BUS317: Leading and Understanding Change - Final Report

This report provides a detailed analysis of change management within organizations, focusing on case studies of Hennes & Mauritz AB (H&M) and Travelodge Hotels Limited. The report explores various aspects of change, including drivers of change, internal and external factors, and their impacts on organizational strategy and operations. A SWOT analysis is conducted to identify strengths, weaknesses, opportunities, and threats for both companies, followed by an examination of how change affects leadership, individual behavior, and team dynamics. The report also applies the Force Field Analysis to assess change dynamics, barriers to change, and leadership approaches. Finally, the report discusses the advantages and disadvantages of different leadership approaches in dealing with change and provides recommendations for minimizing negative impacts. The report aims to provide a comprehensive understanding of change management principles and their practical application in real-world business scenarios.

317 Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
SCENARIO 1...................................................................................................................................1
1. Introduction to drivers along with impacts of change and it affects on the organizational
strategy.........................................................................................................................................1
2. Overview of case study of organization...................................................................................2
3. SWOT analysis to identifying drivers of change……………………………………………3
4. Analysing impact of change and effects on the organisation’s strategy and operations.........4
5. Evaluating change impact on the leadership, individuals and team behaviour.......................5
6. Defining ways of minimising impact of change with application of model…………………5
SCENARIO 2...................................................................................................................................5
1. Introduction to the case study of Travelodge Hotels Limited..................................................5
2. Application of Force Field Analysis........................................................................................6
3. Different barriers to change and their impact on decision making and leadership..................7
4. Accomplishment of change and their success.........................................................................7
5. Advantages and disadvantages of different leadership approaches in dealing with change ...9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
For every business organization it is very much important to adopt new and better improved
business polices and techniques for smooth functioning of its business operations. For bringing
in required changes and modification it is first important to have better understanding and
knowledge of all crucial factors which will help the company in performing effectively. The
present report is based on Hennes & Mauritz AB (H&M) which is a multinational company
operating in the retail sector of clothing industry in Sweden. The another business organization
chosen for this report is Travelodge Hotels Limited, a private business firm engaged in
hospitality and hotel business industry across the United Kingdom. This report will provide brief
insight related to factors which impacts changes and affects organizational strategy as well
operations. Furthermore, report will provide detail analysis related to changes taking place in the
organisations with the help of SWOT Analysis. It will provide explanation related to application
use of force field analysis for determining opposition and change support. Further, it will define
the manner in which changes can be accomplished and its success journey. At last, the report will
discuss advantages and disadvantages of different leadership approach to deal with such changes.
MAIN BODY
SCENARIO 1
1. Introduction to drivers along with impacts of change and it affects on the organizational
strategy.
Organisation change is defined as a business process which is related with change being
made in the strategies, processes, operations, techniques for the betterment of the business goals
and objectives. It helps company in improving its overall business as well as employee
productivity and profitability level to a large extent which in turn helps in increase in acquisition
of market share. By considering all the market opportunities, every business organization can
take benefits of competitive edge as prevailing in the market. Following are the types of changes
which has to be considered at the time of formulation of new business related plans and
strategies:
1. Internal changes – Are those changes which comes from inside the business
organization. Internal changes in business working and operations can be result of
number of factors which is creating influencing impact. These factors are:
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1. Managerial change – Any change in the managerial personnel can affect the overall business
performance as the new manager will come up with his ideas and concepts, emphasizing on his
working methodology (Barsade and Knight, 2015).
2. Change in operative personnel – Due to better educational qualification and knowledge
base, focus has been made more on human values, beliefs for providing better working
conditions to workers as well.
3. Employee attitude and behaviour – With change in behaviour and attitude of company's
employees it can impact their morale and productivity which in turn brings change in the overall
business performance and profit margin.
2. External changes – Factors which affects the working of business organization
externally and can't be controlled by company itself. It includes factors such as political
forces & policies, technological modification, change in social and human belief,
competitor policies etc. All these forces has to assess on time for overcoming any loss or
damages to business (Feldman and et.al., 2016). With changes in company working, it
affects all the business plans, strategies and standards made. For seeking competitive
advantage and market opportunities, it is very much essential for H&M and Travelodge
company to focus on its internal as well as external business environment. All these
factors has to be studied and assessed with the help of proper management and business
plan for mitigating any loss associated with it in the near future.
2. Overview of case study of organization.
Travelodge Hotels Limited is one of the multinational private company which is
operating in the hospitality and hotel sector business industry established in year 1985. It is
having its headquarter in the United Kingdom with revenue margin of £637.1 million and net
income of £27.0 million. This business organisation is providing employment to around 11000
employees including both full and part - time option. The change come in Travelodge is related
to Financial restructuring process adopted in the year 2012 made with the help of Bailout
takeover process as it is having large debt of £478 millions. The ownership has been passed to
New York based hedge funds Golden Tree Asset Management and Avenue Capital Group. Also,
statement has been made by company that it has not been able to operate 49 hotels for which new
operators are needed.
