BUS560-2: Business Transformation Planning Report, New World Company

This report provides a comprehensive analysis of business transformation planning, specifically focusing on the case of New World Company. It begins with an executive summary and introduction, outlining the purpose and scope of the report. Task 1 delves into the importance of stakeholder engagement, both internal and external, in the transformation process, recommending specific performance and organizational objectives for New World Company. Task 2 examines internal and external compliance requirements and potential risks associated with organizational transformation. Finally, Task 3 presents a communication plan to facilitate the transformation process. The report concludes with a summary of findings and a list of references.

Running head: BUSINESS TRANSFORMATION PLANNING
BUSINESS TRANSFORMATION PLANNING
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Executive Summary
It has been argued that effective transition in business is crucial to any large or small
organization in order to sustain and further accomplish in the globalized era which is persistently
evolving enhanced business environment. However, it acts vital to the facts that the need for
change management is often regarded as unpredictable and thus has a propensity to be
involuntary and discontinuous and further can be influenced by circumstances related to
organizational dilemma and complexities. The aim of this paper is therefore to provide an
evaluation of approaches towards business transformation by focusing in the degree of
performance and organizational goals along with the level of interest stakeholders have in the
process of change management by further provide relevance to the New World Company, one of
the renowned supermarket in New Zealand.

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Table of Contents
Introduction......................................................................................................................................4
TASK 1- Performance and organisational objectives and stakeholder interests in business
transformation..................................................................................................................................5
(A) Internal and External Stakeholder’s Engagement in the business transformational
procedure.....................................................................................................................................5
(B) Importance of involvement of internal and external stakeholders in the planning for the
transformation process.................................................................................................................6
(C) Performance and organisational objectives to achieve business transformation for New
World Company...........................................................................................................................7
(D) An ethical decision-making framework to overcome ethical challenges that could be
caused due to business transformation decisions made by New World Company......................9
Task 2: Internal and external compliance requirements and risks relevant to organisational
transformation................................................................................................................................13
(A) Analysis of 2 internal and external risk factors associated with organisational
transformation............................................................................................................................13
(B) Analysis of Internal and External compliance requirements for organizational
transformation............................................................................................................................14
Task 3: Communication Plan.........................................................................................................15
Conclusion.....................................................................................................................................16

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References......................................................................................................................................16

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Introduction
Business transformation is regarded as a business-led, technology-enabled transformation
programme in order to implement the infrastructural process and competence of the organization
to deliver a contemporary revenue system. In a globalized era of unprecedented rate of disruption
along with market turbulence, transformation in recent times have been revolving around the
demands to generate improved standards and values in order to develop avenues and to drive
improved growth and further deliver new productivity and efficiencies (Aspara et al., 2013). An
effective business transformation can be regarded as an opportunity which surpasses the
incremental transition by establishing opportunities to re-instate the business and operate models
to deliver advanced value and growth. The process of business transformation incorporates
strategic decision-making which influence the functioning of the organization along with the rate
of performance improvements (Jeston, 2014). Leaders in business transformation implement
well-established strategies which underpin a wide-encompassing range of enterprise-wide
investment decisions, resource distributions along with performance expectations. It aids to
shape an executable transition purpose whereby the value will reflect from the transformation
(Mamic, 2017). Business enterprises which have provided funding for effective articulation of
the transformational strategy can interpret the strategic objectives into pragmatic transformation
which can further be executed by the organization (Müller & Pfleger,2014). Furthermore, these
organizations develop an inclusive understanding and awareness of the way the business
operations will be formulated, delivered and enhance their organizational value. The purpose of
the paper is to provide a thorough evaluation of the importance of performance and
organizational aims along with the interest of stakeholders in business change by relating one of
the renowned supermarket chains called New World. The organization situated in New Zealand

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has gained a considerable degree of recognition for its customer service and wide range of
products to accomplish the essential needs and demands of its customer base (Newworld.co.nz,
2018). In addition to this, the paper will focus on the requirements and demands of internal as
well as external compliance requirements and risks relevant to organizational change and
development by further providing a communication plan in order to highlight the process of
transformation.
Task 1- Performance and organisational objectives and stakeholder interests
in business transformation
(A) Internal and External Stakeholder’s Engagement in the business
transformational procedure
Organizational management is influenced in a greater degree by the views and opinions
of internal and external stakeholders which is referred to any group, individual or association that
is further being impacted the business organization and thus has been considered as a
fundamental entity of the organization (Storbacka et al., 2013). As employees are considered to
be primary internal stakeholders, they tend to provide a contributory role to the development of
strategy approaches as well as the functioning of the business (Mamic, 2017). Thus modern
theorists tend to highlight a greater level of consistency which perceives that inclusion of
employees is perceived as one of the most significant success factors of transformation along
with the implementations of unique organizational concepts (Cameron & Green, 2015). It has
noted that the engagement of employees enhances the situations such as the level of resistance
within the process of business transformation. However, it has been identified that major
proportion of change management strategy approaches were unable to achieve success because

