Understanding and Leading Change

Understanding and
Leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Organisations where there have been impact of changes......................................................3
M1) Drivers of change including types of changes in organisation............................................5
TASK 2............................................................................................................................................5
P2) Ways in which drivers of change affect leadership, team and individual behaviour............5
P3) Measures to minimize negative impacts of change...............................................................7
M2) Theories and models which can help organisation in dealing with change.........................7
D1) Conclusions and recommendations with valid justifications................................................8
TASK 3............................................................................................................................................9
P4) Different barriers of change which affect decision-making of leaders.................................9
M3) Use of force field analysis....................................................................................................9
D2) Critical evaluation of use of force field analysis................................................................10
TASK 4..........................................................................................................................................11
P5) Leadership approaches to deal with change........................................................................11
M4) Examine the approaches of leadership by using models and theories...............................12
D3) Critical evaluation of leadership approaches......................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In order to grow and expand in global market it is important that leaders of business bring
changes in their strategies and operations and take risks so that changing customer needs can be
efficiently met and high profits can be earned. It is important to understand the changing market
conditions so that negative impact of these changes can be minimised and competitive advantage
can be gained. Change in organisational strategies can also help in increasing the motivation of
workers, decreasing operating cost of business, deal with rivalries etc. so that profits can be
maximised (Neumann, James and Vince, 2019). This report is based on two companies H&M
and Arcadia Group Ltd who are dealing in the same sectors i.e. retailing in branded clothing for
customers. H&M is a multinational clothing retail company which deals in highly fashionable
clothing for all ages customers. Arcadia is located in London, UK and owns high street clothing
retailers Burton, Dorothy Perkins, Topshop etc. In this report the drivers of change which leads
to changes in organisational strategy and operations will be discussed along with the discussion
of barriers to such changes. Further leadership approaches will also be discussed that will be
suitable to deal with changing business environment.
TASK 1
P1) Organisations where there have been impact of changes
Strategies of organisation are the set plans, actions and structures that are decided by
managers so that the company objectives are achieved in desired manner. These strategies are
formed by aligning them with company mission and vision so that long-term goals are achieved.
They also help in gaining a competitive edge in market so that large number of customers can be
attracted and sales of company can increase (Nelson-Brantley and et. al., 2018). Changing
business situations affect company strategies and they need to be changed so that business can
continue to survive in market. A comparison of impact of change is given below:
Basis Arcadia Group Ltd. H&M
Political
changes
Impact: The political situation of UK is
generally stable however due to Brexit
company might face issues in trading
freely with EU markets which means that
Impact: Brexit might affect company
business in UK as there will be trade
restrictions which can affect company's
market in EU. The price of its products

company sales might decrease along with
decrease in free flow of raw materials.
Strategic changes: Due to increase in
prices of company products it is
important that strategic changes are made
which can help it in increasing its sales.
Company can switch to economic pricing
from premium pricing so that the loss of
sales in EU can be managed by
increasing sales in UK and other regions.
Operational changes: Arcadia can start
selling its products online so that a large
number of customers can be reached and
sales of company can be increased
(Espedal, 2017).
might also increase which will directly
affect company sales and revenue.
Strategic changes: The company can
improve its supply chain management
so that the rise in price due to Brexit
can be managed by maintaining good
relations with its suppliers and
customers (Bohman, 2019).
Operational changes: The company
can improve its online sales by
improving customer satisfaction
through the usage of technological
developments, feedbacks etc.
Social
changes
Impact: The preference and taste of
customers keep on changing and also
their switching cost is very low which
means that they can switch to other
company products very easily which
affect company sales and increase
inventory cost due to unsold items.
Strategic changes: The company can
decrease its prices of cloths and increase
the quality of its products so that high
quality clothes can be made available to
customers at low costs which will
increase their satisfaction.
Operational change: The company must
include various offers, discounts, rewards
etc. so as to increase its sales. Also
Impact: The spending preference of
customers is increasing more on
education and tourism which has
affected their purchases of clothes and
decreased company sales.
Strategic changes: Through decreased
pricing of company products and
promotion of its online shopping the
company can increase its sales and deal
with decreased company revenue.
Operational change: Improved CRM,
offering discounts, easy payment
methods, return and refund policies,