Q#2. (CLO 2)

Please read the GNER Case Study (attached) and answer the following questions given in the end of case study:

GNER was a train operating company and part of Sea Containers Ltd, an entrepreneurial Bermuda-registered company with regional operating offices in London, Genoa, New York, Rio de Janeiro, Singapore and Sydney. GNER started business in 1996 when it won a seven- (later extended to nine-) year franchise to operate the InterCity East Coast routes from London to all major cities on the eastern side of the UK. From 2005, the franchise for the following 10 years was to be awarded on the basis of open competition. For GNER, it was a win or die situation. The only way it could retain its business was to submit the winning bid. If it was unsuccessful, all the companys assets would be transferred to a new operator. The companys response was to establish a new development team, headed by a director of development, charged with preparing the companys bid for the East Coast franchise. The bid was successful and GNER won the franchise up until 2015. The company decided to build on this experience and grow its business through bidding for other railway franchises as and when opportunities presented themselves. Its first venture was to join forces with the MTR Corporation, which runs the highly successful mass transit railway in Hong Kong, to bid for the Integrated Kent Franchise that includes the commuter rail services between southeast England and London and the new high-speed line from London to the Channel Tunnel. This first bid for new business was unsuccessful as was a second for the South Western franchise.

The change strategy GNERs change strategy was to develop the existing East Coast railway and generate additional revenue through the provision of enhanced services. Plans included rebuilding all the electric fleet carriages, introducing, what was at the time, an innovative on-board wireless internet service on all trains and increasing the number of daily intercity services to London from 53 to 80. Alongside this development of the InterCity East Coast business, the company planned to grow by acquiring more franchises in the UK. It was anticipated that these would include different types of railway (intercity, regional and commuter), each with different risk patterns, and a portfolio of franchises with different expiry dates that would help to provide the company with greater stability.

Questions:

1. Would you describe the main type of change as incremental or transformational? Justify your answer?
2. In terms of the organizations typical response to change, think back and consider how the organization responded to change over the past few years. How does this compare with the organizations current way of responding to change? (Trigger for change and response towards change)?
3. Is the organizations typical response to change reactive or proactive? Which one? Justify your answer?