Table of Contents INTRODUCTION...........................................................................................................................3 SCENARIO 1...................................................................................................................................4 1 ) Overview of the case study of House of Fraser's..................................................................4 2) Drivers and impacts of change and their impact on organisational strategy.........................4 3) PEST analysis and comparison of two firms along with the impact of change on company's operations and strategy................................................................................................................5 4) Impact of change on organisational strategies and operations of House of Fraser's..............8 5) impact of change on leadership, individuals and team behaviours........................................9 6) How the impact of change can be minimized.........................................................................9 SCENARIO 2.................................................................................................................................10 1) Introduction to the case study organisation..........................................................................10 2) Application of force field analysis to determine opposition and support for change...........10 3) An explanation of the different barriers to change..............................................................11 4) How was change accomplished and how successful was it within your chosen organisation ...................................................................................................................................................11 5) Advantages and disadvantages of different leadership approaches to dealing with chain...13 CONCLUSION..............................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION Organisational change is a system, which is a part of every business organisation and plays a very important part in every organisation. This is very helpful for effectiveness and making strategies in a organisation. Leadership is main approach which is used as a management function so that leaders are able to make appropriate decision in a organisation. This is a report which is based on two case studies that is Sports Direct and House of Fraser's. House of Fraser is a department store which is located in UK and Ireland. On other hand, Sports direct is British retailing group which is providing services across all parts of world and they are having a many associated sports brand and trades(Pearson 2017). The present report is divided according to various task which include understanding impact on organisational strategy and operations. There is also influence of various drivers of change which will be discussed in this report. There
are many barriers to change which can posses a impact on decision making process of leaders. Lastly, there are various approaches of leadership which are related with change initiate in this report. SCENARIO 1 1 ) Overview of the case study of House of Fraser's House of Fraser is the case study which has been chosen for this business report.In present case study, Mike Ashley is one who has been preparing for making million of investments as they are planning for opening new luxury stores as mini chains known as Frasers. This is major change which is decided by company for development in the organisation. There is a need for updation of departmental stores usage of updated technology for reduction of cost. There are resources which are available with firm but there is a requirement for effective planning which can help them in utilisation of resources in optimum manner(Jorgensen, Trotterand Hill, 2016). Changes are common in every organisation and all organization lay emphasis on implementation ofthis change as they are very crucial in a organisation and strategies have to be implemented in an appropriate way so that there are no barriers and organisation can experience positive effects of such types of change. This is also related with how organisations are willing to introduce the respective change and then implement a particular change. There is a need for effective strategies so that minimization of negative impacts can be there and overall benefits for employees and organization as a whole can be increased. 2) Drivers and impacts of change and their impact on organisational strategy Therearetwomajorchangessuchasinternalandexternal.Internaldriversare inventions, capabilities, competence, resources, desire etc. and external drivers are customers, government, competitors, technology etc. these are some of drivers which posses a direct influence on all business functions. In present case study House of Fraser's & sports direct there are some changes which posses a impact on strategy of organisation as discussed below: ChangeHouse of Fraser'sSports Direct Rebranding is a change which is a type of operational change and is done in companies. In this change there is working Themainchangewhichis being implemented is “buying & bulling”. This is a process which has a positive effect on
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style which is being focussed forfulfilmentofindividual needs. business functions. Strategical changeFordevelopmentifluxury chain there is a planned usage of IT system as there is a shift ofwarehouseinshirebook. This is a strategy which will haveapositiveeffecton operation'sofbusinessand will also increase overall sales and growth. There is negotiation in chains landlord'swhichisamajor strategyforsportsdirectso that they can reduce rent rates andalsoadoptingmoves whicharemadebyretailers whoarepresentinAshley's stable so that they are able to slashtheiroverallcostand there is developed and growth. 3) PEST analysis and comparison of two firms along with the impact of change on company's operations and strategy PEST and SWOT analysis is a effective framework which can be used for making a internal s well as external analysis of a business operations and functions(Henningsen and Henningsen, 2015). PEST analysis is used as a strategic tool of business so that they are bale to organise, discover and then make a detailed evaluation of all macro economic factors. This is a basic framework which has a direct impact in all business strategies and operations of house of Fraser's & Sports Direct. PEST AnalysisHouse if Fraser'sSports Direct PoliticalThis is a component which is relatedwithstabilityin political environment of UK. House of Frasers has to adopt modification in their business function so that they are bale tofunctionwithoutany This is a factor which is related withstablepolitical environmentofUK.Sports Directiswillingtoadopt growth strategies which can be beneficialforthemfor enhancementoftheir
