Impact of Change on Organizational Strategy: A Management Report

This report delves into the complexities of change management within organizations, using Burberry and Marks & Spencer as illustrative examples. It begins by examining the impact of change on organizational strategy and operations, exploring instances of political and environmental shifts and their effects on business models. The report then identifies internal and external drivers of change, highlighting their influence on leadership, individual, and team behavior. It also discusses measures to mitigate the negative impacts of change on organizational behavior and evaluates organizational responses using relevant theories and models. Furthermore, the report explores barriers to change and their influence on leadership decision-making, employing force field analysis to analyze resistance and driving forces. Finally, it assesses different leadership approaches to deal with change, evaluating their effectiveness in delivering organizational change. The report concludes with recommendations for effective change planning and management.

Understanding and Leading
Change

Contents
INTRODUCTION.................................................................................................................................4
TASK 1.................................................................................................................................................4
P1 Different organisational examples to show impact of change on organisational strategy and
operation............................................................................................................................................4
M1 Drivers for change in each example and types of organisational change they affected...............7
D1 Conclusion and recommendations with valid justification for planning change effectively.........7
TASK 2....................................................................................................................................................8
P2 Various internal and external drivers of change impacting leadership, individual and team
behaviour...........................................................................................................................................8
P3 Measures to minimize negative impact of change on organisational behaviour...........................9
M2 Appropriate theories and models to evaluate organisational responses......................................9
TASK 3...............................................................................................................................................10
P4 Different barrier for change and their influence on decision making of leadership....................10
M3 Use force field analysis to analyse resist and driving forces......................................................10
D2 Evaluate the use of force field analysis in meeting to organisational objectives........................11
TASK 4...............................................................................................................................................11
P5 Different leadership approaches to deal with change in organisational context..........................11
M4 Extent to which leadership approaches can deliver organisational change................................11
D3 Evaluate effectiveness of leadership approaches and model of change management.................12
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13

INTRODUCTION
Change is defined as the process of introducing something different that will drive an
organisation to achieve igs desired goals and objectives within pre-determined time period.
The business organisation may undegoe operational methods, structure, tehnologies,
organisational structure and strategies so that it makes easy to achieve strong brand image
among their rivals in competitive market. The present assignment report is based on Burberry
which is engaged in providing luxury fashionable clothing products, accessories, cosmetics
etc. It was established in the year 1856 and having headquartered in London, England. The
report discusses the different organisational instances of getting impact due to changes in
their structure. Along with this, different barriers of change and impact on leadership decision
making are also briefly explained under this report. Apart from this, leadership approaches to
deal with changes are also covered under this report.
TASK 1
P1 Different organisational examples to show impact of change on organisational strategy
and operation
Strategy is a lengthy process which is used to predict and adopt effective action by
which firm will achieve their goals, aims and its objective easily. It help an organisation to
formulate the way that help the company to gain competitive and monetary advantages
against its rivalry companies (Alavi and Gill, 2017). Changes that is associated with
organisational structure and strategy help management of to gain high profits by improving
their strategic decision and direction. With new strategic decision it is easy for company to
fill demand of its customer in appropriate manner. For better understanding of operational
strategy some example that relate with organisational example are compared. In this context
Marks & Spencer and Burberry are mention below:
Basis Burberry Marks & Spencer
Political change After decision of Brexit
individuals that are living in UK
has to face different political
changes. It create political
instability in country. This results
that frequent changes take place in
At the time of Brexit M&S has to
face various challenges which
negatively impact on its
operations. It create barrier in the
revenue and profits of firm.
Because of this case organisation

