Strategy, Leadership, and Change Management in International Business

This report delves into the critical aspects of change management within the context of international business, exploring the pivotal roles of leadership and strategic planning. It begins with a literature review, examining various authors' perspectives on how leadership qualities, employee involvement, creative thinking, and training contribute to successful change management. The report then presents a case study on Marks & Spencer, a British multinational retailer, analyzing its challenges in re-establishing its clothing sector within the UK market. The case study highlights issues such as disconnection with branding, customer dissatisfaction, and the impact of online retail. The report also offers recommendations for managers to implement effective change management strategies, including the importance of communication, collaborative working, and strategic approaches like mergers. The report concludes by summarizing the key findings and emphasizing the importance of adapting to changes in the global market.

Strategy, Leadership and
Change Management in
International Business

TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................3
LITERATURE REVIEW................................................................................................................3
CASE STUDY.................................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

ABSTRACT
This assignment is about change management. Change management is the process of
managing changes for the improvement in work performance to increase the profitability and
productivity of organisation. Change management involves the process of identification,
planning and implementation. Problems identification is main step of change management where
all employees' involvement is required. This assignment includes a literature view on “ can
strategy and leadership impact change management on international basis”. Different authors
views are presented in this literature review. One author states about creative thinking skills of
employees in which they discuss about the ideas' formation. To give ideas regarding solutions of
problem needs creative thinking skills. Training factor is also analysed in this assignment which
stated about that training improve work performance and helps to win competitive environment.
This assignment includes a case study on Marks & Spencer organisation which operates
globally. Marks & Spencer is a British multinational retailer company which provides service of
clothing, food products and home products. In this case study, a challenge is discussed in which
M & S faces problems. M & S faces challenge of re- establishing clothing stores in UK.
This assignment also incudes recommendations for managers to bring changes in
organisation. This recommendation involves the overall step procedure of change management
which will be helpful for organisation to deal with problems and solutions. At last, this
assignment includes a conclusion in which overall study has been summarised and lead to a
conclusion for organisation to bring changes.
LITERATURE REVIEW
According to Lozano, Nummert and Ceuleman (2016) leaders are more responsible for
change management. Leaders have the authorities of bringing change in organisation.
Organisation which operates on international basis require regular changes for improvement in
their work process. Leaders are responsible in their leadership qualities to make a decision in
welfare of organisation for increasing market share across boundaries. Leaders have a duty of
effective interaction with their team members so that sharing of information take place which
helps managers to make decisions easily. Team that is chosen by managers of a company plays
an important role in bringing changes. Strategies that are made by managers are need to be
followed by team members for achieving business goals and objectives. Leaders are not only
strategy people but an important part of a business for its growth. If initiation step is taken by

managers, then their responsibility is to take feedback after implementing changes to know the
effectiveness of strategies. Feedback gives information regarding the weaker areas and helps to
make more strategies against those weaker areas. It helps in boosting morale of company to
increase their distribution network to more countries.
On the other hand Booth (2015) presented view on leader's role to involve every layer in
organisation. Here, every layer represents the each employee form low level to top level.
Leaders have the responsibility to take every employee in its change management process.
Sometimes, strategic planning also fails due to non involvement of mid and front line employees.
Front employees have more knowledge and included in top list of organisation so, to involve
them in change management will be beneficial for organisation to operate on international basis.
If employees are loaded at entry level, it will be beneficial to make more positive outcomes and
issues will be solved at initial level. More people involved in change process, faster will be the
process and result will generation soon. Suggestions are given by team members to leaders for
more improvement in work process. An instant response is taken by leader through step of
involvement of all mid, low and front line employees.
As per view of Cox (2016) for bringing changes, creative thinking is required. For
making strategies, a proper planning is done by collective information first from every sector.
Behavioural change between team members impact on change management and will result in
negative sense. Behaviour of very employee is recorded which helps to make decisions for
leaders. According to behavioural change, specialisation of employee is noted and training is
provided accordingly. Proper training to employees is a strategy of company to bring changes for
working on international basis. To handle market on international basis require proper
knowledge which is to improved through training process. Training is the process of
improvement only. Changes are done for improvement. So, training and changes are interrelated.
Proper training increase creative thinking skills and helps to make new ideas for bringing
changes to improve work performance to operate on international market. To win competition
against other favourable brands need good strategies and proper implementation. So, training is
very important part of job to have a competitive advantage by implementing changes in efficient
manner. Competition is a risk factor for organisation to increase their marketing network and to
win the trust of customers toward their product or services.

