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| | | | | : CONCLUSION 3 LO 1 3 Comparison between two organization where there is influence of change on strategy 3 Drivers of change and types of organizational change 8 LO29 Ways by which internal and external drivers of change affect leadership, team and individual behaviour 10 Evaluate measures that can be taken to minimise negative impacts of change on organisational behaviour 12 ALDI applying force field analysis to analyse the driving and resisting forces and show how they influence decision-making 16 Apply different leadership approaches to dealing

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Table of Contents
INTRODUCTION ..........................................................................................................................3
LO 1 ................................................................................................................................................3
Comparison between two organization where there is influence of change on strategy............3
Drivers of change and types of organizational change...............................................................8
LO2 ............................................................................................................................................9
Ways by which internal and external drivers of change affect leadership, team and individual
behaviour...................................................................................................................................10
Evaluate measures that can be taken to minimise negative impacts of change on organisational
behaviour...................................................................................................................................12

ALDI applying force field analysis to analyse the driving and resisting forces and show how
they influence decision-making................................................................................................16
Apply different leadership approaches to dealing with change in a range of organisational
contexts.....................................................................................................................................17
Effectiveness of leadership approaches and models of change management at ALDI:............19
CONCLUSION .............................................................................................................................20
REFERENCES .............................................................................................................................21

INTRODUCTION
In order to sustain a strong position within marketplace, every organisation is
required to adopt required changes. For getting desired outcomes, business owners
have to understand change and change management in a proper manner. Change is
defined as a phenomenon which leads towards measurable shifts in business position
of an organisation. This measurable shift can either be advantageous or
disadvantageous for an organisation depending upon the type of change initiated by
business (Alavi and Gill, 2017). This assignment is written in context with ALDI which is
a Germany based supermarket chain headquartered in Essen and Mulheim. At present
company is successfully operating at 10,000 stores in more than 20 countries.
Company has a combined turnover of more than 50 billion euros. This report will cover
different organisational examples where change has been carried out in organisational
operation and strategy. Different ways are evaluated in which external and internal
drivers of change can impact leadership, team and individual behaviour. Beside this,
measures are discussed that can reduce negative impact of change. Various barriers
for change are discussed along with different leadership approaches to deal with
change in range of organisational contexts.
Change management is an important aspect in business which is required by
every company. As in ALDI company there were some issues related with sales and
revenue due BREXIT and increased environmental degradation. These issues can be
alter by making changes in goals and plans for future. In this context company is going
to change some of their strategies and operations.
LO 1
Comparison between two organization where there is influence of change on
strategy
CHANGE:
Organisational strategy is defined as a dynamic long term procedure which maps the
direction that will benefits the company in achieving its vision and goals. Basically, it is
3

an expression that describes the manner in which a company is required to evolve over
a time period so that its expectations and desires can be fulfilled.
Change in organisational strategy can benefits ALDI towards new strategic directions
which can help the firm in gaining competitive advantage over rival companies. Change
in strategy can benefit a firm in achieving high growth rates and customer base due to
which high profitability can be attained by company.
Change in strategy can be well defined by comparing different organisational examples.
In this regard, ALDI and TESCO is compared with one another (Alkahtani and et. al.,
2011). In case of ALDI, company prefers to take fast decisions so that control on market
can be maintained where as manager in TESCO prefers to watch out the strategies of
rivals before taking a decision so that high advantage can be enjoyed by company. In
this regard, a comparison chart is mentioned below:
ALDI TESCO
Organizational strategy Due to Brexit there are
many political change
which are faced by UK in a
desired manner. Due to this
purchasing power of people
and revenues of company
has also reduced. In this
regard, company has
adopted the strategy to
have small stores where
every employee gives
proper consideration
towards the needs of
customers. To cut their
unusual costs, company
sells only limited items in
their single store. Due to
TESCO believes that to
attain desired outcomes, a
firm is required to sustain a
strong presence in
international market. But
due to Brexit, UK has faced
political changes this has
impacted market share and
profitability of company. To
overcome this change,
Major strategy adopted by
TESCO is to offer those
products to customers
which are in high demand.
Company offers discounts
on that products due to
which customers prefer to
4

