2.

0 Introduction

AEON Co., (M) Bhd. was started from Jaya Jusco Store Sdn. Bhd. In 15 September
1984, the first JUSCO store was established in Malaysia. AEON MALL is a specialist shopping
mall developer. AEON philosophy of putting the customer first has guided their continuing
efforts to create malls that enhance the quality of life, stimulate local economic activity and
contribute to community life and culture. AEON cooperates in the building of communities that
are exciting, fun to live in and vibrant. AEON will use their skills to bring new value and
attractiveness to communities, society and customers.

2.1 Company Background

How it all started in Malaysia:

Jaya Jusco is set up in Malaysia in 1984. Jaya Jusco Stores Sdn. Bhd. Was establish in
Malaysia, in response to the Malaysian Prime Minister Dato’ Seri Dr. Mahathir’s request to help
modernize the retail industry in Malaysia using the world’s most advanced management
expertise.

Dr. Mahathir believed that the modernization of the retail industry was crucial for the
country’s economic growth. Prior to this, in 1983, Dr. Mahathir visited Tokyo and meet the
JUSCO Co., Ltd. President, Mr. Takuya Okada to discuss the proposition of bringing the
JUSCO name to Malaysia. The talks ended on a positive note and Dr. Mahathir invited JUSCO
to set up store in Malaysia. All this was part of Dr. Mahathir’s Look East policy for Malaysia.

Following this, a joint venture company was established in September 1984. There were
three parties involved: JUSCO Co., Ltd., Japan, Peremba, a leading government owned
Property Company and Cold Storage, a premier supermarket chain store.

JAYA JUSCO’s aim was to grow with the people of Malaysia through the transfer of
expertise from Japan to Malaysia and human resource development, two factors which would
contribute greatly to the progress of Malaysia.

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Chronology:

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2.1.1 Logo of the companies

2.1.2 Description of the logo

Pursuing peace, respecting humanity, and contributing to local communities, always with
the customer’s point of view as its core.

The word AEON has its origins in Latin root meaning “ETERNITY”. The customers’
beliefs and desires comprise the central core of AEON philosophy. At AEON, eternal mission as
a corporate group is to benefit their customers, and operations are thus customer focused to the
highest degree.

“Peace”: Aeon is corporate group whose operations are dedicated to the pursuit of

peace through prosperity.

“People”: Aeon is a corporate group that respects human dignity and values personal
relationships.

“Community”: Aeon is corporate group rooted in local community life and dedicated to

making a continuing contribution to the community.

2.1.3 Company missions, visions

Missions

To provide a wide range of consumer financial services that best meet customer needs
and committed to serve customers to improve their lifestyles through AEON products and
services. AEON’s mission is always to be contributed to the customers. AEON insist to a strict
code of corporate ethics and at the same time, engage in activities which contribute to society.

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 Visions

To establish AEON as a leading retailer brand in consumer finance and service industry
by providing excellent customer service.

2.1.4 Organization charts

Board of Directors

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Corporate Governance:

Directors and Auditors

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2.1.5 Product and Services

Selling a broad range of goods ranging from clothing, food, household goods, other
merchandise and shopping centre operation. Maintain high standard level of their food as well
environment.

2.1.6 Activities in the Department of Changes

The principles and concepts of management of AEON is division of work. This principles
tells us that as far as possible the whole work should be divided into different parts and each
individual should be assigned only one part of the work according to his ability and taste rather
than giving the whole work to one person. AEON Co. (M) Bhd. applied this principle to manage
organizational change from Jusco Shopping Centre to AEON Co. (M) Bhd. where all department
need to change since Aeon Credit Service combined together with Jusco Shopping Centre on
12 January 2012. When a particular worker in AEON Co. (M) Bhd. performs the same job
repeatedly such as in marketing department, financial department, leadership department and
so on will make the job an expert in doing that particular part of the whole job for them.
Consequently, the benefits of specialization will become available in AEON Co. (M) Bhd. For
example, AEON Co. (M) Bhd. gets an order for promotion, they have five to six departments
who will do their own job for the promotion.

The principle of division of department applies not only to the workers but also equally to
the managers and leaders. An example, if a manager is tuned to work on the same kind of
activities for a long period of time, he will certainly be an expert in his particular job.
Consequently, more benefit decisions can be taken in a comparatively less time by him.

2.1.7 The change process

Business processes must support business needs is the one of the principle and
concepts of management. Every process will be increase organizational value by supporting the
business vision and supporting strategies.

i) Changing structure

Changing structure includes any alteration in authority relationships, coordination

mechanisms, degree of centralization, job design, or similar organization structure variables.

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 Jaya Jusco Stores Bhd. (Jusco) is being rebranded as AEON Co Bhd. (AEON)
with a new tagline “AEON Enriching Your Lifestyles’ and is planning further expansions.

ii) Changing technology

Changing technology are continuous improvement initiatives on their products

and services, which are directed at developing flexible processes to support better quality
operations and also their employees committed to continuous improvements are constantly
looking for things to fix.

iii) Changes in people

Changes in people refer to changes in employee attitudes, expectations,

perceptions, or behaviors.

2.1.8 The change tools

i) Training

Provide training to employees which are need in new technology and new
methods.

ii) Education / training

Provide proper employee education and training is needed which are need in
problem solving, decision making, negotiation, statistical analysis, and team-building, so they
can able to analyze and act on data.

iii) Reward system

Reward system for those improvements.

