Change Management Strategies and Analysis for Luxify Company Report

This report provides a comprehensive analysis of change management strategies within Luxify, an online marketplace for luxury goods. It begins with an overview of the company and analyzes its business environment using PESTLE and Porter's Five Forces models to identify opportunities and threats. The report then examines the impact of change on the organization's strategy and operations, utilizing a TOWS matrix to develop strategic alternatives. Furthermore, it evaluates the effects of change on leadership, individual, and team behavior through a Force Field Analysis, and proposes measures to minimize negative impacts, including the application of Kotter's 8-Step Model. The analysis includes a discussion of various change management models and theories, such as Lewin's Change Model, along with an assessment of different leadership styles and their effectiveness in managing change. The study culminates in recommendations for implementing effective change within Luxify, supported by relevant academic references.

Running head: Change Management
Change Management
Name of the Student:
Name of the University:
Author’s note:

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Overview of the Company...........................................................................................................3
PESTLE Analysis........................................................................................................................4
Porter’s Five Force Model...........................................................................................................5
Opportunities...........................................................................................................................6
Threats.....................................................................................................................................6
Impact of Change and Effects on the Organization’s Strategy and Operations..........................7
Impact on Leadership, Individual and Team Behavior...............................................................8
Field Force Analysis................................................................................................................8
Table2: Field Force Analysis...................................................................................................9
Measures to minimize the Negative impacts of Change...........................................................10
Mendelow’s Power Interest Grid...........................................................................................10
Finding of Force Field Analysis............................................................................................11
Kotter’s 8 Steps Model..........................................................................................................11
Models and Theories of Change Management..........................................................................13
Lewin’s Change Model..........................................................................................................13
Forces of Change and Relevant Leadership Style.....................................................................15
Effectiveness of Different Leadership in Change Management................................................15

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Situational Leadership Style..................................................................................................16
Transformational Leadership.................................................................................................17
Implementation of Model for Effective Change........................................................................18
Reference and Bibliography..........................................................................................................19

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Introduction
In the era of globalization and technological advancement the industries aims at coping
up with the current trends and economy. The global economy has become competitive and
organizations must understand the need and importance of change within the organization.
There are different types of change molded in the organizations such as technological changes,
strategic changes, and changes in product development, organizational structure and business
models. The change depends upon many factors such as external environment (competitors,
demands and supply, expansion and many more. The internal environment such as to bring
efficiency in work process through introduction of advanced technology, infrastructure, mass
hiring and layoff. The current paper focuses on depicting the impact of change in Luxify
Company of Hong Kong (Cameron and Green 2019). The study aims at analyzing, how the
changes affect the behavior within the business and certain measures are reflected in order to
maximize the benefits and minimize the negative impact of change. This above statement is
supported by relevant theories of change management. At last a relevant conclusion is drawn
according to the above analysis and study.
Discussion
Overview of the Company
The company Luxify is an online marketplace which deals with providing luxury and
vintage goods to the customers. The company is basically a Hong-Kong based company founded
in the year 2013 by Florian Martigny and Alexis Zirah. Luxify has been noted as one of the most
promising luxury business in Hong-Kong. The company aims at creating global marketplace by
bringing change in the organization such as incorporating online resources by releasing new
applications and expanding its business in the global market.

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Analysis of Business Environment
Analyzing the business environment helps to identify the key drivers which led change in the
organization. In order to analyze the business environment PESTLE and Five Force Analysis is
used.
PESTLE Analysis
Political: The political factors determines the political stability of a particular region. In
Hong-Kong, when the business deals with luxury market the political regulations and policies
such as consumption tax, import VAT, custom day. Custom, despite of failing international tariff
rates, the luxury goods will remain subjected to high custom suites (Chen, Zhiyon and Li 2019).
Hong-Kong maintain high level of autonomy from China but however, not independent of
Chinese policies. Therefore international trading is difficult for Hong-Kong.
Economic Factors: Hong-Kong is rated as the 10th largest trading power and the third
largest financial center. Moreover Hong-Kong is well-known for its liberal economies. In 2018,
its GDP growth is 3.8%, in 2019 the range was from 2.9% to 3.8%. People of Hong-Kong are
focusing on cost-cutting measures. The economic fluctuations are observed since the recessions
are affecting the business. This recessions are affecting the local and global business. This is a
good start for e-commerce business in Hong-Kong.
Social Factors: The changing trends of business and convenience factor for of people has
changed the way of business operations. There was a time when people used to go for outdoor
shopping but now their things are available at their door step. Therefore growing technological
advances when combined with customer buying behavior. The companies’ aims at brining

