Analysis of Leading Change: Zara and Primark, Leadership Report

This report delves into the critical aspects of understanding and leading organizational change, using Zara and Primark as case studies. It begins with a comparison of how these companies adapt their strategies and operations in response to various changes, including technological and structural shifts. The report then evaluates the internal and external drivers of change, analyzing their impact on leadership, team dynamics, and individual behaviors within the organizations. Furthermore, it explores remedies to mitigate the negative impacts of change on organizational behavior, followed by an examination of the barriers to change and their influence on leadership decision-making. The report concludes by discussing different leadership approaches to effectively manage and navigate organizational change, providing a comprehensive overview of the challenges and strategies involved in leading change within a business context.

Understanding and
Leading Change

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparison of various changes on an organization's strategy and operations................1
TASK 2............................................................................................................................................4
P2. Evaluation of internal and external drivers of change affecting leadership, team and
individual behaviours.............................................................................................................4
P3. Remedies to minimise negative impact of change on organizational behaviour.............6
TASK 3............................................................................................................................................7
P4. Different barriers for change and their impact on leadership decision-making...............7
TASK 4..........................................................................................................................................11
P5. Leadership approaches to deal with organizational change...........................................11
CONCLUSION..............................................................................................................................12
References:.....................................................................................................................................13

INTRODUCTION
Organisational changes are very effective system of every business organisation wherein,
leaders plays an very important role and always try to gain effective and attractive strategies in
order to make their organisation effective. Along with this leadership is the main approach of
management functions in which leaders fix their value and make appropriate decision in the
organisation (Foltin, and Keller 2012). In order to change the current scenario, leaders are the
important part for every company who has capability to take proper decision for making better
environment. Apart from this, changes are the regular part for every business by which
industries can run their business in a smooth way. That's understanding and leading change is
very essential in the every company. This present report is based on ZARA and PRIMARK.
Apart from this, changing behaviour of leadership and individuals and their barriers as well.
Effects on leadership in order to take decision making. Lastly report will discuss about the
approaches of leadership in a proper way.
TASK 1
P1. Comparison of various changes on an organization's strategy and operations
Organizational structure refers to framework which defines several ways in which
organisational activities are to be conducted in order to attain organizational goals. These
activities consist of responsibilities, duties, roles and supervision. In addition to this, flow of
information within an organisation is also included in this.
In the chosen case company selected are ZARA and PRIMARK. ZARA is a Spanish
fashion retailer company situated in Arterio in Galicia. In the year 1975 it was founded by
RosaliaMera and Amancio Ortega. Lean organizational structure is utilised by the managers of
ZARA, as it mainly emphasis on high performance of organisation. Along with this, PRIMARK
is an Irish fashion retail company (Alvesson, and Sveningsson, 2015) Its headquarter is located
in Dublin and it is subsidiary of ABF. In June 1969, its first store was established by Arthur
Ryan. Because of its various hierarchical level, company adopt tall structure. Along with this,
for carrying out operating activities company follows decentralized system.
On the basis of various drivers of change Comparison between ZARA and PRIMARK is
discussed below:-
1

Basis ZARA PRIMARK
Technological Change In order to make changes in
ordering process company uses
point-of-sale (POS) system.
Further, to check the
availability of latest designs of
products on regular basis,
company has implemented
personal digital assistant
(Anderson, 2016). Also online
store is launched by company
in order to make shopping easy
for their customers.
In order to make designer
dresses in less time with high
quality products, company start
using adopting latest
technology. As a result it leads
to reduces their defects and
increase profitability for
company. To have long term
growth and sustainability at
the competitive marketplace
company is required to
upgrade their technology as per
changing environment.
Without launching online
sites, company will reduce its
profitability as well as market
share as compared to their
other competitors.
Technology Adopted Company executed mobile
augmented reality app as a
promotional tool in 120 stores.
Along with this, company use
a technology which is
“location intelligence”. With
the help of this technology
company can easily track
footfall and lack of availability
Company have implemented
different software's in order to
maintain performance of the
company. According to the
technological change,
company adopt different
software's, these are
performance management
software and many more.
2

