Understanding and Leading Changes

UNDERSTANDING AND
LEADING CHANGES

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 ..............................................................................................................................................1
Various examples of drivers that impact on organisational change. ..........................................1
Task 2 ..............................................................................................................................................3
Evaluate internal or external drivers of change that affect leadership, team and individual
behaviours....................................................................................................................................3
The negative impact of changes on organizational behaviour.....................................................5
TASK 3............................................................................................................................................7
Barriers to change and influencing decision-making to leadership.............................................7
Force field analysis for influencing organization decision-making ............................................8
TASK 4. ........................................................................................................................................10
leadership approaches to deal with organisational contexts......................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business changes can lead to an organisation to success and can impacts its sustainability in
long run. Change in organisation allows company to comply with its strategies and produce new
plans so that it acquires sustainability in competitive market. This study is focus on
organisations that are Mark and Spence and Unilever. M&S and Unilever is British multinational
company with its headquarters in London. M&S specialises in food products, apparels and home
products. While, Unilever products largely include energy drinks, beauty or personal care
products, healthcare products and also largest soap producer around the world. The report is
focus on large companies of UK that are affected by covid-19 with explanation of various drivers
for changes that impact an organisation's operations and strategies. Further, the report elaborate
about external or internal drivers of changes that influence leadership, team and individual
behaviours within an organisation. The report also discuss measures that must be taken to lower
down negative impact. Lastly, elaboration of various barriers to changes that influences
leadership and various leadership approaches that dealing with change in organisational contexts.
Task 1
Various examples of drivers that impact on organisational change.
There are changes that occure in organisations and require maximum restructuring. Changes
can bring negaive or positive impact. Change Management refer as methods that involve both
factors like external or internal in which it determines changes. In below paragraph comparison
is done for two companies namely Unilever and Marks and Spencer. Unilever is u\mulitnational
ocmpanie that operates in different types of products that majorly includes food products, home
apparels, baby products and furnitures et. While, M&S is also one of the leading brand in UK
and operates in cloths and fashion apparels and have its own brand.
Importance of change management: Change management is important for many key reasons that
explain below:
Factors related with external:
External factors is considered as a plan of action that play large part in structure change.
Globalization and constant growth in new digital method are try to force companies to react.
Proper handling of such external factors is likely to threaten success of an organisation.
Enable functional changes:
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Majority of companies who functions within modern organisation is likely to pay attetnion to
change management that includes following key points:
Keep track of all related issues and provide solutions.
Enhance services to internal and external factors.
Strategic plan to overall objectives of industries.
Impact analysis:
Impact analysis is defined as change effect analysis and include detailed study of activities of an
organization and developed by Robert S. Arnold and Shawn A Bohner. According to this
analysis, goods and services determine and examines its potential impacts over a time. As per
Bohner and Arnold, it indentifies that there main three types of impacts analysis:
Traceability
This variants connect between specifications, need, tests and design elements. Traceability
allows scope of any modifications that to be analysed and identified. If any team of an
organisation will acknowledge effects of changes than it enable them to react instantly and
efficiently.
Dependency
In dependency elements, it connects parts of relationship of between variables and parts and
clear connections to both of them. Variants in dependency take place at more detailed level.
Experiential
Variant of experiential pays more attention to fact that at how level of changes is powerfully
connected to experience of experts. Knowledge of those experts play important role in these
segments.
Both companies make various changes in their goal, objectives, policies etc.
Strategies – Unilever company now shift its focuses to more on its websites, while M&S also
enlarge its digital websites because of negative impact of covid. Hence, both companies shifts
from its physical stores to online.
Goals – Unilever improve its online sales by 80 percent during Covid. While M&S helps
transform 1000 of local communities with its goods and services.
With the help of PESTLE analysis, external factor is determined of both companies:
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PEST analysis : PEST analysis is used to examine various external factors that includes
political, social, economical and technological that impact an organisation. Let's discuss more in
detail about these factors.
Political
Political factors includes government rules and policies that may impact on an organisation.
Political stability, fiscal policy, trade policy and taxation polices are also involve in these factors.
Unilever is one of the largest company that now mark its presence globally. As Covid situation
arises, Unilever must abide by the frameworks that is set by Food and Drug administration, for
example, company should avoid to open stores for longer hours (Klofsten and et.al 2019). While,
Mark and Spencer that mainly operates in UK but also has many locations abroad but because of
Covid, M&S unable to operates its business in another countries that hugely effect its
profitability in long run. Hence, both companies start increasing its online business to overcome
the impact of Covid.
Economical
Economical factors impact on economy and its performance as a whole that directly impact
on profitability of an organisation. That factors includes interest rates, raw materiel and foreign
exchange rate. Unilever faces sharp fluctuations in currency market because of Covid. As a
result, Unilever unable to expand its business and its sales are also decreasing from last year
(Putting purposes into practice.2021). As financial crises arises because of Covid and lead
decrease in demand for high quality products for M&S as consumer has low disposable income
and its home and sales were down by 29.9 percent (Covid-19 efffect:Mark and Spencer to slash
7,000 jobs.2021). As a result, consumers unable to spend on luxurious products (Prange and
Pinho, 2017). Unilever ensure safety of its workplace as well as try to protect incomes and jobs
of all its employees. On the other hand, M&S would try to provide more flexibility and wants its
employees to do multitasking.
Social
These factors mostly pay attention to environment and determine social trends as these help
companies to acknowledge needs and requirements of customers that includes education,
lifestyles, attitudes an cultural trends. Unilever has seen drastic change in demand as because of
Covid, people now prefer more hygiene or in-home food products. Therefore, company are
adopting this type of demand patterns, apart from this company also supports communities with
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donations. M&S also need to change its business plan during Covid situations and just focus on
food and clothing divisions and as as result its food stores traded throughout lock down.
Technological
These factors hugely influence operations of business. Unilever unable to produce new
products as no resources are available that company put in research and development and unable
to capture correct market. Therefore Unilever focus on existing goods and increase its sales
through digital platforms (Liere-Netheler, Vogelsang and Packmohr,2018). M&S need to shut
down its physical stores because of Covid. Hence, M&S stated that its sales are now on track as
it launch an online food services through partnership with Ocado.
SWOT analysis :
Strength
As Unilever is operating almost in 190 countries and has global footprint, hence its presence
nearly not affected by Covid that much. Unilever also enjoy competitive benefits over its closet
competitors like P&C because of its flexible pricing. M&S has been in market since last 136
years and made partnership around the world. Hence, its huge experience in market did not effect
its brand name.
Weaknesses
Apart from strength, Unilever an M&S also faces weaknesses. One of the biggest weakness
of Unilever is that its goods can easily exchanged with substitutes goods. M&S sales are
decreasing in some of its stores by end of 2019 as because of its poor supply chain system and
unavailability of products.
Opportunities
With emergence of digitalisation or globalization, lifestyles of consumers are change to more
western and as a result, company now have tremendous opportunity to diversifies its consumer
base (Sriyakul,,and et.al 2019) .M&S has its online stores but as compare to its competitors like
Amazon, company is far behind. As a result, M&S should focus more on growth of online stores
as people mostly use e-commerce websites.
Threats
The global crisis during Covid severely impacted profitability of Unilever. With lower
disposable income, consumers buying less and focus more to save money. M&S should focus on
its strategy because of huge competition arises in marketplace of UK and across the world.
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