Detailed Report on Understanding and Leading Change: UNIT 17 Analysis

This report delves into the critical aspects of understanding and leading organizational change in today's dynamic business environment. It begins by introducing the impacts and drivers of change, emphasizing their influence on organizational strategy and operations, using Sainsbury and Burberry as case studies. The report then employs PESTLE and SWOT analyses to identify key drivers of change within these organizations, providing insights into their external environments. It further explores the barriers to change and how leadership decision-making affects the implementation of change initiatives. Finally, the report examines various leadership approaches and models, such as the force field model, to illustrate effective change management strategies. The analysis covers diverse factors like technological advancements, consumer behavior shifts, and economic and political influences, concluding with an overview of how organizations can adapt and thrive amidst constant change.

UNIT 17 UNDERSTANDING
AND LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introducing the impacts and drivers of changes along with how they affect the organizational
strategy.........................................................................................................................................3
A PEST/SWOT analysis to be undertaken for each case study to identify drivers of.................7
change..........................................................................................................................................7
LO3..................................................................................................................................................9
Barriers to change influence of leadership decision-making:................................................9
LO4................................................................................................................................................11
Leadership approaches to a change initiative's:...................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
Books and Journals....................................................................................................................15

INTRODUCTION
The report of understanding and leading changes will comprehensively analyze the
changes an organization needs to adapt in order to have sustainable business. It is said that in
business change is the only constant and a business must remain very adaptable in nature which
gives it an edge over other in the market place. In the fast changing world, it has become very
vital for the business to remain flexible and not rigid when it comes to incorporate the changes it
can benefit from. Organizations which have more adaptable working style tends to have more
success ratio than others in the market. There is certain competitive edge to the changes in the
organization.
This report is going to elaborate on various changes that are incorporated in the
organization and there driving forces and the impact these changes has on the strategy and
operations of the business. The report further analyses various factors which impacts the business
of chosen organization using pestle analysis. Pestle analysis will help in understanding the
external environment of the business which has high influence on the business. The chosen
organizations are Sainsbury and Burberry; both are from different industries i.e. retail and
fashion respectively. the report further highlighted the impact of changes on leadership and team
working. At last various models and theories like force field model will be used to elaborate the
concept widely.
MAIN BODY
Introducing the impacts and drivers of changes along with how they affect the organizational
strategy
Drivers of changes are the forcing factors that brings an organization to a place where
they have to make changes in the organization in order to have the best business practices in the
business. Organizations like Burberry and Sainsbury are from different industries which have
different drivers of changes (Muluneh and Gedifew, 2018). Such changes have high impact on
the business strategy of the organization and operations of it. Major drivers of changes are
customer oriented and they are needed to be implemented in order to have the sustainable
practices of the operation in the organization. Sainsbury is a retail super market chain having
14.9% market share in UK. And Burberry is a luxurious fashion brand which deals in high end

clothing and accessories operating globally. Let’s understand the various changes that have been
adapted by Sainsbury and Burberry, along with the drivers of changes and impact it has on the
organization with the help of a table.
organisation changes Drivers of changes Impact of strategy Impact of
operations
Sainsbury
plc.
1. Rise in
taxation and
tariffs has
increased the
prices of end
products
offered by
Sainsbury.
These change is driven
by the various
government policies
such as the Brexit which
levied taxes and tariffs
(Hastings and Schwarz,
2022).
Sainsbury has an
aim to be the cost
leader in the market
by providing goods
at the value for
money prices, yet
factors like this
makes it difficult to
provide goods at the
lowest prices in the
market. Company
has to compromise
on many aspects in
order to maintaining
low prices.
All the
departments in
the Sainsbury
has been
affected by
this as, it
hinders the
growth of the
company by
securing low
profit margins
in order to
keep the prices
low.
2. Rise in the
labour cost has
impacted the
overall growth
of the
Sainsbury.
There are pre-set
standard rate of labour
in UK which is set by
government to avoid any
labour exploitation
(Yrjölä and et.al., 2019).
In order to keep the
cost at minimum
levels Sainsbury is
adapting various
cost cutting
measures which
makes high cost of
labour have low
impact on the
Organisation is
trying to hire
only the
optimum
number of
employees
rather than
significant
employees

