Leadership and Change Management: Burberry Case Study Report

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This report provides a comprehensive analysis of leading change within an organizational context, using Burberry as a case study. It begins by illustrating organizational changes and their impact on schemes and operations, comparing Burberry with Marks & Spencer, and examining environmental and political factors. The report then delves into the mechanisms of organizational change, differentiating between remedial and transformational changes. It emphasizes the importance of internal and external drivers, such as financial management and resource allocation, and their impact on leadership, individual, and team behavior. Recommendations for designing change effectively are provided, including risk analysis and employee engagement. The report also addresses barriers to change and their effect on leaders' decision-making, utilizing force field analysis to study driving and resisting forces. Finally, it explores various leadership formulations to deal with change, measuring their effectiveness in the organizational context. The report concludes with a summary of findings and recommendations for effective change management.
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Understanding and
Leading Change
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Various organizational illustration to show outcome of modification on organisational
scheme and operation.............................................................................................................3
M1.Mechanism for alteration in all illustration and form of organizational alteration they
affected...................................................................................................................................6
D1. Reason and recommendations with legal confirmation for designing change effectively7
TASK 2............................................................................................................................................7
P2. Various internal or outer mechanism of modification impacting leadership, individual and
team behavior.........................................................................................................................7
P3 .Measures to minimize counter impact of alteration on organizational action...............10
M2 .Proper explanation and models to appraise organizational consequence to alteration. 11
TASK3...........................................................................................................................................11
P4. Obstacle to alteration and their determinant on leaders decision making......................11
M3. Exercise force field investigation to study the impulsive and resisting forces and display
how they cause decision-making..........................................................................................14
D2 .Critically measure the utilisation of force field analysis in gathering organisational
objectives..............................................................................................................................14
TASK 4..........................................................................................................................................14
P5. Utilize various leadership formulation to deal with the modification in the range of
organizational context..........................................................................................................14
D3.Measure effectivity of leading formulation and theory of modification management...16
CONCLUSION..............................................................................................................................17
REFERENCES................................................................................................................................1
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INTRODUCTION
Change is the only concept which is invariable and permanent. Every organisation
focuses on the undergoing concept of change as this would support them to achieve competitive
advantage over their competitors. The concept of managing change is termed to be the wider
idea. As this will assist them in handling the modification that occurs in the administration
regarding, their objectives, vision, mission and goals. Main purpose behind the implementation
of alteration is that to develop the plan of action which assist in hard-hitting judgement making
procedure of the organisation. This assignment has been prepared considering the organisation
Burberry which is well known brand deals in the supplying the luxurious apparels, accessories
and cosmetics products. The company was formed in the year of 1856 in London. The current
framework is based on the effect or causes of changes in the organisational activities. Along with
it , it also focuses on the drivers such as internal and external which have impacted the
association. Various barriers of alteration and the mode in which they impact leaders decision
making is obstinate. At last, assorted leadership approaches to deal with modification are
mentioned.
TASK 1
P1.Various organizational illustration to show outcome of modification on organisational scheme
and operation
Formulation of the strategy is the primary function of the business as this would assist
them in executing their activities and task in such a manner so that the long term objectives of
the firm can be achieved. Appropriate organisational strategy will help the business to have
higher position as compared to their rivals in the market place. All the changes which are related
structure and organisational strategies will also assist the business of Burberry to adopt the most
suitable and new strategies so that the maximum amount of profit can be gained. The formulation
of these new strategies will provide certain amount of benefits to the business of Burberry by
giving them the monetary advantage and also by rendering the products as per the requirement of
their customers (Thomas and et. al., 2013). To interpret modification in business activity and
strategies, some organisational examples are compared to one another. In this context, Burberry
and Marks & Spencer are described beneath :
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Changes Burberry Mark and Spenser
Environmental changes As the business is operating
across the globe them must
consider that the product
which the company is
producing is not causing any
type of the harm to the
environment. For overcoming
this issue the business of
Burberry have to pick out
some strategies (NHS
England, 2016).
Strategies: To forbid
surroundings from harmful
processes, Burberry has
adopted several scheme like
rising service standards and
purchasing scheme along with
inventory control. It will assist
institution to use resources in a
renewable mode. Due to
inventory control, the
company will focus on the
reduce rate of ordering
inventory and will focus more
on the utilisation of the
resources which are scares.