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effective change in their business such as providing more sophisticated products and ways of
purchasing. These are the cultural factors which drives change in the organization.
Technological: The technological advances has fostered business operations in a whole
new level. Due to the technological factors there is huge competition in the market and this
drives change in the organizations (Grant 2016). New systems and software are highly used
within the organization.
Environment Factors: The environmental factors such as sustainability is a driver for
bringing effective change in the organization such as to adhere business ethics and corporate
social responsibility.
Legal: The legal compliances and laws such as support for parliament, imports, exports,
resources and taxation policies. When the founders of Luxify went in search of luxury items,
they did not find any proper place for luxury products. This means they were no adequate
resources for luxury products in Hong-Kong.
Porter’s Five Force Model
Threats of New Entrants: There has strong force on threat for new entrant as there are
other customized retail market place for luxury items in Hong-Kong and the market may grew
with more retail shops.
Threat of Substitution: The threat for substitution has strong force, because luxury
products are worn occasionally and are not seasonal accessories (Perera 2017). Therefore,
customers might be less attracted towards the luxury products all the time.
Negotiating Power of Buyers: The negotiating power of buyers has strong force as well.
As the price of luxury products are high and people tend to spend less and save more. It will be

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irrational to spend too much on luxury items. Moreover, the customers seeks for offers and
discounts in products and make deals with cheapest products. The organizations will have to
make changes which would profit both sides to the customers and the business.
Negotiating Power of the Suppliers: The negotiating power of the supplier has weak force
and does not contribute much as a change driver.
Rivalry from existing competitors: There exist a weak force from existing competitors as
there are very less traders of luxury goods in Hong-Kong and the price of the luxury goods
applies premium strategy.
Opportunities
From the above analysis and strategies the following opportunities and threats has been
observed:
 Due to changing customer preference and taste and their purchasing behavior, the
company Luxify is incorporating change in the organization.
 The technological advances such as systems and software helps the organization to
incorporate change in the organization.
 Due to lack of resource in that particular area, the business aims at making productive
changes within the business. Therefore it is a good opportunity for the business to fulfill
the demands and needs of that particular area.
Threats
Due to growing competition in the market, the organization drives change within the business
operations. This helps the business to gain competitive advantage and gain immense profit from
the business.

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Impact of Change and Effects on the Organization’s Strategy and Operations
TOWS Strategic Alternative Matrix
External (Opportunities)
Low- cost due to less number
of supplier intermediaries.
Reduced market cost.
Additional channels to
market.
It provides opportunity to
expand its business for
overseas sale.
Provides opportunities for
new trading partnership and
suppliers.
It gains trust from the
customers since, the online
market place provides
transparency regarding prices
and availability.
External Threats
Restrictive terms and
conditions from the political
and legal environment.
Competition from other
brands.
Ineffectiveness of the change
occurred in the business.
The marketplace can charge
commission.
The sellers are the customer
might sell duplicate items
and the company might be a
victim of fraud.
Internal Strength
The business has complete
control over the inventory.
The customer itself are the
sellers and buyers. Hence, the
cost of the products will be
less and the same can be
furnished to sell in a higher
price.
Increased productivity and
company reputation.
The online market place
would be easy accessibility to
the customers and therefore,
customer loyalty can be
attained.
There are no other online
marketplace which provide
secondary luxury goods in
affordable price.
“Maxi-Maxi” (S-O)
As the business has complete
control over the inventories,
the cost of the goods will be
low as well.
Due to increased productivity
and company reputation, the
company has the opportunity
to expand its business
globally.
‘Maxi-Mini” Strategy (S-T)
Since there are no other
online marketplace which
provide secondary luxury
goods in affordable price,
there is relaxation from local
competitors.
Due to enhanced company
reputation, the marketplace
might charge less for the
business.
Internal (Weakness) “Mini-Max” Strategy (W-
O)
“Mini-Mini” Strategy (W-
T)

