I.

Review changes and their impact

1. Organizational changes
 Grab: Introduction of surcharge.
 Xanh SM: Introduction of Xanh SM
2. Type of change

Both changes coming from two businesses are planned change. Leaders of Grab and
Xanh SM must first discuss with stakeholders (Van Woerkum, 2011); Second, each
company aims to solve a specific problem (Van Woerkum, 2011), such as the fact that
drivers often face more difficulties transporting passengers on days of inclement weather
or congestion, while Xanh SM aims to Minimize emissions from vehicles.

Another way to classify business changes is to divide types of changes concerns by the
size and scope of change, by dividing into 3 types first-order/ second-order/ third-order
change (Fox, 1998). .

Because Grab modifies prices to benefit consumers and drivers, this shift is a first-order
change for the company (McDermott, 2013). Dynamic change—a new organisation,
corporate structure, and culture—makes Xanh SM's appearance second-order change
(McDermott, 2013).

3. Impact on organizational operate

3.1. Grab

a) Finance

The surcharge price increase has a Moderate impact on financial operations. Increasing
the surcharge for drivers means that Grab also receives more money through %
commission, which means increased revenue for the business and more financial profit.

b) Sales
Surcharges can significantly impact sales by influencing customer service utilisation.
After paying extra for a journey, service users become upset with Grab's surcharges, and
drivers must donate a percentage to the host firm despite receiving more income. Even
when Grab workers avoid weather and traffic (Baotuoitre, 2022).

Dissatisfaction directly impacts corporate revenue. Users are also switching to apps with
no or lower surcharges.

3.2. Xanh SM

a) Finace

Introduction of Xanh SM is Major impact on the financial operations of the business. In

the first stages of establishing a company, you will have to pay a lot of costs to operate its
operations. Besides, Xanh SM is a traditional service so they also have costs to buy
motorbikes and hire and train drivers (Baotuoitre, 2023).

Xanh SM's introduction boosts GSM's charter capital to 6,000 billion VND (Nghia,
2023). Xanh SM supports the business's cash flow (Baotuoitre, 2023).

c) Human resource

Since all drivers are company employees, Xanh SM has a major impact on HR
moderation. As a new firm competing with established brands, Xanh SM must invest in
HRM swiftly. After Xanh SM was introduced, the company hired around 400 drivers a
month with tight standards for experience, local terrain knowledge, foreign languages,
etc. (Vietbiz, 2023). Human resource moderation must improve employee benefits to
recruit so many high-quality workers. (2023, Vietbiz).

II. Drivers of changes

In this part, the internal and external environments are analyzed, in which PEST, Five
 Forces are used to indicate drives, compare them between 2 businesses, classified into for
changes / again changes, finally give point

1. Internal environment

Grab GSM
Type of GrabBike builds a large network of application Xanh SM was founded by Vietnamese cab firm
business users, not only passengers but also drivers. GSM. GSM must train Xanh SM employees
Drivers freely choose the time, area and vehicle because it is a typical cab firm with only one
to work. With the same fare for any trip, drivers consumer group. GSM personnel receive
do not choose not to work on holidays, days of professional training, a fixed wage, and
inclement weather, rush hours, etc., leading to commission. GSM and employees are very
times that are even more unfavorable for drivers. committed (1), thus drivers will be passive and
It becomes more difficult for customers to find dependant on the business.
buses. Grab's network lacks commitment Driver for GSM - score: 4.
between businesses and drivers (1).

