Understanding and Leading Change - AGFA

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1: Ways in which change impacts on organization's strategy and operations...................1
LO2:Evaluation of influences of drivers of change .............................................................4
Evaluation of how change will have affected leadership, individuals and team behavior.....7
LO3:Influence of barriers of change on leadership decision making.....................................8
LO 4: Application of leadership approaches on change initiative.......................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Understanding and Leading Change refers to preparing all the necessary requirements
that will help the organization and its members to absorb change and solve the problems which
arises because of implementation of change.
AGFA is a German multinational organization headquartered in Mortsel, Belgium which
manufactures, develops and distributes both digital and analogue imaging systems and products,
along with various IT solutions with annual revenue of 2.247 billion Euros. Golden Wonder is a
snack manufacturer organization basically producing snack foods, crisps, chips etc. It is a British
organization headquartered at North Lincolnshire, United Kingdom and owned by TAYTO
(Northern. Ireland) Limited with annual revenue of 280 million dollars.
This study will provide an idea that how change impacts an organization in terms of
strategy and operation, all the internal and external drivers which affects organization in terms of
leadership, team and individual behavior will be discussed (Allen, D.D., 2019). Along with that
barriers of change and its influence on decision-making and range of leadership approaches will
be discussed.
LO1: Ways in which change impacts on organization's strategy and operations.
 Change: Refers to the process through which an alteration is made in operational
method, strategy, technology and structure of an organization to get benefit out of it.
 Change management: Properly organized approach to cater change or alteration of
organizational processes and goals. Its purpose is to controlling, implementing and
helping human resource adapt to change (Neumann James and Vince, 2019).
Types of organizational change:
 Structural and strategic: structural changes cater to changes made in organizational
structure and process of structure whereas strategic change caters to overall change in
strategies, goals, objectives, vision and mission of the organization.
 People and processes: these are the changes made in processes of the organization
which are related to human resource. These changes could be in policies or procedures
related to human resource or process of the organization (NHS England, 2016).
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Drivers of change in AGFA:
Constant improvement and changing technology was main driver of change in AGFA. As
time passes one thing which keeps on changing is technology. It cannot be determined in
advance that what could be the next big thing in technological aspect. Same was the case in
terms of photographic and imaging market which is purely based on technology. AGFA
understood this and invested huge amounts in research and development and in squiring and
developing latest technology. AGFA used the constructive brains of employees and also
outsourced for constant research and development and repeated market research to keep up with
the pace of technology and emerged as leader in technological terms (Park, 2019).
Impacts of change:
 Industry shifted towards use of digital imaging in large extent.
 AGFA applied approach of getting there first which means developing new products
through technological innovation and selling these products to customers who are well
prepared to use these products while competitors tried to develop quality product at
affordable price.
 AGFA developed better products and provide customers wide range of product so as to
provide customers greater flexibility and choice.
Change affecting organization:
 AGFA shifted its focus towards developing digital imaging and invested huge amounts
for acquiring technology and research and development.
 AGFA did large scale investment with high amount of risk involved.
 AGFA started to produce wider variety of products for customers.
 AGFA entered new market sectors and formulated strategy accordingly
 Due to requirement of technologically upgraded products AGFA adopted strategy of
investing huge amounts in innovations and developing new products..
Drivers of change in Golden Wonder:
Dynamic environment and changing taste and preferences of customers were main
drivers of change in golden wonders (Smith, 2016). They had market oriented approach instead
of product oriented approach therefore designed and developed products according to market
demand. Pace of life was getting fast people demanded snacks that were easy to eat and cheap.
Golden wonder understood this and developed crisps and chips according to the market
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environment. Then time changed and people shifted towards healthy food, they wanted to know
contents and food producing procedure, they wanted to lose weight, look good and wanted to
have food which is rich in nutrition along with this government also made efforts to encourage
changes in diet of people by making it compulsory for packed food producers to display
ingredients of the food item. Golden wonder also took advantage of this by producing product
which was healthy and had less fats, which became a hit since its launch. This is how golden
wonder developed a nice market with customer’s desire to eat healthy.
Impacts of change:
Golden wonder determined the need for quick snack which was ready to eat and tasty
along with pocket friendly and designed products accordingly. Golden wonders conducted
market research to determine needs of market (Qian and David Walker., 2017). This need of
rising requirement for snack food was fulfilled by Golden wonder products which made it a hit.
Golden wonder realized need for healthy snack through market research and designed low fat
products to cater developing segment of health conscious customers.
Golden wonders earned profit because of constant market research and developing new products
according to the results obtained by market research which made it popular (Turner and Kim.,
2016).