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The online marketplace lacks
value of proposition.
Customers might be reluctant
to buy luxury products
through online.
The transportation cost might
increase according to the
international trading policies.
The number of potential
buyers who buy through
online in Hong-Kong are
comparably less.
The cost of suppliers for the
products is less and therefore,
the transportation cost could
be managed.
Due to its affordable prize,
the number of potential
customers would buy through
online.
The business needs to
promote effective
advertisement and promotion
about the new change
incorporated in the company.
Good deal with the suppliers.
Evaluate and cross-checking
the products sold to the
business by the customers.
Table1: TOWS
(Source: Author)
Change Proposal in the Organization
The organization aims at incorporating change in the working process of the business,
such as making the business an online market place where customers can sell and buy luxury
products. The above opportunities mentioned helps the organization to drive change in the
organization, the due growing demands of customers and growing competition in the market.
Initiating online marketplace in Luxify, where people can buy and sell luxury products would
provide the business better opportunities to expand in the global market and generate profit from
the business.
Impact on Leadership, Individual and Team Behavior
Field Force Analysis
The force field analysis is an approach which helps to identify, discuss and document the
factors that either support or oppose an initiation for change.
Force for
Change
Score (10) Change
Proposal
Forces against
change
Score (10)

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Initiating online
marketplace in
the business
where people
can buy and sell
luxury goods.
Limited luxury
products in the
market.
8 Increased cost of
the business.
8
High cost of the
available luxury
products.
9 Lack of value
proposition.
6
Business
expansion in the
global market.
10 Ineffectiveness
of the proposed
change.
6
To gain
competitive
advantage in the
market.
7 Increase in
customer
reluctance due to
online shopping.
7
Technological
advancement
8
Total 42 Total 27
Table2: Field Force Analysis
(Source: Author)
According to the force-field analysis, it is observed that according to the factors such as
limited resources, high cost, business expansion, to gain competitive advantage and
technological advances influences leadership decision-making. The management analyzes the
factors which influence change and the barriers for change in the organization. The technological
advances has made easier than tradition marketing (Abushova, Burova and Suloeva 2016).
Moreover, when there are limited resources and customers are in search for luxury products in
the region, it is a good opportunity for the business to provide luxury products online. In addition
to this, this initiative of change would provide the business to get achieve global recognition.
Apart from the forces against the change that is increased cost, ineffectiveness and customer
loyalty the management would effectively implement the change within the organization. Since,
the company’ strengths and opportunities will help to overcome the obstacles in the marker.
Therefore, the management of the business aims at making effective change in the business
operations to gain profitability and productivity.

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The organizational objective of Luxify is to become the world’s leading online marketplace for
luxury goods. The changes incorporated within the business would help the company to achieve
its organizational goals.
While incorporating change each and every individual is accountable to undertake their
responsibility such as the project manager, operational manager plays a huge role in effectively
carrying out the change. The project manager is responsible to allocate resources and assign
work to their team members. In the same way the operational manager of the business is
responsible for the funding and cost of the proposed change. During the change, the whole
organization needs to work as a team such as there will be sales team, technical team, marketing
team who needs to work in a collaborative manner within the organization to effectively
implement the change.
Measures to minimize the Negative impacts of Change
Mendelow’s Power Interest Grid
In order to minimize the negative impact of the change the key stakeholders are identified
through stakeholder analysis is done by Mendelow’s Power Interest Grid.
Figure1: Mendelow’s Power Interest Grid

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(Source: Munywoki 2019)
The customers, sponsor and regulators are the stakeholders whose level of power is high
and has to be satisfied through proposed change of business. During the change the executives
and supervisors decisions needs to be managed (Sotiriadis 2018). The employees and trainer
needs to be informed about the changes and they needs to provide information as well to the
higher authority about the progress of change. Continuous monitoring is required especially to
the people working in help desk, sales team and system admin.
Finding of Force Field Analysis
The management analyzes the factors which influence change and the barriers for change
in the organization. The technological advances has made easier than tradition marketing.
Moreover, when there are limited resources and customers are in search for luxury products in
the region, it is a good opportunity for the business to provide luxury products online (Cameron
and Green 2019). In addition to this, this initiative of change would provide the business to get
achieve global recognition.
Kotter’s 8 Steps Model
Step1: Creating an Urgency
If the organization does not incorporate new technological advances and advanced way of
working operation. The business might lose its reputation and brand recognition. Furthermore, if
the organization does not incorporate change, the business might lack in gaining competitive
advantage.
Step2: Creating Coalition