Leading Change: Impact of Internal & External Factors on Business

This report provides a comprehensive analysis of leading change within organizations, focusing on the impact on strategy and operations, particularly using ASDA and Marks & Spencer as case studies. It explores the effects of both internal and external drivers on business processes and outcomes. The report delves into the positive and negative impacts of change, including digitalization, on employees, processes, and overall company performance. It also examines the barriers to change and their influence on leadership decision-making. Furthermore, it assesses the contributions of different leadership approaches to navigating organizational change, providing insights into how companies can effectively manage and adapt to evolving business environments and market dynamics. The report utilizes SWOT analysis to evaluate the impact of digitalization and change impact analysis, and provides a comparative analysis of the strategies employed by ASDA and Marks & Spencer in response to the changing business landscape.

Understanding and leading
change

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
P1. Impact of changes on organisational strategy and operations....................................................3
P2 Impact of internal and external drivers.........................................................................................8
P3. Measures regarding minimising the negative impact of change..................................................9
TASK 2..................................................................................................................................................10
P4. Barriers of change and their influence on leadership decision making......................................10
TASK 3..................................................................................................................................................11
P5: Contribution of different leadership approaches regarding organisational change..................11
CONCLUSION ......................................................................................................................................12
REFERENCES.........................................................................................................................................13

INTRODUCTION
In today’s world changes is the most constant thing that happens as every point. In
business world changes are consider to be happening according to a situation or changes are
made because of an emergency (Brown, 2012. ). Change is defined as something different
occurred or happened within the organisation and creates a positive and negative impact over
the various department functioning and operations of the organisation. They do so in order to
accomplish the business goals, as it is important to adopt various changes that are related to
procedures, policies, technology and strategies. These adaptation of changes also help in
reducing the risk and makes business operation productive at a particular time. To understand
the impact of changes ASDA and Marks & Spencer are taken into context, both companies
functions their business world-wide with numerous goods and facilities like food and
clothing.
In this report, the impact of changes in various strategies and operation of both the
organisation. This project also weight about various affects that may arise on business
operations due to internal and external factors present in business environment. Additionally,
report also covers the different types of barriers that have impact on leadership decision
making and various approaches that deals with such changes.
TASK 1
P1. Impact of changes on organisational strategy and operations.
It is very essential for industry and companies operating to have appropriate
information about the changes that are adapted in the organisational environment so that
suitable procedures and stroke can be taken to accomplish company goals and objectives. In
present era, digitalisation is the main change and it has positive and negative impact on both
organisations. By adopting changes like digitalisation companies are able to enlarge their
business world-wide. This also benefits in bringing large number of clients to buy their
products and services. Both M&S and ASDA experiences this change that helps them in
attaining flexibility to become successful.
About ASDA

It is supermarket chain in UK and at global level that deals in multiple products such
as fresh food, bakery, clothing, electronic item and other services like car insurance, credit
cards and travel money bureaux.
About Marks & Spencer:
It is also one of the leading multinational company of UK which speciality known to provide
home product, luxury food items and cloths. Company has around 979 stores in different part
of world. But most of their store sells food products as there are more than 615 stores that
deal in food stuffs (Doppelt, 2017).
Impact of changes on strategy and operation.
Mark & Spencer is considering forward to have merger with ASDA in order to
enlarge their business and to increase their market share. This will be helpful for both
companies to raise and develop fast with high market share and high product growth rate. It is
assumed by the manager of both companies that if there is a merger of both companies there
is more chance of attaining competitive advantage. This supports both the organisation in
building an edge and develop an opportunities to beat their competition like Sainsbury,
TESCO etc. Here are some benefits that both the companies get after being merged with one
another:
Competitive advantage: If companies get combined with each other, there is a
possibility to increase the profitability of businesses automatically. They will have more
resources and skilled employees which will enhance their productivity and performance for a
specific time period. Additionally, it also helps in increasing competitive advantage and
expands their marketplace.
High Market share: As both Mark & Spenser and ASDA sales their products and
services at a global level so they have a strong customer base. Merging will allow companies
to increasing their market portion by drawing interest of maximum number of customers
toward s different unique items produce by both companies. The result will be positive as the
customer would have more option to a particular product with two different brands in the
same company.
Impact of changes on employees:

