Hankook tire global business - Free Essay Example

Sample details Pages: 10 Words: 2850 Downloads: 8 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? I. Company Analysis 1. Basic Overview The January 2010 issue of Modern Tire Dealer magazine published the 2009 sales data for the global tire industry, and Hankook Tire placed seventh on the list for the fourth consecutive year since 2006. Sales have grown an average of 13.9 percent annually for the past decade, bringing the cumulative rate to 133 percent for the period. More than 70 percent of the revenue is earned outside Korea. 2. Financial Overview Hankook Tire Co. posted improved 2010 earnings year-on-year with its net profit reaching 424.8 billion won ($381 million) last year, up 21.1% from 350.8 billion won a year earlier. The overall global increase has come on the back of â€Å"brisk sales in both domestic and overseas markets.† Sales jumped 19.3% to 3.35 trillion won, and operating profit rose 5.5% to 367.5 billion won. In a separate statement, the company said its consolidated sales, including figures from its overseas operations, reached 5.36 trillion won last year with operating profit coming to 585.8 billion won. According to the annual report the company is targeting 6.06 trillion won in global sales in 2011. Don’t waste time! Our writers will create an original "Hankook tire global business" essay for you Create order 3. Organization Structure Hankook tires organizational structure is matrix structure. Under Global CEO, there are Global Staff (Head quarter by functional Division) and Regional Headquarters (Head quarter by Geographical Division). Both Functional division and Geographical division have the same level of Structure in Global CEO [ Table 1-1 ] Under Global CEO Sourced by Hankook Tires annual report, 2010 Global distribution network consists of four regional headquarters and 80 subsidiaries sales offices and its products are sold worldwide in about 180 countries. 4. SWOT Analysis Strength Overall, a good financial statement A positive brand recognition on the world market (high quality + low price) A healthy labor-management relations The worlds major tire factory and the proper distribution channels to market demand, building Weakness Low investment than expected in the industry (Total asset increase, non-current ratio lower than industry average) RE market is relatively weak compared to the OE market Opportunity Domestic auto demand increases due to tax credited for old vehicles and hybrid vehicles. After the global financial crisis, global tire price competitiveness is getting higher. Chinas tire market increases due to chinas auto market growth Threat From 2009, the prices of natural rubber and synthetic rubber (raw material prices due to the high price elasticity) is rapidly rising II.Industry Business Analysis 1. Industry Environment analysis The global tire market accounted for approximately US $140 billion and 1.25 billion volumes in 2008, according to Research in Tire. While the worldwide tire industry is still largely driven by the well-known multinational companies (in size order); Sales amount of Bridgestone, Michelin and Goodyear are 46% of total sales for top 75 ranked companies (2008 years). Sales portion (of world top 11th to 7th Tire companies) increased to 31% in 2008 compared to 20% in 1998. Its because the subsequent tire companies based on the high growing market such as China, Taiwan, India, and Russia are getting larger. On the other hand, the sales portion of 3 Korean companies in the world market steadily increase in 2010s and have taken 5~6% from 2006 year. Tire Industry has the entry barrier such as huge a capital injection, technology competition, brand establishment, and distribution channel, so it is formed as oligopoly in each nation. But top raking companies has the competitive in major mark et of North-America and Europe. This market is divided into following basic categories: OE (Original Equipment) which providing to Car manufacturing companies, and RE (Replacement Equipment) which providing to tire distribution. RE market size is 3~4 times bigger than OE market. Compared to OE sales which are affected by the volume of car production, RE has stable consumption market in proportion to the registered number of car and average operating mileage of car. [ Table 2-1 ] World Major Tire Companies 2. Competitor analysis 1) Michelin Strength 100 years of tradition with the highest international brand awareness and increase reliability, high technology based on more than 10% of homeopathic products are highly priced. Michelin recently after driving it to the driver of a flat tire platform developed by us after a run on the world market has raised more than 2%. By successful overseas, and currently has 57 global offices with two thirds of the total production is done overseas. Weakness Michelins new products are released once every two years. This once in six months compared to other companies to launch new products launched at longer intervals tends to slow the market responsive. 