Analyzing Change at Burberry: Impact, Barriers, Leadership Approaches

This report provides a comprehensive analysis of change management, focusing on Burberry as a case study. It explores the impact of internal and external factors on organizational strategies, including political and environmental changes. The report identifies drivers for change, such as transformational and remedial changes, and examines barriers to change using force field analysis. It also evaluates different leadership approaches and their effectiveness in delivering organizational change. Furthermore, the report determines measures to decrease the negative effects of change, such as employee turnover, and provides conclusions and recommendations for effective change management strategies. This document, contributed by a student, is available on Desklib, a platform providing study tools for students.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain the varied organisations examples to define the impact of change .....................1
M1 Drivers for changes..........................................................................................................3
TASK 2 ...........................................................................................................................................4
P2Analyse internal and external factors for change ..............................................................4
P3 Determine measures that will aid to decrease the negative effect of change....................6
M2 Theories and models to evaluate organisational response...............................................7
D1 Conclusions and recommendations .................................................................................8
TASK 3............................................................................................................................................9
P4 Describe different barriers for change ..............................................................................9
M3 Force field analysis to analyse the driving and resisting forces ....................................11
D2 Evaluation of use of force field analysis .......................................................................11
TASK 4..........................................................................................................................................12
P5 Apply different leadership approaches ..........................................................................12
M4 Extent to which leadership approaches can deliver organisational change effectively. 14
D3 Effectiveness of leadership approaches and models of change management. ..............14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Change management is an effective approach which is adopted by an organisation to
motivate and support the individuals to adopt changes in order to achieve success and growth in
the business. It is necessary for the firm to implement some effective changes for attaining the
competitive advantage in the marketplace. This will be beneficial for the company as it will
inspire the employees to adopt the changes and help managers to apply appropriate strategies for
controlling subordinates working procedures. The selected organisation in this report is Burberry
which is a British luxury fashion house leading their business in clothing, accessories and
cosmetics. This study will include the effect of changes on the leadership and functions of the
organisation. Also, the effectiveness of changes on the leadership, individual behaviours and
strategies of the organisation will be understand. Along with this, the impact of several barriers
for change on the leadership decision making and the most suitable leadership approach for
overcoming this issue also will be discuss.
TASK 1
P1 Explain the varied organisations examples to define the impact of change
An organisational strategies refers to the sum total of actions which is formed by an
organisation to accomplish their long term goals and objectives. As Burberry is going to
implement new methods of working within organisation so it is necessary for them to make some
effective plans or strategies according to the working environment so that the motive of the
implementing changes can be attained easily(Thomas and et. al., 2013). If they will not apply
necessary changes in their working process then it will impact on their existing strategies and
operations which can be understand by following points:
Basis Burberry Zara
Political changes These are those changes which
occurs due to the changes in
government policies and rules.
Like after Brexit all the rules
were changed and greatly
affect retail sector due to
Zara is also affected greatly by
Brexit due to which they have
to change their strategies and
operations which can be seen
by following points:
Strategies: As they are listed
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which Burberry have to face
the higher loss as lower brand
position and profitability in the
business(van der Voet,
Kuipers and Groeneveld,
2015).
Strategies: Burberry is
offering luxury products due to
which the prices of the
products is high as compare to
others but after Brexit they
have to drop their price which
is essential for them to sustain
their business position for a
longer period of time.
Operations: For attaining the
competitive advantage in the
market they are adopting the
latest technologies and
innovations in their production
activities so that they can
reduce their overall cost and
can offer high quality product
at lower price.
in one of the most recognised
brand because of their high
quality products because of
this they were adopted
skimming pricing strategy
previously but after Brexit they
have to adopt economy pricing
strategy in which they have to
sale their products at lower
price.
Operations: For operating the
business operations smoothly
they are adopting Just in time
method in which their main
focus on managing inventory
so that production activities
can be operate smoothly and
can save the excessive cost of
the operations(Brown, 2012).