Carasco-Saul, Kim (2015) noted that communication is very important for operating
international business. For collecting information regarding weaker areas need healthier
discussion between headquartered and other branches in different countries. Mass
communication can be held by using channels like email, memos, newsletters. This mass
communication is efficient for bringing regular changes. Face to face communication will clear
queries and lead to more positive outcome. Immediate questioning and answering will be held in
face to face communication and enables employees to receive information in efficient and
effective way. This consumes time but more productive. Information sessions are also effective
communication channel in which different people from different countries participate and have a
discussion about the services that they are offering to consumers. Communication strategy will
let to know the important messages that are missing from leaders view. But, it is necessary to
have an honest communication to highlight the weaker points where organisation is lacking.
Social media is one of the most effective communication channel where current news are
highlighted in the form of stories. These stories will help organisation to know the information
regarding competitive strategies that other brands are using. It will result in effective way to
bring changes and for improvement in marketing network across boundaries.
According to Meissner (2015) identifying business problems by collaborative working
gives more efficient results rather than individual working. Democratic leadership styles has
been chosen the best style for managing changes in organisation globally. Democratic leadership
style focus on joint working and lead to involvement of all team members. Bur team members
that are hired should be skilled, talented and experienced one to give suggestions in their
respective field. Effective communication is also a part of this leadership style. Important
question arises in mind of leaders to identify business problems. This require deep analysis of
previous work done by employees to achieve objectives. Involvement of all employees as a joint
team gives an efficient database for leaders to reach to a decision. This can be related to profit
margin to be increased or decreasing to have expansion in marketing network or to winning the
competitive advantage. Employees who are facing problems gives appropriate solution for this
because they have more experienced in their respective fields. But having a collaborative
discussion will give assurance to leaders for changes that are to be made. Later, leaders can
check the effectiveness and commitment of employees towards the changes to provide goods and
services globally.

Petrou, Demerouti and Schaufeli (2018) stated that mergers will be a good strategy for
business that are operating globally. Merger is a basic joint venture between companies for
expanding their network. Its better to have a merger than opening a new branch in another city of
another country. For example, if H & M company wants to expand its network to developing
countries like India then, it can have merger with Indian Country like Biba. It will be beneficial
for both H & M and Biba to have expansion globally. H & M will have marketing network in
India in all branches of Biba showroom. And also for Biba, a chance is made to operate globally.
Hence, merger is categorises as effective change strategies to increase profitability. This also
makes them one of the top class brands because of their merger in investment cost. This makes
profit for company to save from investment cost to establish a new business or new infrastructure
to expand network globally. But this require more democratic strategies to have merger with
good company which will be beneficial. This all depends on leadership qualities of managers to
identify the effectiveness of merger before implementing. A proper analysis and deep
researching is needed and it is to be done legally by having a proper agreement signed in
presence of government officials.
Project management is the key approach Bradley (2016) to change management. Project
management deals with existing and new projects in organisation. Project management have
special team of managers and employees in which they research about current trend and new
strategies. Team members are experienced one in handling projects from initial level to final
level. It impacts change management in those organisations which operate globally because
project management deals with competitive environment for tendering new projects to their
organisation. New projects lead to more profitability and more productivity. It's not about only
bringing new projects but also managing existing projects. It exercised the work in clear and
coordinating track where so many activities held. An assurance is made in project management
team for completion of project within scheduled time by having proper interaction with other
service departments. A good planning is required to reach to completion level on time for
increasing market share worldwide. It maintains continuous progress of organisation. Good
project management in existing projects will require fewer efforts in handling new projects
because experience has worth price.