Change affecting Golden Wonder:
 Golden wonder was constantly in pressure to develop products according to the market
research. They have to develop new products and market it for making it popular so that
it can attract more and more customers. There were chances that their product may fail or
results of market research are not appropriate.
 More importance to market research and development of new product which is in
accordance with needs of the customers was given.
 Strategy was formulated by management to cater changing environment and focused on
developing new products.
AGFA Case study over view:
AGFA is an organization which is mainly involved in developing technological products
which are consumer imaging, graphical systems and technical imaging products these products
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are used in various sectors which are photography and editing, graphic industry for scanners,
laser image, medical industries, aviation and industrial sectors for industrial imaging, X-ray,
motion pictures, micro graphics etc. AGFA was successful and profitable as it changed itself
with time. AGFA constantly invested huge amounts in acquiring new technology, research and
development for developing new products and always aimed at getting there first and developed
wide range of products for customers (White., 2017). AGFA always aimed at technological
advancements and evolved as leader in technological advancements. It keeps an eye on
competitors and develops new products before everyone does. AGFA also aims at market
research and try to serve customer needs within each market segments.
Golden Wonder case study over view:
Golden wonder manufactures snack items which are portable, cheap, tasty, handy and can
be carried easily and can be used for quick munching. Golden wonder lay special emphasis on
innovation and developing products according to the market requirements and is always market
oriented instead of product oriented. It developed various flavors and various types of crisps to
cater changing taste and preferences of the customer. When customer shifted towards healthy
eating they introduced low fat products according to market demand. Golden wonder always
followed strategies that cater to constantly changing position of products according to market
demand. Through good marketing practices Golden Wonder was able to reshuffle their product
positioning from the minds of customer to improve lifecycle of offered products. Along with that
market research helped them to made products which were adaptable and flexible according to
needs of the market. Golden wonder became profitable through extending strategies and
repositioning the products along with market study.
LO2:Evaluation of influences of drivers of change
SWOT for AGFA:
STRENGTHS: AGFA is innovative, reliable and a successful organization having
proper resources for development. They provide digital and analogue systems. It offers 3
segments in that consumer imaging, technical imaging, graphical systems. It serves customers in
both markets that is digital and analogue.
WEAKNESS: The industry saw a significant rise in the borrowing rate for financing
investment. Job prospects noticed poor offerings by the industry. Customers cut their expenditure
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in the industry to invest in new ventures. Investment appraisal was a risky factor for the company
as it was concerned on ROI.
OPPORTUNITIES: People of this industry now considers digital marketing as an
important medium and it was helping AGFA to gather and capture shares in a new market to
meet new consumers. By operating in both markets the company is serving to wider range of
consumers.
THREATS: Competitors were putting their focus on improving quality at reasonable
prices, they were investing in research and development (Muluneh and Gedifew., 2018).
Drivers of change for AGFA:
 Technological upgrade and changing technology.
 Constant improvements and developments in innovation.
 Customers demanding wide range of products.
SWOT for Golden Wonder:
STRENGTH: Golden Wonder is one of the most trusted brand for over fifty years which
introduces market oriented products and provides low fat and healthy snack. Their new product
golden light had 40% less fat than others which helped company to boost its sales. With the
potato snack they came with a pack which was not more than 99 calories and that made a buzz
among people who wanted a healthy snack.
WEAKNESS: It was a market changing product but not really a crisp. Does not taste
good as compared to unhealthy snack. Being a low fat snack it only targets women. Market is
dynamic rather than static.
OPPORTUNITIES: Due to political changes golden wonder launched 'golden light' in
the year 1991. Golden wonder commits to research and development which helps them to
gather innovative ideas. They borrowed technology from baking and pasta industries to change
the manufacturing process. After recession in 1990, high level of demand was noticed for snack
products. With new packs and new flavors, they have targeted more than 3 million consumers so
far and just with the help of potato snack they created opportunity to enter into a new and
different market.
THREATS: Repositioning the product again and again was slightly beneficial for its
competitors. Changing of identity changed its market from crisp to potato snack which lost
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consumers who wanted unhealthy snack. When they changed their product from crisp they lost
an entire market of that category against its competitors (What is SWOT analysis, 2019).
Illustration 1: SWOT analysis
(Source: What is SWOT analysis, 2019)
Drivers of change for Golden Wonder:
 Changing tastes and preferences of customers in quick snack segment.
 Customers getting bored from single product and demanding new products.
 Customer desire to eat healthy.
