Leading Change and Organizational Behavior: ASDA Project Analysis

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Added on  2021/02/21

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This project is a comprehensive analysis of change management within ASDA, a leading British supermarket chain. It begins with an introduction to the concept of organizational change and its significance, followed by a comparison of ASDA with Marks & Spencer, highlighting the impact of structural and strategic changes on their operations. The project delves into internal and external drivers of change, including political, economic, social, and technological factors, and assesses their influence on organizational behavior. A SWOT analysis of ASDA is included to provide a broader perspective. Furthermore, the project evaluates measures to minimize the negative impacts of change, utilizing the Burke-Litwin model to examine elements such as leadership, organizational culture, and individual performance. The conclusion emphasizes the importance of adapting to change for business success and the role of the Burke-Litwin model in mitigating negative effects. The project references various academic sources to support its analysis.
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Understanding and
Leading Change.
(Project 1)
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Contents
INTRODUCTION.................................................................................................................................3
P1 Comparison of different organisational examples in context of impact of change on strategy and
operations..........................................................................................................................................3
P2: Internal and external drivers of change that effect organisation behaviour..................................5
P3 Evaluation of measures that can be taken to minimise negative impacts of change on
organisational behaviour....................................................................................................................6
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9
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INTRODUCTION
In present time, there are number of changes takes places in every aspect such as
technology, businesses or individual activities. In general term Change is defined as a crucial
method that helps businesses to deal different situations in better manner and increase desired
results (Alavi and Gill, 2017). In context to specific organisational change there are some
types of alternation which supports to grow business that includes modifications made by
management in relative to operation, hierarchy and work structure, update technologies etc.
To better understand the concept of understanding and leading change, ASDA is a selected.
In this report comparison of ways in which change impact on an organisation’s
strategy and the influence these drivers of changes have on overall behaviour of business are
discussed.
P1 Comparison of different organisational examples in context of impact of
change on strategy and operations.
Overview of company:
The company is one of leading British supermarket chain of UK and provides its
services to different part of world. ASDA was established 1949 and is use to provide various
products like cloths, electronic item, variety of fresh food, apart this company also provide
banking and insurance services. Respective company is a fruitful association executing
numerous operations in trade industry and has number of international stores across various n
multinational countries that help to grow brand value and profitability.
It is very much essential for companies like ASDA to adapt changes and makes
strategies that support them to perform better after implementing changes. Such as when
number of staff member increases then there is also increase in number of electronic devices
for completing operation process that will also increase cost for company. Thus managers use
to formulate plans in order to make improvement in production process so maximum number
of newly employed of worker can work to deliver physical and online services to respective
customer in competitive market. Acceptance of this policy has delivered suitability to
customers and at the similar period assisted company easily execution their operations.
Significant changes between ASDA and Marks & Spencer which impacts organisational
strategy and operations:
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Basis of difference ASDA Marks & Spencer
Structural changes This company have altered its
structural arrangement from line
organisational to divisional
organisational structure. This kind of
organisational structure actually
means that entire company is divided
into small functional departments such
as marketing, HRM and finance etc.
This change will definitely have huge
impact on strategies and operations of
ASDA so that profit margin can be
attained (Copus, 2013).
This company have line
structure by to meet the
business objective Marks &
Spencer have accepted team
based organisational structure.
This changes help in different
advantages to company like
such as ease decision making,
communication, performing
operations. This structure has
greater impact on
organisational policy increase
the overall efficacy of
business.
Strategy The recent and faithful strategy used
by ASDA related with price is
penetrating price strategy that was
implemented with the main motive to
upsurge volume of sales. In order to
meet the competitive environment
company switch to bundle pricing
strategy in focuses top increase sales
by selling goods in appropriate bundle
at reasonable price. This strategy will
boost the entire operational activity of
ASDA and attract more customers so
that they can buy needed goods.
Marks & Spencer in past time
has implemented premium
pricing policy but with the
changing time they have
adopted market penetration
strategy that helps to update
and improve operations by
team members (Doppelt,
2017). Hence, this change has
positively impacted on entire
business of Mark & Spencer
which also improve marketing
strategies in great manner.
P2: Internal and external drivers of change that effect organisation behaviour.
External factors: All those factors that are unpredicted, out of control and have major
impact on entire functioning of company are known as external factors. Some of these factors
are discussed that are analysed by the manager of ASDA.
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Political: Some common type of political factors are tax policy, consumer rights etc.
that can have influence performance and behaviour of different operation of ASDA . Thus
manager are required to analyse these factors in better manner in order to reduce these impact
on working of manager, leader and other responsible representative.
