Change Management Strategies in ASDA: A Case Study

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Understanding and leading change
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Table of Contents
Introduction................................................................................................................. 3
Overview of the organization case studies..................................................................3
LO1............................................................................................................................. 3
LO2............................................................................................................................. 7
LO3........................................................................................................................... 11
LO4........................................................................................................................... 12
Conclusion................................................................................................................ 15
Reference List...........................................................................................................17
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Introduction
The research is about the company ASDA, a British supermarket company
founded in 1949 and has been one of the leading companies in the global market
since then. There are various market trends that the company has to follow in order
to survive in the competing industry. Various strategies have been discussed which
would be helpful for the business operations. SWOT analysis and PEST analysis
have been also discussed to get a detailed knowledge of the different prospects of
an organization called ASDA. Comparisons have been made with other
organizations with the same operational areas. However, there are many barriers in
the process of implementation of any strategical change and to understand that
models have been discussed in detail. The importance of different leadership
approaches also plays a significant role in the development of the organization.
Overview of the organization case studies
ASDA is one of the British supermarket retailer that operates in the retail
industry and founded in the year 1949. This particular company offers various
services that include financial services, grocery, and general merchandise. The
company faces stiff competition from other companies such as Tesco and Sainsbury
who are operating in the same sector. The other company mentioned in this study is
Toyota that operates in the automotive sector.
LO1
P1 – compare different organizational examples where there has been an
impact of change on an organization’s strategy and operations.
It is very essential to make a place in the continuously challenging markets. It is thus,
crucial to prepare the organization to the essential steps and initiative at the
appropriate time. Strong decisions to change the quality of products and to alter
them according to the demands of the customers is very important. Increasing the
productivity of the product and that to at a nominal cost in order to improve their
business progress is very significant point to keep in mind. The continued
transformation in the economy, enforces the company to work accordingly to avoid
the negative impacts it creates on the organization directly or indirectly. There must
be complete analysis of the different types of influence positive or negative, the
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company faces in its long run (Espedal, 2017, pp.155-163). In order to improve their
production process, the company must improve the environment in which it is
working which will not only help the economy and its customers but also help the
company ASDA to achieve the set goals. However, there some challenges which put
pressure on the company’s status and its employees. For an instance, it can be seen
that TOYOTA has always introduced measures which affects the workers in a
negative way and it creates inconvenience by adapting themselves to the continuous
change of systems. Thus, ASDA must implement better strategies to face the
challenges and stop them to negatively impact the company.
The transformations take in the business by the decisions taken by the
company. And, to take these decisions there must be thorough analysis of the
different factors and drivers of change to ensure survival. And thus, they can
manage the situation both externally and internally. The changes in the demands of
the customers, the financial status of the company and the economy, the introduction
of new policies and regulations for the operation of the company, the status of
investment in the company, the efficiency of the management and the employees
are the major drivers of change to be mentioned. The SWOT analysis of ASDA and
TOYOTA shows that how they deal with these changes and overcome the
negativities.
SWOT analysis of ASDA.
Strengths  They can make active use of
social media and electronic
media platforms to get feedbacks
from the customers and hence
engage the customers to their
company.
 The employing of more and more
staffs in the company will help
increase their efficiency. There
are already 500 stores with 1500
workers employed all over the
world.
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Weaknesses  As compared to TOYOTA and
other companies ASDA does not
have much recognition globally.
Opportunities  There are various sectors where
the company can use the
opportunity to operate effectively
such as pharmaceutical industry,
jewellery industry, optical
industry and others.
 This will support the company to
develop its business and receive
global recognition.
 The opportunity to enter into the
markets of highly populated
countries like China and India
they can become more powerful.
Threats  The war of price in the chain of
retailing can threaten the
company and its productivity.
 The change in the government
policies and regulations might
also prove to be a great threat
they are not in the favour of
ASDA.
SWOT analysis of TOYOTA.
Strengths  The company offers captivating
and useful products to the
customers.
 The effective market strategy
which they use to increase their
productivity and gain the
attraction of the customers has
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always been their strength.
Weaknesses  The increase in the price of the
raw materials increases the
production cost and hence the
ultimate price of the products it
delivers.
Opportunities  New products with unique
features can be brought in the
market as an opportunity to grow
their business.
 Use of media and the internet
can be beneficial.
Threats  The competition is very high in
the industry which it operates.
 The degrading quality of any
product at any point of time and
the pressure to sell products at a
normal price can be a threat.
Thus, the companies need to deal the changes by fostering their strengths
and opportunities and reducing their weaknesses and threats by implementing
strategies and technical advancements, which will in turn help to face the
competition and survive in the market (Ansoff et al. 2018, p.78).
