Hilbro International Surgical Industry: The Impact of Change
Visiting the Hilbro International Surgical Industry: The Impacts of Change
Zareena Gohar Shaheed Zulfikar Ali Bhutto Institute of Science and Technology
2 Hilbro International Surgical Industry: The Impact of Change
Abstract The study examines the Hilbro surgical industry which is serving in the Pakistani market since long now this industry is facing a lot of problems, as foreign competition now also entered in the Pakistan market, Hilbro need the change in their industry, Dilemmas inside the industry are encountered the expansion of the most suitable markets were analyzed the change process first start within the organization for that purpose the research therefore explore the internal dilemmas of the industry which let the setup for the industry to increase sales and then to generate revenues, expansion towards the Europe is suggested after doing the analysis of those suitable and potential markets. The removal of the liaison and reach the purchasers directly are recommended for the expansion.
3 Hilbro International Surgical Industry: The Impact of Change TABLE OF CONTENTS ABSTRACT.... 4
CHAPTERS 6 i. INTRODUCTION.. Problem statement... Research Objectives. Significance of the study. Research Questions Background 7 8 8 8 9 9 ii. LITERATURE REVIEW... Case study...
17 28
iii. CASE DESIGN... Sampling... 33 34
iv. Research Method. v. Design and sampling... vi. Demographic Analysis... vii. Reliability..... viii. Validity..... ix. Results...... 34 35 35 36 37 37 x. Solution to challenge. xi. Potential market analysis....... xii. Recommendations........ 40 41 51 xiii. Future Research and Limitation.... 53 xiv. Implications and business plan...... 54 xv. REFERENCES 64 xvi. Appendix-A. 69
LIST OF TABLE i. Table1 ............................................................................................................. 36 ii. Table2 ............................................................................................................. 37 iii. Table3 ............................................................................................................. 38 iv. Table4 ............................................................................................................. 44 v. Table5 ............................................................................................................. 45 vi. Table6 ............................................................................................................. 47 vii. Table7 ............................................................................................................. 48 viii. Table8 ............................................................................................................. 48
4 Hilbro International Surgical Industry: The Impact of Change Introduction Surgical instruments are far more the complicated instruments manufactured by specialized experts in the industry. The production now a days relies mostly on specialized machines rather than the handmade motorized instruments as the skilled force available in Pakistan has a specialized in that skill of hand making of the instruments. Although more than, a decade the blueprint of the surgical gadgets have not misrepresented. Surgical instruments are contributing to the major exports of many countries in Asia and as well as Europe. A large chunk of the exports are targeted towards Germany, it being the major distributor of these instruments in Europe and to the west. As all the way the surgical industry is facing decline there could be many economic reasons in the but the most probable is that many new markets are looking to capture the local market of Pakistan to increase their profits as now the high competition is also involved along with the new dimensions which are evolving in it make the business world more challenging to cope with it, the evolving of the continuous process where industries had to face difficulties in it to run with that change. This process is making the survival of the small and medium industries of the underdeveloped firms in danger. First this case study clearly shows that industry is in the crisis as the exports of industry in Pakistan is decreases and imports are increasing, and the primary goods are affected because of the high inflation, the production cost is high and the demand for the low price product increase which effects the Hilbro as whether to maintain the quality or the price with such a high quality material, the opportunities for the surgical instruments in the other markets have to be identified as the locals demand is not meant for the high quality product for that purpose this case has been generated to explore the most competent market and the problems which the Hilbro is facing 5 Hilbro International Surgical Industry: The Impact of Change internally that will led them towards the change. the admonition of the Hilbro have to understand the changes and implement in their department, the labors of the Hilbro are its major strength as these are in small number in the industry to increase its ability there should have to certain methods followed which are going to be explained in that case. Hilbro Intel is the industry of Pakistan, recognized for developed excellence of its surgical instruments from over a decade now. Its main countries for exports included Germany, USA, UK and many more. The biggest market for Pakistan made surgical instruments is the US and certain states of Europe. Sialkot being one of biggest city to produce surgical gadgets with over 1600 registered companies providing these services locally and globally. Sialkot alone handles 25% production of surgical instruments for the international buyer. Most of the manufacturers from Sialkot have direct dealing with the buyers where as many manufacture for companies in Europe and then they label it for to be distributed. The biggest disadvantage which the SME (Small and Medium Enterprises) face is the recognition of their work. This case study highlights the various factors contributing to the decreasing exports of Hilbro Intl Pvt Ltd over the years even with the introduction of new technology and increase in their product line. Proper recommendations and a comprehensive step-by-step plan are provided on the implementation of new initiative during the change of events. Problem Statement As the conditions of Pakistan is very poor from the past decade as the inflation rate increase the imports of the industrial goods increase with respect to the exports. Hilbro International Pvt Ltd exports which had are at decline stage weather locally or internationally, the reason behind is that the cost of production is very high and the local customers do not want to pay that much amount 6 Hilbro International Surgical Industry: The Impact of Change for the quality. The foremost target for this case is to discover the factors associated with decline in exports of Hilbro Intl and explaining how change can help overcome this deficiency. Research Objectives The objectives behind the case study work are: - To gather data for analysis of Hilbro International surgical industry need for expansion - To collect information about the most suitable markets where Hilbro could expand - To study the Hilbro International surgical industry processes in detail and problems they face - To provide suggestions for the change within the industry to increase the revenues of biasness Significance of the study Case study in the change process of surgical industry is relatively new. This case study is going to give benefit to the new surgical industries entering in the market and also the existing surgical industries of with respect Hilbro international. Hilbro international surgical industry will know the solutions of the problems they were facing and the most suitable markets for them to capture. Hilbro surgical industry will also see the health and economic factors which are in there favor in Europe , if these factors are known to the Hilbro surgical industry this will make them take more confidently decisions. Research Questions The intention ouestion for this case study is to recognize and assess the potential chances and blockades for Hilbro Intel exports which had are at a decline stage: 7 Hilbro International Surgical Industry: The Impact of Change 1. Should the company expand its manufacturing operations internationally/ domestically in order to be more competitive in the market? 2. Will international linkages with international companies be sufficient for better export scenario? 3. Should the manufacturing concern focus more on marketing and R and D in order to increase their exports? Background information of Pakistan Surgical Industry Surgical industry originated from the Sialkot in 1940, this industrial manufacturing wide range of the products relating to the medical, surgical, dental and veterinary. Pakistan has the advantage over the international market is that they have the craftsmen who have the handmade skill from many years of manufacturing surgical instruments. This has from the last few decades that the replacement of the handmade skill to the machinery as with the span of time the customers become quality conscious and made such standards for this. Now products are manufactured with the modern equipment and manufacturing machines and exported to the 140 states of the world. The surgical industry is situated in the form of cluster and from a decade, the industry has transformed from the low level to the high sophisticated level. The skill of manufacturing the surgical instruments started from scissors and currently manufacturing 10000 items. In the beginning this industry got the contract from the Egypt and Afghanistan for the few hundred dollars and now the 95% of the surgical instruments are exported all around the world.The surgical instruments sector, if considered as a sub-sector of the light engineering sector, contributes about 70% to the total exports of this sector. The light engineering sector consists of twenty-eight sub-sectors including consumer durables and other industrial products. 8 Hilbro International Surgical Industry: The Impact of Change The main markets of the surgical industry were in the USA, Japan and Western Europe. The number of workers working in this sector is from the 100000-150000, exports from this sector in 2006 are US $ 160.07 Million, production of the instruments were 100 million Nos., and machinery is imported from the Germany, UK, USA, and China. Total numbers of industries of surgical instruments working are Approx. 1600. The surgical industry is divided into small, medium and large enterprises. The small enterprises number of firms is 150, medium number of surgical industry is 50 and the large surgical industries are 30. So the total numbers of surgical industry in Pakistan are 230 so the competition is very high. The vendor facility provided by the vendor firms they are 2000. The surgical market industry has been categorized into three categories 1) Powered instruments 2) non-powered instruments and 3) wound closure device. The surgical industry follows the strict standards of WHO the quality measures over 300 companies have ISO 9002 certification and about 250 have the Certification of goods manufacturing standards. The exports of the surgical industry shows the day to day decline as in 2005 it is 182.87 and in 2006 it is 160.07 and then to the 2009 its 67.4 which is very less. The exports of the surgical industry are toward the USA, Germany, United Kingdom, Italy, UAE, France, and Japan. The biggest export partner is the USA. The imports of the surgical industry inside the Pakistan is increasing day by day as in 2001 it is 33.23, in 2002 it is 36.37 and in 2009 it is 97.07 which shows that the imports are decreasing within the state and exports of surgical industry is declining to the end. Background of the Hilbro Intl In 1946 the three brother join their hands to form a established their partnership company with the name of Hillerich Brothers for the production and exports of the surgical instrument they 9 Hilbro International Surgical Industry: The Impact of Change manufactured. This company starting manufacturing of the products and exporting its product to India but the first contract was with Turkey in the same year. At the beginning they experience quite success. After two years the same nature of the business id started by the two brothers under the name of surgical corporations. As the demand of their goods increase so they expand their business by increase in their production. The large production facility was implanted in the 1954 that was expanded further. In 1958 the company made its first exports toward the USA, Europe, Canada, UAE, and United Kingdom they handled the big projects by bringing in the business with the foreign clients tale. They made the personal contacts with the buyer and increase their sales quantity. In 1961 both companies Hillerich Brothers and surgical corporations did a joint venture and come up with the name of the Hilbro (Pvt.) Limited, which was later joind by the two more partners. In 1961 the key men of the Hilbro (Pvt.) Limited did a visit to the Middle East, Scandinavia, Europe, U.K., USA and Canada did very impotent meetings with the buyers and purchase the machinery for the surgical instrument making from Germany, UK and USA to mechanize its production facilities. This machinery improved in the sales production of the industry. Due to further increase in the demand the company decided to shift to the larger facility in Small Industrial Estate, Sialkot. Hilbrro Intel they have shifted their traditional facility ro their purpose built facility 12km from the city away so they could expand their industry processes improve their work environment.Their target is to be the leader in the surgical industry for that purpose focus is on the imports of the latest machinery especially from Europe and UAE. 10 Hilbro International Surgical Industry: The Impact of Change Organizational Structure Before 2002 is the top down strategy and bottom up where CEO makes the decision and gives his command to the managers of the organization. Hilbro have departments in the 2002 is finance, HRM, Operation, and Production. They are controlled by the managers and then the supervisor handles the employees of the organizations as before 2002 its just started its factory units and employees to handle at work is important because machine units in process. Where machine operator is handles it. When there is any problem occur in the machine the operator inform its supervisor and then supervisor to its manager and then to the CEO. After 2002 the organization had a change in hierarchy as more family members joined the organization. After 2002 they need to change their hierarchy as the industry processes grow because of their need and the manufacturing capacity. With new family member joining the organizations many new ideas are being floated for example new young people suggest to have a Research and Development department and Marketing department so that there should be good competition. This has led to people exploring new markets in Australia and the Middle East. Hilbro in order to manufacture the latest and quality products imported machinery in the early 2006 from Germany and Japan. The cost of machinery was $10 million. The machinery was used to manufacture disposable items which were exported to USA, Germany, Australia and the Middle East. Another piece of machinery was imported in 2010 to manufacture syringes for the local market. They are still yet to be exported globally.
