Understanding and Leading Change

Understanding
and Leading
Change

Table of Contents
INTRODUCTION...............................................................................................................................3
Project part 1 .......................................................................................................................................3
1. Overview of Shell organisation and McDonald organisation and type of change they went
through............................................................................................................................................3
2. PEST and SWOT analysis of the Shell and McDonald's...........................................................4
3. A comparison of the drivers of change affected Shell and McDonald's......................................5
4. Evaluation of the long term implications of drivers of change in the Shell organisation and
McDonald's organisation.................................................................................................................5
5. Recommendation for planning effectively for change and analysis of change impact...............6
Project part 2........................................................................................................................................6
1. Brief introduction of the McDonald's organisation.....................................................................6
2. Force field analysis......................................................................................................................6
3. Different leadership approaches and models of change management to dealing with change...7
CONCLUSION....................................................................................................................................8
REFERENCES....................................................................................................................................9

INTRODUCTION
Understanding and leading changes helps the participant to handle the issues or problems
that will generated from implementing and initiating changes. In this process participants will
understand and lead the changes accordingly and also examine the political, psychological and
organisational issues which will developed from changes. Royal Dutch Shell is a oil industry
company. Its common name is Shell. Shell is one of the gas and oil 'supermajors'. It is a world's
third largest company. McDonald is a fast food company and founded by Richard and Maurice
McDonald in 1940. This report will include the various ways in which change impacts on an
organisation's operations and strategy. This report will also highlight the ways in which internal and
external drivers of change affect leadership, team and individual behaviours within an organisation
and many measures that will taken by organisation to minimize negative impacts of change on
organisational behaviour. This report will also include the different barriers for change and their
influence on leadership decision making and range of leadership approaches to a change initiative
and also state about the different leadership approaches to dealing with change in a range of
organisational context.
Project part 1
1. Overview of Shell organisation and McDonald organisation and type of change they went
through
Shell is one of the largest international oil company in energy sector. It is a gas and oil
company and incorporated in the UK. The Shell has major goal to take initiative for collaboration,
innovation and conversation all over the world's energy challenges. It includes various services
such as Shell fuels, Shell engine oils and lubricants etc (Espedal., 2017).
McDonald's is a American food company and started their business as a hamburger stand
and now they turned into a Franchise. It is a largest restaurant chain across the world and daily
serving approximately 69 million customers in 100 countries or more. They know for its best food
products such as cheeseburgers, French fries, hamburgers, soft drinks, wraps etc.
Various type of changes in Shell and McDonald's organisation
In the Shell company, many changes are occurring. For strengthening the business
organisation, Shell takes initiative of replacing their businesses by chief executives to improve the
entrepreneurial vigor, financial control and effectiveness of their business strategy. of and The new
technical changes and divisions in the organisation's departments. The organisation take actions to
alter radical organisational restructuring and their large scale business activities. They wants to
merging two parents companies to convert their organisation from joint venture to unitary

corporation (Neumann, James and Vince., 2019). Due to poor performance and low oil price, shell
takes essential actions to cut costs, implement many organisational changes and divest assets. They
reducing additional capacity by closure of filling stations and refineries. Delayering by removing
administrative layers in the hierarchical structures. Creating new mission, vision and values,
implementing and developing a business model, developing a new system of governance, creating
new concepts of leadership.
The McDonald's also implement several changes in their organisation. McDonald's takes
various innovative steps by engaging new items in their menu, renovated restaurants, improving
digital ordering, best delivery etc. They implement many organisational changes in their business
such as removing its region structure for the field offices and enhance resources in main strategic
areas. Developing a effective techniques for better communication between home office and field.
Linked initiative with operators-owner (van der Voet, Kuipers and Groeneveld., 2015).
2. PEST and SWOT analysis of the Shell and McDonald's
PEST analysis assist the organisation to identify various external factors which can
influence the organisation's operations and activities. It includes Political, Economic, Social and
Technological factors.
PEST analysis of the Shell
Political factor
Political factors such as government measures, influences or interventions the affect the
performance or economy of the Shell organisation. Government influences in the sector includes
labour law, tariffs, political stability, tax policy, trade restrictions and environmental law (Rossi.,
2019). The regional and international bodies have implemented a taxes and penalties on carbon
emissions.
Economic factors
Economic factors such as exchange rates, products demand and price, economic growth,
inflation rate and interest rate that affect on Shell organisation. Due to the increment in production
cost, the oil prices have also increased. The production cost is also enhanced due to increased
government taxes.
Social factors
Social factors such as age distribution, health consciousness, career attributes, population
growth and emphasis on safety create major effects on Shell organisation. Today, people are more
aware regarding responsible consumption (Neumann, James and Vince., 2019). It will enhanced