1.2)
towards achieving market orientation.
ChangeandimprovementatAMW
Internal-Environment
 Limited facilitation for employee initiatives (5)
 Low Interfunctional-coordination (7)
 Lapses in centralized commercial procedures (4)
 Limitations of functional culture (8)
 Authoritarian leadership resulting in loss of
creativity encouragement of employees (8)
External-Environment
 Dynamic nature of contemporary automotive-
industry (9)
 Bargaining power of suppliers & customers (8)
Drivers of Change
 The established functional structure has resulted in
task-specialization of employees, so they will be
reluctant to accept new ways of doing things. (8)
Resisters of Change
 Since AMW is currently undergoing expansion,
decision makers will be reluctant to allocate money
elsewhere (9)
 Sales oriented strategic approach emphasizing on
short-term bottomline, than long-term sustainability
(8)
 Stringent process regulations of the managing-body
– Al Futtaim (8)
 High financial syndrome providing immense
importance of financial stability, which limits
process innovation + commercial flexibility (9)
Illustrator 2.5

19
However as every good plan begins with the „end‟ in mind (Covey, 1989) the subsequent step would be to document the
objectives.
2.1.3.1 Where do we want to be? : Reaching Market Orientation
Market Orientation and its implications on AMW’s responsiveness
Market orientation is “the organizational culture where beating competition through the creation of superior customer
value is the paramount objective throughout the business” (Narver and Slater, 1990) which, as demonstrated in Illustrator
2.6, operates on three key elements.
AMW demonstrates low-level of market-orientation (A10, Appendix-2). Therefore the scope of IM plan should initially
encompass the improvement of elements within the company which facilitates market-orientation.
Long term
objective
Short Term Objectives
Achieve perfect
internal synergy
within AMW,
and achieve
100% market
orientation
within AMW, via
the true adoption
of a learning &
risk management
culture, by 2019.
 Improve customer orientation by 52%; against the current score (A10, Appendix 2). Key areas of
improvement:
o Collection/monitoring customers‟ requirements
o Customer-satisfaction assessment
 Achieve 60% enhancement in competitor orientation – Ensure a 12% increase in all competitor-
oriented elements (A10, Appendix 2), across 5 years.
 Achieve 34% increase in the long-term perspective by emphasizing on internal-efficiencies as key-
element for market-improvement.
 Improve inter-functional coordination by 65%. Key areas of improvement:
o Increase structural flexibility – adopt flat matrix structure (task 1.2)
o Improve functional-integration in satisfying customer-needs, by 60%
 Improve AMW‟s person-culture by;
o Developing a management which focuses on customer issues, and emphasis delivering
customer-satisfaction.
o Developing employee-reward systems for market performance
Table 2.3
Responsiveness to change
Narver & Slater Model of Market Orientation Source: Extracted from Diasz, (2013)
Illustrator 2.6
Inter-functional
Coordination
Competitor
Orientation
Customer Orientation
Long term
profits

20
2.1.3.2 Establishment of scope for the IM plan
As per Hooley et al (2004) the scope of internal marketing ranges from delivering high standards of quality service,
developing effective internal communications, managing innovation with organization and as the implementing strategy
for external-marketing-plans.
As „implementation‟ & „communication‟ will be explained in ensuing discussions, the current attention will be on IM
towards high quality service & innovation-management at AMW.
IM for high service quality at AMW
It is apparent that AMW‟s success largely depends on the
employees who may not be in direct contact with the
marketing division. E.g.: customer-care staff, after-sales
service engineers, procurement agents, assembly-
plant/factory staff etc.
Therefore, IM addresses these employees‟ satisfaction as a
focal point, as that will directly have an effect on the
additional-value created for the end-consumer.
However, illustrator 2.7 shows AMW‟s current position as
„Coercion‟ where external-customer satisfaction is
achieved by changing employee behavior through directive
management and control systems (Refer task 1.1.4).
A significant drawback of this position is that it fails to sustain customer satisfaction, while limiting employee-flexibility.
Therefore IM attempts to realize both internal and external customer satisfaction, to achieving „Synergy‟.
IM for innovation management at AMW
In this regard, Hooley et al (2004) discusses three key dimensions of innovation management, which is applied within the
context of AMW as follows.
Illustrator 2.7
Synergy Internal euphoria
Alienation
External customer satisfaction
High Low
Internalcustomer
satisfactionLowHigh
Source: Adapted from Hooley et al (2004)
Customer satisfaction: The internal and external market
Coercion
Looking at
customer
needs
•Maslow's hierarchy (illustrator 2.4) demonstrates limitations in self-actualisation &aesthetic
needs fulfillment of AMW employees, which could potentially make innovation ineffective.
Delivering
the goods
•After realising what matters most to the employees, meassures (task 2.1.4.2) can be taken to
rectify any gaps that currently persists.
Raising
Realistic
expectations
•It is important to make sure that the proposed improvements and that which is communicated
to employees is realistic, as unrealistic expectations will result in employee grievances
Illustrator2.8
2.7
Dimensions of Innovation Management Source: Adapted from Hooley et al (2004)