barriers.Thiswillhavea impactintheirmanner functionsinapositiveway. Such as firm will be able to expandeasilyandtheycan alsohavetheirmarket activities performed in a more appropriatemanner.Quality product will be delivered to the finalconsumerwithhelpof this factor. productivity and profitability. EconomicalIn UK, there is a scenario of recessionwhichisposinga impact on economic growth in anegativemannerthiswill lead to better decision making. In House of Frasers there is a strategy of lowering of prices According to market analysis inUKpopulationratiois declining and this is going to have a direct impact on Sports Direct so ah hey can alter their pricingstrategyandoverall cost of operations. There is a voluntaryagreementwhere there is decision to negotiate 75% reduction of rents. This has also lead to reduction of workforce so that cost can be managed. SocialInpresentsituationinUK there is a very high population which is lead to increase in spending on various activities so that there isincrease in salesforHouseofFraser's. In present context, majority of populationhasdevelopeda preference for shopping which leads to lowering of sales of organisations.Thereisalso establishmentofonline
Thiswillleadtoapositive effect on organisation as they will be having more sales as peoplearewillingtop purchasemorehenceoverall profitability will increase. application for shopping which ishelpingSportsDirectfor improvement of their sales. TechnologicalIn this House of Fraser there is very high competition which is there for competitors as they have to adapt themselves for innovativetechnologieslike havingpresenceononline mediums, there must be efforts made for creation of websites whichwillfacilitatebetter online services so that overall customerbasecanbe increased.Thiswillleadto highcompetitiveadvantage. Which isvery necessary for surviving in situation of high competition. In this factor, Sports direct will face a huge threat as there will bemorebusinesspractises related with implementation of updated technology in business practises. Organisation agreed towardsCVAactivitywhich will lead to adoption of new technologyinabusiness functionwhichwillhelpin exploringofpotentialofa businessinhavinga differentiation advantage. SWOT Analysis:This us a factor which is having a relation with business strategy & functions in House of Fraser's & Sports Direct. Strength The major strength in House of Fraser has a global presence because of their services and they are willing to maintain better quality of products so that sales can be increased. Weakness This is related with comparison which is made bytheir competitors so that they cab handle commodities at various floors which makes it not that convenient for making of purchase. OpportunityThreat
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Thereisaveryattractiveopportunityfor House of Fraser that they can expand their share of market by adoption of techniques of M commerce which is helping in expansion of profit margin of a company(Forgang, 2015). House of Fraser is facing lot of threats which is havinganegativeimpactinitseffortsof getting a competitive advantage. Sports Direct Strength The major strategy of Sports Direct is that they can directheir business as a retailer who us get a multi level presence. They are operating in 20 countries and are having 757 stores world wide. Weaknesses SportsDirectsomanytimescriticisedfor havingpoor workingconditionsbecauseof unfair practise of work. It can lead to negative response of target segment of customers in the market. Opportunity There has been a opportunity for Sports direct which can help them in having a mass division in markets of US as there is high population who are having a preference for sports wear,m casual wear and other equipments of camping. Thisopportunitywillhelpinexpansionof overall profitability ratio. Threat There is a high level of competition which is there because of competitors such as Hibbbet Sports, Foot Locker , ASOS and many other such type of companies. 4) Impact of change on organisational strategies and operations of House of Fraser's Above discussed external and internal factors will posses a direct impact on strategies and business functions in House if Fraser's. The political factor of UK will have a support for the organisation as its luxury chain(Greasley, 2017). IT is a technological factor which will also help in supporting a organisation in increase of its sales and also shift in warehouses which will lead to overall increment of sales. SWOT analysis is a factor which is used for internal analysis of a organisation and will also help in expansion of a business in various countries. This is also possessing a impact on various business functions.
5) impact of change on leadership, individuals and team behaviours The changes in business entities have a significant impact on companies performance. Basically, there are two types of changes which are process and strategical change. These are most common changes which are part of every organisation and help in smooth functioning of organisation(Ngan and et.al 2016). Due to these changes leadership, team behaviours and individuals in the house of Fraser company in such manner: This is the role of leaders to implement democratic style of leadership. This is so because it can be beneficial for companies in order to find out views and ideas of employees regarding to change. Process change can also affect to team behaviour aspect of above mentioned House of Fraser company. Herein, this is important to know that process change will affect positively on behaviour of their team that is based on leaders for taking right steps. As well as the strategical change will affect on any particular individuals boy raising their knowledge regards to various kinds of strategies and operations that are used by business entities to create a luxury small chain. 6) How the impact of change can be minimized There are different types of model in order to overcome impact of change on businesses. Lewin's change management model is one of the best model in order to make better management of process and strategical changes(Bagozzi, Sekerka, and Sguera, 2018). Such as in the aspect of above House of Frason's company, this model can be applied in order to overcome impact of change. Under this model, there are three types of stages which are Unfreeze, change and refreeze. All these stages have a significant impact. Such as in the Unfreeze stage company should be ready in order to face any kinds of change. While in the change stage, actual change is being implemented in companies' process. In the end, under Refreeze the level of change is being identified.