SWOT Analysis of Hilbro Intel Strength of the Hilbro Ecological focus 11 Hilbro International Surgical Industry: The Impact of Change The Hilbro intel is situated in Sialkot and its focus is also in that particular area, and its border s. the surgical industry grow within that area and the suppliers and distributors are well aware of its concern. Focus of surgical instrument producers and sub freelancers inside the rigorous region is the main strength of that industry, which is the represented by the communal competence of the by and large industry. Cost-cutting measures As the number of instruments are produced in the surgical industry of Pakistan approximately 10 million this gives the surgical industry of the Pakistan to have a competitive advantage over the other markets of states. In surgical industry the manufacture might not benefit from the cost- cutting measures. But the producer will definitely get advantage from it in the market by produce the volume of sales Accessibility of inputs The accessibility of the inputs is the main part of the surgical industry as Hilbro Intel is the manufacturing industry. in addition the large form of the sub-freelancer also includes dealers, importers and agents of input such as stainless steel, chemicals and raw materials. The existence of input dealers assurance the accessibility of the raw materials therefore reduction a set of harass for the producers, which in nonappearance of such dealer have to import the raw material individually. This not only saves the transport cost but also pre operations cost. Skilled labor force The Hilbro had a very skilled labor force working in it, the finishing of the surgical instruments still done by the hand of the professional labor that art they got generation after generation they are serving in that industry. An attention of labor force, having the preferred ability point, is 12 Hilbro International Surgical Industry: The Impact of Change strength of the industry. This is the main cause that the industry has grown-up only in and in the region of Sialkot. Broad extend knowledge Training engineers are available in the industry to cater any kind of the technical problem. These technicians develop their understanding and skills to deal with any technician problem ith in the organization. Attentiveness on the center competencies Owing to the Hilbro Intel standard of sub-constricting to procedure of particularly salespersons, the salespersons take out exact procedures on huge levels of instruments therefore, rising their center capability in one or two procedures. This has facilitated the surgical instrument industrialized to uphold homogenous excellence of instruments to some degree the length of through tightfisted on capital as glowing as labor. Wide product range In spite of inadequate possessions and progress machinery and apparatus, the producers are capable to manufacture a various variety of surgical and dental apparatus. With no make use of stylish design and product expansion methods the surgical instrument gathered the industrial its ability of producing excellence or appliances comprising of more than 10,000 different instruments. Weakness of the Hilbro Least participation of the trade name Purchasers of Hilbro surgical instrument are worldwide dispensers or traders and thats the cause behind the brand participation is very low. Just only some recognized, world-renowned brand names are amongst the purchasers of the industry. operational with brand names not only 13 Hilbro International Surgical Industry: The Impact of Change earnings elevated revenues but the brand names also help the companies in technological up progression, quality and management systems and skill development. Branding A main difficulty among many other one is with Hilbro is branding. The industry has the past of more than six decades and there are still no brand names. The deficiency of local brand names robs the industry of frankly contributing in tender business to provide to the end user in foreign markets and works unfavorably by generous the purchaser better bargaining authority. By developing the brand name the Hilbro surgical industry can directly enter the new market by creating the stepping stone by creating its brand name in the market. Marketing and delivering Even though the built-up excellence of Hilbro surgical goods is comparable with other countries other than in the nonappearance of marketing and correct allocation industry is distress deficiently in international market. a number of of the tools artificial in Pakistan are put up for sale at a great deal of value for the particular motive that they are imprinted as "Made in Germany". Likewise the sharing of Pakistani tools is approved elsewhere from side to side international dispensers and dealers. No Pakistani company either has the resources or the expertise to set up a distribution network of its own. The worldwide mediators concerned in the sharing of surgical instruments function on large expand. Administration The administration of Hilbro is one of the flaws. The Hilbro surgical instrument mechanized has been in the tenders of two or three birders who are subsequent to the conventional ways of doing production. The establishment vest in the supplies of proprietors and this has resulted in the 14 Hilbro International Surgical Industry: The Impact of Change centralization of authority and the success of the industry has further strengthened the entrepreneurs' belief that middle level management is not required to manage a business. Opportunities for the Hilbro Diversification As world is changing with the technology and time the Hilbro surgical industry is still following the old gizmos. Now the time has come that the Hilbro should have to take benefit from the growth and manufacture of instruments through most recent substances such as plastics and other artificial and also to discover the area of electro-medical and diagnostic instruments. Manufacturing elasticity The manufacturing process of surgical industry can be modified very incurring very small expenditures. This flexibility provides an opportunity for industry to manufacture wide range of products. There are still certain high value added surgical instruments which, can be easily manufactured locally. Unexplored markets The surgical instruments of the Hilbro are already exported to the USA and UAE but there are many other potential markets that can be explored by the Hilbro like Japan and Europe etc .
Information Technology The use of the internet technology is very useful now a days as they will provide the easy uses of the web pages where they marketplace their manufactured goods from beginning to end web pages and latest interactive computer devices such as chat groups, news clusters, etc. it is the only starting place of marketing that supplies in intensity and access, which an association actually need. Almost the big names do have their website but this use is purposely. 15 Hilbro International Surgical Industry: The Impact of Change Cooperative venture The history of the hilbro tell that the joint ventures make this industry very successful to keep this culture carry on the Hilbro had many opportunities available to do joint ventures with the small and medium enterprises. As the under-developed countries teamwork with multi-national companies in a way make eases the reassign of technology. Threats for the Hilbro Forthcoming antagonism As the inflation of the Pakistan is increasing day by day, Hilbro had an advantage of the cheap and skilled labor now because of the high inflation rate in Pakistan many other states entering in the local market as China and Mexico they the advantage of the both cheap labor and latest technology, superior in the innovation and had the advantage of using latest material in their instruments as compared to the Hilbro. Laser development Laser development is the threat as well as the opportunity to avail for the Hilbro. It depends on the ease of use of alternatives. Hilbro have to develop the strong research and
development department which make easy the opening of new materials and latest processing techniques. Literature review In this chapter of my research, I explain the whole literature which I found regarding my subject included and write in a well planned and in a related way that it relates to each other but after made a thorough analysis of the literature review first. 16 Hilbro International Surgical Industry: The Impact of Change Technical Personnel From the beginning, the surgeons were considered as very qualified and skilled professionals, and they used their fingers like pianists and violinists. The finger sensation is of utmost importance in diagnosis and for performance in many operations. The introduction of new technologies like MIS changes many issues: surgeon does not look to the operation site but the monitor, and he/she holds an instrument. This issue causes a philosophical problem to surgery, which is not easy to solve (Stark and Benhidjeb, 2008). Technology Larger firms need to adapt to the changing world and technology. The large size implies that the firm is insufficient and needs to layoff to reduce cost and improve productivity. Another trait of firm is ownership status, of which there are two types. One is public held company, the non- owners, the managers of this firm feel pressured by the share holders to increase the share price and profit. If the managers dont respond, they are fired. Hence to save their jobs managers downsize to improve firm financial position. However, private firms dont face such pressures and hence establish long term plans. The crises when enter in the firms at large level changes
take place (Burdos , 1999). Hence, bubbles of changes prevail higher in large public firms rather than private firms. Creativity in organizations Creativity and most creativity- supporting aspects of the perceived work environment declined significantly during the downsizing but increased modestly later; the opposite pattern was 17 Hilbro International Surgical Industry: The Impact of Change observed for creativity-undermining aspects. Stimulants and obstacles to creativity in the work environment mediated the effects of downsizing. (Amabile, 1999) The event of organizational changes is accompanied by negative changes in the work environment for creativity along several specific dimensions that have, in previous research (Amabile et al., 1996), been shown to play a particularly important role in project team creativity. Creativity itself diminishes during a downsizing. Most importantly, however, the meditational analysis revealed that the relationship between downsizing and creativity can be largely accounted for by negative changes in an organization's work environment. Noer (1993) suggested that survivors may not recover from the negative effects of changes in organizations; the perceived work environment does improve to some extent. Maybe some people were beginning to accept the fact of ongoing change within this company. Unfortunately, although productivity and the work environment improved on many dimensions, creativity appeared to have still suffered considerably, even several months after the changes implemented in organization ended. If, indeed, the creativity of individuals and teams continued to be depressed well beyond the end of the revolutionary period, and well beyond an apparent improvement in several aspects of the work environment, the product innovation future of this high-tech company could be in serious danger.
