Introduction
Business challenge
Over the past few years, there has been a great development of business in the nation of Hong Kong. Being an integral part of the well developed China, the country has undertaken innovation and creativity as two major fundamentals of the administrative world. It is noted that along with a tremendous growth of population, the country has witnessed a development of competition across its commercial sector. According to Wang
et al.(2016), in order to secure a leading position in the market and also be able to earn an increased amount of income, organisations noticeably concentrate on integrating innovation and creativity in its
operations. However, integration of creativity and innovation is a challenge.
Criticality of innovation
Despite being located in the heart of Asia, companies and the business sector as a whole are faced with several challenges. Being spread over 1500 sq km and having access to several trade oriented countries all across the world, firms tend to be affected by certain legal, economical, and social factors. In addition to property registering, taxation, credit creation, investor protection, electricity supply and contract-enforcing issues, enterprises are affected by geographical trade barriers and
cultural prospects as well. As opined by Goffin and Mitchell (2005), it is the technological and operative innovation elements that help a firm to continue and expand its business in the presence of various business challenges. Moreover, creativity in an organisation plays a major role in motivating and retaining employees in an association. Apart from production and delivery of goods, innovation has significantly restructured marketing, promotions and operations management all across the business industry of Hong Kong (Tsui
et al. 2014).
Objectives of the assignment
This particular project takes into consideration a leading airlines organisation of Hong Kong namely, Cathay Pacific. In addition to understanding the existence of innovation and creativity through its various processes, techniques and business mission, the report tends to focus on the stakeholder of the company as well. Further, several barriers to the innovative and creative measures are highlighted as well. Lastly, with an analysis of the challenges faced by the management in implementing changes, the project seeks to build up a
developmental and communication plan for successfully implying innovation and creativity in the organisation.
Company background
As stated by Al-Azri, Waleed and George (2015), Cathay Pacific (C.P) is one of most extraordinary and successfully running airlines of the Hong Kong. Being established in the year days of 24th September 1946, the organisation has come along a long way and now is recognised as the flag carrier of the nation. With over a fleet of 150 aeroplanes, the company provides its services to more than 130 destinations all around the world. Moreover, the 33,800 highly skilled and trained employees have served more than 27 million passengers. Among the other aircraft, Airbus A330, A350 and Boeing 777 tend to contribute the most (Yang 2014). It is noted that along with providing air travel services to the people, Cathay Pacific also plays a major role in carrying tonnes of cargo in its aeroplanes. Like any other airways, the organisation also tends to differentiate among its travel classes (first class, business class, premium economy and economy class). Additionally, the ground handling services along with catering and in-flight entertainment act as major contributors towards the firm`s development.
Figure 2: Growth of Cathay Pacific (Gordon Growth Model)
One of the factors that lead Cathay Pacific to be among the noble and well-reputed airlines not only across Hong Kong but also across the globe is the firm`s well-defined processes and techniques. Being a leader in its industry, the firm greatly depends and tends to constantly develop its various operations. As per Lin (2015), the management of the firm focuses on activities ranging from procurement of raw supplies, flight administration, on air services to gaining final feedbacks from customers. On the other hand, with an increase of rivalry among the nation, the company concentrates on building up new strategies and integrate them in the best possible manner. Internal and external problems are also solved tactfully with the help of the airline`s practically designed value chain. Additionally, processes and techniques in Cathay Pacific are mainly divided into primary (inbound, operations, outbound, marketing, service) and support (procurement, technology, human resource, infrastructure) operational activities. Concerning the primary section, the administration ensures a proper creation and delivery of product and services to its consumers.
On the other hand, support functions help the firm to develop process effectiveness and technical efficiency. According to Rajagopalan (2016), with a motive to provide with a safe and secure travel, the organisation sells the experience to its customers. Processes such as developing a positive behaviour towards passengers, employment of experienced workers, adequate training of employees and timely delivery of services in Cathay Pacific play a crucial part in enhancing innovation among the enterprise. While techniques like improvement mechanisms, adapting measures, technological developments and HR management support creativity in the firm. In order to enhance operations, the administration constantly undergoes external and internal analysis to understand modernization and imply them in the most productive manner. It is noted that processes and techniques in the airlines not only supports business but also acts as a backbone to innovation and creativity development (Sarmento 2011).