There would be positive and negative impact of changes on the employs working
within ASDA & Mark Spenser that are explained below:
Positive Impact
New opportunities:
By adapting changes within company there is a chance of new opportunities as
existing employees will more focus to develop their skills set and learn new techniques of
computer system. For example, companies are thinking to get merge and adapts the
digitalisation concepts, there would be opportunities for the old staff to become capable and
handle operation in effective manner (Foltin and Keller, 2012).
Increased Efficiency:
Changes can increase the efficiency of employees, so they work with full potential
and focus to satisfy customer. They will also help their other staff member to get motivated
with the new changes and deliver best result to customer. For example, In Mark & spencer
and ASDA, employees trained themselves with the new change so that goods are displayed
well to customer and they are deliver well services to client.
Negative impact
Lack of confidence in management:
As changes bring a mass loss in the confidence level of employees, as they fear of
losing their job. This is because they assume that according to company their process to deal
business operation are old and company need new trained and skilled staff to deal with the
recent change. For example in ASDA, existing staff has lack the efficiency to deal with today
world so they might change the staff. Similarly, in Marl & Spenser, the manger wants to
increase the efficiency of company so they adapt change that creates stress among their staff.
Mental stress:
It is observed that many people those experiences the changes within company are
feeling stress as they are not ready to adapt the changes in company. For example in a survey,
in both companies it was observed that more that 55% of employees are feeling chronic stress
just because they do not wants company to adapt the changes in their working process.

Impact of changes on processes.
Businesses are compound and need constant devotion to continue competitive,
profitable, and productive. Changes are helpful for companies as they bring following
importance into business process such as:
Productivity: With the implementation of digitalisation concept in ASDA and Mary
& spencer, mangers are able to bring effectiveness to their old business method. This will
result in improving the productivity of company and worker. For example, the ASDA &
Mark & Spenser applies the concept of Digitalisation, there is a proper record of each and
every business happing. This result in improving the productivity of business operation.
Profitability: As once the productivity of business processes are increased the
manager are able to increase the profitability of company and increased market share (Fullan,
2014). For example with the help of new change, both companies are able to produce more
advance goods according to customer demand. This help to increase the volume of sales in
ASDA and Mark & Spenser. Thus result in generating huge profit.
Change impact analysis
Every company wants positive result from the suitable changes made by them in order
to deal with current situation and to compete. To determine the impact of change companies
like ASDA and Mark & spencer conduct an analysis in order to know the positive or negative
impact of change. They apply the model of Bohner and Arnold to check the impact of
change. According to this model “it is necessary to identify the potential consequences of a
change that help companies to attain a change”. It is a prescribed method that is accepted to
identify any probable risks connected with the digitalisation. The examination only takes
place once digitalization program has been flexed off and studied by the Sponsors. The
impact of Digitalization is questioned with the help of subsequent three (3) factors that are:
 Operating cost of the Company: In companies, like ASDA and M&S, the motive is
to extend their business at global level by adapting the change of digitalization in their
business process. But they keep focus not to increase the cost of operation as they will
not able to maintain profitability.

 Trends in business income: Both companies want to earn huge profit so they apply
the concept of digitalization. This result in boot in their sales for a specific period of
time and once sales are good there is increasing trend in business income.
 Customer Satisfaction: The main motive for every company is to satisfy their
customer the most. Both M&S and ASDA applies different techniques in order to
satisfy their customer.
Comparison of both companies:
Strategies Mark & Spencer ASDA
Marketing Strategy Companies’ faces number of
challenges and to overcome
this, company must formulate
strategies that help in dealing
with the impact of changes
(Fyke and Buzzanell, 2013).
For instance with the
increasing demand of online
shopping M&S started
providing its products online
and through home shopping
channel to increase its
customer range.
Company adopt various
marketing strategies to attract
more customers and be
competitive in the market.
Company has adopted a
strategy to engage their
customer. They provide 1%
cash back over shopping done
through credit card.
Pricing strategy Mark & Spencer uses
competitive pricing strategy in
which it modify price of their
product according to
competitors, which help
company to remain
competitive in market.
ASDA follows low price
strategy as their main aim is to
increase volume of sell.
Company provide its high
quality products at relatively
low price in order to attract
more customers and build
strong relationship with
customers.

