Understanding and Leading Change Report - HND Business, Unit 17

This report delves into the critical aspects of understanding and leading change within business organizations, using John Lewis Partnership Plc and M&S as case studies. It begins by identifying and analyzing the drivers of change, both internal (employee motivation, organizational culture) and external (competitors, consumers, government regulations), and their impact on organizational strategy. A PEST analysis is conducted for each company to determine the political, economic, social, technological, and environmental factors influencing their operations. The report further examines how change impacts individual, leadership, and team behavior, evaluates the effectiveness of change management models, and identifies barriers to change and their influence on leadership decision-making. The study also explores leadership approaches to navigate change, ultimately providing a comprehensive overview of how businesses can adapt and thrive in dynamic environments. The report also includes an introduction, main body, conclusion and references.

UNDERSTANDING AND LEADING
CHANGE

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Drivers and impact of change..................................................................................................................3
Overview of companies case studies.......................................................................................................5
PEST analysis..........................................................................................................................................7
Analysis for each companies on impact of change and its effects upon operations and strategy of
companies................................................................................................................................................9
Evaluate how change will have impacted individual, leadership and team behavior.............................10
Evaluate how impact of change was minimized and application of correct models to process change
efficiently..............................................................................................................................................11
Barriers for change and its influence on leadership decision making in company.................................13
Leadership approaches to deal with change in John Lewis Partnership Plc...........................................13
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Understanding and leading change will benefits companies as it help to sustain for longer
period of time within specific sector. The current study is based on John Lewis Plc and M&S
operating their businesses across UK. This study will introduce drivers of change and its impact
on organizational strategy. It also defines PEST analysis undertaken for each case study to
determine drivers of change. Furthermore, this report will analyze for each companies on impact
of change, evaluate how it will have impacted leadership, team behavior and individuals. At last
it justified how impact of change will minimized & application of appropriate model to process
change.
MAIN BODY
Drivers and impact of change
Drivers of change refer to component through which modification is occurring in
operation management of companies. It is disruptive force which present in almost all cases and
it has varied influence or affect on particular situations. Driver of change is distinguished into
two categories that are external and internal drivers that impact business operations positively or
negatively. Both put pressure on management to shapes change includes modify strategy, designs
of products, plans, services and goods. Change driver can be comprehend as condition or
situations which are responsible for bringing modifications in common functionally &
performing of any companies.
Internal drivers-
Employee motivation and moral-
It refers to strength and confidence level of a applicant or staff members that play vital
role for organizations (Grimolizzi-Jensen, 2018). But when workers have less committed and
low morale towards their job role it will be affects business practices and management activities
negatively. It requires hard work, a lot of efforts and time to overcome this driver that drive
Firms toward change that is really very essential for overall business operations. This driver put
negative impact on productivity and motivational level of staff, which in return decrease sales of

businesses rather than before. Without having motivated and high committed employees in
workplace the success and growth of organizations is not possible, it needed extra attempts to
reduce impact. It can said that this driver can impact on John Lewis partnership PLC, negatively
it put pressure on company to make changes within their existing business structure according to
workers needs.
Organizational culture-
Organizational culture is another internal driver of change that put positive or negative
impact on organizational strategy (Felipe, Roldán and Leal-Rodríguez, 2017). It represent values,
behaviors, believes and attitudes of an companies as well as team at work areas within Firms.
Ineffective culture or behavior of senior towards their staff members will impact on growth
strategy of business which in return increase high employee turnover. Without appropriate
culture management will had to deal with many challenges that directly affects business plans
and success strategies. Improper behavior of people will affect productivity and performance of
whole group in Firms which also impact on sales. Inappropriate organizational culture in
respective Firms will influence behavior or attitude of staff through which conflict in workplace
or among group will arise.
External drivers-
Competitors-
It is one of the most effective and strong external driver of change that impact on
business expansion and production strategies negatively (Boling, Mayo and Helms, 2017).
Competitions such as competitors who are always lower prices and costs. High extend
competition within specific sector put negative impact on organizations production procedure
and drive Firms towards change which is quite difficult to do within short time period. In recent
time, due to globalization many companies attempt hard efforts to gain competitive advantages,
increase their profit margin and to become a global leader. It creates intense competitive rivalry
among existing players who are able to beat each other by offering products according to needs
of consumers. This driver affects M&S organizational strategy such as business expansion or
entering into new market place.