2) Kumho Tires Strength Color tires, aircraft tires, racing tires, passenger tires, truck and bus tires, industrial tires, and a variety of excellent products and sell to the general consumer confidence and job-oriented consumers are demanding. In addition, through the diversification of high-performance products to market is increasing grip. In addition, the current four car race competition among the three has been supplied by Kumho Tire. Weakness Car racing is not an active participant in the company as an official support is simple, has done. Also entered the Chinese market early in the shift is not performed correctly, but not localization, market share is very low. 3) Nexen Strength Based on stable labor-management relations for 3 consecutive years of financial tire manufacturer has the best financial structure. In addition, the price is so competitive. Weakness Both low technologies value-added market shares due to the low productivity focused mainly the domestic ma rket. But overseas sales by focusing on profitability are difficult to expect. III.International Business Strategy Analysis 1. Ideal International Business Strategy Analysis Pressure for global integration Globalization of markets: Basic needs of customers are not quite different globally. The convergence of customers for an automobile tire makes tires makers go global. Tire industry has similarities in products, customers, and even operating structures. The objectives of tire makers are mainly how to focus on minimal costs and maximum value. Globalization of production: Standardization of tire drives the globalization of market. Since tire industry is typical the manufacturing industry, it can benefit from economies of scale and cluster effects at specific locations such as Hungary aiming European market. Pressure for local responsiveness Customer divergence: Customer and country divergence are middle due to following reasons. Since a tire is complementary goods of an automobile, a tire market is strongly affected by an automobile market. In developed countries, there is no big pressure for local responsiveness because economic conditions and infra structures for a tire market are quite similar. However, in developing countries such as BRICs the gap between rich and poor are wide and road conditions are very different. It means that Hankook tire has to figure out what the customers want. Host government policies: A tire industry is perfectly related to an automobile industry and many local companies try to enter its home and expand their business. Therefore, host government such as China might be sensitive and hostile to foreign company. Therefore, it might be a good way for Hankook tire to choose Global Strategy or Transnational Strategy. 2. What Hankook Tire did? 5 RD Centers: Korea, U.S.A, Germany, China, Japan 5 Factories: Korea(2 factories), China(2 factories), Hungary 4 Regional headquarters and 80 subsidiaries Sales office Sold its products to 164 countries Hankook Tire is steadily improving its image as a premium brand through aggressive global marketing and continuous research and development efforts. 3. Hankook Tires entry to other countries Internationalization Phase and Entering Countries 1) Beginning phase (1981-1998) Established Hankook Tire America Corporation (1981) Established its Beijing branch in China (1994) Established Europe Technical Center (ETC) (1996) Established China Technical Center (CTC) (1998) 2) Expansion phase (1999-present) Completed Jiangsu and Jiaxing Plant in China (1999) Opened Europe Distribution Center (EDC) in the Netherlands(2001) Hungary Plant begins production(2007) 100 millionth tire produced in China(2007) Detailed information by main countries 1) China A. Objectives of Internalization To create demand in the fast growing market with high infinite potential Expand its tire business in China with increasing automobile industry B. Consideration for Site Selection Economic: Continuous double digit growth. Explosion of middle-high income consumers Social/Political: Communist country geared toward open policy. Easy to enter due to its similarity to Korea in terms of social, cultural and geographical aspect Tire Industry: World largest tire manufacturing company (over 337 million yearly, *source -Tire Business), World highest growth rate on domestic market sales C. Entry Mode Founded Beijing branch in 1994 and exported Establishment of Joint-Venture with Chinese Company which is located in Jiangsu and had a good relationship with them Established China Technical Center in 1998 and completed Jiangsu and Jiaxing plant in 1999 Expansion of distribution channel in 10 major cities Roll-out of TSt ation one-stop auto service concept in Shanghai in 2007 Operating 40 TStations and 400 Tire Towns in China D. Outcome Recorded 20% of market share which is 1st in China and 1.4 trillion won of sales revenue in 2010 Supplied its products to more than 30 automobile companies in Chinese market such as Volkswagen, PEUGEOT, Ford and NISSAN [ Table 3-1 ] Hook Tires ability of production and plan for expansion Home Abroad Total Plan for expansion 4,300 China:   2,800 7,600 Build additional factories in Hungary (+500) Hungary: 500 Establish 3th factory in China and 1st one in Indonesia Making a plan to produce 110 million a year until 2014 Sourced by Hankook tires IR 2)Hungary A. Objectives of Internalization Cost Reduction for Distribution and Manufacturing Hungary is a good place for first foray before expanding its entry into Western Europe countries B. Consideration for Site Selection Economic: Risk minimization of current exchange rate among EU countries Social/Political: Reduction of possible trading disputes and not imposing antidumping tariffs among EU countries Tire Industry: Europe is taking 30% of world tire market C. Entry mode Established of Europe Technical Center in 1996 and began Hungary Plant in 2007 Decided to build additional two more factories in 2010 to be able to manufacture 12 million per year 4. Evaluation and key learning from previous case The tire industry is multinational in nature; therefore, production plants are situated in virtually every geographic region, particularly in North America, Europe, Japan, other Asian countries. Strategic supplies of natural rubber integral to the production of certain OTR tires are situated near the equator in many of the Asian countries, including Malaysia, Indonesia, Thailand, India, and China. Large global tire plants in many regions of the world have the capability to produce a variety of tires including passenger car, truck and bus, and certain OTR tires, variably dependent upon logistics, demand, and affiliation. In this competitive