Assessment 1 UTS Change Management

$10.00

Category:

Description

Assessment 1 UTS Change Management

Assessment 1

Organisation: Grab (previously GrabTaxi)

Introduction

Whilst pursuing their MBA at Harvard Business School, Anthony Tan and Tan Hooi Ling came up with the idea of creating a ride-hailing company that would later be known as GrabTaxi. This idea was first developed for a college project that earned Anthony Tan and Tan Hooi Ling $25,000 prize money in a pitch contest that was organised by the school. Grab began as a solution to combat the chaotic and unorganised transport sector of the southeast Asian countries, however over the years it has forayed into numerous consumer service sector such as hotel booking, financial services, on-demand video platform, ticket purchasing, grocery shopping and food delivery service. Transforming from a company that offers a single consumer service, to a on-demand multi-service platform provider requires an incredible amount of organisational change management. These organisational model changes were first pioneered by Chinese multinational conglomerates such as Alibaba and Tencent.

The scope of this report is to explore the key change initiatives implemented by Grab, as well as the methods that the company used to manage and overcome the barriers to change. It will provide a brief background to the change management initiative of Grab and explain the key pressures that influenced the need for organisational change. An analysis of the organisational change management will also be explained, including the effectiveness of certain change management models and the company’s effectiveness when responding to certain external pressures and drivers.

The brief background to the change management initiative

Over the course of 7 years, Grab expanded its mobile-based ride-hailing services to 8 countries in the South East Asian region. Competing with other major competitors such as Uber and Gojek was incredibly difficult however Grab solidified its position by acquiring Uber’s entire ride-hailing service in the south east Asian region. With such a large customer base, as well as the profits and funding from investors, the company decided that it needed to venture into other sectors. Grab began by increasing its ride-hailing services to more than 10 on-demand ride-hailing services such as taxis, private cars, shuttle services, bicycle sharing, motorbikes, etc.

After successfully becoming one of South-East Asia’s fastest growing tech companies, Grab saw opportunity in other consumer service sectors. In order to expand into other consumer service sectors, it rebranded from GrabTaxi to Grab. One of the first additional consumer service sectors that Grab ventured into was financial services. In 2016, Grab launched GrabPay which is a QR-code based mobile payments service. This service is available in Singapore, Indonesia, Philippines, Malaysia, Thailand, and Vietnam and allowed consumers to pay for Grab rides and also could be used while making in-store purchase, food delivery, and fund transfer. In addition to the mobile payments service, Grab also launched its loan and insurance service which provides loans to small to medium enterprises and micro-insurance for drivers in Singapore. In order to accommodate for the organisational change, Grab created a new unit of the organisation called Grab Financial Group. This change required an immense amount of resource allocation, planning and recruitment of experienced experts in the financial sector of the south east Asian region. The Grab app also needed to be overhauled, to showcase its users the new consumer services that Grab was offering. The number of employees, also known as Grabbers, has increased exponentially as the company penetrated different customer service sectors. This expansion meant that the company had to develop new offices across multiple countries and relocate its headquarters in 2019.

......

Assessment 1 UTS Change Management
Last updated: Feb 2024

Page 1

e for drivers in Singapore. In order to accommodate for the organisational change, Grab created a new unit of the organisation called Grab Financial Group. This change required an immense amount of resource allocation, planning and recruitment of experienced experts in the financial sector of the south east Asian region. The Grab app also needed to be overhauled, to showcase its users the new consumer services that Grab was offering. The number of employees, also known as Grabbers, has increased exponentially as the company penetrated different customer service sectors. This expansion meant that the company had to develop new offices across multiple countries and relocate its headquarters in 2019.

In order to become an everyday super app, Grab launched other trending consumer services such as food delivery and grocery shopping and delivery services. Both these concepts were already trending rapidly in other regions of the world and Grab knew that it could implement the same services in South East Asia. GrabFood grew exponentially after Grab acquired UberEat’s operations in South East Asia.

The key pressures/drivers influencing the organisational change.

Competition

The first and most significant driver to Grab’s rapid organisational change initiatives is the influence of competitors. Go-Jek is commonly regarded as Grab’s closest competitor due to the fact that both companies began as a ride-hailing company has since expanded their operations into different consumer service sectors and are referred to as Super Apps. Both Grab and Go-Jek have been battling a back and forth battle to become the supreme “Super App” in the South East Asian region of the world, in reference to (Soemantadiredja, Vitayala and Hermadi, 2015).

Before acquiring Uber, Grab was struggling to make a profit as Uber and Grab were competing for the market of Southeast Asia. Both Grab and Uber were bleeding money as both competitors could not survive whilst the other was operating in the same market. One thing that Grab had over the already successful behemoth, Uber, was that was able to cater more to the local market. With Uber introducing UberX and UberPool, Grab was providing a cheaper and more affordable option to the market which was essential due to the lower income levels of the Southeast Asian region, according to (Cheewathanakornkul and Jiratchot 2018). Uber eventually was acquired by Grab, and all of its operations including the assets, buildings, human resources and drivers were given to Grab.

Investors and Stakeholders

The “Super App” model is evolving faster in the South East Asian Region, than it is growing anywhere else in the world. Due to this fact, large conglomerates and huge organisations such as Softbank Group, Toyota Motor, Didi Chuxing and Microsoft have all invested significant amounts of money in Grab. Grab’s most recent funding round values it at more than $14 billion, consequently making Grab Southeast Asia’s most valuable start up company.

Grab’s ability to prevail over the giant multinational ride-hailing company Uber due to the massive backing from…

...

Assessment 1 UTS Change Management
Last updated: Feb 2024

Page 2

You've reached the end of your free preview.

Want to read all pages?