BTEC HND Business Unit 17: Iceland Food Ltd Change Management Report

This report provides a comprehensive analysis of change management within Iceland Food Ltd, a British supermarket chain. It begins by comparing Iceland to Waitrose, examining their strategic and operational differences. The report then delves into the internal and external drivers of change, including political, economic, social, and technological factors, and their impact on leadership, team, and individual behaviors. It evaluates measures to minimize the negative effects of change, exploring organizational responses through various models and theories. The report further investigates barriers to change and their influence on leadership decision-making, utilizing force field analysis. Finally, it examines different leadership approaches to deal with change, assessing their effectiveness. The report concludes with recommendations for effective planning and implementing change within the organization, drawing on various models of change and leadership approaches.

Understanding and
Leading Change

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1: Compare organisations on the basis of organisation’s strategy and operations..............4
M1: Drivers for change and type of organisational change that has affected........................7
TASK 2............................................................................................................................................8
P2: Internal and external drivers of change that affect leadership, team and individual
behaviours...............................................................................................................................8
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour......................................................................................................10
M2: Organisational response to change through models and theories.................................12
D1: Conclusions and recommendations for effective planning and applying change.........12
TASK 3..........................................................................................................................................12
P4: Different barriers for change and determine how they influence leadership decision
making..................................................................................................................................12
M3: Force field analysis and its influence on decision-making...........................................14
D2: Evaluation of force field analysis..................................................................................14
TASK 4..........................................................................................................................................14
P5: Leadership approaches to deal with change...................................................................14
M4: Extend to which leadership approaches can deliver change.........................................16
D3: Effectiveness of leadership approaches and models of change.....................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Organisational change is a process with the help of which the changes are incorporated in
the methodologies that the organisation follows, in their structure, policies and strategies so
adopted by them etc. To accept the changes that are taking place is important for the organisation
so that they can take the competitive advantage over others. The drivers of change include the
technology, various external and internal factors and many more (Kotter, 2012). In this report the
organisation that is taken into consideration is Iceland Food Ltd, which is a British supermarket
chain whose headquarters are in Deeside, Wales. The product that they offer includes frozen
foods, prepared meals and vegetables. With the help of this report, understanding of various
concepts of changes can be developed so that improvement can be made in the strategy and the
operations of the company. The impact of such changes will be analysed on the behaviour of the
employees, performance of the team and of the individual etc. Apart from this various models
are analysed that can be implemented along with various leadership approaches in context of the
organisation.
TASK 1
P1: Compare organisations on the basis of organisation’s strategy and operations
As almost every organization, including large or small acts in a competitive world that
continues to evolve due to external factors such as increased levels of competition that can
impact a firm's long-term sustainability target. This makes it acceptable for the organization to
analyze the element that can impact its work as well as tackling
challenges.Successfulorganisation in order to flourish the business operations offerstrainingand
development session to enhance theknowledge and thinking ability of staff. This helpsthe
internal personnel to welcome thechangesby using innovation and upgrade their working
regime.Herein, Iceland companyconsider and track the customer's actions and their purchasing
habits so that the business can offer the goods and services according to the consumer's
requirements. It normally asks their customer to share the reviews and give ratings that will help
internal representatives to take remedial action and expand the productivity of the business
appropriately(Espedal, 2017). For instance, with globalisation and increase in opportunity most
of the people including both male and female engaged in the jobs sue to which rather than just
keeping raw food into the store Iceland company offered frozen as well as ready to cook items to
support the busy lives of local residence. Along with that availability of business within online

platform highly leads to convenience amongst customer as they can explore the online catalogue
and get the products delivered at their footsteps. Sustainable changes immensely assist
thecompany to successfully increase the footfall by strengthening its distribution channel within
specific time frame.
Comparison

Basis of Comparison Iceland WAITROSE
Structural change Iceland company during the initial
stage adopted hierarchy structure
which involves centralised decision
as only few authorities has the
power to take the vital decision.
Further, with the immense growth
company shifted their operations
from hierarchical to divisional
structure. It involve different
functions like marketing, human
resource, research and development
that coordinate with one other in
order to gain expertise knowledge
and make effective decision.
Functional manage of each division
coordinate with their staff and come
forward with viable decision. Within
this structure staffs are competitive
enough as they get the opportunity
on the basis of their capabilities,
knowledge and skill.
Waitrose company practices
hierarchical structure that
involves different management
levels which regulate the
operation of overall organization
by ensuring cooperation at
different management levels.
This arrangement helps the
organization to maintain contact
and allow faster decisions, on
contrary it limits creativity or the
opportunity to indulge into group
thinking (Fyke and Buzzanell,
2013). Although the company
fall under retail sector which
experience huge competition due
to which internal manager need
to take decisions actively within
short span of time. But in
comparison to Iceland company
application of hierarchical
structure with Waitrose has
affected the creative decision
making which involve
brainstorming or group discuss
process involving interest of both
employer and employee.

