Understanding and Leading Change

This report discusses the impact of change on organisational strategy and operations, the drivers of change, and the ways in which internal and external drivers of change affect leadership, team, and individual behaviour at Cadbury. It also explores measures taken to reduce the negative impact of change on organisational behaviour.

Understanding and
Leading change
1

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Impact of change on organisational strategy and operations................................................3
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected...................................................................................5
TASK 2............................................................................................................................................6
P2 Ways in which internal and external drivers of change affect leadership, team and
individual behaviour at CADBURY...........................................................................................6
P3 Measures taken to reduce negative impact of change on organisational behaviour..............8
M2 Appropriate theories and models to evaluate organisational response to change................8
D1 Draw conclusions and recommendations with valid justifications for planning effectively
for change and applying change impact analysis........................................................................9
TASK 3............................................................................................................................................9
P4 Different Barriers for Change................................................................................................9
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making........................................................................................................10
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives...................................................................................................................................11
TASK 4 ........................................................................................................................................11
P5 Different leadership approaches to deal with change in organisational context..................11
M4 Evaluate the extent to which leadership approaches can deliver contexts. organisational
change effectively applying appropriate models and frameworks............................................12
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management..............................................................................................................................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
In order to grow and expand in the global market it is important that businesses bring
effective change in their strategies and operations so that the dynamic market demands can be
met in an efficient manner. It is considered as an important part of every business as it helps
them in adapting their business operations in accordance with the changing market trends.
Change also help the companies in bringing innovative ideas in market, motivating their
employees, decreasing their operational costs, dealing with competitors etc. so that profits can be
maximised. Business managers also emphasise upon development of strategies that support them
in effectively implementing a change within the organisational premises. This report is based on
two companies Cadbury and Nestle who deals in similar sector. Cadbury is a British
multinational confectionery which was established in 1824 in London, UK. Nestle on the other
hand is a Swiss multinational food and drink processing conglomerate headquartered in
Switzerland. In this report the drivers of change which lead to changes in their strategies and
operations will be discussed along with the barriers of change. Further the leadership approaches
will also be discussed which will help in adapting to the changing business environment in an
efficient manner.
TASK 1
P1. Impact of change on organisational strategy and operations
Organisational change is seen as the modification or alteration which are implemented in
organisational working environment which help company in improvising its business functions
and organisational practices (Dawson, 2019). It is important for the management team of the
company to effectively implement organisational change within company so that it can provide
maximum benefits to organisation as well as customers. In order to implement change
effectively, managers are required to conduct a market research so that relevant information
regarding threats and opportunities present in the market can be gained which will help in
implementing change accordingly.
Products offered by Cadbury and Nestle belongs to same category that includes
chocolates, candies, travel exclusive biscuits etc. On the basis of recent market condition, it has
been analysed by both of them that customers are becoming health conscious with respect to
eatables. They mostly prefer healthy products even in confectionery products too. In order to
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gain competitive advantage Cadbury has introduced 30% less sugar chocolate in its dairy milk
bar. Whereas, Nestle has introduced Nestle a+ Slim Milk. This product carry 90% less fat in
comparative of other available milk at marketplace developed from cow and buffalo. The
company has also ensured its customers that Nestle a+ Slim Milk will only give protein to
customers without any fat at the time of consumption.
Changing business environment create an impact on the company strategies and
operations and so they need to be changed in such a manner that the negative impact of business
environment can be minimised. Following table shows how the two companies react to the
changing business environment:
Actions Cadbury Nestle
Political
changes
Impact: The political situation of UK is
generally stable which helps the
companies to grow and expand
efficiently in market. However, due to
Brexit the company might face certain
financial losses in market and can also
loose its EU market which will lead to
further loss for company. The free
movement of workers will also be
influenced which will lead to an increase
in the wages of employees.
Strategic changes: Due to the increase in
prices of company products due to Brexit
it is important that the company either
raise the prices of its products or shrink
their sizes so that the increased cost can
be recovered profitably.