this products and services
of ALDI are low priced as
compared to other rivals
like IKEA and TESCO.
Other than that, there are
environmental changes
which are faced by
company as people are
getting more concerned
about environment.
Because of environmental
changes, workforce of
company also prefers to
collect limited stock in their
stores so that maximum
rate of return can be
achieved. It is analysed that
company is getting high
benefits as policies and
strategies of company are
changed on a regular basis
in accordance with the
situation. Other change in
strategy carried out by ALDI
is providing garden
furniture, kitchen and
bathroom accessories at
their stores on special days.
As these products are not
usually available on grocery
stores, sales will expand
buy them in large quantity.
Prices of products offered
by TESCO are genuine due
to which sales of company
are good. In order to deal
with environmental
changes, strategy initiated
by TESCO is adoption of
measures that will results in
sustainability. In order to
adopt these change,
company introduces new
products in market which
are environment friendly
and do not impact the
health of individuals on their
usage (Anderson, 2016).
Company has also adopted
market development as a
strategic change where
their existing products will
be sold in new market place
due to which sales and
customer base will be
enhanced considerably.
5

considerably.
Operations Due to political and
environmental changes,
Products of ALDI are
available at different
operational stores where
customers can buy them
either by cash or cards.
Distribution system of
company has become
robust where customers are
provided required product
on right place in a timely
manner. This whole
process is managed by
company with the help of
MIS and ERP software that
helps in storing all required
information about
customers. Due to good
performance of
competitors, manager in
ALDI has to change the
operations of company by
modifying them according
to the changing trends. In
this regard, organisation is
adopting modern
technology by updating its
machines and software so
that raw material can be
To reduce the impact of
environmental and political
change, company has
adopted some operational
changes. Operational
processes in TESCO are
organised but there are
some issues which are
faced by company. One of
them is overflow of
inventory that results in high
costs of warehouse. This
problem takes place
because manager of
company orders new stock
on customer demand
without clearing up the old
stock. This has resulted in
excessive wastage of
products. To overcome this
situation, company has
adopted some operational
changes such as adoption
of lean methodology. This
will helps the company in
reducing their wastage
without performing any
complex procedure.
Company is also enhancing
its presence on digital
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transformed into final
products in a simplified
manner. Company has
adopted six sigma so that
defects and errors in final
product can be reduced
due to which satisfaction
level of customer can be
enhanced.
media, so that customers
can get easily access to
products and services
without physically
appearing at stores. In this
regard, company has
formulated different mobile
applications which have
different sections in
accordance with the
products (Bevan Plsek and
Winstanley, 2013).
Due to the carried out changes, there is considerable impact which is faced by
ALDI in terms of revenue, profitability and market share. These changes benefits the
company in enhancing their market reputation and position in a desired manner. Due to
these changes, company is able to enhance its market shares in a considerable
manner. Joint market-share of Lidl and ALDI faces a rise of 12% due to the changes in
organisational strategy and operations.
Source: (Kantar worldpanel, 2017)
Types of organisational change: In this there are different types of changes such as
structural & strategic and people & processes.
Structural and strategic: Any organization find mandatory to redesign structure of
their company due to external environment influence. Structural changes include
goals, administrative procedures, management system and structural
characteristics. Sometimes in normal business operation, it is required for
management to fit firm's strategy to reach goals of that company or sometimes even
to alter mission statement of company in order to demand of external environment.
7

