Impact of Change: Leadership, Strategy, and Operations Analysis Report

This report delves into the multifaceted aspects of organizational change, focusing on the impact of change on strategy and operations. It uses ZARA and PRIMARK as case studies, comparing their approaches to technological and structural changes within the fashion industry. The report evaluates internal and external drivers of change affecting leadership, team, and individual behaviors, offering remedies to minimize negative impacts. It further examines obstructions influencing leadership decision-making and explores various leadership approaches to initiate and manage change effectively. The analysis covers technological, structural, and financial changes, along with globalization's impact, providing a comprehensive overview of change management in a business context.

Understanding
and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Compare different ways in which change impact on organisation strategy and operations. .3
Differences in Organizational Approaches to Change...........................................................5
LO2..................................................................................................................................................6
Evaluation of internal and external drivers of change affecting leadership, team and individual
behaviours...............................................................................................................................6
Remedies to minimise negative impact of change on organizational behaviour..................8
LO3................................................................................................................................................10
Various obstruction which leads to impact on leadership decision-making .......................10
Influence of Obstruction of Change upon leadership decision making...............................11
LO4................................................................................................................................................13
Different Leadership approaches which taken changes to initiative....................................13
CONCLUSION .............................................................................................................................15
References:.....................................................................................................................................17

INTRODUCTION
An organisational change is the process of changing companies operation, organisation
strategies, new techniques and culture and impact of different changes is an organisation. In
other words, it is an approach to prepare, support and help subordinate, team members and in
making organisation change. It refers to the modification of structural relationship and various
roles perform by individual in organisation. Organisational change have structural format and it
changes as per the market and enterprise varies. (Alvesson and Sveningsson, 2015) For every
organisation adopting change is very much important to compete in the market otherwise
company will left behind or wipe out form the market in few years. In the present project ,ZARA
and PRIMARK is chose as the core company. These companies deals in fashion industry and
have million dollars revenue per year. In addition to this, brief discussion is stated below
regarding comparison of various tools for change. Beside this, impact of change in the behaviour
of leadership and person behaviour. Different kinds of barriers and its influence on leadership
decision- making has been explained in detail manner in this report. In the last, report provide
information of leadership approaches and to deal with changes has been mentioned in this report.
LO1
Compare different ways in which change impact on organisation strategy and operations
An organisational structure defines to control activities such as task allocation,
coordination with employees, and supervision to achieve organisational goal. Organisational
structure impact on company action and provide strong base on which standard operation and
procedure work on. In other words, it is an outline to complete task in order to achieve desirable
goal. There are different activities which are are involve in structure such as roles, procurement,
and different rules and policies of organisation. ZARA and PRIMARK are chosen as company
for this report. ZARA is a Spanish based company which deals in retail industry and company
headquarter is situated in Arterio in Galicia. Company was founded in Rosalia Mera and
Amanico Ortega in year 1975. The main focus of company is to provide high quality of product
to the respective customers. They deal in luxury product and their target customers are high
income group people. Along wit this, PRIMARK is and Irish based company which deals in

fashion industry. (Anderson 2016 )The company headquarter is situated in Dublin and it was
founded in 1969 by Arthur Ryan. Both the company can used decentralized method for operating
their task effectively and efficiently. Comparison between ZARA and PRIMARK on the basis of
different methods are explained below.
Basis ZARA PRIMARK
Technological Change In order to beat competitive
market company is using new
technological tool know as
point of- sales (POS) system.
For the ease of customer
company is providing online
service where individual can
see their latest product, new
launches on their computer
and smartphones. And they
provide 24\7 assistance for
their loyal customers to make
their shopping experience
wonderful.
Company is using laser
technology to make perfect
product with maintaing quality
of product. Company is using
innovative ideas to provide
rich experience to their
customers. Company is trying
to reduce waste in order to
increase their profit share in
the market. For sustainability
in long run organisation should
change rapidly according the
taste and preference of
customers. PRIMARK make
their website more
approachable to customers
where they can buy or see the
product anytime anywhere.
Technology Adopted Company is using android and
IOS app to promote their
product in the market. Beside,
this company is using tacking
technology, which will provide
Company is taking help of
different customised software
to maintain the quality of the
product. It also help to keep
improve the performance of