The literature examining long-term economic outcomes (Cascio, 1993), suggests that corporate decision makers of the future should approach with great caution. The long- term negative effects of such actions on creativity and innovation may only retrigger the corporate woes that started the cycle in the first place. Re-engineering 18 Hilbro International Surgical Industry: The Impact of Change Bertolini and Giacchetta(2011) he stated that the BPR is quite beneficial if it is following incremental approach in the heath sector because it is difficult to follow the radical approach in the process re-engineering, as the incremental approach have knowledge of features and ability to provide certain information according to the technology, specialized workers, and quality reserves at clearance. The technology can bring a great change in the health care if it is used and implemented in the right form. Involvement of management Barjis (2009) have noticed the fact that sometimes employees are reluctant to enter in the new project themselves and sometimes organizations dont need to involve employees in the project which is the misuse of source for the organizations. In turn the project completion not only delayed but also contains many errors which cannot be detected by the modeler as many of the systematic processes are missing as these department employees are not involved in the project.
Quality Standards TQM addresses the subjects of customer satisfaction and direction of realizing the marketing ideas of business process of maintain upgrading of customer requires. Implementing TQM is the very important for the surgical industry employees should do the meeting to discuss the objectives, goals, plans to solve the work issues, learning and training analysis. The continuous process of assessment depends on the readiness of the individual and organizations to undergo the process of implementing the TQM method of analysis of the customer requirement, training of employees according to the need of time, measurement of the quality of the product and services according to the standards, to set the programs of international standards like ISO 19 Hilbro International Surgical Industry: The Impact of Change 9000 etc, and to analysis the customer services after the implementation to check the effectiveness of the TQM implementation (Aghazadeh , 2002) . Opportunity recognition At the exploitations of an investigation and expansion opportunities is the end where actuals entrepreneur start with actual adventures. Entrepreneur opportunity actually is, according to the text, it is planned that an investor occasion is a artistic results from a degree, ranging from an to a fully shaped and initial insight idea about operating and starting a his own ideas of investment. Opportunity factors should be classify in three types, viz.: (1) Entrepreneur activities will create other future possibilities (2) factors that enhance the possibilities making high profit and (3) factors that dont equilibrate the market, (Holcombe 2003 Human Resource constraints Conflicts arise due to incompatibility between two groups that interact with each other in the same way (Putnam and Poole, 1987). Conflict can also be defined as a process in which one party perceives other party in a wrong way or its interests are opposed by others party (Wall & Callister, 1995, p. 517). Thomas Schellings famous statement according to which conflict is a bargaining situation. Conflict management is needed to promote the positive aspect of conflict and to reduce negative aspect of conflict. Raul Caruso (2006) used the entropy concept as a conflict and conflict management tool throughout his work. The behavior of asymmetric, rational and risk neutral opponents and when they clash for the distribution of prize. When individual with identical abilities but different evaluation of the stake than the one with lower evaluation will effort for conflicts of management only when asymmetry is large. Asymmetry in evaluation reduces the disorder and increase the instability. Pitelis et al (2009) the intra firm have conflicts between the Rand D department and the firms management and secondly on the role of central 20 Hilbro International Surgical Industry: The Impact of Change management to resolve the conflict to promote the growth of the firm. Open innovation is the only way to lessen inta-firm conflict and is more preferable to closed innovation. The open innovation can also enhance firms growth and increase profitability. Monitoring and Evaluation Monitoring and evaluation are two sets of organizations activities although used together but are both are separate from each other. In surgical industry monitoring and evaluation are important as it is regarding the dealing with machinery and technology of the surgical instrument, this it is the very sensitive issue as it deals with the health issues.Monitoring is the systematic collection and analysis of information as a project progresses. The purpose of monitoring to improved the competence and effectiveness of processes an organizations. It is beneficent to keep all activities on track as planned and help manager identify when things are going wrong. Evaluation is the comparison of the actual gain with that of the planned. It can be formative or summative. Formative evaluation take place during the life of the project with the intention of improving the outcome and summative evaluation is to gain knowledge from the projects that are completed. Matsushima (2010) moral hazard problem is the one in that the principal assign multiple tasks to multiple workers. The principal monitor their actions that are correlated with each other through a macro shock. The number of tasks were increased sufficiently this result in an equilibrium between their relative and absolute performance. Fredriksson and Holmlund (2005) on improving efficiency of unemployment insurance through period of benefits payment, monitor in combination with sanction and workfare. Monitoring system and sanction restore look for incentive more efficiently and therefore the insurance provider offer more liberal unemployment insurance replacement rate in a system with more monitoring and sanctions. Techno-economic, social and cultural forces 21 Hilbro International Surgical Industry: The Impact of Change Institutionalizes assumed that the cause of innovations vary by organization to Organization. Techno-economics force triggers innovations among organizations social "efficiency-minded" cultural forces spur innovation among "institutionalized" organizations. The effects of these forces vary with the type of firm. Organizational innovation helps organizations survive and can contribute to the general social welfare. Scholars have different views on the matter. Efficiency orientation is defined as the extent to which a firm faces technicoeconomic demands created by a competitive market, and institutional orientation, as the degree to which a firm is influenced by social and cultural processes emanating from outside the marketplace. The most common reason why organizations innovate links "efficiency" problems to innovation, suggesting that techno-economic considerations underlie this phenomenon, and the other underscores "institutional" processes, suggesting that social and cultural factors underlie it (Wolfe, 1994). More provocatively, some institutional theorists of organizations (Abrahamson, 1991; Meyer and Rowan, 1977; Strang and Meyer, 1993) assumed innovation causes vary by organizational types: Even as techno-economic factors are thought to stimulate innovation among "efficiency-minded" organizations, socio-cultural ones are thought to trigger innovation among "institutionalized" organizations. These orientations call to mind two dominant logics underlying organizational theories: The one refers to the "rationality" logic that organizations adapt their strategies and structures in responded to shift techno economic (e.g., competitive) condition to maintained efficient controls of internal operations; the other relates to the "arational" logic that organizational change is affected by non-efficiency based processes (e.g., legitimation; managerial socialization) and that change enhances an organization's survival prospects (Scott, 1998). 22 Hilbro International Surgical Industry: The Impact of Change It should be noted that innovation does not cause the downsize but rather moderates the effects of environmental forces on downsizing. Without the need for competitiveness and innovation companies will not be motivated to downsize. This in no way implies that companies should not innovate, but rather find a more productive and reputable way to stay ahead and yet maintain stability and productivity along with good reputation among employees. Moreover, Information Technology like innovation does not cause downsizing itself but rather plays the role of a moderator that enhances the relationship of techno-economic changes on downsizing. According to Alain Pinsonneault and Kenneth L. Kraemer research. First, IT was found to facilitate organizational downsizing, but not to cause it. (2) Adverse environmental condition trigger downsizing and determine changed strategies that manager use. Due to environment pressure were placid (1985-1990), manager preferential a convergent modify strategies that result in limited downsizing effort and smalls workers reduction. Due to strong
environmental pressures in (1990-1995), they busy in downsizing efforts and strategic reorientation that leads to lagers staff reduction. (3), IT role play in organization downsizing varies according to the change strategies. (4) IT allowed manager to cut back more efficiently and rationally. It transferred personnel into the departments, from operations level to the middle management and across department Labor cost and organization redesign In pursuing a labor policy changing strategy companies can maintain innovations. During the last two decades reduction in labor cost has been a managerial practice for increasing organizational efficiency and effectiveness (e.g De Meuse et al., 1994, Budros, 1999;; Cameron et al., 1991 ). By achieve bottom line objectives used cost reduction method (McKinley et al., 1995) and more 23 Hilbro International Surgical Industry: The Impact of Change specifically to: a) reduce duplication due to mergers b) speed up decision making and communication through reduction of management levels c) achieve a reduction of overhead and operational cost, and (Nienstedt, 1989). Scholars mostly agrees that cost benefits of cost reduction is a little deliberately undertaken by the organizations (Cascio, 1993; De Meuse et al., 1994, Budros, 1999; Cameron, 1994b;; Freeman & Cameron, 1993, 1994; McKinley et al., 1995; Mishra & Mishra, 1994).whereas the word ``rightsizing'' are often used generally, (Cameron et al. (1991)) used three heavily utilized downsizing strategies in organizations. 1) Systematic strategies; the character is aimed at Fosters transformation, cultural change, Long-term implementation. 1) Organization redesign strategy; the aimed at Fosters transition and potentially organizational change, Moderate-term implementation, and, transformation. Simply and finally Downsizing: a way of life. These three strategies of organization if in reverse if
organization uses of these strategies increases then downsizing will also increase can be overcome downsizing by less implication in the organizations. So It has positive relationship between downsizing and these three strategies. Mostly organizations doing downsizing concerned with improving efficiency of the organization (Cameron, 1994; Mishra & Mishra, 1994,Amabile & Conti, 1999; Cameron, 1994b; De Meuse et al., 1994; Freeman, 1999; Freeman &). Organizations can only increase their efficiency if their employees are efficient. Reorientation Strategies is revolutionary and characterized by, discontinuous short and radical changes. Mostly it is used by adverse conditions and environmental turbulence, and involves power distribution, structure abrupt and simultaneous shifts in strategy, operations systems. Downsizing can results from whichever type of alter. When convergent change is undertaken, 24 Hilbro International Surgical Industry: The Impact of Change different changes encounter with it, and reinforce existing structures, require less redesign is expected to be incremental, be characterized by the desire to do the same things better (Levine 1985, Robertson 1987, Tushman and Romanelli 1985, Cameron et al. 1987, Freeman 1994, Freeman and Cameron 1993,). When Change in association connected with planned reorientation are likely to be harsher and return an effort to do dissimilar things or to do the same thing differently (Bailey and Szerdy 1988, Ferris et al. 1984, Tomasko 1987). Downsizing It is an organization aware use of everlasting employees reduction in an effort to improved efficiency. (Budros, 1999 ). It becomes popular in the private sector and public sector .Through the 1990s and beyond most experts believe that downsizing will continue .Though fiscal, economic, and political pressure are an direct rapid for downsizing action, the fact is that
