Importance of Change Management in Strategic Management Process

This article discusses the importance of change management in the strategic management process. It examines the complexity of the transformation process, its risks, costs, and sustainability. It also explores how effective change management can impact the success of an organization.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical examine the process which is used by company to determine strategies. .....................1
Assessment of critical models and tools which is used by company to determine their strategy.
.....................................................................................................................................................2
Application of different tools and models which are used by Morrisons...................................3
Critically examine importance of change management which is based on complexity of
transformation process, its risks, costs and sustainability. .........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic Management is defined as ongoing process which includes planning,
monitoring, assessment and analysing of all necessary requirements which are need in
organisation to meet its objectives and goals (Aguinis, Edwards and Bradley, 2017). It is system
of managing sources of business for attainment of aims in effective and efficient manner. It
includes various stages which helps enterprise to initiate their plans and strategies in appropriate
manner for achieve desired outcome. A role of strategic manager is to outlook and develop on
plans or programmes of business for meet their benchmarks. There are six stages involved in
strategic management plan which helps strategic manager to implement and develop an effective
strategy for company.
Morrisons is fourth largest chain of supermarket which operates in retail industry in
supermarket. In current scenario organisation have its operations in online and offline terms.
This is implicit that Morrisons render their sales to people with their stores in physical stores in
distinct locations globally. Now managers or leaders of firm decide to expand their business by
innovation in technology by using digital platform. So for this many plans or strategies are
developed which have six steps by help of strategic management process.
MAIN BODY
Critical examine the process which is used by company to determine strategies.
There are various steps are involved in strategic management process which are explained with
context of Morrisons:
1. Recognize strategic position: It is first and foremost step in which Morrisons assess its
position in determining their goals& objectives for both short and long term.
Organisation need to generate transparent vision for execution for their plan and
attainment of goals. So for this, it is responsibility of manager to prepare strategies by
determining strategic position of Morrisons that their goals & objectives must be
measurable and realistic (Ansoff and et. al., 2018).
2. Collection of people and information: When strategic position once determined. So for
this human resource must be involved in best manner in establishing strategic plan. By
this there must be all updated information should be given to their team members when
preparation for effective plan.
1

3. Execution of SWOT Analysis: This model is used for identifying internal and external
environment of Morrisons which examines strength, weaknesses, opportunities and
threats which affects organisation in positive and negative way. This model provide clear
picture about strength and opportunities of respective company which helps company to
make effective use of their capabilities and to move company in right position.
4. Evolution of strategic plan: When manager of company examines strength and
opportunities of enterprise. The plan is developed in according to enhance efficiency of
business by generate innovation in technology. This plan is consist of strategies and
objectives which is adopted by Morrisons for attainment of technology which is done by
company.
5. Execute the plan: This is important phase of strategic planning process. As when plan is
develop by company now manager have to implement the plan in effective manner. This
step involves assignment of respective task to departments and employees according to
their knowledge and skills (Bergh and et. al., 2017).
6. Monitoring of performance on regular basis: This is last stage of whole process.
Morrisons continuously evaluate and monitor their online performance for pursue
knowledge about their effectiveness. In addition, this help management team of
Morrisons to examine any defect in their plans and by this they should be secure
according to requirement of organisation.
Assessment of critical models and tools which is used by company to determine their strategy.
In current scenario, as market segment comprise of various strategic tools and models
that deals at both international and domestic market place. There are two different types of
models which are used for analysing the scope for any business as SWOT and PESTLE analysis
helps organisation for transforming them from avoiding approaches which is traditional and also
starts new modern approach for achieving goals. Generally, when it is critically evaluate
business operation of Morrisons which is looking for enhancement of it for bring softening in
their strategies by develop new technologies which helps in attracting customers. This leads to
increase in brand image and productivity of company (Ferreira, Mueller and Papa, 2018).
By reflecting SWOT analysis, it is useful in analysing internal and external environment
of company which leads for examine skills of staff members, internal & external sources and
other prospects that leads to gathering all strategies for performing all tasks in significant
2

