Understanding & Leading Change: Drivers & Impact at Next PLC

This report provides a comprehensive analysis of the drivers of change impacting Next PLC, a British multinational company. It utilizes PEST and SWOT analyses to identify internal and external factors influencing the organization's strategy and operations. The report evaluates how these changes affect leadership, individual and team behavior, and explores various models like System Theory, Continuous Improvement Theory, and the Burke-Litwin Model to minimize the negative impacts of change. It compares Next PLC's change management approach with Google's, highlighting the importance of financial planning and adaptation to market demands. The report concludes with recommendations for effective change management, including training programs to enhance employee skills and organizational performance, emphasizing the crucial role of change in maintaining a competitive position and enhancing organizational efficiency. Desklib offers similar solved assignments for students.

MANAGEMENT
AND LEADING

Table of Contents
PART 1............................................................................................................................................3
Introduction .....................................................................................................................................3
Overview of company and change process......................................................................................3
PEST/SWOT analysis to identify drivers of change........................................................................3
Evaluation of drivers and impact of change and how they influence organisational strategy.........5
Comparing the impact of change and effect upon organisational strategy and operations.............5
Identify how change will affect leadership, individuals and team behaviour..................................6
Evaluation of how impact of change can be minimised and application of appropriate models
applied to plan for process change efficiently.................................................................................6
Conclusion and recommendation for minimising impact of change by effective planning and
managing change ............................................................................................................................6
References........................................................................................................................................9

PART 1
Introduction
Management refers to the managing the operations and controlling employees and team
for achieving organisational objectives. Leadership is a capability of a person which helps in
motivating employees to engage in organisational activities through which they can meet
organisational objectives and ensure business success (Aluko, 2017). Next plc is a British
multinational company which offers diverse variety of products, such as clothing, footwear and
home products. The report will define change process followed by the organisation,
identification and evaluation of internal and external drivers of change with the help of PEST
and SWOT analysis. The study defines how change can influence leadership, organizational
strategy and operations. The study also revolves around various models which can be applied to
the plan through which an organisation can influence change efficiently and form strategies
which are helpful in minimising impact of change.
Overview of company and change process
Next is a public limited company which was established by Joseph Hepworth in the year
1864 and formerly operated under the label of J Hepworth & Son and is operating in various
regions, such as UK, Europe, Asia and Middle East. The primary objective of the company
focuses on executing aspirational quality products which can be easily accessible for all
individuals (Aravopoulou, 2015).
PEST/SWOT analysis to identify drivers of change
SWOT Analysis of Next Plc
The internal drivers of change of Next Plc are identified with the help of SWOT analysis,
these factors are discussed below:
STRENGTHS
 Reliable suppliers
 Strong distribution network
 Highly skilled workforce through
training and Learning programs
 Increased customer satisfaction
WEAKNESS
 Lack of financial planning
 History of controversies regarding
treatment of factory workers and staff

OPPORTUNITIES
 Increase in demand for customizable
apparel
 Retailers leveraging data for
personalization
THREATS
 Disruption in warehousing and
distribution
 Failure to maintain long term liabilities
and capital expenditures
 Disruption in business profitability and
operations due to global pandemic
PEST Analysis of Next Plc
The external drivers of change are identified with the help of PEST analysis an the
external factors which can influence Next Plc are discussed below:
 Political factors- Political factors create an influence on long term profitability of the
organisation, level of corruption has created an adverse impact on the customer service
sector, pricing regulations, trade regulations, political stability, risk of military invasion,
legal framework, product labeling and intellectual property protection are some of the
political factors which can influence business operations (Blanco-Portela and et.al, 2017).
 Economic factors- The economic factors such as economic growth rate, labour cost,
unemployment rate, interest and inflation rate are some of the responsible factors which
influence business activities.
 Social factors- The social factors such as demographic, cultural and leisure interest are
some of the responsible factors which can influence the operations of the business
(Gölzer and Fritzsche, 2017). The cultural factors create an influence on the environment
of business.
 Technological factors- Technological factors creates an huge influence on the day to day
operations of business, some of the technological factors which influence Next Plc
involves- rate of technological diffusion, influence on cost structure in retail industry and
technological development.