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Hennes & Mauritz AB(H&M)is a Swedish multinational retail clothing company having
its business operations in 62 countries with more than 4500 stores and 132000 employees. It is
rendering its services via online mode in 33 countries. The company is facing problem related to
size of clothes and shoes in which it is dealing. It has not been able to deliver right size as per its
customer requirement, thus resulting in business loss and decrease in customer retention level.
3. SWOT analysis to identifying drivers of change.
SWOT Analysis is a business practice which can be undertaken by many business
organisation with the aim of identifying all its core business strengths, weaknesses, threats and
opportunities on the internal and external level. By undertaking this analysis Travelodge and
H&M can evaluates all its internal and external business opportunities and strengths which can
assist in increasing its market share. Also, by identifying threats and weaknesses at proper time
these companies can takes measures for improving it with formulation of advanced and better
improved options.
SWOT OF TRAVELODGE -
1. Strengths – The main business strength of this industry is that it provides hotel rooms at
affordable prices along with facility such as free wi-fi, television, iron etc. to its
customers. Offers convenient as well as quick booking option to all its business travellers
with the help of Travelodge Business Account card. Also, it focuses on sustainable
business practices by fulfilling its environment friendly customer needs. This help it in
gaining competitive edge in the market.
2. Weaknesses – It lacks luxury services and products which is offered by other high profile
and luxurious hotel industry. This provides Travelodge which increases market
competition for it and affects its business performance and profitability.
3. Opportunities – It can expand its business operations across the world in countries where
it is not conducting its business operations earlier. By using globalized economy factor,
Travelodge can initiate its business in countries such as Europe etc. Also, it can enter into
partnership and joint venture business for seeking large market as well as customer share.
4. Threats – Operating in UK and Ireland market can't provide any future business growth
and success for long time because of many rivalry business firms. Also, it should improve
its hospitality services by including more options by understanding customer needs can
help in mitigating business loss.
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SWOT OF H&M
1. Strength – It is having strong dealer community along with effective distributor channels
which helps the company in promoting its business products and services having new and
innovative features by providing brief explanation of its benefits to its customer. It is also
having surplus and free cash flow which can be used for business expansion by its high
skilled and qualified workforce.
2. Weaknesses – Its biggest weakness is that it is not able to enter into different business
product and service segment, market for making more profit. Also, it needs to adopt new
and better improved technologies, concepts for improving its business production level
by making effective financial plan (Singh and et.al., 2018).
3. Opportunities – It can increase its customer base by conducting its business via online
service across the world. By implementing new technology, it can practice different types
of pricing strategies in new segment market.
4. Threats – One of the threat is its skilled workforce shortage which is affecting its market
share. Also, because of intense competition it has affected its profitability and supply
chain.
4. Analysing impact of change and effects on the organisation’s strategy and operations.
By initiating change process in the business organisation processes, it results in
improving the overall business as well as employee performance level. All the internal and
external factors related to business operations having influencing impact on it should be
considered for making more profit. Following are the impact of change on businesses of H&M
and Travelodge:
1. Increase in customer as well as profit base – With the change in the working of
business operations and culture of both the business organization, it has resulted in
improvement in the performance of both business operations and its employees as well.
Thus, it helps them in increasing their customer base resulting in high profitability
(Simmons, 2017).
2. Market share – By adopting new and better improved techniques, business concepts,
standards as used by other profit making company can help in increasing its sales margin
and market share as well.
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3. Product development – By implementation of new business procedures, H&M and
Travelodge can bring changes in its product quality and design. Also, it can help them
with coming up of new and innovative product.
4. Employee resistance – Sometime, changes are not welcomed by all the employees and
team members because of their habit of using existing business processes and concepts.
This results in resistance for change.
Effect on the organisation’s strategy and operations can be in form of organising of new
training sessions, defining of quality standards, formulation of new business plans and strategies
in line with new changes. The changes can help in introducing competitive power and
advantages along with wide business opportunities for both the entity so as to create a healthy
competition with its rivalry firms for gaining large market as well as customer base.
5. Evaluating change impact on the leadership, individuals and team behaviour.
Any change in organization or its business processes can bring major impact on each
aspect of business including its leadership style, behaviour and performance of individual
employees and team members. Such changes can have both positive and negative impact on the
performance and productivity of both the business organization named as H&M and Travelodge.
Following are the impact of changes on:
1. Leadership – By implementing required and relevant changes in business strategies
and plans, adequate changes has to be made in leadership style as well for the
betterment of business operations and performance. Style of leadership should be
adopted in line with business goals and objectives. Leaders have to formulate new
and best business policies and plans which can benefit performance of company by
increasing its sales margin and customer base (Osland, Devine and Turner, 2015).
