Analysis of Change Management Strategies at LO'real: Report

This report examines change management strategies at LO'real, a leading personal care company. It begins with an introduction to the drivers and impacts of change, analyzing how these factors affect firm strategy and operations, using both internal and external examples. The report includes a PEST/SWOT analysis to identify drivers of change in the cosmetic industry and assesses the effects of change on teams, leadership, and individual behavior within LO'real. Part 2 focuses on LO'real, applying force field analysis to determine support and opposition to change, and discussing barriers to change's influence on decision-making and leadership. The report also evaluates the success of various change models and leadership approaches, providing advantages and disadvantages of each, and offers a conclusion. The report is based on information available up to the time of its creation.

Understanding And
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1 ...........................................................................................................................................1
1) Introduction to drivers and impact of change and how they are affecting firms strategy and
operations. ..................................................................................................................................1
2) Overview of an organization case studies...............................................................................2
3) PEST/ SWOT analysis is carried out to identify drivers of change in an business. ..............2
4) Analysis for each firm on the impact of change and the effects.............................................4
5) Examine how changes will affect team, leadership and individuals behaviour.....................4
6) Evaluate the impact of changes and the applications of models to process change. ............5
PART 2............................................................................................................................................6
1) Introduction LO'real organization...........................................................................................6
2) Applications of force field analysis to determine opposition and support for change...........6
3) Explain various barriers to change and how they affect decision making and leadership. . . .7
4) Explain how change accomplished by using models and how are much successful they are.
.....................................................................................................................................................8
5)Advantages and disadvantages of leadership approaches. ......................................................8
CONCLUSIONS..............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Changes in business means any organisation associates undergoing transformation in its
working environment so, that productive results can be seen in the competitive world. Changes
are important in an organization as it helps in smooth functioning of the firm. If changes are not
carried out in a business operation then gradually company will be out from the cut throat
competitive market. This report is based on LO'real company which is a personal care firm. It's
headquarter is in Clichy with registered office in Paris. It is the largest cosmetic brand and deals
in skin care, hair colour, make-up, sun protection, perfumes etc. It covers comparison between
various organizational examples and how changes have affected its operations and strategies. .
Additionally, examine certain measures to minimise negative impact on the company. Moreover,
barriers are determined to influence leadership decision making process. It throws light on
leadership approaches to deal with changes carried out in a business operations.
PART 1
1) Introduction to drivers and impact of change and how they are affecting firm strategy and
operations.
Change drivers is an internal and external pressures such as resources, customers,
technology, inventions, government, capabilities etc. which helps to shape change to a business
associates. The drivers of changes in LO'real and Maybelline are explained as follows:
Internal drivers of change:
Resources: Changes in surroundings has made the LO'real to use resources at optimum
level So, that firm can sustain in the market. By choosing changes in firms the framed strategies
were turned into technological and implemented tools which can recycle cosmetic goods. The
operation's of the company became faster by adopting to this change in the business. It helped in
meeting goals on desired time frame. Maybeline is using modern tools but the employees are nit
sufficient enough to use the available resources at optimum level. Due to which the resources are
not effectively used and are not able to meet set goals on time. Which is indirectly affecting
business operation's and strategies policies and are getting complex in nature. Due to which
resources are wasteage at a large scale.
Inventions: LO'real is adopting to the changes taking place in the surroundings. Firm
focuses on continuous inventions in product to meet the needs of the customers. By this
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strategies which changed and they planned to spread hands in different sectors like, make-up,
hair colour, Shampoo etc. Changes also affected the business operations as they become more
complex and slowed down as managing different sectors is a big challenge. Maybeline is coming
up with innovate products in the market but the strategies used are not sufficient enough to
compete with Lo'real. If proper strategies for innovation product is not implemented it leads to
slow down the operation activities. It indirectly decrease the market value of the brand.
External drivers of changes:
Customers: Customers needs changes frequently to meet their demands LO'real firm
needs to adopt to the dynamic changes. Dynamic changes has made the business operations more
faster and quicker to cope up with the changes. Whereas, companies strategies need to be
changed accordingly by which productive results can not be seen. Maybeline need to spend more
on research and development so that customers demand can be figured out in the global market.
Due to this operations and marketing strategies are slowed down and less profits is generated as
compared to LO'real.
Technology: LO'real is adopting modern technologies to meet the emerging needs of the
customers. By using high rated technology the business operations are getting faster which
helped the business associates to manage all the inventory stocks accordingly. The strategies are
becoming complex in nature due to which employees retention has raised at tremendous scale.
Maybeline is using modern technologies but the employees are not efficient enough to use in
productive way due to which outcomes are less and sales volume decreases. It raise customer
switching ratio as demands are not meet on time.