People and processes: This kind of change fluctuates behaviour, performance,
skill and attitudes of employees in any organization. As changing people requires
motivating, interacting in group and leading. Company may require to re-engineer
processes in order to accomplish optimum productivity and workflow.
Drivers of change and types of organizational change
In an organisation, there are two kinds of change which can be widely
encountered. These are internal and external drivers of change. Internal drivers include
policies of organisation, employee law and contracts, working hours etc. External
drivers involves societal norms, fluctuation in current, varied interest rates, change in
technology, political implications etc.
Types of organisational changes
Transformational change: In these change, company implement strategy which
is in favour of both comTimes new romanpany and new change. In case of ALDI,
company can terminate its extra workforce so that new strategies can be implement
without facing shortage of money.
Organisational wide change: In this, firm changes its internal process on a
large scale in accordance with the change so that only advantageous policies and
strategies can be adopted (Doppelt, 2017).
Planned and emergent change at ALDI:
Planned changes are those changes which are controllable. These changes
have a clear middle, beginning or end and these changes are driven by management. In
case of ALDI, company have taken some changes in its operation and strategy. These
changes are planned changes as company has taken them to reduce the impact of
Brexit and other environmental changes. Emergent changes are continual process
related with adaptation & experimentation. These changes have unpredictable impact.
Strategies for change at ALDI:
Due to political change and Brexit purchasing power of people have reduced. In
this context, company has adopted the strategy to have small stores where every
8

employee gives proper consideration towards the needs of customers. To manager
environmental change, company has joined initiative like keep Britain clean etc.
Application of Bohner and Arnold change impact analysis:
Model given by Bohner and Arnold will helps ALDI in identifying the
consequences of changes along with other requirements so that change can be carried
out in a proper manner. There are different kind of impact analysis techniques which are
Trace, Dependency, Experimental.
LO2
Change and the impact on organisational behaviour:
psychological impact of change on people at ALDI:
Any kind of change in ALDI was having impact on organization as well as
employees. It was very difficult for employees to deal with that sudden change it was
impacting on their performance and work. They were not able to accept this kind of
alternation. It was easy when they were given some training according to change and
motivated to perform well as they it was helping them to develop different skill sand
knowledge.
How change impacts on team dynamics and how people are led and managed at ALDI:
At first, it is difficult for employees of an organisation to adopt and implement
change as it they are not properly acknowledged about the change and its impact. In
case of ALDI, employees in starting faced issues while adopting those change and due
to this they faces some conflicts and problems while performing their duties as an
individual or team. But then these changes seem profitable due to which team dynamics
became stronger and they adopt change in a positive manner. In this regard, manager
of company provide required training to workforce so that they can manage change in a
proper manner and company can get advantage out of it.
9

Ways by which internal and external drivers of change affect leadership, team
and individual behaviour
Different external and internal drivers of change can considerably impacts the
leadership, individual behaviour and team behaviour in a direct manner. In respect with
ALDI, different internal and external drivers are mentioned below:
Internal drivers:
 Financial management: Capital and funds are vital needs for a company in
order to perform their business operations in a desired manner. Shortage of
funds and finance can impacts the working of individuals and teams in a negative
manner as they will not be able to work in an organised manner. Appropriate
financial resources will results in proper leadership my manager due to which
organisational productivity of company will enhance.
 Resources: They directly impacts the leadership, team and individual behaviour
within a firm. If company have appropriate resources then all the work can be
carried out in a timely and systematic manner due to which workforce will deliver
their duties in a proper way either as a team or individual. If company faces
shortage of resources, then it will became difficult for ALDI to perform its
business activities due to which organisational productivity will reduce that will
impacts team and individual behaviour in a negative manner (Espedal, 2017).
 Culture: It involves belief, faith and values that are followed by people working in
a workplace. Improper culture at ALDI will demotivate employees to perform well
as an individual or team. Also, if culture will not be suitable, leader will not be
able to manage workforce appropriately due to which organisational productivity
and profitability will reduce in a considerable manner.
External drivers:
 Political: Change in political aspects can impact the funds and resources. ALDI
is required to follow different policies and rules that are formulated by
government. If these laws will not be followed then company may have to pay
fine and taxes that will results in reduced brand image of company. This will
reduces the individual and team performance of employees due to which
profitability will reduce considerably.
10

 Economical: These aspects involve customer behaviour, inflation rate, interest
rate etc. that can impacts the leadership, team and individual behaviour.
Performance of individual and team is reduced when purchasing power of
consumers in less. Due to changes in economic conditions, company can cut
down its expenses of hiring new employees.
 Social: These factors impacts the needs and requirements of products in
marketplace. As demands of services & products changes on a considerable
basis, due to this leader in a company is required to change its strategies
according to market demand. This will benefits the company in gaining
competitive advantage due to which individual and team behaviour will improve
that will results in improved productivity (Fyke and Buzzanell, 2013).
Source: (PEST analysis, 2018)
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Illustration 1: PEST analysis, 2018

