Understanding and Leading Change in H&M

UNDERSTANDING AND LEADING
CHANGE

Tables of Content
INTRODUCTION......................................................................................................................3
TASK1.......................................................................................................................................3
P1Impact of change on an organisation’s strategy and operations........................................3
TASK2.......................................................................................................................................5
P2Influences of change drivers on organisational behaviour................................................5
P3 Measures for reducing negative impacts of change on organisational behaviour............6
TASK3.......................................................................................................................................7
P4Barriers to change affecting decision making in H&M.....................................................7
TASK4.......................................................................................................................................8
P5 Different leadership approaches for dealing with change in H&M..................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................11
Books and journals:..............................................................................................................11

INTRODUCTION
A business goes through number of changes due to dynamic nature of micro and
macro environment as well as internal environment of a company. It is necessary to comply
with changes effectively for consistent growth and success in an organisation. Businesses
which fail to cope with emerging changes in the markets for them it become difficult to
survive in future. It is because of direct impact of changes on the operations of a business
and sustainability in the markets. This leads to review of strategies and action plans to
embrace changes in the markets. Thus, changes are indispensible for the growth and
development of a company which further helps in acquiring sustainable market share. Hennes
& Mauritz is a Swedish multinational retail company which deals in fashion industry. It has
large number of stores operating in different countries and serving customers worldwide. It
has prominence in clothing products for men, women, teenagers and children with
accessories (Alavi and Gill ,2017) . This report includes impacts of change on organisation’s
strategies and operations. Also, it includes influences change has on organisational behaviour
and barriers to change.
TASK1
P1Impact of change on an organisation’s strategy and operations
Implementing change has various impacts on the organisation strategy and operations
of a company. There are several internal and external drivers of change which helps in
transforming behaviour of teams and individuals. These change drivers are the situations or
conditions which bring changes in the working of an organisation. For H&M there are several
factors which impact long term functioning of company. These are as following:
 Various political factors available in the countries affect the operations and business
of H&M. In UK due to various fluctuations present in political environment such as
BREXIT, changes in government policies hamper business of the company. These
factors have long term impact on the company due to uncontrollable nature which
affects the overall performance. By implanting these changes inside the company, it
affects working leading to long term changes.
 It faces various economic factors which cause vulnerabilities to the company such as
economic condition of a country, changes in demand and supply of industry affects
the decision making of H&M. This has long term impacts due to changes in the
financial condition of a company.
Furthermore, due to advancement or development of technology becomes a major source for
driving change in the company. With this H&M has to bring new technology leading to
change in the operations due to replacement of former technology. It affects operations in the
company drastically due to changes in the methodology and functioning has long term
impacts (Bohman, 2019).
From this it can be determine various drivers of change for H&M. These change drivers has
impact on the productivity and profitability of company. Due to varied changes in the

political and economic state of UK leads to changes in the strategic planning and operations
of a company.
Impact of change
Reflecting on the impacts of change on H&M, it can be assessed that due to dynamic
and uncertain nature of business environment it impacts change in the organisation in
following ways
Implementation of change in an organisation has major effects on the performance and
profitability. This leads to immersive effect on long term growth and productivity of a
company. Changes happening due to economic and political state of a country may leads to
alteration in strategic plans of H&M. However, changes are substitutes and essential for
growth or sustainable development of a company. It occurs due to favourability of changes in
a business leading to increase in the performance and profitability. Otherwise companies get
severely affected when emerging changes are challenging and hard to cope with (Boyatzis
and Cavanagh, 2018). The most affected areas include marketing and sale of products,
performances of employees and productivity etc.
Changes on organisational strategies
Emerging changes or marginal changes occurring in an organisation leads to
alteration of strategies and plans affecting previous plans drastically. This leads to
transformation in the strategies by developing new plans and approaches. It helps in
improvising existing plans as per the dynamics in the business environment. These new
situations help H&M to grow with new situations by adapting changes and enhancing overall
productivity. This directs all the departments to alter and modify their strategies with
following changes in the company. It requires managers to implement change in major areas
with degree of changes affected operations in a company. These areas may include
organisational structuring, alterations in policies, growth and development plans, changes in
the skills of employees, training and development of employees etc. Thus, it can be
determined that new changes affect former strategies of H&M drastically. It is done by
adopting new strategies focusing on growth and sustainability of company with degree of
change in business environment (Drago-Severson and Blum-DeStefano, 2018).
Basis H&M Marks and Spencer
Developing new strategies Due to BREXIT and
economic crisis in UK, it
leads to number if changes in
H&M for coping with
situation. It has to modify
existing plans and develops
new strategies in the
company. They focus on
minimising range of products
with narrowing target
markets to serve. It targets
Marks and Spencer also
implement changes to
overcome threats of BREXIT
and economic crisis. This is
done by developing new
strategies and action plans
for increasing and sustaining
sales of the products. It
targets new business
opportunities due to
emerging changes in the