Operations: To avoid the
issues or to overcome these
To sustain the business in the
market place the business of
Mark And Spenser have
focused on all the
environmental changes by the
adoption of some strategies
and operation .
Strategies : The company
have adopted various strategies
for maintaining their
sustainability as they have
focused on the strategy like use
of paper bags in place of
plastic bag as these impact the
environment and adopted the
advance technology to avoid
cashless payment to reduce the
deforestation in the economy.
Operations : The business of
M&S is using the concept of
Six sigma which help the
business to reduce their
amount of wastage which
occur while the execution of
the task. This works with the
factor of the zero wastage and
errors so that the business can
be enhanced by the proper
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issues the business have
focused more on the
engagement in the atmosphere
welfare programmes so that
the concept of the renewable
resources in the business can
also be established.
utilisation of the
resources(Brown, 2012).
Political changes The economy of the UK is
going through the instability of
the economy after the Brexit .
The effect of Brexit have also
lead the economy to face
various challenges and have
also impacted the working of
industry . To overcome these
challenges the company like
Burberry have focused on the
implementation of various
strategies and
operations( Espedal, 2017).
Strategies : The company
have adopted the different
pricing strategies as before the
Brexit effects the firm were
working with the prime pricing
strategies as they were selling
the luxurious product but after
this affect the company have
shifted to the strategy of price
skimming where at the initial
level the company charges
The Brexit effect have also
impacted the business of retail
sector as well as Mark and
Spenser by lowering their sales
and revenue margin. To
overcome the issue of these
decreased sales and
profitability the company have
focused on the adoption of
various strategies and
operation.
Strategies : Before the
company was working on the
strategy of price skimming but
now have adopted the concept
of pricing that is economic
pricing. So that the company
can build and attract large
customers towards their
products and can manage
stability of the business in the
market place(Hintz and Bahia,
2013).
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higher for the product but soon
with the time they reduce the
prices so that the sales and
revenues can be increased.
Operations : the company
have also focussed on the
changing of their operation
activities as they have adopted
the new machinery to produce
their product so that the cost of
operations can be reduced. The
concept of Just In time is also
been adopted so that the
consumption of the resources
can be done in a significant
manner and can be ordered as
per the requirement without
any wastage in the process of
the operation.
Operations : The company
follows the concepts of the
lean manufacturing so that the
problems related to the storage
of the inventory can be solved
within a short duration of time.
This will help the business in
reducing their operational costs
and increasing their margin of
the profits. These operation
will enable the business of
Mark and Spenser in satisfying
their customers expectations to
the fullest.
M1.Mechanism for alteration in all illustration and form of organizational alteration they
affected.
Both the type of drivers have significant impact on the business organisation. As these
drivers consists of the factors which are essential for the business to look after. Internal factors
are the one which consists of the employment law, labour laws etc. and external are the one
which involves interest rate, exchange rate , inflation rate etc.(Beycioglu and Harris, 2014).
Type of organisational changes
Organisational changes and modification are of various forms such as Remedial change and
Transformational change .
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Remedial changes are those which occurs due to the deficiency in the level of performance and
to overcome this problem the business of Burberry will focus on on the arrangement of the
training programmes of their employees(Bin Taher and et. al., 2015).
Transformational changes are those which arises when the company needs to opt all the new
changes prevailing in the market . Here, the manager of the Burberry must allocate their funds in
the most important mode so that whenever the enterprise requires funds to adopt the new strategy
they can use it.
D1. Reason and recommendations with legal confirmation for designing change effectively
From the preceding mentioned study it can be examine that the business of Burberry is
also effected with the driver as internal driver helps the association in managing and maintaining
the resource and funds so that the company can focus more on the profit margin and external
drivers like political, economical, legal helps the in evaluating the environment so that the
company can enjoy the competitive advantage over their rivals. Some recommendation and
suggestion in relation to this are:
The management of the Burberry must analysis in advance about the risk and all the
effect which are associated with the establishment of change in the organisation as
predicting in advance will assist the business to decide what to alter and its benefits to the
business( Fyke and Buzzanell, 2013).
The manager of the Burberry must have a proper discussion with they employees
regarding the implementation of change in the association as this will allow their
employees in successfully adopting the change and enable them to work accordingly.
TASK 2
P2. Various internal or outer mechanism of modification impacting leadership, individual and
team behavior.