all the information regarding
their product fluctuation. This
technology also help to keep
track on logistic department.
productivity, which will help
the company to grow there
marketplace and profitability.
Providing product to customers
at the right time and right place
is important nowadays and it
can be only done if company is
adopting new technology.
Structural Change Company have adopted
structural change to
manufacture the new product
in given time period. The
online marketing strategy have
hike the sales for the company
mainly in European market.
This change had company to
make luxury product for their
customers. ZARA have
merged with Fetch Robotics
which is California based
company which help to track
stock inventory.
For making profit it is
important for the company to
expand their market at global
level. PRIMARK is setting
their outlet in different part of
US and Bangladesh. In the
result company annual profit
has been increase by 14%.
Main purpose of company is
capture untapped market by
keeping the price of
commodity low. At present
company have 350 stores
around the world and they plan
to open more retail outlet in
future.
Differences in Organizational Approaches to Change
In the above mentioned report it has been identified that companies operates within same
industry but varies in organisational structure. ZARA have maintain their brand image by
providing luxury product with high price. (Aslan and Reigeluth 2013) They design their every
product according the customer taste and preference to provide value for the product which

customer is paying. In the context of PRIMARK they provide low quality product to make more
and more customers. They target age group between 20 to 35 and company have marketing team
to analyse the current fashion trend in the market.
Similarities in Organizational Approaches to Change
Both the companies operate in same fashion industry and have similarities among them.
ZARA and PRIMARK deals in retail sector and in fashion industry. New trends and fashion
product are followed by same company and most of the time it is similar. (Azanza 2013) Along
with this ZARA and PRIMARK share same objective and goals, to survive in the market for
long period of time and make profit. Both the companies wants to satisfy the customers need in
order to create goodwill and trust in the mind of customers.
LO2
Evaluation of internal and external drivers of change affecting leadership, team and individual
behaviours
Organisation change is on of the important part for every company because it is necessary
for company to bring change for betterment of the organisation. In modern world each and every
aspect of individual is changing at very high speed , to gain competitive advantage company
have to adopt change and focus to become ore flexible. There is two coin of change, it can also
develop negative impact for the company employees because they can feel pressure of change
and can be uncomfortable with new technology.
Drivers of change- A change driver can be internal or external force which form change
to an organisation. It indulge in change to strategy, plans, design, product and services. If the
fundamental drivers are achieved by organisation, it can be consider to achieve its overall goal
for the particular period. To achieve the organisation goal company have to use approachable
procedures to help employees to achieve organisational vision. There are different kind of
external and internal factor of change affecting the employees, team leadership management.
Some of them are explained in detail below:-
Internal factors and their impact:

Those factors and position occurred within the organisation premises are known as
internal factor and control by mangers of the company. The primary internal factors are
discussed below:
Organizational culture: This is defined as the assumptions ,belief, values and way of
interacting with the collages in unique way is defined as organisational structure. Psychological
environment plays an important role in culture which define the shape of company. The culture
or traditions affects the clients and employees or group of people within or outside the company.
In the context of ZARA, in the year 2015 company try to promote there product on the basis of
skin colour which portrait the negative impact on the minds of customers. In the case of
PRIMARK company have good image and goodwill in the market,where employees ans end
consumers are high satisfaction level with the company.
Poor Delivery- Providing the product at right time and in right place is one of the main
objective of company to succeed in market. Most of the company have USP of good quality
deliverable across the nation. Organisation should use effective method of delivery of the
product in time to satisfy customer needs. In the case of ZARA, the customers are getting their
product on time because company use appropriate channel of distribution. In other hand
PRIMARK, as they focus on low price but company cannot provide effective delivery system to
their customers.
Financial Management: Any organisation needs cash for their company to run
effectively and efficiently for long run. It is an organic function for any business, and it focuses
on ratio, equities and debts. It is useful for portfolio management, distribution of equity and also
help in raising capital for other sources. For the company like ZARA, the company manager
should focus on maintaining the quality and brand reputation in the minds of customers to create
more profit. Whereas, PRIMARK should invest more in their company to sustain for a long
period of time in market.
External forces and their impact
These are the forces which are arise outside the organisation and they beyond the reach of
company and mangers. (Blewitt 2012) So company have to make changes according the external
pressure to stay and do business without any hurdles.
Technological Change- Today world is changing rapidly so the company have to
change according the atmosphere to survive in he competitive world. Both ZARA and

