Burberry's Change Management: Drivers, Barriers, and Leadership

This report provides a comprehensive analysis of change management strategies within Burberry, a luxury fashion house. It explores the impact of change on organizational strategy and operations by comparing Burberry with Marks & Spencer, examining political and environmental changes. The report identifies internal and external drivers of change, such as financial management and political factors, and their influence on leadership, individual, and team behavior. It delves into various types of organizational change, including transformational, remedial, and structural changes. Furthermore, the report discusses barriers to change, utilizing force field analysis to evaluate driving and resisting forces. Different leadership approaches to dealing with change are also considered, with an evaluation of their effectiveness in meeting organizational objectives. The report concludes with recommendations for effective change planning, emphasizing the importance of employee involvement and proactive management.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION..............................................................................................................1
TASK 1.............................................................................................................................1
P1 Different organisational examples to show impact of change on organisational
strategy and operation................................................................................................. 1
M1 Drivers for change in each example and types of organisational change they
affected........................................................................................................................ 4
D1 Conclusions and recommendations with valid justifications for planning change
effectively..................................................................................................................... 4
TASK 2.............................................................................................................................5
P2 Various internal or external drivers of change impacting leadership, individual and
team behaviour ........................................................................................................... 5
P3 Measures to minimize negative impact of change on organisational behaviour.....6
M2 Appropriate theories and models to evaluate organisational response to change. 6
TASK 3.............................................................................................................................7
P4 Different barriers for change and their influence on leadership decision making ...7
M3 Use force field analysis to analyse resist and driving forces..................................7
D2 Critically evaluate the use of force field analysis in meeting organisational
objectives..................................................................................................................... 8
TASK 4 ........................................................................................................................... 9
P5 Different leadership approaches to deal with change in organisational context.....9
M4 Extent to which leadership approaches can deliver organisational change...........9
D3 Evaluate effectiveness of leadership approaches and model of change
management................................................................................................................ 9
CONCLUSION................................................................................................................. 9
REFERENCES...............................................................................................................10

INTRODUCTION
Change is referred as a process where business organisations undergoes
operational methods, structure, technologies, organisational structure and strategies so
that competitive advantage over rival companies can be attained. The impact of these
changes can either positive or negative depending upon the manner in which it is
implemented. These changes can either be continuous or take place after time interval
(Alavi and Gill, 2017). This assignment is written in context with Burberry which is a
Britain based luxury fashion house dealing in clothes, accessories, cosmetics etc.
Organisation was established in 1856 and headquartered in London, England. At
present company is operating at more than 500 locations. This report will cover different
organisational examples which get impacted due to changes along with the manner in
which internal and external drivers impact organisation. Different barriers of change and
the manner in which they impact leadership decision making is discussed. At last,
different leadership approaches to deal with changes are mentioned.
TASK 1
P1 Different organisational examples to show impact of change on organisational
strategy and operation
Organisational strategy is a long-term procedure which is used to identify and
adopt those actions that can benefit a firm in achieving its aims and objectives. It
defines the way that will help a company in achieving competitive and monetary
advantages against other companies. Changes associates with organisational structure
and strategies will allow Burberry in adopting new strategic directions which will results
in high profitability. New strategies will benefits in fulfilling the desires and needs of
customers in an appropriate manner. To understand changes in operation and
strategies, some organisational examples are compared with each other. In this context,
Burberry and Marks & Spencer are mentioned below:
Burberry M&S
Political
change
After Brexit, UK has faced different
political changes due to which
Brexit has impacted big retail
organisations in a negative manner
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country faces political instability.
This has resulted in change of
rules, policies and regulations in
UK. These changes has impacted
hospitality sector in a major
manner. In this context, Burberry
has adopted some changes in it
operations and strategies.
