Understanding and Leading Change in Organizations - Desklib

This report covers the impact of organizational change on strategies and operations, internal and external factors affecting management, team and individual behaviors, and ways to compensate for negative impacts of change. It also discusses barriers to change, leadership approaches, and case studies of Morrisons and J Sainsbury's.

Understanding &
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 How changes in the organisation have the impact on organisation's strategy and operations
explain with two examples. ........................................................................................................1
P2 Evaluate how the internal and external changes effects on management, team and
individual behaviours..................................................................................................................2
P3 What all efforts company can take in order to compensate the negative impact of change
on organisation behaviours.........................................................................................................7
P4 Different barriers to change and explanation of how they influence top level management
decision-making in Morrisons.....................................................................................................8
P5 Different leadership approaches to deal with changes in a range of Morrison....................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
This report covers the following, impact of organisation change on organisation strategies
and operations, the role of internal and external factor in influencing changes in management,
division and personal attitudes of employees, Option available to reduce the negative impact of
changes on organisation obstacle to changes and their impact on decision making, evaluating
different leadership and the different ways to deal with emerging changes . As businesses operate
in dynamic business environment so knowingly or unnoticed changes induced in the battle for
survival of the organisation in this completive environment(Abbas and Eltweri ,2021). As to be
stable in this changing environment company also introduce changes as to gain the advantage of
the opportunities provided by the situation or damages can be reduced to the level that no major
impact on organisation. Such as Morrison is a retail outlet which start to serve fresh made food at
outlet as well as on delivery at home. These changes improved the sale of the company and it
also compensate for the sale of raw material as company uses its own products as raw material so
company need not to maintain the sale for individual product but the final product compete the
quota. Further in detailed given below:-
MAIN BODY
P1 How changes in the organisation have the impact on organisation's strategy and
operations explain with two examples.
Morrisons
Wm Morrisons Supermarkets is the fourth largest supermarket chain in United Kingdom. As per
today company have 512 super market in across England, Wales and Scotland. Founded in 1899
by William Morrisons. Company have introduced new home made food chain which is prepared
with in house groceries. This is available on outlets for take away as well as home delivery. This
changes make Morrison a B to B as well due to which their products have regular customers
because they are absorbing their own product and adding value then sell. Impact can be seen on
market share and their profitability is increased. As innovation is key to success company
targeted on the needs of the customer due to which the product which are low in demand are not
available in warehouse. There warehousing cost reduced as due to scale they invest in
warehouses, no more rent . Due to large scale their bargaining power is increased in raw material
market.
J Sainsbury's plc
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It is a second largest chain in supermarket in united kingdom. Founded in 1869 by John James
Sainsbury is the second largest chain of super market in UK. The major role of this outlets to
provide with glossaries to the national. Sainsbury changed the packing method through it fresh
groceries self life will be increased due to which reduction in the wastage of food as people buy
in advance to meet up with supply company purchases more but with old techniques more than
25% product get damage. This new initiative company will add-on to the profits and increased
sale of groceries, It will provide competitive age over other brands. Customer's also be benefited
from this as their stocks of food can rest in home for more time, people can purchase in buck so
repeat-ion can be avoided. Both will be benefited as economic of scale will improve bargain
power and reduction in cost of operations. Products will be available to customer at low prices.
P2 Evaluate how the internal and external changes effects on management, team and
individual behaviours.
PESTLE Analysis
This analysis provide companies with overview that what all things are not In there control and
what impact these factor can impose to their existing business, what problem these factor can
cause to future plans of expansion and extra.
basis factors Morrisons J Sainsbury's plc
Political Factors Government Budget
Countries vision
Government have the
amount allotted to be
given as loan to
companies with the
same vision that why
Morrison is benefited
because of
that(Benzaghta and
et.al., 2021)(Buzan
and Whitehead, 2021)
(Christodoulou and
Cullinane, 2019)
(Fernandes, Machado
and Amaral, 2021)
UK government
provided tax benefits
to the companies
dealing in agriculture
produce as to promote
sustenance of food
supply for own
countries.
As Sainsbury's is also
helping in fulfilling
countries vision. That
why government is
promoting the product
so public invest in that
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(Hussain and et.al.,
2018).
As UK government
wanted to make their
country self reliant in
the field of agriculture
or food supply, So at
time of crises people
get affected with such
problems. Government
support help in
promotion of products.
product more and
more business startups
get promoted in the
field of agriculture.
Economic Factors Inflation
Average income level
Due to inflation it
would be difficult for
the normal public to
cook the at home
because of heavy price
of raw food Morrison
is benefited as their
sale for cooked
product is boosted.
Average income level
fall due to recession
demand for products
decline for Morrisons
products.
As due to the non
payment of loans
because of rescission
in the economic the
purchasing power of
customer is decreased.