in today's rapidly changing business and government size, environments, coupled with industrial age hierarchies, can be a drawback. Traditional business and government organizations are changing faster than most people can absorb. downsizing or rightsizing, organizations usually seek multiple, often contradictory goals: reduce costs, reduce the workforce, increase efficiency, improve service delivery, increase productivity, increase entrepreneurship, decrease overhead, achieve same or better results, increase cost consciousness and accountability, and increase managerial flexibility. Though announcement of downsizing have been shown to lead to short- term positive reactions from the stock markets (Cameron, 1994a), bottom-line performance has not gone uncontested due the ability of downsizing to enhance productivity and improve (McKinley et al., 1995). 25 Hilbro International Surgical Industry: The Impact of Change Those Companies eliminates jobs and lay off their workers, they are perceived as being, less socially responsible, less reputable, hence.(Karake,1998) .because there is no clear-cut definition of this function it is difficult to explain the social responsibility of any particular business.Some Scholar assert, leaving workers with little hope for job security, embraced by advocates of the social responsibility movement, argues that layoffs have devastated the industrial workforce, and improving economic prospects. Basically this pro-social responsibility view is the faith that legal solution is not forever enough .In (1993) Drucker assumed, organization have to take on socials responsibilities. No other in the society of organizations to acquire care of society itself. Other school of thoughts suggests that American companies, increased quality of foreign products, and the emergence of new economic alliances, pressured by global competition, among former rivals, have no option but to reorganize their firms either through down scoping
,downsizing, , or retrenchment. Social responsibility represents a commitment not to misuse the resource of the civilization at large in unbeneficial plant and line of business. This improvement of stockholders wealth is assumed to have a trickle-over effect on other stakeholders, better quality of goods and service, in terms of lower prices, and increased rate of job creation in the not-so-distant future. If investors are to consider appropriately the harmful effect of social awareness expenditure the disclosure of social information is essential. (Belkaoui, 1984). believe that ethical investors form a clientele that responds to demonstrations of corporate social concerns .Investor of this type would keep away from particulars investment entirely for ethical reason, and favored socially responsible corporation in their portfolio Reputation 26 Hilbro International Surgical Industry: The Impact of Change Those Companies eliminates jobs and lay off their workers, they are perceived as being, less socially responsible, less reputable, hence.(Karake,1998) .because there is no clear-cut definition of this function it is difficult to explain the social responsibility of any particular business.Some Scholar assert, leaving workers with little hope for job security, embraced by advocates of the social responsibility movement, argues that layoffs have devastated the industrial workforce, and improving economic prospects. Basically this pro-social responsibility view is the faith that legal solution is not forever enough .In (1993) Drucker assumed, organization have to take on socials responsibilities. No other in the society of organizations to acquire care of society itself. Other school of thoughts suggests that American companies, increased quality of foreign products, and the emergence of new economic alliances, pressured by global competition, among former rivals, have no option but to reorganize their firms either through down scoping
,downsizing, , or retrenchment. Social responsibility represents a commitment not to misuse the resource of the civilization at large in unbeneficial plant and line of business. This improvement of stockholders wealth is assumed to have a trickle-over effect on other stakeholders, better quality of goods and service, in terms of lower prices, and increased rate of job creation in the not-so-distant future. If investors are to consider appropriately the harmful effect of social awareness expenditure the disclosure of social information is essential. (Belkaoui, 1984). believe that ethical investors form a clientele that responds to demonstrations of corporate social concerns .Investor of this type would keep away from particulars investment entirely for ethical reason, and favored socially responsible corporation in their portfolio Price competitive 27 Hilbro International Surgical Industry: The Impact of Change Generally organizations downsize to reduce cost, specifically labor cost and utilize this cost in other business activities. Firm uses these funds in product development etc and offer products with better and attractive price as compared to competitors to gain market share. For a limited time period the cost reduction is affective and may generate profits for the firm. But in the long run if downsizing is not strategically implemented it will incur loss for the organization. Often times the profits earned by reducing cost are unjustifiable. Case Study Problems and challenges faced by the management Since the industry stated its processes in Pakistan it has faced many challenges and still facing it. As manufacturing is the most challenging tasks in the industry to maintain and successful business industry. Surgical industry is investing resources in it to achieve its target
(man, money, and material) to produce its surgical instruments; these resources efficiency gives the better business to the surgical industry if their performance is high. Productivity is defined in terms of inputs (men, material and money) to output (goods and services) Hence, the cost reduction has negative relationship with work productivity and profitability. This is the most effective way of recognizing how effectively these resources are allocated. Productivity improvement helps a lot in the industry to grow, expand international competitiveness and make the valuable contribution to the society. Low productivity indicates that industry is wasting its resources, and this means that industry will mislay its international comparatives and therefore plunging its business actions. Low productivity decreases the growth of the national industry as well and also gives a negative 28 Hilbro International Surgical Industry: The Impact of Change impact on the GDP of the state.The company had viewed its recognized productivity and improvement three years after its inspection. Empowerment The chief executive was very particular about making it sure that managers have had certain decision making power in their areas so this will be time and cost effective. for example the material managers can allot the material to the operation manager when they need more material to complete their consignment before the consignment had been delayed and industry have to face loss. This level of authorities is given to the managers of the departments like quality control manager and product design manager to increase the efficiency of the industry. The quality control manager has a final verdict on the quality products where to purchase for the raw material and the lot of involvement in the quality control process even if the shipment has been delayed. Sometimes CEO wanted a contract but rejected by the managers.
Control Systems Another gauge approved and continually forced by the top management was control systems. Within the couples of years of inspection the top management of surgical industry comes to the conclusion that it is very difficult for them to keep a check on what is going on where. Also it is even difficult for them to objectively seek the defective pieces if included in the shipment by default. Thus management made detailed documents which will help them to trace out the lot of problems from the time of purchasing the raw materials to the end process of safe delivery to the customers. Since the detailed paperwork is not the common practice in the industry at time of start manager face lot of resistance from the employees. This system is forcefully implemented by the top managers by their perusal actions. 29 Hilbro International Surgical Industry: The Impact of Change The industry had a well managed strategy, it would pick the high quality material which they used in the process of making instruments and latest in the 2009 they got the certificate from the ISO 9002 which is the extra achievement which helps them to explore the foreign markets. Departments interactions The department are working on the same consignment have a indirect connection as chief executive is acting as an arbitrator here but in 2010, they have given the departments to work on the consignment directly but still faces some issues because of the less networking between the departments as less computer use in the production, scheduling, and operations department. Data of the customers information, dealers, suppliers and transporters is not on the databases. As the inflation in Pakistan is very high so the manager have to import the raw material from the Germany and Japan as the cost effective objective they have to gain by this so there are hurdles in it, as take time to get to the industry then in processes and others
Skilled labor Skilled labor is the main part in the production and manufacturing of the surgical industry as it is the productive industry and a very sensitively related to the health issues of the life, so the skill matter of the worker is under concentration at every point. The main task for the human resource department is to hire the most skilled persons in the department but the issue here arouse is that the availability of the less employees in that industry. As the trend is that the employees train their relatives or the new employee who want to learn that skill, so the human resource department is facing a lot of trouble in getting the required qualities for the person to get employed. Wide product range 30 Hilbro International Surgical Industry: The Impact of Change Despite of the limited resources available to the surgical industry, they are still manufacturing a wide range of products and categories of the surgical instruments such as surgical and dental instruments, but they even find it difficulty locally to expand as competition is very high as china has made a big market also in Pakistan because of its low price of the bid they get the contract. Process of purchase of the surgical instruments
Similar to the other states in Pakistan the hospitals use to purchase the surgical instruments by the process of bidding. This whole process is placed under the supervision of the department of the hospital in the closed box all those who want to participate in that process and give their bids the bidder who give the lowest bid is the winner of the bid, and that exporter will lead his instruments to the hospital. This whole process in Pakistan is under many problems as the corruption level is very high favoritism has been done here and the demand of the buyer not
for the quality but for the low price has not let this to cope with the quality conscious industries. Because of that bribery system in the health sector can lead to the low quality instruments as they are not quality conscious they only viewing the price, because of the elasticity of excellence organize subdivision in the hospitals of Pakistan. Pakistan is now a day doing great effort to come over its problem of controlling the corruptions and the supply of illegal drugs in the state. Whereas hilbro is concerned he has already in contact with many hospitals in Pakistan and supplying the surgical instruments, as it is nearly got reanimation from the ISO 9000 certificate so now it become very easy for it to expand locally or foreign. Difficulties to work locally In broad, the surgical trade development might involve a lot of outlays that can be monetary and non monetary, the reason behind is that business costs and labor market defects exists in 31 Hilbro International Surgical Industry: The Impact of Change Pakistan. Problems which the managers of different organizations facing in Pakistan while doing business, are the cost of production is very high due to the high inflation in the market of Pakistan and the government of Pakistan has declared to the stability of the interest rates but if the Hilbro has to go to the bank for the loan they will charge the highest interest rate up till now 12.5%, this interest rate will increase with the increase in the inflation rate. Because of the other reasons in the market the reason which makes that market more difficult is that the foreign completion is entered and trying to get the customer by their low priced material goods now buyer is aware of that completion and its choices in the market that will let him ask for the lowest price for the product.
