Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1: Managing the Impact of Changes.....................................................................................1 Part A: Responding to Change.................................................................................................1 Part B: The Impact of Change...................................................................................................3 1) The ways in which the internal and external drivers of change may affect the leadership behaviour, and the behaviour of the teams and individuals........................................................3 2) Measures that can be taken to minimise the negative impacts of change on organisational behaviour.....................................................................................................................................5 TASK 2: Leadership Decision Making............................................................................................7 Different barriers for change and analyse the driving and resisting forces.................................7 TASK 3: Leading Change................................................................................................................8 Covered in PPT...........................................................................................................................8 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Changes are defined as some events or activities that happen within the business environment and affect the operations performed by a company in both positive or negative manner. These changes can be in term of policies, system, technology etc. which support company to achieve success (Beycioglu, Jones and Harris, 2014). TheCharbonnel and walker is a British chocolate manufacturing company which was founded in 1875 and offer products such as chocolate bars, candy etc. This report contains a detailed description regarding changes impact over operation and strategies of company along with internal and external drivers of change. It also includes description regarding measures to minimize negative impact along with different barrier to change and leadership approaches that are used to deal with these changes. TASK 1: Managing the Impact of Changes Part A: Responding to Change Changes are unavoidable in nature and every organisation is required to get adaptable with the changes that get anticipated within the environment in which they work as avoidance of this may affect the overall performance of the company. The main cause of changes that a company is experience is due to fluctuations in trends as well as customer expectations. Hence to implement such changes become very crucial as avoidance of this may affect the sustainability of business (Bin Taher, Krotov and Silva, 2015). For determining the impact as well as manner in which changes get adjusted two medium sized organisations has been considered that are named asCharbonnel and walker and Whitaker's that are UK based organisation and offer confectionery products. Both the organisations are operating in market from more than 120 years which is not an easy task and this become possible as they are flexible in term of their operations and easy get acceptable to changes. As the time changes the lifestyle of people also get changes and result of which people now a days become more health conscious and started quieting the chocolates as it affect their health and well being. Hence in order to deal with such issues both the companies have decide to manufacturesuchchocolatethatdoesn'thaveanynegativeinfluenceoverthehealthof consumers. For this Whitaker's has decided to add dry fruits like walnut, almond etc. to enhance the nutrient level and on other side the Charbonnel and walker has decided to offer sugar free 1
chocolates. These changes has also affected the operations as well as strategies used by both the organisations that can be better understood using following table: CompaniesCharbonnier and walkerWhitaker's Strategic changesIn order to bring sugar free chocolateandpositionitin market place, Charbonnier and walker company is required to change its marketing strategies (Daft and Marcic,2016). For offering sugar free chocolate companywilladoptmarket penetration strategy where the priceofproductkeptlower until and unless it get accepted by customers and later it will gradually increase price with the increase in demand. Fordealingwiththemarket changesWhitaker'shas decidedtolaunchitsnew nutrient rich chocolate which it offered at premium price as the ingredients added for nutrition willenhancetheproduction cost of the company. Operational changesThesechangesarebasically relatedwiththeoperations performedwithinthe organisation. In order to offer thesenewsugarfree chocolatestheCharbonnel andwalkerisrequiredto modify its operations. For this companywillhirenew nutrition guide and also bring newtechnologiesthrough whichthesesugarfree chocolatecanbeproduced Operational changes are very crucial for the company that wanttobringchanges.For developing this nutritious and healthierchocolatethe Whitaker's will hire Nutrition expertswhohavethrough knowledge and can support in formingarecipefornew healthier chocolateso thata better quality product can be formedwhichensuremarket sustainability(Diaz-Rainey, 2
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without losing the taste.Robertson and Wilson, 2017) Drivers of changes:- There are some factors which forces an organisation to bring changes that can be both internal as well as external. The drivers of change for both the organisation are mentioned below:Customers:-The driver behind brining the change in chocolates are customer as they become more health conscious and more focused toward purchasing products that offer them health benefits(Doppelt, 2017). As normal chocolates include processed sugar that create health issues such as obesity, diabetes etc. Substitute products:-These are consider as another major drivers that foster both the organisation to bring chocolates with health benefits in marketplace as substitutes has already entered in market in form of healthy bars, fibre chocolates etc. which is offered by Mars under the brand name snickers. Part B: The Impact of Change 1) The ways in which the internal and external drivers of change may affect the leadership behaviour, and the behaviour of the teams and individuals Change drivers are considered as