Environment changes These changes are arising
because of natural disaster,
climate changes and others. It
lead huge impact on the
operations and strategies of the
Burberry which is discuss
below:
These are the important factors
which should be considered by
Zara while operating their
business activities otherwise it
will greatly impact on the
overall performance of the
business.
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Strategies: For saving their
extra cost they are adapting
minimum stock level so that
they can eliminate the wastage
of resources. Also, they are
following lean principles so
that the value and
communication flow within
the firm can be
increased(Stanleigh, 2013).
Operations: For maintaining
their brand value they are
contributing in CSR activities
and take part in the initiatives
like keep Britain clean and tidy
so that the operations of the
business can be operated
without any crisis.
Strategies: As they are
coming under the reputed
brand so it is must for them to
make strategies after
considering the environment
factors. In context to this they
always inspire the people not
to use plastic bags and believe
on cash less payment so that
the deforestation can be
decreased in the economy.
Operations: For running the
business operations effectively
they are using the Six sigma
technique as it will help them
to determine the inappropriate
process and help them to
operate all the operations
according to the environment
so that the value of the brand
can be maintained.
M1 Drivers for changes
The management is affected by both inetnal and as well as external drivers that manage
the managerial changes that are taken place by which the management can effectively sustain the
competitive situation. The internal drivers of change are resource that are accessible in the
management, skills to form the approaches and rules, types of candidates, managerial culture and
so on. The external drivers of change are competitors, government laws, changing technologies,
variations of customer requirements and so on.
Types of organisational changes
Transformational changes : Burberry can adapt such changes so that constant manner to
examine the managerial tactics and change them with the changing environment. Hence, the
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competitive benefits will maintain the benefits over the competitors firm. On the other side, Zara
involves understanding of culture trends, knowing social climate and remaining upgraded on
technical advances.
Remedial changes : Burberry can adapt such changes if the performance of the
management declining. On the other side, Zara have higher term of performance level will tend
to decline when suffering from financial distress. Such variations are made to correct the tactics
that are profitable but are now damaging to the business.
TASK 2
P2Analyse internal and external factors for change
Changes are necessary for the business organisation as it helps them to operate
organisational activities according to the current market situations. But while implementing the
variations in the management have to face several internal and as well as external problems.
External issues are such issues that occur in the business like communication, leadership, culture
and so on. Whereas the internal issues are arising because of outside environment of the business
like political, environmental, social and others(Hintz and Bahia, 2013). It is essential for the
Burberry to examine all these factors in order to make effective plans or strategies top reduce the
impact of these factors on the organisational strategies and operations. The impact of these
factors on the Burberry is defined below:
Internal drivers: These are the factors which is under control the company as it arise
within the organisation. All the internal factors have higher term of effects on the global
performance of the company. Some of the internal factors are explained below:
leadership: In order to effectively execute the changes in the business operations leader
of the Burberry should concentrates on offering training and growth programs to the workers by
which the abilities and knowledge of the employees can be get maximised in respect to
effectively adapt the variations in their actions. (Peters, 2012).
Resources: This the most important factor which includes all the resources like funds,
manpower, systems etc. It is necessary for the Burberry to evaluate all the resources that they are
perfect for the business or required some changes to enhance the quality and quantity of their
operational activities.
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For understanding the impact of these factors on the operations and performance of the
business Burberry can use the SWOT analysis to determine the strengths, weaknesses,
opportunities and threats of the business. So that they will be able to reduce their weakness and
threats and take benefits form its opportunities. The SWOT analysis of Burberry is described
below:
Strengths Weaknesses
Burberry has their own identification as they
are offering checkered pattern to their
customers.
Change drivers: As they have huge presence
in the western economic so it will be more
beneficial for them to moving ahead from a
specific pattern. It will enables them to attain
more success and growth in the marketplace.
Burberry is charging higher price for its
products which limits the succession of this
brand.
Change drivers: They need to adopt economy
pricing strategy as it will help them to attract
more customers in their products(THolmes,
Clement and Albright, 2013).