manner. But it is regarded as not effective in nature because when environment is analyse there
is only focus on all visual aspects that they already consider and this will also lead as various
problems in developing or creating strategy in appropriate manner (Zhao and et. al., 2017).
In addition, if company is considering PESTLE analysis this leads for examine various
factors which are available in external market segment which affect operations in positive and
negative manner. When strategies are developed different aspects as political, economical,
social, technological, legal and environmental factors that are take into consideration that there is
no risks that are take place in creation of strategy. Moreover, it is critically examine analyse that
Morrisons need to be analyse the critically factors that affect company which are linked with
employees, government or any prospect which is related to atmosphere.
Application of different tools and models which are used by Morrisons.
PESTLE Analysis:
It is define as a framework which is helpful in evaluating external factors and risk which
is associated with it (Ginter, Duncan and Swayne, 2018). This analysis is conducted in context
of Morrisons which is largest chain of supermarket which is situated in United Kingdom. There
are various factors or elements which effect growth of organisation or group for generate better
understanding about reasons. The factors are discussed below: Political Factor: This element is explains about all activities which are related to
operations of organisation in order to attain their business at globally. So for this manager
of company have to examine political factors which have impact on overall production.
This factor includes legislation, exchange rates, tax rates and so on. In context of
Morrisons, Brexit leads to cut down stability of company in regards with financial and
shareholders terms. As company offers services and products in online and offline
platform (Lak, Gheitasi, and Timothy, 2020). So organisation have to extremely decide
factors which have direct impact on functioning and decision making process. Economical Factor: This factor is concern as most important aspect of company as it
includes cost, profit, price which have impact on level of employability and income
which can be altered due to supply and demand of company in whole market segment.
This element of analysis is totally depends on outside factors and they can be controlled
by macro elements. In context of Morrisons, due to Brexit there are mojor modifications
in price of commodity which leads that company have to use advertising or outsourcing
3

as their factors to increase food market of Britain which is affect very badly. So for this
company highlights diversification in their plan strategy. Social Factor: This factor depicts involvement of lifestyle, education, lining standard and
so on. As mainly population of UK is straight moving to organic products which is
trending. So for this Morrisons enhancing various variety in non food and food items also
choose appropriate approach for bring modification in range of their commodities. As for
this, demand is assess by having believes in value and ethics of people as they are highly
affect by conditions of society which can change their behaviour (Lynch, 2018). In terms
of Morrisons managers need to determine cultural and social factors of segments in
which they are offering their products. Technological Factor: This analysis is relate to introduction of innovation in technology
in company programmes. On basis of Morrisons, as by offering their products on both
online and offline platform it leads to improve customer satisfaction and also attracts new
buyers. In addition, it is also offers self check out and electronic fund transfer which
made convenient for their customers. So for this company have improve their image and
stocking which helps in reduction of labour cost and also in addition extra time for their
buyers. Legal Factors: This type of element includes policies and norms which have direct
impact on performance of organisation as due to ethical values and code of conduct of
UK now started banning on changes in demands and price of suppliers which are not
notice (McKiernan, 2017). In this context there is control in monopoly of government
policies which reduces buying power of monopoly markets. In terms of Morrisons,
management of organisation follow all policies by providing elimination in price and also
promotion of their products with help of appropriate advertisement in multinational
supermarket.
 Environmental Factor: In terms of Morrisons, it consider social responsibility which
leads to positivity because organisation is include in distinct activities by concerning as
decrease in pollution. As organisation have operations in food services so management is
concerning about health of environment so for this they play vital role to protect nature
by proper use of supply chain (Wheelen and et. al., 2017). In addition, company is also
involve in attracting least deforestation by including reduction in waste of water and
4

proper weather conditions. At last, enterprise also generate reuse, reduce and recycle in
their activities for offering good quality of products to their buyers.
SWOT Analysis
This analysis is a techniques which is used in strategic planning to help organisation or
individual for examining strengths, weaknesses, opportunities and threats which is related to
project planning. This method is designed for decision-making process for analysing of strategic
position, profitability of organisation. It identifies internal and external factors which are
favourable and unfavourable for achievement of objectives (Meyer, Neck and Meeks, 2017). In
this analysis, strengths and weaknesses are considered as internal factors whereas opportunities
& threats are commonly external factor of environment. Morrisons is leading firm in retail
industry so there are numerous internal and external factors on basis of SWOT analysis are
discussed below: Strength: This factor is considered as positive attribute for organisation. There are
various strength in relation to Morrisons which is helpful in thriving in market segment.
This factor not only helpful in protection of market share but also penetration in new
market segments. In context of Morrisons as it build superb performance in entering new
market. This leads to build new revenue system and also diversification in economic
cycle (Wang and et. al., 2020). In addition, there is also high level of customer
satisfaction by offering good quality of product to existing customers and also attract
potential customers. In Morrisons, there is strong dealing community by having various
distributors and also investing fund in training programmes to their staff members to
satisfy customers. Weaknesses: This factor is considered as negative for organisation. In terms of
Morrisons, it has limited reach geographically as compared to other brands. In addition,
there is also issues which is related to pertaining rights of farmer which affects brand
image of company. Moreover, net contribution and profitability of organisation is below
average. There is also need of more investment for new technologies. Furthermore,
financial planning of company is also not done in efficient and proper manner (Schilling
and Shankar, 2019). Company can use cash more efficiently as current asset and liquid
ratio that have to be done.
5