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around 70% of neglecting the importance of human needs while the rest encouraged the
involvement of proficient and methodological domains (Ceulemans, Lozano & Alonso-Almeida,
2015). Thus modern business enterprises have been promoting active participation of employees
in the decision-making processes. Suppliers and distributors being one of the fundamental
stakeholders influence and is influenced by the success of the organization’s goals (Weiss,
2014). As suppliers and distributors of a business is essentially concerned with long-term
decisions, it is prudent to encourage the involvement of these stakeholders in the process of
planning as well as execution of transformational business for the implementation of overall
organizational success (Waddell et al., 2016).
(B) Importance of involvement of internal and external stakeholders in the planning
for the transformation process
Stakeholders can be regarded as any association or individual who tend to impact or
further get influenced by the organizational accomplishment (Weiss, 2014). Thus stakeholder
management has been considered as a procedure underpinned by set of standards which further
ascertains the attainment of the strategic goals of the business organization by construing and
persuading the external as well as internal environments by establishing positive associations
with the stakeholder base through the appropriate management of the organization’s set of
expectations (Ceulemans, Lozano & Alonso-Almeida, 2015). Thus the idea concerning the
involvement of both internal and external stakeholders suggests that organizational leaders must
effectively formulate and execute transformational procedures which would aim to satisfy all the
members of the organization who possess a stake in the business (Storbacka et al., 2013).
Furthermore, the management of the organization must effectively correspond to the

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requirements and demands of the business to the stakeholder base in order to ensure consistent
achievements of the organization.
(C) Performance and organisational objectives to achieve business transformation
for New World Company
It has been noted that all business enterprises possess standard operational objectives
which have been applied to each types of operation. However, these standard aims have been
distinguished as ‘performance objectives’ and are further drawn into the assessment of current
degree of performance to the following five years performance (Waddell et al., 2016). However
the range of comparison has been formulated for the standardized purpose and can further
facilitate the understanding of the performance level of the business. The two primary
performance objectives can be analysed in accordance with New World.
 Quality- This objective indicates the production process of the business enterprise
through distinctive approaches which facilitates the satisfaction level of consumer base
and developing the efficacy of the internal operation procedures (Weaver, 2014). Quality
being recognized as one of the essential entity in the domain of outbound products and
further permits the organization in reducing expenditures (Weiss, 2014). New World
Company must demonstrate enhanced quality performance among all the operational
activities because of the implementation of supply chain management in past years
further aim for the increase in satisfaction of final customer with minimal costs.
 Cost- In the retail industry, the cost driver is regarded as a potential mechanism to
develop competitive advantage as lower or economical price range tends to attract greater
range of customers and further improve the prospective target in order to develop the

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structural formation of the organization (Lawrence & Weber, 2014). New World must
focus on the sustainability of economical costs within the operation procedures because
of its internal system that further purposes to facilitate the achievement of enhanced
quality of product but higher cost rather than focusing on reasonable cost range with the
outsourcing assessments by its biggest competitor Napier Supermarket in New Zealand.
Furthermore, New World will endeavour to establish in an economical market because of
competitive supply chain formulation that further is immensely responsive towards its
customer demands thus gaining high margin profits.
Business enterprises can distinguish the areas of concern and establish the essential
objectives for their organizational functioning but further necessitate specific strategy approaches
in order to enhance the level of advancement (Bocken et al., 2013). The transformational
planning stage incorporates courses of action and identifies the outcomes which the company
aims for (Katzenbach & Smith, 2015). In order to sustain the rate of transparency within
transformational planning, New World Company must take into consideration two primary
objectives in the course of this transition process.
 Sales and Profit- Financial goals are identified as fundamental to every business as
they underpin the level of sales growth influencing the revenue generation of the
organization (Bocken et al., 2013). Thus it is essential for New World Company to
engage into both sales as well as profit objectives as increased rate of sales does not
necessarily develop to a lucrative business. As a result, New World Company must aim
to formulate its monthly sales outlooks and progress along with the amount of revenue
it will generate.

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 Production-Companies must sustain the level of their production with the elevating
rate of their sales growth (Jay, 2013). Thus, New World Company must ascertain the
process of its new system which can supply in accordance to the customers demand and
needs. However, this organization must keep in consideration the persistent delays
which might result New World Company to lose primary clients and get involved in
poor reputation in the industry. Furthermore, if the New World Company effectively
strategises production objectives in correspondence to its sales growth, the company
will successfully develop a system to accomplish customer satisfaction and further
provide superior customer service.
(D) An ethical decision-making framework to overcome ethical challenges that could
be caused due to business transformation decisions made by New World Company
Lewin’s Model of Change and Ethics

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Change management is a similar concept implemented in all forms of organization
whereby it incorporates the conceptualization of business transformation and the areas of ethical
dilemmas faced by the organization. Lewin’s Model of Change and Ethics is recognized as a
cornerstone theory of organizational transition. Lewin’s model of change and ethics involves
three significant stages namely unfreeze, change and refreeze (Hayes, 2018).
 Unfreeze- This stage, recognized as the initial phase engages into reducing the forces
which tend to sustain the current status quo pertaining within the organization
with either the rise of the motivating forces further condensing for of control or
implementing the amalgamation of both. Thus in order to successfully prepare
New World Company for an effective transition, it is essentially important for the
company initiate from the core (Cummings, Bridgman & Brown, 2016).
 Change- It primarily focuses on relating actions concerning the target system to the
anticipated state of equilibrium and further creates intervention in the system in order to
develop new behavioural, attitudes, principles and ideologies by implementing transitions
within the organizational structure or processes (Hayes, 2018). The managers of New

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World Company must shed light on the course of individual transition in the changing
environment.
 Refreeze- The third stage essentially aims to assist people in order to institutionalize the
organization and further inculcate necessary and desired transformations. Thus New
World Company must focus on strengthening new patterns and further institutionalize
them through the means of both formal as well as informal tools (Cummings & Worley,
2014).