Alpha Milkpowder: Organisational Behaviour Analysis and Change

This report provides an organisational behaviour analysis of Alpha Milkpowder, a leading dairy product manufacturer. It begins with a situational analysis using PESTLE and SWOT frameworks to identify internal and external factors affecting the company. The report then delves into the company's organisational structure and proposes a change management plan based on the expanded 7S model to improve organisational behaviour and achieve sustainability. The analysis covers hard elements like strategy, structure, and systems, as well as soft elements like shared values, skills, style, and staff. The expected outcomes of the proposed changes are discussed, and recommendations are provided to address identified weaknesses and threats. The report aims to offer insights into the company's challenges and propose solutions for enhancing organisational behaviour and business performance.

Running Head: ORGANISATIONAL BEHAVIOUR
ORGANISATIONAL BEHAVIOUR
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1ORGANISATIONAL BEHAVIOUR
Abstract
Alpha Milkpowder is considered to be one of the leading dairy product manufacturers in the
Netherlands. The company is recently suffering with high competitiveness and lack of efficacy in
the organisational practice that costs huge downfall in the business. One of the major concern for
the company is to reshape its organisational behaviour to a great extent so that it can revive the
business of Alpha Milkpowder. In this regard, this report is emphasising on the situational
analysis tool to identify the problem in an in-depth basis. Moreover, the report also facilitates a
change management model in terms of the expanded 7s model to foster more efficacy into the
organisational behaviour of the organisation and bring sustainability to the business.

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Table of Contents
Introduction......................................................................................................................................3
Situational analysis..........................................................................................................................4
PESTLE analysis.........................................................................................................................4
Political....................................................................................................................................4
Economic.................................................................................................................................4
Social.......................................................................................................................................5
Technological..........................................................................................................................6
Legal........................................................................................................................................6
Environmental..........................................................................................................................7
SWOT analysis............................................................................................................................8
Organisational structure...................................................................................................................9
Change management process.........................................................................................................11
Hard elements............................................................................................................................11
Strategy..................................................................................................................................11
Structure.................................................................................................................................12
System....................................................................................................................................12
Soft elements.............................................................................................................................13
Shared values.........................................................................................................................13
Skills......................................................................................................................................14
Style.......................................................................................................................................15
Staffs......................................................................................................................................16
Expected outcome of the change...................................................................................................17
Recommendation...........................................................................................................................18
Conclusion.....................................................................................................................................18
Reference.......................................................................................................................................20
Appendices....................................................................................................................................25
Appendix 1.................................................................................................................................25

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Introduction
Organisational behaviour is considered to be one of the important facets for the
development and progress of an organisation. Chumg et al. (2016, pp.432-448) defined that
organisational behaviour is the study of the organisational setting and interference between
human behaviour and the organisation. It is associated with the practice of creating a strong
organisational structure and imposing a positive culture so that it will bring efficacy into the
organisational practice and motivate the employees to enhance their skills for the benefit of the
organisation. Henceforth, Pereira, Malik and Froese (2017, pp.253-261) opined that the concept
of organisational behaviour is a dynamic aspect and it depends on a number of elements that can
contribute to the efficacy of the organisational behaviour. For instance, apart from the
satisfaction level of the employees and the right organisational culture, it can be stated that the
leadership practice, organisational structure and the human capital and communication are also
played pivotal role in the process of facilitating good organisational behaviour (Taylor 2018,
pp.21-36).
Therefore, this report aims to analyse in-sights of the organisational behaviour in Alpha
Milkpowder and finds out the gaps that can create obstacle for the organisation to design a strong
and strategic organisational behaviour in the competitive market. Moreover, the report also
delivers a change management plan with recommendation so that it will provide a layout of
mitigating the issues properly.