Strategies: Brexit has resulted in
economic instability and downfall
in UK. Due to this, people residing
there have stopped buying
luxurious products or services. In
this regard, company has changed
their pricing strategy. Earlier firm
has premium pricing strategy as
they sold luxurious products but
now Company is adopting price
skimming strategy in which
products will be charged high
during introductory phase but then
their prices will be reduced so that
sales and revenues of company
can be high.
Operation: Due to these political
changes, other companies are
also changing their work pattern
so that impact due to political
instability can be minimised
considerably. In this context,
Burberry has carried out some
that acts as a hindrance in their
revenue and profitability. In this
regard, these organisations are
required to change their strategies
and operations so that less
disposable income of people can
not impact their revenues and
profits. In context with this, M&S
has formulated some change in
their strategies and operations.
Strategies: Earlier company uses
premium pricing and skimming
pricing strategy so that they can
earn high profits but now company
has changes their strategy to
economic pricing so that more
number of people will buy their
offerings and products. This
strategy will help company in
managing stable sales so that
strong presence in market can be
managed (Cameron and Green,
2015).
Operations: Company has
enhanced its social presence so
that promotion about discounts and
offers can be carried out properly.
By this, large number of people will
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changes in their operations.
Company has replaced their old
manufacturing machines with new
and advanced machines which are
able to manufacture products in a
fast and cost efficient manner.
Also, company has switched to
Just in time operational
management so that material and
resources for production will be
ordered in accordance with the
changing need of people and
wastage of resources can be
reduced. This will results in
increased productivity.
acknowledge about their services
in less time. M&S has adopted lean
manufacturing which will solve the
problem of large inventory storage.
Due to these operations, the
operational cost of firm will
reduced and more profitability will
be attained without compromising
with expectations of customers.
Environme
nt change
As environment is degrading at a
fast rate, people are getting more
concerned about it. In this regard,
they prefer to adopt those services
and products which do not harm
environment by any means. Due
to this, Burberry has adopted
some change in their operations
and strategies.
Strategies: To prevent
environment from harmful
processes, Burberry has adopted
some strategies like improving
service standards and purchasing
systems along with inventory
control. It will help company to use
Due to environmental changes,
M&S has carried out some
changes in its strategies and
operations. In this context, these
changed operations and strategies
are mentioned below:
Strategies: To achieve positive
results, M&S has carried out
changes in its business strategies.
Company has adopted strategy of
cashless payment so that activities
like deforest ion can be reduced.
Also, use of plastic bags is banned
by company as it will help in
reducing the use of non-
redeemable products.
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resources in a renewable manner.
Due to inventory control, less
resources will be ordered by
company and they will be used in
an optimal manner. Employees
and employers in Burberry have
also joined initiatives like keep
Britain clean and tidy.
Operations: To reduce
environmental problems, company
and its workforce is taken part in
different atmosphere initiatives
along with adoption of sustainable
business operations so that for
operational management
renewable resources can be used.
Operations: company is going to
use Six sigma. It will benefits them
in eliminating wastage and
adopting those resources which
are not synthetic in nature. Due to
this, resources will be used
optimally and environmental issues
will be resolved properly (Doppelt,
2017).
M1 Drivers for change in each example and types of organisational change they
affected
Internal and external changes are two drivers of change that impacts the working
of an organisation in a visible manner. Internal drivers of change include several rules
and policies associated with employment law, contract law, organisational culture,
working behaviour etc. External drivers of change are related with change in inflation
and interest rates, currency fluctuation, political aspects, technology etc.
Types of organisational changes
Transformational change: In these changes, firm adopt those strategies that will
support new changes in an advantageous manner. In context with Burberry, company
can eliminate extra workforce so that extra finances can be invested in implementing
new changes and strategies.
Remedial change: These changes take place when company is require to
address poor performance or deficiencies. In case of Burberry, company can provide
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training sessions or roll out new software so that these deficiencies can be overcome
properly (Eddy, 2012).
structural change: Structural changes hep Burberry to adopt external and
internal factors that help to run a business speedily.
Strategic changes: Burberry makes some strategy that help to make planning
for expanding business at larger market.