21
2.1.4 Phase (4): Shape, Design and Planning
After determining the objectives and scope of change for AMW, the designing and planning of IM plan can be initiated.
2.1.4.1 Internal Market Segmentation
The employee base of AMW is segregated according to the level of commitment which they would portray towards
the change program, as follows:
Internal Market
Segment
Key Characteristics
Example of employee segment at
AMW
Initiators Employees who identify need for change Sales and Marketing employees
Campaigners Employees who sees benefits of change
Directors, Senior-managers, Key
shareholders
Opponents Employees who actively resist change Operations and Accounts employees
Neutrals Employees who are yet to be convinced / disinterested in change
Part-time workers/ in-plant trainees,
interns
2.1.4.2 The Internal Marketing Mix
In designing the marketing mix for AMW, it is customized for internal employee segments as follows:
Marketing
mix
Initiators Campaigners Neutrals Opponents
Product
The product will be the “Change Management Plan” itself. It will be the plan of creating AMW a learning
organization, through the adoption of innovation and flexibility, facilitated by market orientation.
Price
Limited focus of price, as
initiators will determine
the need to change, ergo
will have high tolerance
on price of change.
Price will be the
sacrificing of other
projects which
competed for resources
with the IM plan.
Price will be; having to step
out of their comfort zones.
Price will be the
psychological price they
will have to bear in terms of
changing procedures,
hierarchies, adopting new
values etc.
Promotion
*(Communic
ation Plan)
-Comm.-objective:
Focused on involvement &
morale building.
-Comm.-objective:
Involvement building
through Goal Setting
-Comm.-objective:
Help employees to relate to
rapidly changing
environment and its
implications
-Comm.-objective:
Damage control, Countering
pessimism
-Communication Mix:
Advertising: Through
magazines and newsletter
- Communication Mix:
Direct mail: Memos to
BoD, and internal email
Sales promotions:
Recognition schemes of
change stars
Advertising: Notice boards
& newsletter
Sales promotions:
Recognition schemes of
change stars.
Personal Selling: Face-to-
face meetings, employee-
conferences
Personal Selling: Incentive
schemes, and bonuses
-Key-Message:
On the hasty
implementation of the IM
plan
-Key-Message:
On how change-strategy
will improve AMW‟s
bottom-line.
-Key-Message:
On positive aspects of
change, and benefits of
embracing it.
-Key-Message:
On how change will not
alter work-
procedures/hierarchies for
the worst, but for better.
Place
Briefings & staff training
sessions; done as soon as
approval for change is
received.
Formal meetings at the
AMW “cinnamon”
board-room
Committees and staff
seminars
Informal conversations,
Social occasions &
workshops.
Ultimately, the HR division of AMW becomes the ultimate „distribution-channel‟ (Hooley et al, 2004), since it will
streamline recruitments, training & development, and reward systems in line with the internal marketing strategy,
thereby creating a culture which is more adoptive of IM plan.
Table 2.4

22
Physical
Evidence
Delivery of change
implementation by
„initiators‟ via conferences
Presentations done by
change-advocates,
stressing the financial
benefits of change
Display of interactive
videos
Training sessions &
workshops on attitude
building towards change
People
Involvement of teams of
employees, consisting
change-advocates
Involvement of senior
managers who support
change initiative.
Involvement of HR
division‟s senior staff-
members
Involvement of HR
division‟s senior staff-
members and Key opinion
leaders of AMW.
Process
Implementation before
notification via e-mail
Discuss with all key-
stake holders and
determining
implementation strategy.
Hold educational forums
and gain support for joint-
implementation along
with advocates
Hold negotiations with
unions in an attempt to reach
consensus
2.1.5 Phase (5): Action, Implementation and Control
This could be determined as the most vital phase of change management, since it will entail physical implementation of
change within the company.
2.1.5.1 Internal Marketing Execution & Implementation
Successful implementation of change depends on successful execution of the IM. Hence it is vital to precisely understand
what elements of AMW needs changing, degree of change required, and how to consolidate change.
The following 3 step model introduced by Kurt Lewin (1947) is used for change implementation at AMW.
(i) STEP 1- UNFREEZE
A) Examine the Status Quo
The gap analysis (Task 1.1.7) depicts limitations across several aspects within AMW. Such limitations will reduce the
company‟s ability to realize objectives, stated in task 2.1.3).
Illustrator 2.9
Kurt Lewin‟s Change management model Adapted from: Kurt Lewin: Human Relations (1947)
•Examine Status
Quo
•Increase Drivers
•Reduce Resistors
Unfreeze
•Take Action
•Manage Change
•Involve People
Change
•Establish new ways
•Reward Desired
outcomes
•Consolidate Change
Refreeze
Table 2.5

23
B) Increase Drivers & Reduce Resisters
- In order to capitalize on the drivers of change (task 2.1.2), AMW should communicate them across the company, and
heignten employees‟ awareness of the need for change. At the stage, it is imperative to recognize who the
„campaigners/initiators‟ of change are, as they will facilitate proactive communications in favor of change.
- The most significant resistence for change can be expected from „opponents‟. Accordingly, the marketing mix (Task
2.1.4.2) should successfully target their concerns and communicate effectively.
Communication – A Vital Element of “Unfreezing”
- The key to capitalize on drivers and reduce resisters, becomes informing the employees and all other stake holders of
the necessity of change, which should reach the employees through formal means, before grapevine and rumours.
Therefore communication becomes a vital point of success for the change program.
- It is imperative to make the communication process a transparent two-way process between the leaders/change
initiators & employees/change opponents via employee consultations. For this purpose, the stages-of-employee-
consultation-and-negotiations model by Cockton (2005) can be used.
Stage Application to AMW
Preparation Highlighting the underlining need for change (gaps) & objectives of the change, discussed in task 2.1.3
Approach
Negotiate on a platform consisting opponents and campaigners, and discuss the implications of change
towards future success by illustrating a possitive image of the future of AMW, as well as the individual
employee‟s benefits.
Consultation
Invite all members-of-negotiation to put forward alternative opinions, and discuss their viability, without
imposing decisions on changes.
Treaty Document the consensus reached at the negotiations and circulate across all stakeholders of IM.
(ii) STEP 2 – CHANGE
A) Take Action to Implement Change at AMW
This step addresses physical execution of IM at AMW, through then implementation of recommendations made in task
1.2, towards the achievement of predetermined objectives, stated in task 2.1.3. It should be noted that the below
mentioned are only the underlining changes needed to develop market-orientation at AMW.
Element Change executed Evaluation of Implications
Structure
- Reduced middle level managerial layers & create a
matrix structure with cross-functional project teams.
-Will create resistance from line-managers being
impacted
-Will create facilitation from employees being
empowered from wider span of control
Operations - Reduce bureaucracy and eliminate value-reducing
procedures
-Will increase efficiency, and speed of decision making,
thereby increasing operational flexibility.
Training - Increase outbound training
- Improve intranet to support learning & development
- Expand ERP systems to facilitate knowledge
management
-The skill-building and capability-enhancement of
employees will allow gaining their support. This will
create campaigners.
Human
Resource
- Initiate employee recognition schemes.
- Create „AMW change stars‟
-Will further develop initiators through the recognition of
employees who embrace and facilitate change.
P
A
C
T
Table 2.6
Table 2.7