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SCENARIO 2 1) Introduction to the case study organisation Sports Direct is a case study which has been chosen in this report and there is a discussion which is being done on how Mike Ashley is willing to invest in turning of House of Fraser into a luxury mini chain. Sports Direct is willing to purchase House of Fraser. Jack wills for smooth administration. Company is willing to expand their business functions towards “buying and building” of sports brand and fashion. Michael Murrray is leading this division and is related with head of elevation as a output. Jack wills has a name for itself and executing a different place in mind of consumers. 2) Application of force field analysis to determine opposition and support for change Force filed analysis is a framework which is supporting a organisation so that they are able to handle various types of pressures which are prevailing outside and then according to that they can make important decision in their organisation(Power, 2015). This is a model which is representing various forces whichare prevailing in external environment and is related with positive or negative impacts of change. Such type of forces are explained below: Forces against changes:-Increasing cost:-This is related with overall process and various strategic changes which is having a negative impact on organisation such as Sports Direct. This is related to business expansion relate with maximum capital & time required in a company. There are finite financial resources which are to be utilised so that maximum benefits can be gained from such available finance with a organisation. There are two levels such as Frasers having more designer labels and house of Fraser having more market audience.More labour turnover and absenteeism:-This is related with attainment of maximum position in a business and attainment of large market share this will help in achievement of high targets(Visinescu, Jones and Sidorova, 2017). This will lead to maximisation of turnover of labour. There is increase in employees who are willing to leave organisation as they are not ready to accept change all this sometimes leads to increase in labour cost for organization. In Sports Direct, many employees may not be supporting the division of higher authority of buying House of Fraser. This will affectingtheir willingness to stay in the organisation.
Forces in favour of changes:-Governmental support:The government belongingto various countries encourage various organisations so that they can expandtheir business functions in a effective manner. Supportofcompany:KPMGissupportingSportsDirectwhichismanaging& administration whole finance which can be beneficial for expansion if business in sports and fashion brands. 3) An explanation of the different barriers to change There are many barriers which are related with change which are taking place in Sports Direct which they are facing while they are willing to expand their business in sports and fashion brands. There are some barriers which is discussed as below: No high involvement of employees:This is a change which Sports Direct is facing while they are willing to purchase House of Fraser out of administration.change in a organisation (Scott,2018). There are some employees who are not willing to accept the change very easily this is reflect in business in a negative way as there is reduction in overall productivity of employees. This is also going to posses a impact on various business decision and long terms success of business. High level of Resistance:Many times there is also a situation in which there is very high resistance which is shown by whole workforce in the organisation. The reason behind this is that they are not ready to accept the change and they try to make efforts that change is avoided. In present case, there has to be clear communication of change to employees in Sports Direct in which they have to make their employees understandthat what are overall benefits of this change from their perspective. In present scenario, employees presently working in House of Fraser may not support the decision and at same time sports Direct may also not accept this decision and this all may lead to high resistnace. No appropriate communication strategy:Communication is a very effective strategy which is used by organisations while they are willing to bring a new change in the organisation. This also has a huge impact on business functions and operations in which they are using in their organisation. In present scenario of Sports Direct there is no proper communication channels which have been laid down in the organisation. Also, there is no proper communication which is
made in their organisation so that employees are made understand the basic reason behind Sports Direct purchasing House of Frasers.(McCrea, 2015). This is also reflected in the way change is being introduced in the organisation. This leads to no proper understanding of change which is in intended to be bring in the organisation. These all factors will have a very strong impact on overall decision making as leaders and mangers might face difficulties in making various decisions related to new acquisitions which the company is planning to do. 4) How was change accomplished and how successful was it within your chosen organisation There are mainly two most popular types of change which is being used in organisations. These changes are related to strategy and change which are taking place in a organisation. Such type of changes are very essential for success of business. These are referred to as strategical change which is used for supporting the organisation in overall expansion of business(Tirmizi and Vogelsang,2016). These are also assisting in achievement of long term goals more easily and in a more effective manner. This is related to accomplishment of objectives which have been laid down in the organisation. There is a model recommended for Sports Direct which they have to use While the change is being implemented in the organisation which is Lewin's change management model: Unfreeze:This is related with active efforts made for unfreezing stage. There are meant employees who are willing top show high resistance to change. Top overcome this tendency, there are effort made so that high motivation is being provided to employees in Sports direct and House of Fraser that they are willingly ready to accept changes. Transition:If changeinitiation company is in a transition stage whichlasts for limited period of time. There is need for leadership skills at this stage in Sports Direct so that there is successful implementation of the present change of administration. Refreeze:After acceptance of change a organisation becomes stable and employee will adapt themselves to the new change in Sports Direct which will lead to positive changes intheir organisation.