industry, Most of Hankook tires international business turned out to be sustainable. Especially, the success in Chinese market is meaningful in respect of Hankook tire has been leading other competitors with high quality strategy operating Tire Town and differentiation strategy managing premium store TStation. The next step was to expand it s market to Europe, America, and other countries. To be successful in these new markets as they did in China, Hankook tire should analyze the target market thoroughly and implement appropriate strategies optimized to each market. IV. Companys TO-BE Analysis 1. Should Hankook Tire really go to global market? As shown above, Hankook Tire has been tried to expand their business to global for a long time and seems to place good position in China market. With the effort, the company shows possibility to be a global big player with competitiveness. Thus, they need to keep their global strategy and to expand global business further. Before the expansion, however, Hankook Tire should scrutinize below questions. What are the core competitive points of Hankook Tire? What were the key success factors of Hankook Tire for China market? Is the success factors are applicable to other markets such as Europe and America? 2. Does Hankook Tire still have the chance globally? Most of all, the critical success factor of globalization of Hankook Tire is successful penetration into China market based on competitive price with better quality, preoccupancy, and well-established brand value. Tire industry has been threatened sharp rising of the price of raw materials and it results short-term shortfall of profitability. Global top-tier players are suffering from the situation of increasing price of natural rubber under lower demand of tires and do not show sufficient capacity to prepare for business recovery. Whereas, Hankook Tire maintains relatively higher profitability than other global top-tier competitors and it may give good opportunity for the company to be grown by ‘survivor effect. Moreover, the good profit structure makes Hankook Tire offer good suggestion to dealers. There is no doubt that it is the right time for Hankook 3. Our suggestions Hankook Tire ranked 1st place of PCR (passenger car radials) with 30% market share in China, which is one of the biggest potentials, and marked 7th in worldwide tire market. However, strong global competitors are continuously expanding their investments in China market and thus the competition is getting much fiercer. Furthermore, the price of raw materials is going up and it does deteriorate the operation profit. Therefore, we would like to suggest three strategic pillars for Hankook tire to acquire competitive edge of global competition and to explore new chance for the growth as below. 1) Reinforcement of the leadership in Emerging market focusing on China Aggressive penetration and expansion strategy of Hankook Tire for emerging markets is most appropriate to broaden the gap with following competitors at this point. Enhance competitiveness in Original Equipment (OE) tire market through strategic alliance with one of the big automobile companies such as Hyundai-Kia motors which is the 2nd player of China automobile industry. Preoccupy upcoming explosive market of Replacement Equipment (RE) tire through technology driven, value added products such as UHP(Ultra High Performance) Expand T station business, a new distribution channel which makes high profitability through direct sales to consumer, provides highly qualified service and image, and enables CRM. Develop localized tire products considering Chinese specific culture, weather, and economics. For example, customized tires for reckless driving and overloading vehicles. Diversify product portfolio from tires for PCR to bus, truck, and light trucks. 2) Expansion of growth opportunity in Developed market such as America US market registered cars are 250 million and among this newly producing car only shares 13 millions. It is the biggest RE tire market preferring premium brands. Hankook Tire started to export 1986 and 2010 sales revenue reached US$ 1billion. Market share of Korean tire companies in US market gradually increased from 2.5% in 2000 to 8.9% in 2009. It is primarily driven by increased preference to Korean brands of US dealers. Korean brands demonstrate significant higher market shares than wholesalers distribution rate and it provides the dealers higher profit. Moreover, top-tier players still maintain oligopoly but decrepit facilities and inefficient cost structure let disappear advantages of local production. Closing of the factories decreases capability of production in US and thus the amount of export tends to increase continuously. Lastly, as US government adopted a protectionist stance as evidenced by the imposition of an additional 35% safeguard tariff on Chinese-made tires, Ha nkook Tire should handle the rapidly changing business environment with appropriate countermeasures at the right time. To leverage the above opportunities, we would suggest expanding the business with premium tires based on local production and efficient supply chain management (SCM), getting competitive edge in North and South American area. Build a new factory in Mexico and produce two separate line products; Mexico has several advantages as supplying headquarter for North and South America: Free trade with US, lowest labor cost among North America countries, and geographic advantage for effective supply between North and South America. Two separate line products may satisfy different needs of the customers: technology-driven, premium tires for North America and cost effective, low price tire for South America. Accelerate market penetration taking advantage of relatively high profitability. Hankook Tire should expand Original Equipment (OE) tire sales and distribution chan nels because OE lasts averagely five years before replacement and around half have a tendency to keep their original brand in the timing of replacement. If Hankook Tire has an advantage on production of functional OE tires or distribution with aggressive investment under depressed tire market, allied with major automobile companies such as Ford which already established cooperation, it would be good chance to make a new leap forward as one of the big global players in tire industry. 