Operational changes: The company can
start selling its products through online
selling apps so that the markets of EU
can be easily reached and also a new and
Impact: Nestle is a Switzerland based
company which can get affected by
changing rules and regulations of UK
while working in UK. As the country
is politically stable Nestle face less
impact of this factor in UK. However
Brexit might affect the business as the
labour force availability in UK will
decrease.
Strategic changes: The company can
deal with issue of labour force by
changing its company strategies in
such a way that the already existing
employees can be retained in
company so that frequent recruitment
will not be necessary.
Operational changes: The company
can increase its online sales and focus
on building good customer relations
so that a loyal customer base can be
built in EU which will help in
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large customer base can b built which
can help in increased profits of company.
increasing its sales.
Economical
factors
Impact: Economic conditions of UK are
highly favourable for Cadbury as it can
offer high quality products to customers
at high prices as the purchasing power of
people in UK is high. However, the
diversion of expenditure of customers on
consumer products has decreased with
increase in their expenditure on travel
and education which can affect the
business.
Strategic changes: The company can
decrease its prices of food products while
maintaining the high quality of its
products so as to increase its sales in UK
market.
Operational changes: The company can
increase the sale of its products by the
way of discounts, offers, rewards etc.
Also the company can emphasise on
selling its products online and in
customised manner so as to attract a large
number of customers.
Impact: With Brexit the cost of raw
materials for Nestle will increase
which will lead to an increase in its
production cost which will affect the
market of company in UK.
Strategic changes: The company can
start dealing in the online market
which can help it in dealing with
increase in price of production and
increase its sales so that profits of
company can be increased.
Operational changes: It is important
that the company promote local-level
production of raw materials like
increasing its efficiency in
agricultural sectors so that raw
materials can be made available at
lower rates for company.
M1 Assess the different drivers for change in each of the given examples and the types of
organisational change they have affected
Drivers of change can be referred to as the elements which affect the businesses in such a
way that change in business policies and strategies have to be made to deal with negative impact
of these drivers of change (Green and Daniels, 2019). Following are the change driver which
affect Cadbury:
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Internal drivers: These are the changes which are made by board of directors of company which
can affect the overall goals of company, its purpose, strategy, employee composition etc. These
changes are made so that company can efficiently run and operate in business environment.
External drivers: These are the changes which occur from outside the company of which some
are listed below:
 Customers: The major driver for bringing change in Cadbury are its customers whose
changing needs and wants must be met by company in an efficient manner so that they
can be attracted towards company products. The change in taste and preference of
customers affect the way in which chocolates are manufactured by company like
introduction of sugar free chocolates in market.
 Rivals: The rivalries of Cadbury like Mars, Hershey's etc. can affect the strategies and
operations of company and lead to bringing changes in company so that it can stay
competitive in market.
TASK 2
P2 Ways in which internal and external drivers of change affect leadership, team and individual
behaviour at Cadbury
Change is an integral part of company (Grossman, 2019). In this regard, it is essential for
every organisation to implement change with the passing time in order to remain competitive at
market place and industry. The chocolates of Cadbury have a number of rivals such as Hershey's,
Mars, Nestle etc. Thus, it becomes relevant and significant for this organisation to provide
offerings which are aligned with the needs and preferences placed by customers. In this regard,
there are internal as well as external forces which act as drivers for change. These tend to have a
significant impact over team as well as individual behaviour and leadership of company. A
detailed discussion is done below:-
Internal Factors
Organisational Culture: This can be defined as the beliefs, values, traditions, customs
and assumptions underlying within an enterprise (Huesing, Johnson and Ludema, 2019). This
has a key impact upon the behaviour of teams and individuals along with leadership. In this
regard, Cadbury is coming up with chocolates having 30% less sugar. To implement this change
effectively, the company has applied task culture whereby individuals are accountable for task
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allotted to them. This culture leads to increment in productivity of individuals and team within
Cadbury as they are provided with proper guidance as well as supervision. Furthermore, an
effective leadership is facilitated within the company as a result of execution of task culture. This
aids the organisation in carrying out the business operations in an effective manner after
implementation of change.