Evaluation of drivers of change:
Advantage Most of the changes are internal to an
organisation. These internal drivers of
change benefits in enhancing the
motivation of workforce and sense of
workforce empowerment. Advantage of
external drivers of change are that it will
help ALDI in acknowledging those
decisions which will be beneficial for
company at large scale.
Disadvantages Disadvantage of internal change is that
they are taken by a single person due to
which it is too single minded to be good
for company. Disadvantage of external
change is that it is unsuccessful at long
term. This is because external change
such as political, social and other factors
changes at timely basis
Strength These changes will benefits the company
in enjoying high revenue and competitive
advantage over rival companies.
Weakness These drivers can create chaos in the
working of organisation.
Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
To reduce the influence and impact of change on a firm, there are different
measures which can be adopted by the manager of ALDI. Some measures to decrease
the negative impact of change are specified below:
 Involvement of employees in change process- If staff of ALDI will be included
in the change process, they will feel more value and tries to adopt that change in
12

a more confident and positive manner. This will builds a strong relation between
workforce and employees due to which negative impact due to change will
reduce considerably.
 Expansion of communication channels- If manager in ALDI wishes to
implement change in a proper manner, it is essential for company to expand their
communication and interaction so that employees can discuss with each other if
they faces some difficulty or problem due to the change (Glass and Cook, 2016).
One of the impacts due to organisational change and required measure to reduce the
impact are mentioned below:
Employee turnover: Workers which are working in ALDI from a longer time
period will prefer to work there only as they are well familiar with the work and
organisational culture. But due to new changes, their interest in work can reduce as
they will face difficulty in adopting those changes. This can results in employee turnover
which will reduces the performance, productivity and profitability of ALDI.
For minimising the impact of change on employees, manager in ALDI can offer
benefits, bonus, incentives and rewards to the employees on the basis of their
performance and hard work. This will encourage workforce to work efficiently by
adopting new changes. Other than that giving proper training to workforce to deal with
changes will also helps in retaining employees for long time period.
PCDA model is a framework that can be used by manager in ALDI to reduce the
negative impact of change on the working of an organisation. In context with ALDI,
model is defined below:
PCDA model: This model covers four aspects that helps in identifying different
problems associated with change. This model will helps in improving administration of
ALDI by assisting in appropriate and timely decisions.
Planning: In this step, manager in ALDI will identify problem and errors. In
accordance with that required change is carried out which will helps in sustaining a
systematic structure at workplace (Hallinger, 2011).
Do: Here manager formulate and implement the needed solutions so that impact
of change can be managed in a proper manner.
13