CASE STUDY
Marks & Spencer is British Multinational retailer company in which it provides services
of clothes, food products and home products. In September 2015 Steve Rowe is selected as the
head of fashion sector in Marks & Spencer. But then also, if faces some challenges in clothing
sector which are described below:
 It has been reported in 2016 that sale of clothing is not as much as efficient as food
products in 2015. There is a disconnection between M & S clothing and its branding.
Core customers and suppliers are oversupplied with cloth items and this also do not
making a profit because of low position in competitive market. Customers were loosing
interest in buying women wear clothes as they are being commented as old fashioned and
not providing good service to customers like for solving their queries and to make them
satisfied. Heads of M & S making efforts to revamping selling of clothes. As time is
releasing, it was becoming a challenge for the head of M & S. due to this, they cut the
price of approximately 3.5 million items of clothes which makes a huge loss for M & S.
then, they plan to re-establish their price after some time to make profitability. They are
also hired more employees for their stores to bring effective quality customers and to
make them satisfied accordingly.
 In September 2015, m & S started online retailing of clothes. Before clothing and home
products has a sale in which it fell 1.9% in approximate three months time. In first six
months of 2015, M & S make a profit of increased 2.6%. Therefore, it can be analysed
during online marketing, it made more profit. It makes customers to turn from offline
stores to online store. Due to online facilities, M & S closes approx 12 stores in UK and
all Balkan region stores. This makes a loss of £27.6 million (Grant, 2016).
 After closing so many stores in UK, it made a question on M & S about the quality of
clothes. Previous head person Bolland answered by saying that closing stores is an
industry issue not a quality issue. Public has assumed that due to less profit margin, M &
S reduced the quality of cloths and due to fewer selling, they closed the stores. But this is
not true (Waddock and et.al., 2015). Bolland has also added a point by saying that M & S
is ready to work with third party by considering collaboration of celebrity designer.
 Then again on Christmas that year 2015, it has been reported then sales of both clothing
and home products fell by 5.8% for about 13 weeks up to approx 27 December. Reasons

are investigated by news reporters and it has been analysed that this is not due to quality
or trust among public. This is due to an issue which occurred at castle Donington
distribution centre at which they are forced to distribute or deliver the products next day
on Christmas occasion due to which previous products do not get delivered on time and
they take 10 days to deliver so that customer face problems in having service from M &
S. This issue suspended Bolland from M & S and replaced by Steve Rowe.
 This challenge of re-establishing retail stores of M & S in UK has impact on its business
culture and included in list of customer questioned. This becomes too typical for M & S
to satisfy customers by giving clear answers to them and with attachments proof. Issue
that was generated on occasion time of Christmas lead to so much loss for M & S and
also lose trust towards customers (Imran and et.al., 2016). Then again they have to take a
step to re- establishing stores and becomes again a challenging task for Steve Rowe.
RECOMMENDATIONS
It has been recommended for managers that adopting democratic leadership style in
organisation will lead to more market share. For operating globally, it is necessary to have
sharing of information in effective manner. Identifying problems is the first step of change
management. Take initiation step for mangers is challenging task and to have positive outcomes,
democratic leadership style will be more beneficial. It suggests having collaborative working
nature in organisation. Collaborative working will analyse problems in every sector in every city
of every country. Operating globally is not an easy task. It is like a joint venture where all
different branches have own their own target. To achieve those targets, individual person can
make their own strategies but all branches have same strategy and works on same principle.
Democratic leadership style improve leadership qualities in managers and suggested them to
have involvement of every layer of organisation.
It is beneficial to have feedback from those employees who are facing problems because
managers are responsible to make changes but work is done by lower level employees and
organisation profit is because of employee's work. After identifying problems, its step to make
strategies against problems. This is a planning process which require healthy discussions
between employees. Individual people uses their creative skills to give ideas to solve problems in
less time. Employees who are facing problems are best recommended asking solutions. It is also

