Analysing Change Drivers and Impact on Dyson's Business Strategy

This report provides an in-depth analysis of change management at Dyson, a UK-based technology company. It examines the impact of various drivers of change, both internal and external, on the company's business strategy and operations. The report utilizes a PEST analysis to understand the macro-environmental factors influencing Dyson, including political, economic, social, and technological aspects. It assesses the effects of changes such as the appointment of a new CEO, the relocation of the global headquarters to Singapore, and the company's expansion into new technological areas like energy storage and robotics. The analysis compares the impacts of structural and technological changes on Dyson's organizational strategy and operations, evaluating both the opportunities and challenges they present. Furthermore, the report assesses the impact of change on leadership, employees, and group behavior, and explores ways to minimize negative impacts through the application of suitable theories. Finally, it provides a critical evaluation of the long-term implications of change for Dyson, considering both the benefits and drawbacks of various change drivers, such as technological advancements, structural reorganization, government policies, and social pressures.

Unit Number and
Title
Unit 17 – Understanding & Leading Change
Title Drivers of Change and Organisational Impact (Part 1)
Leadership and Change Management (Part 2)
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Table of Content
Assessment Part 1
1.0 Introduction 3
2.0 Brief introduction of the organisation 3
3.0 PEST analysis of the company
3
4.1 Assessment of drivers and effect of change and their impact on business
strategy 5
4.2 Comparing the impacts of change and the effect they have had upon the
organisation’s strategy and operations 7
5.0Assessment of impact of change on leadership, employees and group
behaviour 10
6.0 Assessment of ways of minimising change impact which application of
suitable theories 11
7.0 Critical assessment of long term implications of change 12
8.0 Conclusion 13
References 14
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1.0 Introduction
Dyson is a UK based technology company which offers wide range of
electrical appliances including hair dryers, vacuum cleaners, blameless fans, air
purifiers and other products. The company is current headquartered in UK and
has international presence in 65 international markets. The mission of the
company is to inspire new generation of engineers and maximize sustainability.
The objective of Dyson is to solve problems which are ignored by other
business firms by offering innovative products. The report focuses on change
management at Dyson ad impact of different types of changes on the company.
In this part of the report comparison of impact of changes on business strategy
and operations is provided. Impact of internal and external drivers of change is
provided in this report The measures of evaluation taken to minimize negative
effects of change are also mentioned in this report. In addition to this, critical
evaluation of long-term change on business firms is provided in this report.
2.0 Brief introduction of the organisation
Dyson is in the technology industry and in order to survive in this
industry business firms have to regularly implement change in order to adapt
with external changes and enhance offerings of the company as per change in
consumer interest. Presently there are three different changes being
implemented at Dyson. The first change is recent appointment of Ronald Kruger
as the CEO of the company. The second change is shift of global company
headquarter from UK to Singapore. The third change is expansion to new
technological avenues such as energy storage, robotics and software to build
product sustainability.
3.0 PEST analysis of the company
PEST analysis
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This is an analytical tool used to understand the external forces and their
impact on a business firms. The macro environment of a company can be
understood with the help of this analytical framework (Auguste, 2013). This
framework covers four factors which are political factors, economical factor,
social factor and technological factor. Political Factor: The EU Singapore free trade treaty which is bilateral
treaty signed between EU and Singapore which covers various areas to
initiate free trade between these international regions such as enhanced
protection of protection of Intellectual property rights and elimination of
import duties and taxes (Dyson appoints new chief executive officer,
2020). This treaty is driver of change in case of Dyson as it provides the
opportunist to increase profits and expand globally by exploiting free
trade relations between EU and Singapore.
Positive Impact: Dyson can enhance their profitability and build strong presence
in Asia by taking advantage of the free trade agreement.
Negative impact: Establishing presence in Singapore requires huge investment
to build technological infrastructure and dedicated workforce. Economical Factor: The decreasing economic condition of United
Kingdom affects UK based business firms. This is driver of change as
Dyson needs to decrease their dependency on UK supply chain because
of weak economic environment.
Positive Impact: The firm has the opportunity to build a strong international
presence to tackle with this issue.
Negative impact: Low economic condition in UK affect global profitability as
well as domestic sales of the company. Social Factor: Lack of highly skilled labour in Britain who are
technologically literate has reduced due to the impact of COVID-19,
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ageing labour population and restrictions of Brexit on availability of EU
workers. This is driver of change as presence of highly skilled workforce
is essential to gain competitive advantage in technology industry.
Positive Impact: Dyson can access skilled workforce at low prices in
comparison to UK through relocation.