PRIMARK should adopt new technological changes and up gradation in their production process
so they can supply their product as per the demand generated in market.
Globalization-It means expansion and diversification of business at international level.
More and more MNC create competitive environment in the market. To make profit company
should make proper method to use their resources. ZARA is have made its image and brand
reputation very well at international platform. Whereas, PRIMARK is not recognized by the
international market and it known locally in UK market.
Impact on leader, individual and team
Leader
A leader must have total
control in the organisation and
identify the changes of
manpower for efficiency.
Company will change their
police and laws by adopting
leadership style which best fit
in organisation.
Individual
Every individual have task and
they feel uncomfortable when
change occurs in organisation.
Employees should accept the
challenge and get motivated by
their leaders to increase their
efficiency.
Team
Team is important for any
company to perform their task
effectively with efficiency.
Team should have proper
coordination among
themselves to complete their
task in given time interval.
Remedies to minimise negative impact of change on organizational behaviour
Organisation factors have the ability to influence overall business culture, these factors
can be internally or externally which direct effect the culture of organisation. As per the working
environment is changing constantly the working organisation culture of company is changing
accordingly. (Brown 2012) These can put negative as well as positive impact on the employees
who are working in respective organisation. As the result, it will directly effect the operations
and logistic activities of the company, which is directly related with growth and profitability.
ZARA can adopt Bruke Li twin model in order to reduce the negative impact which come along
while environmental change occurs in business.
Bruke Litwin develop this model in year 1992, and it was developed to understand the
complex parts of organisation. Nowadays most of the company are using this model to know
their affected areas and where improvement is needed to make atmosphere of the company

suitable for their employees. Here are some points to reduce negative impact on organisation
behaviour are explained below:
External environment: External environment are not in the control of organisation and
there factors are like market area, legislation, government intervention and outside competition
and many more. Both the company should understand the external culture and accordingly
should plan their activities for their product. ZARA should provide their services to their
customer by identifying the external factors, which will reduce the uncertainty present outside
the market.
Mission and strategy: Every company has its own mission and strategy to achieve their
desired goal. In order to be successful company should formulate their future plan and set
objectives to increase their market share and profitability. ZARA should main strategies in
advance and should work on it regularly to achieve the mission of the company. On other hand
strategies are made to accomplish the set goals and target.
Leadership: It is a process in which company executive can direct, provide guidelines
and effect the behaviour of work to attain the specific goals in any given situations. Leadership is
the ability to induce their sub-ordinates for work with efficiency and zeal. Main purpose of
leader is to plan future goals,motivate other in organisation to have great successful venture.
ZARA should have effective leadership style for their company to survive in future. It is a
multinational company, and they should set example for other companies by having a good
leadership techniques.
Organisational culture: Organisation culture encompasses different set of values and
behaviour of individual working in organisation. (Cullen 2014) It also serves as glue to combine
the members of the organisation. ZARA should maintain the culture and respect each and every
individual belief and values. This will create a positive impact on the minds of customers and
employees will be feel respected in organisation.
Structure: Due to changes in outer world company have to change their company
structure to sustain for future. Restructure may affect the relationship between the employees and
their managers. ZARA should try to maintain proper structure in order for smooth functioning of
the company. Proper hierarchy or structure will facilitate the company to fulfil the demand of the
customer effectively in allocated time period.

Task and individual abilities : Every individual have to perform the given task by their
mangers as per their capabilities which require different skills and working style for completing
task. ZARA manger should require to hire the skilled people for their company because they will
perform better in accordance with other person. This will save time and resource for the
company.
Employee Motivation: To keep employee motivated company should appreciate their
hard work and also provide some monitory benefits to employees. Leaders should be initiative in
nature because this will develop a positive approach on the minds of employees and they will get
motivated by seeing company leadership. ZARA should also conduct motivation sessions on
quarterly basis to keep their employees passionate and motivated towards their work.
LO3
Various obstruction which leads to impact on leadership decision-making
For the every business innovative strategies are necessary to overcome problems, more
over for the effective growth the company need to make effective plan of action for the better
growth. Changes need to made which can work in an attractive environment, the continues
changes in the organisation can affect the business also through which some benefits are been
evaluated inn better way. ZARA company is need to accomplishing the growth planning towards
the goal and objective opportunity which lead to the growth of the business.The key role of the
organisation is modification should be as opted by the employees in the industry and should
work in better way. In reference to ZARA manger objectives to make some changes in the
business in such way the business function can be ruined smoothly. For an effective and efficient
production work the company environment included certain barriers which are been explained
below (Alvesson and Sveningsson 2015)
Obstruction of modification governance: It been evaluated by many individuals in the business
that changes can affect the business which may create negative impact in the business industry.
Obstruction can get destruction in operations of the business. The production process of ZARA
how the barriers affected the their business. Some of the temptations which affect the
management are as follow:
Lack of clear Scope/definition: In the business there are lot of barriers which affect growth of
the industry. The clear scope defines the path where the employees and the management has to

