Change Management Strategies for IGA Supermarket: A Case Study

This case study analyzes the change management strategies required for IGA Supermarket to achieve a competitive advantage. It begins with an executive summary, followed by a situational analysis, including internal and external environment assessments using SWOT and PESTEL analyses. The study identifies the need for change, particularly the implementation of an online platform to enhance competitiveness. It details the proposed change management process, focusing on technological advancements and marketing strategies to increase market share. The report concludes with the expected results of the implemented changes and provides a comprehensive overview of the challenges and opportunities for IGA Supermarket in the retail industry. The document also covers the company's history, competitors, and financial performance, offering a complete understanding of the company's position and the rationale behind the proposed changes.

Running head: CHANGE MANAGEMENT
Change Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has been able to identify the various kinds of change management
strategies and process which has been required for IGA Supermarket to achieve a
competitive advantage. In case of IGA Supermarket, it can be identified that there are
different kinds of issues as there is no inclusion of online platform such as the online
application of IGA Supermarket as it can prove to be helpful for the growth of the
company. With the introduction of the process of change management which will be
enhancing the effectiveness of organization in evaluating the competitive advantage.

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Table of Contents
Introduction...................................................................................................................3
Situational Analysis of IGA Supermarket.................................................................3
Internal Environment Analysis..................................................................................3
SWOT Analysis.....................................................................................................3
External Environment Analysis.................................................................................5
PESTEL Analysis..................................................................................................5
Need for Change at IGA Supermarket..........................................................................7
Process of Change at IGA Supermarket........................................................................9
Results of the Change Implemented at IGA Supermarket...........................................13
Conclusion..................................................................................................................14
References................................................................................................................... 16

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Introduction
The report throws light on the overall analysis of the process of change
management that is required to be adopted by companies to improve their business
operations and become successful in their operations appropriately. IGA is one of the
United States brand grocery stores which operates in more than thirty countries and
the industry in which it operates in the retail industry. IGA is operating as the
franchise through the stores which are owned in a separate manner from the particular
brand (IGA.com, 2019). IGA is also owned by IGA in Ontario, Canada. The major
competitors of the company include Woolworths, Aldi and Coles and there has been
an increase in the revenue up to A$14.12 billion till the year 2017. The company was
founded in the year 1988, and the key people who are involved in the foundation of
the company include Scott Marshall.
Situational Analysis of IGA Supermarket
With the assistance of SWOT and PESTEL analysis, the internal and external
aspects of IGA supermarket can be analyzed which will be appropriate in
understanding the current position of the company among the other competitors such
as Woolworths and Coles Supermarket.
Internal Environment Analysis
SWOT Analysis
Strengths

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The company has a strong presence in more than 1400 stores across the United
States of America, and it is one of the prominent brand images in the USA for decades
which has proved to be beneficial for the overall success of the firm (Chappell et al.,
2016). There are different successful promotions along with offers which are offered
by the company to their customers such as more than 200% guarantee, and the
company has been able to reach more than thirty countries in the entire worldwide.
Weaknesses
On the other hand, there are different concerns relating to the debt as there has
been a rise in high debt for the acquisitions. Moreover, the company has a low market
share in contrast to the other competitors which are present in the market which is
owing to the huge competition present in the market (Cooney et al., 2016). In addition,
the low margins are the other aspect due to the price war, and it has led to a dip in the
prices of the different kinds of products along with services in the market.
Opportunities
There are different opportunities which can be adopted by IGA Supermarket
that will be advantageous in analyzing success of the firm in comparison to the other
competitors which are present in the market (Donnelly & Kirk, 2015). The main
competitors such as Woolworths along with Aldi are the major competitors as they
have established the technological advancements which will be advantageous for the
overall achievement of the firms.
The organization has a good chance to enter the online market through the
development of an application which will be beneficial for them in improving their