 Opportunities: These factors are favourable elements of external environment that give
competitive advantage to company. In context of respective company, it has numerous
opportunities such as new environmental policies which create a level field for all players
in organisation. By introduces new technology it becomes advantage for company to gain
market share. In addition, enterprise is also invested sum of amount in online platform.
This leads to creation of new sales and also attracts new customers.
 Threats: This refers to factors which have potential harm to company. In terms of
respective company, increase in share of market of competitors have direct effect on
margins of it (Siegel and Leih, 2018). In addition when there is increase in change in
policies and taxes also leads a threat to firm. As due to invention of e-commerce many
retail sector face various issues. As due to intense competition which leads to increase in
number of players in retail industry which leads to decrease in sales and profitability of
company.
Critically examine importance of change management which is based on complexity of
transformation process, its risks, costs and sustainability.
Change management:
It comprises of tools, processes and techniques which is used to manage side of people
change and also attainment of desired results. It focuses on in what manner staff member adopt,
embrace and use change in their daily work. It is both competency and a process which leads to
increase in productivity and profitability of company. In today's business environment change
management affect performance of company in positive and negative factor. Now business
operate changes in their services and products which leads to change in them. So for this new
initiatives are take place and old techniques are forced by managers to leave it.
In addition, technology is becoming continuously change in business which is helpful in
attaining objectives of company. There are various approaches and methods for change. So it is a
responsibility of manager that organisation have to agree to change in their products and services
(Umam and Sommanawat, 2019). So Morrisons and other firms started as in what manner there
must be change in their management. It leads to impossible for company so for this there is
change management process is implement that must be in collective effort and also result in
refining idea and brainstorming. In transformation process, Morrisons faced many issues in
respect to risks, cost and sustainability. So for bring change in existing process there is
6

requirement of investment in that sectors which helps managers to influence investors. So this
process leads to enhancement of profitability and productivity.
By above, there is requirement in Morrisons to go with different prospects and have
interaction with investors on every single plan so they can effectively invest their money for
company and also for themselves. In addition, when there is sustainability in market it is their
responsibility to keep check on every plan (Vitolla, Rubino and Garzoni, 2017). This leads to
attainment of objectives and goals in effectively and efficiency way.
CONCLUSION
It is concluded from above report, strategic management is a ongoing process comprises
of monitoring, planning and examining of all necessary requirement which meets goals and
objectives of company. In addition, it also includes organisation which is which is seeing forwars
in transforming from traditional approach to modern business approach. Furthermore, various
strategy and models are used by firm for analysing external and internal factors of organisation.
This overall helpful in attainment of desired objectives and goals in effective manner for success
in their future.
7

REFERENCES
Books and Journals
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of moderation
and mediation in strategic management research. Organizational Research
Methods. 20(4). pp.665-685.
Ansoff, H.I. and et. al., 2018. Implanting strategic management. Springer.
Bergh, D.D. and et. al., 2017. Is there a credibility crisis in strategic management research?
Evidence on the reproducibility of study findings. Strategic Organization. 15(3).
pp.423-436.
Ferreira, J., Mueller, J. and Papa, A., 2018. Strategic knowledge management: theory, practice
and future challenges. Journal of knowledge management.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Lak, A., Gheitasi, M. and Timothy, D.J., 2020. Urban regeneration through heritage tourism:
cultural policies and strategic management. Journal of Tourism and Cultural
Change. 18(4). pp.386-403.
Lynch, R., 2018. Strategic management. Pearson UK.
McKiernan, P. ed., 2017. Historical Evolution of Strategic Management, Volumes I and II (Vol.
1). Taylor & Francis.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Siegel, D.S. and Leih, S., 2018. Strategic management theory and universities: An overview of
the Special Issue. Strategic Organization. 16(1). pp.6-11.
Umam, R. and Sommanawat, K., 2019. Strategic flexibility, manufacturing flexibility, and firm
performance under the presence of an agile supply chain: A case of strategic
management in fashion industry. Polish Journal of Management Studies, 19.
Vitolla, F., Rubino, M. and Garzoni, A., 2017. The integration of CSR into strategic
management: a dynamic approach based on social management philosophy. Corporate
Governance: The International Journal of Business in Society.
Wang, Z. and et. al., 2020. Strategic management of product recovery and its environmental
impact. International Journal of Production Research, pp.1-21.
Wheelen, T.L. and et. al., 2017. Strategic management and business policy (p. 55). Boston,
MA: pearson.
Zhao, E.Y. and et. al., 2017. Optimal distinctiveness: Broadening the interface between
institutional theory and strategic management. Strategic Management Journal. 38(1).
pp.93-113.
8

9