Understanding and Leading Change: Strategy, Operations, and Behavior

This report examines the impact of change on organizational strategy and operations, using AstraZeneca and GSK as case studies within the pharmaceutical industry. It compares different organizational examples, evaluating how internal and external drivers of change affect leadership, team, and individual behaviors. The report also assesses measures to minimize the negative impacts of change on organizational behavior, explains different barriers to change and their influence on leadership decision-making, and applies various approaches to dealing with change in a range of organizational contexts. The analysis incorporates models such as PEST and SWOT to understand the change drivers and their effects, and the Burke-Litwin model to evaluate the relative importance of different change factors. The conclusion emphasizes the importance of motivation and communication in managing change effectively. Desklib is a platform where students can find similar solved assignments and study tools.

[UNDERSTANDING AND LEADING CHANGE]

Table of Contents
INTRODUCTION.....................................................................................................................................2
TASK 1....................................................................................................................................................3
P1 COMPARE DIFFERENT ORGANIZATIONAL EXAMPLES WHERE THERE HAS BEEN AN IMPACT OF
CHANGE ON AN ORGANIZATION’S STRATEGY AND OPERATIONS.....................................................3
P2 EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF CHANGE AFFECT
LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS WITHIN AN ORGANIZATION.............................6
P3 EVALUATE MEASURES THAT CAN BE TAKEN TO MINIMISE NEGATIVE IMPACTS OF CHANGE ON
ORGANIZATIONAL BEHAVIOUR.........................................................................................................9
TASK 2..................................................................................................................................................11
P4 EXPLAIN DIFFERENT BARRIERS FOR CHANGE AND DETERMINE HOW THEY INFLUENCE
LEADERSHIP DECISION-MAKING......................................................................................................11
TASK 3..................................................................................................................................................13
P5 APPLY DIFFERENT APPROACHES TO DEALING WITH CHANGE IN A RANGE OF ORGANIZATIONAL
CONTEXTS........................................................................................................................................13
CONCLUSION.......................................................................................................................................15
REFERENCES........................................................................................................................................16
1

INTRODUCTION
Change is imperative in the business environment as the business organization needs to adapt the
constant changes that occur in the highly competitive and dynamic environment. This assignment
helps in anticipating the change in the external environment of the business so as to make efficient
plan to implement change in the business edifice. It also helps to understand the predetermination
of the changes by intervening at the correct time to result in maximisation of benefits and
minimisation of risk (Doppelt, 2017). In order to analyse the importance and concepts of the change,
two organizations were taken as a case study that is AstraZeneca and GSK from the pharmaceutical
industry. It will help in comprehending the changes in their business environment.
The first section of the assignment covers the understanding of the impact of the change in these
two organizations that is AstraZeneca and GSK. This part also depicts the change drivers that help in
reducing the adverse effect of a change in the organizations. The second section of the assignment
includes the change obstacles and barriers as well as the effect of the change on the decisions to be
taken by the leaders and senior team (Fullan, 2014). The third section of the assignment comprises
the different approaches selected by the leaders to manage or cope up with the changes.
2

TASK 1
P1 COMPARE DIFFERENT ORGANIZATIONAL EXAMPLES WHERE THERE HAS
BEEN AN IMPACT OF CHANGE ON AN ORGANIZATION’S STRATEGY AND
OPERATIONS
It is essential for the organization to deal with the changes along with the implementing it in the
business to attain different objectives of the business (Espedal, 2017). The aim of the organization
may differ in implementing the changes in the organization that is to progress in the industry or to
increase market share or to generate more revenue etc.
CHANGE AS THE CONSTANT REQUIREMENT
Irrespective of the size of the company, change is inevitable in the business world. The size and
scope of the organization are different in private, public or voluntary organisations (van der Voet, et
al. 2015). In order to avoid a negative outcome, the company such as AstraZeneca and GSK need to
cope up with the changes raised in the business market. Different changes were observed in both
the organizations such as AstraZeneca and GSK owing to the changes in the pharmaceutical
environment. The changes in the external environment have a huge impact on the strategy and
operations of the business organization.
TYPES OF CHANGES IN THE ORGANIZATION
The change has impacted both the strategies and operations in both the pharmaceutical company
that is AstraZeneca and GSK are given below:
STRATEGIC:
It is impractical to link the external changes in the business environment with the mission, vision and
strategy of the organizations (Harper, 2015). The changes in the external factors of the business
environment are uncontrollable which empowers the company to make changes in the mission,
vision and strategy of the organizations.
PEOPLE-ORIENTED
3