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brand image in the market and achieve the competitive advantage in the competitive
business environment in which it is operating against the other competitors (Holten &
Brenner, 2015). Through the development of an aggressive marketing strategy, it will
be helpful to increase their market share and fight against the other competitors.
Threats
There are a few major threats which can affect the overall effectiveness of the
firm in a negatively. Firstly, it is less famous brand in contrast of the other competitor
companies present in the market, and it can affect the overall sales of the company.
Furthermore, the company IGA has a high dependence on the different macroscopic
events such as economic growth or inflation which is affecting the overall
effectiveness and competitiveness level in the competitive business environment
(Hornstein, 2015).
From the SWOT Analysis, it can be identified that there are different kinds of
opportunities which can be adopted by IGA in order to improve their business
operations and it will be helpful in gaining competitive advantage. In order to beat the
different competitors, it can be seen that the competition level can be reduced through
the implementation of the change management strategy which will be a huge
successful option for IGA Supermarket.

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External Environment Analysis
PESTEL Analysis
Political Factors- IGA Supermarket has the overall opportunity to improve the
standards through proper labelling of the organic products (Jayatilleke & Lai, 2018).
The company has the opportunity to expand the business operations to expand their
business opportunities through free trade agreements which will be appropriate for the
success of the company.
Economic Factors- The rising cost of labor is one of the major threats that can
affect the growth of IGA Supermarket in the competitive business environment. Due
to the high cost of labor, it leads to high costs related to supply along with high price
related to selling that will affect the IGA stores (Keesstra et al., 2016).
Social Factors- The IGA Supermarket has the opportunity to grow their
business through increasing sale of the high-quality organic food items which will be
beneficial in satisfying the healthy lifestyle of the customers in the market (Kuo &
Chen, 2019). However, the increase in the wealth gap as it will be weakening the
middle-class spending for the products of the company.
Technological Factors- There can be different kinds of opportunities for the
IGA Supermarket as the increased automation in the business will be useful in
improving the achievement of the company (Lamé, Jouini, & Stal-Le Cardinal, 2017).
The company has the opportunity to implement automation of technologies which will
be increasing the efficiency of the business.

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Environmental Factors- There are different kinds of threats related to
environmental aspects in which it can be identified that the change in climate can be a
major threat for the company (Lines et al.., 2015). However, the opportunity of the
environmental factor is the higher emphasis on the sustainability on the environment
that can be appropriate for the overall success of the company in managing the
different kinds of activities in an appropriate manner.
Legal Factors- There are different environmental protection laws and
regulations which works as the opportunity to improve the withstanding brand image
of the firm in a competitive business environment (Morin et al., 2016). The company
IGA Supermarket needs to maximise their growth through evaluating that the
suppliers of the company are following the fair labour-based policies which will work
as the opportunity of the company.
From the above PESTEL analysis, it can be understood that there are few
threats along with opportunities that can play a beneficial role in improving their
business operations and gain competitive advantage. IGA Supermarket has different
kinds of opportunities which can be helpful for them in expanding their business
operations in a successful manner. The IGA Supermarket can diversify the supply
chain which will address the threats of the rising cost of labor in developing countries
and it will be building stores and expand their company to become competitive in the
market.

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Need for Change at IGA Supermarket
The change means the different growth-related opportunities as the change is
one of the most important aspects in the different organizations as it allows the
different employees in learning the new skills along with exploring the different
opportunities and exercising the creativity which will benefit the organization through
new ideas along with increased commitment among the different employees that will
be beneficial in accomplishment of the company in contrast of other competitors
(Rosemann & vom Brocke, 2015).
In the case of the IGA Supermarket, it has been noticed that there has been a
performance gap as the goals and objectives of the company is not matching with the
organizational needs which are not being satisfied. The different changes in the
organizational structure are required which will be meeting the gaps and it will be
increasing the overall efficiency of the company (Rosemann & vom Brocke, 2015).
The proper identification of the technology which is more appropriate and efficient
and findings more systematic methods can be helpful in performing the tasks and
achieve competitiveness in the market which is competitive.
It has been noticed that the IGA Supermarket has been lagging behind
regarding the technical aspects and it is affecting the brand image of the company. In
such a scenario, the companies can change the technological aspects; for instance, the
way the company sell or produce different products to the customers in the market.
Such kinds of technological advancements will be increasing efficiency along with
lowering the costs and become competitive in nature. In IGA Supermarket, there is no
introduction of the self-check-out system in online purchase of the products, and