24
B) Managing Change – Essential for Winning Employee Engagement
Neuheimer (2010) identifies change as a journey which should be careful managed spread across anextensive time frame
without imposing it as a destination.
The journey-of-change is bound to flow across several stages, with each stage having a different level of acceptance
towards change (illustrator 2.10).
As mentioned above, the reaction to change may differ from one employee segment to another. Hence the change journey
should be identified, customized accordingly.
Opponents & Neutrals Campaigners & Initiators
-Shock, Denial and Confusion-
High – They will see negatives of flat structures and
decentralizations. This will lead to high uncertainty and adverse
notions on impending change.
Low – They will see benefits of change, but there is a
possibility of them being less optimistic when realistic
implications of change are unearthed.
-Anger/Resistance & Reluctance-
Despair – Especially the managers, whose autonomy is reduced,
will actively resist the change. Hence it is vital to prevent
complete-withdrawal of these employees at this point, as it could
breakdown the change-journey.
Doubt – The initial enthusiasm could be changed to doubt,
hence it is important to highlight key benefits of change.
-Understanding & Full-adoption-
Exploration – The confidence towards change will gradually shift
to positive, but it is vital to consolidate this by continuing on the
learning and development.
Engagement – Since campaigners of AMW consist majorly
top-tier leaders, and market-driven employees, efficiency-
improvements/cost-cutting within AMW can be leveraged as
focal-points to win their engagement.
ReactiontoChange
Time
Shock
Denial & Confusion
Anger & Resistance
Reluctant Acceptance
Understanding
Full Adoption
Reaction to Change Source: Adapted by Wilson et al (1993)
Change Change Accepted
Illustrator 2.10
Table 2.8

25
(iii) STEP 3 - REFREEZE
A) Establish New Ways – Post Change-Implementation at AMW
At this point, the change is established, and the engagement of all internal-employee segments has been attained through
employee negotiations, consultations, and the change-journey has reached full adoption at AMW.
In such context the following Mckinsey‟s 7S framework depicts the semblance of AMW, once the recommendations are
carried-through the company, through the strategic change-management program, facilitated by internal-marketing,
discussed throughout task 2.1, thus far. “Effective organizations achieve a fit between these seven elements” (Hanafizadeh
and Ravasan, 2011).
Dimension Consolidated Change at AMW
Structure
Flat, matrix organizational structure;
 Facilitating inter-functional corporation,
 Wider span of control.
Strategy
Emergent strategic approach;
 Facilitating operational flexibility,
 High responsiveness to environmental-changes.
Staff
High employee satisfaction and positive attitudes displayed throughout;
 Actively participating in supporting change to become „AMW Change Stars‟
 Better strings of communications with senior-managers
Style
Transformational leadership achieved through;
 Sub-ordinate centered transformational leadership
 Enhanced employee-empowerment through enhanced accountability
System
Efficient IT systems development;
 To enhance the productivity of ERP systems linking knowledge hubs of different divisions
 Facilitating retrieval of information to further develop competitor intelligence
 AMW Corporate blog for internal communication – for employees to voice their concerns
Skills
Overall capability development of employees/employers alike through;
 Cross functional team operations
 Career-development programs for overall capability/skill development, than just vocational training.
Shared
Value
Enhance the strength of „documented‟ values;
 By practicing employee empowerment and capability development
 Through integrative effort towards achieving customer satisfaction
 By establishing „employee strength‟ as a key resource in achieving competitive advantage.
B) Reward Desired Outcome & Consolidating Change
One strategy of rewarding desired outcome is through the active recognition of “AMW Change Stars”. But the
change program should be able to recognize short-term gains of change, and share their information with all stake-
holders of the change program.
Change consolidation is the ultimate phase of change-management process, which will be discussed in task 2.1.6.
Table 2.9

26
2.1.5.3 Budget Allocations and Time Frame
LKR („000) 2015 2016 2017 2018 2019
1) Infrastructure & Resource development
Value Chain Realignment 20,000 20,000 18,000 18,000 14,000
Report hierarchy and structural configuration 4,000 4,000 4,000 - -
Installation of Competitor Intelligence Software (CIS) 8,500 - - - -
Development of AMW corporate blog 2,000
2) Learning & Development Enhancement
Intranet development for online learning 2,000 2,000 2,000 2,000 2,000
ERP system expansion for knowledge storing/sharing 8,000 6,000 - - -
Outsources skill development training for CFT‟s. 4,500 - - - -
Outbound training for team-work and communication 5,000 5,000 5,000
Trainings leaders for EQ development 5,000
3) Human Resources and Culture Realignment
Employee Recognition for change facilitation
Cultural alignment to market orientation 8,000 8,000 10,000 10,000 10,000
4) Internal Marketing Communications 4,500 4,500 4,500 4,500 4,500
TOTAL BUDGET 80,000 53,000 52,000 43,000 44,000
A significant proportion of budget allocation is targeted towards infrastructure and resource development. (Illustrator
2.11) because as it was identified in the gap analysis (task 1.1.7), the procedures and structure were the elements which
characterized extensive inflexibilities
2.1.6 Phase 6 – Unit Consolidation & Learning
Once the change is executed and implemented across AMW, the consolidation in procedures, hierarchies, culture,
resources etc. is vital in maintaining the momentum of change and encouraging the reinforcement of desired values and
attitudes towards market orientation at the company.
41%
18%
33%
8%
Budget Allocations Infrastructure &
Resource development
Learning &
Development
Enhancement
Human Resources and
Culture Realignment
Internal Marketing
Communications
Illustrator 2.11
Table 2.10