3)International business management for long-term competitiveness For the long-term success of global business for Hankook Tire, our team suggests that high global efficiency and high local responsiveness be needed as strategic alternatives for international strategy Achieve economies of scale on the long term point of view. Due to the nature of the tire industry, the economies of scale with high foreign investment with extensive coordination would be effective way to strengthen the long-term competitiveness. Secure global scale efficiency through the localization Since 2009, Hungarian plant has achieved to save the short-term logistic costs and shorten the delivery period from 2-3 weeks to 2-3 days. And also enhanced market recognition in Europe. This is good example to have raised the market share through the localization. To build the next-planed Indonesia and China plant may helpful to strengthen long term competitiveness. Decentralization Strategy by ongoing training program for local people. Trained local people could take the initiative to enhance not only the production efficiency and quality but also the sales. Thus, training program for local makes to strengthen the long term competitiveness

Ernest Hemingway s Hills Like White Elephants - 1080 Words

Greek philosopher Epictetus has been quoted to say, â€Å"We have two ears and one mouth so that we can listen twice as much as we speak.† In â€Å"Hills Like White Elephants†, Ernest Hemingway explores the idea of the importance of communication and the detrimental effect of the lack-of. Throughout the story, the young couple seems to dance around the difficult conversation they must have before the train comes. Their lack of conversation leads to the assumed end of their relationship. Although the story is quite short, the theme is made apparent through Hemingway’s rich description of the setting and the choice to use alcohol as a motif throughout. Hemingway’s vivid description of the setting helps support the over-arching theme of the importance of communication, by creating the perfect backdrop to an imperfect situation. â€Å"Hills Like White Elephants† takes place in a train station in Spain. Hemingway opens up the story with a description of the setting thus proving the importance of the setting itself. The hills across the valley of the Ebro were long and white. On this side there was no shade and no trees and the station was between two lines of rails in the sun. (475) Hemingway uses the landscape to set the tone of the story. The train station is hot and sunny; the reader sees only barren landscape with white hills in the background. Hemingway continues to set the scene of the story describing the station as, â€Å"very hot† (475). The reader feels almost as uncomfortable as theShow MoreRelatedErnest Hemingway s Hills Like White Elephants952 Words   |  4 PagesErnest Hemingway, a well-known American writer, was born in Cicero, Illinois, in 1899. 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Summary of “Management Communication Principles and Practice” Free Essays

Summary 1. Author – Michael E. Hattersley, Linda McJannet Title – â€Å"Management communication: Principles and practice† Date of publication – 2008, Publisher – McGraw Hill International Edition Total number of pages (280) and pages I have read (3-17,237-257,257-69) 2. We will write a custom essay sample on Summary of â€Å"Management Communication: Principles and Practice† or any similar topic only for you Order Now The main idea This book is about the Management Communication. This book is about different types of communication, questions and problems with any manager could deal wiht. It shows how to write well and how to speak well. It gives information about making strategy for your managerial communication. 3. The structure of the text and the main problems discussed by the author The text consists of three chapters. In the first chapter the author introduces the foundations of Management Communication. This chapter mainly shows elements of communication and qualities of effective communication. It also gives a realy good phrase, which everyone should remember â€Å"good communicators are good listeners†. In the second chapter the authors explains effective writing process. It describes basic elements of good writing. It is full of examples, expressions and useful notes, for example, giving a lot of small tips, which can help in every situation. This chapter gives the necessary information to get any document to be read and received in the way you want it. In the third chapter the authors describes methods of effective speaking. This chapter helps to improve manager’s speech for different reasosns. Also it recommends to prepare, make a structure for your speech or presentation. It shows how to effectively deliver your speech or presentation. 