Leading Change: Comparing AGFA and Golden Wonders' Strategies

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This report examines change management strategies within two organizations, AGFA and Golden Wonders. It begins with a comparative analysis of how these companies have adapted their strategies and operations in response to market changes, including technological advancements and evolving consumer preferences. The report delves into the drivers of change, utilizing PEST analysis to identify political, economic, social, and technological factors influencing both organizations. It then explores methods to mitigate the negative impacts of change, applying Lewin's change model and Kotler's model of change to illustrate effective approaches. Furthermore, the report investigates barriers to change and different leadership approaches employed to navigate organizational transformations, concluding with a synthesis of the key findings and implications for leading change effectively. The report is designed to offer insights into how organizations can successfully adapt to changing environments and maintain a competitive edge, offering valuable knowledge and practical applications for change management.
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UNDERSTANDING AND
LEADING CHANGE
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1Comparison between different organizations where there is an impact of change on an
organization’s strategy and operations...................................................................................3
LO 2.................................................................................................................................................5
P 2 Drivers of change.............................................................................................................5
P 3: Measures to minimize negative impact of change..........................................................6
LO 3.................................................................................................................................................9
P 4 Barriers for change...........................................................................................................9
LO 4...............................................................................................................................................11
P 5 Leadership approaches...................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14
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INTRODUCTION
Understanding and Leading Change helps organization to deal with the problems and
situations that come with initiation and implementation of change. AGFA is a Germany based
technology-centric organization headquartered at Mortsel, Belgium with revenue of 2.2 billion
euros. It basically deals in consumer imaging, graphic systems, technical imaging etc. It provides
technological solutions and cater various industry such as airlines, hospital, graphics etc.
Golden wonders are a British multinational organization headquartered at North
Lincolnshire, United Kingdom owned by TAYTO (North Ireland) limited. It manufactures snack
items and crisps.
This study includes in brief drivers and impacts of change and their effect on both
organizations. Application of various theories to study change and its effect on the organization
in terms of leadership, team, individuals and overall organizational culture. It includes how both
organizations applied change and anchored change to survive and outgrow their competitors.
LO 1
P 1 Comparison between different organizations where there is an impact of change on an
organization’s strategy and operations.
In present scenario, business climate change is a regular phenomenon and changing
strategies and operations accordingly has become vital for every organization. Many years ago
change happened at really slow pace like snail but today it seems to be on a daily menu. Leaders
and managers need to be sensitive and dynamic to make changes accordingly when and where
required and should be able to make their human capital absorb impact of change. Enlisted are
two organizations which made changes according to latest trends and technology along with their
comparison on how change impacted both the organization's strategy and operations.
Golden wonder AGFA
Golden Wonder is successfully carrying their
business over fifty years in United Kingdom. It
has developed product portfolio which includes
various types of crisps and snacks. Golden
wonder has always focused on innovation and
pioneered first salty crisp and flavored chips.
AGFA is a leading innovator doing operating
in various fields such as Consumer imaging,
Graphic systems, Technical imaging. The main
strategy of AGFA has always been embracing
new technology, analyze that change can be
accomplished or not and will the change be
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Golden wonder always prepared for changes
even if beyond the control of the organization
and looked to it as inevitable and not
something to be scared of. There was a rise in
demand of snacks which are convenient,
portable and cheap. Golden wonder formed its
strategy of always being market orientated and
analyze the changes in the marketplace and
responded to these changes by carrying out
market research. There was a desire for healthy
eating and growing concern for knowing the
ingredients of food and is it good for health or
not coupled with this there was also media
driven preoccupation with outward beauty
(Amey and etal., 2018). There was a general
desire to eat healthily (consume less fat), lose
weight and look good. People again started
shifting towards natural products. Nutritional
value and calorie contents of whatever they
were eating became more important and
consumers even compromised on taste. Golden
wonder took this as an opportunity and made
changes in its operations by making
technological advancements, made investments
in research and development, developed low
fat healthy products and marketed them
properly in the market. Took feedback
seriously and made improvements in existing
products. Golden wonders took tastes and
preferences of consumers seriously and
designed its strategy and operation in that
profitable or not. AGFA deals in technological
areas which has completely transformed and is
more dynamic than any other organization.
