A Comprehensive Report: Understanding and Leading Change in Business

This report delves into the crucial aspects of understanding and leading change within organizations, focusing on the retail sector through case studies of ALDI and TESCO. It examines the impact of both internal and external drivers, such as economic and technological changes, on leadership, team dynamics, and individual behavior. The report identifies strategies for minimizing the negative consequences of change, including technology adoption, product innovation, and market research. It also explores barriers to change, such as fear of the unknown and communication breakdowns, and their influence on leadership decision-making. Finally, the report analyzes various leadership approaches to effectively navigate organizational changes, emphasizing the need for adaptability and strategic planning in a dynamic business environment.

Understanding and
Leading Change

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: compare different organisation and their impact on strategies and operation..............................3
P2: Internal and external drivers that affect leadership, team and individual behaviour in
Organisation......................................................................................................................................4
P3: Measures for minimise negative impacts of changes on organisation.........................................6
TASK 2.................................................................................................................................................7
P4: explain different barriers for change and how they influence leadership decision in organisation
...........................................................................................................................................................7
TASK 3.................................................................................................................................................8
P5: Different leadership approaches to deal with changes in organisation.........................................8
CONCLUSION...................................................................................................................................11
REFRENCES......................................................................................................................................11

INTRODUCTION
This report explains that changes are necessary for environment and these affect
organisation and their strategies. Business environment is dynamic in nature and this requires
management on daily basis for effective and smooth flow of enterprise. Sometimes, it throws
both negative and positive lights on company (By,and Burnes2013). Below mention project is
based on two companies; ALDI and TESCO both are same retail sector. Apart from this, the
file is divided in three parts and explains comparison of organisation is done and also
explains impact of changes in strategies or operation. Besides from this Internal and external
factors that affect leadership, team and individuals behaviour in organisation and how leaders
or manger can minimise negative impact of changing environment on organisation. In second
task various barriers are explained and how these can influence decision of leaders. In last
task different leadership approaches are elaborate.
TASK 1
P1: compare different organisation and their impact on strategies and operation.
ALDI was founded in 1913 on 23 June it is a Retailer business serving food items,
drinking products and Sanitary things also. Spread its business in more than 18 countries with
more than 10,000 stores. Apart from this another company is TESCO having same sector
business but founded in 191 9, 99 year ago more than 6553 stores in UK.
If there is change in business environment it puts huge impact on strategies and
operation of organisation because of the changes in external and internal or many more
factors requires changes in planning also (Carr and et.al.,2012). Some factors are explained
below because of that company need to change their strategies and operations.
Impact of changes on ALDI- there are many changes like Government Policies ,
substitute products, new competitors and many more these required changes in their
strategies and operation because according to policies of government they should have to
change their norms like customer act, Workers wages act and many more. Apart from this if
new products are or substitute of same are launched then it affect ALDI’s sales and loyalty of
consumer towards its products. To overcome from this situation they have to use latest

technology for production or can bring new items in market that will help them in maintain
their market share or performance (D’Amato and et.al.,2013). Changes can be at micro or
macro level these put a wide impact on existing strategies and operation of the respective
company.
Impact of changes on TESCO- if there is change in technology it gives impact on
organisations operation and strategies at a wide level and requires some innovation on the
same. On other hand, if policies are modify than it requires modification according to that in
organisation for its smooth and efficient working. Changes can be small or big but put large
impact on company and requires conversion of the same. Internal or external factors are the
cause of change in strategy and operations. Like if employees working in organisation
suddenly leave or plan of this affect organisation production and can be expensive for hiring
new staff. Shifting in population also effect like increase or decrease in country residents.
Besides from this retail sector is very dynamic business and change like weather.
Above explanation shows that modification is required according to change in
business environment or in the internal factors of organisation (Doppelt,2017). These put
drastic impact on ALDI and TESCO and changes there strategy and operation. The same help
in smoothly running of business or effectively and bring efficiency in work. It gives negative
and positive attributes in the above mention both organisation.
P2: Internal and external drivers that affect leadership, team and individual behaviour in
Organisation.
Many factor in organisation and sometimes outsides factors affect leadership, team
and single person also. Apart from this, leading is a process followed by leader for a team to
guide them, motivate and encourage also for better performance and seek organisation
objective or goal easily. Whereas, team is group of person formed for achieving a particular
task or help in divination of works and individual person in team have its specific assigned
task or their individual identity.
External and Internal drivers affect on leadership
External Factor Internal Factor
Economical and political drivers affect
leadership in many ways and require
modification in existing plan.
Behaviour of employee effect leadership if
they don’t behave well with other peoples in
organisation.