So the produce go into
wastage. Loss is
suffered by
Sainsbury's.
Fall of average income
result in the fall of sale
as people shifted from
Sainsbury's food
preparation to Streat
vendors.
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Social Factors Consumer
behaviours
Work Culture
As after Covid people
have awareness
regarding good food
relation with health.
Consumer is shifting
on more of traditional
food which can seen
on the demand of
ready made health
food.
As UK's individual
have working habit in
both the gender which
lead to more of
consumers of the
products as their
purchasing power is
more, Morrisons also
get benefits of large
market.
As UK citizens have
the tendency to
consume fast food
which lead to low
demand of food
preparation
Sainsbury's products.
Work culture help the
companies to get
employee very easily
as every person have
the tendency to work
Sainsbury get
benefited.
Technological
Factors
Advancement in cool
storage
website development
Morrison can use cold
storage to preserve the
food preparation
which reduce the cost
of production.
Easy Order placement
is use by Morrison
help to reduce the
People prefer frozen
food which can last for
months, which can be
microwaved at any
point of time. Reduce
the sale of Sainsbury
food preparation.
Provide very easy
access to new player
which it creating more
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work force. Low
operating cost
transferred to
consumer.
intense completive
environment lead to
reduction in
Sainsbury's market
Share.
Environmental
Factors
One time use plastic
explosion
Low productive of
land
Ban on plastic increase
the costing of
packaging reduce
profit for Morrison.
UK unable to produce
the adequate quantity
lead to more expensive
raw material for
processed food. Low
profit margin for
Morrisons.
As the new paper and
cloth bags are not
good replacement of
the plastic lead to
spoilage of products
loss for Sainsbury's.
More costing lead to
loss in competitive
edge for Sainsbury.
Legal Factors Food certification
Taxation regulations
Morrisons need to
have food certification
as they are providing
cooked food need to
pay fees on regular
bases add on to the
reputation(Jonibek,
2021).
Complexity in taxation
lead to appointment of
separate staff increase
in costing for
Sainsbury need not a
food certification as
they not adding value
to the product low cost
compared to
other,more profit
margin for Sainsbury.
Taxation company get
debate as their motive
is aligns with of
government motive
benefits for
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Morrisons. Sainsbury's.
SWOT Analysis of Morrisons
Strengths
Huge Distribution network:- Morrisons
successful maintain the large coverage through
the chain of retailers.
Access to capital market:- Morrisons is listed
on London Stock Exchange can easy raise
funds through shares.
Weakness
Bad Relation with framers:- organisation
have issue of right violation of the framers,
unable to resolve it till now.
Low Expansion rate:- Morrison have limited
rate of expansion as compared to competitors
so loses competitive edge to others.
Opportunities
Growing demand for organic products:- Can
boost businesses locally as well internationally
targeting the organic market(Juliana, Gani and
Jermias, 2021).
Takeover of Small brands for expansion:-
Morrison can takeover new venture to expand
reach and to reduce competitions.
Threats
Competition from huge brands:- Morrison
competitor capital investment is more so their
scale of economic is better Morrison product
prices are high.
Easy entry of new player :- Any Group of
people Through the internet and website can
reach to the any market easily posing threat to
existing players.
SWOT Analysis of Sainsbury's
Strengths
Experienced leadership:- Sainsbury's is old
company recruited and maintained well
experienced and skilled staff. Decision which
proved to best taken by them.
Effective Marketing:- Organisation is
successful in inducing sale as per the
requirement of the time. This enable Sainsbury
to achieve scales of economic.
Weakness
Fluctuation in the price of the products:- As
the shortage in food supply in the entire world
lead to increase in the price of products to
maintain it to optimum product rate are
fluctuating.
Low diversification in agriculture products:-
Company is not able to provide the different
varieties of same products But other have
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variety which provide them completive edge.
Opportunities
Expansion through self owned
warehousing:- Through online distribution
company can reach distant area more quickly.
Help increase market share.
Enter into international market:- Company
can enter in the market of Asia and Africa.
Threats
From marketing companies:- Companies
import products from all round the world they
get it for very low. Creating price competition
in the market(Kolomiets, Grinchenkov and
Vodenko, 2019).
Low skilled computer technical staff:-
Personal with computer skills are not retained
by the company, lack can hamper business.
P3 What all efforts company can take in order to compensate the negative impact of change
on organisation behaviours.
 Regular training and development program for employees:- As Morrisons moving
forward in business in dynamic environment need to incorporate required changes to
meet with the uncertainties in effective way(Maár, 2019). HR need to update the
requirement of skills for the posts and then management need to check the workforce
according to the prescribed skill set then all then unfit personal need to take the training
and development program to be in compo-tent position for the job.