The company focus on improving the work culture by training sessions and development programs
in people-oriented changes. The company GSK is focused in providing training to its staff and senior
managers so as to eliminate the issues in the operations of the business by increasing the
communication and coordination of the employees (Scott and Davis, 2015). The customised
approach was required in the GSK Company by launching Accelerating Delivery and Performance
program so as to focus on the impact of improving the performance and supporting this ambitious
strategy.
STRUCTURAL
This is the most difficult change in any business organization due to the effect of a change in the
external business environment (Nieves and Segarra-Ciprés, 2015). The change in the structure of
organization such as AstraZeneca that is building new infrastructure with advanced technology
equipment. The key challenges faced by the company is the closure of the Alderley Park R&D and
Corporate HQ, also required to improve the staff satisfaction and motivation level and improve the
performance through infrastructure and equipment and the wastage of time in resolving the issues
through right people. The changes resulted in a strategic partnership between Sodexo and
AstraZeneca so as to deliver quality life outcomes.
PROCESS-ORIENTED
The change in the process of the business organization comprises of the re-engineering process to
increase the flow of work and also productivity (Harper, 2015). The aim of the company is to
streamline the processes followed by the company with the change in the external factors of the
environment leading to the fulfilment of customers’ expectations. The focus of the company is to
adopt the changes in the operations and procedures of the organizations.
CHANGE DRIVERS
Change drivers are the elements that enforce the company to amend the operations and strategies
of the organization due to external changes. Change drivers are as follows:
Customer alertness: The customers now a day are aware to opt for the product or service that is
appropriate in the quality and quantity as well as the price which lead to consistent changes in the
business organizations (van der Voet, et al. 2015).
4

Marketing innovation: unique methods and techniques of the promotion and marketing have
resulted in a change in the operations of the business organization. Online marketing and selling of
the pharma products is a new concept in the market.
Technological change: consistent improvement in technology leads to improvement in the facilities
and processes for the smooth operations of the company. The financial cost increases due to
emerging technology for short period (Espedal, 2017).
Policies changes: the changes in policies and regulations of the UK government which may result in
developing new pharm drug or any new Act or laws such as price cap, quality standards, side effects,
the prohibition on medicine usage etc.
5

P2 EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF
CHANGE AFFECT LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS
WITHIN AN ORGANIZATION
The internal factors of the organization are affected by the external change drivers which includes
the political, environmental, social and technological and much more (Epstein and Buhovac, 2014).
The behaviours of individuals and managers are stimulated by the alteration in change drivers. This
can be better understood by using PEST given below:
POLITICAL
Health authorities and experts of the UK should focus on sustaining the health and welfare of the
local people by altering the operations of the business. The UK is considered as one of the prominent
countries that lead in political powers (Epstein and Buhovac, 2014). The pharmaceutical companies
such as AstraZeneca and GSK might be impacted by the changes in the political scenario of the UK.
After the Brexit referendum, new rules, regulations and legislation have adversely impacted both the
organizations.
ECONOMIC
The operations of the companies such as AstraZeneca and GSK can be affected by the changes in
taxation policies, labour laws for wages, inflation rate, GDP and also the income of the consumers.
The constraints in buying behaviour of the customers restricted in buying high priced products and
services (Epstein and Buhovac, 2014). The upsurge and decrease in the economy result in the
negative impact on progress and development of the companies AstraZeneca and GSK. Brexit
resulted in setbacks in the companies due to constant fluctuations in the UK economy.
SOCIAL
The initiatives by the UK government result in increasing the awareness in healthy eating so as to
reduce the obesity resulted in the social change (Lozano, 2015). It is both beneficial and limitations
of the companies like AstraZeneca and GSK due to increasing in the ageing populace. The buying
preferences of the customers have changed as they select the healthy products by being aware of
the ones won health.
TECHNOLOGICAL
6

This is another prominent factor in influencing the changes in the pharmaceutical company. The
structural change in the company such as AstraZeneca resulted in an infrastructural change by
installing new equipment in their workplace. Advanced technology leads to new pharmaceutical
drug or equipment in the pharmaceutical industry.
SWOT ANALYSIS
STRENGTHS
 AstraZeneca has good commercial and R&D presence in the market whereas GSK focuses on
strong R&D and explores new markets.
 AstraZeneca is present in over 100 countries with its over 60,000 employees while GSK is
present in over 100 countries with over 97,000 employees (Montano and Kasprzyk, 2015).
 AstraZeneca invests highly in R&D and has over 11,000 staff of R&D whereas GSK leads in
R&D investment and is the biggest private sector investor in R&D in the UK.
 The product portfolio of AstraZeneca includes cancer, gastrointestinal, respiratory medicine,
cardiovascular and inflammation medicines whereas GSK offers consumers healthcare,
prescription medicines as well as vaccines.
WEAKNESSES
 Drug shortage crisis such as Cefotan faced by AstraZeneca whereas the image of the GSK
Company is affected by the controversies about drug safety issues.
 The image of the AstraZeneca is affected by litigations for patents and pricing issues and
patents are expired of some of the bulk-buster products in GSK Company.
 The performance of AstraZeneca is affected by product withdrawal.
OPPORTUNITIES
 AstraZeneca can increase its presences in the Global market and GSK can penetrate through
mergers and acquisitions globally (Epstein and Buhovac, 2014).
 GSK can assist in increasing awareness about the needs and wants in health care and
AstraZeneca can focus on the increase in the global ageing populace.
 AstraZeneca needs to increase the impotence of bio-similar market and GSK can make
strategic agreements with other pharmaceuticals organization to increase its research.
THREATS
7

