Fremantle Ports - Case Study Example

Fremantle Ports Introduction: “Fremantle Ports is a Western Australian Government trading enterprise responsible for strategic management of the Port of Fremantle” (Fremantle Ports, 2010). This paper aims at detailing various elements of this business. Firstly, the paper will detail the need for change within the company, following which a detailed discussion of the stakeholders and their interests will be included. This will be followed by the barriers of change that the company has been facing and how, the CEO of the company, Ms.

Sanderson has been dealing with the issues and overcoming the resistance for change. The paper will also include a SWOT analysis of the company as well. Need for Change: The organizational structure and culture of the company play an essential role in the success of every business. Fremantle Ports is a well developed business however the company has been faced with high levels of losses and financial difficulties (Beitler, 2006). The main reason the company had been facing this was the lack of coordination among the management and the employees and also lack of attentiveness to the needs of the stakeholders.

In the case of Fremantle Ports, the company has been noted to face major issues as the company had an organizational structure which was too vast and spread out. The organization had a large number of employees however the need for the resources is relatively much lower. The company requires a change in the style of the management and as clearly seen in the case study, it is to be noted that Sanderson clearly noted the need for a more ‘inclusive’ form of management. As has clearly been explained in the case, there was a clear lacking ability of the company in terms of meeting the needs of the stakeholders in order to keep up with the competitive advantage (Cennamo, Berrone, & Mejia, 2007).

The company definitely required the changes as there were ample resources that the company has, however the overall effectiveness of the company’s performance was relatively lower (Nelson & Aaron, 2005). Hence in order to ensure overall bettered performance, there was a need for change within Fremantle Ports. Stakeholders and Interests: The main stakeholders that have been focused on here in this paper are the employees, and the customers, i.e. ship – owners and shippers. These stakeholders form a major part of the business and have a major impact on the overall business and the success of the business (Lawrence & Weber, 2010).

In the case of Fremantle Ports, the customers play a major role in the overall business, as the port is the biggest and busiest general cargo. As clearly noted in the website, the port handles, “ More than $26 billion in trade annually 26.6 million tonnes of cargo annually ” (Fremantle Ports, 2010). Hence with such high levels of customers each year, the focus on the customers is a must. These customers have an interest in the overall business and the development of the company, as Fremantle Ports is responsible for the strategic management of the ports.

In case the company was to face any issues or have to shut down, then there would clearly be a major impact on all of the customers and their normal business to a great extent (Buytendijk, 2008). In terms of the employees of the company, it is clear that they have a major interest in the business. Both the business as well as the employees equally require each other and are dependent on each other. Here the employees would have an interest in the business as the higher the performance of the business, the better will be the benefits that the employees receive.

It is clear from the website of the company that there is a major importance given to the employees and their well being (Freeman, 2010). Hence it is evident that the employees will also be equally interested in the growth and development of the business. Barriers to Change: Change is a one of the most opposed and is never well received. It is important that the managers are aware of the different tools and techniques that can be implemented in the business to be able to manage the change and also keep a level of peace and unity within the firm.

There were several barriers to change within the company. Firstly, the attitude of the workers within the organization was one which followed, ‘them against us’ (The Case of Fremantle Ports , 2010). This clearly shows no level of cooperation between the company and the management, which led to a chaotic working experience. Also, the number of people becoming redundant also had a major impact on the company and the overall working of all employees, there by acting as a major barrier to change (Hiatt & Creasey, 2003).

Another major barrier in the company was the lack of enough funds and the negative image that the company had built for itself. However the main and most difficult barrier here was the lack of any clear strategic plans for the company and the lack of a set down vision and long term plan for the company. This was the biggest barrier as there was clearly no evident direction that the company was headed towards and this led to a lack of proper use of the resources as well as lowering levels of effectiveness of the employees and the company as a whole.

These factors to a great extent formed the major barriers for the company and the overall change as proposed by CEO Sanderson. Overcoming the Resistance: As has been noted in the case, “Sanderson became noted for her ability to develop a strategy, map out a vision and articulate it in such a manner that the participants – staff and port customers and the community - felt ‘included’” (The Case of Fremantle Ports, 2010). Sanderson has been faced with a number of issues and Sanderson very effectively overcame all the issues.

Firstly, she ensured that there is a form of ‘inclusive’ style of management within the company. This she believed would prove to be very effective for the company, and the sense of nurturing the needs of the stakeholders and ensuring that everyone has a say within the company led the company to be more effective and efficient (Kotter, 1996). It is also essential to note that Sanderson took a difficult method of dealing with the issues. Although she could leave the tough decision of the ‘human toll’, Sanderson still took up the task and although this was a negative impact for a number of the employees, she argued that it would not be right to retain inefficient employees.

She went on to make the changes and also led to two major restructuring within the company, very efficiently and effectively. Sanderson to a great extent proved it that, leaders act as change agents within organizations (Kotter, 1996). She was able to motivate as well as build the trust and confidence of the people within the organization. Sanderson’s qualities and changes that she made clearly highlight her style of leadership i.e. charismatic. With her charismatic leadership, Sanderson has clearly been able to bring about massive changes in the company (Luecke, 2003).

SWOT Analysis: Strengths High Brand Name High strategic power High levels of experience Resources in terms of employees, finances and also assets. First and last port of call Weaknesses Lacking clear vision and aims Lack of the positive, ‘Can – do’ attitude among employees Lack of proper port infrastructure to serve for both present as well as future trades Opportunities Improved online presence Online assistance to all customers Improvising on the current infrastructure and making it more technologically savvy Effective information systems Threats Growth in number of newer companies Increased technology available at other ports High competitiveness in terms of products and services Conclusions: In conclusion, it is clear that Fremantle has seen immense levels of growth and development post Sanderson taking up the position of the CEO.

The company has grown to become a Bronze price winner from being a company which was in the midst of almost closing down. CEO Sanderson has been the turning point in the case of this company and it is evident that the company has its visions and values more clearly and effectively set down (Fremantle Ports, 2010). In conclusion, after having studied the company and the overall performance, it is evident that one of the major factors that led to the success of the company and the overall development of the company was CEO Sanderson, who with her exceptional strategic moves and well researched and implemented decision making, has been able to effectively, and efficiently, make the company “from a loss-making, inertia-clogged government agency to a profitable and innovative organization” (The Case of Fremantle Ports, 2010).

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Retrieved September 30, 2010, from http://www.fremantleports.com.au/About/index.asp Fremantle Ports. (2010). Port at a Glance. Retrieved October 2, 2010, from http://www.fremantleports.com.au/About/Port.asp Hiatt, J., & Creasey, T. (2003). Change Management . Prosci Research. Kotter, J. P. (1996). Leading Change. Harvard Business Press. Lawrence, A., & Weber, J. (2010). Business and Society: Stakeholders, Ethics, Public Policy . McGraw-Hill/Irwin. Luecke, R. (2003). Managing Change and Transition .

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