 Innovation in Selling techniques:- Morrisons need to do research and development on
selling techniques as the prime motive of organisation and individuals only get fulfilled
with sales. Company focus on finding the best ways to sell the product then adopt the best
combination suitable in accordance to the target of the company.
 Advanced usage of social media and new emerging technologies for promotion:- As
old technology is not consumed by the target audience of the Morrisons so company
need to diversify their media mix of promotion to maintain adequate customers inflows.
Such as Instagram official promotion can be used to promote product and events like
sales, individual promotion can be done through Instagram and Facebook-influencer to
increase the reach to customers.
 Market assessment and evaluation of emerging trends:- Market assessment is required
regularly as today market change per sec to keep up with the changes Morrison need to
set up a septate team to study to the frequent changes of market to find out the trends so
that production can be expanded of the goods which are in great demand in near
futures(Nandonde, 2019). These all information is very helpful for the management to
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take decision like what all product need to stopped from production and what product
mix can be optimum for the production to maximize the profitability.
 Evaluation of company in respect of competition:- It would be very necessary for the
organisation to keep a check on competitors as it act in favour of the company. Company
can adopt the same strategies which is successful in case of competitor or can avoid the
decision proved to be disastrous for them. This will provide with the insight of industries
to the management that they can be prepared for the competitors move that can be used to
the advantages of their own success.
 Advancement in the field of company dealing Incorporations:- Management need to
be updated with the new techniques of operation that is more efficient in
execution(Porfírio, 2021). This will provide with the competitive edge to Morrison
company can standout such as company started diversifying product by introducing home
like food at outlets and delivered at home. Morrison can enter in new market sector which
provide their product ready market as they can absorb their own product as raw material
for other products.
 Replacing ineffective employees with new, advance and talented personnels:- In this
company can take initiatives to report the working of employee through which they can
known the best employees which is need to be appreciated through bonus or promotion.
Elimination of ineffective employee is a must and vacant position is filled with new,
effective and talented personnel.
P4 Different barriers to change and explanation of how they influence top level
management decision-making in Morrisons.
Force Field analysis
Force Field is a frame work which was discovered by Kurt Lewin in 1940. Its was not
originally discovered for business purpose but now it is used to check on to decision which to
take forward or not. This frame work cover all the pros which is called force for change and cons
which is called forces resisting changes. Firstly the decision is discussed properly that what
changes it make in current situation why is necessary to do such changes. Then all the pros
means force to change that what all good thing it do when it is enacted. In here identification of
all lacking areas is done here. Then all cons means the forces against changes,risk involved in
taking decision. Then provide them with scores 1 for 1 pro and -1 for con adding all factors
getting positive result means carry on with decision if negative result mean no carry forward with
decision. All the factors explained below:-
Supporting Factors Resisting Factors
 Opportunities for expansion
 Trends and Government vision is
aligned
 Easy access to market
 Unstable supply of glossaries
 High risk as Low rate of return
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 Experience Staff
 new technologies increase efficiency
 Factors Influencing Change
◦ Opportunities for expansion:- As introduction of new product provide the
opportunities to expand to new market as well as help to increase the market in the
existing market. As other companies are not moving in this direction it provide us
with the competitive advantages. Company also get first mover advantages as their
product is not available in the market right now.
◦ Trends and Government vision is aligned:- It is a very good time to take step as
Morrison objectives are aligned with trends and government agenda. Product
company deciding to introduce is already demanded by the consumer so there is not
much need of promotion activities. Government also provide support as completion
of
Morrisons agenda bring the government target closer to the level of completion.
◦ Experience Staff:- Morrison is successful in finding the talented person and able to
retain them for longest of time provides with trusted and experienced staff which is
able to adapt with the change company is wanting for the success of the company.
Any uncertainness can be combated with the experience of staff(Radwan, 2020).
◦ New technologies increase efficiency:- As new technologies provide the support for
existing product as well make companies capable for production of new products. As
improvement in technologies provide with competitive edge over others. As these
product will add-on to the brand image and provide stabilities to the profits with
diversification.
 Resisting Factors to Change
◦ Easy access to market:- As opening an home like food chain on online platform is
not much on difficult and expensive business, Morrison company will face huge
competition whenever they introduce it to market. It is a possibilities that company
loses it existing market share in existing product because resources will be diverted to
new products.
◦ Unstable supply of glossaries:- As due to war in Russia and Ukraine, Afghanistan
political crises and buffer stock decreased to lowest level at times so Companies with
good economic condition trying to purchase more essential goods and having low
supply of food pricing shooting high. At this time company getting raw material at
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high cost value addition make it more costly there is chance to experience low
demand(Rohmah and Subriadi,2020).
◦ High risk as Low rate of return:- Morrisons need to invest a huge amount to start
new product and prediction says the demand for this product is not much so return of
invest is low so to reach at level the break even will take at least one year,
Management need to think that it will survive for that much time because if not it lead
to loss of full capital.