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due to the same, it is less famous house brands in comparison to the other supermarket
chains (Samuel, Found & Williams, 2015).
Due to the lack of technological innovation, the company IGA Supermarket is
lagging behind in comparison to the other competitors such as Woolworths or Aldi.
Due to the same, the market share of the company has been reduced, and it affected
the business operations negatively in the last few years (Small et al., 2016). In the 21st
century, different individuals are busy with their lives as they are working individuals
and they do not have time to visit the supermarket to purchase different products. The
grocery shopping has taken a new turn in the present scenario, and therefore, it is
required for IGA Supermarket to implement the online shopping experience for the
different customers present in the market.
There are different reasons the IGA Supermarket can operate and step on to the
virtual world and make the shopping of the customers through both online and offline
aspects. The online application of the IGA Supermarket can be beneficial for the
company to make the different products available for the customers at one place as the
online stores bring forth the best of different seasons and it is considered most
conventional techniques (Spector, 2013).
In addition, during the busy schedule of work, the individuals are not getting
time to go to the supermarkets for purchasing the different products. In such scenario,
the online application with a self-check-out system of the IGA Supermarket through
the self-check-out system can help the individuals to purchase the different products

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24*7, and the delivery is the other convenient option which will be appropriate for the
company to gain competitive advantage (Tatt & Abidin, 2016).
The self-check-out system in the online delivery option of the IGA
Supermarket will be beneficial in minimizing the complaints among the customers as
the stores send the best quality along with freshness with the help of application of
best prices which will be offered to the customers appropriately (Teal et al., 2015).
The online application can help IGA Supermarket in competing with Woolworths and
Aldi which have an online presence, and through the same, they are attracting
customers towards the different offerings which are generated by them. Woolworths
Online Application of Shopping for customers has helped them in achieving a
competitive position in the market.
IGA Supermarket can include two options for the customers by introducing the
online mobile application through which the customers can purchase the different
products as per their tastes and preferences, and there is no question for them to stand
in the queue as well (Verhulst & Lambrechts, 2015). The online application can be
used by the customers from anywhere, even while sitting at the office and it will be
appropriate for them in purchasing the products as and when required by them. There
can be the introduction of new offers along with discounts which will be suitable for
offering the customers with similar products at a lower cost and it will be
advantageous for the company to be successful.
Through the introduction of the online delivery system of purchasing grocery,
it can be identified that it will be providing the customers with options for either home

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delivery or pick option or store collection. It will make the service more convenient
and efficient as the customers often complain regarding receiving the poor-quality
food items and it affects the entire company’s brand image in a negative manner
(Whyte, Stasis & Lindkvist, 2016). However, with the introduction of the online
delivery option through the online application of the company, it will be enhancing
their reputation in the market and the reputable store such as IGA Supermarket will be
guaranteeing that the fresh products are being delivered to customers and it will be
appropriate for managing satisfaction among the customers.
Process of Change at IGA Supermarket
The change management related process is regarded as the sequence of the
different steps or the sequence of activities which the change management team or the
project leader follows in order to apply change management to the change as to drive
the individual transitions along with ensuring that the project meets the intended
outcomes. In the case of IGA Supermarket, the change management is the immediate
requirement which should be met by the management of the company to improve the
overall process for determining the attainability.
Every now and then, the different business organizations are changing the way
in which they operate along with the change in the products and services which are
being offered by them. There are different new initiatives in the organizations, and the
old ineffective practices are forced to be reduced. In addition, the technology is
changing in an effective manner constantly, and the different business organizations