27
2.1.6.1 Institutionalizing the Change through Learning & Coaching
As depicted in illustration 2.12, learning and transferring is a cycle which continuously realigns the organization‟s
learning and transference of knowledge, in accordance to the changing requirements, thereby ensuring the sustainable
consolidation of its intended objective – change management.
Consolidation of change will be enabled through the use of following learning model.
Learning Stage Recommendation Implication on Change Consolidation & Learning
Learning Needs
Identification
Survey employee attitudes concerning vocational
requirements to embrace new-ways of doing-things. E.g.:
Advanced SQL/Excel, Using knowledge-hub of AMW etc.
Will be helpful in realizing employee
concerns/confusions regarding changed procedures.
Establishing
Contexts
Develop key areas to be addressed through learning
Will improve the efficiency of learning by having a
focused strategy.
Learning Design
Document key objectives of systematic learning
Will facilitate evaluation of learning accuracy
after the transfer is complete
Support Systems Embracing the established decentralized-(two-way)
communication systems
Improved ability to coach and mentor employees
through learning process
Learning
Solution
ERP systems training for employers/employees in
storing/retrieving/using company knowledge hub.
Will facilitate reviewing the experiences of change
and their implications
Learning
Transfer
Making use of reconfigured intranet and communication
systems, in transferring learning gathered by employees.
Will be a testament to the effectiveness of learning
& minimization of future mistakes
Learning
Evaluation
Periodic review of employee attitudes towards change, and
comparison against objectives.
Will facilitate informing of future
changes/improvements so success can be repeated.
2.1.6.2 Internal Marketing Evaluation
In order to consolidate change and maintain the momentum for success of future changes, it is necessary to evaluate the
implemented internal marketing strategy.
How to evaluate Internal-Marketing?
 Conduct quarterly attitude-survey, to identify shifts in employee concerns/satisfactions.
 External-customer satisfaction surveys, to determine shifts in customer satisfaction, number of complaints etc.
especially in functional areas of employees who were directly addressed through IM.
 Track the progress of cross-functional project teams, and results achieved through synergy, through;
Learning need
emerges,
identified
Establish
Contexts
Set objectives &
learning design
Support Systems,
workplace
preparation
Learning
Solution
Implementation/
Transfer of
learning
Evaluate the
learning
Systematic Learning & Transfer Model Source: Adapted from Cockton (2002)
Illustrator 2.12
Table 2.11

28
o Lead-time in planning vs. execution
o Number of complaints from members
o Financial viability of strategies implemented
o Communication between members
 Identify the employees‟ use of double-loop learning by assimilating how many times root-subject-matter is realigned/
reconfigured, in solving problems.
 Identifying on a quarterly basis, the number of creative ideas/ initiatives which have been demonstrated by employees.
2.1.7 Barriers and Potential Challenges for Internal Marketing
Meek et al (2008) identifies the following potential barriers of IM.
Potential Barrier/Challenge for IM Recommendations to Overcome Barrier
Opponents‟ strong & valid arguments -Before negotiating, gathering strong tangible/intangible evidence to counter arguments.
Potential for staff-turnover
-Communicate implications of change before its implementation,
-Use humor as a tool of reviewing change
-Confront ambiguities and demonstrate optimism for future
Financial challenge due to high cost
-Establish ROI over desired levels – reach optimum levels. Spread the return over 5 year
period.
Difficulties in gaining inter-
departmental support
-Create cross-functional project teams consisting senior-managers & employees of all
divisions, with a responsibility of achieving project objectives/goals.
Time insufficiencies in implementation
-Plan at least 6 months ahead of implementation, taking into consideration situational
implications on the internal-marketing program.
2.2 CRITICAL ASSESSMENT OF AUTHOR’S OWN LEADERSHIP STYLE
The internal marketing plan discussed above, entails the execution of several significant changes within AMW which will
therefore require the marketing manager – being the author – to perform the role of change agent within AMW, and
maintain the momentum-of-change across the company to ensure its success.
2.2.1 Identification of Author’s Leadership Style & Its Implications on IM
Implementation
Hence the current leadership style of the author should be assessed to determine the level of facilitation it will portray on
executing the proposed changes. Accordingly, a 360-degree leadership survey (including self, peers, superiors &
subordinates within survey sample) was conducted (Appendix 4) and the findings are interpreted through the Blake &
Mouton (1964) grid as follows.
1, 9
Country Club
9, 9
Team Leadership
Impoverished
1, 1
Authoritarian
9, 1
1, 2, 3, 4, 5, 6, 7, 8 9
9
8
7
6
5
4
3
2
1
ConcernforPeople
Concern for Tasks
Middle of the Road
5, 5 3.6, 7.6
Author‟s leadership style identification Source: Blake & Mouton (1964)
Table 2.12
Illustrator 2.13