business. who takes a lot
of budget and
incurs
expenses.
3. Company is
incorporating
the fast
channel of
delivery which
can
significantly
increase the
company’s
services.
Change in customer
behaviour and customer
satisfaction which has
become a very primary
for the company.
Fast delivery
channels are
ensuring a lot of
traffic for the
company and
incurring a lot of
sales as well. Yet
the return policy is
acting as asset back
which ensures low
profits.
It requires
Sainsbury to
hire more
employees
who can
support the
same die to
shift in online
demand from
offline
demand.
4. Inclusion of
technological
advancement
which has
enhanced the
overall
shopping
experience.
Due to the long lines in
the super markets at
billing counter (Kezar,
2018).
It has improved the
fast business process
and enabled faster
strategy
implementation.
This has
facilitated the
best
operational
efficiency in
the
organisation.
5. Customisation
of products
and launching
its own line of
products.
Many customers are
looking forward to have
quality shopping
experience at Sainsbury
for their specific needs.
Sainsbury’s strategy
to keep up eth the
customer retention
is positively
impacted by this as
it is Turing into a
one roof solution for
the shopping where
It has led to
optimisation of
business
operation and
brought
forecast of the
demand under
each category

customers can buy
everything.
which makes
business really
efficient.
organisation changes Drivers of
change
Impact on strategy Impact on
operations
Burberry
1. Government
policies like
Brexit has
negatively
impacted due to
a lot of
restrictions.
Various
economic issues
like immigration
policy, anti-
establishment
etc. triggered this
step (Colley and
Spyridonidis,
2022).
It has negatively
impacted the
business of Burberry
as Burberry has
strategy to sell
luxurious clothing
items globally.
Smooth business
operations are now
hindered as there is
a lot of tax and
tariff burden which
needs to be dealt
with.
2. Change in
consumer
behaviour and
lifestyle.
Due to the covid-
19, consumers in
the market has
become very
conscious of the
choices they are
making.
It impacts the
business strategy to
serve the high end
customer and earn
high profits, as there
is less sales than
usual.
Business operations
at Burberry has
become even more
complicated due to
changing consumer
behaviour.
3. Large scale
global
expansion of
Burberry which
has made it
available in
many countries.
As free trade and
competitors
entering the new
markets it was a
competitive edge
to move to other
international
markets
Business strategies
Have become more
efficient which can
make the global
expansion successful.
Business operations
has positively
impacted as there is
high sales recorder
in international
market.

(Machalaba and
Sleeman, 2022)
4. Adaptation of
significant
technological
advancements
and
digitalization.
Large group of
high end
customers are
present online on
various platform
which is a
potential source
of profits for the
company.
It is helping
positively to enhance
the customer base of
the company and
securing high profit
margins by
increasing the brand
visibility.
Business operation
has become foster
to get the shopping
experience very
high for the
customers.
5. Bring a brand
that channels
climate friendly
practices by
reducing the
carbon emission
to zero since
2019.
As high end
customers are
more vocal about
their practice of
choosing climate
friendly brands.
And it also
happens to
increase its
brand image
(Pianesi, 2019).
It is in support of its
long term goal of
achieving the carbon
neutrality which
helps business earn
high reputation in the
market place and
industry.
Business operations
have become very
efficient in nature
and the waste is
brought down to
zero which has
eventually resulted
in cost cutting.
A PEST/SWOT analysis to be undertaken for each case study to identify drivers of
change.
pestle analysis: It is a tool which is used by organizations to analyses the external business
environment of the business. Pest stand for political, economic, social and technological. In order
to adapt the changes prevailing in the market business has to analyses and study the external
business environment critically to see the stranding and impact of each factors on the business.
External factors are said to be the driving forces of the business as they can make and break the
business (Seipp Jr, 2019). This analysis makes a business aware about its own environment in

