Change Affects Business Operations and Strategies : Report

Understanding and
Leading change

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
P1 The impact of change in organisational strategies and operations....................................1
P2 How internal and external drivers affect leadership, team and individual behaviour.......3
P3 Measures taken to minimise the impact of change in organisation...................................4
P4 Different barriers of change and its influence in decision making...................................5
P5 Different leadership approaches to deal with change........................................................7
CONCLUSION:...............................................................................................................................8
REFERENCES:...............................................................................................................................9

INTRODUCTION:
In every business, there comes a stage where they have to make changes in strategies and
plans. This helps in growth and development of business. These changes are related to process,
systems or procedures. Changes are made due to internal and external factors that directly affect
the business operations (Mackey and et..al., 2017). It helps business to deal with future changes
in long run. This report throws light on ways in which change affects business operations and
strategies. How internal and external drivers affects change to be implemented. It also shows
barriers in implementing change and different leadership approaches that should be followed to
deal with change.
For undertaking present assignment, organisations selected are Zara and H&M. These
organisations belong to retail sector and are operating their business all over the world. The
existence of companies on global level requires frequent change management to identify and
fulfil customer’s demand. Thus, this report will show impact of change in their strategies and
operations
P1 The impact of change in organisational strategies and operations
Every business requires change at a particular stage and time. It helps them to grow and
expand. Also, by implementing change they can survive in long run. Making changes in business
is known as change management. It states that business goals and objectives are modified with
regards to customer demands (Anderson,., 2016). Implementing change affects organisation in
negative or positive way. This depends on how managers and employees react to these change
and adopts them. Also, what and were changes will be implemented depends upon the nature of
organisation and type of change. However, with this there is increase in business efficiency and
performance. It enforces them to modify or develop new strategies to achieve their goals and
objectives.
Now, in Zara changes were made to develop new products to fulfil the needs of
customers. It was done to expand their business in new and existing markets. Managers
developed strategies on how to create new products. Employees were given tasks to identify
change in taste and preference of customers (Meredith, , Rosell, and Davis,, 2016). For this Zara
implemented new technology in production process. This forced workers to adopt this process
and improve their efficiency. With this Zara developed new products. Managers created plans
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and assigned tasks to employees. They were given new roles and responsibilities. New process
was developed and new people were hired to work upon it. It encouraged older ones to adopt and
implement change.
On the other hand H&M implemented change to improve their product quality. It was
done to retain their customers and increase customer satisfaction. For this H&M adopted new
ways of producing products, they provided training to employees on how to work in creative way
so that product quality can be improved. Also, managers assigned new roles and tasks to
employees for improving their performance (Hay,, 2017). Moreover, leaders changes their style
and encouraged employees to adopt changes. New techniques and tools were installed in H&M
to improve product quality. This enabled employees to work in different way. With this H&M
operations and goals were modified. Also , it helped them to create product at low cost and of
high quality. Thus, by implementing change in process H&M were able to retain customers and
gain market share.
Types of organisation change-
 Structural- This change occurs within the organisation. It is related to change in
employees, managers, etc. and policies, procedures, etc. It is done to bring ease in
business operations and maintain the smooth flow of organisation.
 Strategic- In this changes are done in goals, objectives, etc. of organisation. The external
factors have a great impact while making these changes. It involves changing the
products, services, etc.
 Process- In this the process or methods are modified to bring efficiency in working of
employees (Ryan, 2016). It is done to get better results and bringing creativity in
business operations. This affects the employee productivity and improving overall
business performance.
 People- It refers to bring new talent in organisation to provide ease to business
operations. The new ones hired brings new ideas and innovation in work. It motivates
others to work harder.
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