Recuperation process belated The surgical instruments when reach the hospitals the other big problem is that the delayed process of the recovery of the credit recovery that the biggest barrier as the inflation rate id increasing day by day in Pakistan it let them made that profit secure at that time but there are many procedures in the Government departments and hospitals to follow that let them delay it after that from the signatures of the many Government department members it reaches in the hand of the suppler. As the Hilbro need to search the best markets to enter then they have to consider it but focus on the other markets to deal with them directly Case Design 32 Hilbro International Surgical Industry: The Impact of Change The type of our study is pure as this case study is going to show why hilbro international surgical industry needs to change or why had to change. The type of case study is quantitative because it is showing the impact of the factors on the decisions for change and where to change, direction lead to the industry in this case. Having identified the variables in problem situation and defined the background in brief of the industry, the next step is to design the case in a way that the requisite data can be gathered and analyzed to arrive at a solution. The nature of our case study is explanatory. As we need to explain some important relationship for example what be the effect of expansion of exports locally over industry decisions, or what if they try to expand foreign and where if they go for new market which is preferable. How Industry decisions will be affected if industry go for the foreign customers. In this case study it is recommending the surgical industry to expand for change to generate revenues.
As describing background and the internal analysis of the departments this study will come to know the internal problems of the industry. Then by structured questionnaires this study gather the information which the employees know, then doing the financial analysis this study will know about the real problem then analysis the market gaps for the expansion is provided in the case and also for the prove data gathered from the Market Access Database, 2010. Then recommendations are provided then the implication procedure is given in the end. Sampling In case design of visiting Hilbro international surgical industry for the impact of change, Convenience sampling i.e. a part of Non Probability Sampling is being used. The population frame consists of employees who are the employees of the Hilbro international surgical industry 33 Hilbro International Surgical Industry: The Impact of Change Sialkot. Non-probability sampling is being selected because all the data of employees of the Hilbro international was not available properly so that the elements in the population do not have any probabilities attached to their being chosen as sample subjects.Convenience sampling was preferred because the case is based on the Hilbro international surgical industry that is conveniently available in Sialkot. Research Method This study determination principally creates bring into play of useful industry change literature. Indeed, excellent relevant studies about methodology exist.Objective is to establish the understanding of the surgiacal industry problems and providing solutions that will lead them toward the change process. The survey method was considered suitable for this kind of study. A self-administrated questionnaire is a best tool for data collection as the issue of the reliability of
information can be enhance by reducing and eliminating differences in asking and presenting questions, more over questionnaire is the best tool to collect the data from the large number of respondents in the short span of time therefore, this move toward decreases development and alter to a chronological list of the consequences that go after as of a deterministic or stochastic model. Quantitative methods will be second-hand to gather the necessary information. The secondary data is accessed from Hope, Market Access data base, OECD, CIA and WHO. This would help to explore European markets which would help this case to identify the best market available in Europe. Design and sampling 34 Hilbro International Surgical Industry: The Impact of Change A cross sectional study is mainly appropriate to check the behavior and gaps that effect the industry, because this study will test them among real life employees of surgical industry and to find out dimensions of change. Although this study derived my case plan from existing surgical industry, the content and distinction of exploiting opportunities is new in this study for the surgical industry. While cross sectional studies are comparatively trouble-free to carry out, laboratory investigative techniques are additionally appropriate , since techniques similar to longitudinal studies are time overwhelming and costly to carry out. Another significant cause to carry out a cross sectional study to investigation the change plan implications provided by this study to the industry. Demographic Analysis One sixty five is the selected sample size of the questionnaire, the respondent are those who are employees of the Hilbro international surgical industry the education of the respondents where 22% are the graduate and 8% are the post graduate, 32% are metric, and 36% have no education. Sixty percent of the samples are female and 94% were male. The mean age was 24.5 years and sixty-four are fron the product specialization area, 52% marketing, 32% were from human recourse management, 32% from HRM and 13% from finance. The study observes the employees problems and views about the changes in their industry. TABLE 1 Shows the Results of demographic information Demographic information % Females 6% Males 94% 35 Hilbro International Surgical Industry: The Impact of Change Graduate 22% Post graduate 8% Metric 32% No education 36% Finance specialist 13% HRM specialist 32% Product specialist 64% Mean age 24.5 years
Reliability Brusquely, reliability is a ways that replicating a study that will result in the similar results. Since this research is a single cram, it is not credible to repeat this investigate in the petite span. To conquer this difficulty, a reliability analysis in SPSS to make sure whether inquiries that were asked from the respondent are responded frequently by the respondents. As a general statistical rule, the minimum will be kept at, 70. Items that lower the Cronbachs alpha far below the, 70 level will be eliminated from further analysis. The total score of the survey questionnaire is the mean of the thirty two items (o =0.698). Validity After developing the initial questionnaire face and content validity is conducted and the questioner is refined. The final questionnaire consist of thirty-two questions, , respondents Responses are measured on five point liker-scale that varied as of 1= no impact to 5= very high 36 Hilbro International Surgical Industry: The Impact of Change impact. Before filling the survey we also did validity through face and content validity. (See the questionnaire in appendix-A) Results TABLE 2 Mean and Standard deviations
N
Mean Std. Deviation R and D 165 3.0154 .66102 Marketing 165 3.1662 .59046 HRM 165 2.8910 .72538 Industry Administrative operations 165 3.0287 .53285 Valid N (listwise) 165
In the table 1 the mean value of Research and development is 3.0154 which are slightly more than the moderate reaction from the respondents. Standard Deviation values shows if we take any factor randomly from the Research and Development than there is the probability that the result will fluctuate .66102 either from positive side or negative. The mean value of the second variable marketing is also slightly more than the moderating reaction from the respondent and it deviates .53285 due to its Standard deviation value. Variable Human Resource Management shows slightly high impact among respondents. Their Standard Deviation values shows it has .72538 changes occur by taken any factor randomly. The last variable Industry administrative 37 Hilbro International Surgical Industry: The Impact of Change operation means values shows the respondent are somewhat satisfied while bringing any change through Human Resource management policies and procedure. TABLE 3 Correlation among the R and D, commercialization, HRM and administrative operations
R and D Marketing HRM Administrative operations Rand D 1 Marketing .073 1 HRM -.168 * -.235 ** 1
Administra tive operations -.223 ** .333 ** -.069 1 **. Correlation is significant at the 0.01 level (2-tailed).
100 Table 3 shows the correlation among variables .The correlation among Research and Development and marketing shows insignificant and strong positive relationship. The correlation between Research and Development and HRM shows significant and week negative relationship. The correlation between Research and Development and Industry administration operations shows significant and weak negative relationship. The correlation between marketing and R and D shows insignificant and strong positive relationship. The Correlation between marketing and HRM shows insignificant and weak negative relationship. The correlation between marketing and industry administrative operations shows highly significant and moderate positive relationship. 38 Hilbro International Surgical Industry: The Impact of Change In the third column the variables HRM and Research and Development shows insignificant and weak negative relationship .The correlation between HRM and marketing significant and negative relationships. The variable HRM and industry administrative operations show significant and very negative relationships. In the last column industry administrative operations and Research and Development shows significant and negative relationships in between. The correlation between industry administrative operations and marketing shows highly significant and moderate positive relationships. The correlation between industry administrative operations and HRM shows insignificant and negative relationships in between. Analysis of results This case study looks at the factors which the employees and managers of the surgical industry both were concerned and want to direct them towards the change process. From the descriptive statistics in we can conclude that from the administrative and operations results that employees are in favor of the change and they want change in these two departments as the unsatisfactory level is high of the employees regarding these two operative management in the surgical industry. From the results of the correlation matrix we see that the correlation between the administrative and operations and marketing is negatively significant the reason marketing of the surgical instrument never happen and the department of the marketing is not available yet. As HRM and Research and development department have a negatively significant correlation is that research and development department has been recently opened in the organization and at a very small scale. The research and development and marketing department has showing the insignificant impact because both are the new phenomena for the industry.