Evaluation of drivers and impact of change and how they influence
organisational strategy
By identifying internal and external drivers of change with the help of SWOT and PEST
analysis, it can be observed that these factors are highly responsible for creating an influence on
the organisational strategy of Next Plc. The internal factors such as increased customer
satisfaction and strong customer network are some responsible factors for creating positive
impact on the organisational strategy of business (Jones and et.al, 2015). Whereas, lack of
financial planning creates negative impact on the operations and strategy of Next Plc. The other
internal factors such as customizable demands of customer enforces company to bring change in
their organisational strategy through which they can meet demands and maintain their
competitive position in the industry. The external factors such as legal framework, incline in
unemployment rate is responsible for creating negative impact on the business strategy of Next
Plc as this affects the ability of brand for meting demands of customers.
Comparing the impact of change and effect upon organisational strategy and
operations
NEXT PLC GOOGLE
Next Plc is one of the retail company which
offers different products and through regularly
monitoring the business position and operation,
it helped the brand in identifying the lack of
financial planning which has created barrier for
the company n meeting their finical position in
the industry (Margherita, Sharifi and Caforio,
2021). For meeting such financial requirements,
the brand further changes their structure and
also started offering their products through
online mediums which is helpful in meeting the
targets and improving the financial position of
company within the industry.
Google monitored their performance and
evaluated the need for change management
within the organisation and through forming
such strategies effective transformation can
be done within the business. Google
identified the requirements of their projects
and further divided their management into
divisions on the basis of their requirements.
The new parent company was established for
managing all responsibilities of each division.
This change management strategy helped the
company in prioritizing work and focusing
on all requirements.

Identify how change will affect leadership, individuals and team behaviour
In context of Next Plc, the company implemented change management strategy through
which the management can drive necessary changes in order to maintain effective team
behaviour and meet organizational objectives. The change which has been derived ion the
organisation can influence decision making process of the company and supported retail
company in their business expansion and business growth (Meintjes and Hofmeyr, 2018). It can
be seen that change has influenced leadership activities through which the right direction can be
guided to the tea,m which will be an helpful approach for meeting organisational objectives. By
bringing change in the daily operations of Next Plc, it helped the organisation in enhancing
cooperation and performance of individuals and whole team through which they can
collaboratively accomplish organisational objectives.
There are some of the ways that can help in the course of minimising the negative impact of
change:
 Leadership capacity can help in the process of making rapid decisions that is essence of
change.
 The reward system and organisational culture can also be very helpful in fostering the
acceptance of change. It helps in promotion of high level of cooperation and trust that can
help in laying of foundation for employees and accepting a instigation of change.
 Further planned change is one of the aspect that can help in dealing with the overall
employee resistance that arises in the course of implementing of change process.
Evaluation of how impact of change can be minimised and application of
appropriate models applied to plan for process change efficiently
In relation to Next Plc, the internal and external factors of affects the process of change
and its efficiency and through planning change management strategy, the brand can meet all
organisational objectives. The internal and external factors was identified with the help of SWOT
and PEST analysis through which the organisation can create positive change with the help for
change management strategy and process (Nielsen and et.al, 2021). These factors and change
process supported business in their business growth and expansion through which more
opportunities and customers can be attracted and it will lead to incline in business profitability.

