H&M Case Study: Leading Change, Strategy & Operational Impacts

This report provides a comprehensive analysis of change management within H&M, a multinational clothing retailer. It begins by comparing different examples of how change impacts the organization's strategy and operations, focusing on areas like customer service, supply chain transparency, and sustainable practices. The report evaluates the ways in which internal and external drivers of change, such as customer demands, technology advancements, and supply chain pressures, affect leadership and team behavior. It also examines measures taken to minimize the negative impacts of change on organizational behavior, utilizing Lewin's change management model (Unfreeze-Change-Refreeze) as a framework. Furthermore, the report explains different barriers to change and how they influence leadership decision-making, and applies different leadership approaches to dealing with change effectively. The analysis incorporates tools like PEST analysis and SWOT analysis to provide a holistic view of H&M's change management challenges and strategies.

Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Compare different examples where impact change on organisation’s strategy and
operations....................................................................................................................................3
TASK 2............................................................................................................................................5
P2 Evaluate ways in which internal and external drivers of change affect leadership and team
behaviour.....................................................................................................................................5
P3 Measures taken to minimise negative impacts of change on organisational behaviour........7
TASK 3............................................................................................................................................9
P4 Explain different barriers for change and determine how they influence leadership
decision- making.........................................................................................................................9
TASK 4..........................................................................................................................................11
P5 Apply different leadership approaches to dealing with change...........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Understanding and leading change is one necessary process which are highly required in
every business context to led an effective development of a business process for a longer period
of time. In current point of time, change is an ongoing process, in which effective or prominent
action plan's can be taken to generate an effective outcomes in a formal business contexts or
working (Lawrence, 2015). To know better understanding of the change in an organisational
process, this report will be carry on Hennes & Mauritz which is a British multinational clothing
retail business used to be specialises in men's, women's and teenager's clothings along with
known for its quality assurance or status. This report will be carry on discussion on various
driver's of change and impact's of it in given period of time. Also, various model's will also be
discussed in order to get an effective changes from this business process.
TASK 1
P1 Compare different examples where impact change on organisation’s strategy and operations
Change is an ongoing process which pretends that business firm is implementing a kind
of an alteration into their business operation such as production, human resource regulation, staff
solution etc., to bring harmony among organisational. It was predicts that change needs a right as
well as a correct decision making to enhances outcomes of an alternation in productive manner.
In H&M, this leading clothing retailer is looking for development of their customer service more
productive along with bringing transparency among the supply chain or sustainable actions to
bring quality to their products.
This decision has been taken after testing or checking current business performances and
statutory regulations running into business regulation (Fullan, 2014). In order to measure level of
change and also its impact on business process, this will be prominent to understand or realise
drivers of change that why or what makes H&M to alter their current customer service process.
Sources of change in case of transparency is decreasing customer attention to brand and
sustainable action is to prevent products quality and assurance. The driver of the changes for
H&M are termed as high forces which are undertaken to enables glory & harmony among
business process. An analysis of a driver's of change are as follows:
Customer: An individual or groups who are made to do this noble job of buy anything or
something from organisation. Also, customer's choices or level of an attention is varying and

also they are demanding high from firms. In response, H&M is mandatory to implement some
strategies or vision behind motive to change with purpose to keep their own customer at one
place or duration. For this changes in business policies, H&M is first needs to analysis barriers of
this driver.
Technology: Technical factors such as increased way of mobile apps or regulation of an
online platform has made retail industry to module business functioning from traditional to e-
commerce regulation. For H&M, with a help of which customers may go retail clothing product
from online platform to ensure ease of choice and level of convenience in future. Also, this
driver of change is ruling business world current time and also forced other businesses to
implements it.
Supply chain: Increased potential of this process is necessary to bring transparency in
buy or distribution of the retail clothing products (Gupta, 2011). Also, effectiveness is proactive
step in supply chain or logistics to make ease of products or services to people at an affordable.
Here, changes such as transparency is required to reduce cost pumping to maintain cost under
control. Hence, this kind of driver is important to be focused or measured.
In response to this, driver's of changes has made certain impacts such as uncontrollable
changes, profit fluctuation, no control over cost or expenses regulation or technical issues. These
are simply a threat for organisational strategy or operation of the firm. These kind of changes has
led impact on H&M strategies in different manners are as follow:
Customer acquisition: Changes such as effective customer service process will put high
or positive impact of H&M to retain their customer's along with ensuring long term growth for
development of a business operations. In an initial stage, higher cost will be put to rise customer
service or its maintenances. It can also negatively affect the customer acquisition in the situation
of generate change in the prices of the company.
Process regulation: Bringing transparency in supply chain management or logistics has
puts cost to build distribution process more specific to bring ease of transferring fashion products
to customers (Hillson and Murray-Webster, 2017). This will impact's business profitability in
initial time, but will give long benefits to the H&M. If there are sudden charges are occurrence
the production process related to use of new technologies then it negative affect.
Cost & profits: Rising sustainable actions in product quality measurements will assists to
save cost and also increase profitability for a longer period of time or duration to built accurate