D1 Conclusions and recommendations with valid justifications for planning change
effectively
As per above discussed facts, it can be concluded that internal and external
drivers results impacts the working of Burberry in a considerable manner. Internal driver
will help Burberry in manage their resources, capital and other finances which will
benefits in increasing their profit margins. External drivers such as economical, political,
social and technological changes will helps Burberry in acknowledging external
business environment. Due to which competitive advantage over rivals will be enjoyed.
Recommendations in this respect are given below:
 Company is required to have discussion with workforce before adopting a
change. This will help employees in adopting change appropriately.
 Manager in Burberry is recommended to predict the impact of change before
implementing it on organisation and its workforce. This will benefits in carrying
out required modifications.
TASK 2
P2 Various internal or external drivers of change impacting leadership, individual and
team behaviour
There are different internal and external drivers that influences team and
individual behaviour, leadership in a proper manner. In case of Burberry, these drivers
are mentioned below:
Internal drivers:
 Financial management: To run business in an appropriate way, sufficient
capital and funds are needed. Without money it will not be possible for
employees in Burberry to perform business operations either as a team or
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individual. If company will have managed capital and funds then leader will be
able to adopt and implement changes without considering financial resources
(Espedal, 2017).
 Resources: In context with business, there are various resources which
influence individual and team behaviour along with leadership within an
organisation. If financial, human, technological and other resources will be
available to employees they can work efficiently both at team and individual level.
Shortage of these resources will restrict teams and individual workers in
performing business operations. Without resources, it is not possible for leader to
use its leadership skills in guiding and motivating workforce.
External drivers:
 Political: Changes associated with positive aspect can impact rules, policies,
funds and resources of a company. Burberry is required to follow different
regulations and rules which is established by law and government. Avoiding
these regulations can results company in paying heavy taxes and fines. Due to
this, leadership skills and performance of employees as a team or individual will
reduce as they will feel demotivated while performing business duties.
 Economical: These aspects include customer behaviour, inflation and interest
rate, currency fluctuation etc. if purchasing power of people will be low, then
team and individual employees feel demotivated in performing work as sales will
be less. Also, leadership will get impacted as employees will be lenient in work
and do not prefer to follow order of employees. Company can terminate extra
staff to reduce impact of economic change.
 Social: Burberry focuses on culture and religion of the country and manufacture
that kind of products in fashion industry. It help to attract the customers as result
its profitability are increasing continuously.
 Technological: As Burberry is multinational company it adopt the new technology
in order to produce new product at fashion industry that leads to sustain in
competitive environment.
 Legal: Burberry follows equal pay and workmen compensation act the that attract
staff who are working within organisation and they perform job smoothly.
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 Environmental: Burberry focuses on green environment and manufacture
products which does not harm environment. It help to provide a good business
environment within organisation.
 All the factor influences the Burberry organisation such as it help to accept the
challenges and manufacture attractive product in order to influence the
customers.
P3 Measures to minimize negative impact of change on organisational behaviour
To minimize impact of change on performance and working of Burberry, there
are some measures that can be adopted by manager in Burberry. Some of these
measures are mentioned below:
 Involvement of employees in change process: If employees in Burberry will
be included while changing strategies and operations of company, they will be
able to adapt these change in a fast, positive and proper manner. Also,
relationship between management and employees will improve that will help in
maintaining positive organisational behaviour (Ferkins, Erakovic and McMorland,
2015).
 Expansion of communication channels: To implement organisational change
properly, effective communication and interaction is required. It will benefit
employees in acknowledging change without any complexity. Barriers in
implementing change can be easily resolved by employers and employee with
the help of effective communication.
 psychological impact of change on people: It is the way of dealing with possible
changes process in order to run a system effectively. In other words, people
learns new trend by following other people that impact on business organisation.
So Burberry deals with all physiological changes that help to manufacture that
kind of product and services.