2) Overview of an organization case studies
In this case study training is provided to the people to become a successful business
analyst in LO'real firm which is multinational personal care company. It focusses on how drivers
of changes has affected business operations and strategies in market place. Swot analysis is done
to better understand the market scenario and evaluation is done in order to study the effects on
team, leadership behaviours. Here, certain theories are also adopted so that smooth functioning
of the business operations can be carried out.
Maybeline is a American make-up brand and it's baeuty products are sold across the
globe. It was founded by Thomas Lyle Williams in the year 1915. it's headquarter is in New
York, United Sates. This organization is dealing in around 200 products across the globe. It is
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serving it's services in 129 countries with various beauty product for the customers. Here, are
some of the products of the organization which are, Maybelline baby lipstick, Maybelline
colossal kajal, liner etc.
3) PEST/ SWOT analysis is carried out to identify drivers of change in an business.
PEST is done in organization to better understand the external factors like political,
economic, social and technological factors so, that accordingly firm can plan strategies to
explore business across the boundaries. Whereas, SWOT analysis is done to figure out firm
strengths, weaknesses, opportunities and threat in the market place. Here, PEST/ SWOT analysis
are done to figure out drivers to changes in LO'real and Maybelline cosmetic firm which are
explained below:
Political factor: A bill named as Personal care product Safety Act is introduced by the
governing bodies. If LO'real firm uses this in their operations then customers will have more
faith and trust for the brand globally. It will also affect the strategies planned by the business as
product need to made keeping in mind the terms and policies framed in the Act. By this
operations become slow every now and then governing bodies interfere their working criteria.
Maybelline should do more research on political factor before entering in to the market so that
huge market ratio can be garbed accordingly. To bit LO'real company organization need to
deeply study the political factor in order to create brand imager in the market. The operation's
and strategies are also getting affected in negative aspects.
Economic factor: This includes policies, taxes rate, interest rates, labour cost etc. by
adopting all this wisely in LO'real business then good will can be created in the eyes of the
customers. This changes affect the strategies designed for the product as prices of the product or
services needs to be changed according top the taxes rate, interest rate etc. ordered by the
governing bodies. By this business operations also, slows down in the market.
Social factor: It helps the LO'real firm to study the customers needs and preferences ion
the market. Company should work for the betterment of the society so that brand recognition can
be done globally. By this drivers of changes the firms operations are affected positively and are
motivated to work effectively and efficiently. Whereas, strategies need to changed by which it
gets easier to understand and implement. Maybelline should focus more to uplift the living
standard in the community in order to create goodwill in the market as well as brand recognition.
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By carrying out such activities I the market firms operations and strategies are getting modified
from earlier days which is positive sign for the company.
Technological factor: By using modern technological tools LO'real organization is able
to meet the needs of the customers. This has affected the business operations greatly as it
incurred huge cost for purchasing the machinery. The strategies has changed as huge funds are
invested in machinery tools so that growth and expansion can be faster accordingly in the
market. Maybelline should hire efficient staff to use modern technology in order to raise
productivity level. Business operations and strategies are getting complex as the objectives or
goals are not cleared top the employees.
SWOT analysis:
Strengths: LO'real firms strengths is that it does continuous research and development to
come up with innovative product. Due to which customer base can be raised. This helps the
business to bit it's competitors in the market. The business operations gets affected tremendously
as lot of monetary value is needed to conduct R&D in marketplace. Maybelline strengths is
strong market penetration and brand loyalty which has been created in the eyes of the customer.
The prices of the product is low due to which huife customer base has been raised.
Weaknesses: The weaknesses of LO'real firm is that it deals in multiple acquisitions due
to which effective outcomes can be seen. These activities has affected the business operations
greatly as it has slowed down the operations activities due to which customers are switching to
some other brands. Strategies are affected due to which employees retention are raised.
Maybelline prices are low as cost of production is low but it creates negative image among
customers as quality product is more preferred for skin. Customer choose LO'rel product to meet
their needs.
Opportunities: LO'real business has the opportunities to expand it's business in
cosmetics in Africa and middle east so that potential customer can be raised and more sales
volume can be raised accordingly. These is the opportunities for the business in the coming years
and strategies should be planned in such a way that customers base can be raised for the product.
Threat: LO'real is surrounded by many top brands in the market. Business associates
needs to change strategies respectively to bind the consumers emotionally with the product. The
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operation department is affected because of seasonal business carried out in the competitive
market.
4) Analysis for each firm on the impact of change and the effects.
The analysis for LO'real business associates on the impact of change and the effects are
explained below:
 It has been been analysed that Changes in LO'real firm are necessary in the organization
so, that emerging needs of the customers can be meet (Daft and Marcic, 2016).