Consumers-
Customers are another external driver of change that also put negative or positive impact
on business and organizational production strategy (Durillon and et.al., 2018). Changing people
needs such as a shift in demographics to an older population that demands nutrition and healthy
food products. In simple words, when the needs of target market will change it put high pressure
on production management to make some modification in their product manufacturing
procedures to produce items according change needs. It is quite difficult for companies to make
changes in their existing business practices as it requires a lot of efforts. Customers hold power
to drive Firms towards change accordant to their requirements because it directly affects on
products sales.
Government laws and regulation-
Along with above drivers or factors of change, it also put high pressure on John Lewis
partnership Plc and M&S. Laws related to environment sustainability and product packaging
impact business functions and operations of John Lewis partnership PLC. Firm provide paper
packaging to their consumers instead of plastic which help to save land from being polluted. It
can be said that, Taxation rate put negative impact on M&S as they need to pay high charge in
trade process according to government taxation policies.
Overview of companies case studies
John Lewis partnership PLC is British leading Firms which operates Waitrose & partners
supermarket, John Lewis & partners department outlets and their banking & financial services
(O’Higgins, 2018). The organization is owned by trust on behalf of all their workers who have a
say in running of ventures and bonus to share of profit. It is known as thirds biggest UK non
traded Firms by sales. Chain’s position in up market and it clothes strongly to middle & upper
class buyers. It is a brand of high end department outlets operating throughout Great Britain.
They launched new visual identity in 2018, putting emphasis on their unique ownership model
and commitment to exceptional consumer services. In changing world of retail, company is
focused on competing through innovation and differentiation in three key fields like personal
service, expanding into new services and unique goods.

At heart of their strategy is creating a targeted and curated assortment which is
increasingly different to John Lewis. Key to this is a greater emphasis on its own brand and
securing exclusive brand and items that their consumers cannot buy anywhere else in same
sector. Service ambitions centre of John Lewis around exceptional partner centric experiences
and service. They empowering business through latest technology and investing in production
activities to tap into burgeoning target market demand for trusted expertise and advice in home
& fashion. For selling the best quality products or services to number of people organization
won, best clothing retailer, best multichannel retailer and global data consumer’s satisfaction
awards.
M&S is another Firm that has broadened their marketing strategy towards all kinds of
consumers with introduction of value range of companies and essential range to expansion of
enterprise (Scott and Walker, 2017). The purpose of this Firm is happiness of all their members,
through their worthwhile and satisfying employees in successful business with growth & success
measured on their abilities to sustain position as an thriving and outstanding retailer example of
employee ownership. The aim of this company is to provide the best quality products such as
clothes and other items to their consumers with better pricing structures. The business strategy of
this Firms is based on three interdependent objectives profit, partners and consumers which
together will make their business more successful rather than its competitors.
Along with all above information it’s really essential to define factors that impact on John
Lewis and their business practices may be negatively or positively while operating in retail
sector since for so long. There are several drivers of change available that affects business
operations and drive management towards changing their performance and activities to sustain
for longer within marketplace. Government, consumers, technology, competitors, investors are
included in list of external drivers. Resources, desire, abilities and resources considered as
internal drivers of change that impact organizations functions. All these change driver affect
objectives and aims of Firms and impact on their day to day practices. The objective and aims of
companies is to increase partner’s benefit, to grow business efficiently and to realize market
potential along with above one. Fulfill the needs of consumers and quality is the main focus of
brands that also get affected due to above elements. Political, social, economic, legal, technology
and environmental factors also impact on John Lewis that will discussed below. It can be said

that companies gain benefits in retail sector by complying with and adhere to all corporate rules
and regulations. Organizations management board is responsible to chairman for their decision
making procedure and it derives their businesses effectively.
PEST analysis
Political factor-
Changes in trade policies, taxation rates, import & export rules and tariffs regulations
directly and indirectly affect priorities of John Lewis Firms. Without complying with
government policies the success and growth of its business is not possible as it can be considered
as driver of change that put extreme pressure on Firms to follow the rules related to taxation rates
(Helliwell, 2018). In context of companies, this driver of change put positive impact on John
Lewis business. United Government is deciding to decrease corporation tax from 30 to 28
percent that aid companies and support its management to increase their profitability rather than
before in the future. With pay low tax companies is able to enter into new market where they can
beat its existing player by providing range of products much better than other brand with quality
and unique features.
Economic factor-
Saving rate, interest rate, inflation, foreign exchange rate and aggregate investment in an
economy are included in list of this factor that affect business growth and profitability (Jones and
Comfort, 2020). There is continuous modification in economic situations across United Kingdom
as a outcome of Brexit where Firms operates. Increased economic certainty in nation is
considered as economic driver that impact on business practices. Organizations are present
across different geographies in country which makes them exposed to variations in currency.
Along with above driver, it also consider that the whole UK economic is facing recession and
much sensitive to changes in interest rate. Rigid rivalry within every area of retail industry had
lead to retailers offering a lot of incentives to consumers. It will impact John Lewis as prices
have to be driven down most of time that decrease the profit margin and revenue for companies.
Social factor-

