This report discusses the impact of change on the organisational strategies and operations of House of Fraser's. It explores the drivers of change, PEST analysis, and the impact on leadership, individuals, and team behaviours. It also suggests ways to minimize the impact of change.
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Unit 17 Leading and Managing Change
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Table of Contents INTRODUCTION...........................................................................................................................1 SCENARIO 1...................................................................................................................................1 1) Case study overview...............................................................................................................1 2) Change drives and its impact on organisation strategy...........................................................1 3) PEST analysis and comparison between two firms and its impact on organisation...............3 4) Impact of change on organisational strategies and operations of House of Fraser's.............4 5) impact of change on leadership, individuals and team behaviours.........................................4 6) How the impact of change can be minimized.........................................................................5 SCENARIO 2..............................................................................................................................7 Covered in PPT...........................................................................................................................7 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION Changes are an essential part for a company that work as an effective process for changing and implementing new business strategy, processes, culture and procedure. The main motive to understand change is to introduce the impacts of dynamic environment alternations on the business operations and functions in order to improve productivity and performance of organisation. This results business houses will achieve more success easily. Moreover, this report is written from perspective of two different case studies that is Sports direct and House of Fraser's. Sports direct is British retail group which offers their products overall world and also operates number of sporting brands to operate them in market(Quirke, 2017). On the other side, House of Fraser is a British department store that manage business in Ireland and United Kingdom. Moreover, the report highlights on overview of case study and influence of change drivers on organisation. Along with this barrier of change and their influence on decision-making will also be focused in this report. SCENARIO 1 1) Case study overview The chosen case study for this report is House of Fraser's. Mike Ashley is prepared to invest huge amount of money to turn the business into a mini-chain stores. The main aim of organisation is to establish themselves in market as Frasers. This is a major change which management decided to implement and follow in organisation. Moreover, the reason to invest huge amount of money is that organisation reduces their market share with £3m. So it is mandatory for management to utilise information system for cutting cost through shifting their warehouses in Shirebrook. 2) Change drives and its impact on organisation strategy Internal and external are two separate driver of change which is impacting on business and their operations. Capabilities, inventions, desires and resources are considered as internal drives. Similarly, aspects which are beyond control of management like competitors, customers, government are consider in external drivers(Meier, 2016). This are main diverse which directly influence on business operations and strategies. So house of Fraser & sport direct monitor some change which impact on organisational strategy are mention as follow: Similarities and differences:
Change impact on operations and strategy as to adopt new environment of market it is mandatory toimplementnewbusinessstrategyforperformingworkeffectively.Theirarevarious operations and functions are performed by management of both companies whether House of Fraser's or sports direct. This determines both organisation implement updated technology in their transaction, operations and role due to which work in completed within minimum time period. Along with this both firm work with motive of achieving organisational goals through developing efficacious strategy which also work as positive factor to adopt changes. Further, both are different from each other as human resources and automated function are contrary for each function and task. ChangeHouse of Fraser'sSports Direct Process ChangeOperationalchangessuchas Rebranding are carried out by management.Asperthis changeorganisation implementnewstyleof working to focus on fulfilling needsofbuyertoincrease customersatisfactionlevel (Kickul and Lyons, 2016). The major changes in Sports direct will be done with motive of expandingtheirbusiness's as per buying and bulling. This ismajorprocessforchange which positively impact on all operations of business's as it relateswithprocessof company. Strategical changeThemajorconcernof organisationistodevelop luxurymini-chain.Forthis managementfocusesonIT system to shift warehouse in Shirebook. Moreover, it work best strategy which positively impact on business operations for increasing market growth. Sportsdirectmanagement trade with different business's area that work with reduce its profits. So to deal with them themajorconcernof organisationistonegotiate suchasreducingrent,slash their cost of operations etc. it alsogoverntodevelop business'stoachievemore success.