Impact of change management on AGFA strategy and operations:
AGFA managed change by making employees aware about the technological changes
and helped them to absorb changes as AGFA is wholly based on technology, Employees were
trained and were provided proper knowledge about the processes of the organization for
managing change within the organization. Operations and strategies are formulated accordingly
with changing external environment and innovations and expenses on research and development
was made to manage change within the organization. Continuous check on external environment
and what people demanded was taken care of for improvement in existing product line. AGFA
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managed change properly and formulated strategies well to absorb change positively (Lowell and
Morris, 2019).
Impact of change management on Golden Wonder strategy and operations:
Golden Wonder focused on knowing customer taste and preferences through market
research and then market their products by repositioning accordingly. Golden Wonder made
strategy and planned its operation according to change in tastes and preferences of the target
customers and proactively managed to change internally for developing new product line and
innovative low fat snack. This improved lifecycle of their products and made them profitable for
longer duration. Change within organization is managed by the management through making
employees ready to absorb change.
Evaluation of how change will have affected leadership, individuals and team behavior.
Change impact on leadership:
In AGFA, management was proactive to communicate change within the organization.
Decisions regarding making huge investments in technological up gradations need to be made.
Leadership in AGFA demands quick decision making and making employees ready for
change(Hughes., 2016).
Change impact on individuals:
Individuals were ready for change in the organization and provided with an opportunity
to provide feedback for the changes made within the organization. There was resistance
regarding procedures and processes of the system which should be resolved by effective
leadership.
Change impact on team behavior:
Employees could feel frustrated and uneasy if change is not implemented properly.
Special emphasis should be laid by AGFA management so that change is communicated
properly and they do not feel frustrated or helpless and training should be provided to manage
change.
How change impacts on team dynamics and how people are led and managed:
Change can effect team dynamics in positive and negative way, due to demand of
technologically upgraded products by customers, team members of AGFA were made to adopt
and follow strategies designed by management for investment in technology and continuous
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research and development. Change was welcomed and delinquency in understanding change was
managed by effective leadership and giving importance to suggestions of team members (Kangas
and et.al., 2019).
Advantages of change in chosen organisation:
 AGFA became profitable by adapting to technological change and leading change.
 AGFA raised its product offering by satisfying needs of new market segments.
Disadvantages of change in chosen organization:
 AGFA made huge investments which made their money blocked till the time new
product was developed and launched in the market.
 Return on investment is uncertain. Huge amount of risk involved.
Mckinsey 7's model on Golden Wonder
Strategy: Strategy were designed in the way that it address the change in taste and preferences of
the people by repositioning products and developing low fat products in order to stay alive in the
competition.
Structure:Division of roles and responsibilities within the organization was proactively changed
in order to stay competitive and productive.
Systems:Resources were optimally used in order to produce low fat snacks and different
packaging in order to stay connected with changing demands of customers.
Shared values
Skills:Golden wonders constantly kept on addressing changing demands and taste of the
customers, along with keeping up with the change in internal environment.
Style:Management and employees were made accustomed to change in internal as well as
external environment.
Staff:Staff was provided proper guidance to keep up with change in external environment and
necessary changes within organization was well communicated(Huesing, Johnson and Ludema,
2019).
LO3:Influence of barriers of change on leadership decision making
Introduction to the selected organization:
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AGFA is a German multinational company which has its headquarter in Mortsel,
Belgium. The company manufactures, distributes and develops both digital and analogue
imaging systems and products along with various IT solutions.
Force field analysis:
Force field analysis is the strategic change in the organizational behavior the two force
which influence are driving force and resisting force. To make a change in the working
environment factors which affect the force of change in the organization (Hillson and Murray-
Webster., 2017).
Driving force:
Forces which hinders the performance of the AGFA are stakeholders which affect the
work culture of the environment forces which hinders the performance of the firm. All the forces
which affects the performance of the firm.
Resisting force:
Forces which resist to change are like the workers who work for organization resist
change which changes as these are changes are difficult to adapt and work efficiently (Force
field analysis,2016).
Illustration 2: Force field analysis
(Source: Force field analysis, 2016)
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Schein’s organizational culture model application:
Edgar Henry Schien was born in 1928 has developed the model, according to that
organization takes course of time to adopt the culture as employees can goes through various
changes, which are adapted with solving problems and external environment. They implement
the changes by gaining form their experience and develop new culture for the workplace. There
are three levels of organization culture which are -
 Artifacts – It is the first level of the AGFA which is easily heard, viewed and felt by the
individuals. The mission, vision, dress code of the employees, facilities, furniture of the
and the behavior of the employees within the organization came under this level.