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Situational analysis
PESTLE analysis
Political
The political situation in The Netherland is not as stable as the Appendix 1 shows that
there is huge fall in the government stability where in 2015, it was .93 points and at the end of
2016 it became .91. As a result of that it can provide a considerable amount of threat for the
business companies to do business effectively. In fact, the country also has less political freedom
that symbolises the autonomy and independence of the business entities to take adequate
strategies without intervention of the government. In other words, the research of Thongplew,
van Koppen and Spaargaren (2016, pp.6-20) proved that In the Netherland, government
organisations imposes huge interference in the private business practices and it obscures the
development of the business companies. In addition to this, the research of Bijman (2018,
p.2498) depicted a clear picture of the intention of the government to create strong guidelines for
the business organisations and the effectiveness of the government can also be proved so that it
can deliver better opportunity for the rival business companies. The government effectiveness
installs a continuous monitoring and controlling over the corporate corruptions and as a result of
that strong legal guidelines will help to set an effective business environment within the country.
Economic
From the economic perspective, The Netherland is considered to be one of the leading
economic power in Eurozone and the fifth largest exporter of goods. The open trade policy and
the steady economic growth of the country create opportunity for the business companies to
invest and create a positive environment for business. As per the report of Lam, Jansen and

5ORGANISATIONAL BEHAVIOUR
Wessels (2017, p.5) in 2018 the expected growth of GDP was 2.8% (santandertrade.com 2010).
However, the inflation rate is increasing at a rapid pace where at the end of the financial year of
2020 it will be 1.6%. One of the promising aspect of the economy of Netherland is the decline in
the unemployment rate. From the research of Groot, M.J. and van’t Hooft (2016, p.12) it can
stated that the decline in the unemployment rate will help the country to develop its economy
further. Moreover, it can be stated that the decrease in unemployment rate and the growth in
GDP is definitely provide advantage for the business companies to enter into the Netherlands
market and invest extensively so that they are able to gain high profitability from the market.
High per capita income also facilitates an advantage for the business companies to offer high end
products to the customers and get positive response from the customers as well.
Social
Diversity within the society is referred as one of the most important characteristics of the
Netherland society where people are very open minded and focus on their quality life style. As a
matter of fact, the article of Scherpenzeel, Santman-Berends and Lam (2018, pp.6336-6345) put
focus on the demands and choices of the people and found out that the Netherlanders are very
optimistic with high aspirations that help them to create prosperity within the society. It is
identified as a core feature of the people where they are relied on their culture and tradition
extensively. Therefore, it becomes an important for the organisation to deal with the social
prejudices and the tradition of the society so that it will help to integrate the society within the
fold of business (Upton, Murphy and Shalloo 2017, pp. 245-260). As a matter of fact, the
business companies in Netherlands are also entitled to facilitate different approaches to
encapsulate the people within the organisational fold. As a result of that the relationship between
the people and the organisation is very essential for the business companies in Netherland to

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foster a strong relationship with the customers so that it will bring efficacy to the sustainability in
business. Emphasising on the diversity and social aspects are also pertinent for the business
organisations operating in the Netherlands.
Technological
As a part of the European Union, the Netherlands plays a very important aspect in the
international business and it is very crucial for the company to focus on the technological
advancement so that it will bring strategic advantage for the companies in the competitive
market. The Netherlands government endorses high end technologies for the business companies
so that it can generate an effective measure for the progress of the economy and the business
measures of the companies. In addition to this, the business companies are also willing to
incorporate advance technologies to sustain in the competitive market. As a result of that it can
be stated that suing cutting edge and unique technologies is a part of the business operation that
prevails in the Netherland market. Moreover, it is also essential for the entrepreneurs to create an
extensive communication with the government so that it can be helpful to implement proper
technology in the business operation. According to Santman-Berends et al. (2016, pp.103-112)
the role of technology in modern business is pivotal for establishing an effective and sustainable
business so that it can generate enough customer attraction in the competitive market. Therefore,
it is highly crucial for the business organisations to get enough advantage in the market.
Legal
The Netherlands Chamber of Commerce (KVK) is entitled to monitor the business
guidelines and provide regulations for the business companies to follow the rules and regulations
set by the government (Yong et al. 2017, pp.61-66). There are corporate governance framework
prescribed by the Netherlands government and the governing body compels the business