Economical: This includes inflation and deflation rate, disposable income, rivals
present in market etc. There are numerous opponents of ASDA like Tesco, ADLI which
forces particular organisation to assume several modifications along with appropriate
marketing strategy. Moreover changes in business cycle consequences in changing policies
for executing crucial processes affects leadership style, staff member and other respondent
(Iveroth and Hallencreutz, 2015).
Social: Some types of social factors include attitude, belief, lifestyle, ethics and
insights of customers towards organisational products. Thus any future alteration in
perceptions and values of clients towards variety of ASDA products or services that will
definitely reduce sales and profitability due to which there is negative brand image of
company for customers and team member. Hence it impacts the entire style of leadership,
team member and individual person working within company.
Technology: These factors include latest technology, business techniques and
developed capabilities. In case if ASDA not implement the advance technology within their
process than company may lack in various sectors. They will not be able to provide best
possible services to customer according to actual requirement.
SWOT Analysis
Strengths Weaknesses
The main strength of ASDA is due to
strong background that is group of
Walmart.
Company has developed large and
respective customer provide valuables
goods and services and make strong
market campaigns
There are Total 1,65,000 employees
employed in different stores delivering
Company have a low innovation
process and lack in R&D department
due to which they are unable to predict
correctly about competitors.
Due to high prices company is not able
to manage well in market.
Specific countries have delimited
ASDA's entry as they fear reduction in
sales for local companies.
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best experience to customer.
Opportunities Threats
ASDA can expend their business in
emerging country by making proper
government agreement.
Company can also entre into new
product line such as jewellery,
travelling services or designer furniture.
Arrival of small local companies in
existing market is unproductive as they
divide customer into smaller group.
Currency variation and deviation of
liability laws related to other country
are higher for ASDA.
P3 Evaluation of measures that can be taken to minimise negative impacts of change on
organisational behaviour.
In order to gain success companies are required to accept the upcoming changes in
appropriate manner so that profitability can be increased. Thus in ASDA manager use to
accept the overall changes by putting number of tactics which support to perform work and
minimise the \negative effect of these changes. The Burke Letwin Model is used by ASDA to
reduce the negative influence of changes that is discussed below:
Burke Litwen model: This tool is used by manager of ASDA in order to define the
effective connection among the 12 elements which are linked with each other. Thus it helps
to determine and reduce the negative impact of changes on company. These elements are
defined below:
External environment: In ASDA use to carefully analyses political, social,
technological and economic factors which support to diminish negative impacts of change.
Mission and strategy: It is related with strategy and mission set by upper level
manager of ASDA. All the operation and business activities run around mission statement of
company.
Leadership: Leaders use to guide other employees in organized manner so that
changes can be managed increasing the profitability of business. In ASDA leader follow task
oriented leadership style that support to maintain healthy working environment and improve
performance of activities by reducing undesirable features of modification on organizational
behavior.
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Organization culture: Manager of respective company use implements unvarying
rules and regulation for every worker.
Structure: In ASDA divisional structure is followed where duties, message,
specialist aid to reduce the bad impacts of change and benefits to provide strength to internal
process of company.
System: Manager of ASDA has accepted different system according to requirements
such as BUSY accounting tool, after sales services that use to hold feedback and general
comments from customer.
Management Practices: This is related with behavior and activities played by
manager of ASDA while developing and applying general policies in order to increase
profitability of businesses.
Working climate: In respective company there is healthy and effective relationship
and understanding among worker that makes employee feel safe and reduces negative
influences of alteration on administrative behavior (Iveroth and Hallencreutz, 2015).
Task and skill: Manager of ASDA use to provide valuable training session to
existing and newly hired employees that help to improve knowledge of performing specific
task of company.
Individual values and need: This is basically related with demands and hopes of
worker such as basic pay; promotion etc. that makes them put all their efforts in order to
minimize the negative influences of change on organizational behavior.
Motivational level: Manager in ASDA uses to motivate all essential workforces so
that they dedicate themselves in minimizing harmful effects of deviations.
Individual and general performance: Advanced performance level within ASDA
advantages to overcome the negative effects of changes happening within company during a
specific time frame.
CONCLUSION
It is concludes that changes have both positive and negative impact on overall business
performance so it is crucial for manager of companies to adapt these changes in better manner and
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convert them in future opportunities. Burke Litwen model is taken as important measures that aid to
diminish harmful influences of change at a specific period of time.
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