work, right instructions are been given in such an accurate manner which will take the company
to higher position. In context to ZARA the company need to set the proper objective for their
employees so that they can be able to achieve the targets. Organisation is moving fast for the
growth and even for which they are making certain strategies to adopt the plan.
Lack Employee Involvement: This is the biggest barriers that cam be seen in the business so
more over it is important to improve the skills and talents of the labour. The employees should be
taken as the asset to the company so it is very much important for organisation to deal them in
best way. In context to ZARA the company lack was they didn't involved more employees in the
task in their project work so that's why the reason it became the fault to the company. So the it
can be understood that they should involve the employees and should make teams for the
effective growth and higher productions level (Aslan and Reigeluth 2013)
Loss of effective communication strategy: Communication is the important part of the
organisation through which goals and targets can be achieved. The main purpose of the
organisation is to earn profit so it is mandatory to be communicated with top management and
supervisor about the plan of action. While in the business industry is the best way through which
the communication should be effective in manner. Due to loss of trust and faith employees lose
the communication. The gab between employees and employers can reduced from
communication only. ZARA employees and employers should be understanding towards their
goals and objectives and also moreover communication can be done in higher quality to avoid
risk (Blewitt 2012.Brown 2012).
Influence of Obstruction of Change upon leadership decision making
Leadership decisions which is need to evaluated in such manner that will lead to some
changes and through which roles and responsibility can be divided. Some of the decisions are
taken for the betterment of the growth, as well as the company main purpose is need to evaluated
in such manner that may create the effective plan of demand, In context to ZARA both the
company is need to make the strategies through which employees growth performance can also
be evaluated. Decisions are been take by management and some barriers affect their decisions.
Some of the models through which it can be analysed which are been disused below:
Force Field Model: This approach was given by Prof. Kurt Lewin, which was create to
aid the management in a effective manner. It incudes five stages which aim to motivate the

employees in such way to accept the changes in the management. These phases are been
explained below :-
Stage 1 : In this phrase the first manager and leaders make tools and techniques for the
effective growth of the business and also assess the market conditions. In fact the managers of
ZARA they also created these changes in the products to attract more customer.
Stage 2 : Changes which are adopted by the company which induced certain risk factor
which the organisation have to except, the manager of ZARA needed some plan of action to
avoid the risk.
Stage 3: In this stage, the leaders need to find some modification in products that can
attract the consumer. The team of the ZARA have to make certain changes in products in such
way that may lead to the growth.
Stage 4: After the modification of the products another step is formation stage where the
manager make strategies for the effective manner.
Stages 5: The last stage is where the manger and leaders of ZARA which is make
necessary changes in policies so that ZARA company can evaluate. The strategies which adopted
by the company in this stage requirements are be implemented.
Force Field Models involves certain factors which are been explained below:
Facilitating Factor: These are those factors which is within or outside the business
which encourage to adopt in the organisation. Due to outdate machinery did not give such out
that may create more problem for the business. As well as this factor aid to motivation and lead
the team in the right direction. ZARA management team morale which lead to the growth of the
business and the process structure is been declining. For the effective communication the
company need to change the staff structure and responsibility in an coordinating way. The
behaviour of the personal attitude which can enhance the skill of the organisation. The talents
and skills should measured in such manner that may affect the growth of the business (Doppelt
2017)
Restraining Factor: In the environment business the changes are polices and regulation
of governance affect the business which the organisation has to except that. ZARA which
involves in many different kinds of products so the innovation is need in the goods but more over
the restrict changes should be adopt by the organisation avoid the risk factor in the business

LO4
Different Leadership approaches which taken changes to initiative
There are different approaches which lead to changes in the organisation and moreover
the employees and employers which create the healthy environment. The changes which are
leading inside the organisation and the approaches of different leaders which aid to identify the
problem in an effective manner. To achieve the organisational goal and change in ZARA
adopted through different leadership approach which are as follow:-
Laissez-Faire: This leadership style is also called to be representative body which
enhance the power in the organisation and allow the employees to take the better decisions. The
styles which the worker team uses in such highly qualified skilled in appropriate time span.
ZARA included these changes internally and externally which affected the business. There are
unique styles which make changes in big company. Delegated staff of ZARA leaders are
providing the suitable information for empowerment of the employees for boosting the
employees the team coordination is necessary for improving the changes in the organisation
which is needed for the effective growth and planning.
Advantage: Under this leadership style ZARA employees are motivated and they
possess confident in the works which affect the growth of the business in such effective mode.
Through this styles the company uses such techniques to resolve the problems of the employees.
Disadvantage: By adapting this leadership techniques ZARA can lead to risk which
create ineffectiveness in the business, which leads to less knowledge.
Example: Managers with ZARA uses this style when decisions which is used to be taken
in less two department that is functional and operational (Foltin and Keller 2012)
Autocratic- The leadership style is also known as authoritarian. Only leaders of ZARA
who is accountable for the growth of the organisation. In the present scenario the decisions are
been taken to advice with others. The type of leadership approach which is necessary to change
the situation which is been brought by the ZARA company. Such changes are to included like
new brand, product line, new polices, and even refurnishing the structure and existing location.
ZARA company which deals in different products and uses certain leadership approaches within
the organisation and also make quick decision. An effective leader leads his team in such
effective way that they cant involve in other problems. Thus, the strong leader guidelines is
necessary for the team

