HYBRID MODEL OF CHANGE

MANAGEMENT STRATEGY: A
CASE STUDY OF TAPAL TEA
PAKISTAN BY: Ghulam Murtaza Kehar (E17-07)
Gul Muhammad Shaikh (E17-08)
INTRODUCTION:
☺ The journey of Tapal's remarkable success is the combined efforts of three dynamic generations of the Tapal Family.
In 1947, Tapal started out as a family concern under the personal supervision of its founder, Adam Ali Tapal. Against
tough competition Adam Ali's unique blend, later named Family Mixture, became a hot favorite and eventually the
largest selling brand in the unorganized tea market.
☺ The quality of Tapal teas soon became legendary and people from all parts of Karachi started lining up at the outlet to
purchase tea.
☺ The company continued to grow under the management of the founder's son, Faizullah, A. Tapal, today tapal is
managed by the founder’s grand son. He was studied from abroad and when he came to Pakistan he introduce the
professional management and unique production ideas. He is well know taster and tea specialist, he introduced new tea
concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan.
His efforts strengthen to the tea company.
☺ Tapal is the largest, 100% Pakistani owned tea company in the country. Tapal tea is one of the first companies in tea
industry who got the ISO-9001 quality standard, a symbol of high quality. Tapal company main focus is quality. They
never compromise on quality
CONTINUE…..
☺ The total retail market of black tea was estimated at 140,000 tons i.e. Rs. 35 billion in
2001. The retail market of tea is growing at rate of 2.6 % annually. 95 % of tea
imported from Kenya comprised of leaf tea and dust tea. In Pakistan consumption of
tea in urban areas is 40% while 60% contributed by rural area. Pakistan is the 2 nd
largest tea importer in the world after England.
FOUR PHASES OF CHANGE MANAGEMENT
APPROACHES:

Tapal Tea focused on four phases of change approaches to address the

issues and problems that an organization suffered:
☺ Mission Change.
☺ Strategic Change.
☺ Operational Change.
☺ Technological Change.
MISSION CHANGE:
☺ The conventional Tapal tea had a vision and mission of earning profit like every other
company. In the last decade the focus of mission had changed its direction so that the
clear and defined message should be conveyed to all stakeholders.
☺ They understand the importance of growing need for change in the overall organizational
structure without any mission is impossible. Also trust in each other, outstanding quality,
passion for creativity, leadership together everyone achieves more.
☺ Product can be created in a way that does not harm human’s environment.
☺ The focus is not to become a benchmark for the national companies but also to be
recognized as ‘Innovative market leader’ in terms of creativity, ethical and social values
and responsibilities, an inspiring leadership, and complimenting the core areas of
business.
STRATEGIC CHANGES:
☺ A strategic change is a change in how the company tackles a problem initially by strategy
and policy development resolving Research & Development (R&D) - the innovators in
order to make its tea brand unique is quite difficult for any organization. R&D department
seems to be prominent among very less alternatives. Tea is widely drunk.
☺ Tapal is also the 1st national tea company to export tea to the UAE, Canada and USA. This
is again a pioneering step towards increasing value-added exports and is also a fast
developing source of foreign exchange for the country. Tapal Integrated Management
Systems (TIMS) processing perfection, competitive landscape, sales and time management
strategies.
☺ After effects of the implementation of the above mentioned strategies with respect to
change, drastic results are observed in net sales of 26 billion Rs/- in 2013. No wastage of
resources in Product development by Recycling, reuse and reduce policy for production
department.
OPERATIONAL CHANGES:
☺ An operational change is a change in the structure of company. Tapal restructured by opting
decentralized management, planning and performance management, training and development
(in-house and external), total head counts and business units, motivated work force, improved
management control, rightsizing and hiring, working under one roof and organizing structure
from conventional ‘Seth’ to diversified system. Due to restructuring of the whole organization,
Tapal adopted a diversified and people oriented culture like any multi-national with
decentralized management system. Top management including stakeholders’ view and
employees’ participation in every decision is considered valuable. Shareholders and
stakeholders are more like business partners. Focus on Team-based structure having a cabin
system (flat) in the organization that represents equality and sense of participation and
confidence among the employees working under the same office, same environment and same
single roof. Spending on training and development of employees and keep monitoring by
performance management system that is implemented for about 3 years. Goals are shared and
communicated properly to every employee by appropriate channel of communication by
meetings and conferences that helped top management to share their information and vision to
other employees keeping the transparency between the operations and processes allowing open
discussion session with employees to be clear in their motive of benefitting the organization.
TECHNOLOGICAL CHANGE:
☺ Worldwide IS (Information System) is facing many new challenges as it increasingly tries
to align the automation platform with new business needs. Evolving business models and a
constant changing competitive landscape require an increasing array of new IS services.
☺ With its realization IS department of Tapal has fixed a four point agenda for its long-term
orientation. These are process improvement / efficiency, leanness in operations’ model for
faster decision making, consolidation of information platform, resilience & scalability to
cater to increasing computing requirements and exceptions. Strategies for growth to vary
from company to company, however bringing new products to market, capturing
additional market share via new distribution channels, and diversification are few specific
ones in FMCG arena. Meanwhile, companies are challenged by increased competition
from globalization and most notably increasing customer expectations to maintain existing
market share.
CONTINUE…..
☺ With Tapal’s business scenario coinciding more or less to these forces/challenges, to remain
relevant to changing circumstances and respond proactively is a challenge for IS. A
customer Complaint management System was launched which incorporates complete
overflow of how Tapal manages it customer complaint process. The relevant data reside
centrally with capability of efficient follow-ups and reliable history maintenance.
RECOMMENDATIONS:
☺ According to the study and analysis conducted in overall change management process
of Tapal tea, a ‘Hybrid change model’ is suggested which fits best on the activities and
practices. As Tapal is integrated organization their whole organization depends on every
single department. The interconnection and interrelated operations and strong that they
cannot run without each other. Dependency on one another systems acquisition,
development and integration makes them vulnerable.
☺ If one department is affected or slowed down, the others are also affected by certain
hiccup in the processes and the systems. Looking at the ongoing change and all
interrelated factors of organization that are encountered, Tapal has applied McKinsey
7S Model of change (Waterman, Peters, & Phillips, 1980) along with 5-Star Model of
change (Galbraith, 2005) which is ‘Hybrid Model of change’. Running and applying
both parallel to each other as both models have similar components to consider while
bringing a drastic change to organizations.
CONCLUSION:
☺ Tapal Tea started as a private and local company with a single product in the market that
gained profit of 6 billion rupees in 2005. With the step by step change implementation
process of the overall re-structuring of the organization and the deep market analysis, in
2009 it has the highest sales (volume) than any other tea product. The whole change process
was implemented in one to two months of time period. Before the change, historical rate of
Tapal in terms of volume was 3.075% and after the change initiated the current rate of
volume is 3.9% yearly. No victory is forever, No failure is permanent. Once you are
victorious, you have to maintain and sustain your victory by never giving up. Re-
engineering does the same. Today Tapal has the largest market share as compared to its
competitor ‘Lipton’ in Pakistan and is the only local privatized company that has grown
four times of its own than any other company in Pakistan. (HR Manager, Tapal Tea).
THANK
YOU…