Figure 3: Process and Techniques of Cathay Pacific
In the modern times, Cathay Pacific is noticeably faced with tough completion and various other business challenges. Despite well-defined processes and techniques, the firm focuses on adding value and developing competitive advantage factors by integrating new innovation and creativity in its operations. Furthermore, the management tends to construct SMART targets to ensure a proper integration of modernization in the organisation (Sharma and Thomas 2015). One of the innovations that shall greatly benefit the airline firm is the creation of Skycouch and Space seats in aircraft. Concerning the Skycouch, engineers can build it up by connecting three economy seats into a one line horizontal area just with the removal of the armrest. Also, the large area might have big shaped flip-up pillows as well. A Skycouch shall be 156cm in length and 76 cm in a breath. More importantly, seatbelt extenders are a must with this innovation. While Spaceseats, will not only provide a swift journey to single travellers with a window seat but also ensure that couples can dine together in the comfortably angled seats. Secondly, catering and
technological innovations shall noticeably lift up customer attraction and thereby profitability margins. The idea of including induction ovens for serving hot food products, one-touch order systems and screen share in aircraft are a kind of its own. With an inclusion of the IFE eX2 mechanisms, passengers will be able to share their screen with any passenger on the aeroplane. On the other hand, creative marketing plans with the help of social and digital media can also be taken into consideration by the management of Cathay Pacific. It is noted that collaborating with social websites (Youtube, Twitter, Facebook), granting a wish of a subscriber on the social channels which will be named ‘Cathay Fairy’, providing free air travel tickets on winning competitions and a focus on sustainability measures shall add up to the promotional activities of the organization (Kiron 2015).
Figure 4: Innovation in Cathay Pacific
As stated by Ahmed and Shepherd (2010), innovation and creativity being two separate individuals tend to largely depend on the vision and mission of an organisation. It is noted that Cathay Pacific visions to be the most successful and finest airlines across the globe. In order to be the best organisation, the management also objects to endeavour to excel in all its initiatives and operations. Additionally, it is with the help of the workforce and their high-quality activities that the people shall choose Cathay Pacific as their preferable company over its rivals. On the other hand, the mission statement of the organisation is well designed to ensure passenger safety, build a winning employee team, deliver extraordinary services, enhance financial gains and further provide a hearty administration to the
customers (SUTCH 2016). Additionally, supporting Hong Kong and guaranteeing social and ecological sustainability also forms part of the airline`s mission.With a motive to increase revenue margins and gain success, the administration of the firm also largely focuses on the welfare of its stakeholders, thereby hoping to meet their needs through regular modernization processes. Strive of creativity ensures excel of an innovation in the airlines. Based on the vision and mission of the enterprise it is inferred that the management of Cathay Pacific extensively takes into consideration innovation and creative management for the development of the company.
Figure 5: Creativity Process in Cathay Pacific
Like every other business firm, Cathay Pacific majorly depends on its stakeholder groups for its development. Further, it is noted that the various divided parts of the organisation`s stakeholders also impacts innovation and creativity management. As stated by Verbeke and Tung (2013), being different from shareholders, the management of the firm makes sincere efforts to analyse its various stakeholders as well. A stakeholder is a person or a gathering of the populace who are directly or indirectly related to a business enterprise. In the case of organisation stakeholders, they tend to take a deep interest and also often participate in the operations and performance of an association as they are affected by it. It is often that the administration of the aviation firm focuses on its stakeholders to integrate a change in a productive manner. Further, the management also tends to control and supervise its stakeholders to ensure that the company benefits them, meets their demands and further does not hurt their perceptions. The four major stakeholder group of Cathay Pacific are customers, employees, suppliers and society (Doh and Quigley 2014).
