Background CASE STUDY Kabeer Machinery and Electric Import and Export Corporation (KMEC), which is a 100% subsidiary of Anglo National Machinery & Equipment Import & Export Corporation (ANMEC), was founded in 1995, in the GCC region. The company's main business is exporting locally-manufactured electrical appliances to US-based companies and importing US-manufactured electronics for local sales. KMEC is a private limited company. It was a new business model when the company was founded, because almost all the import and export companies at the time were state owned. The key managerial personnel of the company are a CEO, 2 General Managers, who are responsible for the Finance and Operations Departments, four Deputy General Managers, and the Head of HR Department, who is in charge of the employee processes and administration. The Deputy General Managers are in charge of various Business Departments, in which salesmen are devoted to finding more clients, seeking more business opportunities, exploiting market potential and retaining customers and maintaining a stable pipeline of customers. The total employee population of KMEC is approximately 200. In the previous years, the company had a group of stable clients that ensured business growth and development, and KMEC gained considerable profits every year. They earned a good market reputation and brand image. However, over the few years preceding the global financial crisis of 2007-2008, the company started to face several issues. The three key issues that emerged, have been described in the following paragraphs: Issue One In the year of 2006, the CEO, who was well respected and a figurehead for KMEC, left the company because of health reasons. The company then promoted a General Manager to replace the CEO. The new CEO maintained the traditions and didn't make any major changes to the company. At the same time, however, a lot of experienced senior management staff also retired or left KMEC, including a General Manager and two Deputy General Manager. As those meritorious, founding heroes left, a lot of vacancies had to be filled by less experienced while young and enthusiastic people. There was confusion and uncertainty in the minds of remaining employees at the time. Issue Two In the meanwhile, the local governments made dramatic changes to the rules for importing and exporting businesses. The government made some adjustments to the export tariff, leading to a notable increase of the export product prices, eventually weakening the competitiveness of their export industry and leaving little profit to the exporting companies. KMEC thus needed to consider necessary adjustments to its business and organization structure to respond to these changes. Issue Three Unfortunately, a world-wide financial crisis broke out in 2008, causing the rise of the price of raw materials and the appreciation of the value of the local currency. More importantly, due to the fact that most of KMEC clients were from the center of the 2008 financial crisis, the USA, the bankruptcy of many American client companies finally heavily affected KMEC. The profit of the company decreased remarkably, So, the business was caught in the middle of a crisis. Does KMEC need any change management intervention, in your expert opinion? Consider how can Lewin's Model come to their help? Answer the assignment questions!