 AstraZeneca faces the threat of copycat generic drugs that is Seroquel that is their
blockbuster drug and GSK Company faces the risk of failure of new products.
 AstraZeneca and GSK face the issues regarding the drug development guidelines which are
stringent.
 AstraZeneca and GSK face the competition with upcoming effective drugs from other
pharmaceutical companies and economic slowdown in the EU market.
8

P3 EVALUATE MEASURES THAT CAN BE TAKEN TO MINIMISE NEGATIVE
IMPACTS OF CHANGE ON ORGANIZATIONAL BEHAVIOUR
The influence of the change can be either positive or negative on the organizational behaviour in the
organization. Positive impacts on the organization boost the productivity and performance of the
companies such as AstraZeneca and GSK. Employee turnover, demotivation among employees low
productivity, increase in conflicts disruption in the work environment are some of the factors that
may occur due to the negative impact of change on the company (Montano and Kasprzyk, 2015).
Various change drivers are required to be identified and analysed the common factors that lead the
changes in the organization. Burke-Litwin change Model is to be used to analyse the change drivers.
This model states that the arrangement of change driver is done on the basis of their unique
importance.
Fig 1 Burke-Litwin Model of Organisational Change
[Source: https://culcwong93.wordpress.com/2016/03/20/theme-4-leadership-change/]
9

According to this model, factors in the external environment are the essential change drivers and
structure, motivation, the culture of the organization management practices are some of the other
change drivers. The top management such as managers and leaders adopts various measures so as
to reduce the adverse effect of change within the workplace. Some of the measures are given below:
MOTIVATION AMONG EMPLOYEES: human resource in any organization is the most important
division. The managers and leaders of the company should aim to motivate these employees so as to
leverage their productivity and performance. The duration of the change process may be very hectic
which makes the employees frustrated and stimulates resistance among them (Lozano, 2015). The
managers and leaders of the organization such as AstraZeneca and GSK need to motivate their
employee so as to reduce the effects of change on the behaviour of people in the organization.
MANAGING THE CULTURE OF THE ORGANIZATION: The collections of Values, beliefs, principles,
assumptions are shared to govern the behaviours of the employees in the organization is the
organizational culture. The organizational culture of one organization differs from that of other
organization because of their unique missions and visions. Some of the factors such as conventions,
values, behaviours, operations, beliefs guidelines are the basis of organizational culture (Epstein and
Buhovac, 2014). Therefore in order to eliminate the negative impacts of change, managers, as well
as leaders, need to manage the change in the culture of organizations such as AstraZeneca and GSK.
STRATEGIC AND PLAN DEVELOPMENT: the top management of the company including Board of
Directors should develop plans and strategies so that it aligns with the aims and objectives of the
company along with the changes. The company need to analyse the changes in the external
environment so as to implement the changes without affecting the operations of the company in a
negative manner (Al-Haddad and Kotnour, 2015). The strategies should be volatile and flexible in
nature and should be developed in by aligning the changes and be effectively communicated with
the human resources of the company.
10

TASK 2
P4 EXPLAIN DIFFERENT BARRIERS FOR CHANGE AND DETERMINE HOW
THEY INFLUENCE LEADERSHIP DECISION-MAKING
BARRIERS TO CHANGE
Every organization has to go through changes where they need to change their process, products or
services as well as other operating activities within the organizations. There are various barriers or
obstacles faced by the company that hampers the effective and efficient plan to implement the
changes. The company needs to analyse the impact of change so as to overcome the obstacles that
might arise in implementing the changes in the activities and operations of the business.
One of the major obstacles faced by the company such as AstraZeneca and GSK Company is the
resistance from the employees towards the change. The change in the organization stimulates the
resistance among its employees as it challenges the beliefs, habits and values as well as its sense of
competence of the employees (Northouse, 2015). The involvement of the employees is essential in
the process of change implementation as it will develop a sense of trust and loyalty towards the
changes in the organization.
Improper and ineffective communication leads to barriers in the process of change as partial or no
information results in the state of confusion among the employees leading to hindrance in the
process of change. It is essential for the companies such as AstraZeneca and GSK to analyse and
evaluate the present strategies so as to implement the changes in the business. The unclear present
strategy may lead to change difficulty in implementing the changes in the organization (Northouse,
2015). The complexity of the organizational procedures and other activities results in the resistant
to changes in the organizations such as AstraZeneca and GSK.
LEADERSHIP DECISION-MAKING
The impact of these barriers is huge in taking a decision by the leaders within the organizations such
as AstraZeneca and GSK. The present practices differ from the recommended practise in the
operations and activities of the organizations such as AstraZeneca and GSK. These barriers to change
affect the structure, culture and behaviour for the people of the organization in both negative and
positive way. The leader of the organization need to conduct a field analysis so as to identify the
11