Negative impact: Dyson will not able to design profitable products without
presence of skilled employees. Technological Factor: This facto covers impact of external technological
advancements on the company (Beck & Cowan, 2014). Rapid usage of
new and advanced technology by consumers is a technological factor
which affects business firms in technology industry. Consumer usage of
advanced technology such as internet of things, VR and AI is a driver of
change for Dyson as the company has to adapt with changes consumer
preferences and expectations related to technology in order to ensure
long-term survival of the company.
Positive Impact: Dyson can utilise this technology and develop new products
and build a product portfolio which exceeds consumer expectation.
Negative impact: Product development requires heavy research and initial
investment.
4.1 Assessment of drivers and effect of change and their impact on business
strategy
Dyson aims to move their headquarters from UK to Singapore (Dyson to
move global HQ to historic Singapore building, 2019). The change of
international relocation is influenced by two drivers of change which are change
in labor pool and political landscape.
Changes in political landscape of the company acts as driver of change
because political changes impact the company (Bolman & Deal, 2017). The
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main advantage provided by changes in political landscape with the EU-
Singapore trade agreement is that it will help the company establish
international presence in Singapore without compromising business in EU. The
company will be able to leverage the strategic location of Singapore and gain
assess global sea route between India and China. The company will be able to
enhance profitability in Asia by locating at the doorstep of China which is the
largest Electrical market in the world while maintaining strong presence in EU.
The disadvantage of this change driver is that the firm company need to
make huge financial investments for international relocation which increases the
risk associated with this change.
The advantage associate with the shift in labor pool is that the
international relocation of the company to Singapore will give the firm assess to
most skilled employees in Asia. This is because Singapore labor market attracts
skilled and young workers due to high ranking in HDI index. Dyson will b able
to quickly develop talented workforce with relocation to Singapore.
The disadvantage of this change driver is the huge cultural difference
between British workplace and workplace in Singapore. The cultural difference
increases the possibility of ineffective change management and can result in
huge loss incurred by the company to relocation expenses.
This is structural change as and will impact future growth direction of the
company and influence inter nation presence of the company.
Technological development is one of the external factor which initiates
change in business firms (Chappell and et. al., 2016). Adoption of new
technology is another change which is being implemented by Dyson. The
company has invested in building technological competencies in the field of
data storage, Robotics, Artificial Intelligence and software to drive
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sustainability and performance. The drivers of change in this case are
technological development and sustainability:
The advantage associated with change driver of technological
development of increasing consumption of AI, software and other technologies
all over the globe in various products is that respective company be able to gain
competitive advantage with investment in this field. Technological
improvements helps business firms gain competitive advantage (Choudhary,
Akhtar & Zaheer, 2013). Dyson will stay ahead of other firm by building
expertise in this field.
The disadvantage associated with this driver of change is that with
increasing consumption of advanced technology by common public threat of
cuber crime against the current and future digital products of business firms
(Cummings & Worley, 2014).
The advantage of sustainability as changer driver is that the company
will be able to provide more sustainable products to the consumers which will
provide profitability and prepare the firm for sustainable future.
This disadvantage related to the change driver of sustainability is that the
by focusing on developing sustainable products will increase the investment of
technological and product research. Sustainability is requirement of business
firms in the current age (Fullan, 2014).
This is technological change and will affect the core competencies and
industry position of the company.
4.2 Comparing the impacts of change and the effect they have had upon the
organisation’s strategy and operations
Impact of structural change on organizational strategy and operations
Dyson is implementing structural change of international relocation of the
company of the from United Kingdom to Singapore. Organizational change
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impacts organizational strategy and business operations of the company
(Goetsch & Davis, 2014). Structural change impact the strategy of the company
by introducing new threats and opportunities. In case of the respective firm, the
structural change of international relocation provides the opportunity of
business expansion in Asia with the help of EU Singapore trade agreement and
strengthening skilled workforce in the region. The suitableness strategy of
Dyson will shift to focus on the developing Asian markets in China and India
and leveraging the EU Singapore trade agreement to maximize global
profitability. Daily business operations of Dyson will also be affected by this
change as the company has to accommodate cross cultural management from
Singapore headwaters to ensure smooth functioning of the company.
Impact of technological change on organizational strategy and operations
Business firms have to adopt new technology in order to offer effective
products or services which initiates change (GU, 2014). Dyson is implementing
technological change of adoption of new technology in order to enhance
product portfolio and build sustainable products and business processes.
Technological change affects the as the firm will focus on utilizing strengths of
the ethnology to gain competitive advantage. The suitableness strategy of
Dyson will be affected as development of new products with the help of this
technology esquires heavy research and investment. The business strategy of the
company will become product focused. In addition to this the business
operations of the company will be enhanced with the help of Artificial
Intelligence to ensure increased sustainability. This includes usage of data
storage and Artificial intelligence technology to reduce labor and energy
wastage to improve sustainability.