 Responding to drivers of change:
 systems theory application at Burberry: System theory describes the human
behaviour in term of complex system. Burberry use this system in order to fill the
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individual's needs, rewards to well performer and provide training to workers who
are working within organisation in order to accept the challenges.
 Continuous improvement model application at Burberry to predict and
proactively plan for change: Burberry use this model to get improvement in
existing fashion that help to attract the customers by improving the products at
global market.
Using the Burke-Litwen model at Burberry to make the change process efficient
and effective
 External environment: Burberry focuses on external factor which help to define
the needs of customer and how it can be satisfied.
 Mission and strategy: Burberry's mission is to become world's largest fashion
industry and it make strategy to crack the competition.
 Leadership: Burberry's leader guide employees to achieve organisational goals
by performing task effectively.
 Organisation culture: Burberry contains explicit and implicit rules and regulation
that help to make successful strategy in order to complete the task.
 Task and skills: The manager of Burberry provide special task to employees that
is need to perform within organisation in order to achieve goals.
M2 Appropriate theories and models to evaluate organisational response to change
To understand the response of change within an organisation, system theory can
be used. It is an impactful theory that will allow the Burberry to reduce the negative
implications of change on business organisation. This system theory will benefit
Burberry in solving their problem which is faced by workforce while performing business
operations. As per this theory, Burberry is needed to rely on various governmental and
organisational policies which will benefits in implementing change properly. Issues and
grievance of workforce will also solved in a proper manner, if system theory will be
adapted by Burberry. But negative aspect of this theory is that it will only focus on those
aspects which will stabilise system. Those aspects which will not stabilise system will be
neglected and it will give support to only those changes which will be slow and steady in
nature.
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TASK 3
P4 Different barriers for change and their influence on leadership decision making
There are different barriers of change that can acts as a hindrance in
implementing change within an organisation. These change can also affect decision
making of leader in a considerable manner.
Initiated or imposed change:
Burberry is adopting initiated changes such as it starts with collaboration, conduct an
event, give people a central resource, give social idea and engages with people that help to
perform task smoothly. In context with Burberry, these barriers are mentioned below:
Poor employee participation: Without active participation of employees, it is not
possible to implement change in a proper manner. If engagement of employees will be
less the change will not be implemented in an advantageous way. If employees will not
participate in implementing change, then due to lack of interest employee turnover can
increase. If information associated with change will be given to workforce and they will
be included in change adopting decisions, their participation level can be enhanced.
Treating employees as asset is the only way through which changes can be
implemented in a positive manner (Hallinger and Bryant, 2013).
Rules and regulations of government: Different regulations and policies
formulated by UK government can also acts as a barrier in adoption of organisational
changes. These barriers will reduce the profit margins and working potential of
employees in a proper manner. In order to attain expected results, Burberry must follow
regulations which is decided by government. Following these policies will benefits the
company in conquering wide market. Because of this, barrier, decision and policies of
organisation will get influenced in a considerable manner (HLatham, 2013).
M3 Use force field analysis to analyse resist and driving forces
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Illus
tration 1: Force Field Analysis
(Source: Force Field Analysis, 2018)
Forcefield analysis: According to this model, people faces problem and issues
while implementing organisational changes. These people will consider that adopting
these changes will be of no use and waste their efforts & time. With the help of this
model, Burberry can adapt to changes in a proper way. It will help the manager in
defining the professional and personal benefits of implementing changes. There are two
type of forces i.e. driving and restraining force. Restraining force are also called as
hindering force and acts as a big barrier to implement change within Burberry. This will
impact the success of company in a negative manner. Driving forces will benefits the
company in adopting change in a positive manner. This will results in achievement of
organisational goals in a desired manner (Salman and Broten, 2017).
Schein' s organisational culture model application:
This model states that an organisation can not adopt the changes in one single
day, for this employees require time to adopt all the changes. As the time will pass, the
organisation will be able to accept all the changes effectively. In the Burberry company,
this model can help them in managing the time to accept any change.
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