 Changes are adopted or made in the Lo'real company and it's working environment so,
that effective and efficient results can be achieved.
 Changes are evaluated before carrying out in the LO'real company to set standards for
their competitors.
 Changes are mandatory in business entities like LO'real to sustain in the cut throat
competitive world.
5) Examine how changes will affect team, leadership and individuals behaviour.
Team behaviour: Monotonous working decreases the productivity level of team in an
organization. Changes weather big or small bring hope among employees and positive attitudes
or behaviour is seen towards the working style. It indirectly motivates or divert the mind set of
the staff members to something happening in the environment due to which positive behaviour of
team can be seen towards goal achievement.
Individual behaviour: Changes bring positive vibes with itself which indirectly charge
the staff members to perform better. Changes reduces monotonous working style and set goals.
Which indirectly brings positive behaviour in the eyes of the individual to retain in the firm for
longer time duration.
Leadership behaviour: Changes are the main reason for positive and negative behaviour
in leaders. If changes are done for the betterment of the company then effective results can b e
seen from leadership side as well as positive behaviour. Whereas, if changes are not acceptable
by the employees then negative behaviour is seen leadership side (Diaz-Rainey and Wilson,
2017). But changes are done for the betterment in the working scenario so that positive
behaviour can be seen within company.
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6) Evaluate the impact of changes and the applications of models to process change.
The applications of model used in LO'real cosmetic company is Kotter's 8 step model.
Kotter's 8 step model is the a process of change or transformation which involves forming
powerful guiding coalitions, developing strategy and vision, creating a sense of urgency etc. lead
to organizational change and minimize to change. These are explained as follows:
Create urgency: In this LO'real can search out potential threats and develop scenarios
showing that it will happen in coming years. To bring change in an firm create a sense of
urgency around the needs so that changes can be accepted by the business. It will help to firm to
be a part of neck to neck competitions (Doppelt, 2017).
Form a powerful coalitions: In this step people in the business are convinced regarding
why changes are necessary in the working style. In this once the team of coalition is made it
needs to work as a team so that on continuous basis momentum can be created for a change in
LO'real company. This indirectly leads to productive results.
Create a vision for change: Before making a change in the Lo'real company a vision
must be set to understand future organization. To implement the vision in the cosmetic firm
proper strategy is created so that effectively it can be introduced within the premises.
Communicate the vision: To get effective results in the market LO'real firm need to
discuss it's vision among the team members. So that accordingly employees will be working to
accomplish it in the market. The set vision should be applied to every department so that
everyone works in unity to accomplish it.
Remove obstacles: To eliminate problems related to changes taking place in the LO'real
firm experts can be appointed to handle it. On the other hand recognize people for making
change happen in the working place. This will motivate other staff to adopt to the changes easily.
All this will help the business associates to implement changes in the firm.
Create short term wins: To implement change in the LO'real industry look for perfect
projects through which it can be introduced without any strong critics of changes. Business
associates needs to deeply examine the pros and cons of business targets (England, 2016).
Build on the change: For continuous change in the firm set goals should be build on the
momentum company has achieved. Firm should keep ideas fresh by bringing new agents for
business associates coalition.
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Anchor the changes in corporate culture: LO'real company should involve changes
and values while hiring and training new employees so the best candidate can be recruited.
Businesses associates can plan to eliminate key leaders of change as they move on in the market
place.
PART 2
1) Introduction LO'real organization
LO'real S.A is a French personal care organization. It's headquarter is in Clichy and the
registered office is in Paris. This business associates is the world's largest cosmetics firm. It deals
in make-up, hair colour, skin care, perfumes, sun protection etc. It was founded 109 years ago on
30th July. The CEO of the company is Jean Paul Agon (.Espedal, 2017).
2) Applications of force field analysis to determine opposition and support for change.
Force Field Analysis by Kurt Lewin is a compelling strategic tool used to interpret what's
needed for change in personal and corporate environment. Here, are following steps which are
used to define force field analysis which are explained as follows:
Define the change company want to see: In this step LO'real figure out the changes in a
blueprint so that better understanding can be done. Changes are carried out in the organization to
see the results in the coming years. Here, goals and vision are the changes in an company and
plans are made accordingly.
Brainstorm the driving forces: LO'real does brainstorm driving forces so that
favourable changes can be done accordingly. This are recorded in the force field diagram so that
appropriate steps can be taken in the coming years.
Brainstorm the restraining forces: In this case LO'real brainstorm restraining forces are
carried out in order to oppose change. Brainstorm restraining forces are done so that smooth
functioning of the business can be carried in the market. It is recorded in the force field so that in
the near future it can be used for the betterment of the business.