Community’s culture and ways of doing things will impact business operations of
companies in a retail sector. Customer’s life styles shifting and changing preferences are the
external driver of change that affects production procedure of John Lewis negatively as they
need to conduct market research to identify current needs and collect information about current
preferences of target market (Piccoli, Lui and Grün, 2017). The overall activities consume a lot
of time and require efforts conducted by management to adopt change and drive their business
towards it. In simple words, when people change their preferences according to trend it put high
pressure on companies to understand and offer products accordingly. This act takes time and also
needs strong workforces who are able to complete day to day activities such as conducting
market research and analysis as well. To need to overcome the impact of this change driver
management need to hire more applicants that require more investment. So it can be said that this
driver impact negatively and may be affect sales.
Technology factor-
Technological innovations and advancement have massively affected John Lewis PLC
productivity and sales function positively (Idrees, Vignali and Gill, 2020). It considered as
external factor or driver of change that impact profit margin of companies and production
procedures positively. With latest technology companies is able to determine consumer’s needs
and offer products accordingly in fast or timely manner which in return increase sales or
profitability rather than its competitors. It helps to strengthen brand image within marketplace by
giving more power to organizations for producing range of items with the help of implementing
latest machines or technologies in overall business structure. This driver enhances quality and
productivity of manufacturing procedures of Firms updating as well as improving existing
technology which is utilizing for manufacture process. In John Lewis Partnership Plc and M&S
Firms they utilize advance technology which allows workers work easy and they capable to do
more work in less time in return increase profit margin.
All above changes have impacted on firms and its operations in positive and negative
manner. For example, changes in consumers’ needs affect production operation of John Lewis
partnership Plc. It put high pressure on firm to change their product manufacturing system or
process according to current market needs which is quite beneficial for business in every term.

Analysis for each companies on impact of change and its effects upon operations and strategy of
companies
Change in business condition and situations can be having direct impact on sustainability
of John Lewis and other retailers in same sector such as M&S. It impact on each Firms and
affects their businesses strategies as well as varied functional & operational functions negatively
and positively. For examples, companies which fail to adhere to and comply with emerging
changes in micro and macro environment lose their brand image along with time. It may be
decrease productivity, sales and operational efficiencies rather than before. Technology change is
one of the best example, that directly impact on productivity and efficiency of operations. It
impact in positive manner as allow management to gain competitive advantages by producing
different categories of products such accessories, cloths and hand bags.
Technology change can bring many benefits and opportunities for each fire. New
technology can aid to develop new services and products, which in return increase consumer
base rather than before (Rahman and Gong, 2016). For example, John Lewis use new or latest
technology for packaging their products instead of using human labor as it save time, enhance
speed and cost which is quite beneficial for its business success. Companies strategy has been
discussed above that get affected due to technology advancement or change positively. The
strategy is related to increasing profit which gets affected due to this change.
Communication technology witnessed tremendous transformation as retail companies
such as John Lewis can be in constant touch with their business partners, stakeholders and
consumers anywhere in the whole world without huge costs. Internet is considered as
communication technology that helps to M&S to communicate with their target consumers to
identify their needs and understand preferences as well.
Furthermore, it can be identified that change in consumers preferences also impact upon
business operations and strategy for marketing products to generate awareness among specific
group of people. In today’s world, individual drive towards using organic food items and less
chemical used clothes, it put negative impact on marketing and production operations of John
Lewis as it require changing whole procedure accordingly modified preferences that is not
possible in short term notice. When companies had develop their marketing and manufacturing
strategy, these type of change impact upon it and put pressure to restructure it.