outcomes. These kind of changes will straightly impacts cost or profit generation ability of the
H&M. If the cost of raw material are increased then it unfavourably affect the profit and growth
of the firm.
TASK 2
P2 Evaluate ways in which internal and external drivers of change affect leadership and team
behaviour
Driver of changes are kind of a forces that has put priority to the business firm's to make
certain alteration along with development of business profit earning capacity. A change driver is
an internal or external pressure that helps to shape change to an organisation. These driver’s
helps to bring change to strategic planning, design of a products along with quality of a business
lead operations for a longer period of time. These kind of changes has led fluctuation in sharing
of an idea or opinions of a people of H&M (Harris, 2014). Also, non response of a H&M people
has led high negative impact of organisational behaviour such as leadership, team working etc.
Also, impacts of psychological contexts such as negative attitude, anger or ineffective
environment has lower down potential or motivation of the H&M employees. Before identify
and evaluate both internal & external driver of changes, this is a beneficial to identify internal or
external capabilities of the H&M firm using Pest as a major tool:
Pest analysis: This tool is basically comprises of the four constituents such as political,
economic, social and technological factors which puts impacts on driver of a changes. The above
Pest analysis is as follows:
Political: Changing political scenario in the UK such as fluctuation in government
regulation, political fluctuation has led major impact on business activity of a H&M and forces
them to bring change role in their organisation role into the functioning at an utilised point of
time.
Economic: Fluctuation in an exchange rates, inflation rates, monetary policies etc., has
put effect on H&M business process to led harmony in regulation of a business operation at a
longer time period. Proper strategic planning is necessary in this context.
Social: People buying choice has been shifted from traditional to online platform, which
is known force for H&M to lead change regulation in business functioning of the firm (Jones,

2016). Such rising social awareness of the people can be taken as danger tone for H&M to start
its own firm regulation at a productive stages.
Technological: Increase in technology in fashion retail has made people to think to move
for online buying rather that purchase traditionally. This has created major impact for H&M to
bring changes such as transforming to mobile apps, e-commerce platform etc.
Given PEST has helped to identify various drivers of changes such as internal & external.
The clear of both and how they impact's organisational behaviour are as given under:
Internal driver of change: These driver are based in an organisational internal capacities
such as capabilities, resources, invention, desire etc. (Komives, 2016). If H&M is restructuring
their organisation or new management, it is necessary for them to make strategic planning for
how they can manage resources, utilises capabilities etc., to implement above defined changes in
a productive manner. Also, here management or staff can be impact from these driver or lower
down morale of leader's or team working. Here, setting of the vision or mission is required to be
undertaken. Because, this will assist H&M to bring kind of motivation for people of H&M to
bring harmony in their overall regulation.
Sources: Internal External drivers of change, 2018
Illustration 1: Internal External drivers of change

External driver of change: These driver of changes includes customers, competitors,
investors, technology etc., are not easy to manage. Out of the all external driver of change,
competition and technology are giving forces to changes, because of rivalries of the H&M are
rising along with raised competition in retail just after e-commerce comes into the existences.
This has made H&M to hire new employee or manpower to make on business a kind of burden
for their leader's to lead from front position.
Brief summary: Management of the H&M is required to make their structure relevant
policies or regulation in relation to how changes can be overcome or managed by the HRM.
SWOT analysis of H&M
Strengths Weaknesses
 It is one of the largest international
clothing retailer.
 This organisation have about 2300
stores in more than 45 nations and
operate its business with the help of
95000 workers.
 Purchasing large volumes could lead to
overstocking and later on lead to
lowering of the already at reasonable
prices.
 This company put in a lot of capital and
maintenance fee for all the different
types of machines which have
requirement to manufacture clothes for
different target segment.
Opportunities Threats
 By making innovation in its existing
delivery services like online shopping
and others.
 By making innovation in its existing
products and pricing strategy.
 This firm operating its business
internationally so if the government
make change ion its rules and laws then
it create impact on the business of the
company.
 There are number of organisations, like
Prada, Gucci,Burberry and others