which it operates for the better conduct of future activities. Also, business must have an
adaptable attitude which ensure due flexibility to cope with any change in the environment.
Let’s use PEST analyses to see what kind of impact they are making on Sainsbury and Burberry.
factors Sainsbury Burberry
political 1) the recent move of government
which is known as Brexit has
negatively impacted the business due
to increased cost of raw materials
there is rise in prices of final goods.
2) Further the government instability
in UK has also negatively impacted
the smooth business operations as
they directly impact the supply chain
in the country due to uncertainty of
situations (Al Adwan and et.al.,
2021).
1) government’s exit from EU which
is popularly known as Brexit which
lead to rise in prices of raw material
does not affect the Burberry as they
serve high end customer who are not
cost sensitive.
2) political instability affects the
business due to its global presence
which makes the business decision
really vulnerable.
economical 1) factors like covid-19 positively
impacted the business as it led to the
making of effective online business
of the products which made the
company secure large online
customer base in lockdown.
2) yet high rates of inflation and
unemployment affected the cost
leadership strategy of the business
where they sold products at higher
prices.
1) Burberry faced declining sales in
times of coviud-19 and pandemic as
people did not indulge into luxury
shopping like they used to before.
2) fast fashion has impacted the
business and there is high outdated
stock that lies with Burberry due to the
fast fashion trend.
social 1) consumer taste, preference and
behavior highly impacts the business
1) for Burberry it is vital to keep up
with the fashion game all over the

of the Sainsbury. As they need a deep
analyzation of the consumer behavior
and their expectation in order to
serve them and deliver high customer
satisfaction.
2) Sainsbury has observed a recent
shift in way customer believes in
shopping at a super market. There
changing behavior expects it to be a
one roof solution for everything.
Hence they are trying to incorporate
the same.
world in order to incorporate the same
in serving the high end customers who
can get what they expect from the
brand.
2) there is high competition in the
luxury market which requires for
Burberry to beat the competition and
stay ahead of it (Flanding, Grabman
and Cox, 2018).
technological 1) technological adaptation in the
business has been a boon for the
Sainsbury as they have successfully
established a great customer base
online.
2) technological advancement has
made the business processes really
efficient resulting into better quality
services and shopping experience.
1) Burberry is a global brand and
technology has helped it made a better
representation of itself globally which
has directly reflected on its profit
figures.
2) it uses digital platforms to keep in
touch with its customers via multiple
platforms which establishes a great
customer relationship.
LO3
Barriers to change influence of leadership decision-making:
The changes in organization is rapidly changed due to the advance technology and
globalization. The leaders of company know about the certainty which is happened within the
organization. Changes within the organization can affect the business goal, objectives, structure
and systems of company as well as environment of business organization. Leaders of company
need to understand the changes within the organization and its main barriers with the use of

force-field study analysis before changes are implement within the organizations. The changes in
business is plan by the company internal stakeholders such as managers, employees,
shareholders, etc.
for example: Innovation within the Sainsbury, it can come from the leaders of company. The
main aim of changes by innovation is to solver the business internal problems such as its
weakness and external problems such as opportunity (Burnes, 2020). The business nature depend
on the situation because changes in business can be dramatic. So barriers to change the
leadership decisions making.
The business internal changes are imposed on the organization leaders and its members.
For example: Sainsbury leader can motivate employees and force them to adopt the new
business structure so, leader change of decision to adopt the new strategies and techniques to
motivate employees for the new reporting structure. So, it also influences the leadership
decision-making.
Initiated changes within the organization can be managed by the member to meet the
outcomes and goals. Furthermore, whichever the changes of business nature, the company
leaders need to share relevant information for changes, enhance internal collaboration,
commitment and support to the change and facilitate changes.
Whatever, the nature of business change but it success will also depend on organization culture
because it consists the values, belief and assumption that influence business employee to behave
in business.
Leaders of business need to ensure that they facilitate a culture that can adopt the
changes.
For example: Sainsbury leader decision should be creative, risk taking, individual initiative's ad
experimentation because it helps in make workers more adaptive change when they face a
changing environment.
 Lack of clarity: it's also faced in the business changes because leaders not inform
relevant information of changes to employees. It can occur the confusion and conflicts
that directly affects to the business goals and its outcomes (Cleveland and Cleveland,
2018). The leaders need to clear about the changes within the organization with
employees and support them as well as inspire them to adopt he changes within the
organization.