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PeopleHuman are the major asset for organisationwhichleads management to achieve huge success in market. This refers with better management it is easy to complete all task in appropriate manner for House of Fraser's by delegating right role to right employee. In the present scenario, people aremajorlyconcernedabout changes in macro environment. Thisdeterminesdueto changes in business functions itisessentialforsportto providebettertrainingtoits employee's.Sothefuture resultswillbeeffectivefor organisation. 3) PEST analysis and comparison between two firms and its impact on organisation PEST and SWOT analysis introduce as an effective framework for conducting internal and external analysis that directly impact on business operations and strategy(Harris, 2012). With PEST analysis there are various strategies and operations are managed to understand macro environment of organisation. It is an effective business tool that organise, evaluate and discover new economic forces. Political, economical, social and technological are the aspects which are considered in PEST. It helps management to analyse impact on operations and strategies of respective organisation. SWOT analysis-It is an internal factor for an organisation which affect on strategy and functions of management relates with House of Fraser's and sports direct. House of Fraser Strength Major strength for House of Fraser refers that are globally present due to which its products and services are available at all place(Gupta and Mishra, 2016). On the other side, high quality products is also a major strength for company and its departments. Weakness Thedeliveryofproductsascompareto competitors is high due to this large product extensiongenerateshighcomplexityfor customers. Opportunity House of Fraser expand their market share Threat In context of House of Fraser due to intense
through adopting SEO and HOF brands due to which untapped market area will be covered by management and it also increase profit margin for organisation. levelofcompetitionandBrexitthereare severalnegativechangeswillimpacton business performance due to which position of market is impacted. Sports Direct Strength The major strength for Sports direct is that there are multi-channel stores are present in market. Moreover, they are operating business in 20 countries so with large number of stores management is increasing its sales in short period. Weakness Due to unfair trade practices and poor working conditions there are various challenges are faced byorganisationtotargetmorenumberof customers.Soitisamajorweaknessfor organisation. Opportunity The market of developed countries such as Australia,USetc.thedemandofsport equipments is increasing with rapid speed. Moreover, demand of camping requirements and sports wear also provide new market area for offering business's operations. Threat Large number of competitors from local and global level both are engaged in sport industry because of its regular enhancing in business's area. So price factor and market area work as major challenge and threat for Sports direct. 4) Impact of change on organisational strategies and operations of House of Fraser's With the mention changes it is analysed that there are various internal and external aspects are present in market which impact on business operations. Therefore, with PEST analysis it is analysed that political factor and government of UK is flexible for companies. So it works as positive factor for House of Fraser due to which it is easy to establish a luxury chain of stores. Further, the present scenario consists different technological perspective due to which majority of business's are performing their work at global level(Roe, 2017). So to deal with this situation of global aspects House of Fraser's implements information technology tools due to which better results will be gained by management such as increase in sales of organisation. The
main motive to understand changes is to develop those strategies which increases business at global level by considering international aspects in organisational functions and operations. 5) impact of change on leadership, individuals and team behaviours With the process of change there are various operations and task of organisation are impacted due to which its business's are impacted. On the other side, it also impact on team behaviour and individual on the bases of performing task due to modification in leadership style (Doppelt, 2017). Some major changes which are analysed in House of Fraser's are mention as follow: The main responsibility and role of leader is to select and implement right style of leadership. So as per case study of House of Fraser's democratic style of leadership is followed by organisation. Processchangeimpactsonteambehaviourthisreferstoexpandbusiness'sarea management must formulate modifications in their business's. Moreover, with right direction of leadership organisational will perform their work with positive approach. With the change in human workforce and individual behaviour there is direct increase in knowledge and information due to which management easily implement new strategies in organisation. There are mainly two types of drivers of changes such as internal and external which impacts on the individual, team behaviour and leadership so that House of Fraser's analysed several ways in order to minimise the influences of that from leadership and team or individual behaviour. Internal drivers: Resources: It is related to the physical, financial and technological resources that are essential elements for a business organisation. Within the context of House of Fraser's, when company is not able to facilitate requisites resources then workers are unable to complete tasks appropriately that highly impacts on their performance either individual or team. This will lead to completethe operational activateswhich decreasesthe entire performanceas well as productivity. Along with this, leadership style of a leader influenced as they are not able to adopt skills to guide their followers in order to improve performance. External drivers: Government regulations:As the political changes can highly influenced the practices, policies and rules of organisation. With respect of House of Fraser's, if they can avoid these