2.1.9 Benefit of the change to the Organization

i) Changing structure

These structural components give employees the authority and means to

implement process improvements. For instance, the creation of work teams that cut across
departmental lines allows those people who understand a problem best to solve that problem. It

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can help cross-functional work teams encourage cooperative problem solving rather than ‘us
versus them’ situations.

The research firm noted that the rebranding exercise was part of the company’s
strategy to standardize its corporate identity, which involves the introduction of a new brand
name, AEON, a new tagline “AEON Enriching Your Lifestyle”, and AEON membership cards.

Enriching Your Lifestyle: Guided by its “Customer First” philosophy, the

company’s acute understanding of the target market needs, aided by optimal product-mix,
AEON surpasses consumer expectations and enhances their experience every time they shop.
All this is encapsulated in the tagline “AEON Enriching Your Lifestyle”.

ii) Changing technology

Changing technology encompasses modifications in the way works is done or the

methods and equipment used. Most managers in AEON Co. (M) Bhd. deal with changing
technology are continuous improvement initiatives on their products and services, which are
directed at developing flexible processes to support better quality operations and also their
employees committed to continuous improvements are constantly looking for things to fix.

iii) Changes in people

The human dimension of change requires a workforce that is committed to

quality and continuous improvement. AEON Co. (M) Bhd. provided proper employee education
and training is needed which are need in problem solving, decision making, negotiation,
statistical analysis, and team building which there can able to analyze and act on data.

2.1.10 Challenge faced by organization

i) Executives take the time to communicate the vision to all of the organizations
employees in small groups of people.

ii) Created and maintained a superior change team. A superior change team will
effectively create a plan for change, identify the processes the change and acquire support for
the change effort of organization at all the levels. On other word, AEON plans for continuous
improvement.

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 iii) When changes in the customer’s lifestyle change, that is means that the trends
would also changes.

2.1.11 Strategies adopted by the Organization

i) AEON is striving to achieve long-term prosperity and growth by building excellent

relationships with its customers, shareholders, business partners, local communities and
employees while continuing to offer products and services that satisfy customers.

ii) Aligning the goals of a change effort with their business strategy. To accomplish
this, AEON clearly define its structures management systems and guiding principles, policies
and procedures.

3.0 Literature Review

4.0 Findings and discussions

5.0 Conclusions

In conclusion, three organization management principles has identified, which are vitally
important to organizing change. Furthermore, we have also analyze the company’s practices
and operations in managing organizational change. As a result, organizations should adopt
these change management principles and practices based on their business needs. To promote
success, an organization should address the three identified critical processes which are
achieving executive commitment, creating a vision of the future organization and communication
that vision to the organization.

In addition, a select group of people having the necessary skills and personal
characteristics, should lead software process improvement efforts. Organizational changes
because of uncertainty, habit, concern about personal loss, and the belief that a change is not in
the organization’s best interest. There are need many techniques for managing resistance to
change included education and communication, participation, facilitation and support,
negotiation, manipulation and co-operation. Last, the important part which is human resource
variables. It included high commitment to training and development, high job security and
encouraging individuals to be idea champions.

6.0 Recommendations

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 AEON Co. (M) Bhd. should perform annual process assessments and benchmarks. This
is because annual process assessments help to identify areas for process improvement,
whereas benchmarks helps to identify where an organization stands relative to an industry.
Based on each assessment and benchmark provides a snapshot of an organization’s
capabilities, which should be the basis for determining whether it needs to change and the value
of such change. Furthermore, auditors can easily determine whether an organization performs
assessments and benchmarks by verifying the existence of reports documenting their
execution. Besides, AEON Co. (m) Bhd. should analyze an organization’s software portfolio,
which is the total number of applications it owns. A portfolio analysis include counting the
number of copies of each application, it can examining the status of each application in terms of
detect levels, and identifying the overall importance of each application.

AEON should know the role each application plays in the future of the enterprise. By
understanding the software tools that an organization uses, it can identify those areas that have
the greatest need for tool support, as well as where it can derive the greatest benefit tool use or
change. Instant, such understanding will influence the training activities of an organization too.
In other word, AEON should listen to the customer also. An organization must capture the
needs and desires of its customers what it must do to satisfy them not only for short term, but
for future. Since customer input helps to improve the products of organization develops and the
most important is processes that address their concerns, auditors should examine that
documentations exists that verifies that the organization obtains and uses customer feedback
on a periodic basis.

AEON should align the infrastructure. The successful change requires that AEON align
its human resource, information, financial, organizational and other support systems around the
core business processes. Organizational structure should be an operational response to an
organization’s mission and strategy. Thus the reporting relationship among an organization’s
business units should represent its actual workflows, it should help them establish and develop
the necessary competencies by providing appropriate training. If not, old practices will render
new organizational changes meaningless and a business operating units will not function
efficiently or effectively. Thus, it is vital that auditors identify the workflow between business
units whether the organization’s infrastructure matches it, and also personnel within those
business units have the skills to effectively and efficiently perform their work.

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 AEON should foster a creative and innovative environment. AEON must be
systematically and deliberately identify on new ideas and ways of doing things better. This
requires organization’s to challenge the basic assumptions on which its organization has been
built. Due to this, AEON change these assumptions requires creativity, which is the generation
of ideas and alternatives and innovation which is the transformation of those ideas and
alternatives into useful applications that lead to change and improvement. In particular, an
organization must always challenge assumptions, create solutions and look at problems from
different perspectives. As a result, auditors should objectively assess how experimental an
organization is when conducting their business.

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REFERENCES

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