Check: During this step, manager in ALDI is required to confirm the actual result
and compare it with the expected outcomes.
Act: This is the last step where different ideas and solutions are addressed so
that problems can be sorted out in an organised manner.
Responding to drivers of change:
Systems theory and continuous improvement models to predict and proactively
plan for change:
Organisational response to change can be acknowledged with the help of system
theory. It is an effective theory which can be adopted by ALDI in order to overcome the
impact of change in a systematic and organised manner. This theory can benefit ALDI
in resolving the issues and problems which are faced by employees while performing
their duties. As per this model, ALDI needs to relay on governmental and organisational
policies so that changes can be carried out in an expected manner. Also, this theory will
focus on solving problem of employees in a systematic manner. But problem with this
theory is that it only focuses on those aspects which stabilizes the system and this
theory supports only slow and steady change but not radical changes (Kotter, 2012).
Burke- Litwen model to make change process effective and efficient at ALDI
Burke- Litwen model believes that environmental factors are very important driver
for the change. Essential components of organizational success like strategy & mission,
organizational culture & leadership are impacted by any kind of change which oriented
outside the organization.
External environment: It includes factors as legislation, economy, competitions
and markets, all these will have negative effects for organizations. In public sectors local
governmental, other services and legislative changes in health have the direct impact
on the particular organization are need to carry out.
Mission and strategy: This is foundation upon the all activities which has to built.
This will help the ALDI in order to plan strategies related future development and goals
which can be accomplish.
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LO3
Initiated or imposed change:
In case of change imposition, ALDI will be reactant to change. This means that
ALDI will adopt different strategies so that change can be initiated and achieved in an
appropriate manner. Adapting change will benefit the company in attaining those
outcomes which can acts as a path to high revenue and profitability.
Barriers and resistance to change:
Barrier for change are defined as the constraints which takes place during the
change process. These issues and barriers impacts the working and decision making of
organisation in a considerable manner. In respect with ALDI, these barriers are
mentioned below:
1. Poor employee participation: In order to implement changes in a desired
manner, it is essential for the workforce of a firm to participate in an active and confident
manner. Without appropriate participation, it is not possible for the manager of company
to carry out required changes. If employees will not participate actively, they will feel
uninterested that will results in enhanced employee turnover. If ALDI will offer required
information to the workforce then they will be able to understand the vision of company
in a clearer manner. Hence, if employees will be treated as a valuable asset of company
only then they will accept decision of management in a positive way.
2. Rules and regulations of government: Different policies and rules which are
formulated by the government also acts as a barrier while implementing change. These
barrier reduces the performance and profitability of company in a considerable manner.
In order to gain desired results by implementing changes, company is required to follow
rules which are formed by government. Following these rules and policies will benefits
ALDI in capturing large market. This barrier has also impact on the decision making
process of company as strategies and policies of ALDI will be changed if government
policies will be changed (Nelson‐Brantley and Ford, 2017).
15

3. Improper training and development: This aspect is also a big barrier in
implementing change. If workforce of ALDI is not able to understand about change, then
it is not possible for them to adopt them change in a efficient and systematic manner.
Due to which organisational productivity will reduce. It is essential for the manager in
ALDI to provide essential training to employees so that they can implement new change
without facing any difficulties. If employees will be familiar with changes, they will easily
accept the decisions taken by management and leaders.
ALDI applying force field analysis to analyse the driving and resisting forces and
show how they influence decision-making
Force field analysis is a vital tool for companies as it supports employees in attaining a
common goal. This analysis is easy to implement and give quick results against
obstacles. But in case of moral situations, this analysis is not influential as hindering
forces increases the stress level among employees (Salman and Broten, 2017).
(Source: Force Field Analysis, 2018)
Force field analysis: According to this analysis, large number of individual faces
problem while adopting change. According to them, adopting change will be of no use.
This analysis will provide appropriate framework to LADI so that change can be carried
out in an organised manner. This analysis benefits the manager in ALDI to take
effective decisions by identifying which forces are in favour and which are against. This
model will also specify the requirement of change in the professional life of employees
(Quinn and et. al., 2012). There are two kinds of forces which are considered in this
analysis i.e. driving and restraining force. Restraining forces are the issues that hinders
change. It impacts decision making in a negative manner. Driving forces assists change
and helps leaders in ALDI to take effective decisions by formulating required strategies.
Schein’s organisational culture model application at ALDI:
It is also known as onion model. It will benefits ALDI in creating cultural change in
a proper way. As per Schein, management in ALDI is required to discuss with its
16

workforce about different activities so that it can be acknowledged where culture
change is required. It will became a base for culture change and transformational
process will be carried out for benefit of ALDI
LO4
Apply different leadership approaches to dealing with change in a range of
organisational contexts
Leadership is very important for any organisation in order to implement the
change in the working style of employees. The leaders should use effective leadership
style so that they can motivate their employees for accomplishing the desired
organisational goals. Some of the styles which can be used by the leaders of Aldi are
discussed below:
Democratic Leadership: This style is used by leaders when they have to
consider the suggestions and opinions of their employees for taking the decisions using
their active connections. Through this style, leaders of Aldi can provide their maximum
support and efforts for enhancing the working performance of the employees as their
issue and problems can be reduced using the shared ideas of other employees (Storey,
2016).
Situational Leadership: It is an important style which is used by the leaders for
handling the different challenges and situations. By following this style, leaders of Aldi
can adopt suitable style which can be used for resolving the complex issues or
situations that are impacting the performance of their employees. Through this style,
leaders of Aldi can implement the change properly without any issues as these leaders
have the ability to determine and understand the situations so that the style can be
changed accordingly.
Initiated of imposed change at ALDI
The managers of the Aldi implemented the strategy and operations change due
to the failure of the operations as well as the productivity. The managers saw the
performance gap in the estimated and achieved performance and decided to implement
17