AGFA has made changes in its strategies at
fast pace and was devoted towards innovation.
AGFA abandoned old practices and formed
new strategies and changed its operations to
survive and remain profitable (Anderson.,
2016). AGFA is leader in imaging industry,
through its operational efficiency it developed
various analogue and digital imaging. AGFA
developed innovation to enhance imaging
products which helped in processing and
manipulating pictures, made products for
graphic industry like scanners, laser images
etc. AGFA also serves Medical, aircraft etc. by
manufacturing x-ray equipment. AGFA
believed in serving customer in each market
analyze strengths and weakness and constantly
performed market research to innovate and
develop products according to market needs.
This strategy was used by AGFA in
performing its operations and responded to
change.
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direction only which made them profitable.
LO 2
P 2 Drivers of change
There are various drivers of changes. This can include factors from Pest. These are as follows:
PEST Analysis of AGFA
Political factors – Amendment in the tax legislation, employee regulation, consumer
protection and insurance mandate are the effective element of political sphere which directly
affects the AGFA Healthcare. For example, alteration in the employment law in 2016 has an
adverse effect on the employee's overtime requirements, which have a major adjustment by the
leaders and the managers in their staffing and overtime needs (Burke, 2017).
Economic factors – Economic issues like unemployment, interest rates and inflation
directly or indirectly affects the financial performance of the AGFA Healthcare. This factors
affect the purchasing power of the consumers in the market. For example, Recession in 2008 had
bad impact on the employment rate a many companies had eliminated the huge number of
employees thus this affects the AGFA as few people will only purchase their healthcare
equipment's. This will tend the leaders and managers to form new policies and measures to retain
the employees.
Social factors – AGFA Healthcare directly affects by the change in values, belief and
demographic of different consumer groups. AGFA tends to innovate and produce new products
with the proper market watch and for this the leaders and manager have a market watch about the
consumers taste, preferences, belief ans new trends in the market which helps the company to
retain in the market for long term with other rivals (Doppelt, 2017).
Technological factors – Technological factors have a huge impact on the AGFA's
overall performance. The healthcare equipment which are being manufactured, which is
continuously changing according to the development in the new treatments, thus the leaders have
a proper market watch to develop their products and services according to the advancement in
the treatments and technology.
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PEST for the Golden Wonder -
Political factors – Political factors directly affects the functioning of the Golden wonder.
As the snack industry is adding a healthier option in their products due to the public health
policies so the leaders of the company had more emphasis on production of the healthy snacks
for their customers which have lower sodium and less sugar intake. Thus, the leader will change
their methods of formation of the snacks and involve the health guidelines in their production
process.
Economic factors – Economic factor directly affects the production of the Golden
wonder. The amendment in the tax policies in 2003 enables Company's leader to change their
price polices and import and export policies for the smooth flow of the business and this helps
the company to attain the huge profit margin among the competitive rivals (Hill, 2017).
Social factors – As nowadays more consumers are becoming health conscious day by
day and this affects the Golden wonder adversely. Change in the taste and preferences of the
consumer’s tens the leader of the company to replace their products with the health snacks which
are glutton free they had to research on the new market trends and form the new healthy product
which can easily attracts the customers with its healthy ingredients.
Technological factors – New technologies helps the Golden wonder to improve their
production capacity thus the leaders of the company evolve their employees to work with the
new machinery which will reduces the work force and helps in the fluent production process
(Iles, 2017)
P 3: Measures to minimize negative impact of change
Lewin change model
A Lewin change model is basically a planned approach which enables the organizations
to deal with the change effectively. as re-examine the relation between change and organizational
objectives.
Unfreezing
This comprises the first stage of model where in the organization initially develops the
mindset of the concerned people and generates a momentum among them to change. In this,
Organization prepares the employees by explaining why this change process is necessary, what
would be the consequences of not implementing as well the benefit that the employees and
organization would receive from such change. Being a healthcare industry, AGFA while making
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changes in its structure or technology needs to first communicate the outcomes of not
formulating to nurse and all the staff by designing a guiding coalition which could be declining
profits or increasing bureaucracy in the hospital (Komives, 2016).