In context of John Lewis partnership PLC, it can be said that technological change impact
on business practices and performance level positively. For example, John Lewis Company with
advanced technology drives their consumers towards them and reaches at target market by using
social media channels it helps them to identify and understand market needs. Along with this, by
implementing artificial intelligence in workplace management can develop better production
strategies and it enhances their operational efficiencies.
On the other hand, internet is another change that impact on M&S business strategies and
operations related to marketing in effective and positive manner. It allows management to gain
the attention of new consumers and retain potential one for longer period of time. With internet
System Company develop the best marketing strategy with some unique features.
All above strategic changes put positive impact on operational change within John Lewis
partnership PLC. With advanced technology, marketing department changes their functions and
activities which in return make them able to reach at target market which is quite beneficial in
term of increasing profitability and sales. They create new strategies by developing new plans
related to promotion and products advertisement within specific market place.
Evaluate how change will have impacted individual, leadership and team behavior
Change within organizational structure, consumer preference and technology affects
leadership, team as well as individual behavior negatively or positively.
Effects on leadership- Driver of change may permits leaders in John Lewis Company to
consider new methods for motivating and directing their team members. It also allows them to
adopt techniques for inspiring group acquired maximum performances rather than before. It can
be said that during period of organizations structure change, leader in companies might face
though resistance from their employees. Not only this, but there can also be condition in
workplace in which leadership in Firms might be needed to be switched from autocratic to
democratic for successful implementation of change. It will evaluated that when organization
change their existing business structure it get affected leadership styles of leaders according to
situation where number of applicants are not ready to except any modification.
Impact on team behavior- There are varied typed of organizational structure accessible
within corporate sector adopted by many companies according to their size and business

operations. Not only this, they can make changes within existing one once after Firm gain a lot
of success. This type of change driver can impact behavior of current group members in John
Lewis. It can be considered that workers may resist such medications that are needed to be
carried out in their productivity and functioning. For this reason, companies and its leaders
might need to reconsider their attempt for changing behavior of staff towards emerging situations
that is intense competitive rivalry among existing players to become global leader in retail sector.
Effects on individual- along with the above change and it’s affect upon team behavior
and leadership style. Organizational structure change also impact on individual within John
Lewis Partnership Company. By considering the affects of this modification on individual it can
be said that workers and staff in Firms might feel less motivated towards structure change and
create negative attitude in context of same which in return decrease profit margin, operational
efficiencies and productivity level rather than past few months. Without motivated and
committed staff organizations are unable to change their organizational structure that related to
further business growth in competitive environment around them. It is very important for
companies to make changes according to current market needs as it help them to generate more
revenues that is possible only when they have team of highly knowledgeable and experienced
candidates.
Evaluate how impact of change was minimized and application of correct models to process
change efficiently
The impact of change was decreased in effective manner when John Lewis Plc
companies management take appropriate action and techniques available as well as used by
many Firms in context of same situation. It can be decreased by motivating staff and inspire all
of them to except change. Motivation is one of the key elements that drive people towards
working and performing within any situation with full concentration and commitment towards
their job role in workplace. This technique work really very well but some individual still are not
expecting change as they feel motivation less appropriate in that situation. Furthermore, it can be
said that when employers motivate their staff after understanding their needs and reason behind
resistance they can reduce negative impact of organization structure change. On the other hand, it
also considered that without comprehend needs and reason motivation cannot work well as it
create more conflict at workplace which in return increase high employee turnover.

Moreover, to minimize the impact of change and process it efficiently John Lewis leaders
as well as managers adopt and implement the principles of appropriate change model that is quite
beneficial for business in every term.
Lewin’s change management model-
It is one of the most effective and best models that make it possible for John Lewis Plc
Firms to process change and comprehend structured modification. It was created and designed by
Kurt Lewin in 1950s. This model is consists of three phases that help to process change
effectively which are discussed below-
Unfreeze-
First level of this change procedure accordant to model includes preparation for
organization structure change in John Lewis (Tang, 2019). This means that companies gets
prepared for change and also for fact that employees are unaware about it. This stage is very
important because most applicants around work place try to resist modification and it is
necessary to minimize this status quo. The only thing that happens at this situation is to explain
clearly to all staff member why existing way needs to be changes and how it is important for
business and them as well.
Change-
After passing above stage it’s time to take next phase that is change. It is the stage where
real change takes place (Diao and McMillan, 2018). The organizational structure change
procedure may take time to happen as workers mostly spend time to embrace new developments,
transitions and happenings which make them able to comprehend the importance and benefits of
action taken by management. At this phase, reassurance and good leadership is crucial because
these aspects lead to keep forward in right direction and also make change procedures easier for
workers who are included in it. Now people can take part in change process and understand its
benefits and needs for everyone working in companies.
Refreeze-