Leading Change in Retail: A Comparative Analysis of H&M and M&S

This report provides a comparative analysis of change management strategies employed by two major retail companies, H&M and Mark & Spencer (M&S). It begins by examining how changes in the market environment affect the organizations' strategies and operations, specifically focusing on adapting to changing customer preferences and market trends. The report then delves into the internal and external factors that impact leadership, teams, and individuals within these organizations, such as wastage, employee morale, and competition. Furthermore, it explores measures taken to minimize the negative impacts of change, including coordination, training, employee communication, and market research. The report also discusses barriers to change and leadership decision-making, as well as various leadership approaches that are effective in navigating change. Overall, the report highlights the importance of proactive adaptation and strategic leadership in the face of dynamic market conditions.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Changes on organisation's strategy and operations...............................................................1
P2. Internal and external factors affect leadership, team and individuals...................................3
P3 Measures which helps in minimising negative impact of change..........................................4
Task 2...............................................................................................................................................5
P4 Different barriers which affect change and leadership decision-making...............................5
Task 3...............................................................................................................................................7
P5 Various leadership approaches which help to deal with change............................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
The concept of change is a general approach which has been found to be useful in order
to develop some specific thought and idea for any changes that lead to increment or
improvement. Change can be denoted as a system that triggers resistance because it challenges
person’s beliefs, habits and values (Fullan, 2014). It has inclusion of various factors which make
a direct impact on people's behaviour as it helps in order to defined answers in regards of human
as question them to have any type of experience, losses and showing their disloyalty to person
and cultures. In this competitive era, it is essential for every organisation to be more capable to
deal with the changing environment. This report has been based on a comparison of two same
organisations as they are dealing with change which occur in the market. Report has grounds of
Mark & Spencer and H & M which is retailer firm and has stores chains and deals in clothing as
well as food products. The report will give explanation on drivers which are able to bring change
along with different barriers of change as well as the ways they influence leadership decision.
TASK 1
P1. Changes on organisation's strategy and operations
H & M is the best and prominent company that deals in clothing with a wide range attire
as clothing for infants, women, teenagers, children and men along with accessories that are able
to attract a large number of persons. H & M has flourished their business market to different
countries in order to grab more number of customers (Fagerström and Salmela, 2010). They
ensure high quality of products because they are believing in offering the best possible goods and
services to their buyers. It helps them to create loyalty towards company and its product but is
main thing which is unpredictable hence due to change in trends of market and customer's
preference and makes variation in buyer's demand, taste. Hence, firm is needed to match their
expectations along with likes or dislikes in an effective way.
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Example: H & M is required to begin research and environmental study in order to
conduct analysis market trends, competitors and customers along with it they needs to opt some
strategies in regards of latest fashions, demand or choices so company will be able to cope with
changing environment with framing innovative goods, product and services that satisfy
customers’ needs or wishes. H & M is the most famous brand and hence, it is easy to capture
attention of customers through quality of products like fashionable accessories and clothes. H &
M is concentrating on reducing the price of goods and increasing sales which aid in order to
contribute in more profits and achieving organisational objectives or aim.
Impact of change on organisational strategy and its operations
Change is unpredictable and come up with any type which is more powerful to make
effects on the strategy and operations of company. Every firm is trying to reduce their prices and
expenses along with tries to reduce wastages in production working or activity with having more
and maximum result as much as possible form less using input of available resource so that
company will found able to earn higher profits with less expenses. Firm frames decision in
regards of choosing strategy that helps in order to facing more challenges and critical situation so
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Illustration 1: H &
M UK
(Source: H&M, 2018)

that company can work in accordingly in effective manner. Research is playing a significant role
in order to analyse different changes and also provides support to the firm in order to have
decision that can facilitates motivation to employees for effective completion of task or working.
MARK AND SPENCER
M & S is also a well-known firm and a famous brand in textile and luxury clothing. It is
a multinational retailer firm that is dealing in quality products or services in the demand market.
This organisation is focusing on providing superior quality products to their customers and
makes possession on all over market (Doppelt, 2017). They concentrating on their promotional
strategies in order to build demand as well as tries to spreads awareness for product among
customers that helps in capturing the eyes of them towards firm and its offered goods or services.
Company are selling its goods at very reasonable cost that are affordable by all types of
customers and able to satisfy the needs and demands of the customers. Due to change occurred in
market place, M & S are also needed to opts such types of change and accordingly frame
suitable strategies through which firm will be able to influence their workers for performing well
and effectively in order to having the determine objective and goals.
Example: Mark and Spencer are needed to create effective strategies which provide help
in developing its business and gain competitive advantages. Because of change in market,
company will also get affected cause of different competitors and choices of customers or their
preference that is completely different hence firm requires to be ready in order to face all
challenges in the demand market to gain determine target and goals (Hallinger and,Heck, 2011).
Impact of change on organisational strategy and its operations
Mark and Spencer are concentrating on current trends and buyer's preference through
generating survey which helps in collecting data in respect of market environment and
accordingly they will product goods and services which are able to satisfy customer's wishes and
wants along their demands in effective manner. Changes are very powerful which affect decision
of every organisation in their strategy and operations.
P2. Internal and external factors affect leadership, team and individuals
Leaders are those persons who have special attributes and personality which are able to
provide guidance and showing the leading path to group or individual person in a right and
suitable direction to gain their objectives and common targets. They provides help to company in
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order to framing vision and mission along with determine path for goals which workers have to
capture in future and do their best performance in organisational success (Carrington, Deppeler
and Moss, 2010). On the other side, leaders play a significant role in order to predicting better
path way to the employees and motivates or influence them for doing or working hard in order to
accomplish their target and objectives in an very effective manner. Hence, with the help of
leadership, all the tasks and projects are done effectively as it reduces the chances of sacking in
workforce.
There are internal and external factors that are able to make a direct impact on leadership,
team and individuals that are like:
Internal factors:
All internal factors are those elements who are making effects on business form inside of
the organisation they are always present in the environment of firm. Internal factors can be
control through top level of managements. These changes create effects on decision making
directly for entire operations of organisation (Malenfant, 2010). Therefore, company needed to
understand the all these all factors and opted strategies to face many kind of changes in order to
make effective organisation as well as found able to perform task in prominent manner. Some of
internal factors that affects the firm's operation are like:
Wastage: It can be known as the most important factor that are able to creates direct
effects on the process of production as wastage can be happened if techniques are using in proper
ways hence firm required to reduce their wastage as much as possible through optimising all
resources or helping tools in significant manner. Every company are trying to reduce their
wastage and keep utilising it in effective way as recycling the waste which helps in increasing
result. In general term waste enhance the price of production and company are trying to cover
these cost for buyers through creating pricing strategies and demands higher cost on some
particular product or services. It also affect buyers behave as customer will not interested to have
higher costing goods and it results in decline the number of sales in market place. It is essential
to minimise waste and creates quality product in respect to satisfy needs and demands of
customers.
Employee morale: Changes in market place can make effects on worker's morales cause
environmental technology and working changes which needs to opt and accept through company
so it effects on employee's morals because they are required to use different technology along
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with different structure for working that are able to motivate them and bring their working
capacity in effective manner (Brown, 2012). In the H & M firm, manager of top level and leader
are trying their best in order to motivate employee's behave for opting change and working with
it.
External factors:
External factors are all those that affects the operation and functions of a company but
they are not present in the firm but exist outside of organisation. External factors are not
controllable but manager can do its managements through using different strategies and adopts
changes. Along with it is essential to cope with change in firm. There are some external factor:
Competition: In the current scenario, market is filled by a large number of competitors as
it is difficult to be in position of strong competitors. H & M is a strong brand because large
number of customers are demanding or preferring products of H & M for satisfying the needs
and demands of buyers. There are so many competitors in the market which affect business as M
& S is the strongest competitor of this company.
P3 Measures which helps in minimising negative impact of change
Company always tries to reduce all negative affects is respect to changes that they keep
so many measures in order to reduce impacts of changes in their environment of business as M &
S are doing same things. There are so many negative affects that can pull down effectiveness of a
company as well as makes effects in order to achieve organisation goal and objective. Firm needs
to creates sound decision for opting the best strategy to face such types of situation and several
decision can be affected through external force hence there are some of measures which are
providing helps in minimising negative impact such as:
Coordination: it is essential for every firm to make collaboration with its various
departments and creates coordination with different business activity for sound working. It is
needed for an organisation to accept change and tries to coordinate with workers in changing
environment as they required to work together to achieve their determine objective.
Training: it is also a significant component which provide support to opt any types of
change in the business environment. H & M company follow this methods in order to overcome
negative impact from the firm through offering suitable training to their workers that helps in
performing well for attaining their set objective (Branson, 2010). Training provide helps to
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employees in order to improve their skills, abilities and knowledge which boost confidence and
motivate in changing.
Talk to employees: Here in, it states sound interaction with workers is playing
significant role in every enterprise as it provide helps in building trust and good relation with in
organisation. Management needs to discuss problem of employee regarding new methods for
creating innovative product according to market change and wish.
Research: majorly most of firm are using research as a tools of analysis change so the H
& M is generally having survey or research in order to know market demands and wishes, trends
and competitors and frame suitable strategy according to research process. Research helps on
collecting data and information that are useful for having successful organisation.
Technology: it is a significant factor in changing environment which can affect firm in
direct manner. H & M also needs to adopts new innovative techniques or methods in luxury
clothes manufacturing process (Parsons and Cornett, 2011). Change environment can also be
made up through technology and innovations, which helps in creating new and innovative goods
and services, methods and technologies are needed to be opted. Other side it helps in order to
reducing cost of production along with minimise wastage as much as possible through utilising
available resource in effective manner.