Figure 6: Stakeholder Groups of Cathay Pacific
Among the various ideas of innovation and creativity, the redesigning of promotional activities tends to be the most economical and profitable in nature. It is noted that the management has made efforts to collaborate with social networking websites for promoting Cathay Pacific. As compared to the already present advertising initiatives, the creation of ‘Cathay Fairy’, distribution of free tickets through online competitions on Twitter, playing Youtube`s specialised channels in flights and building up cooperation with the public over Facebook shall be more profitable. Moreover, the use of
environmentally friendly materials during production of goods and services will also benefit the firm. In addition to taking steps towards forming an alliance with social and digital media brands, working towards societal welfare shall also add value to the airline`s concept of promotion.
According to Cameron and Green (2015), it is noted that with a change management in the organisation, customers, employees, society and suppliers will directly be affected. Apart from the other groups, customers tend to be the most important part of a company`s growth. It is noted that a change in the aviation firm will directly impact its consumers. Being the most important stakeholder group, innovation in Cathay Pacific shall impact buying decisions and behaviour of its customers. It is noted that a change of price structures also may directly affect both attraction and retention of clients. On the other hand, a demand for innovation and change in the company will lead to a scope of opportunity for its suppliers. The need for raw materials and eco-friendly goods for production will rise up supplier contracts. Further, credit terms and cash flow with the vendors will also be affected as well. In a case of a society, the newly designed promotional techniques shall lead to building up of social value for the company in Hong Kong and also across its various other performing countries (Frankland
et al. 2013). The idea of ‘Cathay Fairy’ and bonding with
social networking sites will greatly impact the firm`s relationship with the community. Concerning employees, a change in the promotional activities of the organisation will directly impact their pay scale and job security. It is this particular period of time when the management tends to greatly depend on the workforce for the productive implication and utilisation of the various creativities. An improper delivery by the workers directly pressurises their job security. Further, an integration of innovation is followed by training and development processes of the employees.
Figure 7: Stakeholder Management
Along with affecting stakeholders, change management in Cathay Pacific implies several risks and benefits towards the company. It is noted that a restructuring of the promotional activity involves financial risks. The idea of proving free ticket to contest winners on Twitter and fulfilling wishes of a subscriber on Youtube tends to be costly in nature. Additionally, collaborating with social and digital brands for advertisement seems to
increase commercial risks as well. Despite various measures the company might be faced with a situation of lowered customer attraction and their retaining. Moreover, as per Hayes (2014), a failure to meet the price, scheduling and quality requisites of the firm will not only damage the innovation but also affect operational management. Operational risks also tend to be a crucial challenge brought forward by the changes. On the contrary, the innovation and creativity bring forward developmental measures for the enterprise as well. In addition to added value, the creativity tends to handle environmental issues, social obligations and build up competitive advantage factors. With a proper utilisation of the available sources and creation of reputation among the stakeholder groups, Cathay Pacific shall be able to earn an increased amount of revenue along with expanding its business worldwide in a long run.
Figure 8: Barriers to Change Management
(Source: Smuts, Lalitha and Khan 2017)
Task 3
It is noted that change in Cathay Pacific is opposed by certain factors that only affects its productivity levels but also its integration into the organisational structure. The lack of resources acts as one such major element that does not let innovation take place in the firm. A short of requirement often relates to the HR department and marketing capabilities. In the case of a degraded employee engagement and inefficiency of the marketing administrators, implementation of change suffers (Booth 2015). Additionally, the ineffective communication strategy is also regarded as the most common barrier to change that is faced by the firm. In addition to the complexity of the organisation, the behaviour and cultural shift of the workforce also adds up as oppositions to change.