those factors which foster an organisation to bring changes within its operations to achieve higher success at marketplace. These change drivers can be both internal and external drivers that are present in environment in which business operates and strong influence the individual, team and leadership behaviours. The change drivers for the Charbonnel and walker are mentioned below: Internal driver for changes:-Organisational culture:-It refers to the underlying beliefs, value and assumptions that the people working in organisation holds and manner in which it influence their working pattern (Espedal, 2017). For implementing change of brining sugar free chocolate the Charbonnelandwalkermusttrytoimplementtaskculturewhererolesand responsibilities are delegated as per the capability of individual along with proper leadership which support in ensuring the quality work and successful launch of chocolate. Financial Management:-Finance is considered as most crucial aspect in a business as it ensure effective flow of activities. This the major driver of changes as financial condition 3
ofCharbonnel and walker allow it top invest more in its production and marketing process to offer sugar free chocolate as per the demand of customers. External drivers:- Swot Analysis StrengthWeakness Key strength ofCharbonnel and walker ishigh skilled and competent staff. Change drivers:This strength will act as a change driver forCharbonnel and walker as changescanbeeasilyimplementedbythe workforce efficiently. The major weakness is that some product of Charbonnel and walkerhave complaints that products are lack in taste. Change drivers:This weakness will act as a change driver forCharbonnel and walker as for enhancing brand image they work over improving products. ThreatOpportunity Increasing number of substitute product that offer health benefits. Change driver:-It will act as change driver forCharbonnel and walkeras it try to bring newproductlikesugarfreechocolatethat holds health benefits. The biggest opportunity forCharbonnel and walkercompany is to expand business over several geographical regions. Change drivers:-This will be a change driver forCharbonnel and walker as it can expand businesswiththelaunchofsugarfree chocolate. PEST Analysis Political:-The political condition of UK is stable which is greater advantage for Charbonnel and walker as it act as a change driver because the policies of company will not change frequently (Komives,2016). Under the political stability the individual behaviour will remain constant as their working condition will not get changed. The behaviour of team members will remain positive as their working conditions will not get changes with operational changes. The leader would be able to guide its employees more effectively as policies will remain same despite of any change. 4
Economic:-The economy of UK is considered as fifth largest economy as it contain continuous flow of FDI. Hence the economical condition isgood which help an individual to earn their livings as per their expectations for which they put more efforts. In addition to this team members ofCharbonnel and walker behaviour also get changed as they get more incentives when they work effectively because the economical condition of company will be better (Lawrence, 2015). On other side leaders have enough found to direct their team members toward the accomplishment of organisational goals. Social:-Thesocialfactorsinvolvedemandandexpectationofcustomerstoward company, by conducting investigation over this it has been found that customers want such product that have healthier benefit which will act as change agent. Individual behaviour also get changed with social environment as their personal demand get changed. On other side the team members will be able to learn new things as their work changes constantly as per customer demand. The leaders will be able to enhance their skills as they have to deal with several changes anticipated in market to make product as per demand. Technological:-The technological condition of UK is very much good which support company to bring changes in operations quickly as they have technical assistance. The individual behaviour get changed in positive manner as they become able to learn new aspects. On other side team members will get changes as their work get simplified with the implementation of technology. Here the role of leaders is to behave as a motivator and try to motivate and guide its employees toward right direction. 2) Measures that can be taken to minimise the negative impacts of change on organisational behaviour The business environment is dynamic in nature and because of which several changes get anticipated that left a huge impact over the performance of a company in marketplace(NHS England, 2016). These changes may have both positive as well as negative influence over the organisation, but for achieving sustainability in marketplace and strengthening the position among the rivalries companies must try to bring changes as per the requirement of market. In addition to this it also try to minimize the negative impact of changes for achieve desired objectives.Charbonnel and walker always focuses on offering products as per the expectation of 5
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customers so that they can maintain their sustainability in marketplace by keeping customers satisfied with their efforts. But in order to avoide the negative influence of these changes following measures can be undertaken by Charbonnel and walker:- Charbonnel and walker must perform a deep study over the market regarding the customer expectations, growth opportunity for change implementation and challenges that may found while anticipating changes (Rodd, 2015). This will support in forming an effective strategic plan that help in directing the work toward the accomplishment of set objectives. Company must provide training regarding the production and marketing of sugar free chocolates before starting working over it which support in gaining understanding regarding the manner in which operations must be performed. By getting training employees will be able to understand the effective implementation of new technology that reduces the chances of error. These all are the methods that can be adopted byCharbonnel and walker to reduce the negative impact of changes over business operations. In addition to this the Charbonnel and walker company can also implement changes