There are diverse component which influences the working of the organisation as well as
the team and individuals. These element are inner drivers and external drivers. In context of the
company like Burberry these drivers are mentioned below in the brief manner such as :
Internal drivers
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Financial management : Managing finance is the most crucial function for the business
organisation as without the availability of the monetary term it is not possible for the associations
to execute their activities(Quinn and et. al., 2012). It is essential for the trainer of the Burberry to
look into the matter for allocation of the funds in the most appropriate manner as this will
support their business to earn higher profit margin and will also enable their employees , leaders
and team member to work efficiently.
Resources : The manager of the Burberry must focus on the availability of all the
resources such as capital, labour and raw material in a systematic manner. As they are the only
one who are responsible for the execution of the tasks so that the goal of the firm can be
achieved. There are various resources which impact directly the working of team as well as
individuals. Proper availability of the resources like financial, human , technological will boost
the working of the team as well as leaders within the organisation(Wilkinson and et. al., 2013).
For examine these Inner mechanism organisation must focus on SWOT analysis also :
Strength Weaknesses
Large market share and brand loyalty is the
strength to the business of the Burberry.
Change drivers – The business of Burberry
can successfully adopt all the changes as the
employees within the business are Highly
skilled and can modify changes as per
requirement.
The weakness of the Burberry is that the
company fails to provides their products to the
large local areas and also some product are not
up to the standard.
Change drivers: In this, the focus have
adopted more advanced tools and technology
so that the quality stuff can be produced.
Opportunity Threats
Opportunity for the establishment is that the
commodity and concern enlargement over
diverse geographic position.
Change drivers:- The business have the
opportunity to use their business resources and
expand their business through the introduction
of the new product in the market.
The company have the huge competition from
its competitors who have the same variety of
range and products prevailing in the industry.
Change driver:- this factors serves as the
change driver for the business of Burberry as
this leads to the innovation of the new range
and products which are unique in nature in
comparison to the rivals.
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External drivers :
Political factor : These are the one which involves all the government interventions such
as rules and regulations, laws which impact the working of the business(Lawrence,
2015).
. The company like Burberry is required to follow all the pattern and standard which have
been imposed by the authorities for the organization to precede so that the company can
reduce their chances to undergo loss and paying of heavy taxes. This also leads to the
decrease morale of the individuals, teams and leaders for operating their performance.
Economical factor : Economical factor is the one which includes customer behaviour,
their changing perception, inflation rate, exchange rate and the interest rate which have a
great impact on the business organisation. The business of Burberry must consider the
purchasing power of the customers to produce their products as the business is operating
for the customers only if the purchasing power of the customer is low this will directly
leads to reduce sales of the firm and the employees, individual and the teams will also
feel demotivated as the sales is getting reduced with the decreasing rate(Aslan and
Reigeluth, 2013).
Social factors : This factor is preoccupied with the dynamic request of the customers
reported to the real inevitably and tendency. Regular modification will also leads the
association to install the alteration in order to sustain their life in the market. This
modification have also cause the operative capacity of the leadership as they have to
focus more on human action their employees to follow new selling scheme for the
products.
Technological factors : continuous modification in the technology also causes the
demotivation among the members of the organisation. The members, individuals and
team also get effected with this as the conflicts among them arise with the increase
manner. The duty of the initiative is to ask their employees to alter changes according
inly so that the goals of the business can be attained with the installation of the different
and new technologies.
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P3 .Measures to minimize counter impact of alteration on organizational action.
The manager of the Burberry have focused on the number of factors which will assist
them in minimizing the outcome of alteration on the organizational action. Some of the different
measure that is to be adopted by the Burberry are mentioned beneath :
Engagement of the worker in the process of change : The manager of the Burberry
must involves their employees while altering any of their strategies so that the employees can
easily understand that what the modification is all about and can adopt that change in the best
possible way. Proper involvement of the employees in the operative process may leads to
stronger trust level and healthier relationship and positive organisational behaviour.
Provide effective training : This is the necessary step that the organisation must focus in
order to maintaining positive organisational behaviour as effective training will enable the
employees individuals n the team to work with the exact standard hat has been targeted or
benchmarked. Effective training to the employees will also pull the business of Burberry towards
the stage of the growth and success by achieving the vision(Hughes, 2016).
Expansion of communication channels: Communication is the process of exchange of
the information between the parties. The company of Burberry must focus on the expansion of
their communication channels from top management to bottom either in horizontal manner or
vertical manner as this support the employees to share their view point regarding the particular
issues. The wide communication channel will leads to the simple mode of performing activities
avoiding the complexity so that the goals can be achieved with the effective communication
network.
