ALDI's Response to Market Changes: A Leadership Perspective

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Understanding and leading change
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Table of Contents
Introduction................................................................................................................. 3
Task 1: Managing the Impact of Change....................................................................4
Part A: Responding to Change................................................................................4
Part B: The Impact of Change.................................................................................6
Conclusion/recommendation................................................................................7
Task 2: Leadership Decision Making..........................................................................8
Task 3: Leading Change...........................................................................................11
PowerPoint Presentation.......................................................................................11
Conclusion................................................................................................................ 17
References................................................................................................................18
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Introduction
Changes are the most significant factor of the organization. These are the factors
that impact the planning and decision-making processes of the organization. With
the help of this assignment, numerous factors that facilitate changes in the
organization are discussed and identified. The assignment is composed in regards to
ALDI, which is a renowned supermarket in the UK. The assignment will help in
identifying the drivers of change and will help in evaluating their impact on the
policies of the organization. The assignment will likewise include the factors that
impact the leadership policies of the organization. Leaders are the most important
part of the organization and are impacted by the changes in the firm. With the help of
the assignment, a number of leadership models will be discussed that can help in
resisting changes in the firm.
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Task 1: Managing the Impact of Change
Part A: Responding to Change
Changes are an important part of the organization, and they are crucial for extending
the area of business and for promoting the growth of the organization. It is the
responsibility of the managers to evaluate the impact of these changes and
formulate strategies in order to overcome them in the best possible manner. There
are a number of factors that can possess changes in the organization and can
disturb its planning process. By effective evaluation, the managers will be able to
enhance the sustainability of the organization by dealing with the changes and
uncertainties (Blyton and Morris, 2017).
Every organization has its own way of handling the changes taking place in the
market. A variety of organizations try to resist the changes by evaluating them on a
prior basis, while other organizations try to resist them by sustaining their impact in
real sense. The current market is filled with a variety of company (Worley and
Mohrman, 2014). Every company has its own styles and methods of operating the
activities of the organization.
The factors that bring changes in the organization are known as drivers of
changes. There are numerous drivers of changes such as political and economic
policies, technological advancement, and so forth. These factors play a crucial role in
hampering the functions of the organization in both a positive and negative manner.
The drivers of changes affect the policies of all the companies. ALDI and TESCO,
both of them are a very popular supermarket in the UK and are operating their
activities in quite a significant manner (Blyton and Morris, 2017). Both of these
companies are facing heavy competition with each other, and this change is
impacting their policies in an impactful manner. The managers of both organizations
are trying to frame effective decisions that can help them in resisting the competition
and enabling their success in the market. Along with it, some of the other ways in
which both of these organizations have responded to changes are as follows:
Responses to changes in respect to ALDI
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 Identification of the root cause: The managers of ALDI try to identify the
root cause of the change. This is the most effective way in which they will be
able to identify the intensity of the change and can frame policies according to
manner. With the help of this technique, the managers of the respective firm
will be able to frame policies for the growth of the firm in the long run.
 Engaging the resistance managers: This is another effective strategy that
helps the managers of ALDI in resisting the changes of the organization. With
the help of this practice of respective firm are able to engage the experts in
the respective task. The experts are able to sort out the issues in an easy and
most effective manner.
Responses to changes in respect of TESCO
 Involving the employees: The managers of TESCO try to involve the
employees of the respective mission. With the support of the employees, the
managers of the concerned firm are able to resist the changes in an effective
manner. The employees of the firm have the right to present their idea in front
of the manager that can help the firm in eliminating the negative impact of any
uncertainty.
 Implementing training programmes: The managers of TESCO try to train
their subordinates that can help them in entertaining the changes significantly.
With the assistance of this approach, the managers are able to enhance the
sustainability of the organization. Effective and efficient employees will be
able to resist the changes in the most significant manner (Decker, et al.,
2012).
The strategies adopted by both organizations are effective and will help the
respective parties in flourishing their business in the international market. The only
similarity that can be observed in the techniques of both the organizations is that
the efforts of both of the organization are diverted towards the goals of the
organization. Both of the organizations are trying to deal with the changes rather
than avoiding them. With the help of this approach, the organizations are able to
grow in the global market.
The dissimilarity that is observed in the approaches of the organization is that in
ALDI the managers are assigned to deal with the changes or the uncertain
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calamities, whereas in TESCO the employees play a crucial role in dealing with the
changes of the market (Blyton and Morris, 2017).
Part B: The Impact of Change
There are numerous factors that can facilitate changes in the organization. The
drivers of changes can be internal and external depending upon the nature and the
consistency of the organization. Some of the examples of drivers of changes are
technological advancement, competition, change in behaviour of the customer,
change in behaviour of subordinates and so forth (Decker, et. al., 2012). All of these
factors have an equal impact on the growth and management of the organization.
The major impact of the changes has to be borne by the leaders of the organization
(Worley and Mohrman, 2014). Leaders of the firm are responsible for guiding and
directing the subordinates of the organization. It is their duty to formulate strategies
in which they can resist the change and can motivate their staff to do the same.