Advantage: The leaders style affect the employees which use to impress the skilled
potential and motivation and direct to carry in a effective manner
Disadvantage: The effective work is been done in such manner that they should know
how to do the work in skill and knowledge. Thus, leadership style depend on the morale of the
employees in a work place.
Example: The leaders of ZARA is working for the shorter goals which increased it sale
by 6% within the operating employees. The unskilled employees is getting the task in such a way
that force them to each work. Employees are the work force which aid to increase work in such
way which lead to increase the work (Hintz and Bahia2013)
Participative- It is also known as democratic style. The managers of ZARA they invite
all workers who take decisions in the impressive way. Where as, the leadership approach which
is to be communicated and suggested to various ideas and information, findings in the area of
changes. The leaders of ZARA have to bring changes in the organisation to promote the healthy
environment and approaches in the company. The productivity and performance of the creativity
of employees can increase the style in such manner which leads to the growth of the people in an
appropriate way. The guidelines which help the employees a long lasting way the growth of the
business is need to work in according to the employees growth pattern. The employees are been
motivated in such approach to create the work approach to ensure the growth of the objective.
Advantage: Skilled employees need to be directed in right path for that styles are to
adopted by the company to promote new ideas and skills which establish to higher. The
operation activity which need to carried out b y the company.
Disadvantage: The leaders right which takes to the decision in important matter with the
key to the goal and objectives in the organisation. Mangers of the company which is leading the
company much higher value so the goal is need to implemented (Hintz 2012)
Example: ZARA company which meets certain intervals which leads to some
suggestions and feedback so as to enhance the operational performance. The need is to be done
for the growth of the business. The organisation have to to implemented in achieving the targets.
Transactional Leadership Approach : Major focus on the result and existing structure
of an organisation with measures to reward and penalties system. It is having the formal
authority and position which is related to roles and responsibility of an organisation.

Advantages : Reward system can create self interest towards the work. More over
achievements are shorts term goals. The system of the reward is good to be applied in the
organisation so the best thing is that the company should promote the work in a effective manner
so for the better result (Hrebiniak 2013)
Disadvantages : In this system creativity is less and objectives are less. At the particular
level there some times which taken many credit which lead to the growth of the organisation.
When the innovation is less then how the work is leading to less and which is been created in the
manner of action.
Example : ZARA company is leading a important role in the market place and so that it
leaded to the growth of the organisation, the involvement which needed for the succession of the
business.
As per the detailed description which is been disused above that there various approaches
of the leadership of ZARA which is been required in the organisation which leads to effective
growth and effective work focus. The changes of the company is leading to the growth and even
more over the control over the organisation during the year. The ZARA company is the high
reputed company which needs to lead the company in right direction. The main brand which is
necessary to leading to the growth plan. The targets of the company which is been achieved in
such way that it can carried to high development. The positiveness of the work and leading to the
market place the company should innovate their products in such manner that will affect directly
or indirectly which will lead to the growing stage. Every company financial growth is need in the
business to attain the process which leads to the higher plan. Company targeting is major effect
to the business. The action of strategy which may occur the higher platform growth. The leading
product can create a best effective in the minds of the customer. The major role will lead to the
planning development (Kotter, J. P., 2012)
CONCLUSION
As per the leading changes in the organisation so the management need to promote the
work which included many arrangement growth so it involved various organisation strategies
and the company is ZARA which is retail stores which working is brand in an effective way. The
major focus of the company is adopted leadership approaches which leaded to growth matter.
However the organisational behaviour affect the business indirectly whole report is divided into
different parts. PEST/SWOT is been undertaken into the project which aid to analyse the work

and affect the growth of the business. The models are also been discussed that is force field
model to determine the organisation and how the barriers can affect the business and how will it
influence in the business decision and leadership. The leadership approach which create the
different ways through which work is been distributed among the employees in an effective
manner. The organisation which is conducting this kind of the plate form which will lead to the
effective way. The main purpose of the organisation is enhance the creativity in the products.
The decision making the success which is leading the company in exclusive way so that
customers can be attracted towards their work. The skilled employees are needed to be made in
such way that the goal can be achieved by the company.

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