Creating a culture of learning : The security regarding the job is not what the
employees seeks for the company like Burberry must focus on establishing a culture where the
employees can learn by the observation and build oneself to take up challenges so that they can
work more devoted and work efficiently towards the organisational objective of the Burberry.
Apart from it, the company needs to focus on the implementation of the PDCA cycle
which will support the business to boost the morale of their employees by proper guidance so
that the negative impact can be reduced. The PDCA cycle has been discussed below :
Plan : This step is the prime step that is used in the business as this phase of the cycle
assists the business to develop the plan which will leads to the growth and development of the
business. This phase enables the business with the proper market situation and trends , how to
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implement change, what changes are favourable to them and what not. This provides business
with the detail information about the problem and its cause, all the resources which are available
to them so that the firm can achieve their goals(Wagner and Mathison, 2015).
Do : This step is the second phase next to the planning . In this step the focus is on the
evaluation of the strategies which will be proven beneficial for the firm and is implemented so
that the organisational tasks can be performed in the best possible way.
Check : This phases of PDCA cycle involves checking whether the implemented strategy
for the adoption of the change is successful or not , what are the errors which are occurring and
where the company needs to focused is involved. This step will help the business of Burberry in
comparing the standard performance to the actual performance so that the areas where the
company is lacking can be can be determined and corrected(Lopez and Wise, 2015).
Act : This is the last stage where the business of Burberry will measure that the
implemented strategy is successful for the business or it failure for the business and if it is
successful to the business than the strategy is carried further in the organisation by the mangers
so that the firm can attain a position of the growth in the market by capturing large market share.
M2 .Proper explanation and models to appraise organizational consequence to alteration.
There are assorted hypothesis and models which the organisations must use in order to
make their performance more effective. The company like Burberry must adopt the model of
PDCA cycle as this would help the business by providing detailed understanding regarding their
strategies and policies. Adoption of this model will allow the business to deal with the rapidly
changing environments so that the business can uphold in the competitive era for a mortal time
period . Along with this there are some disadvantages attached to it . If the Burberry does not
formulate the strategies in a proper manner than he business may suffer from the decreased
position in the market place.
TASK3
P4. Obstacle to alteration and their determinant on leaders decision making.
All the associations are required to have change in their respective business as
implementing change as per the market requirement will enable them to satisfy the wants and
needs of their customers. There are certain barrier which occurs while the establishment of
change in the business as these barrier may leads to downfall in the position and performance of
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the business(Foltin and Keller, 2012). To overcome these issues and barriers the association like
Burberry has focused on the certain factors so that the stability of the growth and success of the
firm can be maintained. Mentioned below are some barrier faced by the enterprise which
adopting changes :
Lack of employees involvement : Every organisation has to deal with this problem of
lack of employees involvement as the employees within the organisation resist to adopt the
changes . This issue arises when all the workers working within the company feels uneasy to
work with the new changes as they are familiar to the previous method of performing the task.
This can also lead the business a step back in the competitive market . The company like
Burberry must ensure that they train their employees in such a way that they can easily adopt
alteration as per the requirement of the situation(Agostino, Arena and Arnaboldi, 2013).
Government regulations:- Government interventions are the one that limits the business
to perform their activities in the most significant way as the associations are required to
have permission for the very little changes too with the governments which restrict their
limits to enhance the business and also in follow the alteration in the business
organisations. Burberry is the company operationin their concern across the globe which
is also facing the problem from the government regulation as for any small alteration they
are required to seek government approval.
In present era, the business is operating just for the satisfaction of the customers and their
desired wants and expectation. The company is required to take into the consideration about
what they customers demands for the introduction of the wide and different range of products.
The launch of new product will enable the business of Burberry to prolong in the industry for
the longer duration of time. These commodities in the market are launch after the proper research
and analysis of the market trends. But for the achievement of the success the institution
necessarily to concentration on the implementation of the force field model which gives a list of
reasons that the changes is in the favour of the business or is not favourable to the business.
These forces are explained below:
Force Field Model : According to this model, people undergo various problem and
issues while utilizing organisational changes. Adoption of these changes will support the
business to implement the changes which are beneficial to both organisation as well as the
employees working within the organisation. There are cardinal type of forces i.e. impulsive and
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