Understanding and Leading Change in Organizations

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Organisations where there has been an impact on organisation's strategy and operations3
M1 Different drivers of change along with the types of organisational changes...................5
TASK 2............................................................................................................................................6
P2 Ways in which internal and external drivers of change affect leadership, team and
individual behaviour...............................................................................................................6
M2 Theories and models to critically evaluate organisational response to change...............7
P3 Measures to minimize negative impacts of change...........................................................8
D1 Conclusions and recommendations with valid justifications...........................................8
TASK 3............................................................................................................................................9
P4 Barriers for change and their influence on leadership decision-making...........................9
D2 Critical evaluation of use of force field analysis............................................................11
TASK 4..........................................................................................................................................11
P5 Leadership approaches to dealing with change...............................................................11
M4 Evaluation of the extent to which leadership approaches can deliver organisational change
..............................................................................................................................................12
D3 Critical evaluation of effectiveness of leadership approaches and models of change
management..........................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................14

INTRODUCTION
Change is an important concept which needs to be implemented by all the companies so
that they can sustainably survive in the ever-changing market conditions which also include
changing consumer taste and preferences. Due to increase in globalization and evolving
technology businesses are forced to change their methods, strategies, processes etc. so that they
can minimize organisational cost while enhancing their profits (Al-Haddad and Kotnour, 2015).
This report is based on two companies dealing in similar sector H&M and Arcadia Group Ltd.
which will help in understanding how organisations lead change so that they can survive
successfully in the market. Arcadia Group Ltd. is an international retailing company located in
London, UK which manages fashion retail stores and outlets along with owning the high street
clothing retailers like Burton, Dorothy etc. H&M is a multinational clothing retail company
which is known for its fast fashion clothing for all the people. This report will discuss about the
drivers of change along with their impact on organisation's strategy and operations. Further the
barriers of change are also discussed and their influence on leadership decision-making so that
changes can be dealt with in an appropriate manner.
TASK 1
P1 Organisations where there has been an impact on organisation's strategy and operations
Organisational strategies are the set of plans, actions, structures which are formed based
on the vision and mission of company so that the long-term goals can be achieved. It is important
that an effective strategy is formulated by the company so that it can gain a competitive
advantage in the market which will help it in increasing its sales and thereby its profits. The
dynamic business situations must be analysed so that effective strategies can be adopted which
can help it in dealing with the changes by formulating efficient organisational strategies
(Cacciolatti and Lee, 2016). A comparison between organisation's strategy are described as
follows:
Basis Arcadia Group Ltd. H&M
Political
changes
Impact: Due to the uncertainty of Brexit,
the political situation of UK has been
unstable which has affected the retail
Impact: Due to Brexit the prices of the
company products may rise and also
the delivery of products in UK will be

market as the trade between EU has
become expensive, consumer spending
has reduced on consumer goods and the
fluctuation in currency has also affected
the retail sector.
Strategic changes: As the prices has
increased in all the sectors due to Brexit
the company must change its strategy so
as to make things available to customers
at low prices so that the sales of company
continue to increase. For this the pricing
strategy of company must change from
premium pricing to economic pricing so
that branded clothes can be made
available to customers at low prices
(Cummings, Bridgman and Brown,
2016).
Operational changes: The company can
sell its products on the online platform
which will help it in increasing its sales
and also save itself from inventory costs
due to low customer spending.
delayed which might affect the
company's business in UK. This has
also affected the company's sales and
revenue.
Strategic changes: The company has
adopted a transformation strategy
through which it is offering its products
online, through physical stores and
digital marketplaces. This has helped
the company in increasing its sales
even with the uncertainty in Brexit
which might have affected company
profits.
Operational changes: The company
has increased its focus on developing
customer focused techniques so that
maximum customer satisfaction can be
obtained through feedbacks, use of AI
etc.
Social
changes
Impact: The customer's spending pattern
has changed recently with an increased
focus on spending on studies and
vacations than on consumer goods which
has affected the company sales. Also the
uncertainty in Brexit has decreased the
willingness of people to spend more on
clothes.
Strategic changes: The company needs
Impact: As the number of brands in the
market are increasing the customers
focus are getting distributed among all
the competitors present in the market.
This has affected the company sales
and decreased its revenue (Dawson and
Andriopoulos, 2014).