4. The reader’s opinion about the book I prefer to read books about management because it gives me extra information and knowledge so i did enjoy reading this book. Book briefly gives information about the basics of Management Communications, as well the most useful tools for dealing with communication. Readers task is just to understand how and when to use them. I found out new things, for example, which words better not to use when speaking to the audience and with which words i can replace them. Also i read some facts about communication history, which were new for me. This book can help everyone manager who struggle with communication with his/her colleagues, partners, etc. Because it offers excersises for myself as a business communicator with the purpose of to find my stregths and weaknesses. This book confirmed that manager needs not just the theory but an actual practice – speaking and writing (also role playing) is required because in my opinion it is the best way to develop communication skills. Also i found out a lot of new words reading this book, then tried to explain and translate them. 5. Vocabulary list devote – to give or apply (sniegt, pieteikties) workload – the amount of work (slodze) revity – briefness – quality of expressing much in few words / short time (izteikties isi, kodoligi) vigor – force, strenght, healthy mental or physical energy (speks, energiskums) hyphens – defise attributive noun – noun that modifies other noun persuasively – persuasive – parliecinosi, parliecinoss incremental – increasing, extending (palielinoss) assumptions – pienemumi d isintermediation – â€Å"cutting out the middlemand† – atteikties no kada slana/amata tirdzniecibas kede egalitarian – lidzigs, demokratisks, bezskiru sadalijums pervade – viscaur narrative – stasts clash – sadursme, konflikts llegiance – loyalty, trustiness (lojalitate, uzticiba, padeviba) ample – plass implications – sekas engage – iegut un noturet cilveku uzmanibu, interesi, noligt kadu konkretam amatam dalliances – niekosanas, vieglpratiga apiesanas, cilveka uzvediba, kurs vilcinas, leni rikojas legitimate – likumigs, pareizs Obviate – izvairities overwhelm – receptive – indifferent – grapevine – convey – succinct – dignity – paramount – immensely – commond (of the language) – bond trader – constituents = dalliances – cultivated – izkopts, izsmalcinats promoter – horde – circumva nt – inevitably – privotial – implicitly – factual – concision – clutter – How to cite Summary of â€Å"Management Communication: Principles and Practice†, Essay examples

Roles of Directors in Change Management

Question: Discuss about theRoles of Directors in Change Management. Answer: Introduction The environment of operation of most establishments is characterized by perpetual revolution. Similarly, the profession of early childhood development in Australia experiences some transformations as the approaches deployed in the occupation keeps on changing. Notably, the most important changes commenced in the 1980s and were introduced by the publication of the Australian Government's National Early Childhood Development Strategy, Investing in the Early Years (Andrade, 2016). All change requires an effective plan, the success of which depends on the various techniques put in place to manage the possible resistance. This paper seeks to discuss the roles of a team leader in the process of change management and further analyze the various organization norms that need to be transformed to enhance the success of the change management process. Roles of a Team Leader in Change Management Process The success of any organizational change significantly depends on the leaders as they possess then needed authority and influence to plan and efficiently execute the change process. Most good leaders exhibit superior emotional intelligence that enhances their capacity to exercise control over their followers and ultimately capturing their attentions as well as emotions to prepare them for a change (Muijs et al., 2004). More often the needed amendment starts with leader; he should have the understanding of the change and efficiently communicate the vital information to the followers. As a leader of a team, the director is expected to have the following roles concerning effective change management; Documentation For a change to be effective there a necessity for a coherent picture and representation of what is currently happening in the organization as well as the expected outcome of the modification. As such, the director has an obligation to lead the team in establishing a clear vision by developing a work plan for the likely change. The director needs to put down the activities and the steps, clearly showing the order of the steps and the duties and responsibilities in the respective steps. Documentation is crucial in eliminating the fear of the unknown among the followers as it significantly creates assurance and positive mindset that enables the stakeholders to support change rather than resisting (Trawick-Smith, 2013). Communication In creating awareness, it is prudent for the leader to communicate the reasons why the organization needs the change to the employees. Ideally, the director should include the employees at the initial stages of effecting the change to be able to avoid future resistance. Moreover, the employees more often have good ideas that can help in developing the organization, thus, through communication; they get an avenue of communicating their thoughts and suggestions to their leader (Appelbaum et al., 2016). Communication also allows participation of the entire workforce further making the employees feel acknowledged and important to the organization. The manager should include as many as possible in the change process and get them feel involved and respected. Consequently, the members of the team will deeply understand the need for the change and the anticipated benefits which in turn improves their acceptance of the modification. It is noteworthy that effective communication reduces the risk of resistance as the employees will find it better to fight for the change to be able to enjoy the associated benefits ((Jansen, 2000). Building a Team The director has the responsibility of building a team with a perfect mix of skills that provides the basis for the change. The team leader is expected to identify committed individuals with the right expertise and competence, bring together with