How to Manage Change and Achieve Sustainable Growth - Dissertation Example

The business environment within China has become dynamic in the recent past owing to the move towards liberalization and widespread economic reforms initiated by the government. With China’s entry into WTO, there have been large-scale policy changes and strategic shifts in the economic and business-related aspects. The government is opening up more and more sectors for foreign competitions in diverse sectors which have led to an increase in difficulties for the local businesses. The local organizations that are largely state-owned have traditionally enjoyed protectionism, which in the event of the changing environment, is expected to be eased out eventually.

The foreign competition is also expected to be better equipped in terms of resources or economies of scale as well as on culture and attitude to work. The indigenous organizations are therefore required to make changes not only in the strategic perspectives but also at the structural and the cultural level if they expect to remain viable in the face of competition. China Travel Service (CTS) is one such organization that was originally a state-owned company with strict government control. By functions, it served a dual role for the government -  a political role and a commercial role.

It was political as it followed the political view of the government and was largely driven by the overall policies regarding foreign affairs of the government. CTS also served the commercial purpose for the government as its proceeds and revenues, drawn mostly from business and political travels, went directly into the government coffers.   After the economic reforms started in China, most of the state-owned enterprises have to be self-supported and can no longer rely merely on the support of governmental funds.

CTS, which was initially a very bureaucratic organization has successfully transformed itself with flexibility into a commercially viable and financially self-sufficient travel service group in Hong Kong.