There are numerous ways in which the internal and external drivers of change can
impact the leadership policies of the firm, and these are as follows:
 With the impact of heavy competition, the leaders have to make use of
effective marketing policies that can help them in facilitating growth
 To improvise the behaviour of the employees, the leaders have to start
effective motivating policies.
 In order to understand the perspectives of the customers, the leaders must try
to ask for feedback.
All of these factors help in understanding the impact of external and internal changes
on the policies and behaviour of the leadership in the organization.
The changes can also have a negative impact on the policies of the organization.
Some of the leadership models that can help in this process are as follows:
 Lewin’s Change Management Model: The model was originated in 1950 by
Kurt Lewin. With the help of this model, the leaders will be able to
understand the changes in an effective manner. The implementation of the
model will help in facilitating stability in the organization
 Kotter’s change management theory: This model helps the organization in
accepting the change rather than resisting the same. This model helps in the
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growth of the company by focusing on short term objectives (Appelbaum, et.
al., 2012).
 ADKAR model: The model eases the process of identification and evaluation
of changes. It makes it possible for the leaders to break the changes in
smaller parts and evaluate changes effectively.
Conclusion/recommendation
The information provided in the above segment helps in understanding that changes
are very important for the growth of the organization, and the leaders must try to
initiate actions for the respective process. Some of the recommendations that can be
initiated for this are as follows:
 The leaders must try to scrutinize the policies of the market in order to
scrutinize the changes
 They can make use of the identified models to simplifying the process of
evaluation.
 They must always try to resist the changes in the place of avoiding them
(Worley and Mohrman, 2014)
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Task 2: Leadership Decision Making
Force field analysis
Force field analysis is essential used to develop effective decision-making steps
within the organisation and will able to develop leadership approach through which
effective decision skills may be developed (Swanson and Creed, 2014). Sudden
change in the environment is difficult to accept for every organisation, ALDI is one of
the largest supermarkets in the global market, and sudden market change may lead
to a difficult situation and challenges for the company. Force field analysed help in
identifying the driving and restraining forces, which might create an impact on the
change, and these two forces get obstacles in the way of sudden change (Swanson
and Creed, 2014). The sudden changes appear when a person in the organisation
behave wrongly and take wrong move or action at the time of performing a task, this
will also create a bad impact on organisational behaviour. Lack of awareness at the
time of performing an operational task in the organisation (Swanson and Creed,
2014). Such Unconscious wrong and Conscious wrong behaviour lead to a terrible
change in the organisation.
Different barriers to change
There are different barriers which develop some changes which lead to a critical
situation in the organisation change management. Most of the barriers which are
faced by ALDI are:
 The negative attitude of employees at the time of performing the task.
 Poor communication strategy applied in the organisation.
 Poor decision-making strategy has been adopted by leaders.
 Fails to organisational resistance change, which leads to time management
issues and conflicts among managers and employees.
 Poor management support and lack of strategic thinking at the time of
performing a task has reduced the work morale of employees.
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These are essential barriers which need to be overcome by the leader of the ALDI
organisation by developing effective decision-making skills. It is the responsibility of
the leader to analyse the situations and such major problems which are affecting the
environment of organisational change management. The leader should focus on the
weakness of the organisational department and should develop critical approaches
through which effective decision could be made in the context of ALDI organisation.
The essential motive of every leader is to focus on the strength and weakness of the
company and take effective decisions which will enhance the performance of the
company and lead to developing sustainability power of the company (Ejimabo,
2015).Force field analysed help in identifying the driving and restraining forces which
might create an impact on the change, and these two forces get obstacles in the way
of sudden change (Toves, Graf, and Gould, 2016). Along with this, the leader should
analyse the changes and the impact of forces on the changes, the leader has to
develop effective approaches and has to implement Force Field Analysis tool which
helps in taking an effective decision and set effective changes as per the
organisational behaviour.
Uses of Force Field Analysis tools
FFA is one of the essential decision-making tools, the managerial department and
leaders should regularly use this tool in the futuristic task of the company through
which proper situation can be analysed, and an effective decision could be made.
For using and implementing the FFA, tool leader has to first set a specific goal or
vision with proper identification of resources and requirements needed in the
departments of the organisation. Then leaders should identify the forces which are
driving change with the help of force field analysis, and there are some internal
forces which create critical changes such as poor machinery and productivity tools,
lack of teamwork, low team morale and poor managerial support(Toves, Graf, and
Gould, 2016). On the other hand, some external forces include the uncertain
environment, poor technology used in the organisation and some demographic
trends which are regularly changing (Toves, Graf and Gould, 2016). These are the
essential forces that foster changes and such changes can be identified by leaders
of ALDI with the help of FFA tool. At the time of making a decision, it is essential for
a leader to identify the factors which are influencing the changes, unnecessary
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changes may lead to more cost for the organisation (Toves, Graf, and Gould, 2016).
Along with this leader should train their employees through which appropriate actions
and decision can be taken at such sudden changes in the context of organisational
change management (Worley and Mohrman, 2014).
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Task 3: Leading Change
PowerPoint Presentation
Slide 1
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Slide 2
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