a primary aim of enhancing a good teamwork. An efficient team significantly aids the process of change by improving the communication between the members of the group and further gives the director a chance to influence the mindset of the members to make them ready for the change (Rodd, 2012). Moreover, building great team assists in eliminating conflicting interest among the team members. The director should put more focus in making the members have a common goal of ensuring successful change implementation. There are various team building activities that should be deployed by the leader to achieve better results. Such activities include passing of vital information to members, decision making and activities aimed at improving trust. Notably, confidence is essential for successful change implementation and therefore the leader should put emphasize on developing trust between among the members (Keen et al., 2005). Providing Resources to Remove the Obstacles Change is prevalent in the profession of early child development and therefore adjusting to the constant transformations is vital for survival (King et al., 2009). However, effective change execution comes at a cost. It is the responsibility of the leader to avail adequate resources needed for the change process. As such, it is prudent for the director to make a budget detailing the total costs of all the materials required for the change process and organize with the management to solicit funds. Mainly, Change management process include expenditures such as expenses incurred when organizing training and seminars aimed at creating awareness of the needed change. Moreover, the team building process is a cost center that needs significant attention (King et al., 2009) Importantly, the leader needs to do a comprehensive cost-benefit analysis. The breakdown is vital as it shows whether the change is of significance to the organization. For a change to be viable, the benefits associated with the cost should outweigh the expenses incurred in effecting the change. As such, the leader should ensure that only the sustainable modifications are executed (Lines*, 2004). Rewarding Team Members More often employees feel motivated when they are complimented for the efforts that they make. Consequently, the leader is obliged to ensure motivation of the team members by congratulating colleagues and rewarding them accordingly. Additionally, motivated employees more often improve the change process by offering the support necessary for the change process to be successful hence limiting the chances of resistance. For instance, the directors can consider rewarding the members in the presence of the children and their families (Grant, 2013). Organizational Norms Vital in Ensuring A Positive and Effective Process of Change. Organizations are made up of people with various talents and skills resulting into different cultures in the group. The culture of an organization is vital in the change process as it determines the views and shared beliefs of the workforce of the institution. Essentially, before executing a change process, the management should analyze the culture of the association to identify the various areas and customs that need the transformation to aid the anticipated change process. Thus, it is noteworthy that the shared beliefs have a significant influence on the response of the teachers, families, and children to the proposed changes (Jansen, 2000). The following are some notable improvements on the organizations culture that will significantly enhance the change management process. Opening Channels of Communication Since communication is key in the change process, the management should put emphasize in improving the communication channels (Andrade, 2016). An organizations message system is majorly composed of formal and informal communication channels. The informal network is more often referred to as the grapevine communication system and is vital for passing information to the employees. Depending on the culture of the organization, the management officials should open up more communication network and ensure a balance between the two channels of communication. There must be a perfect flow of information between the educators, learners, and the families involved (Burnes, 2015) Developing a Learning Environment A thorough examination of the employees is vital to determine whether they have a learning culture. In some situations the educators and the families involved are not always ready to absorb new ideas, they genuinely believe and trust their current techniques. As a result, in some circumstances, the National Quality Framework applies external pressure for change through strict regulations that stipulate financial penalties for institutions that do not comply (Fenech et al, 2008). To avoid such forced change implementation, the leader should put great emphasize on improving the learning culture in the organization. The various stakeholders need to have a mindset that accommodates change and ready to learn new techniques and tactics. Moreover, the environment should provide a platform that allows the members to express their opinions and share their valuable ideas freely. Improving the value of learning allows the intended change to be implemented positively and efficiently. Conclusion The process of change is unavoidable in the profession of early childhood development. To cope up with the dynamic nature of the occupation, the various stakeholders should pay close attention to the effective change management. Accordingly, the leaders of the teams must comprehensively understand their roles in managing change and perfectly plan for the process of the expected change. The culture of the organization should be shaped to develop a favorable environment for the process of modification. 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