Furthermore, facilitation of a modification is also faced with problems due to the management`s lack of knowledge about the present state of the airlines. It is noted that the management also builds up a plan to remove barriers to change in the organisation as well.
| Barriers to Change | Change Models | SMART Principles | Timeline | Person in Charge |
| Lack of Workforce Engagement | ADKAR Model | 1. Enhance Worker Involvement
2. Spread Change Awareness
3. Portray Change Potentiality
4. Provide 6 Months Training
5. Involve Employees in Business Decision Making Process
| 6 Months to 12 Months of the Current Year | Tom Owen and his team of 15 human resource managers |
| Poor Communication Strategy and Management | McKinsey 7S Framework | 1. Build up Communication Lines Across Departments
2. Focus on Strategy Redefining
3. Open up Feedback from Employees
4. Develop Two Way Communication
5. Design New Strategies With Employee Perceptions
6. Spread Change Management Awareness
| 6 Months to 12 Months of the Current Year | Paul Logo will work in collaboration with Arnold Chegg and his team of 20 departmental managers |
| Unknown Company Present State | Kotter`s Change Model | 1. Analyse Organization’s Operation
2. Study Financial Reports
3. Check Flight Plan Flows
4. Evaluate Passenger Travel Contributions
5. Focus on Social Reputation of the Firm
6. Understand Organizational Blueprint
7. Locate Pitfalls
8. Undertake Change in an Effective Manner
| 3 Months to 8 Months of the Current Year | John Slosar, Rupert Hogg and Algeron Yau will work with 2 representatives from each department of the organisation along with a team of 10 employees from every other subdivision |
| Organization Complexity | Lewin`s Change Theory | 1. Understand Operational Flow
2. Analyse Company Objectives and Goals
3. Evaluate Current Structural Condition
4. Locate Pitfalls
5. Find Out Unnecessary Complications in the Organization
6. Locate Unproductive Areas
7. Breakdown Present Arrangement
8. Redesign Structure and Operational Flow of Company
9. Check Change Management Compatibility With the Newly Designed Structure’
10. Undergo Periodical Evaluation
| 12 Months to 1 Year From the Year of Starting | John Slosar and Rupert Hogg will work with James Ginns and his team of 20 work members |
| Cultural and Perception Shift of Employees | ADKAR Model | 1. Analyse Employee Involvement
2. Check Current State of the Organization
3. Spread Change Awareness
4. Build up Positivity
5. Enhance Leadership Skills
6. Ensure Proper and Productive Guidance to the Workforce
7. Welcome Employee Complaints
8. Portray Change Potentiality
9. Provide 6 to 12 Months Training and Development
10. Involve Employees in Business Decision Making Process
| 6 Months to 12 Months of the Current Year | Algeron Yau will work with Tom Owen and his team of 15 human resource managers
|
Table 1: Change Barrier Overcoming Plan
According to Schoemaker and Krupp (2015), it is noted that Cathay Pacific being faced with several resistance to change tend to develop plans and strategies not only to mitigate them but also to ensure that the innovation turns out to be highly productive. In order to secure a fruitful change in the organisation, the management tends to undertake planning, controlling, coordinating and
collaboration functions as well. In addition to building up plans, the managers opt to provide stakeholders with necessary information about the promotional modification. With a rise of positive response by the different groups, the implication of change becomes a comparatively easy task. Further, the workforce also needs to
understand the end goal of the company and the benefits they gain from it to work in an effective manner towards building up efficiency levels. It with a rise of competence in the company, that the enterprise can have a multi-dimensional approach towards the various social websites. Additionally, clear and transparent communication is also equivalently crucial for the change to be profitable implied (Töytäri
et al.2017). It is noted that the development of a two-way channel enhances the flow of idea and feedback from the employees. Consequently, there is an increase of cooperation levels among the various levels of the management as well. With an opportunity to work as the team, there is a reduction of change barriers. Being a diversified organisation, employees tend to have different perception, cultural and social background. It is with a proper understanding of the need of change which unites them. A unified team is a stronger and highly capable workforce that significantly builds up the effectiveness of operations in the airlines.