 Lack of management: management are most important for business because it helps in
manage he business coordination and cooperation with employees and is goals. If leader
not able to control business management than they can face problems. So leaders need to
make decision control and manage changes with the business management.
 Employees resistance: due to changes within the organization, employee not able to
adopt changes so, they resistance from business and its is the biggest barrier for business.
Moreover, leader need to provide training regarding changes in their work and also make
them feel confident and comfort so, the retention rate of employees will not decline.
 Communication: due to the communication barrier in business because two-way
communication helps in accept the changes with employees and other member of
company. It is strong force (Luria, 2019). If there are lack of clarity and inaccurate than it
can cause the problems with the acceptance of change so, up to date communication are
most important between leaders and employees for clarity.
 Change resistance culture: due to the changes, Sainsbury can face the cultural barriers
like internal politics, persona agendas, behaviour control that all issues are contributed to
the change resistance culture. It is very strong resistance. For overcome this types of
barriers in business, leaders need to map the stakeholders which impacted by the changes.
They should make the environmental conducive and individual transition for change.
These barriers influence the leadership decisions making, it depends on that they are
perceived and their decision depend on business success.
The force field analysis helps in determine the potential forces that helps in act on
change required. This also involves the relative strength and sources of each potential force. It
helps in facilitate the informed decision-making as well as helps in enhance the chances of
success to implement the changes. The forces are scale with the score like weak, strong, very
strong and strong. The change effort have supportive and resistive forces so leaders can use the
force-field analysis to understand the requirements with the Lewin model which will discuss
below.

LO4
Leadership approaches to a change initiative's:
The change management require the effective leadership to sustain and become
successful in the competitive marketplace. It promotes the sustainable approach with the various
leadership style such as authoritarian, transformational, democratic and transactional. This
approach in relation to the change management. Company need to adopt the situational based
approach to assume the adaptability and flexibility need to support change within the
organization.
In the context of autocratic leadership, it promotes the separate between the employees
and leaders. These leaders impose the style and it is characterized that leader control over the
decision in firm (Engin, 2020).
In the context of transformational leadership, this helps in inspire employees and improve their
morale as well as team performance of employees with their sense of collective and identity.
Leadership style helps in inspire the innovation and encourage critical thinking because it
includes the business visionaries.
The democratic leadership style is also known as the participative leadership style for
effectively manage the business with traditional top down approach. It helps in recognize that
workers are stakeholders. It is style in which member of company take participate in decision-
making process.
For changes in the Sainsbury and Burberry company. The technology
change in business to improve the business profitability and its productivity. The changes in
company for improve the business productivity and customer experience in better ways (Ali and
Anwar, 2021). It will help company to improve its business reputation and its brand with
advance technology facilities. It helps in enhance the more customer as well as innovation
directly impact on the company employees with their retention rate and attract more employees
towards the business organization. The organizational structure changes are also affects the
business and its employees because hey are not able to adopt this rapidly, but its will help
business in appropriate coordination and cooperation within the organization as well as also
improve the business structure and its is more beneficial for company.
The transformational leadership approach is use by the Sainsbury
company because it helps in motivate employees to adopt changes which helps in shape ad grow