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changes which are enforced by the government then they charge heavy penalties. This may lead the behavioural influences of individual or team as well as leadership skills of a leaders which will shows decreasing performance as well as less satisfaction at a time of being responsible for their works. 6) How the impact of change can be minimized Burke-Litwen model is also utilised by organisation to make better results that make changes in process of organisation within appropriate manner(Dawson and Andriopoulos, 2014). This also refers to make changes for establishing cause and effect relationship. External environment-There are various factors are liable to bring changes within organisation. It also refers to make sports direct to involve behaviour of customers, competition and legislation within in market and department. House of Fraser's face challenge such as complexity in trade activities. Mission & strategy-Mission statement comprises to develop better number of stores as mini-chain due to which brands of organisation are established in effective manner. Leadership-In the leadership process persons are more directed towards utilise of supportive and democratic leadership style. This enable individuals to share better opinion and ideas to generate more creativity in work functions.With the right leadership style and technique it is easy to deal with challenges that cut down productivity of organisation. In context of House of Fraser's and sports direct both are concerned about democratic style so it work as positive factor for organisation. This determines leaders who adopt participatory or democratic method consider view and perspective of majority employee's so due to collaborative decision operations are performed with approach of reducing negative impact on operations. Organisational culture-From the perspective of House of Fraser's task culture is used by organisation to buy and build better firms. Moreover, dependence of firm depend on those services which record and monitor business transaction on daily basis.With an established and sustainable task culture it is easy for management to reduce negative impact by completing all task with positive approach through utilising nominal resources and developing maximum output from them. Example- task culture conjecture effective teams for solving specific problems of company. Structure-Structure and framework are the base on which bases organisation perform their work. This services to complete work with systematic approach for performing all
operations in effective manner(Cummings, Bridgman and Brown, 2016).Moreover, structure reduces negative behaviour by performing all work with in organised manner. Due to which all task and operations are performed in a sequence and proper cognition also divided all roles and responsibilities in proper manner. Systems-It involve procedures and policies that are implement and follow by House of Fraser's for supporting employee's that also helps to make changes according to desired standards.System helps to make effective decision by undertaking essential part of organisation through proper management between all resources. Management practices-management and its practices which is operated by managers are implemented with aim of accomplish business goals.This also refers that with better strategies it is easy for management to ensure long term results by implementing new policy as well as to make right decisions. Working climate-With positive working environment there are task are performed by management that is impacting in innovation and its services. So it is essential for house of Fraser's to implement new activities in their functions. Tasks & skills-It undertakes fulfilment of task and to align job according to job description. It also involve in requirement of task and to fulfil all projects according to job expertise. It results all functions are performed with in right manner. Individualvaluesandneeds-AccordingtoHouseofFraser'sinformationmust acknowledge according to work life balance and various rewards that basically undertake quality work for organisation(Burke, 2017). Motivationallevel-ContenttheoriessuchasMaslow'stheorywillbeselectedto encourage employee's for performing their work in effective manner. Individual & team performance-An organisation will face success only if individual and team both perform their work towards the accomplish of organisational goals and objectives. This results all task will be completed in proper manner. The most effective tool for organisation refers to implement new changes with model that helps management to complete their work with more efficiency and effectiveness. This refers that organisation will focused towards implementing changes in their process and strategies. Moreover, Lewin's change management model consider three different steps which are Unfreeze,
change and then Refreeze. The main stages of model that is beneficial for organisation impact on strategy and process. Steps of Lewin's change model is mention as follow: Unfreeze-Unfreeze of ideas or work is the first process under which management will implement new changes in society due to which there are various changes will be impacted. Change-The next step for management refers to develop and implement new changes which helps organisation to gain long term results. Moreover, this changes are depend on market environment and its conditions which are changing with rapid face in market. So with this it is easy for organisation to perform work as per market conditions. Refreeze-refreezing is the last stage for Lewin's change management in this process organisation will perform their work with new ideas. This results all task which are performed by management will be done in proper manner with new steps. SCENARIO 2 Covered in PPT CONCLUSION It has been summarised from the above report that changes in the business strategies and operations impact on the organisational activities and decisions. Mainly two factors like internal and external environmental aspects have huge impact on the organisational strategies. As SWOT as well as PEST analysis have been analysed by the business for identifying the influences of both factors. For managing the changes in an effective manner, manager of company adopts Lewin Change management model. In addition, Force field analysis also been applied by a company for examining the favourable as well as adverse impacts of changes.
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REFERENCES Books and Journals Burke, W.W., 2017.Organization change: Theory and practice. Sage Publications. Cummings, S., Bridgman, T. and Brown, K.G., 2016. Unfreezing change as three steps: RethinkingKurt Lewin’slegacy for change management.Human relations.69(1). pp.33-60. Dawson, P. and Andriopoulos, C., 2014.Managing change, creativity and innovation. Sage. Doppelt, B., 2017.Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge. Gupta, G. and Mishra, R.P., 2016. A SWOT analysis of reliability centered maintenance framework.Journal of Quality in Maintenance Engineering.22(2). pp.130-145. Harris, M. P., 2012. Comparative genetics of postembryonic development as a means to understand evolutionary change.Journal of Applied Ichthyology.28(3).pp.306-315. Kickul, J. and Lyons, T.S., 2016.Understanding social entrepreneurship: The relentless pursuit of mission in an ever changing world. Routledge. Meier, D., 2016. Situational Leadership Theory as a Foundation for a Blended Learning Framework.Journal of Education and Practice.7(10). pp.25-30. Quirke, B., 2017.Making the connections: using internal communication to turn strategy into action. Routledge. Roe, K., 2017.Leadership: practice and perspectives. Oxford University Press. Sarsby, A., 2016.SWOT analysis. Lulu. Com. Stanleigh, M., 2013. Leading change.The Journal for Quality and Participation.36(2).p.39. Online Lewin'sForceFieldModel.2018.[Online].AvailableThrough: <https://www.tutor2u.net/business/reference/models-of-change-management-lewins-force-field- model>.