29
Author‟s current leadership style is identified as “authoritarian”, where leader retains autonomy/majority consideration in
decision making, employees are provided with clear expectations of task (Lewin et al, 1939). Implications of this would
be following:
Features “supporting” IM plan implementation Features “restraining” IM plan implementation
 Focus on schedules will ensure timely implementation  Will fail to empower employees
 Tight hold of decision making will ensure intended
objectives will be met.
 Transactional nature of leadership will restrict true form
of employee engagement
 Will develop task-discipline on employees
 Lack of emotional-intelligence will limit ability to
empathize with employees
 Strong analytical thinking will reduce margins for error
 Autocratic nature will reduce the possibility of converting
„opponents‟ into „campaigners‟
2.2.2 Developing the Ideal Leadership Style
It is apparent that the ideal leadership style for
leading change at AMW will require a significant
amount of concern-for-people, as well as for tasks.
Ergo, with reference to Blake-and-Mouton model of
leadership (1964), “Team Leadership” can be
determined as most appropriate for the author.
In such context, the author will be adopting a
supportive role (Hersey & Blanchard, 1982) rather
than directive which is the ideal leadership for IM
implementation at AMW (illustrator 2.14).
2.2.2.1 Developing Author’s Supportive/ Participative Leadership-
Development
Needs
How to Develop? (Evaluation) Why Develop? (Justification)
Passion towards
grooming-
subordinates
Consider employee capability developed
as a key success determinant of the
project
Will encourage the allocation of more responsibility and authority
to employees, while mentoring which in turn will empower them.
Emotional
Intelligence &
Empathy
Undertaking extensive reading of books
such as Emotional-Intelligence: Why it
can matter more-than IQ (Goleman,
2009).
Once he masters his own emotions and learn its implications on
others, he will have higher empathy with subordinates, peers, &
superiors, which is vital in gaining majority acceptance towards
IM plan.
Stewardship
 Regenerate academic knowledge on
leadership
 Attend external learning &
development programmers
Will result in the author making a holistic effort with his team
towards improving the state of AMW better/more adaptive, and
sharing the positive outcomes with his team.
Higher enthusiasm
in accepting
challenges
The emotions of the author (as the leader) have a high chance of
being transpired across his team. So if he demonstrates great-
enthusiasm in the face of a challenge, same sentiment may emerge
within team.
S3
S4
S2
S1
Supportive
Behavior
Directive Behavior HighLow
LowHigh
Situational Leadership Model
Source: Hersey & Blanchard (1982)
Table 2.13
Illustrator 2.14

30
2.2.2.2 Personal Development Plan (PDP)-
The following two year PDP (along with projected budget allocation in LKR) is designed, according to specific
development needs of author.
Development
Element
2015 2016
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
EQ Training
0.1
mil
0.1 mil
Team building/
motivation skills
0.2 mil
0.2
mil
Delegation ability
0.1
mil
0.1
mil
0.1
mil
Two-way
communication
0.2
mil
0.2
mil
Negotiation skills
.02
mil
Stress Management 0.3 mil 0.2 mil
Coalition Building
0.1
mil
0.2
mil
Anger Management
Total LKR 1.3 Million (2015) 1 Million (2016)
2.3 CONCLUSION
This internal marketing plan discusses the execution of change management at AMW towards improving flexibilities and
overall responsiveness of AMW, along with an evaluation of author‟s own leadership development requirements for
successfully carrying out such change at AMW as a „change agent‟.
Table 2.15

31
Chapter
-Three-
Briefing Paper
-Business Risk Mitigation through
Internal Marketing-
By: Damien Patterson
Manager, Marketing
Date: 06th
November 2014
Subject Matter: The importance of focusing on business
risk as a management priority, and the
implications of the proposed internal
marketing plan on AMW‟s risk
management

32
3.1 ABSTRACT
This briefing paper outlines the types and levels of risks that AMW is exposed to, across multiple functional areas, arising
from both within the company, and from the external-environment. It further discusses the significant implications of such
risks to the company, at a tactical, operational or even at strategic level, if left unaddressed. Ultimately a comprehension
of how the revised internal-marketing strategy, as discussed across task 2, will effectively reduce the exposure of AMW to
such risks will be undertaken.
Keywords: Risk, Hazard, Uncertainty, Risk Management, Risk analysis, Mitigation, Internal Marketing, Risk Matrix
3.2 BACKGROUND INFORMATION
Changing market conditions, variances in the competitive arena, and numerous internal-dynamics, lead to the creation of
“risks” within the business environment. Numerous management-theorists have universally accepted and defined “risk” as
the probability of an event and its consequence (Kaplan and Garrick, 1981).
Knight (1921) has provided the fundamental differentiation for „risk‟ and „uncertainty‟ where he defined the former as
measurable uncertainty and the latter as immeasurable uncertainty.
Accordingly Risk Management can be identified as the practice of using processes, methods and tools for managing these
risks. Similarly it is of vital importance that AMW focuses upon risks, their implications and prevention mechanisms to
ensure sustainability.
3.3 ANALYSIS
This paper identifies four steps through which risk management can be transpired within AMW.
1) Risk identification
2) Risk analysis and assessment
3) Risk management and mitigation
4) Risk reporting and policy
3.3.1 Risk Identification at AMW
As initial step, it is important to realize the type of hazards (potential harm on someone/something) and the risks
(probability of negative consequence of hazard) (A22 / A23, Appendix 2).
3.3.1.1 Identification of Sources and Nature of Risks
The following depicts a holistic scenario of the risks associated with AMW and their implications.
-Internal Sources of Risks-
Type of
Hazard
Cause(s) of risk Analysis of implication Propensity
of Risk
Financial Current Expansion Phase
(task 2.1.2)
With current expansion of AMW into non-related industries, the short-
term financial stability of the company will be highly dependent on the
success of such investments and reserves.
Moderate
Health and
Safety
Machinery, Island-wide
Parts transportation, In-
office electricity
Calamities concerning machines & vehicles will portray severe
consequences to employees‟ health and legal predicaments.
Moderate/
High
Third-Party
(Customer)
Vehicle functionality Possible malfunction of vehicles sold to customers, will lead to adverse
outcomes which could affect the entire company and its brand image.
Moderate
Leadership
Competence
Authoritarian Leadership
(task 1.1.4)
Transactional nature of this leadership-style might bring short term
gains, but will fail to facilitate sustainable employee empowerment and
satisfaction.
High
Operational Bureaucracy &
inflexibilities (task 1.1.1)
Operational inflexibilities will have an adverse ripple effect on overall
commercial flexibility and innovation, as discussed throughout Task 1.
Moderate
Table 3.1