Management Structure: The management structure of an entity consists of the chain of
command and hierarchy as per which decision making power is exercised within an enterprise
(Janfada and Beckett, 2019). In relation to Cadbury, it can be said that hierarchical management
structure is applied within the premises so as to foster top down communication. To launch the
chocolates with 30% less sugar content, the selected management structure would provide
guidance and information to employees about the manner in which they can adapt to the change.
Also, it instils positive behaviour within individuals and team in Cadbury, encouraging them to
enhance their productivity for accomplishment of organisational goal. Further, the change
impacts upon leadership in such a manner that the leader provides guidance to employees
regarding the proper way in which they can incorporate change within their routine working.
External Factors
The impact of external factors is acknowledged with the help of PESTLE analysis of
Cadbury conducted as follows:-
Basis IMPACT
Political The politically stable environment of UK tends to foster the growth and
development of Cadbury by incorporating effective changes within the premises
such as launch of chocolates with 30% less sugar. Further, the application of
democratic leadership in this regard is done by the company with a view to
provide freedom to staff to carry out tasks and business activities. The impact
would be positive upon behaviour of individuals and team as the firm operates
within the confines of regulation prevailing in UK.
Economic The stable economic conditions of UK tends to inflate the morale of individuals
and team in Cadbury to incorporate the new change within routine working
(Kotlar and Chrisman, 2019). Further, the leadership in the company is aimed at
stipulation of rewards and incentives such as certification and recognition of
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employees who serve as change agents in relation to launch of new chocolates
with less sugar content.
Social The trends and lifestyles of people of UK keep on changing. In this regard, the
people are now shifting towards the consumption of chocolates with less sugar in
order to avoid getting stricken by diabetes or obese. Further, the leadership style
of Cadbury is aimed at ensuring the timely anticipation of trends and thereby
providing knowledge to employees about the same to act in alignment with
consumer needs. This instils a sense of positivity within individuals and team and
they get facilitated to work with zeal for attainment of organisational goals.
Technologi
cal
UK is a technologically advanced country which encourages the individuals and
team working within Cadbury to come up with changes which have the power to
disrupt market. Further, the leader of the organisation provides information to
employees regarding the manner in which they can incorporate technological
trends in their routine operations.
P3 Measures taken to reduce negative impact of change on organisational behaviour
Themajor consideration of an organisation while implementing a change is reducing the
negative impacts (Maharaj, 2019). To facilitate this, a number of measures are undertaken by
Cadbury so that it can reduce adversities resulting out of launch of chocolates with less sugar
content. Such measures are briefly described below:
Cadbury must carry out researching of market in order to anticipate future trends in advance.
This enables them to identify consumer trends and lifestyles beforehand and provide scope for
company to give this information to employees so that they can accept and adopt to change in a
timely manner.
 The respective organisation can also conduct training sessions whereby in depth
knowledge can be provided to staff members about the manner in which they can
incorporate the change in their routine working. This even makes it easier for personnel
to make use of their skills and capabilities to enhance the growth and development of
organisation by effectively applying the change.
 Employee engagement can be increased in Cadbury so that the participation and
involvement of employees can increase in company decisions which also help in easy and
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quick adoption of changes in company. This also help in implementation of change in an
efficient manner in company.
 Cadbury must also encourage effective communication in company so that change can be
transmitted effectively to all the employees which can help in implementation of change
in work settings in an efficient manner.
M2 Appropriate theories and models to evaluate organisational response to change
PDCA Cycle is used by Cadbury to improve, manage and control the business operations
in an effective manner (McCalman and Potter, 2015). This is a model that focuses upon
standardization of information to minimise the occurrence of errors. It consists of 4 elements,
namely, Plan, Do, Check and Action. Hereby, the organisation first evaluates relevant
information to do planning for implementation of change. After this, a specific solution is
executed and its outcomes are thus compared with the planned outcomes. The next stage marks
the stipulation of efforts for reduction of gap between actual and desired performance. The last
stage witnesses the actual execution of action within Cadbury so that the change related to
launch of chocolates with less sugar content can be executed with least negative outcomes.