Change in technology requires more
attention and training to the employees
working in organisation.
Changes in organisation strategies put impact
on leadership because of this leader have to
provide training to employees according to
that.
Finance and physical parts are also external
forces and if there is no proper fund for
organisation and equipments that will affect
work of leader (Fulla, 2014).
If staff changes than new employees need
training and leader have to enhance their
skills according to organisation requirement.
Investors or stakeholders of company
changes than this create fund issues and
market share issues for the same reason
leader have to work on it.
Company start using new equipment then
their production department get affect and
leader have to work on this department.
Internal and external factor affect team
Internal External
Task structure should be clear and well
define so that it can help group in easy
achieving their task.
New rules and regulation requires latest way
of working. For this formation of more teams
are required by breaking existing team.
Size of team member should be perfect not
more than requirement.
Latest product in market affect production
department group on the same organisation.
Conflict between team members or in
between employees working in same
organisation break group prepared for
particular task.
Customers base change may time sometimes
it may be slow or high because of substitute
attraction (Holmes, Clement and Albright
Hrebiniak
2013).
Communication is main part of team for
working on single task. If there is effective
two way transaction of information that help
them in easy approach to strategies and goal.
Changes in trends gives work load to
production team for producing new products
according to current market trends.
External and internal factors affecting individual
External factors Internal factors
To remain in competitive environment is Leadership style sometimes not easy for

very typical for individual in current
competition scenario.
individual to adopt easily.
Adoption of technologies and new techniques
is not easy it will take time and requires
training.
Other employee’s behaviour and attitude
towards a single person can motivate or
demotivate them.
Requires day to day training to update
individual skills and knowledge.
Culture of organisation is important for every
employee’s at individual or also for team.
Above mention are external and internal factors and their changes gives impact on
these three; leadership, individual and team are explained the same requires some innovations
in them also for organisation future.
P3: Measures for minimise negative impacts of changes on organisation
Changes in business environment can give negative impact on some organisation. To
come out from these situation companies have to do or also for maintaining their existing
performance and market share (Groebner and et.al.,2013). Measure to overcome from these
negative impacts are explained below-
Use latest technology- updated equipment help in better and faster production of
goods with minimum use of funds and resources it is beneficial for environment as well as
also or organisation. This will cost less for product than other companies help in influencing
and attracting customers easily.
Bring innovation in products- continue same product decrease its market demand
and customers after a certain period to overcome from this situation company needs some
innovation or creation in the same product. If this will not work than they have to introduce
new product for their customers and also for maintain their performance in market.
Maintain quality and quantity of goods and services- better quality of products
help in many ways like brand image, customer loyalty, maintain performance of company in
market, enhancing and attracting peoples or in many more. This will also help ALDI and
TESCO to minimise negative effect of business environmental changes in the respective
organisations.
SWOT analysis on half yearly or yearly basis- timely analysis of strength,
weakness, opportunities and threats help both companies. Also minimise future risk that can
affect and bring opportunity for business expand. SWOT investigation minimise many

negative factors and bring many good chances for business for growth, development or also
give better platform compare to present.
Fulfil social responsibilities- every company have some responsibilities of it towards
country, society and they should fulfil the same for their image as well as for growth of
economy also. It can be like keep needs and wants in mind while production.
Keep customers in mind while production- requirement of products in market or for
customer should be kept in mind while production. This help company in attracting
customers and increase demand of products or services in market (Jones,2011).
Market research- it should be conducted by company timely basis for better
identification of needs, area for advertisement and promotion activity. So that ALDI and
TESCO can serve wide range of products in market according to requirement. Market
research is required for minimising negative impact of changes in organisation.
TASK 2
P4: explain different barriers for change and how they influence leadership decision in
organisation
Making changes are not that much easy as its looks they come with several barriers
with them. The same stop organisation in modification below mention is some barriers that a
company may face-
Fear of unknown or unfamiliar- some changes made in organisation are not popular
and not easily acceptable or understandable by the employees working for them. If
modification is not correct and suitable for enterprise than it may be the reason of risk for
them.
Ineffective leadership- if employees are not properly guide by their leader according
to the changes made in organisation then the same will create problem what to be do and how
to work for achieving goal and objective. Many people have fear of losing job and failure
because of changes. This can be successful by providing them information for their benefits,
give them training for motivation or development and also can provide them ownership of the
change (Mayfield,2014).
Broken Communication- for managing changes communication is necessary if there
is no two ways transfer of messages then it will cause failure in modification. Everyone
should be involved in this work for successful results (Peters, 2012).