39 Hilbro International Surgical Industry: The Impact of Change Solutions to the Problems and challenges The Hilbro international surgical industry problems and challenges after a deep survey and the interviewing from the different key top men this study has providing solutions to their each problem Empowerment The chief executive have to make it sure that each manager in their department is using the right way of his authority he is not misusing his authority, evaluation of the manager should have to be done on the basis of his department performance and the quality control manager should be hire from the broad from their foreign customer as if the customization of the product facility is provided to the customers they will feel glad to opt the Hilbro as their priority list supplier plus the managers within the department will try their level best to make their purchasers pleased. Control arrangement As detail paper work is not the solution of the problems of the defective pieces if comes in the shipment by mistake or the shipment has been delayed for that purpose the surgical industry have to put the computerized system in every department and the scanning machinery for the checking of the surgical instruments if all are in good shape got in the shipment. Department increases The department interaction can be strong and they could work in a secure way if the link between them got strong and this could be possible if they had a network connection. The financial data is not maintained properly even they stop making the annual reports till 2005, they have to maintain their record on the computer as by hiring a software engineer to make a database for them which will be very helpful to maintain the records of their vendors even in a order which is very necessary and the first part leads if they have to expand they have to lineup 40 Hilbro International Surgical Industry: The Impact of Change their information. The marketing of their surgical instruments should have to be done and have to open a marketing department in the Hilbro surgical industry because changes comes from the creative ideas and research and development department should have to expand from the three working people to more and have to hire expertise. Labor incentives There are less skilled workers in the organization the reason behind is that the workers are not much satisfied from their work if this behavior continues then one day surgical industry will come to the end. But this could survive if the workers are provided with the incentive to provide the workshops to their childrens for free or the new employees or the new generation to let them see and learn the skill for their living hood. Sharing of the experience with the new ones will also motivate the employees. Product range market Launch the campaign of their product range and their working processes, in the market it will let their market to grow and the customers if urgently required the surgical instruments will consult them. As large number of commercials are used for the name reorganization of brand. Potential market analysis One of the most competent markets when searched in that case is the EU market which is a large in number and the demand of the surgical instruments is in abundant as compared to the other markets so this is reason is consider it and because of its glitter features as well, the number of inhabitants in that area are in the 6% of the world. The EU is the largest importer as well as the exporter of the word of the profitable high-qualitys and once-overs. From the decade it is the biggest market for the surgical tools, Pakistan also exports its surgical instruments in that area, many of its exporters exports its instruments in that area but only 50% of it as after 2009 they 41 Hilbro International Surgical Industry: The Impact of Change have decrease to the dead end. In our case study plan we are analysis the markets of the Europe as with respect to the local marketplace for the expansion of the gadgets of the surgical industry. The case study criteria for the exploration and the selection of the most competent market is based on its number of hospitals and dispensaries present in that state, the number of inhabitants, the growth of the inhabitants rate, inflation rate of that state, GDP(PPP) of the state and the life anticipation of the inhabitants of the state. In 2009 the EU helped Pakistan to increase its exports by reducing its tariff as a special grant towards the exporters of the Pakistan. Trade guiding principle The measures that can affect the policy of the state in the exports of goods and services are defined and precise by the EU. These rules and regulations are also covered by the laws of the polices, rules and regulation regarding to the company, also about the policies measures on the technical products, property rights, taxation and enforcement of the rational possessions rights . The EU had also make it sure that its polices implemented on the coastlines of the state within the state and outside the state of the EU. These polices of the EU are supporting the liberalization of the trade whereas the state remove the custom barriers to give the space to the trade (HKTDC, 2007). Constraints linked trade policies in EU The EU has taken some trade policies to measure to keep the control the trade inside and outside of the state. These policies were made to keep an eye on the trade of unfair trade practice in the state as these measure will also tell the game play in the most fair way of imports and exports in that area. The import licensing system was introduced by the EU that will let the importers and exporter to encounter in the market. The Quota system is introduced by the EU as to maintain the balance of the imports and exports within the state as these , in the EU as the imports in the EU 42 Hilbro International Surgical Industry: The Impact of Change increases their local products will get the harmful effect so those products are allowed that will not be produced in the state in the long run or those in deficiencies, it is valued according to each and every products Hilbro have to take some measures regarding it . different strategies are followed regarding the dumping of the goods as if any imports tries to do it antidumping polices are used by the EU in that case. The forged products or the pirated products are banned in the state. The policy regarding the steel or the iron products is that there is the double checking of the system is applied along with quantity is allowed to the certain number within the state. For the certain issues related to the heath matter EU had banned the nickel products within their limits. The certain measures were taken by the Hilbro while entering in the EU as the product safety is necessary in that case that will be made by the criteria they will follow and in the end do take the certificate of their consignment is made a safe delivery (HKTDC, 2007).
Tariff and imports duties The cost which the exports which the Hilbro have to bear is the tariff and duties of that state which is made by them the system followed the EU is the most systemized and Harmonized system where the of their articles of trade system. The custom department is used to charge the custom duty on the cost, frights and insurance of the product. The transition value is very important in that case as there are certain rules are also followed in the EU i.e. as the actual pay price, which include the items payments and breakage which are expense, cost of casing, cost of urns, sovereignty and certify fees, cost of shipping and indemnity of the goods that imported, caroling and treatment charges connected by means of the transportation of the goods that imported. Pakistan market 43 Hilbro International Surgical Industry: The Impact of Change As the Pakistani market is the local market for the Hilbro to target it as the complexes in the market is increased due to its high inflation as compared to the other states and the consumption expenditure increases and production capacity decreases. The imports of that states increases and the exports are decreasing the interest rate stability is declared by the Government of Pakistan is not changings. The market for the surgical industry is also limited up to the number of hospitals in the state it is 948. Life anticipation of the inhabitants are maximum up to 65.26 which is also very less as compared to the other state inhabitants. The total number of inhabitants in the state are 174.5 mil which shows that a great number of residents of the state and the budget allocated by the government in that sector is 2% which shows the less interest of the public sector in the health care budget and the development regarding to it, it also shows that the hospitals in thats area increase is very slow which makes that market not as competent for the Hilbro to cover, as that much.
TABLE 4 Market information information Facts Hospitals and Dispensaries 948
Life anticipation 65.26 inhabitants 174,578,558 inhabitants growth rate 1.555%
GDP(PPP) 449.3 billion Inf 14.2% State expense on the healthcare budge% 2 44 Hilbro International Surgical Industry: The Impact of Change
Expansion towards the EU stated according to the criteria Germany The most competent marketplace for the surgical instruments is Germany through the decade of the history of the Pakistan surgical instruments exports with the passage of time the exports of Pakistan has decreased with the Germany. The hospitals in that state are 3350 in number in the year of 2010. The residents in that state were 82 mil and the life anticipation of their maximum is 79 mil. The expenditure by the side of the Government on their health budget is 10.4% in the year 2011. This market is the most competitive market for the exports of the Hilbro because of its number of hospital in that state is higher as compared to any other state within the EU, the inf of the state is 0% which makes that market more attractive for the Hilbro to conquer and its GDP(PPP) is $2.811 Trl which is also the most highest figure in the EU, Hilbro imports also his machinery from that market which makes it more important to capture for Hilbro so to encounter that market Hilbro must view it. TABLE 5 Market information information Facts Hospitals and Dispensaries 3359
Life anticipation 79.26
inhabitants 82329758
inhabitants growth rate -0.05%
45 Hilbro International Surgical Industry: The Impact of Change GDP(PPP) $2.811 TRL
Inf 0 State expense on the healthcare budge% 10.4
UK As per the assessment of the year 2011 UK number of the residents are more than the 61 milion, such a high number of residents this market is the most favorable and suitable for the exporters like Hilbro Intel the inhabitants velocity of increase is 0.28% , the life anticipation of the inhabitants are 79.01 this makes that market the most suitable and the potential market for the exports of the surgical instruments of the Hilbro to include that market to cover in the future. The inf of that state is 2.1% which is quite suitable for the exports to enter in that mart to cover the number oh hospital in the UK are 2312 which is quite a high number and shows that the number
of availability of clients in that state. The health care budget allocated in that sector is 8.4%.the thing that made that market potentials is its number of inhabitants and the financial development in health sector. TABLE 6 Market information information Facts Hospitals and Dispensaries 2312
Life anticipation 79.01
inhabitants 61113205
46 Hilbro International Surgical Industry: The Impact of Change inhabitants growth rate 0.28%
GDP(PPP) $2.149 TRL
Inf 2.1%
State expense on the healthcare budge% 8.4
Italy The Italian marketplace has high-quality possibility for the Pakistani surgical instruments. Still although Italy had a smaller quantity amount of hospitals, measure up to complementary big states in EU, the state has already promoted the exports of Pakistan as the requirement is huge as compared to the total number of imports of the surgical instruments they allow inside the state they are seeing for more export fin the surgical industry sector because the number of the residents in the state are increasing as per the inhabitants life anticipation is high
80.2 and the total number of residents are 59 million within the state. The inf of the state is 0.6% which is less than 1% in 2011 which shows that the stability of the state. The government of the state is taking special condensation in the health sector as the budget for the health sector is 8.7%,the PPP of the state is shown from the GDP which is the 1.76 trilion. The share of the Pakistani exporter in the surgical industry is very less as compared to the others so Hilbro can encounter this market because of its high potential. TABLE 7 Market information 47 Hilbro International Surgical Industry: The Impact of Change information Facts Hospitals and Dispensaries 1283
Life anticipation 80.2
inhabitants 58126212
inhabitants growth rate -0.05%
GDP(PPP) 1.76 TRL
Inf 0.6%
State expense on the healthcare budge% 8.7