M1 – Assess the different drivers for change in each of the given examples and
the types of organizational change they have affected.
The external drivers of change include
Technological development: there are various technological advancements
regularly taking place in the industry, and the company must use them to bring
changes in their business operations.
Customers: customers’ needs and demands keeps changing and the
company must consider their preferences to increase their sale of production
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Government policies: the changes in the rules and regulations by the
government enforces the company to also make necessary changes.
Competitors: there are many competitors in the market and to gain the
competitive advantage over them the company has to make changes.
The internal drivers of change includes:
Opportunities: the company often gets opportunities to improve their
profitability and hence makes the required changes.
There are two ways in which these strategies impact the business:
1. Technological changes: with the changes in business operations the, there
can also be changes in the technologies used by the organization which will
further enhance the skills and competencies of the workers and help in
development of the organization.
2. Cultural changes: the cultural environment also changes when the different
strategies are implemented which includes development of communication
and decision making process.
The influence of the change can be negative and positive which can be identified by
thorough analysis:
1. Positive effects: the production process of the company is increased. There
is development in the sales and production. The organizational commitment
and its basis is also enhanced. Which overall improves company’s operations.
2. Negative impacts: the changes can lead to non-adaptability of certain
situations by the employees and the customers as well. For the time being,
the changes can cause chaos and confusion in the work process which can
decline the productivity and efficiency rate.
LO2
P2 – evaluate the ways in which internal and external drivers of change affect
leadership, team and individual behaviours within an organization.
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The change in the management affects the employee’s efficiency as well as
psychology as it becomes inconvenient to adapt suddenly to a changed system. The
change in management and work environment not always creates a positive impact
and it can also create adverse effects thus hindering the productivity and efficiency
of the organization. As sighted by Al-Haddad and Kotnour, (2015, pp.234-26),
therefore, it is very important to analyse every situation and decision so that the new
change aligns with the company’s rules and goals. For the unsatisfied employees
cannot satisfy the customers. The organization works in diverse fields and to change
the overall dynamics will do no good to either. Strategies must be taken to enhance
the link between the management and the employees so that they work together for
the progress of the company and no such pressure is build up which can hinder their
performance (Doppelt, 2017, p.6). In order to understand the influences of the
factors on ASDA, the following pest analysis would help.
PEST analysis of ASDA
Political The UK government supports the
organization to enhance its business
process. However, some of the policies
made mandatory to follow adversely
impacts the business.
Economical The economic instability can negatively
impact the company such as inflation
and deflation. Probable changes must
be made in the prices of the products
and the sources of investment to gain
financial instability.
Social The social factors such as the changing
demands of the customers with the
increasing population affects the
production and availability of the
products.
Technological The advancements in technology on
regular basis enforces the company to
be updated with their features and uses
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so that do not lack behind others in
making use of these beneficiaries.
P3 – Evaluate measure that can be taken to minimise negative impacts of
change on organizational behaviour.
ASDA needs to take responsive changes to these factors driving change and
affecting their overall business. Overcoming the problems without causing
destruction in the company’s status is very important, which can surely be done by
use of new strategies and updated technologies (Brunsson and Olsen, 2018, p.88).
There are various measures which can be taken to minimise the negative the
negative impacts on the company. Some of them are
Honesty:The Company must be honest to their employees as well as their
customers and this will build trust and support towards the company. The
organization must be honest with its promise of deliverance of quality goods and
products (NHS England, 2016, pp.302-303).
Utilisation of real world examples: The Company should make sure that the
management works to use the real world examples. The ASDA and its management
must make proper utilization of the services and the skills their employees offer and
give them opportunity to come up with more innovative ideas that can give the
company reason and motivation to work with the same workforce.
Making proper announcements: The Company’s management system must make
proper announcements if there are any probable changes in the future regarding the
change in the work environment, or shuffling of work, any financial crisis faced by the
company and so on, so that there is no negative impact of such changes on the
business operations. As it reduces the burden and prepares the employees for the
unforeseen circumstances and unpredictable challenges (Edwards-Groves’s et al.
2018, pp.1-19).
M2 – Apply appropriate theories and models to critically evaluate
organizational response to change.
There are various theories and models to predict and make a proactive plan
for a change. Systems theory is regarded as the theory which deals with the
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complex nature of the systems in the organization, operating industry and the
economy. It covers the investigation of the entire framework of how well it performs
and its efficiency in helping the company to attain efficiency. There are continuous
improvement models which can help ASDA with their product differentiation. The
company needs to make the necessary changes in their ways of delivering products
and services to their customers to cope with the challenging environment. According
to Bryson, (2018, p.78), the Burke-Litwen model is used to make sure that the
changes are effective and efficient in nature. It is very important for the company to
analyse the external and internal environment. The changes in leadership style,
strategy to process the work within the time that to with quality work needs to
planned out so that employees feel motivated and understand their purpose of work
(Al Barwani, Flores and Imig, 2018, p.56). Effective and efficient workforce is an
integral of an organization.