P2 Impact of internal and external drivers.
There are mainly two types of force in business environment that may lead to sudden
or planed changes that comprises internal and external elements. An internal element of
changes comprises organisational culture, financial board and technical factors. On the other
side external forces of modifications deals with economic, social, political and environment
factors. The impact of internal and external factor is determined with the help of SWOT
analysis of Digitalisation within the context of both ASDA and M&S. this is described
below:
SWOT analysis:
Strength:
 As the peoples are additional reliant on the internet, it benefits the companies to
spread out and attach with the large number of people.
 The options are not limited as ASDA and M&S exposed their entire item on its
website, so people can select to change from one commodity to another and that does
not require any cost.
Weaknesses
 There are extraordinary chances of failure of digitalisation because of
misunderstanding due to the accessibility of various marketing options.
 Loss control of bad feedback or grievances on social means or digital stage is a
vast task and can even main to the finishing of companies.
Opportunity
 There is chance of more and more work for the youth as this ground is just
rising and number of specialists is fewer.
 If the digitalisation covers market in a full-fledged way it will support the
nation. That means main amount of country residents will start living a life
which will be smoother and quicker.
Threats:

 Due to always altering fashions of various marketing parts and ever shifting
rules of search engine for enhancing the satisfied, uninterrupted awareness is
compulsory, which is very challenging.
 Day by day it is consuming all the out-dated ways of advertising, which
finally means that television being gone be the only basis of traditional
advertising (Glass and Cook, 2016).
Impact of change driver on leadership, team and individual
Leaders are considering being one of the most essential parts for every business. They
have a unique ways of handling team, making a task complete and overcome any problem in
company. In ASDA and M&S leader makes effective plans that help in increasing the
productivity and profitability of business. The makes strategies to adapt the changes of
digitalisation and makes sure that it will result in sales increase. Their behaviour is more
commanding in order to deal with the planned changes that companies are going to made in
their business process.
Team member and individual are said to being the backbone of company. So
company make sure that there must be no vast impact of changes on team member. In ASDA
and M&S leader makes sure that team member work closely with each other and help one
another in order to learn the changes. The leader also conduct different educational and
training program that help individual to make them capable to deal with the impact of
digitalisation (Kotter, 2012).
The alterations impacting psychiatry education drivers come from both outside and
inside sources. External variations are those that create outside the organization such as
working closer with other companies, outside training and educational tours. Internal
changes create from within the organization and comprise things such as handling on the
job training, flatter structure and making staff happier and satisfied.
P3. Measures regarding minimising the negative impact of change
Impact of changes on organisational context
There are number of changes within the organisational context that may impact the
overall function of company. Changes sometime have positive and negative influence on
business operation. Positive impact of changes are such as increase in sales, upgrade in