System theory: System approach is viewed as the foundation of organisational development. A
system of a organisation includes internal and external elements that is responsive forces from
the external environment. System approach in Next Plc is based on interaction and
interdependence between synergy, subsystems that is interaction between internal and external
components. This approach recognize that next plc is affected by the macro environment
changes such as high amount of unemployment rate leads to changes in the hiring and
recruitment practices in the organisation.
Continuous improvement theory: Kaizen is a continuous improvement model that is based on
the idea of ongoing positive changes for reaping significant improvement. It is based on
commitment and stands to use radical changes for achievement of transformation. In NEXT plc
this improvement can be used for ensuring that all the changes can be implemented successfully.
It is associated with the way changes can be made in NEXT plc for the purpose of having
effective practises to minimise the resistance to change on part of employees and there is high
amount of effectiveness in the overall organisation functioning.
Burke Litwin model: It is a performance change model that was developed in year 1992 by
organisational change consultants. The author is describing it as mechanism that portrays the
primary variables that have to be considered to predict and explain the behaviour output of the
organisation. It is related with the important interactions among these variables and its impact on
change in NEXT plc.
External environment: This factor represents the conditions and forces that are externally part of
organisation and affecting its process. Such as in NEXT it includes the
Organisation and individual performance: It is a factor that is related with overfall output of
organisation.
In NEXT plc transformation process are deeply embedded in the characteristics and process of
organisation if there is any type of change that is occurring in them it will have a substantial
consequence on the whole organisation functioning.
Leadership: In NEXT plc leaders are providing the direction to rest of organisation. Individual
in these position are mainly responsible for development of vision and further motivating of
employees to achieve it in course of business.
Mission and strategy: In NEXT plc this factor describes the basic organisation purpose and how
to further achieve the process.

Organisation culture: This is the values and norms of organisation. It has a implicit meaning
throughout the organisation. In this transactional factors in NEXT are regarded with the day to
day operations in the organisation functioning. There are many factors that are strongly affecting
the leadership and management aspects.
Management practises: In NEXT the activities and behaviour of managers are also aligned with
the overall strategy to arrey the work in more effective manner.
Structure: It includes the hierarchy of functioning that is adopted by the organisation. Such as it
includes
Conclusion and recommendation for minimising impact of change by effective
planning and managing change
From the above quoted information, it can be concluded that there are various internal
and external factors which can create an impact on business and business operation in positive
and negative manner. For facing such dynamic changes, an organisation must form various
strategies in order to achieve change objective and gain competitive advantage from these
strategies. It can be summarized that change is one of the crucial part which can be helpful in
maintaining the position in the industry, offers support in facing challenges and is also
responsible for enhancing organisational efficiency.
Recommendations
 Creating training programs- By creating a training program will be an helpful approach
for enhancing required skills and gaining knowledge which can be done through driving
change in the organisation (Riratanaphong and van der Voordt, 2015). In context of Next
Plc, the company will create training programs on the basis of training requirements
through which they can meet the organizational requirements and accomplish all
objectives and performance standards. These training programs will be helpful in
enhancing the skills of employees and motivating them through which management can
increase employee engagement in managerial activities.
 Identify required change and align with business objectives- The company must
identify the factors where change is required and align these changes with the objective
of business through which Next Plc can meet the organisational targets by understanding

the need for change and will also be helpful in improving the competencies of employees
through which organisational productivity can be enhanced.
 Establish a strong communication plan- By developing a strong and effective
communication strategy, Next Plc can enhance their organisational performance and
maintain their competitive position in the industry. By creating an innovative
communication plan, it will help the company in minimizing the impact of change and
more information can be shared effectively with the help of effective two-way
communication.
 Set realistic deadlines- The company must set realistic deadlines which will help them
in meeting all objective on time and this will also be helpful in enhancing the brand
image and position in the industry and will also lead to higher employee and customers
engagement (Rosenbaum, More and Steane, 2018). In relation to Next Plc, the company
must create and define deadlines to their employees through which they can earn
competitive advantage and meet all objectives in timely manner which will create a
positive brand image of company in the industry.
 Monitor the process of change- By continuously monitoring the process of change will
be helpful in examining the progress of the change process which has been implemented
in the business and improvement strategies can be formed through which management
can enhance their change management strategies through which organisation can
maintain their position in the industry. In relation to Next Plc, the company regularly
focuses on monitoring the change management process and derive positive change
through which organisational productivity can be enhanced and positive organisational
culture can be maintained.