Figure 8: Overcoming Change Barriers
Moreover, with an identification of key players, the management tends to delegate responsibilities to them, thereby building up a sense of responsibility and authority. As compared to any other method, holding an employee accountable for the performance of the company seems to add up the capability to undertake change management. Apart from the above-mentioned ways, providing training, enhancing education, increasing operational participation, supplying support, and positively negotiating with the workforce also significantly helps to facilitate modifications and disregard hurdles to organisational change. Based on the above plan to mitigate and overpower obstruction to change management, it can be inferred that with adequate cooperation, awareness, restructuring and redesigning of the existing promotional techniques change can be of great help (Cameron and Green 2015). Additionally, various models such as Lewin`s Change Theory, ADKAR Model, Kotter`s Change Model andMcKinsey 7S Framework will also significantly benefit the firm`s change management. It is noted that along with a provided time for every SMART objective, a person is held responsible for overcoming the barriers. Being a part of the top level management John Slosar (Chairman), Rupert Hogg (CEO) and Algeron Yau (Executive Director) shall work in collaboration with Paul Loo (Director, IT), Tom Owen (Director, HR) and Arnold Chegg (Director, Corporate Affairs) to ensure that change is implied in the most productive manner (Cathaypacific.com. 2017).
Analysing the various barriers and evaluating the several methods to overpower them, the plan will ensure that innovation and creativity in promotional activities is a success. As per, Lewin`s change model unfreezing, modifying and refreezing tends to be a most capable manner of integrating promotional change. As stated by Frankland et al. (2013), it is with the ADKAR change model, the supervisors are able to analyse causes to resistance and further develop new methods for its implication. It is noted that McKinsey 7S framework shall noticeably help to manage barriers in an effective manner. Additionally, the senior manager can also implement Kotter`s theory to effectively help the middle and lower management levels to deal with promotional change oppositions in the organisation.
Furthermore, in order to benefit the stakeholder and also maintain stakeholder expectations, the administration of Cathay Pacific focuses on building up a communication plan as well.
| Communications Objectives: The various objectives of the stakeholder communication plan are as follows:
1. To Build Up Organizational Reputation
2. To Collaborate with Social Websites (Youtube, Facebook, Twitter)
3. To Develop Social and Environmental Image
4. To Increase Stakeholder Interaction and Engagement
5. To Expand Global Existence of Cathay Pacific
|
| Communication Messages: The several communication messages of the stakeholder communication plan are as follows:
1. To Participate in ‘Cathay Fairy’ Contests
2. To Participate in Online Contests
3. To Full Advertisements on Youtube Videos
4. To Subscribe on Facebook Pages
5. To List Feedbacks and Complaints on Personal Mails
6. To Tag the Airlines of Public Photos of Travelling (@cathaypacific)
7. To Provide Developmental Ideas (@ideablodCP) on Twitter
|
| Expectations | Priority | Specified Key Messages | Communication Tactics | Person In Charge | Budget | Evaluation |
| Stakeholder Group: Customers | 1. Value for money
2. High-quality products
3. Invite feedback
4. Improved attracting facilities
Current Satisfaction Rate: 7
| 1 | 1. Join Facebook pages
2. Subscribe to mailing initiatives
3. Follow on Twitter
4. Subscribe to Youtube channel
5. Invite customers for competitions
| 1. Emails
2. Newsletters
3. Personal calls
4. Posters
5. Voice Mails
6. Video Messages
7. Digital messaging
8. Social website contacts
| Dane Cheng | $45000 per month | 1. Periodical Checks
2. Analysis of Online Polls
|
| Stakeholder Group: Employees | 1. High job satisfaction
2. Job security
3. Friendly relationship with colleagues
4. Safe work environment
5. Reward systems
6. Motivation by superiors
7. Education
8. Training and Development
9. Business decision involvement
10. Clear communication
Current Satisfaction Rate: 8
| 1 | 1. Work effectively
2. Build up teamwork
3. Provide necessary training and development
4. Provide education on innovation
5. Spread change awareness
6. Build up leadership and motivation
7. Open two-way communication
8. Accept feedbacks and complaints
9. Engage employees in decision making