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5) Advantages and disadvantages of different leadership approaches to dealing with chain Leadership style is used as a effective approach in various organisation. This is a style which is related with providing effectivedirection to employees so that they are able to make proper implementation of overall business plan and also helpin motivating their employees. In case of bringing change in a organisation leaders and adoption of a effective style of leadership play a very significant role. Situational leadership style:In this style of leadership in which efforts are madethat leaders and managers have top adjust their style according to the requirement and various situations occurring in the course of business functioning. Advantages This is one of most flexible styles of leadership as they help in making adjustments according to requirements of organisation. This is related with how dynamic leaders are of a particular organisation. This can be ineffective in case when there is task oriented environment in a organisation. It doesnotprovideenoughinformationas required by many leaders. This is also based on overall skills posses by a leader. Transformational leadership style:In this style of leadership leaders are playing a very necessary role as they are willing to bring in the organisation. This is so that they areableto deal with such changes in a more positive manner. There are many types of strategic change which has to b managed by organisation. A transformational leaders is one who is playing a very effective role in this process of change. There are more better results which are achieved with help of this type of change and this results into more outcomes from new change. AdvantageDisadvantage In this particular style of leadership, Transformationalleadersare responsible for creating change which is very necessary for for overall growth of a organisation (Scott, 2018). This is helpful for ensuring success for long In Transformational style of leadership, Transformational leaders are those who are able to reduce the negative impacts of business function or operation's on Sports Direct. Itisnotpossibleinthistypeof leadershipstylewhichisusedby
term purpose. Inthisparticulartypeofleadership leaders are ableto utilise their roles in a more effective way and they gain trustandrespectofpeopleinthe organisation. This further also helps in attainment of objectives in a better way as employees are willing to make more contributiontowardsorganisational objectives and accepting the change. . organisations in encouraging people so thatthey are able to see their own benefit and interest in this particular change which is being bought in the organisation. Authoritative Leadership:This is also a approach which can benefit organisation such as Sports Direct which is helpful in management of sports Direct. In this approach, Leaders of a organisation are able to clearly mention the procedure and the way in which change will be implemented in the organisation. This is very helpful in achievement of objectives which have been decision by top authorities of the organisation. In this style of leadership there is full control which is accessed by top authorities and there is no authority which is being provide to employees(Archibald and Archibald, 2016). So, there is complete directions and action plan which is provided to employees andthen according to that employees have to work in the organisation. Leaders and managers will be making efforts that they are able to make employees to understand their strategy and reasons behind change in a more effective manner. AdvantageDisadvantage This is a leadership style which is used by leaders so that they are able to make all decision and exercise full control over all decision and no authority is beingprovidedtoemployees.This leads to lot of accuracy and flexibility in the work which is being done in the organisation. In this leaders has to make attempts that theyaredoingalleffortandwhole workwhichisrelatedtopbusiness. Thisleadstoabsolutecontrolover wholeorganisationandcreationof employees.Inthisallpoliciesare developedbyorganisationandwork tends to a take place in that particular
There is also savings in terms of cost andtimewhichhelpsinoptimum utilisation of resources in a effective manner. manner only. Many timesthis style of leadership leadstolotofrigidityinthe organisation as employees are not able to experience any type of authority to performtheirworkoranyother responsibility.This willalso leadto high control and employees may not feelsecurewithhighcontrolbeing exercised on them.
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CONCLUSION In the end of report, it has been concluded that effect of change onbusiness operations and policies is crucial. Organisational strategies can be affected due to different types of factors such as internal and external. The further part of report concludes about SWOT and PEST analysis model which are being applied by chosen company for making external environment analysis. As well as Lewin's change management model is also being applied in order to manage impact of change. Various leadership styles and approaches rae used for this purpose in organisations. There are situations From end part of report, this can be concluded that force field analysis model is crucial in order to assess pros and cons of change on companies performance.
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