Evaluate the driving and Restraining forces: In this step deep examination of the
driving and restraining forces are evaluated so that productive results can be seen through
change. In this rating is given to both driving and Restraining forces from 1 to 5. If any error
occur it can be rectified at the initial stage (illson, and Murray-Webster, 2017). Which indirectly
leads to effective outcomes.
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Review the forces: Here, Loreal review all the steps and check out which is effective and
has flexibility for change in the market. It helps the business associates to implement the right
forces for change in an organization so that effective and efficient results can be achieved.
Strategize: In this case strategy are framed to weaken the restraining forces and
strengthen the driving forces. It helps the LO'real to search out resources which are needed to
frame product for customers. Effective strategies helps in strengthening the driving forces which
is a positive sign.
Prioritize action steps: LO'real search out the necessary resources in the market and
figure out certain strategies to implement it in the global market. Here, business associates set
prioritize action steps so that the smooth functioning of the business can be carried out in an
organization.
3) Explain various barriers to change and how they affect decision making and leadership.
Lack of clear definition: When changes takes place in LO'real firm it's employees are
not clear about the changes taking place in the working scenario. Due to which ineffective results
are achieved.
Resistance to change: In LO'real firm the staff members are not excepting changes in
their working style. When there is resistance to change then it's difficult to bit it's competitors in
the cut throat competitive world (Komives and Wagner, 2016 ). And gradually firm's market
value decrease in the market when changes are not accepted. It also affect the decision making
process in the business as resistance to change affect all the working pattern in a negative
manner.
Fear of unfamiliar change: Employees of LO'real are rigid with there change and does
not want new blood to entry. Due to which productivity level decreases as well as sales volume
falls down tremendously. It happens because customers emerging needs are not fulfilled. Staff
members has the fear as how is the change, how will they adopt to change, will it be beneficial
etc. Fear of unfamiliar change affect the decision making process because it bound the top level
to take decision for the betterment of the business.
Integration: Managing changes in large multinational company like LO'real is very
challenging tasks. When changes takes place it means moving targets to the next level. It not
only change organization structure but employees turnover ratio also occur in parallel. Which
indirectly affect the productivity level of the staff members. Whereas, decision making also gets
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affected by integration barriers as this factors does not allow the top managements to rake
effective decisions to implement to change in positive way (Lawrence, 2015).
4) Explain how change accomplished by using models and how are much successful they are.
Lewin's change model is used by an organization as it represents practical and simple
model to understand the change process in the market. Lewin's Change model is explained as
follows:
Unfreezing: LO'real is using this model and the very step is unfreezing, In this
communication is very important so that staff members can be informed about the imminent
change taking place. Whereas, ways of thinking, old behaviours, organizational structure,
process etc. need to be evaluated carefully to guide employees the need for change and maintain
a competitive advantages in market.
Changing: Changing refers to as moving by implementation of change in the market. It
take place when the changes done are real in the market place. LO'real must carefully execute the
plan in the working premises so that employees accept the change and productive outcomes can
be seen. In changing process staff members should be aware about the importance of the change
and how it will benefit employees in the long run (Rogers and Marres, 2016.).
Refreezing: This is the final stage in Lewi's model, here refreezing means act of
solidifying, stabilizing and reinforcing the new state after change take place in the business. If
refreezing is not done effectively there is more chance that people will revert back to the old
pattern of doing things in an organization.
This model was successful while carrying out in the LO'real organization as this helped
the business to adopt changes in the premises so that competitors can bitten in the neck to neck
competition. It also helped the company to retain effective staff for longer time duration.
5)Advantages and disadvantages of leadership approaches.
Situational leadership advantages and disadvantages are explained as follows:
Situational leadership Advantages Disadvantages
1 Situational leaders focuses on
short term needs and boosts
the training routine to meet the
set goals on time (van and
Situational leadership focuses
more on immediate needs
rather then long term needs.
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Groeneveld, 2015).
2 It helps the team to work
together as it is flexible and
intuitive in nature.
It is very difficult to define
maturity level in employees
which creates confusion.
3 Situational leadership frame
comfortable and safe working
environment whi8ch is based
on the readiness level of team
needs.
Situational leadership does not
provide sufficient information
regarding leaders which leads
to conflicts and productivity
level decreases.
CONCLUSIONS
From the above report it can be concluded that changes are important bin very
organization to succeed in the market. Business associates are positively and negatively affected
by the changes carried out in the premises which results to better outcomes. Firm faces drivers of
changes which affect the smooth functioning of the business. Organization examine measures to
overcome the negative impact on changes so that employees can be convinced to adopt to
change. Firm faces many barriers for change which also affect decision making process due to
which effective decision can not be implemented. Various approaches are carried out for
effective results as well as to bit the competitors in the market.
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