10. Ensure friendly flow of information and clear understandingof orders | 1. Emails
2. Newsletters
3. Conference calls
4. Board meetings
5. Posters
6. Voice Mails
7. Meetings
8. Announcements
9. Informal transfer of message
10. Notices
11. Corporate Events
| Paul Logo and Tom Owen | $45000 per month | 1. Feedback forms
2. Performance levels
3. Change adaptability
4. Operational flow analysis
|
| Stakeholder Group: Suppliers | 1. Compliance of Cathay Pacific
2. Loyalty
3. High financial returns
4. Decrease of competitiveness
5. Medium bargaining power
6. Innovation
7. Timely payments
8. Ensure proper lead times
9. Relationship personalization
10. Exchange of data of information
Current Satisfaction Rate: 7
| 2 | 1. Remain loyal towards suppliers
2. Exercise a medium bargaining power
3. Exchange information over social and digital media
4. Transfer payments on time over net-banking and money transfer applications
5. Gather information from suppliers
6. Enhance personal touch
7. Cooperate in production process
| 1. Emails
2. Newsletters
3. Conference calls
4. Board meetings
5. Corporate events
6. Notices
7. Personal calls
8. Messaging
9. Digital messaging
10. Social website contact
| Martin Murray and James Ginn | $40000 per month | 1. Discussions
2. Feedback forms
3. Information exchange tools
4. Online meeting evaluation
5. Message replies
6. Analysis of conferences and meetings
|
| Stakeholder Group: Society | 1. Communal welfare
2. Ecological sustainability
3. Innovation and Creative measures
4. Fun promotions
5. Society engagement
Current Satisfaction Rate: 8
| 3 | 1. Take part in charities
2. Organise society development programs
3. Use eco-friendly production and distribution processes and techniques
4. Provide donations
5. Focus on public preferences
6. Look up to build societal welfare and friendly relationships
| 1. Social website interactions
2. Digital messaging
3. Public calls
4. Billboards
5. Emails
6. Newsletters
7. Advertisements on Youtube
| Anna Thompson, Arnold Chegg, Martin Murray, Dane Cheng and Rupert Hogg | $50,000 per month | 1. Online polls
2. Social website reviews
3. Comments on social website pages
4. Market research and analysis
5. Feedback of charities
|
Table2: Stakeholder Communication Plan
Conclusion
Analysing the several aspects of the project it can be inferred that there lies a large scope of innovation and creativity in Cathay Pacific. Like every other business firm, the airline’s company is also faced with various business challenges that tend to affect operations, revenue generation and global expansion. Further, being confronted with high rivalry and increased worldwide competition from various aviation firms, the management of the Hong Kong`s flag carrier tend to prioritise innovation and creativity. It is noted that the modernization of processes and techniques along with enhancing operational flow tends to greatly add up competitive factor that ultimately results in an increase of profitability. From being established in 1946, Cathay Pacific has come a long way to be one of the world`s most successful and advanced airlines company. Concerning, innovation and creativity the interrelated primary and support activities of the company play a major part. With SMART targets, the management tends to consider redesigning and restructuring of promotional activities as one of the changes that shall significantly contribute towards the development of the airlines.
On the hand, it is also understood that a change management in the organisation along with impacting stakeholders tends to bring with it several risks as well. Additionally, there also exist various barriers to facilitating modifications in the organisational structure as well. It is noted that guiding employees, rebuilding competencies, creating objectives, spreading awareness and many other similar measures greatly help to remove resistance to change. Further, based on the plan to remove change barriers it can be understood that several models such as Lewin`s Change Theory, ADKAR Model, Kotter`s Change Model andMcKinsey 7S Framework can also be implied to implement change in the most productive manner. On the contrary, it is inferred that a communication strategy also greatly helps to build up relationships with the stakeholders, fulfil their expectations and further implement innovation and creativity in the best possible manner. It is concluded that with proper control, coordination and cooperation, Cathay Pacific will successfully be able to implement change management.
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