Change Management - PT KAI

Topics: Rail transport, Public transport, PT Kereta Api Pages: 13 (2868 words) Published: March 4, 2014


I. COMPANY PROFILE

Background
Indonesian railways started with the construction of the first line on June 17th, 1864 in Kemijen, Central Java by the General Governor from Dutch Mr. LAJ Baron Sloet van den Beele. PT Kereta Api Indonesia (PERSERO) business scope run according to clause 3 of the company status including construction, operation, maintenance, and exploitation of infrastructures. The products and/or services are railway passenger transportation, railway freight transportation, containers, fuels, cement, bulk and plantation cargo, general and small cargo. Products and/or services non transportation are train maintenance, rental/leasing, advertising, tour services, training and education service, and medical care.

Vision
To be the best railway service provider by focusing on customer service and meet stakeholder’s expectation.

Mission
Undertake railways business and its supporting businesses through best practices and best organization model to create higher added value for the stakeholders and environment preservation based on four main pillars : Safety, Punctuality, Services, and Comfort.

Corporate Culture
INTEGRITY – INNOVATION – PROFESSIONAL – PRIME SERVICES – SAFETY

Corporate Tagline
“You are our Priority” It means, you are our customer, whether you are a part of Indonesian Railway or not. Customer should be the priority in achieving prime service and to collaboration between individuals and among departments is therefore essential to achieve prime services.

Current Condition
PT. KAI as the largest operator in Indonesia rail freight services provider made a breakthrough by releasing a number of innovations in the field of product services in the last three years. The success has been widely recognized and enjoyed by the public, especially users of railway services. KAI won the State Owned Enterprise Award in 2012. In 2012, PT KAI achieved Rp 6.97 quintillion on total revenue, increased by 14.3% compared to 2011. In 2013, PT KAI has increased their fleet including 359 unit locomotives, 2400 railway wagons. Besides, PT KAI improves the reservation system and purchasing process of train tickets, builds parking areas in its stations, launched woman-only wagon. In Jabodetabek loop line, PT KAI closed down economic class to enhance convenience.

II. EXTERNAL - INTERNAL CONDITIONS AND COMPETITOR REVIEW

External Conditions

ASPECT
CHANGE (2010 to 2013)
IMPACT
POLITIC
As a state owned company, PT KAI is the only company running mass transportation in train sector and ruled under government’s regulation. There is no specific change of the government’s policy that affects PT KAI ECONOMY

The GDP growth from USD 539.352 billion to 878.043 billions
The growing trend of the GDP increases the purchasing power of Indonesian people, this may lead to potential risk of the utilization of private vehicles SOCIAL
The increasing mobility in Java Island especially Jakarta - Bogor - Depok - Tanggerang - Bekasi due to centralized development of workplaces Increasing demand of mass transportation

The seasonal trend of Ramadan festive and holidays
The seasonal events will provide revenues for PT KAI

Poor consciousness of passenger to preserve public facility This will result in the high maintenance cost and reducing service quality aspects

MP3EI program that optimally utilizes mineral resources through intra and inter island connection. With the intra and inter island connection, it will open new market for PT KAI

Increasing traffic due to rapid growth of private vehicles
Train is an alternative choice of traffic-free transportation

“Visit Indonesia” campaign
Potential growth in tourism
TECHNOLOGY
The increasing demand of customer for faster and more convenience service The increasing importance of electronic and practical based services ENVIRONTMENT
The increasing need and awareness of “going green”
Global warming has escalated the importance of...
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