Driver for Grab - score: 3 However, due to high and strict personnel
requirements, GSM takes a lot of time to find
and train drivers (2)
Driver against GSM - score: 3
Finance Currently, Grab's financial situation is facing Vingroup founded GSM, which was the world's
many difficulties in maintaining a stable profit first multi-platform green taxi. This assistance
margin due to high operating costs (2. Director serves as financial leverage for upcoming
Anthony Tan requested to adjust costs to cope projects (3). Vingroup made significant
with the current context). macroeconomic investments in Xanh SM's electric passenger
instability (Hoang Ha, 2022). This is true when cars as well.
the driver job is no longer accepted like when it
first came to Vietnam. Driver for GSM - score: 5
 Driver for Grab - score: 4
Custome Grab has a variety of services so the business has Vietnamese consumers are more concerned
r service a high number of users. More than 214 million about the local environment. GSM and Be
people have downloaded the Grab app and 3.5 Group opened an electric taxi service with
million use the app every day. A large number of favourable client response (An, 2023).
users could cause a wave of protests if Grab Passengers are thrilled with GSM's initiative to
raises prices (4). Previously, Grab also received a 'greenize' Vietnam's public transport (4).
lot of negative opinions when raising
commissions. Driver for GSM - score: 3
Driver against Grab - score: 5
However, green vehicles are not widely popular
in Vietnam, so new charging stations are
concentrated in big cities, cannot serve long
distances, and the lack of charging points or
waiting time for charging can cause difficulties.
Difficulty in providing continuous service (5)
(score: 4)
Driver against GSM - score: 4

2. External environment
2.1. PEST analysis

Grab GSM
Politics & The Vietnamese government has not yet The Vietnamese government shows support and
Legal regulated technology motorbike taxi prices. accompanies GSM in exporting to the world (6)
 Thus, Grab can raise or lower pricing (5) if it (score: 4). This is shown through policies and
has all the administrative documentation and laws on import and export, especially the
government and company approval, Price can government favors many special benefits
be adjusted specifically for electric vehicles that Xanh SM
Driver for Grab - score: 3 will use to serve customers. (TPM, 2022).

Driver for GSM - score: 4

Economic Currently, gasoline prices are constantly Same factors as Grab, however this has a
increasing, affecting Grab's business. As of positive impact on Xanh SM. When the cost of
August 2023, E5 RON gasoline price has gasoline is too large, electric vehicles become
increased 5 times during the year and increased GSM's competitive advantage. Transportation
very strongly. Such shocking gasoline prices services using 100% electric vehicles, GSM
have caused consumers to cut spending, will save a large amount of costs, not being
including limiting car booking (6). This means dependent on world gasoline prices like most
that customers' price sensitivity increases technology/traditional motorbike taxi
significantly at this time. companies are having to do. bear (7

Driver for GSM - score: 3

Driver against Grab - score: 4
Social For technology motorbike taxis in general, Electric motorbikes are a new type of vehicle in
customers have a certain impression of cheap the Vietnamese market, which leads to a lack of
prices. More specifically, many customers trust from customers (8). With a very limited
believe that using public motorbike taxis is number of charging stations for electric
much more cost-effective and convenient than vehicles, drivers cannot choose to go anywhere
buying and using a private vehicle (Nhung, on a whim because they have to consider
2023). In particular, customers have a good charging locations.
impression of the prices of technology
Driver against GSM - score: 3
motorbike taxi companies because there are
many promotions to support users,
unintentionally creating price sensitivity for
 customers (7)

Driver against Grab - score: 4

Technolog Technology in the technology taxi industry is Currently, electric taxi models in the world are
y increasingly modern and useful. Not only do equipped with the most modern technology and
they help drivers and customers connect with features. GSM's transportation vehicles are not
each other, applications can also use AI to only imported from Vinfast but also from many
suggest services suitable for each customer businesses around the world, such as the Aion
without human intervention; or it can collect V Plus electric taxi produced by China's GAC
user data thereby improving the system; or help Group (Truong, 2022). Modern technology
drivers avoid traffic jams, warn of bad weather, helps GSM not lag behind the world (9
etc. (Baotuoitre). Therefore, to improve
Driver for GSM - score: 4
services, Grab must invest more money in
technology.

Driver for Grab - score: 4

2.2. Five Force analysis
Grab GSM
Threat of new As a technology application for transportation It costs a lot to establish a traditional taxi
entrants services, new businesses entering the market do or motorbike taxi company because not
not need to spend too much capital to operate, only do you have to invest in machinery
so the threat of new entrants is high (9). The technology, but you also have to ensure
entry costs of new entrants will be lower than the number of vehicles and drivers. So the
those of existing companies, because taxi threat of new entrants is low (10)
technology has become popular and accessible,
so they do not need to invest as much in Driver for GSM - score: 3
research and development.
Driver against Grab - score: 3
The bargaining For the passenger customer group, currently in For customers who come to Xanh SM,
power of the technology motorbike taxi market, most aim for high-class service and
customers customers have many choices with relatively environmental safety, so price is not what
similar price ranges, with zero conversion they focus on when using Xanh SM.
costs, so most customers do not faithful, this Therefore the bargaining power of
trend has been bargained on Grab customers is low (11)
So the bargaining power of customers is high
(10) Driver for GSM - score: 3
Driver against Grab - score: 5
The bargaining For Grab's type of business, the business does Currently, Xanh SM is provided with
power of not have a clear supplier. Businesses don't seem electric vehicles by Vingroup. So the
supplier to need to care about suppliers because they bargaining power of supplier is relatively
provide internet and application software, but high, because Vingroup is the monopoly
they do not provide Grab alone. supplier at the present time.
So the bargaining power of suppliers is low So the bargaining power of suppliers is
(11) high (12) ( score: 3).

Driver for Grab - score: 3 Driver against GSM - score: 3

The threat of Both businesses have similar and influential substitutes. As big cities build bus networks,
substitutes elevated railroads, and subways, Grab and GSM face competition from public transport. In
particular, they are cheaper and simpler.
Public transit drop-off locations and hours are limited. Grab and GSM not only pick up and
drop off people, but they also offer food delivery, quick delivery, electronic payment cards
and more that public transportation cannot.
Therefore, the threat of substitutes of both businesses is Medium High (12)(13) ( score: 3).
Driver against Grab - score: 3
Driver against GSM - score: 3
Competitive Grab's competitors are growing and Xanh SM not only has to compete with
Rivalry becoming increasingly diverse. Currently technology taxis but also traditional taxis. As
Grab's direct competitors are Be, Gojek,..etc, a new business in the market, Xanh SM
 they all have no difference, Be even stands temporarily does not have a certain position,
out a bit more because of its cheap price. especially when its direct competitors
Therefore, in the midst of a challenging Mailinh and Vinasun have been operating for
competitive environment, car manufacturers a long time.
constantly change and innovate in order to
Therefore, the Competitive Rivalry is high
gain market share.
(14)( score: 3)
Driver against Grab - score: 4
Driver against GSM - score: 3

3. The relationship between drivers for changes

3.1. Grab
3.1.1. Ixternal drivers
With two drivers "Drivers are not attached to their work during peak time" and
Technology will be upgraded to support drivers at peak times, there is a dynamic
interaction relationship. If Grab increases surcharges and invests in technology, it will
support drivers at peak times such as traffic jams and bad weather, drivers will improve
performance, thereby drawing more revenue for Grab. Hence, this relationship is
characterised by dynamism and interactivity, where the effectiveness of Grab's
modifications is directly proportional to the strength of the two drivers

3.1.2. External drivers

The relationship between external drivers is a cause and effect relationship

- If new entrants have cheaper prices, customers will be more likely to leave Grab and
use the new company's services, and if this possibility is more possible, it will have a
stronger impact on the business if Grab intends to increase surcharges.

- Customers easily switch companies and use cheaper services, creating a fierce business
environment
3.2. Xanh SM

The relationship between the internal drivers of Xanh SM is a dynamic interactive

relationship

- The investment from the parent company in Xanh SM gives it an extremely outstanding
competitive advantage that no other business is strong enough to equal. Therefore, GSM
can become a monopoly on electric taxis and can earn large revenues, which makes the
parent company invest and focus more on Xanh SM.

- Because modern electric vehicle technology not only helps Xanh SM compete, but also
brings good effects to the environment and the Vietnamese economy, the state
government will continue to support and give many incentives to Xanh SM, From there,
businesses can develop technology further
 III. Force field
1. Force field model
1.1. Grab

Based on the Force Field analysis, the balance for the change is 4 (=24-20), so the
change is not likely to succeed. Due to the final purpose of not successfully
implementing the change
a) The relationship between driving forces and the opposing forces
The Force Field Analysis illustrates the relationship between the driving forces and the
opposing forces when introducing surchage.
Grab's plan to increase surcharges is not supported by drivers because it creates many
challenges and problems for businesses. Drivers for change show that the business has
the ability and effort to make changes. On the other hand, drivers against change shows
strong resistance coming from costumers, while influence from opponents shows
resistance elements that create obstacles to change. Customer opposition stems from
concerns about rapidly rising prices and the loss of a cheap transportation service.
Furthermore, the influence of competitors in the same industry and substitutes creates
more price pressure for Grab with cheaper prices. Thus, if this modification is made,
Grab would encounter mixed reviews, lose trust, and risk losing market share. Last, firms
should balance fare increases and decreases. If modifications are needed, Grab should
freeze fees or incrementally raise surcharges.

b) Force for and against affect on leadership decision-making

Forces for Change affect on leadership decision-making:
- Solve part of financial difficulties: This factor has the greatest impact on decision-
making among the drivers for change. At the same time facing rising costs and
investment and development, the difficult financial situation affects Grab's
development, so leaders need to come up with solutions to gradually improve. It
can be said that the more influential the financial difficulty factor is, the more
leaders have to make decisions to increase surcharges
Forces Against Change affect on leadership decision-making:
- Customers leave the company because of cheaper choices: This factor has the
greatest impact on decision-making among drivers against change. The biggest
risk when Grab raises prices is customer churn, so leaders may need to address
customer concerns with new measures, such as improving in-process services.
transportation, giving additional incentives on transportation services to customers
using taxi services, etc. The more businesses increase prices, the more they will
lose sympathy with consumers, creating an advantage for competitors to surpass.

1.2. GSM
The Force Field analysis indicates that the alteration has a balance of 8 (=29-21),
indicating a high likelihood of success. Because the successful implementation of the
change is the ultimate goal

a) The relationship between driving forces and the opposing forces

GSM's Green SM introduction plan is supported by the majority of drivers because it
opens up many opportunities and potential in the business process. Drivers for change
show that Xanh SM has enough potential in terms of expertise, finance and context to
develop. On the contrary, drivers against change prevent that, stemming from the fact that
customers are not ready to face the risk, this will change over time after there are many
electric vehicles covering the country and charging stations are not available. , storage
facilities will have more and reduce those risks, at the same time businesses should
reassure and build trust with customers. model is encouraging businesses to make
changes as soon as possible
b) Force for and against affect on leadership decision-making
Forces for Change affect on leadership decision-making:
- Huge support from holding company: This factor has the greatest impact on
decision-making among the drivers for change. Starting a traditional electric taxi
 business costs a lot of money and requires expertise from the leader. So the more
the parent company invests in Xanh SM, the more likely the leaders are to make
the decision to establish a company.
Forces Against Change affect on leadership decision-making:
- Limitations of electric vehicles: This factor has the greatest impact on decision-
making among drivers against change. Electric vehicles are quite new in the
Vietnamese market, so it not only affects drivers but also customers. Leadership
needs to carefully consider how to operate the vehicle system smoothly, while
stabilizing customer psychology. Therefore, the more limitations electric vehicles
have, the less leaders should make the decision to establish a company
 IV. Change and the impact on organization behavior.