33
These internal sources of risk or internal-hazards are unearthed from within AMW. Therefore, they have a certain degree
of controllability, which drastically reduces the propensity of adverse consequence from such risks.
The ensuing table depicts external sources of risks, which; due to their uncontrollability, entail a higher propensity of
adversities.
-External Sources of Risks-
Type of
Hazard
Cause(s) of risk Analysis of implication Propensity
of Risk
Political
Change in political
power
A change in the ruling party may entail changes in regulatory policies.
It will also affect Taxes, charges, VAT, etc.
A change in budget allocations will have an effect on AMW‟s plans which
were made in parallel to the budget.
High
Social
Creation of newly
rich income groups
If their needs are not duly met, it could mean the loss of a key customer to a
competitor, which results in opportunity cost of his/her entire customer-
lifetime-value (CLTV).
High
Technological
Revolutionary
innovations in
automotive
The automotive industry is faced with frequent innovations, which will
derive the „first-to-market‟ opportunities.
But if technology failed, it will entail severe financial predicaments.
Very-High
Environment
al Risk
Extreme weather
conditions
AMW‟s factory and plants being centrally located in Kalutara, a region
which experiences frequent floods, may disturb the productivity, or worse,
cause physical damage to employees and machinery.
Very-High
3.3.2 Critical Analysis and Assessment of Risks at AMW
Risk analysis at AMW will enable the assessment of the probability and magnitude of loss each identified risk item
(Boehm, 1991).
3.3.2.1 Analysis and Assessment
It is evident that an array of elements, both within and outside the control of AMW, with varying extents of impact, has
exposed AMW to risks, thereby developing the company‟s need to take proactive measures towards reducing the potential
adverse effect.
-Competitive malpractices
(undercutting etc)
-Social risks associted with
newly rich
-Pressure group influences
- Relentless innovation in global
automotive industry
- Falling share prices
- Market risks of liquidity
- Environmental damage for
products in transit
- Products liability risk
-Natural Disasters - Floods in
factory area
-AMW Executive kidnapping
-Human rights violation related
implications from global
NGO's.
-Machinery Failures &
employee accidents
- Factory employee union
action
- Product default risk
- Bureaucracy preventing
agility
-Leadership stifling creativity
Wide Impact
Local
ControllableUncontrollable
Table 3.2
Illustrator 3.1

34
Assessing risks at AMW
The risk assessment of AMW further categorized risk based on probability of the occurrence of risk along with the
severity of the consequence it may portray on the company (A15, Appendix 2). It was further able to identify the time-
perspective of such risks. (A17, Appendix 2). In such context, the following figure demonstrates the preliminary action
AMW should exercise.
3.3.2.2 Developing Criteria to evaluate risks with high propensity
With regards to the risks identified in task 3.3.1 and the evidence derived through it; demonstrating the severity of
external environmental changes, the contingency planning for such damage limitations should be targeted towards
eventually enhancing AMW‟s responsiveness to these changes.
As a preliminary step, it is imperative to evaluate the impact of risks generated through external environmental change.
External
Environmental Risk
Criteria for Evaluation
Political: Change in
Power
 The probability of change in ruling political party
 The % change of import taxes and VAT
 The effect on lobbying power for competitors and AMW
 Change that should be made in plans developed by AMW in accordance to the 2014/15 government budget.
Social: Newly rich
consumer segment
 % increase in newly-rich consumer segment
 % growth in spending on different automotive categories
 Implications on developing CLTV of AMW‟s customer base
 Rate of adoption of innovation in automotive
Technological:
Innovations in
automotive
 Feasibility of adopting innovation in Sri Lanka
 Cost of adoption
 Level of internal adaptability of AMW to innovation
 Training needed for sales and technical staff
Environmental:
Extreme-weather
conditions
 % of rain fall expected in Kalutara region
 Level of precautionary measures to reduce possibility of floods
 Potential damage for raw materials, in transport and storage, due to weather.
3.3.3 Managing and Mitigating Risks of AMW through Internal-Marketing
This paper recommends the risk-reduction & transferring strategies for risk-mitigation at AMW.
3.3.3.1 Risk Reduction through Internal Marketing
The internal marketing plan discussed in Task 2 discusses the executing change within AMW to improve its overall
flexibility.
Damage
Limitation Contingency Monitor
Contingency Contingency Contingency
Monitor Monitor Ignore
SeverityofConsequence
LowMediumHigh
Probability of Occurrence
High Medium Low
Action Description
Damage
Limitation
Executing measures for limiting financial
damage, productivity hindrance & health and
safety protection from the occurrence.
Contingency
Developing pre-defined action plans to be
executed if an identified risk occurs.
Monitor
Invigilate the probable risk, to identify its
movement towards, or away from AMW
Ignore
Due to low probability of occurrence,
disregard allocating time & resources for its
prevention
Table 3.3
Table 3.4

35
By having higher responsiveness to changes in the dynamic external environment, AMW will be able to reduce
risks that may have otherwise arisen, and their implications to the company. However it should be noted that the
implementation of change through IM plan (Task 2.1.5) will generate several risks.
Even though the implementation change through internal marketing carries such risks, the level of flexibility improvement
of AMW will potentially overcome the drawbacks (risks). This is because the level of risk AMW is exposed to will be
much higher, if these flexibility limitations are left unaddressed, which means that risk of not changing outweighs the
risks of changing.
3.3.4 Risk Reporting and Policy
When reporting on organizational risk, it should be designed for appropriate levels, i.e. strategic, operational and tactical
levels. Accordingly, in order to increase the effectiveness of risk managing within AMW, it would be beneficial to
develop a risk management policy which establishes responsibilities and accountabilities that is aimed at employees
within all three levels.
0
2
4
6
8
10
Cost of
implementation
Training for new
adjustment
Impact on short-term
productivity
Emergent strategic
approach
Learning development
Period of shut down
due to lay out changes
Complexities in flat
structure
loss of autonomy with
wide-span of control
Risk
Illustrator 3.2 Risks of proposed change
0
2
4
6
8
10
Flexibility in
operations
Commercial fleixbility
Adaptability of new
innovation
Level of learning
supporting innovation
Training and
development
Competitor
intelligence
Employee creativity
and empowerment
Efficient use of
organizational
knowledge
Before IM
After IM
Addressing risks through Internal MarketingIllustrator 3.3