business system to perform different task, maximisation in Goodwill and profitability etc.
Negative impact such as conflicts between team member, diminishing market share, shortage
of funds. So these changes are needed to be properly examined and overcomes as early as
possible by applying different theory. For example in ASDA the management use to make
sudden changes that give rise to the issues among employees and manager. Manager changes
the incentive scheme and promote employee those are favourable to them. Employee
complain about the same and goes on strike in order to fulfil their demands. The issue of
ASDA can be resolved by applying the theory of PDCA cycle. With the support of this
theory manager are able to record, analyse and measure the actual performance of each
employees and ascertain that best are selected in order to attain the goals.
Basically In ASDA and M&S there are positive impact of changes on their business
process, employees, operation and entire organisational context. Such as
 Employees confidence
 Sales improvement
 Competitive advantages
 Huge and massive growth and development at global level.
 Dynamic working environment that fits the company.
System theory: This theory is essential and is practised by both M&S and ASDA to
handle the complex situation that is faced by their employees. In this theory, organisation
depends upon environment for obtaining important resources such as consumers who
purchases the products, government rules and regulations and suppliers. System theory
emphasis on maintaining the organisation survival and focuses on long term goals and
objectives. With the help system theory both the organisation can plan and implement the
changes in a systematic manner to achieve the desired goals and objectives.
PDCA cycle: This is adopted and implemented by both M&S and ASDA to minimise
the negative impact of the changes. This model is widely used by both the organisation to
improve their management levels by monitoring and controlling over the internal as well as
external operations. It also helps in standardizing the data and decreasing the chance of errors
while taking crucial decisions (Gupta, 2011). PDCA cycle covers four important elements
which includes Plan, do, check and action. In planning step the problems are identified and

defined. Moreover, relevant information and data is collected. Secondly, in do phase of
PDCA cycle creation and implementation of a solution is done. Thirdly, the results are
confirmed by comparing data. Then in last step, documentation of results is done and
suggestion is addressed for different issues.
Conclusion
In the conclusion it has been advised that issues must be resolved as early as possible
otherwise it may reduce the overall performance of company. The two model or theory that
support in solving different problems of ASDA and M&S, such as system theory and PDCA
cycle. There has been different issues such as reduction in supply of goods and plan, check
and analyse the overall performance of company. This is advantages to company as they are
able to decrease the possibility of error and implement a solution to the problem of both
company.
TASK 2
P4. Barriers of change and their influence on leadership decision making
As because of several barriers regarding changes the organizations are capable to make
changes within the organization. It gives the impacts on the decision making efficiency of the
top level authority. So it becomes crucial to remove the barriers, so that the performance of
the organization can be improve and reduce the chances of delays in decision making. The
M&S and ASDA are responsible in identifying the several barriers and adapt the appropriate
approaches to change the behaviour. These barriers influence the operational performance of
the entity. In order to minimize or remove these problems the “Kurt Lewins” propounded the
force field theory which is used especially for ensuring the smooth decision making. And also
used particularly in planning and implementing change management programs in
organizations. It is useful method for gaining the forces with change and for removing the
forces against change.
Lack of employee involvement: In important to have the involvement of employees
in order to make the effective change within the organization. If there is lack of decision
involvement of employees, then it leads to unnecessary delays in decision making and it’s
implementation. It is the responsibility of the company to provide adequate relevant
information to employees in order to make the changing decision effective. Besides this, the

force field analysis working as identify those forces which encourages the effective thinking
by forcing an improvement team to work or think together regarding the aspect of desired
change. This FFA model also ensures the employee team to agree on priority forces. This
agreement acts as the starting point of action (Hintz and Bahia, 2013).
Government rules and regulation: the government rules and regulations can be
treated as one of the most crucial aspect regarding the change and its implementation. As it is
an external barrier over which the organization has no control. Hence this type of external
barriers is beyond the control of the government. The FFA model comprises with the set of
driving forces and restraining forces regarding the change and mainly the government
involvement gives the drastic effects on the implementation of desired change.
FFA analysis
Forces for change:
 The forces for the organisational may termed as the drawbacks in planning and
strategies of the organisation.
 This leads to the failure of organisational this emerges the needs of the developing
the favourable changes in the organisational planning.
Forces against change:
 The forces which are against of the changes in organisational behaviour pertain the
forces like short term stability in market trend and competition.
 attainment of better result in recent past years by implementing the same structure of
planning and currently also expects the same to happen.
Schein Model of organisational Culture
According to this model the basic assumption take shape of values and value shapes
behaviour and practices that are important and visible part of culture. In general it is observed
that companies do not adopts culture in single day as they learn for and make changes form
the past events and happing. Changes have different barriers that need to be properly
examined and removed in order to deliver the performance of company.
Artifacts: