Business Model Analysis and Decision Making

This assignment requires students to critically analyze a specific business model, focusing on its influence on effective decision-making processes within the firm. The analysis should delve into how the chosen model contributes to enhanced productivity and profitability. Additionally, students are tasked with examining the impact of economic reforms on the firm's growth and social progress. The assignment draws upon various academic sources, including books, journals, and online resources.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1: Compare various organisation and the impact of change in an organisation strategy as well
as operations...........................................................................................................................2
P2: Internal and external drivers of change that effect leadership, team and individual
behaviour in organisation.......................................................................................................3
P3: Measures that can minimise negative impact of change on organisational behaviour....5
TASK 2............................................................................................................................................7
P4: Barriers for change and determining its influence on leadership decision making.........7
TASK 3............................................................................................................................................9
P5 Different leadership approach which deals with change in organisation context.............9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................10
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INTRODUCTION
Business operate in dynamic environment due to which it gets affected by both internal as
well as external environment due to which they build strategy in such a manner company gets
competitive advantage over others (Agarwal and Whalley, 2015). Thus, organisation must
understand the requirement of changes and must adopt it to gain long term success. For better
understanding ASDA company has been selected which is supermarket retailer of UK. It provide
various types of product to the customer such as grocery, financial services as well as general
merchandise. This report cover following topics such as various organisation that impact the
organisation strategy and operations. Determine internal as well as external drivers that affect
leadership, team as well as individual behaviour. Along with that it carries measures taken to
minimise negative impact of change that affect organisation behaviour. Furthermore, determine
different barriers that can influence leadership decision making power and explain different
leadership approach.
TASK 1
P1: Compare various organisation and the impact of change in an organisation strategy as well as
operations
Business run its operations and provide quality services to the customer with the motive
to gain long term sustainable development. There are several changes that pertain in the external
environment of an organisation due to which business should take precaution to sustain in
dynamic environment (Bannan and et. al., 2018). Thus, business should build its strategy as well
as strengthen its team it such a manner they are not reluctant to changes. Like, a successful
organisation does not only maintain their existing technology or innovation but also upgrade it
with the changing requirement of external market. In context to ASDA company which is a
customer centric company as they have always given preference to their customer which helped
to shape the character of company. For instance, with increase in number of people working
outside and increase in usage of electronic device company made strategy for delivering online
services to its potential customer. Thus, adoption of such strategy provide convenience to
customer and helped the company to perform its operations smoothly. Additionally, respective
company has successfully achieved various milestone such as resident of UK can receive their
orders within 60 seconds or use of - Identify and understand when the auditor will undertake
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substantive audit procedures in response to specific assessed risks of material misstatement.
Google home to conduct voice activated shopping and so on. Similarly, in context to Tesco its
internal department formulated various strategy and changes their existing way of doing work.
Further, due to the crises faced by company like due to gender discrimination. Moreover,
company made uniform policies for all its member and rebuild its image by changing its rules
and regulations. Therefore, significant changes adopted by ASDA company in comparison to
other are defined below:
Basis of difference ASDA Ocado
Structural changes ASDA adopt hierarchy
organisation structure within
which there are few people at the
top who has the power to take
major decision related to
company like there are seven
layer who can directly linked
with the CEO of organisation.
Thus, this structure is adopted by
company to maintain better
coordination and control within
company.
As Ocado company eliminate
the various layer of
management due to which
they have adopted flat
organisation structure. It
include few level of
management to enhance the
coordination but can sometime
overburden and confuse the
internal management while
taking vital decision (Beech
and MacIntosh, 2017).
Strategy As company has adopted
hierarchical structure due to
which the experts makes
significant strategy as per the
situation which helps to reduce
the conflict that pertains while
performing business operations.
Along with that it keeps on
modifying its strategy to attain
organisational objective suitably.
It has adopted flat structure
which include the role of both
employee as well as employer
to make significant strategy by
taking favourable decision for
organisation. Moreover,
modifications is done in
existing ones to enhance the
growth of company.
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P2: Internal and external drivers of change that effect leadership, team and individual behaviour
in organisation.
External factor: External factors are the factors that pertains outside the organisation
due to which organisation cannot control them. But organisation can analyse the political,
economical, social as well as technology factors to control its affect on the performance of team
member as well as in an individual within organisation (Carroll, Gonzalez-Vicente and Jarvis
2019).
Political: There are various factors such as legislation, customer right, European Union
regulation as well as taxes that can affect the performance of ASDA company. Thus, company
must analyse the political environment to in order to maintain leadership style, stable
performance of team as well as individual behaviour for organisation. For instance, the manager
of selected company should anticipate the behaviour of political environment so that right
strategy can be implemented on time (Díaz, 2013). Thus, further instigate the leader to adopt
possible changes so enhance the performance of company, individual as well as team.
Economic: Economic factor include inflation rate, disposable income, demand and
supply, competitive pressure and so on which needs to be considered by ASDA company. As
there are various competitor of ASDA such as Ocado and Sainsbury which build lot of pressure
on company to adopt most suitable strategy that does not affect the performance of team
member as well as individual performance for company. Like, during the time of inflation the
demand within an economy decreases this company must build it strategy in such a manner it
receives high sales growth.
Social: Social factor refer to the lifestyle, preferences, attitude, culture and ethics of
people that ASDA needs to understand in order to introduce innovative product in the market
based on requirement of customer. Thus, it helps the company to build effective segmented
strategy for individual, team member as well as organisation. For instance, respective company
also segmented the older as well as retired employee for their non food item such as optical
glasses, medicine and so on.
Technology: With the advancement of innovative technology respected company
extensive use mobile application and superfast broadband connection to cater the customer
through both online as well as offline platform. Thus, manager make decision for adopting latest
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technology for which leader provide training to their staff to enhance their skill set. This helps
the company to maintain the team work and enhance the individual behaviours to achieve long
term profitability within the organisation (PESTEL analysis of ASDA, 2018).
Internal factor: These are the factor that can affect the leadership, teamwork as well as
behaviour of an individual due to which organisation analyse its strength and weakness in order
to identify opportunity and face the threat that can affect the organisation, team as well as
individual performance.
Strength
 Wide range of goods and services like
grocery item and financial services.
 ASDA company engage their
customers through social media and by
receiving valuable feedback as well as
reviews from them.
 Company remain active to perform
corporate social responsibility due to
which they have formulated sound
reputation in society (Dori, Mevarech
and Baker, 2018).
Opportunity
 Although company expanded its reach
in various food and non food item due
to which there are new areas such as
jewellery and pharmacies where
company can expand its operations.
 Strategic alliance with other company
can help the company to gain
competitive advantage.
Weakness
 Though company earn good revenue
from its home market that is UK but it
has limited presence in global market
ass compare to its competitors.
 As the government of UK has imposed
some restriction on complex or big size
of store due to which respective store
maintain only medium or small outlet.
Threat
 Company's profit margin is low as they
maintain their low price to overcome
competitive pressure
 Threat of substitution from existing
competitor as well as price war with
other retailers are challenging for
company
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P3: Measures that can minimise negative impact of change on organisational behaviour
It is vital for an organisation to adopt changes like use of innovative technology if they
want to overpower their competitor. Though changes are something which is necessary to adopt
but changes the function as well as performance of business due to which employee at times
resist changes. So the role of ASDA company managers is to adopt favourable strategy for both
company as well as employees so that employees remain motivated to achieve the objective of
organisation. Thus, ASDA company has adopted Burke Litwen model which is defined below:
Burke Litwen model: This model includes twelve elements which are connected with
each other and helps in minimizing the implication of negative issue within an organization.
External environment: It is significant for the organization to have better understanding
about the external factor such as competition, legislation and consumer behavior. Better
understanding of these factors helps in better management of business operations.
Mission and strategy: Whether it is vision or mission of respected company are
formulated by upper level management. Thus, these strategy help the organization to maintain its
position in competitive environment as well.
Leadership: The role of leader within ASDA company is to guide the internal staff or
member to work as per the requirement without showing any resistance towards the changes.
Selected company has adopted task oriented leadership style helps in maintaining the
cooperation as well as smooth performance of business.
Organization culture: Different organization has different culture which needs to be
abide by internal member. ASDA company has uniform rules and regulation for each level of
management which helps to minimize the negative impact opf changes. As everyone remains
determined to adopt change successfully.
Structure: There are various structures and among them company has adopted hierarchy
structure where each level has its own responsibility, decision making ability. Therefore, such
structure are adopted to better handle the situation.
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System: Company has systems like IT services ass well as customer service support that
needs to be enhanced with the time. This helsp in p[roper management of both employee as well
as organization.
Management Practices: It include the activities of manager while preparing and
implementing overall strategy, optimum utilization of resources as well as managing their
relation with employee. Hence, it helps to deal with any negative circumstances effectively.
Working climate: It refer to the working environment which is related to the cooperation
among employee, experience of an employee, rewarding facility and so on. Such progressive
environment does not control employee to adopt changes.
Task and skill: It refer to the skill or knowledge of an employee to link and make
positive effort for the organization effectively. Thus, respected company must make intensive
effort to enhancing the skill of employee that will help them to work as per the changing
environment.
Individual values and need: An individual has there personal motioves as well while
working in an organization like salary hike, promotion and so on. Thus, respected company must
take care of it as well because such extrinsic motivation factor helps the organization to attain
long term success and overcome any negative barrier associated with change in working
environment.
Motivation level: Motivation helps to influence the behavior of employee and stimulate
them to perform task effectively. Intrinsic as well as extrinsic motivation can helps the
organization to adopt the change, upgrade their technology as well as way of doing work.
Therefore, adoption of such factor helps to bring successful change within the
organization by eliminating the chances of negative consequences. Moreover, the dominant
factor that causes change in environment exibit at external environment.
TASK 2
P4: Barriers for change and determining its influence on leadership decision making
The main barrier faced by organization is lack of involvement of an employee to adopt
new culture which hampers the decision making process (Forti and Jong, 2014). Though
changes are uncertain but successful leader encourages employee to adopt changes by showing
them right direction. It helps in carrying out business operations successfully by making effective
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decision for future. Thus, ASDA company has adopted Force Field analysis to overcome the
barrier for changes and influence the leadership decision making in favor of company.
Force Field analysis: Force field analysis was developed by Kurt Lewin and is used in
business in order to make efficient business decision. It creates the equilibrium among the force
that instigate then organization to adopt changes as well as internal environment that resist the
changes. Thus, organization can only accept the changes when the external drive or pressure for
change is high and resistant is low or weak in comparison. In addition to it driving force helps
the organization to understand the need to adopt the changes whereas, restraining forces pull
back the organization in order to ignore the changes. For instance, the customer of ASDA wants
this company should serve wide range of goods by including more items in their food as well as
non food category which is a driving force. Whereas, on contrary the government of UK has
restricted the size of retail store due to which company finds difficulty in order to expand their
product range that is a part of restrain factor. Some of the essential stages of force field analysis
are defined below:
Change substance: With change stage the manager of ASDA company will determine
the essential changes that company can adapt in future to gain long term competitive advantage.
Identification of change force: It is not necessary that company will only experience
profitability if it makes strategy to adopt changes, thus there is a degree of risk associated with
changes as well. The role of management is to identify the risk that company can bear if it adopt
the changes. Hence, it helps in making favorable strategy for company.
Identification of force against alteration: Here the manager of ASDA company
consider various alternatives that company can select in order to provide benefit to the firm for
long run.
Score assign: Herein, ASDA company gives the score to the modification made by
company so that company can receive the maximum advantage from the changes.
Evaluate as well as execute: Within this stage manager of selected company measure or
evaluate all the essential changes adopted by company which helps in effective execution of plan
in order to attain the organizational success (Lyons, 2015).
Driving forces of ASDA company
 Customer want company to cover various food or non food item, so that they can get
various types of product under one roof.
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 ASDA company wants to remain ahead of their competitors due to which they are more
willing to adopt innovative technology that can satisfy the need of customer in an
effective manner.
Resisting forces of ASDA company
 Adoption of new innovation or technology require huge capital that decrease the liquidity
of company. Along with that it require time to train the employee and implement the
changes.
 Company faces lack of employee support or involvement when it adopts the changes
which can affect the relations between employee as well as employer.
Barriers of change:
There are various types of barrier that can hinder the changes in an organisation, some of
them are defined below:
Lack of effective communication: It is significant for an organisation to maintain the
effective communication among management as well as employee. This helps to maintaining the
transparency by sharing the opinion, idea as well as viewpoint of various member. Along with
that it enhances the relation of each other. On contrary if company lacks in maintaining effective
communication then adoption of any change will cause the resistance from the employee as they
are not familiar with the importance of changes. Thus, it is essential for ASDA company to
maintain the better communication in order to minimise the barrier to change.
Employee resistance towards change: Usually employee do not prefer to change their
old rituals or habit of doing work. Similarly, the staff of ASDA company are also somewhat
reluctant to changes. Thus, the role of leader is to make staff realise about the requirement of
changes for company. They can also discuss that what negative implication company has to bear
if they do not adopt the changes on time. Therefore, such method help employee to remain
motivated and adopt changes successfully.