D1 – Draw conclusions and recommendations with valid justifications for
planning effectively for change and applying change impact analysis.
ASDA is an ideal organization with strengths and various factors of change, it
only needs to figure out the problems and work accordingly to overcome them. They
should be prepared for the challenges in their way resulting from continuous
changes in the market. On the contrary, TOYOTA is managing its risks by
introducing various kinds of investments. Which is said to have both positive and
negative impacts on the company. The company is recommended to introduce
necessary changes in their products so that they can satisfy the customer’s
demands. They are recommended to comply with the governmental policies and
regulations to avoid any issues resulted from abidance of the same.
These models and the plans must be implemented carefully to get maximum
results. It is recommended that ASDA must communicate openly with their
employees about the initiatives they need to take. They should keep the employees
in dark because they are the ones who works for the company’s growth and
development. And there are righteous to know about changed policies and
regulations. Utilising the skills and competencies of the workforce in a right manner
is very important for the company’s benefits (Iles, 2017, pp.49-87).
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LO3
P4 – Explain different barriers for change and determine how they influence
leadership decision making in a given organizational context.
The barriers of change include:
Lack of employee involvement: when the employees are less motivated
and unsatisfied with their work environment then they do not work effectively and as
a result the positives outcomes do not come.
Lack of communication: the lack of communication amongst the workers
and the management is not beneficial for the business. And due to this, they do not
understand the motive behind the changes and act as barriers.
Lack of support: sometimes the staff feels that they are not getting enough
support from the organization and in such case they lack the purpose to work and do
not accept the changes.
M3 – Use force-field analysis to analyse the driving and resisting forces and
show how they influence decision-making.
Force-field analysis is used to understand the supporting and the opposing
forces for or against the company respectively. It is used to foresee the barriers and
resistance of change. ASDA is proved to be a very effective company in analysing
their business status individually and as when compared to the competitors. It
evokes and motivates the employees to co-operate with the management of ASDA
and make association with its decisions. And this is directly proportional to the
working of management process. Leadership and decision-making skills are crucial
for any organization. Because the major outcome depends on these specialities.
Right from buying the raw materials to manufacturing of the products and then
deliverance in the market requires precise decisions and plans and a leader to
observe the status of progress (Hillson and Murray-Webster, 2017, p.6). The
changing terms of ASDA are to be informed by the leadership management to the
employees within time because the announcement done after the work processed
only increases unnecessary burden on the working system.
D2 – Critically evaluate the use of force field and analysis in the context of
meeting organizational objectives.
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Familiarity with the fore coming changes and the activities will make sure that
work is done in accordance with the decision taken. The basic idea with which it
works is that it helps in maintaining the situations by balancing the forces that drive
and resist the change simultaneously. However, in order to ensure that the change
takes place then the driving forces must be more powerful than the resisting ones.
Step1 includes describing the plan for change. As per Canterino, Cirellaand Shani,
(2018, pp.15-28), step2 involves the identifying of forces that leads to change. In this
the internal factors include old and traditional machines, lowered team motivation,
and the requirement to gain more profits. The external factors, on the other hand are,
lack of certainty in operating market, lack of use of updated technologies, and the
transforming demographics. Step3 includes the driving forces that are against
change. The internal restraints to be mentioned are danger of the unpredictable,
competing organizations in the market, and attitude of not adapting to
circumstances. External restraints are commitments and deals already made with
other organizations, policies of government, and promises towards targeted
customers. Step 4 is to analyse the strength of each force and use the driving forces
against to the restraining forces to facilitate change. As sighted by Iveroth and
Hallencreutz, (2015, p.4), and the final stage,Step5 is where the organizations
analyses and applies the forces.
LO4
P5 – Apply different leadership approaches to dealing with change in a range
of organizational context.
There are various approaches of leadership a company must apply for its
effective and product working. The strategy depends upon the situation,
transactional crisis and the transformational needs (Lin, Su and Higgins, 2016,
pp.862-876). Each has its own significance and purpose and therefore must be
chosen wisely.
Situational leadership approach:As per the situation, the leader takes the required
approach and calls for necessary changes in the company. The strategy of
leadership changes according to the intensity and urgency of the situation. As per
Lewis, (2019, p.45), the company can thus gain effective support from the majority.
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