I. Leadership and individual behaviours are affected by change.

1. Intervention theory
Because of the word limit, I will focus on the negative impact

Business Intervention Primary Organizational Level affected

Individual Organization (Leadership)
Emotional resistance: Negative Grab's change has had some impact
Grab VN Increase
psychological/emotional issues cause on the company's Leadership. After a
Surchages
emotional resistance (Zembylas, 2003). business decides to increase
Grab's employees may not agree with surcharges, leaders must explain
rising surcharges because they think it clearly to state agencies, stakeholders
will damage the company's image and and employees in the company.
revenue. Furthermore, fluctuations in Increasing prices can create a bad
prices might incite customer reputation for businesses, so they
indignation, so causing employees to must handle crises, specifically
experience discomfort when confronted concerns and dissatisfaction from
with complaints. customers, to resolve psychology and
maintain good relationships with
Rational Resistance :People customers. Employees may
experience rational resistance when experience a crisis in the flow of
they lack the knowledge and negative opinions, and leaders may
information necessary to assess change. face resistance to change.
For this change, employees do not have
much decision-making power, but
leaders make it, they just grasp the
 information and follow it. Lack of data
can make employees resist this move.
They don't know their personal benefits
when the corporation raises the
surcharge. Employees may protest since
they don't know if this change would
affect their rights.
Xanh SM Establish a For Xanh SM, the drivers are The introduction of Xanh SM
new business employees of the company, so the affects firm leadership.
resistance will not be as high as Grab, initial, Xanh SM's business model
but there is still resistance among requires big investments, therefore
individuals. executives must implement policies
Emotional resistance: At the time on operations, finance, human
Xanh SM was founded, traditional taxi resources, etc. to overcome the initial
companies were on the verge of losing challenging period.
market share because of the intrusion of Second, all parties may disagree with
technology taxis. Therefore, employees leaders for many reasons. Leaders
may feel worried about the company's must reassure and reduce internal
direction when pursuing a traditional negativity if staff resist. Due of the
model. They fear that Xanh SM's strong demand for human resources
situation may face difficulties similar to while starting up, focus on
other traditional companies, which recruitment.
leads to protests among employees. Supply chains and partner networks
will become complicated, forcing
Rational Resistance: Negative leaders to ensure systems run
opinions can sometimes cause a crisis smoothly and closely monitor this
for employees, therefore leaders connection to ensure supply chain
Because electric vehicles are different stability, supply chain and partner
from petrol vehicles, staff may not fully
 comprehend how to use them, assistance.
especially when they break down. They
may reject the significant shift. This.
First to offer high-end services
throughout the trip, Xanh SM will have
a lot of expertise that drivers don't,
which increases resistance to the shift.
They may resist change due to pressure.

4. Recommendations and evaluations

4.1. Grab
4.1.1. Recommendation

To solve the negative impacts of Grab after the change takes place, there is a solution as
follows
Businesses need to stay connected with employees, by communicating and exchanging
with employees throughout the change process, this helps businesses build trust with
employees and helps them avoid doubts and worries. worry about company policies.
More specifically, creating opportunities for employees to feedback on changes will be
better than the company making unilateral decisions, because the exchange between both
parties will make information transparent, easy to grasp and reduce feelings of confusion.
feeling of anxiety and insecurity. For instance, Grab can detail the rationale behind the
rate rise, any communication or customer service concerns, how staff should address
them, and if this is a temporary or permanent adjustment. For instance, will this
adjustment assist the employees in any way? Establishing shared objectives between the
workforce and the organisation also lowers resistance, boosts involvement, and enhances
employee mora
Evaluation
Strength
⁃ Continuous communication within the company helps Grab create a transparent and
trustworthy corporate culture (Radovic, 2018). This will help individuals adapt and
accept any upcoming changes
⁃ This method helps Grab motivate and increase employee commitment (Radovic, 2018),
so that they feel that the company's changes are part of their responsibility, so they will
make efforts to resolve them if any arise. Risk instead of resistance
⁃ Finally, addressing changes with people helps leaders see them objectively (Suoi,
2013). Subordinates must contribute to some changes, especially those that affect the
company's image, to make better decisions.

Weaknesses
- Employees may prioritise personal interests over group ones, making their
perspective subjective (Zhao, 2020). Grab employees may support the surcharge
because they believe it will benefit them, regardless of the company's image.
Therefore, leaders must think carefully.

Xanh SM

4.1.2. Recommendation

For negative impacts, Xanh SM can consider the following solutions. In the first phase of
Xanh SM, employee performance evaluation is also extremely necessary for this change.
Not only to check and maintain the service quality of drivers, but also to motivate drivers.
Poorly adapted employees will look at the performance of well-adapted employees,
thereby consciously improving the quality of their services. This helps businesses,
without direct impact, still make employees consciously hone their knowledge/skills and
improve their qualifications. At the same time, Xanh SM can directly feed back the
working process of the drives. Providing explicit feedback to employees regarding areas
for growth can prevent confusion during the work process, enabling the development of a
tailored training plan.