of stock in stores.
Structural Change Company has gone for
vertical integration with
manufacturers to introduce
new products in less time. The
online website has boosted the
sales especially in Europe.
Control policy has been
executed to make product with
higher quality and easy to
manipulate. Also, it has join
hands together with a
California-based Fetch
Robotics to use artificial
intelligence for managing the
inventory of stocks.
In order to increase its overall
sales revenue company expand
its business in US and France.
As a result companies annual
sales will increase by 17%.
Main objective behind this
expansion is to keep their
prices low for products
( Aslan, and Reigeluth, 2013)
At present, company has
around 350 stores and planning
to open more in the near
future.
Differences in Organizational Approaches to Change
In the present report, the above mentioned companies are operating within the same
industry but facing various issues related with organizational structure. ZARA maintain
flexibility in its design and have strategical agreements with domestic manufacturers for
delivery of products and services on proper time. For this company is required to analyse the
market trends. On the hand hand, PRIMARK mainly focus on targeting consumers from the age
group of 20 to 35 years and provide products in lower prices as compare to their competitors
Company adopt “cost leadership” strategy. Along with this, company have a separated team in
order to study current fashion trends across the world (Blewitt, 2012)
Similarities in Organizational Approaches to Change
As both countries operate within same industry so it is very obvious to have similarities
between them. ZARA and PRIMARK both carry out their various operational functions in retail
sector. As a result, trends and approaches followed by both the companies are similar all time.
Also, both the company shares same aim and objective which helps to maintain long-term
3

survival at the competitive marketplace. In order to fulfil customer's requirements it is important
to provide them with high quality products.
TASK 2
P2. Evaluation of internal and external drivers of change affecting leadership, team and
individual behaviours
Organisation changes are the very much effective and important part in every business.
As per this, manager from the organisations can take participate in the every activity of the
business firm and also able to develop plan properly. Changes are the very good factor for every
company in order to gain competitive advantages in a proper way. Generally, changes are the
adopted by team members and employees of the firm by which they can achieve better
opportunities for future. Some times changes can create negativity in the company like pressures
from the higher authorities, new modifications and few techniques and tools.
Drivers of change: It mainly refers to those factors who always gives positive impact
within the organisation. On the basis of this company's members adopt new things in order to
change the value of an organisation effectively. This concept mainly raise when internal or
external factors comes together in the company. These kind of factors properly involves in the
several aspects like managers, leaders, employee’s and so on. Wherein, leaders are mainly
responsible to take appropriate decision in regards with an organisation. In order to make more
and much effective leaders develop effective policies and laws to accomplish goals towards the
company (Azanza and et. al., 2013) There are several kinds of drivers of changes which impact
on the leadership behaviour, individual as well as team behaviour, are mentioned below:
Internal factors and their impact:
These type of factors mainly generate in the company and basically controlled by the
manager of an organisation. That's why there are few internal factors, those are given below:
Organizational culture- It includes in the different kind of values, norms, beliefs and
working situation of the employee’s within the organisation. All these factors having good
impact on the employee’s behaviour in order to make good strategical decision in an effective
manner. Somewhere, it has negative impact on the profitability of firm, employee’s turnover and
so on. In reference to the Zara, it was declared that every people will take decision as per the
4