Task 2
P4 Different barriers which affect change and leadership decision-making
Change can be anything or significance that has to be cope up by a firm as it provides
helps in order to bring effectiveness in their performing criteria. Hurdle ca be frame between
workers as it can make firm stuck into working somewhere. In very general term Barriers are
able creates so many problems or issues in the organisation due to it some times firm have to
wind up their enterprise. Hence every business are concentrating on effective working
environment along with motivates large numbers of employees in order to their performance of
task efficiently which helps in overcoming risks and barriers in easy way.
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Lack of employees involvement: it can be a most general mistake which every firm does
that not making participation of their employees in their decision making and working conditions
(Bingham and Main, 2010). Every worker are having fear for change until they have power to
select change according to the process of firm. It is essential for a firm to get involvement of
employees and offers them chance to share their views and opinions in respect to opting of any
changes which helps development of organisation.
Lack of Effective communication: it is a negative thing that are more powerful then
others. Communication needs to be there in between employees and management which helps in
making sound decision and keep works convince for accepting change. Lack of communication
leads issues and not satisfying atmosphere in organisation (Salmela, Eriksson and Fagerström,
2012). Hence it is responsibility of the company to make communication with their workers and
avail information or data regards of changes adaptations.
Complexities: company needs to consider it at time of framing decision cause
complexities can be happen in decisions making and planning process so it give contribution as
barriers in change cause it is typical to understand for workers. Firm required to have or opt best
strategy which helps in reducing these kind of barriers that provides help in order to have growth
in business development.
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Illustration 2: Leadership
( Source: Leadership, 2018)

These all make affects on leadership and decision making process with in organisation.
Because of lack on involvement of workers in decision making process that creates problems in
opting new ideas and technology as it needed to have communicate in effective manner with
every person. H & M are concentrating on continuously enhancing their performance along with
increasing their volume of sales in competitive advantages. Hence according to change of
environment of market as buyer's preference, trends, fashion and firm requirement to match with
customer's expectation through providing them quality product and services.
Task 3
P5 Various leadership approaches which help to deal with change
These are some type of leadership approaches which facilitates helps in order to deal with
changes that are framed with in organisation. Style of leadership gives supports to company
while managing their workers and motivates them for opting change in environment of work in
effective manner (Anderson and Anderson, 2010). As leader are able to make influence and
motivate employee's behave which helps them in order to accept changes in very significant
ways and gives supports to employees for utilizing suitable technology that can makes working
easy and tries to reduce their hard work for completion task and objective. Some of the
app[roaches that helps in dealing with change in business environment as like:
Situational leadership: this is a leadership style, in which leader ensures the what types
of changes are needed along with suitable strategies that should be opted by a firm in order to
face various changes and reduce any negative affects in sound manner. Leader influence and
motivates employee for giving face off to issues in regards of change hence leader will develop
skill's of employees and boost their enthusiasm that helps them to control problematic condition
by their own (Suchman, 2011). Workers can be ready to attain any challenges and conditions in
organisation through which company will be able have their objective.
Framework leadership: here in this style of leadership, firm will launches a frame work
that provides supports in offering right path and do work effectively. It helps in bringing positive
variance with in organisation that facilitates help in order to build sound relation between
employee so that they can make coordination with each level of persons and gain determine
objective and aims. It facilitates direction to performance which they can work in effective
manner as their productivity will be enhanced in the firm.
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Transformational leadership: this kind of leadership style has been used for general and
day to day transaction of the business. In it leader confirms that all employee are working or
participating in different activities and doing their task in order to achieve determine objective
and motivates them to complete their task in prescribe time and helps in cope with change in
significant manner (Alkahtani, 2011). Hence, transformational leadership is essential for every
successful firm as this makes easy daily operations and day to day activities.
The company H&M is generally selects Situational leadership in their organisation cause
this types of leaders are mould their role and working styler in accordance of the conditions and
hurdles which helps at time of facing any changes that are occur in the organisation. They
persons have ability to convert their skills in according to work assigns to them in the firm.
Leaders of this type can helps in demands of market by knowing the needs of market along with
provides productivity in the company. Situation leaders are helping in order to grab competitive
advantages.
All these approaches of style of leadership helps in dealing with various changes in
effective manners so that leaders are playing significant role in transforming their workers in
such manner that they will get ready to adopt change in business environment. The styles of
leadership provide supports firm with changes or face challenges in internal and external
environmental factors.
CONCLUSION
From the above report, it has been concluded that changes are making impact internally
and externally of the organisation hence it is needed to handle all changes in sound manner for
achieving business objective and goals. This report is concern on two different organisation such
as H & M and M & S as how firms are dealing with change 9of environment in the market.
Some of internal and eternal factor are there which affect individual's working along with it
barriers of change that affects leadership and decision making are explained in this report.
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REFERENCES
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