D1 Draw conclusions and recommendations with valid justifications for planning effectively for
change and applying change impact analysis
As per above analysis, it can be said that internal and external drivers of change affect the
manner in which Cadbury carries out its operations (Nagorny-Koring, 2019). In this regard, it is
important for the enterprise to effective manage the change in order to eliminate the adversities
associated with it. Internal drivers will facilitate the organisation in management of capital,
finance and other essential resources in order to meet the demands of consumers at market place.
Additionally, external drivers foster the entity in gaining knowledge of the business environment
in which it operates. As a result of execution of change, the firm would be able to gain
competitive edge at market place. Further, the recommendations given for Cadbury are as
follows:-
 Cadbury should have detailed discussions with the staff about the manner in which they
have to work as per the change. This will provide aid to them in effectively adapting the
organisational working as per the proposed change of launching new chocolates.
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 It is recommended that the manager of Cadbury should anticipate the likely outcomes as
a result of implementation of change such as employee resistance so that these can be
dealt with, in an effective manner.
TASK 3
P4 Different Barriers for Change
The environment of business is dynamic which keeps on changing with change in time and
situation (Polden, 2015). It is very important for organisation to analyse change which can be
positive as well as negative and create impact to business activities and operations. Some of the
barriers for change which are faced by Cadbury are as follows:
Negative Attitude of Employees- There is many situations arise in organisation where
attitude of employees is negative towards change made in business that creates problem for them
to perform work. Cadbury is planning to use new equipment for manufacturing chocolates for
their consumers in order to make work easy and simple. In this case, both manager and leaders
are liable to implement changes in business and make aware to their working force so that they
can carry out each and every activities and operations in an effective and efficient manner. The
high authority of Cadbury assists their employees in positive way so that their attitude does not
change towards organisation. This is the barrier which causes change in organisation and
influence mindset of their working force.
Improve Communication Strategy- It is the most common problem which can be faced
by organisation while implementing change in business (Rhea, 2014). When enterprise makes
changes then there is lack of communication among employees and manager. This happen
because of improper strategy of communication that creates difficulty for staff about benefits of
change taken place in process of business. It is leader’s responsibility to guide and assist their
employees regarding use of equipment and machinery in respective business for manufacturing
chocolates. In order to improve communication process, they have to use two way process so
that proper data and information can be send from one to another in an effective and efficient
manner.
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making
The use of force field analysis to influence decision making are:
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Driving Forces- This forces assist business to adapt change for achievement of goal and
objectives in positive way. In context of UK, the social culture and advanced technology is
regarded as driving forces which is preferred by people of that place. This forces assist respective
organisation to adapt change in an effective and efficient manner. It can influence changes arise
in business and accordingly decisions are made for achievement of goal and objectives.
Resisting Forces- Such changes resulted into development of specified restrictions to
implement and adapt resisting and changes forces in relation with problems which are generated
because of low like employment engagement, less financial resources, complex laws and so on.
In this case, leaders have to take decisions to resolves problems and issues arise in business.
The mangers of Cadbury must analyse the driving and resisting factors so that the
condition when change needs to be effected the implementation of change can be efficiently
done. When driving forces become stronger than the resisting forces then change occur in
company.
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives
According to view of author, it has been said that changes are natural phenomenon which
take place in business for achievement of goal and objectives in an effective and efficient manner
(Rothwell, Stavros and Sullivan, 2015). It is important to analyse changes and make decisions
accordingly for positive outcomes in an appropriate manner. The use of force field analysis has
two approaches such as driving and resisting force which has their own use and benefits. In
driving force, there is change in technology which should be adopted by organisation in an
appropriate manner to work easy and simple. The manager and leader have to communicate to
their working force for meeting organisational objectives in proper way. Similarly, on the other
hand, resisting forces means to adapt changes in business to low employment engagement and
other. As these changes leads to rise in conflict among employees so manager and leader has to
make necessary change and work accordingly.
TASK 4
P5 Different leadership approaches to deal with change in organisational context
Leadership can be referred to as the procedure whereby one person provides the guidance
and direction to people in relation to the manner in which they can execute the assigned task
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(Saleh, 2019). Cadbury is a well renowned and large scale company having its operations spread
across different parts of the world. It is engaged in provision of chocolates and other
confectionery products. As the management of Cadbury has come up with the idea to launch
chocolates with 30% less sugar content, it is essential that the leadership to bring about the new
product into market is effective enough. In this regard, there are various leadership approaches
which can be feasibly taken into use by the leader of Cadbury in order to ensure attainment of
organisational goals. The several approaches to leadership are described as follows:-
Autocratic leadership: It refers to the type of leadership style which states that leader has
all the power regarding stipulation of aims and objectives, making working policies, etc (Storey,
2016). So there is keen role of leader in performing business operations.
Advantage:- Advantage of this approach for Cadbury is that leader has complete knowledge and
rights, so they are responsible for outcome. Workforce have to work as per instruction of
leader and hence there is proper flow of activities.
Disadvantage:- Employees feel bounded and do not have authority to take decision or share their views.
This makes them dissatisfied.
Democratic leadership: Democratic leadership is consider as one of the best approach of
leadership because under this approach, there is authority to employees regarding decision
making. There are many employees working at Cadbury having different mindset, skills,
knowledge, etc.
Advantage Employees are satisfied and ready to work under dynamic environment. This makes long
term relations with them.
Disadvantage Due to difference in mindset, sometimes, there is personal issues among employees
regarding implementing best approach.
From the above discussion it can be said that democratic approach of leadership must be
used by Cadbury which can help the company in bringing changes in company in an efficient
manner. Also this approach will help in increasing employee engagement which will be
beneficial in decision-making and also innovations can be easily brought in company.
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M4 Evaluate the extent to which leadership approaches can deliver contexts. organisational
change effectively applying appropriate models and frameworks
It is essential for organisation to implement changes in business for positive outcomes so that
goal and objectives can be attained in an effective and efficient manner (Tombetti and Mason,
2018). The different types of leadership approaches are used for changes that are taken place in
organisation and solving accordingly. According to model of Lewin, the changes are of three
types such as unfreeze, change and refreeze. In unfreeze, organisation prepare them for change
that is required in business. In change actual changes are taken place and in case of refreeze
change has accepted and implement by people of organisation in effectual manner. For each
change, leadership approaches are used to overcome from situation in positive manner. The
democratic leadership style is best suitable for every situation for meeting business goal and
objectives.
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management
There are various types of leadership approaches such as autocratic and democratic which
has their own effectiveness. The company can use democratic leadership approach in order to
effectively implement changes in company which can help in increasing employee involvement
and will also help in adapting to changes in an efficient manner. There are several models of
change management such as McKinsey 7S model which is benefits in terms of understanding
methods and ways of organisation and getting deep insight into ways it works. It is regarded as
directional factor to organisational change for business (Wilkinson and Kemmis, 2015). Other
model is Kotter’s change model which has benefited in terms of easy following and
incorporating method and preparing for change in proper manner.
CONCLUSION
From the mentioned report, it has concluded that it is very important for organisation to
understand changes which are taken place in business environment. The manager and leaders has
to be aware of those change and implement it in business and communicate to their working
force in an effective and efficient manner. The changes take place because of internal and
external drivers of market force. The organisation has to implement new equipment and
technology in their business for positive outcomes. Change takes place has impact on team
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member, leadership and individuals. In order to reduce negative impact of change, PDCA model
has to be used in an effective and efficient manner. The various types of leadership approach
assist in motivating working force during the time of implementation of change.
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Online
NESTLÉ a+ SLIM Milk. 2019. [Online]. Available Through:
<https://www.Nestle.in/brands/Nestleaplusslim>.
Cadbury to launch Dairy Milk bar with 30% less sugar. 2019. [Online] Available through:
<https://www.theguardian.com/business/2018/jul/20/Cadbury-to-launch-dairy-milk-
with-30-per-cent-less-sugar>.
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