which offer various substitute products
of this firm and create high level of
competition.
P3 Measures taken to minimise negative impacts of change on organisational behaviour
H&M which is a leading fashion retail has found negative impact of changes such as lack
of allocation of resources, break down of the leadership or team working, destruction of the
communication channels etc. This negative impact's can be overcome by strategies, plan or level
of action plan to ascertain suitable outcomes to minimise negative impacts. But removal of the
negative impact to change appeals for a model or any theory which can be assist in overcoming
barriers to change purpose. In context with H&M, Lewin's model of change management will be
measure here, in order to lead an effective overcoming of negative impact of a change. Lewin's
change model is consists of three different stages named as unfreeze-Change-Refreeze. By looks
at change as a process of distinct stage, one can go for preparing a complete plan to manage the
transition. The major explanation of this model is as follows:
Unfreeze: This is a primary stages of the Lewin's change management theory which high
involves preparation of an organisation to accept that change is necessary. Key of this model is
to develop a compelling message by showing existing way of doing thing cannot be continue.
This is an easiest way to frame a correct to declining figure of the business sales or revenue. In
this, H&M is required to analyse or understand that change is necessary with response to make
proper outcomes in order to accomplish defined goals or targets to led business development of
this leading clothing retailer. With help of this, H&M management or leader's can bring
motivation or level of confidence to realise potential of their employee's in order to bring back
their performance as well as overcoming negative impacts of a changes.
Changes: This is the second stage of Lewin's model of change management which is also
regarded as stage of transition or an actual implementation of change. This involves a level of a
acceptance for the new ways of doing things. Also, this is a stage, in which people are unfrozen
and then actual is used to be made. During this stage, H&M needs to make careful planning, an
effective communication and also a kind of encouragements or involvement of an individual for
endorsements of the change which is necessary (Ibidapo, 2015). With help of this stage, H&M

may go for clear assessment of how changes such as role of an effective leadership, proper
management along with creating scenario for a moral work based regulation.
Refreeze: This is the last stage of Lewin's change model, in which people moves from
stage of transition to the much more stable situation, which is known as the equilibrium state of
change management. In this last stage, in which people accept or internalise a perfect or innovate
way of working or change management. This is highly necessary to led development of the
strategies in order to enhance long term working along with establishing a kind of support to
business or rewards to make business process working towards one major purpose to build long
term growth of the business functioning at a larger side.
Sources: Lewin's model of change management, 2018
To overcome negative impact's to the H&M, Lewin's change management model can be
implemented in three ways:
 Changing the behaviour, attitudes, skills of an individuals working in an organisation,
 Alteration of an existing organisational structures, system and also processes,
 Major alteration in an organisation climate, culture and interpersonal styles.
Illustration 2: Lewin's model of change management

TASK 3
P4 Explain different barriers for change and determine how they influence leadership decision-
making
In context with H&M, there are different barriers of change which are running in this
leading retail businesses are as follows:
Ineffective Communication: The main element for the success of the H&M is effective
communication, but on same path, poor communication may leads to the issues like conflicts,
level of the dissatisfaction among employees and led negative impact on the leader's decision
making (Fragouli, 2017). It may affects H&M manager's as they would find difficult to
implement an effective and level of productive decision making. While, it was noted that change
majorly faces resistant and to H&M managers strive to help their employees by engaging those
employees who opposed to change which create positivity among them towards change. If there
are lack of communication among managers and employees then it will influence the decision
making of the leadership. The employees will not share their issues and problems with them and
it create unfavourable impact on the business activities of the firm.
Lack of Accurate Governance for Transformational Change: The improper structure or
level of a business administration has led the barrier's to generates transformational change i.e.,
which is a continuous process of change which majorly represents a big fundamental shift in
their business priorities, strategies and working culture of an organisation. This is necessary for
H&M to promote corporate social responsibility in their business practices to bring sources of an
corporate working in a business processes for a longer period of time. In context with H&M,
governance will also be undertaken to bring harmony in the business regulation for a productive
time duration.
These barrier's to change will be measured or overcome by use of the force field analysis
which involves two major things such as driving and restraining changes. Along with this, model
will assist to identify or examine challenges to assist H&M in making a business growth based
decision making (Doppelt, 2017). It is considered as an important tool for making an effective
decision making by doing an analysis the forces for and against a change as well as
communicates a major reason behind changes.
Force field analysis is majorly classified into two categories such as driving forces and
against restraining forces. In order to occur to change, the driving level of forces must exceed the