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companies to set extensive measures so that the corporate governance measures can be
implemented properly. As a matter of fact, there are strict rules for the corporates to facilitate a
better practice and abiding the fundamental rules of European Nations in the international
market. In addition to this, equal treatment for the nationals and foreigners is highly pivotal that
the Netherlands government is maintained so that it can generate a good and transparent business
environment within the country. As a matter of fact, the report of Didanna (2017, p.288) pointed
out the fact that the Netherlands government is responsible to facilitate a strong guidelines for
safeguarding the intellectual rights and property of the organisations. Besides this, the
government is also willing to create a better environment for employees where the workplace
health and safety measures are strategically imposed on the companies and the business entities
are compelled to focus on the government guidelines.
Environmental
The Decree on Environmental Law is trying to project a great emphasis on the business
activities of the organisations so that it can deliver an effective organisational practice and at the
same time put thrust on the environmental consideration that is also resembled with the
sustainable development goals projected by United Nations. The government is fully aware of
the fact that environmental sustainability is one of the major concern for the global as well as
domestic measure. Henceforth, it will be a rightful approach for the organisations to put enough
thrust over the environmental wellbeing (Luttikholt et al. 2019, p.58). Based on the
understanding, the All-in-One permit for the physical aspects plays major role in designing the
business effectiveness of the organisation. In fact, the government also facilitates a number of
important approaches for the business companies that are strong enough to attract the business
operatives to install an effective and efficient eco-friendly practice within the business. In

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addition to his, the Decree on Environmental Law (BOR) and the Activities Decree Internet
Module (AIM) are also significant in course of creating a strong and effective environmental
aspect so that the business companies are also pushed to follow the government jurisdiction and
regulation of the organisation (Chen, Gras and Kentish 2019, pp.325-353).
SWOT analysis
Strengths Opportunities
 Alpha Milkpoweder is considered to be one
of the leading international trading
company in Netherlands. It proves the
organisation has a strong capitalisation
over the Netherlands market.
 The packaging of the organisation is
focusing on the environmental
sustainability. Therefore, it will be helpful
for Alpha Milkproduct to gain strategic
advantage in the competitive market.
 Product differentiation is also increased the
acceptability within the organisation so that
it ensures profitability within the market.
 The growing nature of the Netherlands
economy leads to development of the
organisations in the competitive market.
 The government helps the companies to
implement advanced technologies in
business.
 There are significant impact of the
regulatory frameworks that foster impetus
to the equal opportunity in business.
Weaknesses Threats
 The leadership quality is not so good
within the organisation and as a result of
that it deteriorates the organisational
 High competitiveness in the market is
considered to be a great threat for the
business companies in Netherlands.

9ORGANISATIONAL BEHAVIOUR
performance to a great extent.
 The employees does not feel motivated as
the remuneration strategy is not transparent
at all and it creates a strife between the
management and the organisation.
 The social responsibilities of the
organisation is limited and it obscures the
effort to foster strong brand image.
 The Netherlands government interferes in
the autonomous business approach of the
companies that can bring a major setback
for the growth of the companies.
 The Brexit situation imposes huge impact
over the international business initiatives in
the Netherlands. As a result of that for
Alpha Milkpoweder it is very crucial to
deal with the political and economic
turmoil.
Organisational structure
The organisation structure of Alpha Milkpoweder is based on a hierarchical structure
where the CEO is placed atop the organisation and followed by three divisions such as the
finance department, operation department and marketing department. All the departments are
ordered to address to the CEO and responsible to monitor the performance of the employees to
ensure the success of the organisation.

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However, there are some problems that Alpha Milkpoweder is facing in course of
effective decision making because the decision making process in hierarchical organisational
structure is very slow and ineffective in dire situations. Henceforth, a change is needed in the
organisational structure of Alpha Milkpoweder and implementing the matrix organisational
structure is highly essential for the organisation to deliver better and appropriate organisational
structure. It is important to note that in the matrix organisational structure there is no top down
relationship among the management and the employees and each of them are responsible to play
their specific role which will be effective for procuring an effective organisational decision
making. The matrix organisational structure helps to build up good communication among
different players and focus on meeting the objectives of the organisation.
Therefore, the new organisational structure of Alpha Milkpoweder is as follows,
CEO
Operation
manager
Production Manufacturing
Marketing
manager
Sales officer
Customer
service
manager
Finance
manager
Finance
executive
Finance
executive

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President
Vice President
(Production)
Vice President
(Marketing)
Vice President
(Finance)
Project manager A
Project manager A
W
Change management process
Hard elements
Strategy
The strategy of the organisation is to create a proper promotional strategy in order to
survive in the competitive market. The role of effective promotional strategy paves the way for
the organisations to set an advantageous position in the market so that it can deliver enough
exposure and availability to the customers. In this regard, it is essential for Alpha Milkpoweder
to focus on a cost effective organisational practice where the role of the organisation is to not
only emphasises on the efficacy of its availability in the competitive market but also creating a
W
W
W
W W