Change
Once the concerned people are made aware of the prerequisite of changes, organizations
move on to the next step where the desired change is formulated. This process may become
chaotic therefore it is essential to execute the changes within a minimal time period as the
employees have the tendency to incline to old habits therefore more quickly the changes are
executed, more quickly the people would understand its importance. AGFA, for successful
implementation would require careful planning as well as strategies to encourage the entire staff
for their involvement.
Refreeze
This constitute the last stage where the change once implemented are solidified.
Meanwhile, the organizations develop the various ways to fix these changes in place. While
doing so, people internalize the different ways of performing tasks and forms it as their part of
professional life. Organizations perform interim evaluations and monitoring to make the
adjustments. AGFA, in order to strengthen the changed behavior can reward the employees as
well as provide positive reinforcement (Lawrence, 2015).
Kotler's model of change on Golden wonders
Kotler provided eight steps for change process. Application of Kotler's change model on Golden
wonder is as follows:
Creating Urgency for change: First step involved identifying potential threats which
were changing trends and eating habits of people they were shifting towards healthy food and
were giving importance to independents of whatever they were eating, what competitors were
planning and consequences which can affect their profitability and survival. Looking for
opportunities from which benefit can taken, Golden wonders realized it and introduced low fat
snack that was easily available, cheaper and tasty.
Developing Powerful Guiding Alliances: Identify effective change managers and chief
stakeholders in the organization, Golden wonders involved them in entire process of change by
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aligning all of them to constantly identify the needs of consumers and make changes with
changing trends to meet their needs. Golden wonder formed strong teams and distribution
networks to ensure availability and reach of their products. Strong framework was developed
between different departments of the organization for better communication between different
departments and different levels of organization (Marshak and et.al., 2016).
Having a Vision & Strategy to achieve it: Golden wonders Determined core value of
their organization and defined the ultimate vision as 'We want the world to taste and
experience our passion for food' and made strategies accordingly to achieve desired change in
their organization.
Communicating Vision to everyone: Vision was communicated to every stakeholder of
the organization powerfully. Connection was made in accordance of the vision with all the
deciding factors ensuring success of the organization. For example, performance,
communication, market research reviews etc. and handling concern of human resource properly.
Removing Obstacles: Golden Wonder ensured that the process and structure are aligned
properly with the vision of the organization and Continuous analysis for checking barriers or
stakeholders who were resisting change. Proactive actions to eliminate obstacles in changing
process was implemented and stakeholders were rewarded for supporting change (Neumann and
et.al., 2019).
Creating Short-term goals: Creating short term goals and achieving them in early stage
of changing process provides feeling of victory to whole organization, products that was
developed in accordance of changing needs of the consumers were successful in early stages
which made employees of Golden Wonders believe in themselves. Short term targets were
developed and employees were awarded for achieving that target.
Consolidating Gains: Golden Wonders achieved continuous improvements and
development by analyzing the market and developing products accordingly using extensive
market research and creating a success story.
Anchoring Change: Golden Wonders identified that if they really want to survive in this
ruthless and changing market it has to identify opportunities on a regular basis making changes
accordingly and ensure that change is an integral part in organization and is inculcated in culture
of organization and everyone in the organization are used to it.
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LO 3
P 4 Barriers for change
Barriers to change can be aspects which can affect the decision making of the
organization with respect to the required change. Change can be important aspect of any
organization which targets the change of policies and working strategy of any organization.
Barriers to change can be lack of understanding and gap between leaders and workers which can
be a threat to change and hinders performance of the organization (Peters, 2019). Most common
barriers to change can be:
1. Lack of employee involvement: As the changes occur most of the employee affects the
change as they do not wish to accept the change as they are very much comfortable with
the ongoing process. AGFA must support their workers and help with the strategic
change. Lack of desire to adapt new culture can be a barrier to the change, to bring about
change leader must make the employee comfortable with the working strategy. Change
process can only be successful only if the employee pays active participation on the new
changes brought by the leaders.
2. Lack of effective communication: In many of the organizations like AGFA, managers
implement changes but they do not have an effective communication with the workers
which can bring about the change in the organization, this becomes the barrier to change
which employee opposes which results in internal crisis in the firm. Managers do not
involve with the change as no leaders involve and asks for the results to the change.