rules, regulation of UK market.
The major impact of these
changes is on hospitality and retail
sector. To find alternative for this
company modify its strategy and
operation which are explain as
below:
Strategies- The result of Brexit is
that Britain has to face downfall
in its economic. It decrease
income of people so they spend
less to buy luxury products and
services. In this regard company
has to execute new pricing
strategy for its products. Earlier
Burberry is earning good amount
of profits by charging premium
price from customers. But after
Brexit company implement price
penetration strategy. As in this
company sale its products first
through low price and after
capture high market. They
charged small extra charge from
its customers (PEST Analysis,
2018).
has to modify its strategy as it
help individuals of middle class
group they are not impacted with
sudden economic change. Some
changes that take place in internal
environment of M&S are
explained.
Strategies: Before Brexit company
decide price of its products
through premium and skimming
price strategy which govern that
company earn high profits from
sale of its product. But due to
economic change company reduce
price of its products and execute
low price skimming strategy. It
help company to make stable sale
of its product which make
presence of company in
competitive market.
Operations: Through the social
media company promote their
products to attract more
customers. It include discount and
offer. This help organisation to
aware and acknowledge people
about their services and products.
For this case M&S adopted lean
manufacturing system which is
best alternative to solve the
problem of warehouse and stores.
It signify that company increase
their profits by implementing cost
effective way for their business. It

also fulfils demand of its
customers through similar
expectations from similar
products (Díaz-Gibson, Civís-
Zaragoza, and Guàrdia-Olmos,
2014).
Environmental
change
As environment is changing with
fast rate various issue are face by
society. So now a days people are
more concern about it. For this
people want to purchase those
products which are safe for
environment in all aspect and
create minimum changes to
develop different forces. Burberry
has adopted some changes in its
operation and strategies that help
to achieve better results.
Strategies- To protect
environment from harmful
resources there are some
modification are implement in
Burberry system. This includes
efficient purchase of raw material
which determines company focus
on inventory control to buy their
products. It is also beneficial for
them as company use them in
renewable manner. Along with
this employees of Burberry are
connected with different CSR
programs that help to promote
Due to several changes in
environment company modify its
strategy and operations. In this
case some strategy and operations
are mention below:
Strategies- For positive outcome
M&S has carried out some
modification in its strategy such
as cashless payment which
determine it save environment
from deforestation. Along with
this company also banned use of
plastic bags as it is beneficial to
save environment from non-
redeemable products.
Operations- To organise
operational activities in best way
company implement six sigma
strategy. It help company to
reduce their waste and to use
effective resources as they are not
unsafe for nature. As due to this
resources of will be used by
company in optimum way which
signify that company does not
want to create an issue that relate

clean environment in company.
Operations- To save environment
company along with its
stakeholders develop different
policy for benefits of environment
and follow to sustain their
business in retail industry.
with environment.
M1 Drivers for change in each example and types of organisational change they affected
The changes that are predicted by company first are its internal and external
environment as they impact directly on organisation. For the internal changes company
modify its policy, rules, regulations and associated law that relate with organisational culture.
External changes are beyond the control of management in this company as change in interest
rate and inflation in economy are included under this changes (Doppelt, 2017).
Types of organisational change
Transformational change: In this change company has to adopt new strategies which
are supported by management in strategic manner. In context of Marks & Spencer
company has alternative to eliminate itsemployees by which they invest to adopt new
changes and strategies.
Remedial change- When company want to address its weak performance and
deficiencies this changes are accepted by organisation. In case of M&S company
organise training classes for employees that help to improve performance of
organisation.
D1 Conclusion and recommendations with valid justification for planning change effectively
As per the above facts, it is concluded that external and internal changes on company
develop systematic process for company that help to bring executive results. The internal
driver help company to achieve the high profits by increasing its product margins. Along with
this it help to management of M&S to manage its financial resources (Espedal, 2017).
External drivers that include economical, social, technological changes will help Marks &
Spencer to recognize their macro environment which help to gain competitive edge among
rivals. Some recommendations in this context are mention below:

 The company make effective changes and execute them in culture or organisation by
discussing with their employees. It helps them to increase company performance
effectively.
 The manager of M&S is recommended to evaluate and analysis changes before
implementing it on organisation. This will help to modify changes which are
required by to complete the project (Wellman, Jeffries and Hagan,2016).
TASK 2
P2 Various internal and external drivers of change impacting leadership, individual and team
behaviour
Various internal and external drivers are present in an organisation that influences
team and individual behaviour and leadership. In case of M&S this drivers are explain below:
Internal drivers:
Resources- In context of M&S, there are different resources are present that impact
directly on behaviour of team and individual. To bring effective result in an organisation all
essential resources such as financial, technical and other need to be available so that they
work effectively and efficiently at individual level as well as on team level. As if there is less
supply of resources then it create barrier and restrict teams and individual to achieve
organisational goals. Without sufficient resources leader and manager cannot guide
employees to perform the task (Hallinger and Bryant, 2013).
Financial management-To operate business in an appropriate manner, sufficient
capital and resources are required to complete their daily operations. As without money it is
not possible for Marks & Spencer to manage its workforce and complete their project. So in
this circumstances if company manage capital effectively then leader has strength to adopt an
implement new changes without wasting financial resources (Smits and Bowden, 2015).
External drivers
Political- The changes such as rules, policy, laws and legislation that are impacted
positively and negatively on resources of company are covered in this aspect. M&S required
to follows the law of each country in which they are operating their business or stores. In any
case if company violate rules of particular country then government has right to restrict their

trade in market or industry. This decrease motivation of employees and they are not able to
bring effective result because of low energy or enthusiasm.
Economical- Under this aspect interest and inflation rate, currency fluctuation,
income of consumer are covered as it impact on sale of company products. Like if customers
has less purchasing power then production and sale team feel demotivated. This create low
quality products as employees not put more efforts because of less sales. In this case M&S
has option to manage its resources in optimum way that helps to develop strategy as per
economic changes (Iles, 2017).
P3 Measures to minimize negative impact of change on organisational behaviour
To reduce the impact of conversion on routine and working activities of M&S, some
measures that help the manager to decrease impact of change are mention below:
Involvement of employees in the process of change- The management has option to
take suggestion from lower and middle level of employees while formulating new strategy
for their business. As it help M&S to adopt changes quickly and appropriately. Through this
communication relations between employees and management will improved that help to
bring positive changes in behaviour of teams and individuals (Morgeson, DeRue and Karam,
2010).
Expansion of communication channel- For the execution and implementation of
organisational changes properly, there is need of effective communication channel that help
to interact between management and employees effectively. This help employees of M&S to
acknowledge new changes without any difficulty.
M2 Appropriate theories and models to evaluate organisational responses
System theory is useful for understanding the response within the organisation. This
theory is impactful that help management of M&S to minimize the negative impact of change
on its routine work. Apart from this system theory is also useful to solve the problems of
employees that are faced by them in performing their operations or activities. According to
this theory M&S needed to depend on policy of government and organisation which provide
benefits to company for implementing changes properly. Along with this negative influence
of this theory is that it does not cover all aspect of company. This theory provide favour to
those scenario and aspect that help to organise the system in stable way.

TASK 3
P4 Different barrier for change and their influence on decision making of leadership
To implement changes in strategies and operations of business organisation has to
face several hindrances that create barrier to execute changes. As these change impacts on
decision of leader and management. In context of M&S some barrier are explain below:
Rules and regulation of government-The policy and regulation that are developed by
UK government create barrier to adopt changes in strategy and operation of organisation. As
this barrier reduce profits of company and decrease employ performance. To gain expected
result, M&S follow regulations which is formulated by government. Following this policy
help company to capture wide market. This decision and policy help organisation to influence
its stakeholders in appropriate manner (Rees and French, 2016).
Poor employee participation- Without the participation of employees it is difficult for
company to implement in organisation properly. To get high returns or benefits it is essential
that employees will participate for executing the change in its strategy and operations. As due
to low interest of employees it increase turnover of employees. As for this company has
alternative to provide information to its employees it motivated them to adopt changes and
their participation is also increased. In context of M&S it is essential for them if they treat
their employees as an asset it help them to implement positive behaviour inside the
organisation.
M3 Use force field analysis to analyse resist and driving forces
Forcefield analysis- As per this model, individual face different problem and issue to
implement changes in organisation. This persons consider that modify the changes in operations and
strategy is not useful for organisation. With these they waste their efforts and time in changing old
strategy for business. With implement of this model, Marks & Spencer adopt new changes in
sequential way. This help manager or leader to define their employees personal and professional goals
that is easy to achieve with adoption of this changes (Tang, Lu and Hallinger, 2014) For this model
there are two types of forces that is driving and restraining force. In case of Marks & Spencer
restraining force will create large barrier as this results that company is negatively impacted through
this changes. While the driving forces bring positive result for company and they impact positively on
behaviour of teams and individuals. With this it is easy for organisation to accomplish their expected
result.