model which bringing changes which support in minimizing the negative impact of changes. PDCA model:-This framework is basically used by a company for managing, controlling andimprovingtheoperationsperformedbythemasitputmoreemphasesoverthe standardization and minimising the errors by taking effective decision. This model consists of four major elements such as plan, do, check and action. TheCharbonnel and walker company can use this model to minimize the negative impact of changes. The first step in this model will be plan where all the information gathered will be evaluated for forming up an effective plan over which operations can perform (Rogers and Marres, 2016). The next step is Do in which the planned activities will be performed by employees and the result from Do stage will be compare with planned one in Check phase to determine the gap between the two outcomes. At last, strategies will be formulated to to fix those gap and put into Action within last phase. Kurt Lewin's Change Management Model:This framework is considered to be the most effective model for bringing changes in operations and minimizing the negative impact. The Charbonnel and walker company can use this model while implementing changes effectively. This model contains three stages such as Unfreeze, Change and Refreeze. In stage one the 6
Charbonnel and walker company can organise team meeting with key persons to identify the changes for implementation. After which next step 'Change' involve theimplementing the changes that has been planned by providing required training. At last, when employees get clear about the work as well as changes in 'Refreeze' stage people get engaged with new system and get proper guidance regarding the errors. TASK 2: Leadership Decision Making Different barriers for change and analyse the driving and resisting forces The changes are considered to be the major part of every organisation and its functioning because it support a company to offer their services as per the expectation of customers that support in dealing with competition(Rothwell, Stavros and Sullivan, 2015). But there are number of barrier that are present in business environment which a company have to face while implementing changes within their operations or system. These barriers affect an organisation in term of their growth and other operations. Therefore it is crucial for the organisation to overcome these barriers for improving tehir business practices. The barriers that may be faced by Charbonnel and walker are mentioned below:Lack of employees involvement:-One of the most commonly issue that may be faced by Charbonnel and walker while working over sugar free chocolate is lack of employees involvement.Thisisbecausesometimesemployeesgetusetowiththeircurrent operations as well as working process and feel comfortable to work in same manner, as a result of which they pay less attention and interest in new way of performing operations. Governmental regulations:-The another major barrier forCharbonnel and walkerin implementingchangeswithinbusinessoperationsaregovernmentregulationsand standards (vander Voet, Kuipers and Groeneveld, 2015). This is because there are some ingredients whose quantity has been fixed by government that are required to be adjusted by the company in its product for getting permission to serve it in market. With the increase in customer focus toward healthy food,Charbonnel and walkeralso become conscious to improve their product for making it healthier as number of substitute has already arrived in marketplace and trying to shrinking the market size of company. Hence to deal with this challenges the Charbonnel and walker has decided to bring changes in its product and offer a “sugar free chocolate”. This chocolate will be launched by targeting people who want 7
some healthier benefit without losing the taste of chocolate. This product will include high protein as sugar get replaced by fibre that provide great taste along with simple ingredients without any extra preservatives. But for achieving success, company must use Force Field Model which help in identifying the forces that are against or in favour of changes so that proper action can be take to deal with this. The forces are mentioned below: Forces against changes:-Increasing cost:-The ingredients that will be used for producing this sugar free chocolate are unique and harder to arrange as a result of which transportation and other activities enhance the cost of production. Lack of employees involvement:-For producing the sugar free chocolate the production process get changes as a result of which employees are finding difficulty in operations as they not exert much interest toward performing operations effectively (White and Robinson, 2014). Forces in favour of changes:-Customer demand new product:-The consumers are expecting such kind of product to being offered which doesn't harm health and also saves taste. So it act as a positive factor that help Charbonnel and walker in launching its new sugar free chocolate.Product category increment:-As Charbonnel and walker is planning to bring sugar free chocolate then it will support them in increasing tehir product category that in turn support company in enhancing brand image. Government support:-The government basically encourage and support companies when they bring healthy products. This will be beneficial forCharbonnel and walker as they get full support for marketing its product from government (Yoder-Wise, 2014). Hence, through force field model evaluation it has been found that marketing of sugar free product will be helpful as there is demand for such product and government is also supporting. 8
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TASK 3: Leading Change Covered in PPT CONCLUSION From the above gathered information it has been found that changes are essential for the growth and success as they help in improving the business processes. This is because the change drivers foster an organisation to bring changes in its operation for improving efficiency and offer it as per the customer expectations. But to implement changes effectively company must identify the forces in against and favour of changes for effective strategy formation. In addition to this for brining changes company can adopt models live PDCA and Kurt Lewin's Change Management Model which ensure minimisation of negative impact. 9
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