the change in order to improve the results and performance of their employees and
business so that the firm can achieve the sustainability at the market. The company
developed new strategies and implemented them along with the new machinery and
equipment for improving the efficiencies and operations.
Lewin's Change Management Model:
This tool is used by the companies such as Aldi when they have to adapt the change in
their organisation with the help of three stages as discussed below:
(Source: Lewin's Change Management Model, 2018) UnFreeze: It is the first stage in which employees are encouraged by
management for adapting the change in their working for getting improved
results. Leaders of Aldi are using transformational leadership approach for
motivating the employees to adapt change so that their performance can be
enhanced. Change: It is the second stage in which employees adapt to change and modifies
their working style. IN this stage, Leaders of Aldi can use the participative
leadership style for resolving the issue of change by using the ideas from
employees.
 Refreeze: It is the last stage in which employees completely adopts the change
and becomes happy in their working. Leaders of Aldi can use supportive
leadership style so that they can support the employees in executing their
assigned work (Tang, Lu and Hallinger, 2014).
Kotter’s 8-step Change model application at ALDI:
This is another change model which can be used by the organisation for handling
the change. This model was given by John Kotter which states that managers needs to
use the 8 steps for handling the changes effectively. These 8 step are as follows: Create A Sense Of Urgency: Through this step, managers of Aldi can see the
need for change through a bold, aspirational opportunity statement which
communicates the importance of taking actions immediately. Build A Guiding Coalition: The managers of Aldi needs volunteer in this step in
order to guide, coordinate, and communicate the activities to employees.
18

 Form A Strategic Vision And Initiatives: In this step, the managers of Aldi
clarify to employees that the future will be different then past and the ways
through which future can be shaped through initiatives linked directly to the
vision. Enlist A Volunteer Army: This step states that the large-scale change can only
occur when individuals rally themselves for a common opportunity. They should
convey the importance of change so that the employees can move in the same
direction. Enable Action By Removing Barriers : For manager of ALDI it is very much
important for removing barriers, so that their employees of them perform better
and adopt change. Generate Short-Term Wins : For adopting changes in effective manner,
manager of ALDI is required to make short term tasks and have complete them
successfully so that long term goals can be achieved. Sustain Acceleration : It is very much important for manger of ALDI to
accelerate their success after first one. This will help them in getting restless
success during change.
 Institute Change : For manager of ALDI, it is very much important for them to
make connection among new behaviours and organizational success. As this
help them in making change permanent.
Effectiveness of leadership approaches and models of change
management at ALDI:
According to Alavi and Gill, (2017) Lewin's Change Management model is
essential for the organisation in maintaining and managing the change in proper
manner. By using this model, firms such as Aldi can motivate their employees for
adopting the change in their working so that the organisational goals can be achieved in
predetermined time. BY using this model, employees of Aldi can perform their work
19

without facing any issues as leaders are supporting them using the supportive style of
leadership.
According to the Anderson, (2016) this model of change is not fruitful for the
organisation such as Aldi in different situations. This model cannot be applied to every
situations in adopting the change due to which it can fail in managing the change.
CONCLUSION
From above mentioned information, it is concluded that there are two drivers of
change i.e. internal and external drivers. These factors plays a considerable impact on
the working of ALDI. Internal drivers will Benefits Company in managing their funds,
resources so that high profitability can be acquired. External factors such as political,
social, technological and economical will assists in understanding external business
environment in a proper manner. With the help of these drivers company can manage
its materials, man power that will results in improved market shares.
Some recommendations are given below:
 Before carrying out change, a company is required to identify its needs by
consulting with employees. This will allow the employees to feel that they are
valuable for company which will motivate them to deliver their best performance.
 Manager in company is required to forecast post and pre impact of change on
organisation and workforce (Latham, 2013).
20

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