4.1.3. Evaluation

Strength
- The first strength is that evaluating and responding to employee performance will help
them improve performance (Rodriguez, 2017). Closely following the work process of
employees at the company's start-up stage will help them improve their shortcomings,
promote their strengths, thereby improving work performance and providing higher
quality service.
Weaknesses
- However, such frequent evaluations can create a stressful working environment for
employees (Latham, 2013). If Xanh SM has monthly reviews and feedback, employees
may be under constant pressure to always find ways to maintain their performance,
causing stress and anxiety. Therefore, Xanh SM needs evaluation that is strict enough to
increase performance and lenient enough to motivate employees

III. Critically evaluate the long-term implications of change on organisational

behaviour.
Change long-term implications of change
GrabVN: Currently, the company's image has good influence and holds a large
Introduction of market share. An increase in Grab's surcharges can directly affect
surcharge. Grab's brand, causing customers to lose sympathy for the brand. So,
although increasing surcharges helps increase revenue, if customers
fail, it can cause the business to return to the beginning (1-2 years).
GSM: Introduction The establishment of Xanh SM in the short term may encounter many
of Xanh SM problems in terms of human resources, machinery, etc. However, in the
 long run, Xanh SM can bring revenue to the company because of
differentiation and media investment, helping the company expand its
business scale and spread the message of environmental protection (2-
5 years)

IV. Leadership approaches and models to change initiatives

1. Leadership approaches
Grab Transformational Participative leadership
leadership
A corporation must change According to Akpoviroro
four key components to (2018), participative
improve employee leadership necessitates that
performance. workers take part in or
(Anderson, 2017). If Grab's contribute to the majority
leaders adopt this of business decisions.
approach, they can inspire According to Grab,
employees while building a managers should consider
work culture in which the opinions and ideas of
everyone works towards subordinates when
common goals. implementing change so
that they can come to a
consensus. Members will
be encouraged to voice
their thoughts on company
matters as a result, and the
organisation will have a
variety of options for
 solutions.
XanhSM Transactional leadership Adaptive leadership
According to (Anderson, A useful approach for
2017), transactional leadership called "adaptive
leadership emphasizes the leadership" enables people
exchange and transactions and organisations to adjust
between leaders and with the times and
followers. In particular, effectively address
GSM managers will have persistent issues
rewards for employees with (Obolensky, 2017). It is
good achievements, precisely GSM managers
helping employees define who prepare for change
clear goals and set and engage employees to
reasonable expectations, so deal with it. Adaptive
that the unit can withdraw. leaders learn to control
short time such as training context through
time to achieve short-term experimentation. They
goals such as number of have a lot of different
orders per trip. points of view so that there
are a lot of choices.
It also helps people at all
levels understand each
other better and lets
everyone try new things
and make changes that last.
2. Change model
Kurt Lewin's Change Model outlines the steps involved in bringing about organisational
change: recognising the need for change, modifying conduct, and making the new norm.
2.1. Grab
⁃ Unfreeze: First, Grab needs to be clearly aware of the need for change to make
drivers more committed and responsible for their work, carefully research the
market context, and provide clear information about the rights of drivers. parties,
methods of implementation and responsibilities of the company, leaders, drivers
and passengers. At the same time, the marketing and communications department
needs to be ready to answer any doubts and concerns from all parties.
⁃ Change: For the purpose of making modifications, after taking measures to
acquire knowledge about the history, specifically to determine whether or not this
pricing meets the requirements of the existing users and whether or not it is
beneficial to all parties involved. Following that, once the changes have been
communicated, Grab is required to create a comprehensive plan and put it into
action, all the while ensuring that it is in agreement with the relevant parties and
modifying the plan as required.
⁃ Refreeze: Grab must amend its policies and promises in relation to the change
once it is finished. Companies must ensure that everyone is aware of the new
pricing and, in some circumstances, that it becomes the standard price in order to
maintain the highest possible standard of quality.
2.2. Xanh SM
⁃ Unfreezed: In the first place, GSM needs to have a crystal clear understanding of
the importance of electric taxis for the community, the environment, and the
image of the firm. Following that, it is necessary to have meetings in order to
deliver clear information regarding the working system of Xanh SM and to
identify key players inside this establishment. At long last, the company is
prepared to address any and all questions and concerns raised by any and all
parties.
⁃ Change: For modifications to be made, GSM must present a thorough
implementation plan detailing how to carry out the establishment of Xanh SM. In
addition to modernising its operational procedures and system, Green SM is also
in the process of training and developing its personnel in order to build trust with
its stakeholders.
⁃ Refreezed: Once the change is complete, GSM updates organizational policies
and procedures to reflect electric taxi solutions. At the same time, GSM must
maintain negotiations and discussions with partners and communities to ensure
ongoing understanding and support.
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