2. Individuals & Team behavior – By implementing any change in business practice,
culture, concept or procedure, it impact morale and productivity of employees. Most
of the employees resist to follow and adopt changes as they are having inadequate
knowledge and understanding of it. Also, because of habitual with current business
practices resistance is made from employee side related to implementation of changes
in H&M and Travelodge business. Forceful application of change thus can bring
change in their behavior and job satisfaction level thereby reducing overall business
efficiency.
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6. Defining ways of minimising impact of change with application of model.
For minimizing the negative impact of changes on the performance of business
organisation, proper and effective business strategies and plans can be made as per the business
requirements for a relevant time period in line with the business goals and objectives. By
implementing quality change, it can help H&M and Travelodge in conducting its business
operations smoothly thereby attaining its business goals successfully. Kurt Lewin model can be
used for understanding quality changes-
1. Unfreeze – This category of employees in both the organisations resist to change for
those strategies and plans which they don't have knowledge and understanding. They
prefer using same theories and concepts which they know instead of adopting new
changes.
2. Changing – On having better understanding of the new process and procedures, change
can been implemented accordingly for betterment of business and its productivity and
profitability as a whole (Meissner,, Erlenwein and Stamer, 2018).
3. Freezing – The new business processes or change as implemented for making
improvement in the business and employee performance requires to be freeze for
continuous as well as future business use.
SCENARIO 2
1. Introduction to the case study of Travelodge Hotels Limited
Travelodge Hotels limited is a company who are working under the hospitality industry.
It is one of the largest hotel company behind the Premier Inn in terms of numbers of hotels and
numbers of bedrooms. There are various external and internal factors which impact the
company's operations and profitability. In order to reduce the impact, company has to do change
in their aspects which can improve the performance of the company. One of the major change
company has gone through in year 2011-12 during financial restriction. In year 2011, company
recorded a debt of £517 million due to non payment of debt on time. In year 2012, company
went through the financial restructuring in order to improve its financial position. Financial
restructuring went through the company voluntary agreement in which the ownership of the
company transferred to the Avenue capital group and New York based hedge funds Golden Tree
Asset management as well as Goldman Sachs (Hayes, 2018). Due to transfer of ownership of the
Travelodge to another companies, there has been a lot of changes in the company's various
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aspects which lead some employees to do opposition of it and due to this financial changes,
company's financial position and profitability is improving which is benefits for the company as
well as its related parties.
2. Application of Force Field Analysis
Force Field Analysis is a change management and decision making tools which was
developed by Kurt Lewin in year 1951. It is mainly used as a decision making tools in order to
successfully planning and implementing the change management in the organization. It is
considered to the best method used by various organizations for the purpose of analysing various
driving forces to the changes (Verhulst and Lambrechts, 2015). With the help of this analysis
method, company are able to get to know about the strengths and weaknesses of the various
forces which helps company to easily manage and implement the change in the context of
organization.
Force Field Analysis of the Travelodge Hotels Limited
Force Field Analysis of Travelodge Hotels Limited Company are as follows -
DRIVING FORCES
Driving forces are those forces which lead company to feel the needs of the financial
restructuring change. These driving forces are as follows -
Goodwill - Due to high debt amount, Company's balance sheet has more liabilities as compared
to the assets which lead to bad impression of the company on investors, customers, public and
another interested parties. This will hamper the goodwill of the company. Thus, this is the major
driving force, company will ready to go through the changes in order to improve its brand image
and enhance its goodwill value (Cook, 2015).
Competition – Due to high debt, Company's profitability are decreasing which lead company to
face a lot of competition in the market. It also impacts the competitive position of the company.
Thus, in order to maintain its position in market and gain competitive advantages over another
competitors, Company is ready to accept and implement the change.
RESTRAINING FORCES
Restraining forces are those forces which make company to face a lot of opposition
against changes. These forces are as follows -
Lack of Staff Overtime – Staff overtime refers to the term in which an employee do work by
exceed their working hours and in the against of exceeding the working hour, they get extra pay.
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Due to financial restructuring, Staffs has to do work more than their working hours but company
are not ready to pay extra which lead staffs not to do their work more than working hours. Thus,
for the change implementation in company, Lack of Staff Overtime is becoming restraining
force.
New Organizational Policies – Due to financial restructuring, Company has to transfer their
ownership to another company which lead to change in organizational policy. Thus, employees
and staffs of the organization are not ready to accept the change due to change in organizational
environment, working style and organizational procedures which make it restraining force.