current demand of customer's in a proper way. On the basis of this they can get long term goals
for future. On the other side, PRIMARK gives very effective salary package to their employees
so that they worked properly and able to gain their target in the organisation.
Poor Delivery- According to this, company faces lots of issues in relation with their
product quality and services so that it is a negative impact on the company and employee’s.
Therefore, companies are required to have proper goods and delivering system so that customer's
can get more satisfied (Cullen and et. al., 2014). In regards with ZARA, consumer's are not able
to getting their delivering of goods on time so that it affects negatively. Wherein, PRIMARK,
sell better quality of goods to their product and gives satisfaction to them.
Financial Management- In terms of financial management, it is the sort of development
of every company by which they can get more profit in the competitive world. Therefore,
decisions are mainly based on the effective classifying of budget in order to buying power of
consumer's towards clothings and so on. In reference to ZARA, managers are required to
concentrate on their quality and low prices strategies of products so that customer's can easily get
their selected product at affordable price. In the case of PRIMARK they generally made large
investments of money in order to achieve their particular goals positively.
External forces and their impact
These are those forces which is developed by the external agents that is based on the
outside systems form the organisation. On the other hand, external sources are mainly generate in
the external people who are not working in the organisation. For this managers and leaders are
the responsible to manage their negative effects from the company. Therefore, there are few
changes that is based on the external pressure, listed below:
Technological Change- As per the current time technology advancements is growing
rapidly which affects the society's environment effectively. Therefore, each and every company
needed to have proper techniques and tools for resolving their issues in a proper way. In context
with ZARA and PRIMARK, they are always trying to make effective technologies in their
outlets in order to impress customer's so that they can achieve higher sales for future (Brown,
2012) Therefore, technological advancements are much necessary for each organisation. It also
helps to companies in order to build strong relationship with other organisation in a perfect way.
Globalization- It refers to the changes in the business firms globally. In order to achieve
competitive advantages company needs to follow effective tools. In reference with the both
5

companies ZARA and PRIMARK as they are very famous brand but they are also required to
adopt effective changes in order to gain higher sales and revenue in a proper manner. For making
better condition in front of others companies are needed to follow modern trend within the UK.
Impact on leader, individual and team:
These factors are affecting leaders, team and individual behaviour just because as leaders
are decision maker so it changes their mind set effectively. Wherein, individuals affected by the
changing environment in the organisation. According to the team members, these factors develop
new ideas so that they are required to follow them.
P3. Remedies to minimise negative impact of change on organizational behaviour
Organisational factor influenced working business environment. There are two main factor that
effect the business which are internal and external. Such effects can be positive and negative
(Cummings, and Worley, 2014) As a result all the factors can affect the day to day operational
activities of the company which can affect the growth and profitability of the business. ZARA
and PRIMARK can adopt BrukeLitwin Model in order to change in working environment of the
business
In 1992, BrukeLitwin intruded this model. This model is developed to understand the
various parts of the business. This model was used by many companies to know about the
interrelation and affects in business .
 External environment- The external environment includes market area, competitors
and many more. The company managers should understand the significance of
external environment in the organisation. ZARA and PRIMARK main target is
provide best product quality service to its customer's.
 Mission and Strategy – Every company has its own missions and strategies to
achieve its goals and targets of the company. Markers make certain market strategies
and evaluate , implement them for future goals. ZARA and PRIMARK are also
formulating different marketing strategies to achieve the demands of the customer
and trying to implement them for customers satisfaction.
 Leadership- Leaders attitude and styles can influence the business growth because
leading any company and the team members is one the biggest task, leaders set an
example to their employees by guiding them. ZARA and PARIMARK is one of the
6

well known brand and which is leading company for many rivals in the market. Thus
effective leadership styles and polices gained the competitive market.
 Organizational Culture- Organisation cultures and value can affect the business
environment. Company has its norms and believes that has to be followed by the
employees (Doppelt, 2017). Managers of the company has to keep in mind about
other countries cultures and values and has to interpret according to situation then
only international relations can be maintained by the company.
 Structure- Company structure has to be updated according to the technology
changes, restructuring can help to build strong relationships and responsibilities.
Managers of ZARA and PRIMARK should understand the market changes and
different factors that can affect the business operations from which certain strategies
can achieve the customers expectation.
 Task and individual abilities- Modification of the company can leads to greater
achievement because changing style of the working environment can create positive
atmosphere. In context to both the company should understand that recruiting the
right person to the right job can achieve the goals of the company.
 Employee Motivation- Employees motivation is one of the important part of the
organisation so that they can achieve their targets and goal because motivation can
create the healthy environment and positive wipes in the company, goals of the
company can only be achieved through motivated employees. In the organisation
leaders play an important role, team can only be motivated when leaders are
motivated . So for both the companies managers of the organisation should conduct
the motivation sessions to encourage their employees.
TASK 3
P4. Different barriers for change and their impact on leadership decision-making
With the help of proper understanding of change, managementteam of the organization
willbe able to develop effective strategies which as a result aid them in order to evaluate and
implement changes within the company. Change refersto a continuous process andis very
important in each and every aspect of the enterprise. In the present context of ZARA and
PRIMARKmajor aim ofthe top authority of the company is to adopt change within the
7

functionality of business. This as a result aid them by enhancing their performance and maintain
their sustainability for a longer period of time at the competitive marketplace.
Barriers of change management: There are various types of changes occur within the
organization but it is not essential for every employee working in the company to adopt the
change effectively (MacKian and Simons, 2013). Therefore, it creates barriers regarding
change culture within the enterprise. Apart from this, barriers develop gap whichcreates negative
brand image of the organization in front of customers which affects the functioning of ZARA
and PRIMARK. Some of the barriers regarding change management are going to be discussed
below:
Lack of Involvementemployees:
In change management one of the most important barriers is employees are lack involved
in the functioning of organization. In every organization large number of staff members resist
change and believe that it is a negative approach . Apart from this, they have a fear where they
think that they will get replaced from the company. In thepresent of ZARA and PRIMARK,
thereare some loyal and faithful employees working within the company from last many years
which develop a feeling of fear in them. Reason behind this is that employees are less involved
in the strategy formulation and decision making process. Therefore, it affects the overall process
of decision as well as performance of company at the competitive marketplace.
Lack of Proper Communication Strategy:
In the competitive world, there are ample number of companies whohave ineffective
communication strategies within there organisation. This as a result shows that managers of the
company is unable to communicate their strategies and policies to their staff members. In case of
ZARA and PRIMARK, toplevel executives as well as managers of the company once any kind
of changes implemented within the organization, staff members will adopt it easily.Apart from
this, they need to communicate each and every change adopted by top management teams
properly so that other employees will be able to adopt changes effectively.
Along with the above mentioned, Force field Model of change management hasalso been
discussed in this report which are as follows:
Force Field Analysis:In order to examine or study change management, it is one of the key
approach used by ample number of managers within their organisation. It refers to the approach
developed by Professor Kurt Lewin. Force field analysis approach consist of five steps with the
8

help of which managers and leaders motivate staff members in order to accept change
management. All these phases are going to be discussed below one by one:
Phase 1: In the first and foremost stage, managers and leaders of the company examining
the existing market environment with the help of effective tools. With the help of this managers
of ZARA and PRIMARK willbe able to measure requirements and demands of change as well as
analyse where change are required.
Phase 2: Each and every change implemented in the organization involve some risk.
Thus, in the second phase of force field analysis managers as well as leaders determine the level
of risk while implementing any change (Yılmaz and Kılıçoğlu, 2013). In the context of ZARA
and PRIMARK managementteam adopt some strategies with the help of which they will be able
to reduce risk involved within the change.
Phase 3: Underthis stage of force field analysis approach, top level executives of ZARA
and PRIMARK examinethe necessary areas where changes or modifications are required. Along
with this, they can also assess how these changes are created within the organization.
Phase 4: It refers to the second last phase of this model where managers and leaders of
ZARA and PRIMARKdevelop the action plan effectively and within the given time period.
Along with this, it also includes modification of the whole process.
Phase 5: Under the last stage of this model, managers and top executives of ZARA and
PRIMARK evaluate and examine their current policies and strategies. Apart from the evaluation,
it is also required to develop effective changes on the basis of requirements and demands.
Force field Model includesfacilitating and restrainingelements of change which aregoing to be
discussed below in detail:
Facilitating Factors: Itrefers to those factors or elements available within the
organization as well as outside the business environment and motivate to adopt changes
effectively. Under this, elements involved are outdated technologies which are ineffective to
produce desirable profitability. In addition to this, decrease in moral of employees are also
required to bring changes within the company. These are the factors which highly influence
leadership of ZARA and PRIMARK, as leaders have the responsibility to communicate
requirement of change in the company.
Restraining Factors: Itrefers to those elements available in the organization as well as
outside the environment and motivate the management team to bring changes in the
9