 Values – The next level of the AGFA where culture of the organization is value of the
employees. The value of individual working in the organization plays and vital role in the
organization culture.
 Assumed Values – The third level is assumed value of their employees which can't be
measured but can form a difference for the culture of the AGFA. There are many certain
facts and belief which are hidden but directly affects the culture of the company.
LO 4: Application of leadership approaches on change initiative.
Change which occurs in AGFA:
Recent advancement in technology brought by AGFA, the company has shifted to analog
to digital use of technology. Like the had raised the resolution of the images, modern machines
are used which are advance DPI (dot per inch) which increases image quality. They use the
digital x-ray machines which provide more clear images (Harris and et.al., 2019).
Barriers to change:
Barriers to change help business to develop successful strategies for implementing
change and identifying such changes. Lack of employee involvement, lack of communication,
culture shift, unknown current position, organization complexity results in barriers to change.
There are described below -
 Lack of employee involvement – Some employees of AGFA were not involved in the
change process. Therefore, they were allowed to give their opinion, their output is
accountable and assuring them that the change is good for the organization as well as for
them.
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 Lack of communication – The effective communication must be done to let them know
about how change will affect the employees of the AGFA and helps them how this will
be adopted by them rather than directly announcing the change to them.
 Culture shift – Disrespecting the taboos and traditions within the workplace lets the
barrier to change. The AGFA should consider the feelings of their employees to
overcome this barrier. Complexity in organization – Complex process, systems and products creates a barrier
for the employees to understand. AGFA can remove this barrier by employing quality,
diligent, highly effective projects and applying the different change management
approaches.
Situational resistance while barriers are determined:
There can be different types of resistance which can be observed in organization that can
be where leadership in the organization is not congruent with behavior of their employees. And
another one is that where employees are not congruent with the way leadership expects form
them to support. The change can be observed by the leadership of the AGFA which are faced by
them in keeping role and task aligned to each another. They are over determining the role culture
and consumer cost and quality which are faced by company while bringing the technological
change within the company (Glass and Cook., 2016).
Barriers of change impacting decision-making and leadership:
There are various barriers which affects the decision-making -
 Escalation of commitment – Due to the lack of information in AGFA, manager would
be able to take the right decision with the incomplete information thus sometime a wrong
and inappropriate decision can be done.
 Time constraints – Due to demand of technologically upgraded products of AGFA Less
time to gather information and processing it rationally, this abides the manager to take the
good decision-making at that time.
The several barriers which affects the leadership -
 Lack of strategic directions – Communication will be unsuccessful if it is lack of
direction or a cohesive message.
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 Active involvement of leadership- Leaders should be visibly and actively involved in
the process of change management which may help them to avail their involvement.
Model for leading change:
Situational Leadership (Hershey and Blanchard) -
The Hershey and Blanchard Model suggest that single leadership style is not better than
another. Rather than focusing in the workplace, the leaders should adjust their styles for their
followers and their abilities. This model has prescribed four different leadership styles which are
based on the relationship and task leaders within the workplace are as follows -
 Delegating style – It is the low relationship style where groups take the responsibility of
task and take their decision.
 Participating style – In this style ideas and decisions are shared under the high
relationship style by the leaders of AGFA.
 Selling style – In this style the leader of AGFA sells their ideas to the group and explain
the directions to them. Telling style – In this style leaders of the AGFA where they explicit supervision and
directs works closely.
Accomplishment of change successfully:
Changes was accomplishment with the help different approaches which are followed by
the AGFA to accomplish the changes in the organization and helps them to grow in the market
effectively with the help of such changes. They had effectively applied the technological change
and transform their operational activities from analog to digital this technological advancement
helps the organization to grow in the market effectively and develop innovation and had raises
their profit margin and compete effectively among the other competitive rivals (Butler.,2019).
Advantages and disadvantages of different leadership approaches:
Advantages - This helps in company to increase their productivity with the effective use
of the resources. The employees' morale is boost up with the help of different leadership style
and thus the company can attain the organizational goal.
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Disadvantages - The takes time to perform the different leadership styles and high quality
of the administrators raises the expenses of the company which directly affects the company's
budget. There can be a clash between the different personalities.
CONCLUSION
The above study discusses importance of understanding and leading change and displays
that how change impacted both golden wonders and AGFA and how they reacted to change by
formulating new strategies and making suitable changes in their operations, along with that
internal and external drivers of change is discussed and how they affected leadership, team and
individual behavior and with that barriers of change and it's influence on decision-making and
range of leadership approaches that Golden Wonder and AGFA used are discussed in brief.
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