Changes on strategy Since Iceland's business is facing
tremendous competition in the
external world, it has pursued a low
price penetration strategy at which it
offers the high quality product at
reasonable rates. Business does not
keep its prices flat, which means
they study their competitor's
approach and continuously introduce
drastic improvements as the loyalty
card is allotted to deliver additional
discount to loyal members. Thus,
constant changes have enabled
company to expand its scope by
retaining and attracting potential
customers. The objective of setting
penetration strategy is to expand
market size and build wide customer
base. Currently, the company
operates in more than 900 locations
and has effectively carried out
portfolio investment successfully.
Waitrose company being a part
of retail industry adopts
penetration strategy under which
it targets the wide needs of
people. This strategy has
relatively helps the company in
terms to extend the market share
and customer base of company.
Possibility of setting higher
prices then competitors can led
the company to lose its customer
and under charged items can
affect profitability margin due to
which competitive strategy are
prepared. Waitrose objective
behind penetration strategy is to
maintain better interrelationship
with existing customer. In
comparison to Iceland, respected
company function around 300
locations due to which it tries to
sustain target market.
Changes in operation With the rise in digitalization,
people's lives as well as business
have been made simpler, earlier the
Iceland company relied heavily upon
Waitrose company concentrate to
build up the foundation of
distribution channel and
extensively promote online

physical stores but later changed its
activity by switching to the online
platform to communicate with
customers and manage their
grievances. In addition, the
organization relies heavily on its
website, email platform and social
media to market its brand. Efforts
are taken to build user friendly
website so that customer can easily
access it and get products according
to their requirement.
services. For this it has reduced
the delivery days that enhance
the efficiency and simultaneously
gain long-term profitability.
M1: Drivers for change and type of organisational change that has affected
The requirement of changes is dependent upon the objectives of the organisation as on the basis
of their objectives they formulate various strategies and make changes in them. Due to these
drivers the Iceland may have to face transformational change or transactional change, planned or
unplanned change, structured or unstructured change. This depends upon the situation that arises
before the company due to change(Fyke and Buzzanell, 2013). Various drives that can force
change include the legislative factors, political factors, actions of the competitors etc. Such
changes have positive impact on the company’s performance as with they can improve the
satisfaction level of the customers.
TASK 2
P2: Internal and external drivers of change that affect leadership, team and individual behaviours
External drivers: External drivers requires the study of PEST that is not in control of
firm but needs to be overviewed as helps in articulating decisions like expansionof plant or retail
store. Since these aspects cannot be moulded by business entity therefore actions are taken to
influences leadership style, individual and team behaviours.
Political Factors:This refers to the regulations, trading practices and government
policies that influence the efficiency of companies. Any alteration in government policy within

the retail sector impacts Iceland organisation's working. However in this case company adopts
the new approach based on adoption of changes anddevelopments that impact person and team
actions within an organization.Therefore, this legislation, such as the introduction of high tariff
rates, hinders the overall trade that means importing and exporting foodstuffs. Along with
thatexistence of Iceland and other retail store into e-commerce platform can leads to the
challenges like existence of privacy breachthat can affect the data and leads to
confidentiality.Thus, adequate rules are made to safeguard the interest of business.
Economical Factors:These factors include economic trend, inflation rate anddisposable
income of consumer which influences demand and supply in market. Since the economic
situation is complex, retail industry experiences competitiveness while people are reluctant to
purchase throughout the downturn (Alavi and Gill, (2017). So, Iceland companyought to devise
an inflation or recession dependent policy. Thus, the international manger needs to
devisethestrategy on thebasis of different economic conditions. As there is a high scope for the
retail sector to grow because people can compromise luxuries but not necessities so the company
on the basis of leadership quality and interaction of individual andteam member positively
appeals the interest through discount and offers. This helps to effectively shape outthe internal
operationssuccessfully.
Social Factors: Social factorinvolveschanging trend and existing requirements of
customer that needs to be accommodated by company. As within retail sector customer prefer to
get the collective items at one platform so Iceland Company maintains large variety
analternatives of food and non food items to support the interests of customer. The collective
efforts of individual and team members createthe synergy thatmaximizesthe footfall of company
as attention is given to set the unique position of brand. Herein, Icelandcompanythrough the
support of its website, meets the requirements or desires of a wide audience. It also shows the
targeted advertising with the aid of social media as well as announces offer to establish valuable
relationships with the current and future audience.
Technological Factors: Technology encompasses application of latestinnovation or
trend which is responsible for systematic functioning of activities.Extensive use of internet for
shopping acts as a boom as it immensely enhanced the conversion rate and maximised sales of
company (Drago-Severson and Blum-DeStefano, (2018). Herein, Iceland company with the help
of online catalogue delivered the ordered items to proper places within specific time zone. So the