Under complexity- sometimes changes are complex and long-lasting procedure. This
can be also in failure to put into practice or even to drop plans totally as the challenges is only
too discouraging to take. Keeping changes simple as much as can help in achieving looked-
for goals.
Focus on results- there are some area should be focused by organisation so that there
should be better results or outcomes. Strategies and planning is necessary for achieving goal
for those changes are made in enterprise.
There are some barriers occur when changes are made in company to overcome from
their problem mangers and leader have to focus on these points.
TASK 3
P5: Different leadership approaches to deal with changes in organisation
Business trends are changing now a day all over the world and if there is no change
than it is difficult for them to survive in current scenario. Leader in not only person who have
to prepare for changes but manager and other employees also need preparation. Modification
is necessary for better future. Leadership approaches is general way or behaviour pattern of
leader towards his employees in order to influence them to attain organisation goal. Every
leader usually develops their own styles to overcome from changes (Pieterse, Caniëls and
Homan,2012). Some theories are explained below which helps in dealing with changes-
Kotler’s 8-step change model- this acceptable by all kind of industries because it is
effective for implement changes. These eight steps include set up logic of pressure, create a
guide union, build up a vision and strategy, converse the change vision, authorize broad-
based action, create short-term wins, combine gains to make more change in the
organizational culture.
Lewin’s change management model- it was introduced in 1940 by lewin most
famous and popular for how to adopt changes and deal with them. The same help in knowing
that change is needed for moving in the direction of new thing for better growth and future.
This has three main stages

 Unfreeze- for cooking something freeze firstly that should be unfreeze same is
applicable for changes initial step is unfreezing. For the same current behaviour, ways
of thinking, processes, employees and organisation formation must be carefully
inspect to show that modification is necessary. Information transfer should be strong
for convening message related to changes (Salmela Eriksson and Fagerström,2012).
 Change- it is the situation in which organisation move in new stage this is when
changes become actual and implemented. Employees and other people in organisation
have to learn new way of thinking and process or also change their behaviour.
Training and development is needed to employees for working in modified area.
 Refreeze- this is last and final step of change in organisation goal, objectives,
planning, and structure should be refreeze so that after this company will work
according to the modification. The same step is important because employees don’t
revert to the old parts.
Autocratic or authoritarian leadership- this kind of leader centralise power and
make their own decision and give instruction to other what to do, how to do expect from that

they will follow without any question. Autocratic leaders are of two types; pure autocrat these
kinds of leaders make decisions by their own don’t ask from other employs to share their
view and give them orders to follow only .another is benevolent autocrat such a leader
motivate their subordinates for work and take their opinions for any kind of decision.
Authoritarian approach has some advantages like gives employees strong motivation and
make quick decision for meeting changes challenges (Tang,Lu and Hallinger,2014). Provide
structured work for personnel. On other hand also help manager to get thing done with
certainty.
Participative / Democratic leadership- it is opposite to above explain approach
because this firstly decentralise authority. Such leader involves subordinates in decision
making process. Thus, decisions are not unilateral. With the help of this team members and
their leaders in organisation work like social unit and easily accept the changes in
environment as well as in company also. Everyone in this style is free to share their views,
suggestion and express their opinions. Everything has its benefit same as this approach also
have advantages such as, avoid hasty decision and improve their quality apart from this
motivate their employees in many ways to perform well for higher productivity and facilitates
introduction of changes. Encouragement should be through positive means so that it will be
good for present or for future also.
Free-rein or laissez-faire leadership style- in this approach leader use his power
very little. High degree of freedom is given to employees in their operation. He depends
totally on his subordinates to set their own goal and make decision regarding them and their
job. This style is permissive and leader less intervenes his co-partners and helps them in
develop or train for independent decision. The same bring new ideas for facing changes in
organisation.
Paternalistic leadership- it is heavily work-centred but has consideration for
subordinates. Such leader help guide and teach their team members for work together like
family. Direct personal contacts are made for feedback or can solve issues if they have these
kind of approach is good for changeable condition. Every employee show there initiate in this
task because they feel free to share and have job security also (Yoder Wise,2014).
Above explained are the approaches or styles of leadership which is important for
organisation to minimise the impact or can overcome from changes in organisation. Business
nature is dynamic and modifications are necessary for better future and also for expanding.

Sometimes, these can be negative also for that there should be always a backup plan in
organisation prepared by leader or manager. There are four ways through which the same can
be identified easily by leaders. Following factors are considered while choosing are forces in
the leader, group and situational forces.
CONCLUSION
This report shows effect of changes on leadership, team and to individual. As already
discuss that changes is necessary for present and future but these modification comes with
some negative effect also an organisation have to minimise these because if they will not
overcome of the same it will be harmful for their company. Apart from this comparison of
two same sector companies are done ALDI and TESCO for easy description of effect and
issues of changes. There are several approaches of leadership that help in meeting changes
like Kotler’s 8- steps and Lewin’s change management model.
REFRENCES
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