D2 Evaluate the use of force field analysis in meeting to organisational objectives.
Through the technique of force field analysis it is easy for company to get several benefits.
Like it help different business firms and employees to achieve their goal and target within time period.
This is simple to adopt and implement which signify that it has flexible structure. This analysis helps
M&S to dealing with difficult and complex situation in proper manner with ethical and moral
situation. Usually it is less impactful because barrier and forces increase the stress level among
employees.
TASK 4
P5 Different leadership approaches to deal with change in organisational context
Leadership is the essential factor for every and each organisation because it is used for
implementing the changes in the life style of workforce of organisation. As in the context of Marks &
Spencer it is essential to implement effective style it help employees to increase motivation that help
to achieve desired goals of company. Some of the leadership style which is used by management of
M&S is mention as below:
Democratic leadership- By adopting this style of leadership an organisation increases their
efficiency in the productivity of organisation. In this leader develop effective relation with its
employees and allow them to give their suggestion in decision making. Through this style employees
of M&S increase value in their work and retain in organisation for longer time period (Salman and
Broten, 2017).
Situational leadership- This style of leadership help leaders to deal with different challenges
and situations that develop issue in operating company activities. Under this all different theories and
approaches of leadership are used by leaders by which they has large number of option or alternative
to solve company issues. Moreover leaders of M&S not only get benefits to make decision but to
improve their capabilities that help to make decision in quick manner.
M4 Extent to which leadership approaches can deliver organisational change
To evaluate leadership approaches, the management of M&S execute model of Lewin’s
which provide benefits to make changes at workplace of an organisation.
Lewin’s change management model- this model helps an organisation to implement change
in workplace. It is categorised into three different parts which are given below:

Unfreeze- This is the first stage in which leaders motivated their employees. So that they are
ready to adopt new changes that take place in work culture or place of the organisation. For this
democratic leadership help management of M&S to execute Lewin’s model easily.
Change- To adopt changes in M&S, the leaders and manager has option to implement
situational leadership. As it help them to find answer of problems that are faced by employees to
adopt changes.
Refreeze- This is the last stage of Lewin’s model which works to formulate new methods
through which healthy, safe and similar environment is developed by management that increase
motivation of employees to work similarly.
D3 Evaluate effectiveness of leadership approaches and model of change management
From the above task it is predicted and analysed that situational leadership and model of
change management help M&S to develop healthy environment in their workplace. Through this it is
easy for management to encourage their employees as it help to bring maximum contribution of
employees. This result that it not increases effectiveness of employees but also reduce the issue and
conflicts among different employees at their workplace. Moreover this model help company to gain
competitive edge from its rivals through the support of its employees. Therefore to bring effective
result company implement situational leadership that reduce chances of failures in implementing
organisation new strategy and operations.
CONCLUSION
It has been summarised from the above report that an organisation can ony achieve growth and
success in competitive market when the management will carry out suitable changes on regular basis
either in their structure, strategies, technologies etc. There are different drives of changes such as
political, social, technological, policies etc. which makes huge impact on the working of company due
to which it is must to adopt these changes in favourable manner. There are various measures such as
including workforce in decision making which can help in reducing the impact of negative change.

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