contribution of leadership style within person and team behaviour allows the company to adapt
new inventions in order to constantly enhance their functioning.
Internal drivers: SWOT analysis which includes both the internal and external
elementsneed to be monitored with the scope to maximize the efficiency and overcoming
limitations to gain overall productivity and profitability.
Strengths Weaknesses
 The company has established
remarkable position within the market
as due to economies of scale company
come up with high discount and have
effectively adopted the concept of
loyalty cards exclusively design to
maintain long term customer
relationship.
 The company due to effective
distribution channel promotes fast
deliveryof items which promote the use
of online application and resolve the
problem of people who resides in
distance.
 In comparisons to other large
organisation like Tesco, Sainsbury and
Asda respected company has limited
scope which makes it tough for
company to switch the customer from
other major brands.
 Iceland company does not have global
image which has limited the operations
of company in comparison to other
retail outlets (Nelson-Brantley and et.
al., (2018).
Opportunities Threats
 The strong presence and availability of
financial position can assist Iceland
companyto expand its operated and
explore the opportunity in developing
regions. Even partnership and strategic
alliance are some form of businessthat
can help company to generate wide
advantage.
 Regularinvestment in online platform
 Price wars affect the profit margin of
company.
 Dynamic factor like any sudden change
in the rules and regulation of local
authority or imposition of high tariff
rates can downturn the performance
and strategy of Iceland.

can create a buzz amongst local
residence which more likely widens the
conversation rate of an enterprise.
Kurt Lewin’s change management theory: This change model helps the organization
and its employee to understand the essence of changes. It comprises of three stages that are
discussed down below:
Unfreeze: Although changes are needs to function in dynamic environment but
employees may resist adopting the changes. So under this stages Iceland company needs o
generate the awareness amongst employee about the significant to promote changes. The current
level of acceptability is generated from employees to gain competitive advantage amongst
rivalries.
Change: This is also referred as transition stage as people are unfrozen under the
supervision of higher authority. Additionally, it is the responsibility of higher manager of Iceland
company to motivate the staff in order to incorporate better changes that future helps in
enhancing existing skill, knowledge as well a capabilities.
Refreeze: Under final stage the changes are freeze as personnel are more comfortable in
carry out tasks through existing habits due to which it comprises of efforts where new working
pattern are promoted. Thus, application of change model helps in promoting desirable
organisation culture.
Therefore, it is highly recommended for Iceland company to overview both internal as
well as external drivers as it better helps in understanding the situation on the basis of which
changes are promoted. As retail industry comprises of huge amount of competition so the
internal manger should strength their position by enhancing online dealings through effective
online merchandising, using applicable promotion strategy, short delivery time and offering
heavy discounts. Along with changes through market research or analytical tool company should
remain updated about the changing preferences of customer and according modifications needs
to be promoted.

P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
Different strategies are formulated by management in order to run their business and
attain the business goals effectively. Changes are the need of organisation which is used to
produce new products and services and increase the organisational profitability. Such as Iceland
is a larger size super market that adopt changes in their organisation such as online delivery,
improvement in supply chain and online payment which attracts customers and increase the
number of customers which helps to maintain the good image. While adopting changes different
problem are faced by manager that need to be remove so business can be maintain efficiently.
The managers of Iceland are using Burke letwin change model to reduce the negative impacts if
changes in their organisation that are as defined:
External environment: This environment is related to certain department where
managers are focusing on needs of people and provide products accordingly. This includes
technological changes, competition rate, government regulations etc(White and Robinson, 2014).
The descriptions of factors which are used to reduce negative impacts are as defined:
Mission and strategy: The mission of Iceland organisation is to increase number of
customers and organisational productivity that can helps to maintain higher profits and brand
value.
Leadership: These are people who understand problems of employees and provide them
best solution which helps to solve problems. In Iceland, managers are adopting participative
leadership in which leaders participate in all activities with employees while accepting changes
and provide good solution.
Organisational culture: Iceland is relationship oriented company in which managers and
employees are maintaining good relations and completing task in certain period of time. They
maintain an interpersonal relation which helps to solve the problems.
Structure: Divisional structure is followed by manager of Iceland in which all activities
and business functions are performed by managers by sharing information with employees which
helps to improve the organisational performance by accepting changes.
System: The management of Iceland supermarket are following internal and external
system that is used to accept the changes and improving supply chain.