beneficial to those employees who are facing problems in achieving business objectives to have
an exclusive training in their respective field. Training improves their will performance and will
indirectly lead to growth of organisation.
Communication skills of employees should be effective and efficient because for every
work process, interaction is must and will be worth full by having attractive interaction. Last step
is to implement changes which again needs involvement of all employees to make changes
efficient. Some employees do not support changes but this is the responsibility of mangers to
make them interested in implementing changes. It is also recommended that managing projects
will require active participation who take feedback from every country managers about issues
and solutions. This process will take organisation to top level and included in list of favourable
brands worldwide.
CONCLUSION
Above study summarised about the factors which influence change management in
organisation that operates globally. A literature review has been discussed in which different
authors views are presented on change management. It has been analysed that managers should
have good leadership qualities because managing changes require instant decision making
process. This requires involvement of every team members and to identify their problems and by
healthy discussion reach to a conclusion. Conclusion should be in favour of every team member.
It had been outlined that every team member participation is necessary and this is the
responsibilities of managers to make every individual satisfied.
Change management will motivate employees to improve their work performance.
Changes can be related to time, training, work schedule or process, changes in aims and
objectives. This all be in term of organisation growth. Managers have the responsibility of
employees as well as organisation they have to think for both of them. Employees do not feel
stresses and give positive outcome in favour of organisation. This becomes challenging task for
managers to manage both of them.
Merger was analysed a solution for change managers to increase profitability and
productivity of organisation. It's not possible for every organisation to establish new
infrastructure in other country. It required huge investment. So, to overcome from this, merger
realised to be the best option for expanding network globally. It gives profit to both organisation

which involved in merger. Competition is increasing more and more. So, to have competitive
advantage, managers need to plan strategies against other brands.
A case study has been summarised about Marks & Spencer organisation in which it faced
a problem of marketing in clothing stores. M & S loses trust in public and being questioned
about quality. So its become typical task for any organisation to answer such questions and to
regain the same image. This consumes time to stand in saBradley, G., 2016me market and same
profitability. Collaborative working lead to overcome from such issues and also result in positive
outcome. Hence, it can be concluded that both strategies and leadership has a great impact on
change management.

REFERENCES
Books and Journals
Booth, S.A., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Bradley, G., 2016. Benefit Realisation Management: A practical guide to achieving benefits
through change. Routledge.
Carasco-Saul, M., Kim, W. and Kim, T., 2015. Leadership and employee engagement: Proposing
research agendas through a review of literature. Human Resource Development
Review. 14(1). pp.38-63.
Cox, J.A., 2016. Leadership and management roles: Challenges and success strategies. AORN
journal. 104(2). pp.154-160.
Haines, S., 2016. The systems thinking approach to strategic planning and management. CRC
Press.
Imran, M.K. and et.al., 2016. What’s organization knowledge management strategy for
successful change implementation?. Journal of Organizational Change
Management. 29(7). pp.1097-1117.
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between
sustainability reporting and organisational change management for
sustainability. Journal of cleaner production. 125. pp.168-188.
Meissner, W. and et.al., 2015. Improving the management of post-operative acute pain: priorities
for change. Current medical research and opinion. 31(11). pp.2131-2143.
Morden, T., 2016. Equality, Diversity and Opportunity Management: Costs, Strategies and
Leadership. Routledge.
Petrou, P., Demerouti, E. and Schaufeli, W.B., 2018. Crafting the change: The role of employee
job crafting behaviors for successful organizational change. Journal of
Management. 44(5). pp.1766-1792.
Schridde, H., 2019. Change Management. Handbuch zur Verwaltungsreform. pp.1-13.
Waddock, S. and et.al., 2015. The complexity of wicked problems in large scale change. Journal
of Organizational Change Management. 28(6). pp.993-1012.
Online
Deanne Aguirre. 2014. 10 Principles of Leading Change Management. [Online]. Available
through. <https://www.strategy-business.com/article/00255?gko=6c601>.
Grant. 2016. Marks and Spencer – Facing the Challenges Ahead. [Online]. Available through.
<https://www.koganpage.com/article/marks-and-spencer-facing-the-challenges-ahead>.