Belgium The Belgium not a huge colonized state. According to the assessment of the data of 2011 the total numbers of inhabitants in the state were merely round about 1.5 million who are living in that state. According to the information of the number of hospitals and dispensaries in that state were 210. The market for the exporters of the surgical instruments of the Pakistan were have to consider that market too as from the long time this is neglected and it is the new market if Hilbro captures it the numbers of hospitals were less but the inhabitants number and there life anticipation is quite making it attractive for the new exporters as the government of the state is also considering the health issues very important and the allocation of the health care budget is 10.2% privileged than other states and the inf of the state is 0% which makes it quite attractive for the exporters like Hilbro. TABLE 8 Market information 48 Hilbro International Surgical Industry: The Impact of Change information Facts Hospitals and Dispensaries 210
living anticipation 79.22
inhabitants 1041436 inhabitants growth rate 0.09%
GDP(PPP) $381 BL
Inf 0 State expense on the healthcare budge% 10.2
Same is the case with the other states included in the Europe the inflation rate is controlled as the same currency is followed by them that is euro so that is the most attracted and a new market for the hilbro to encounter as government spending on the health care budget is more than the under developing sates, many states which are as Hungary, Spain, Denmark, Poland, Austria, Romania, Czech Republic, Portugal, Greece, Sweden, Bulgaria, Ireland, Lithuania, Finland, Latvia, Cyprus and many more state included in the new market for the hilbro should have to encounter because of their low inflation rate, economy is stable, the life expectancy of the people as per survey is higher and the budget announced by the Government of these states are higher as per under economy states. Discussion 49 Hilbro International Surgical Industry: The Impact of Change The market of Europe is the biggest market of the world , the common currency is used among them is euro the inflation rate as compared to the underdeveloped or economic countries like Pakistan is zero and the exchange rate rupee as per euro is high the reason is that the Pakistan currency is devaluing day by day which makes very difficult for the Hilbro international to expand locally because bank debt charges will also increases and production cost increases as well.Pakistan is the biggest exporter of the surgical instruments in the Europe since its industry established; European Union has granted special integration to the exports from Pakistan to help in its economic development with low tariff Hilbro international surgical industry can take benefit from that opportunity and to make likes directly rather than indirectly, Hilbro have to remove its middle manager policy of dealing inside the Europe market and try to deal with the customers of European hospital directly. This process will let them make the strong bond of trust and development of customer relationship will help them for the long run survival of their
dealing. For the best market within the Europe the selection criteria of the case study is the inflation rate, population, number of hospital and dispensaries, life expectancy, population growth rate and GDP of the state allocation for the health budget as these are the all capricious for the viewing of the health related issues in that particular state and the possibility for the need of the required material related to them in that particular market, as Belgium have the less number of hospitals as compared to Germany, United kingdom, and Italy but its population growth is high which shows that potential of opening more hospitals in the Belgium is shown so it can be the new opportunity for the Hilbro to keep its information open from that site to encounter that customer. 50 Hilbro International Surgical Industry: The Impact of Change As Hilbro international is planning for its expansion in the Europe but they have to view its internal process first and resolve the issues which are effecting from the inside, as for the process for the change they first view its internal problems then try to expand further otherwise they will affect the process of change, like they have to resolve their administrative and operations issues, then do keep record on the database inside the computer, the labor force is reducing the training department should have to be made to keep the new workers in process and workshops should have to be conducted, contract the foreign surgical industry for the share of the experience and knowledge and send employees for further training to abroad as large machinery is involved . Recommendations The Hilbro have to keep in mind certain things if they want to expand the change within the organization will lead to the increase the revenues the as the trade barriers within the state and within two states the borders of different states are decreasing so they have to find the new markets to encounter as the as because of this reason the world has now become a global region. For that purpose the Hilbro should have to find the new was of manufacturing the surgical instruments as that is the primary product of the Hilbro Intel, as the demand of the buyers is for the low price for that purpose the Hilbro have to use the new material as the plastic is used in the products the new dimensions and the use of the cost effective techniques will let him survive in the markets. The cost reduction benefit is not enough for the Hilbro that it is not enough the Hilbro should have to take over the laser technology benefit as that will also let him make the first mover advantage in the industry as no competitor is making or manufacturing the product, for introducing the new technology they should have to make strong of their research and development department, for that they have to employ the expertise in the research and 51 Hilbro International Surgical Industry: The Impact of Change development department, which will let them have some creative thoughts within the industry. The Hilbro should have to develop the strong client tale relationship which will help them generate more business. For that purpose the brand name development should have to be done as the band name is not focused by the Hilbro they should have to use the discussion forums for that purpose the smart techniques provided on the internet and then focus on the building of the marketing departments as that is necessity of time as that will lead the new market campaigns that will be effective for the industry in the long run as the big firms are recognized by the name and their name will lead them toward the change as a stepping stone. Hilbro can take advantages in the international trade fairs by increasing their budget of marketing and research and development departments, now the government of Pakistan had declared their support for the industries and give the special grant of 25% to those who process towards developing the products. The Hilbro intel can lead their employees and technicians abroad for the training purpose that will let them reduce the gap of less skilled workers and will let them increase their knowledge on the certain markets information and experience to the markets Germany is the well established market and best for gaining knowledge about the new technology and techniques. . Hilbro needs to make the communication process smooth and flexible so that there is less time required to process each order and shipment. The power should be distributed among all the Directors of various product lines so that they can meet there own demands and generate their own profits and bear own losses. The systems should be flexible and participatory decision making should be in place. Hilbro should take more time in making their marketing activities more visible so that they have a better chance in marketing their products globally and which in turn can help in expansion of its operations internationally. Being a private company they should have sufficient financial 52 Hilbro International Surgical Industry: The Impact of Change information available to project future investments in Europe and the west.As the company lacks a proper marketing and Human Resource department they should invest in establishing a better department for both functions so they have a better opportunity of competing in the market with international suppliers.
Future Research Although this business case of Hilbro surgical industry is answering the case questions regarding to expand the market of its surgical industry from locally to abroad, which one is their most preferable market for them to encounter and to with what methods they have to adopt to bring change in their industry. The focus of its change is to generate revenues from change process. First this case study clearly shows that industry facing internal issues and not enough excess to the local market so need change, discussed where to expand and what the criteria for the selection of such markets are. For future study important to converse about the labor skilled force recruitment inside the Hilbro surgical industry where to get them how to train them. Secondly the techniques we used is to increase the sales and get focused on one certain market of developed state because of their criteria set in the study may be the future researcher will find out the better markets according with the time, as circumstances are involved in the market exposure. Another important point used in this research methods. The great majority of observed decision making research has a cross sectional nature. This research deals with the issues of Hilbro international surgical industry change relationship, since the internal issues are also cooperated which will affect the expansion of the industry, a cross sectional study, is taken in this study to take the results that have to be in use to take a expansive view the results. The reason behind is that the single study cannot full fill the change process within the, to check entrepreneur decision making styles and employees behavior after change implemented or in the process of it for that purpose 53 Hilbro International Surgical Industry: The Impact of Change to check the behavior longitudinal research should be recommended. Fourth is that the cultural back ground and decision types may affect the results. Limitations The time period given to us was limited. Using a single method for collecting the data not focused on longitudinal research & combination of research methods. Focus on the only one type of industry Hilbro Intl and limited my case to it other surgical industries are not included in my case because my research phase is not up to them. Focused on the potential markets for the expansion of their sales to encounter the internal problems are also included , many issues related to transport cost and budget for this whole process are not involved in my case study due to the level of interference was minimal. Hilbro is the private firm they do not publish any information in the written document is the biggest hurdle in our study. Delimitations In this study the researchs has some delimitation as to complete the task in time. The Hilbro Intl problems in that study are delimited to the market search to generate revenues from sales, problems that could interfere are the employees, labor skill, record keeping and administrative and control system within the organization. Implications Phase 1: Create exigency Whenever change happen or lead in the industry it is the first phase to create the sense of need or necessity felt by employees too that they have to drive towards the change. This will help the hilbro to move the things according to their plan. They have not to talk about their poor performance in markets but to talk about the market their compactors and the survival of 54 Hilbro International Surgical Industry: The Impact of Change employees and their future. If employees start talking about the change the exigently will create itself and feed itself. Step 1: Plan future Now when the top managers are keep on buzzing and stressing on the future of employees and their collective goals, the main part in it is that see the threats examine them, scenarios development is the best way of showing the picture of the future. Step 2: opportunities exploitation Estimation of the best opportunities should be done by the top management of Hilbro by themselves and start relating to different resources in their environment and evaluation of the cost benefit analysis according to their best available opportunity for the expansion of the business and start developing new policy and procedures for it. Step 3: Start Discussions Start the honest discussion among employees according to their plan and give them persuasive and active reason for their thinking and working on the plan. Step4: Support from Vendors This is very important for the Hilbro to keep in confidence of their vendors (suppliers, distributors and labors) and shareholders while planning for change, they have to share their plan with them and let them guide them about the most help they could provide in their change benefit. The benefits of changes should have to explain to them in a very presentable form, as it is very convincing. Phase 2: Structure an imposing Collation 55 Hilbro International Surgical Industry: The Impact of Change After the convincing of the employees and those who related to the Hilbro surgical industry, this is possible with the help of the commanding leadership and key people support within the organization. The first process toward directing towards change is that to lead it in the best way. Step1: recognizing leaders When directing towards the