Leaders must pay an active part in the change and consult with the workers for change
they must resolve the problems and help workers for adapting change.
3. Organizational complexity: AGFA must minimize the organizational complexity, the
change adapted must be achievable and understandable to employee which can help
AGFA to earn profits and bring about the stability in the firm. It is necessary to adapt the
strategy.
Force field analysis of AGFA:
AGFA must focus on the forces for a change to occur, driving force must be greater than
resisting force which can be done by analyzing the key features which can bring about the
change in the company (Scott, 2018.).
Driving force:
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For internal driving force for change AGFA must focus on the sense to do better which
can bring positive impact on the change. Change is brought in the AGFA to bring about
profitability or increased performance which can result in the performance measure. As
competitive market increases there must be change in strategy to compete with the competition.
This internal factor of AGFA can lead to the decline of business which can affect the
performance of the AGFA in this way business environment can be affected, business can be
affected by uncertain economic condition of the AGFA, higher cost inputs in technological
change which workers are not able to carry out properly this may lead to losses in the decisions
making. Taxation policy and political influence are the external factors which can affect the
decision making of the firm. These driving forces can affect the change in the decision making of
the AGFA as decision making can be affected by these forces.
Restraining force:
Forces which resist the changes can be a restraining forces as resistance is stressful and
can be a drawback to the AGFA decision making strategy. Change brought by the firm can will
bring insecurities in the working conditions. Working behavior can be changed as the change
implemented are not as per workers comfort zone. Resisting forces can be the forces which
brings a restriction to change. Workers are very concerned about the type of work they do any
change in the work will directly affect the overall performance. Habits of working in a comfort
zone can be a resistance to change. Low understanding or low qualified workers can be a
resistance to change and will affect the decision making to the firm. These changes can affect the
business culture and hinders the change brought in AGFA(Simons, 2015).
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LO 4
P 5 Leadership approaches
Situational leadership approach on AGFA:
Telling and directing:-
This refers to telling and directing a leader make the decision of the organization which
has an impact on management of the AGFA. Leader will supervise the worker, and will help
them to grow with the help of telling about the changes brought by the organization. This
approach makes the worker to do what they are told to do.. Leader will involve with the
employees and guide them for the better functioning of the firm. This will minimize the risk this
will minimize the negative impact on the organization.
Selling and coaching :-
In the selling and coaching it will work for AGFA are provided with a coaching manner
this is totally different from management manner. It will help to increase the confidence of the
Illustration 1: lewins force field model
(Source:Lewin's Force Field Model (Change
Management),2018)
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employees as the managers show active participation with the workers they provide workers with
active advice and takes a regular feedback from the workers (Wylie and et.al., 2017.). The leader
will coach them and give them a right direction. Leader will guide them and the employees will
strictly follow the leader. This helps in minimizing the risk of workers and help in betterment of
the firm.
Participating and supporting :-
This situational leadership increase the responsibility of the employees in AGFA. The
work of the leader to give the feedback and motivate the employee for task. this type of
leadership need a high skill. Leader should have the communication skills and leadership
qualities. Feedback help employees to improve in work and employees try to work better and for
the betterment of the firm. This will ensure the minimizing the risk of the organization and help
the organization to evolve.
Delegating to employees :-
In this style situational leadership leader will not that much involve with the employees.
Responsibilities of the employees are to choose the task and leader will direct them for perform
task leader will only involve with direction and feedback this is lower level of the leadership
employees know what they have to do. We can say that employees do not need of leader they are
already aware of what they are doing. Active participation of employee's minimizes the risk as
they are aware of what they need to do.
Transformational leadership approach on Golden Wonder:
Transformational leadership approach is the basis of transformation through which the
workers are motivated with the words of leader, encouragement is provided with the work which
helps the workers in facing hardships, leader act as a role model which supports workers, focus
on individual workers to trace the performance and work on betterment.
Inspirational motivation:
Leader or manager guides or motivates the workers by giving mission, vision of the task
and helps them to work on the given work the manager of golden wonder helps the workers to
work in the right path, this minimizes the risk in the organizational context. Workers work
enthusiastically and optimistically which minimizes the risk of the organization.
Intellectual Stimulation:
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