Key reasons for change program initiated by CTC

Essay add: 28-10-2015, 20:46   /   Views: 206

Tobacco has been, and will be, a controversial business. Few industries today, if any, face the kind of external pressure and internal challenges faced by tobacco companies. In many countries including Sri Lanka, cigarette sales have been sliding steadily for years, amid rising health fears, stringent regulation and increasingly punitive taxation.

Ceylon Tobacco Company ltd (CTC) is no exception. Although it remains as one of the most profitable businesses in Sri Lanka, the year on year decline in volume has led to excess cost, complexity and staff in the company's supply chain. In order to remain competitive against the option of importing finished goods from neighboring countries, and to sustain the manufacturing facility in Sri Lanka, CTC must make a quantum leap in its supply chain process, particularly in manufacturing. To this end, CTC is embarking on a major change program in 2010 to change its current manufacturing model, which will result in the introduction of new work patterns as well as a downsizing exercise.

Proper implementation of this change would result in substantial savings in terms of manufacturing cost, as well as increase the current productivity levels at CTC. In addition, the project group believes that the change needs to be well managed to ensure a smooth transition, as it will happen in a highly unionized environment, which is currently governed by a Collective Agreement. Any mismanagement could result in industrial conflict, lost revenue, intensified illicit competition in the market and dissatisfied customers.

Our scope of this report is to identify the key focus areas and to set up a framework to manage the change process in implementing the new manufacturing model. As organization culture plays an important role in change management, CTC's culture was examined for its successes and setbacks , and brainstormed on possible issues that might emerge. The report also includes literature reviews from many sources including study packs and other relevant articles, which are use to setup the said frameworks to identify possible pitfalls and ensure that the change process is managed properly.


Executive Summery

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