Driving and resistance forces influencing leadership decision making process
Driving forces are external force that arises due to change in technology or change in
existing requirement of customer (Streimikiene and et. al., 2016). Moreover, such pressure helps
the company to adopt the desirable changes by making effective plan, policies as well as adopt
favourable decision making that influences the behaviour of employee to adopt desirable
changes. Whereas, Resistance force refer to lack of employee engagement, involvement as well
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as support to adopt the changes. This causes the barrier for company due to which leader makes
the employee understand the circumstances and encourages them to abide by the decision made
by company to achieve sustainable development.
Therefore, leadership style plays an essential role to motivate the employee by
participating in training and development programmes. Along with that employee are realised
the importance of driving factors to adopt the changes. Therefore, clarity in though and
communication among leader as well as staff leads to cooperation and ends in formulating
effective decision making by minimising the resistance of employee.
TASK 3
P5 Different leadership approach which deals with change in organisation context
Lewin's change model: If an organization will remain stagnant then it will always
experience decline as organization gets affected by both internal as well as external factor still
mostly employee remain reluctant to changes. Thus, to minimize the negative impact because of
changes on organization Kurl Lewin has developed Unfreeze – Change – Refreeze model (Du
and Pan, 2016).
Unfreeze stage: Within this stage employee become familiar that selected organization
will adopt changes due to which they their day to day routine activities will changes. It include
various emotions of employee such as impatience or denial. Here the role of manager in ASDA
company is to communicate with employee and make them understand the importance of
changes and how can can help employee as well as organization. All the data or affairs are
presented to the staff so that they willingly accept the new method of performing work. Further,
by the end of this stage employee take constructive decision in order to let go their old custom or
method of performing task. Therefore, this stage brings huge transformation in the thinking
ability of an individual by clearing all their doubts regarding changes.
Change stage: After unfreezing stage manager of respective company implement the
changes in a very short span of time (Eisner, 2015). The reason behind this is that the managers
don't want employees get back to their old habits of doing the work as they are more comfortable
in old rituals. Moreover, the organization culture must be cooperative as transition from
unfreezing to change stage takes time as it let the employee to move at new direction. Therefore,
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within ASDA company this stage helps to move employees leaves the old method and follow
new and more effective method of doing task.
Refreeze stage: Here at this stage the changes adopted by company are solidified also
employee are less likely to get back to old habits. In addition to it managers of ASDA company
supervise the performance of employees by directing them right direction, even employees
realize that they cannot get back to old habits due to which they face the new situation
effectively.
Therefore, Lewin's change model that include three steps such as unfreezing, change as
well as refreezing change the company as well as its employees to cope up with the negative
changes (Osentoski, 2015). This helps the ASDA company to adopt change the behavior of an
individual as well as team towards the changes.
In recent time understanding various changes and adopting new and effective leadership
and management approaches are very crucial for any organisation to react in tough business
situation. In ASDA essential leadership style are consider to be useful as it support to motivate
employees and make them work for better result in future. Effective management aid an
organisation to accomplish desired goals and objectives in specific time frame. The presentation
discuss the several leadership method that are supportive to deal with changes.
Different leadership approach:
Situational leadership: - As per this style of leader various conditions are to be sorted
by responsible leader in different style. This support leader to make meaningful decision so that
current changes can be handled and better plans are made for future alternation in business. In
respective company, there is a always being conflict between staff member because of overtime
working.
Democratic leadership: - The democratic leadership is also known by the participative
leadership. In this type of leadership, leaders involve their followers in all important decisions.
As well as leader provides the rights and authority to the followers that help in boosting
confidence. In case of ASDA company, leader will divide the rights and power in the employees
so that they can take important decisions individually.
From the above discussion it has been concluded that organisation must prefer most
suitable leadership style that helps in maintaining the better coordination within the team. Along
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with that it helps to influence the behaviour of employee to achieve productivity as well as
profitability. Thus, better leadership style is adopted to accept the changes successfully.
CONCLUSION
From the above report it has been determined that organisation function in changing
environment due to which it needs to adopt changes with passage of time if it wants to survive
for long duration. Thus, organisation must adopt effective decision while considering the
external as well as internal factor that can affect the business process. Company can adopt Lewis
management change model that helps in minimising the negative affect of changes. Along with
that implication of force field model analysis helps the company to make effective decision and
enhances the productivity as well as profitability of firm.
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Osentoski, N. J., 2015. Changing from the inside out: Leading organizational change as an
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Online
PESTEL analysis of ASDA, 2018. [Online]. Available through:
<https://www.howandwhat.net/pestel-analysis-of-asda/>
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