restraining of the forces into the productive manner or ways. The stages of the force field
analysis is as follows:
Describe the plan: H&M which is one of a leading fashion retailer's must have their
focus on describing a plan on how changes can be made along with what measures such as action
plan, implementing vision and restructuring of the strategic objectives (Anderson, 2016). This
level of planning will assist H&M to increase major profitability with support of strategic
implementation or level of a planning.
Identify forces for changes: Given driving forces for changes are as follows:
Sources: Force field model, 2018
Driving forces for the H&M: These involves forces such as level of new technology in which
any kind of forces or up-gradation in important to bring a sense of operation development with
purpose to bring an effective business process of the H&M. Along with this, regulation of an
Illustration 3: Force field model

effective CRM can be forceful forces that is important to bring an effective changes in the
business operation's for a productive period of time. If this will be done with technology that
would be more profitable for H&M to raise maximum profits making.
Restraining forces for a H&M: These type of forces generally applied in case of innovative kind
of changes to increase business profitability and business operation's at a greater or utilised stage
of the business performances (Gill, 2017). These forces involves such as cost, lack of an
employee's level of an involvements etc. These forces are need to be if H&M has backup
strategic implementation, so as to brings a role of an effective into the purpose or acquiring long
term business goals. In this context, proper evaluation is necessary to take of these forces to
implements an action plan.
TASK 4
P5 Apply different leadership approaches to dealing with change
Within a changing business environment, role of a leader is the most crucial aspects for
entity as well as the workforce. The success of organisational change is largely dependent upon
the approaches and behavioural conduct of leader in relation to any kind of issue. In this regard,
to feasibly bring about changes within H&M, there are several leadership approaches which
leader within the organisation may adopt and these are described below:-
Autocratic: Also known as authoritarian leadership, here, within this approach, only the
leader within H&M is responsible for deriving the desirable outcomes of company (NHS
England, 2016) This owes to the fact that in this approach, leader possesses all of the rights
reserved to take decisions and it is rarely seen that leader takes advice or suggestion from any
individual.
Laissez Faire: This approach is also known as delegate style of leadership. Here, in this
leadership approach, leader of H&M release the power possessed by him in context of the
organisation to other individuals and give them the authority to take necessary decisions. This
approach is usually found to work within a team which has highly skilful and competent
individuals who possess the capability as well as potential to take effective decisions for the
betterment of organisation.
Participative: This is also regarded as democratic leadership. Here, the leader within
H&M invites initiative from all the employees of company to take part in the process of decision

making. In this approach, leader renders opportunities to personnel so that they can communicate
and give suggestions or feedback.
Kurt Lewin's change model- This model is developed by Kurt Lewin's and it consists three
steps like; unfreezing, changing and refreezing. This model basically explained or provide
understanding the change process. Three steps of this change model is as following:
Unfreeze- it is the first step, it indicates that change occurred due to habits and routine. In
this organisation, tasks and works which are not relevant or useful any more are still being
performed by the force of habit. In H&M, the changes are occurred due to basic needs and habits
of its target audience.
Changing-It is another step of change model, under which it consist when the team
members have opened up their minds and use effective ideas and thoughts then change an start.
under this, a change process has to b e viewed as an investment, both in terms of time and
allocation of resources. If there are changes occurred in the needs and wants of the customers
then the organisation also make changes in their production process.
Freezing- It is the last step and it define that once a firm changes have made and the
structure has regained its effectiveness and the efforts must be made to cement them. In H&M, to
ensure that all the workers are striking with the new methodologies to help both enforce and
scale new process.

CONCLUSION
From the above report, it is concluded that leading change is an elements of making best
and suitable alternations in a business process of a business to make it more and highly suitable
to accomplish business tasks or goals. Driver of changes has led a kind of forces on business firm
to make certain valuable changes in business operation on a greater segment or an area. Lastly, it
has been proved competitive to build a scenario for an effective performance for business firm
to render gross productive outcomes for a business firm at a longer period of time.

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