References
Books and Journals
Aluko, O. A., 2017. Drivers of green shipping practices adoption and impact on organisational
performance (Doctoral dissertation, Brunel University London).
Aravopoulou, E., 2015. Organisational change: a conceptual and theoretical review. Nowoczesne
Systemy Zarządzania. 10.
Blanco-Portela, N and et.al., 2017. Towards the integration of sustainability in Higher Education
Institutions: A review of drivers of and barriers to organisational change and their
comparison against those found of companies. Journal of Cleaner Production. 166.
pp.563-578.
Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational
implications of the digital transformation in industrial practice. Production Planning &
Control. 28(16). pp.1332-1343.
Jones, E and et.al., 2015. Global and local internationalization. Springer.
Margherita, A., Sharifi, H. and Caforio, A., 2021. A conceptual framework of strategy, action
and performance dimensions of organisational agility development. Technology Analysis
& Strategic Management. 33(7). pp.829-842.
Meintjes, A. and Hofmeyr, K., 2018. The impact of resilience and perceived organisational
support on employee engagement in a competitive sales environment. SA Journal of
Human Resource Management. 16(1). pp.1-11.
Nielsen, K and et.al., 2021. What about me? The impact of employee change agents’ person-role
fit on their job satisfaction during organisational change. Work & Stress. 35(1). pp.57-73.
Riratanaphong, C. and van der Voordt, T., 2015. Measuring the added value of workplace
change: performance measurement in theory and practice. Facilities.
Rosenbaum, D., More, E. and Steane, P., 2018. Planned organisational change management:
Forward to the past? An exploratory literature review. Journal of Organizational Change
Management.

Table of Contents
PART 2..........................................................................................................................................11
Introduction ...................................................................................................................................11
Implementation of force field analysis to identify opposition and support for change.................11
Use of force field analysis to make valid recommendations for achieving organisational
objectives.......................................................................................................................................11
Identification of different barriers and how they can influence decision making and leadership. 12
Define how was change accomplished and how successful was it................................................13
Merits and demerits of different leadership approaches to dealing with change...........................13
Evaluation of different leadership approaches and models of change management.....................14
Conclusion ....................................................................................................................................15
References......................................................................................................................................16

PART 2
Introduction
Organizational change are the actions which are planned by the business in relation to
develop and bring the required change which will be helpful in enhancing organisational
performance and productivity. It is a planned systematic process where specific change
management strategy is formed and with the help of encouraging and supporting employees
these objectives can be accomplished (Arif, 2016). Leadership plays a crucial role in change
management as this supports business in creating and following the mission through which they
can meet the objectives. The report will define the force field analysis and how this framework
supports in accomplishing the organisational objectives and determination of different barriers
which can create an impact on the decision making and leadership activities of business. The
study will also define how change can be accomplished and various leadership approaches which
can be implemented for dealing with change.
Implementation of force field analysis to identify opposition and support for
change
The force field analysis is based on two factors which are driving forces and restraining
forces which creates positive as well as negative impact on the operations of business. This
model helps in forming decisions and take actions after identifying the root cause (Burnes,
Hughes and By, 2018). In context of Next Plc, the business emphasis on determining internal and
external factors which can create an impact on the organisational strategy and find solutions
through which strengths and capabilities can be determined.
Use of force field analysis to make valid recommendations for achieving
organisational objectives
There are various components which are responsible for change and these components
are identified with the help of force field analysis. The implementation of the framework must be
effectively executed through which all restraining forces can be identified and all organisational
objectives can be met. With the help of force field analysis, Next Plc the company can align the
team with change through which all stakeholders can be identified. This technique will also help