Opportunities Threats
As the Burberry have limited products line
which consist beauty products, clothing and
accessories that limits the growth of the
company.
Change drivers: By increasing their products
line they can attain increase their market share
and can get higher profitability in the business.
As Burberry is listing in one of the luxury
brand due to which they have to face tough
competition.
Change drivers: In order to beat their
competitors it is necessary for Burberry to offer
high quality products at low price
External drivers: These factors are not manageable under the business organisation as
they are occurring outside the organisation. For measuring its effects of such elements of
Burberry can adapt PEST analysis which contains six factors that are defined underneath:
Political: The political factors are related to the governmental legislations or regulations
such as trade policy, employment laws, tax policy and others(Wilkinson and et. al., 2013). All
these element have huge effects on the overall performance of the management. For instance, if
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government will regulate the free trade policy then the trade will become more easy for Burberry
across the international boundaries.
Economical: These factors are related to the change in the interest rate, inflation rate,
international trade, taxation etc. In the case if the inflation rate will be increase by the
government then it will direct lead the negative impact on the purchasing power of the customers
which results decrease in the sale of Burberry products due to which the profits of the business
will be decrease.
Social: It snatch the attention of the managers towards the needs and preferences of
customers which tells that Burberry should focus on the consumers demand and producing their
products according to them for attaining higher profitability and sustainability in the
marketplace.
Technological: This refers to the innovations and latest technologies which represent that
in order to implementing the changes successfully Burberry must focus on the using latest
technology in their production activities so that they can attract more customers in their products
and services.
P3 Determine measures that will aid to decrease the negative effect of change
While implementing the changes in the working procedures and strategies Burberry have
to face various issues which lead the negative impact on the performance of the business. One of
the main issue is increase in employee turnover due to which company have to face the higher
loss. For preventing themselves from this issue manager of Burberry must adopt some effective
strategies which are mentioned below:
 Enlargement of communication channels: By implementing some effective
communication channels Burberry can communicate with their employees easily related
to execute their operations according to the new changes(Alavi and Gill, 2017). Also,
managers can motivate them by introducing them from the benefits of the changes in
their operations.
 Increase the participation of employees in decision-making: In order to successfully
implement the changes manager must include all the employees in the decision-making
process so that employees will feel that they are important assets of the organisation
which results higher contribution of employees in implementing the changes.
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As per the above discussion it can be stated that while implementing the changes organisation
have to face the various issues so it essential for Burberry to adopt some an effective technique
to reduce the negative impact of the issue on the business activities. For this, Burberry can use
the PDCA model which is described below:
 Plan: It is the first stage of this model in which manager will plan to execute all the
changes. So that the customers attention and interest cam be increased towards their
products and services. For attaining the desired outcomes they have to give focus on the
strong market research so that they will be able to determine that which changes they
should implement in their organisation.
 Do: This is the second and most important element of this model as in this manager of
Burberry will focus on the implementation of their planned strategies and methods. At
this stage, manager will need higher contribution of the employees for effectively
conducting the changes (White and Robinson, 2014).
 Check: In this stage, they will check the effectiveness of their renewed strategies and
methods that they are able to achieving organisational goals and objectives or not. For
this, they can utilise their estimated figures from their actual results to find out the
variances so that they can make some necessary improvements.
 Act: This is last stage in which the manger of Burberry will focus on checking the overall
performance of the business so that they can identify that changes should be further
implement or not.
Thus, it can be clearly seen that this model will help the Burberry to track the succession
of the changes at each and every stage.
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M2 Theories and models to evaluate organisational response
Managerial changes are needed to maximise the opportunities of management to sustain
in the budget and realise the profits in competitive field by adopting new technology and
methodology to satisfy the consumer demands. Management can adapt Lewin's change
management model to measure managerial response to change. This model covers three stages
like Unfreeze, change, refreeze. Unfreeze involves preparing of people for change and making
them know the requirements for such variations for staying profitability over longer period of
time. Change involves bringing the desired change in the management and communicating
constantly to the individual about the progress of such variations. Refreez means that the
variations are accepted, embraced and executed by individual and the management start going
back to regular section again. Such sort of the manner in the management will response to
change that can be evaluated.