36
Level Responsible Personnel Responsibilities and Accountabilities
Strategic
Board of Directors
-Create a flat structure to facilitate AMW‟s flexibility
-Allocate resources for risk management
Senior Managers
-Efficiently delegate allocated resources for risk-management
-Evaluate line managers‟ risk reports and discuss with directors.
Operational Line Managers
-Maintain a report on risks pertaining to the division
-Establish assistant-managers‟, executive & junior executive level employees‟ KPI‟s in
parallel to AMW‟s risk management policy
Tactical
Assistant
managers/Executives and
Junior Executives
-Assess risks at their level and report to line managers
-Be aware of risks and carry out tasks in such a manner to reduce risks
3.3.5 Why should AMW invest in risk management?
As discussed earlier, it is apparent that the risks of not changing outweigh the risks of changing. The feasibility of risk
management is further demonstrated through the improvements of various aspects within AMW, which will in turn reduce
the exposure of the company to such risks.
Aspect Risk creating element Recommendation for reducing
exposure to Risk
Expected Objectives
Employee
Attitude
Negative attitude across
multiple elements
(appendix 3)
Reduce risk through internal-marketing:
- Higher learning and development
- Better communication
- Creativity enhancement
- Higher recognition
-Higher employee satisfaction
-Better risk reporting
-Better risk avoidance
Organizational
Leadership
Transaction leadership
Reduce risk by developing ideal leadership
style (Task 2.2.2)
- Leadership Training
- EQ development
-Developing transformational leaders
-Higher risk analysis and prevention on
responsible areas
Financial
allocations
AMW expansion phase
Reduce risk by;
- Efficient feasibility studies
- Scenario planning on investments
- Hedging of investments
-Maintenance of financial stability and
liquidity
-Managing shareholder equity along
with investments
Factory
Premises
Possible malfunctions in
machinery & equipment
Reduce risk by educating employees on,
- Safety precautions
- How to act in emergencies
- How to prevent accidents
-Maintain health and safety of
employees
-Prevent expensive litigations
Extreme weather
conditions
Transfer risk through insurance
-Reduce liability for AMW on
uncontrollable elements
Macro/Meso
Environment
Dynamic changes in
-consumer preferrences,
-technology,
-social trends, &
-competition
Reduce risk by increasing responsiveness
through,
-Flatter structure
-Reduced bureaucracy
Heightened operational & commercial
flexibility
-Overall effective implementation of change.
-Competitor intelligence gathering
-Higher adaptability to environment
-Prevention of reaching organizational
flux
-Higher sustainability derived through
innovation
-Retention of competitive advantage
through effective responses to
competitor-actions.
3.4 SUMMARY
This paper discusses the importance of recognizing and acting upon risk as a management priority of AMW, to mitigate
negative consequences which may arise from it. Such risk management is assessed against numerous elements in order to
determine the feasibility of adapting risk management within the company. Additionally, the risk of change and IM
discussed in task two are evaluated to determine how recommended changes will result in reducing risk at AMW towards
achieving predetermined objectives.
Table 3.5
Table 3.6

37
REFERENCES
Task 1
 Argyris, C. & Schon, D. (1978). Organizational Learning: A Theory of Action Perspective. Massachusetts:
Addison-Wesley Publishing Co. Cited in: Cartwright, S. (2002) Double-Loop Learning: A Concept and Process for
Leadership Educators. Journal of Leadership Education, Vol1(1), pp68-71.
 Codrin, V. et al (2012) Flexible organization. Global Business and Management Research: An International
Journal, Vol4(3&4), pp277-285.
 Johnson, G. et al (2008) Exploring Corporate Strategy: Text & Cases. 8th Edition. United Kingdom, Prentice Hall.
 Mehrabi, J. et al (2012) Impact of Customer Orientation and Sales Orientation on Sales' Performance in
International Market of Bilehsavar County. International Journal of Business and Science, Vol3(17), pp216-222.
 Moldoveanu, G. and Dobrin, C (2012) Unity of the organizational functions and flexibility. Theoretical and
Empirical Researches in Urban Management, Vol7(3), pp53-61.
 Mone, A. et al (1998) Organizational decline and innovation: a contingency framework. Academy of Management
Review, Vol23, pp115–32.
 Narver, J. and Slater, S. (1990) The effect of a market orientation on business profitability. Journal of Marketing,
V54, pp20–35.
 Ndlela, L. and du Toit, A. (2006) Establishing a knowledge management program for competitive advantage in an
enterprise. International Journal of Information Management, Vol21(2001), pp151-165.
 Parasuraman, V. et al (1994). Reassessment of expectations as a comparison standard in measuring service quality.
Implications For Further Research, V58, pp111-124, Cited in: Mehrabi, J. et al (2012) Impact of Customer
Orientation and Sales Orientation on Sales' Performance in International Market of Bilehsavar County.
International Journal of Business and Science, Vol3(17), pp216-222.
 Porter, M. (1985) The Competitive Advantage: Creating and Sustaining Superior Performance. NY: Free Press.
 Rigie, M. and Harmeyer, K. (2013) SmartStorming: The Game Changing Process for Generating Bigger, Better
Ideas. Indianapolis, Dog Ear.
 Ryde, R. (2007) Thought Leadership: Moving hearts and minds. Hampshire, Palgrave MacMillan.
 Sekhar, S. (2010) Business Policy and Strategic Management. New Delhi, I.K. International.
 Senge, P. (1990) The fifth discipline: The art & practice of the learning organization. New York, Doubleday.
 Thomas, W. et al (2001) The selling orientation– customer orientation (S.O.C.O.) scale: A proposed short form.
Journal of Personal Selling & Sales Management, Vol21(1), pp63-78.