These factors influence the decision making as management consider all the above
discussed, In businesses only calculated risk is taken to do so management analysis the situation
to the fullest level. Only the decision having most pros and least cons is given priority all
situations. But sometime the decision seem feasible today may not be in future are ignored as
investing in such thing can cause huge losses. In context of Morrison company company decided
to open ready cook food chain which is taken into consideration after full evaluation of idea
When the idea proved to be in best interest of the company as it make them capable of absorbing
their own products, and in this new product make them highest purchasing power holder as they
purchase for direct selling as well as a value added product company get relaxation on tax as well
they can show it as raw material for the industries. Management decided to take such risk.
P5 Different leadership approaches to deal with changes in a range of Morrison.
Kottler's 8-Step Model:- John Kotter is a Harvard business school professor and renowned
author on change matter. He developed this idea with 100 organisation taken into consideration
for change.
 Create Urgency:- Morrisons management identified the opportunity to tape in the
customer of health home made food. Then management conduced surveys after getting
positive result. Introduced the idea for change in meetings. Management tried to
influence all the board member over the idea. Support plan also discussed(Rosdiana and
Aslami, 2022).
 Form a Powerful Coalition:- The key change management needed in way to achieving
successful change. Morrison arranged a team of glossaries keeper, chefs, waiters and
management staff all have expertise in related matters.
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 Create a Vision for Change:- Morrison assigned the targets to team which they need to
achieve for achievement of organisation vision. Morrison vision is to supply adequate
supply of food in countries. Regular monitoring of efforts made by employees in order of
any deviation management provide direction to keep company on track of success.
 Communicate the Vision:- Morrison vision is communicated with employees and
interested parties in respect to the amount of contribution and effort they need to put in. If
any parties have problem concern have to be addressed are solution need to be provided.
 Remove obstacles:- Morrison management evaluating the situation in working
environment in order to identify the problem in changes and removing the obstacle to
change providing corrective action plans. Providing intensives to the people accepting
changes at earliest.
 Create short-term wins:- Morrison provide each and every level of employee with the
short term targets which can be achieved in small time and provide sense of
accomplishment which act as motivation to the employees .
 Build on the change:- Management analysis the success stories people who passed
according to the target assigned to them. Management reach to the conclusion what
difference between flexible and rigid people, management accordingly plan on process to
introduce change.
 Anchor changes in Corporate Culture:- This the most curial part management focus
onto the gains in organisational level as on to the individual level. Morrison company try
to maintain the culture of positive change through old leaders and passing this legacy to
new leaders.
Lewin's Change Management Model
 Unfreeze:- It is very similar with the concept of urgency in above model, Here Morrison
create preparedness about the change as business organisation operates in dynamic
environment which make flexibility as necessities for survival and growth to do so
management try to change the working environment through rotation of jobs or
temporary promotion. This induce the flexibilities in adoption of changes.
 Change:- here the change actually take place Morrison take continuos flow to
information to the priority So workforce is provided with the communication devices to
promptly communicate the problems, management conduct session where employees
play games of role play make them acceptable towards changes , reaction is taken on
regular basis and provide small targets to team in order to motivate them.
 Refreeze:- Here company faces most of the problems as human have the tendency to
move back to old habits all the changes will be reverse. To stop such things Morrison
provide the incentive to new adopters as they influence other to follow their path in order
to be successful. Collection of data about the feedback towards changes from employees
as well as from customers. Provide training to the employee unable to performed the task
changed(Tang, 2019).
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CONCLUSION
From the report this conclusion can be drawn That business operate in dynamic in
environment where most of things change continuously its a necessities to adapt to the changes
in order to reach to organisational goal. In context of above taken company, Morrison and
Sainsbury adopted changes in order to take advantages of the opportunities. As company get
short term benefits as it is a early mover and in long term they are old players. Main driver for
change is human resource as it poses varied responses towards changes. It is comprised of
internal and external evaluation to changes to identity the area need change then the course of
action management take into consideration to achievement of changes.
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REFERENCES
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from the implementation of a port energy management system: A SWOT/PESTLE
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business strategy, leadership style, organizational culture and management accounting
systems. International Journal of Ethics and Systems.
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Like, L., Leading in a changing world.
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Maár, K., 2019. DEVELOPMENT OF A STRATEGIC CHANGE PROGRAM FOR AN
ORGANIZATION OPERATING IN THE INTERNATIONAL MARKET. Актуальные
проблемы авиации и космонавтики, 3, pp.389-391.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
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Rosdiana, N. and Aslami, N., 2022. The Main Models of Change Management in Kurt Lewin's
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Tang, K.N., 2019. Change management. In Leadership and change management (pp. 47-55).
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