3. Different barriers to change and their impact on decision making and leadership
There are various barriers which is facing by Travelodge Company for the adaption and
implementation of the change in the organisation. These barriers are as follows -
Lack of Employees' assistance – Due to new business policy and style implementation by
another companies on Travelodge, Employees are afraid to accept the new working style and
leaving the organisation which increase their employees turnover rate as well (Lozano,
Ceulemans and Seatter, 2015). Due to lack of compromise done by employees, Company are not
properly implement the change in the organisation. Here, Leaders of the company will take
decisions regarding the motivation of employees by giving them rewards and recognition. Also,
leader will also take decisions regarding their training program in which focus will be on new
policies and working procedures.
Lack of Funds – Due to lack of funds available in the organisation, Travelodge are facing barrier
in implementing new change in their business. Leaders of the company will motivate their
employees to do work in efficient manner without wasting any resources. Company will take
decision on the arrangement of more funds from various sources.
4. Accomplishment of change and their success
For the accomplishment of the financial restructuring change in the organization and
make this change successful, Company will use Kotter's Change Management Model which was
developed by John Kotter. In this model of change management, there are 8 steps through which
Company has to go (Morin and et.al., 2016). These 8 steps are as follows -
Create a sense of Urgency – The first step states that Travelogde Organization need to create and
make employees aware about the needs of financial restructuring change and its benefits to the
company. This will help organisation to get the support from employees.
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Build the team – Next step stated that company are required to build a change team who will
work on the financial restructuring and their implementation in the organisation as it is a long
process and it requires experts. Here, Company along with sharing companies will appoint
experts and employees who will work with them as a team to take the restructuring forward.
Develop the vision – After building change management team, next step stated that Company
need to develop a vision for the better work direction. Here company will develop the vision
with the assistance of management team in order to clear understand about the whole process,
procedures, time and requirements so that they can work on the change and provide team timely
assistance.
Communicate the vision – After creating the vision for financial restructuring chnage, Next step
stated by the model is to communicate the vision with all the teams, staffs, employees and related
parties of the Travelodge (Lozano, Nummert and Ceulemans, 2016). Here, company will
communicate the vision with Staffs, employees and teams for the purpose of get the support from
them to make compromise without any restrained from them and implement the restructuring
procedure successfully.
Take actions to remove obstacles – Next process after communicating the vision is to remove the
obstacles and restrains which are created by the employees and another forces which comes from
internal and external environment of the Travelodge. Here managers, change management team,
experts and leaders will take appropriate actions against the obstacles and restrains in order to
make financial restructuring change successful in the context of organisation.
Create short term wins – Next step involve in this model after removing obstacles is to create
short term wins and celebrations. Here Travelodge along with another companies will crack-up
the vision into short term goals and objectives and try to attain them by taking appropriate
actions and follow proper procedures. In case they successfully accomplish their goals and
objectives, they must celebrate it together in order to motivate them.
Don't let up – Next step in the Kotter's Change management model is to don't let up. Here it
means that Travelodge should always look forwards towards the improvement in their financial
position and for that they need to keep them upgrade by implementing the required changes.
Anchor the changes – The last and 8th step of change management model of Kotter is to always
stick the change to the organisation. In case of Travelodge Organisation, employees must have
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required to understand the needs of change in the context of their organization and try to adopt
the change on timely without making any kind of delay (Hornstein, 2015).
The change was successfully implemented in the context of Travelodge Hotels Limited.
This success can be measure by various ways such as taking feedback from management &
experts, looking at the liability side of the balance sheet of company and use various financial
ratios to calculate the credibility and profitability of the company etc.
5. Advantages and disadvantages of different leadership approaches in dealing with change
Situational Leadership Approach – Situation leadership approach states that there are no perfect
leadership style due to its different features, advantages and disadvantage which will affect the
situation differently.
Leaders of the Travelodge Hotels Limited Company will adopt the situational leadership
approach. In this approach, they analysis the situation and accordingly try to understand the
reactions of employees. After understanding the reactions, he will find that there are two types of
employees – one who are agreed with financial restructuring change and another one – who are
against it. He will adopt the leadership style with both group of employees differently in order to
motivate them in different ways.
ADVANTAGE
It brings flexibility in the organisation which lead to creation of relationship and
coordination between employees and management which is benefit for the purpose of
implementation of change in the Travelodge organisation (Cameron and Green, 2015).
DISADVANTAGE
This type of leadership focus on the current situation and accordingly motivate the
employees which lead to shift attention from the long term goals of the Travelodge regarding
financial restructuring change.
Transformational Leadership Approach – In this approach, Leaders of the company do motivate
their employees to think innovative and out of box in order to bring change in the organisation
and enhance the creativity of the organisation.
In the case of Travelodge Company, Leaders of the company will encourage the
employees to think about how to work on new working policies and motivate them by
recognitions in case any employees suggest something.
ADVANTAGE
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