38
Task 2:
 Blake, R., and Mouton, J. (1964). The Managerial Grid. Houston- Texas, Gulf Publishing
 Diasz, L. (2013) Strategic Marketing: Marketing Strategies for Sri Lankan Business Entities. 1st Edition.
Colombo, Softwave Printing.
 Hanafizadeh, P. and Ravasan, A. (2011) A McKinsey 7S Model-Based Framework for ERP Readiness Assessment.
International Journal of Enterprise Information Systems,Vol7(4) pp23-63.
 Hersey, P. and Blanchard, K. (1982) Management of organizational behavior. 4th
Edition. New Jersey, Prentice
Hall.
 Hooley, G. et al (2004) Marketing strategy and competitive positioning. 3rd
Edition. United Kingdom, Prentice Hall.
 Kotler, P., and Armstrong, G. (1991) Principles of Marketing: Instructor‟s Resource Manual. 5th
Edition. New-
Jersey, Prentice-Hall.
 Lewin, K. et al (1939). Patterns of aggressive behavior in experimentally created social climates. Journal of Social
Psychology, Vol10, pp271-301.
 Lewin, K. (1947) Frontiers in group dynamics: concept, method and reality in social science. Cited in: Cartwright,
D. (Ed.), Field Theory in Social Science. London, Social Science Paperbacks
 Meek, H. et al (2008) The official CIM course book: managing marketing performance. 1st
Edition. United
Kingdom, Butterworth-Heinemann.
 Narver, J. and Slater, S. (1990) The effect of a market orientation on business profitability. Journal of Marketing,
V54, pp20–35.
 Wilson, D. et al (1993) Introspecting about reasons can reduce post-choice satisfaction. Personality and Social
Psychology Bulletin, Vol19(3), pp331-339.
Task 3:
 Boehm B. W, (1991) “Software Risk Management: Principles and Practices.” IEEE Software, January 1991, pp.
32-42. Cited in: Stern, R. and Arias, J. (2011) Review of risk management methods. Business Intelligence
Journal, Vol4(1), pp59-78.
 Kaplan, S. and Garrick, J. (1981). On the quantitative definition of risk. Risk Analysis, Vol1(1), pp11-26
 Knight, F. (1921) Risk, uncertainty and profit. Boston, Houghton Mifflin.

Appendices
Appendix 1: AMW Company Background
Appendix 2: Strategic Audit
Appendix 3: Attitude Survey
Appendix 4: 360-degree Leadership Survey

AMW's core business sectors are Tyre Retreading, Automotive sales and after-sales services, Lubricants, Batteries &
Tyres and Financial Services (Leasing, Hire Purchase)
 History: AMW (Pvt) Ltd was established by Sir Cyril De Zoysa in 1949
as „Associated Rubber Industries Ltd‟, where the company primarily
engaged in Tire-Rebuilding and Manufacturing. Over the years AMW
underwent several strategic related diversifications in the automotive
industry, to establish its position as the leader in the industry.
 Current Management: In July 2008, Associated Motorways (Private) Ltd.,
came under the management expertise of Al-Futtaim Engineering (AFE),
a wholly-owned subsidiary of Al-Futtaim group, thereby aligning itself
with the Group Automotive Division's development strategy and the
global strategy.
 Legal Classification: Incorporated as a Private Limited Liability
Company.
ThenNow
AMW Local Distribution
Network
The Automotive sector consists
primarily of B2C marketing through
networks of vehicle showrooms (both
major and minor scale showrooms)
across the island.
*The figure illustrates the major
showroom network distribution of
AMW.
Incorporated as a
pioneer tyre rebuilder
Sole distributor
of NISSAN
Sole agency for
distribution of
„YAMAHA‟
motor
Sole distributor in Sri Lanka
for MARUTI
Sole distributorship
of EICHER
Sole Distributor
- PIAGGIO
Sole distributorship
for BP-CASTROL
Distributor
for
RENAULT
Sole
distributor -
SUZUKI
AL-FUTTAIM
GROUP
Management
AMW Capital
Leasing - 2006
1949
1957
1981
1992
2003 2006
1996
1999
2002
Associated
Autoways (Pvt) Ltd
1993
2005
2.0 Company Milestones
AMWGroup
Associated Autoways (Pvt) Ltd
Associated Property Development Ltd
AMW Capital Leasing PLC
Associated Motor Lanka Co. Ltd
*Associated Motorways (Pvt) Ltd
*Automotive Unit
Commercial Sales Unit
*SUV‟s, Passenger/Small Cars, Three & Two wheelers
Lubricants, Batteries, Tires & Car care products
Marathon Dag Tire Manufacture/ Cold Processed Tires/ Rebuilt Tires
Land Development, Construction
Leasing, Higher Purchase, Auto Loan, Fixed Deposit, Islamic
Finance
Automall
-SBU PORTFOLIO- -PRODUCT/BRAND PORTFOLIO-
3. SBU & Product Portfolio
-Company Background-
ASSOCIATED MOTORWAYS (PVT) LIMITED
Associated Motorways (Private) Limited is the leader in the motor industry in Sri Lanka, representing established international
brands and offering a diverse range of automotive services. With 65 years of experience in the transport industry and operating
in partnership with UAE-based global conglomerate, the Al-Futtaim Group, AMW (Pvt) Ltd is the leading multinational
automotive Group in Sri Lanka.

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