Critical evaluation of long term implication for external and internal drivers
of change
Internal drivers of change:
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 Technological advancement:This change driver has impacted the
change of development of new products in advanced technology such as
AI, data storage and software (Dyson to spend $3.67bn on new
technologies, 2020). The long-term benefit of this change driver is that it
will enable the company to gain competitive advantage upon widespread
usage of such technology. The long-term drawback of this technology is
that the cost of the firm will increase until cost effective ways of squiring
this technology are developed. Structural reorganization: This key driver is mostly responsible for
structural changes in business firms. Dyson will be able to continuously
improve organisational structure with the help of this change driver which
is a long term benefit. Drawback of this driver of change is that the
company will not be able to maintain constant efficiency with structural
reorganisation after brief time intervals.
External drivers of change:
 Change in government policies; Business firms are affected by
government policies and ave to ensure that the government policies which
provide competitive advantage are exploited (Hornstein, 2015). This river
impact the change of international relocation of Dyson. Benefit of this
change driver is that the the company will be able to exploit free trade
agreement between EU and Singapore to build strong market in Asia and
reduce reliability on UK supply chain. This change driver will introduce
new competitors from Asian markets to the company which is a
drawback. Social Pressure: This change driver has impacted Dyson to focus on
sustainability and affected change of developing products with advanced
technology. Benefit of this change driver is that Dyson will be able to
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attract large number of consumers. Drawback of this change driver is that
it will increase cost of the company.
Recommendation with Justifications
 Dyson needs to develop marketing campaigns which suit local markets in
Asia. The justification of this recommendation is that it will help the
company face local competition.
 Dyson needs to reduce overall product development cost by collaborating
with business firms who are experts in AI and data storage technology.
This will allow the firm to develop sustainable products while also
reducing the overall costs.
5.0 Assessment of impact of change on leadership, employees and group
behaviour
Change management affects business firms ate various levels (Hrebiniak,
2013). The three levels of change also explains the impact of change in terms of
individuals, leadership and team behaviour. The levels of change in relation to
organisational change in Dyson is provided below:
 Individual level: At this level individual behaviours of employees are
affected which leads to employee resistance towards change Klimovets,
2015). In case of Dyson headquarter relocation affects employees
working at current headquarter. The advantage of this affect tins that the
company will be able to utilise employees as expatriate to Singapore in
order to ensure their presence in company headquarters. The
disadvantage is that employee resistance might effect smooth change
management.
 Organizational level: Leadership of Dyson is affected by headquarter
relocation to Singapore as this level involves creation of plan of actin for
effective change management. The advantage of this impact is that the
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company is able to ensure smooth change management. The
disadvantage is that leadership of the company can make mistakes due
to uncertainty related to international relocation. Team level: At this level change affects tea behaviour as to becomes
part of the company culture and is accepted as a norm by the workforce
Kotey, & Sorensen, 2014). In this stage team at Dyson will accept
international relocation to Singapore and cross cultural sensitivity of
employees will increase. This impact will benefit the company in terms
of cultural assimilation of change. The disadvantage of this impact is
that employees will become rigid for further change.
Recommendations
 Dyson needs to ensure that experienced employees are part of the change
management leadership in order to reduce risk of failure.
 Dyson needs to regularly communicate with employees in order to reduce
employee resistance to change.
6.0 Assessment of ways of minimising change impact which application of
suitable theories
Lewin's change management model provides there stages of change
which can be used to ensure smooth change management (Matos Marques
Simoes & Esposito,2014). Lewin's change management model can be applied to
ensure effective process change planning. Application of Lewin's cane
management model in context of international relocation of Dyson is provided
below:
Unfreeze
The first stage revolves around acceptance of necessity of organizational
change. In this stage Dyson needs to announce the essential factors associated
with international relocation such as EU Singapore trade agreement.
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Change
In this stage employees support new direction of the company by
contributing to effective change management (McAlearney and et. al., 2015).
Dyson needs to communicate benefit of change to employees in order to
increase employee contribution.
Freeze
The second stage revolves around company-wide acceptance of change
and embracing change in organizational culture. At this stage Dyson needs to
recognize contribution of employees in successful change management.
7.0 Critical assessment of long term implications of change
The change of international relocation of headquarters has long-term
impact on Dyson. The long-term impact on the company will be development of
Asian market for the company. Dyson need to build an effective marketing
strategy so that the headquarter shift provides successful results for the
company. The long term disadvantageous gained by the company with this
change is that the firm will be subjected to more legal factors by operating in
Singapore which will increase legal complexity of the company. Dyson needs to
understand government policies in Singapore in order to conduct their business
lawfully and exploit opportunities provides by legislation of the region.
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