process of change hilbro have to implement some very important matters within the organization so first to identify the best leader among them they have not to follow their traditional hierarchy. To lead towards change this is very important to build a team from different background and their power comes from the variety of sources like education, political importance, job title, status, and expertise. Step2: Emotional commitment of the Key team members Emotional commitment of the change team members is very important to their work, if they are not emotionally involved in that thing and they consider not fruitful then change will not work. Top management has to create the urgency of change in the key members mind to that level that it will make them proficient to do it or nothing have done by them policy in their mind. Step3: work on the team building within the collation of change The Hilbro surgical industry top management now have to create or form a team with in the collation of member they have identified for their best urgency for change and capability. Step4: Test Coordination of team and their weakness The Hilbro surgical industry has to check or test the team coordination on the different and minor tasks assigned them so their weakness can be come across at the first level of process of change, and then top management have to tell them that they are the best employees among them. Phase3: Generate the Vision of change 56 Hilbro International Surgical Industry: The Impact of Change The top management has first generated many creative solution providing ideas which the employees can easily grasp in their mind and observe that concept. Now link these concepts to the vision that is quite understandable by the employees that vision describes the concept. Expansion towards sales and generating revenues is the vision of the Hilbro in short which is quite reasonable for the understanding of employees. Step 1: Determine the values of change Determining the values of change in the surgical industry is very important, specially the values which effect both employees and the organization Step 2: Develop future summary The top management and the change team have to develop a short summary that explains the future of the industry after implement changes in the Hilbro surgical industry. Step 3: Develop strategy to execute the vision Hilbro have to develop the strategy that will carry their change vision, this is the most important part for the change process, the strategy is that labors if wanted their childrens to join the same business then training courses offered to them for free etc. the strategy should be that which would help both employees and the industry work on collective goals. Step 4: Practice Vision speech often This is very important for the top management and tem members of the change in Hilbro to practice their vision of change speech from time to time to the employees. Phase 4: Converse the Vision After creating vision the top manners responsibility is that to conserve the vision. Converse means communicating of the vision as this is very important for the surgical industry like Hilbro to communicate the vision in a correct way to the employees, stakeholders and vendors of 57 Hilbro International Surgical Industry: The Impact of Change the industry as this is very helpful in the process of change. The team of change has a strong completion of communication from day-to-day communication within the company. So they need to communicate it repeatedly and impressively and implant it with everything they do. Step1: Talk frequently regarding your change Vision Top managers and the team of change should not call meeting regarding the discussion of the change but have to frequently talk about it, the every change they felt or get with the phases of the implementation or in its process they get. Step2: Implementation of Vision Candidly and sincerely addresses the difficulties and concern of the people on the subject of the change. Make use of the change vision to resolve the problems and difficulties of the employees. Step3: Application of Vision on operations Now the application of vision on the all aspects of operations on the surgical industry from the training to the performance reviews of the labors and to the top management. This is important phase as when you keep it memorize on the every ones mind they will keep in mind. Step4: Pilot by examples The change team should have to create certain examples for the change within side of the industry that will help them to proceed easily in future change for example downsize of the employees and give incentive to the quickly giving positive respond to the change. Phase5: Removal of Obstacles If the surgical industry moves at this point then they are talking about the changes they did till now and their employees are getting busy in taking benefits from the internal changes they provided to them. Now see if still someone resisting towards the change, what obstacles they are facing? 58 Hilbro International Surgical Industry: The Impact of Change Step1: indentify the change leader At that step surgical industry has to identify the leader who can lead them to the change process, hire them if required, its main role is to deliver the change process in the industry. Step2: Portrayal of industry At that point surgical industry has to look at their job description, organization structure, and performance and compensation system as they cop up with their change vision process or not. Step3: Recognize the factual hands of fleet This is very important for the sake of the future changes of the industry to recognize the employees the employees who helped in the process of change and reward them. Step4: Recognize the confrontation from employee Identification of employees who still resisting toward the change and help them in their problems. Step5: Actions to quick removal of barriers If there is any obstacle inside the organization human or anything remove it through immediate action. If it is outside the industry try to deal with it through the contract or other actions. Phase 6: Create short-term wins Nothing stimulate better than the victory. In the beginning of the process of change seek those targets that could be easily achieved, that will help the employees for the necessity of change. The change team if succeed in the beginning of the whole process a taste of victory to the industry this will motivate them for achieving further goals. Step1: Look for fire-projects 59 Hilbro International Surgical Industry: The Impact of Change Look for the fire-projects that can be achieved by the team without the help of any detractors intervention. For examples bringing a contract with a foreign customer. If the team of change brings a failure at the beginning of early goals it will affect the whole change process. Step2: Start little then grow Surgical industry should not have to start with the expensive project they have to keep in mind that the investment should have to be equally managed. Step3: Analyzing of the targets Continuously analysis your targets pros and cons this will help the surgical industry successfully achieve its targets. Step4: Reward summit Reward those who help the team in achieving the targets this could be anyone employees, stakeholders, or vendors.
Phase7: Build on the change The change process is not what get is a little but it is a continuous process and the Hilbro surgical industry should have to continue improvement in its process, and in steps this should be implemented one by one. Step1: Victory analyze After every success it is necessary to analyze the success, what else can be done in the future for the improvement. 60 Hilbro International Surgical Industry: The Impact of Change Step2: incessant perfection Set the goals on the movements you have achieved, learning new ideas of the continuous improvement process is the most important of all to be successful to the end task. Phase8: Secures for changes in the industry culture Finally to stick the change in your industry, it ought to have to be the nucleus of the surgical industry. The hilbro surgical industry has the corporate culture to discuss the day-to-day goals. Make continuous efforts will let the change at every nuke and corner of the surgical industry. Include the change ideas when hiring new team and in their training process, let their success stories be told to the new upcoming members and recognize the contribution of the change team and value them.
Business plan Diagram
61 Hilbro International Surgical Industry: The Impact of Change
Analytical brief Decline work End Appoint team Develop work plan Scope of activity
Brief
Recruit Write Rep WP Existing methods Expertise available Approve plan by customers Yes No No No Yes Yes Yes Customer satisfied Perform work Modify Staff EM adaptable New method s Completer No Yes Further work Results presumabl e Yes No Yes Yes No Yes No 62 Hilbro International Surgical Industry: The Impact of Change
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Appendix A Survey Items Background and control variable Gender, education, Department , and age Research and Development Using the four items below (o =0.687), respondents were asked about their participation in the RnD . Responses were recorded on a scale ranging from 1(no impact) to 5 (strongly impact). Increased your general technical awareness and/or capabilities in this area Accelerated or improved existing research projects Stimulated new research projects 67 Hilbro International Surgical Industry: The Impact of Change Contributed to development of intellectual property within my organization Marketing Respondents were asked about their estimating or the importance of the marketing in there organization. Subject reported their responses to the four questions (o =0.719).Responses were recorded on a scale ranging from 1(no impact) to 5 (strongly impact). Improvements to existing products, processes and/or services Development of new products, processes, or services Improved sales and/or profitability Created or helped maintain jobs in your organization Human Resource Management Respondents were asked about their HRM management department in there organization. Subject reported their responses to the four questions (o =0.628).Responses were recorded on a scale ranging from 1(no impact) to 5 (strong impact). Enhanced your ability to recruit talented students Improved cooperation with scientists and technical resources outside your organization Improved cooperation with other Center members Administration and Operations Respondents were asked about their satisfaction level on their work regarding administrative and operations of organizations. Subject reported their responses to the four questions (o =0.534).Responses were recorded on a scale ranging from 1(no impact) to 5 (strongly impact). Communication between Center staff and your organization Center-related proposals, reports, and publications (e.g. quality and timeliness) 68 Hilbro International Surgical Industry: The Impact of Change Planning and development of the research program (e.g. new projects, changes in research areas) Management of ongoing research projects Project selection process Technology transfer activities Center fundraising (e.g. member recruitment, grant-writing) Management of intellectual property issues
We are conducting a research on Hilbro Intel surgical industry : A change Scenario kindly Fill the questionnaires to enable us in caring out our work success fully. We shall be grateful for you coordination.
During the past year, to what extent has participation in the Center contributed to the following technical benefits for your organization Research and Development No Impact Slight Impact Moderate Impact High Impact Very High Impact Not Applicable e Increased your general technical awareness and/or capabilities in this area
Accelerated or improved existing research projects
Stimulated new research projects
Contributed to development of intellectual property within my organization
Marketing No Impact Slight Impact Moderate Impact High Impact Very High Impact Not Applicable e Improvements to existing products, processes and/or services
Development of new products, processes, or services
Improved sales and/or profitability
Created or helped maintain
69 Hilbro International Surgical Industry: The Impact of Change jobs in your organization
HRM No Impact Slight Impact Moderate Impact High Impact Very High Impact Not Applicable e Enhanced your ability to recruit talented students
Improved cooperation with scientists and technical resources outside your organization
Improved cooperation with other Center members
During the past year, how satisfied were you with the following features of the Centers administrative operations Administrative and operations Not Satisfied Slightly Satisfied Somewhat Satisfied Quite Satisfied Very Satisfied Communication between Center staff and your organization
Center-related proposals, reports, and publications (e.g. quality and timeliness)
Planning and development of the research program (e.g. new projects, changes in research areas)
Management of ongoing research projects
Project selection process
Technology transfer activities
Center fundraising (e.g. member recruitment, grant-writing)
Management of intellectual property issues
Name (Optional).
Gender 1) Male 2) female
Age 70 Hilbro International Surgical Industry: The Impact of Change 1) 19-25 2) 26-35 3) 36-50 4) 51+