Six box model
The six-box model is a generic structure created by the American analyst Marvin Weisbord to
deal with the operation of the management. The six boxes that created up the model such as
Purposes, structure, relationships, rewards, leadership, and helpful mechanisms.
D1 Conclusions and recommendations
From the above discussions it can be concluded that there are intrinsic drivers that lead to
managerial sustainability of the management. Internal drivers can be controlled and maintain at
the time of maintaining while the managers have to make variations as per to the external
drivers. Efficiently executing change in management internal organisation of work and
enhancement in technologies that can support the Burberry in having competitive benefits over
their competitors. By following the recommendations for planning efficiently for change are as
follows -
 By determining the issues that require to be changed.
 Communication of desirable change to all the neutral.
 By supervising and maintain the resistance, dependencies and monetary fund risks of
executing such sort of the variations.
 Present an effective business plan by which it will have an positive effects that change
will bring in the management by measuring the available facts and figures.
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 By engaging of workers in the decision-making procedure while executing such
variations.
TASK 3
P4 Describe different barriers for change
According to the above discussion it can be understood that adoption of changes is
necessary for the organisation to attain higher succession in the business. But while espousing
the changes an organisation have to face several barriers which reduce the chances of the
success(Coghlan and Shani, 2015). Here are described about the barriers and the impact of them
on the leadership decision making:
Lack of employees involvement: This is the most common issue which is occurring in
change management which refers that an employees have fear to accept the changes in their
processes. In order to increase the involvement of the employees leader must take some effective
decision like they should always listen their employees opinions, provide them appropriate
resources and give them assurance that changes is beneficial for them as well as for organisation
also.
Imperfect communication: It is the another issue which create hindrance in
implementing the changes. In order to increase the interest of the employees towards executing
the changes the leaders of Burberry must focus on the establishing proper communication
channels so that the employees will be able to share their opinions, ideas and conflicts with the
leaders regarding to the adapt the changes(Tang, Lu and Hallinger, 2014).
In order to attain more customers attention and sustain in the market for a longer period
of time it is essential for Burberry to introduce new products with some new changes in their
working procedures as it will help them to attain more customers. While adopting the changes in
their production various factors have influenced the changing process. For evaluation those
factors Burberry can use the Force Field Analysis model which is defined beneath:
Forces against changes:
It leads to better outcomes, better contributions from group members and amplified group
members. For effecting a change, Burberry can use this leadership because a change affects the
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employees and they might resist such change if their opinions are not involved in decision-
making. Involvement builds trust among the team members and they adapt to changes easily.
 Increasing cost: For introducing a new product in the market Burberry have to more
focus on the research, required excessive resources and give more training to their
employees due to which the overall cost of the business will be increased.
 Increase the labour turnover: As employees are always against to adopt changes as
because they have do give their more time and efforts to accomplish their work due to
which company have to face the issue of employees attrition in the organisation which
results lower success of the company(Lawrence, 2015).
Forces favours changes:
 Customers wants new products: As Burberry is listed is one of the luxury brand due to
which customers always wants new product from the company with some new changes
which provide a great benefit to the company in form of higher profitability and
sustainability in the marketplace.
 Increase in product category: By developing a new product in the market place
Burberry can enhance its product category as well as its customers interest brand loyalty
also(Iles, 2017).
 Governmental support: For maintaining the social value of their brand Burberry always
highly contribute in CSR activities and always produce those products which will not
harm their economy. Due to which they are able to attain higher support of the
government like lower tax facility for their products.
After discussing all the above factors, it can be stated by considering all the components
in the production activity of a new product Burberry can increase their overall profitability and
sustainability of their business.
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