Unit 17: Impact of Change in Multinational Organisation Report

This report provides a comprehensive analysis of organisational change within a multinational organisation, comparing the impacts of change on strategy and operations using case studies of Golden Wonders and Agfa. It examines both internal and external drivers of change, including technological advancements, market shifts, and internal conflicts, and assesses their influence on leadership, team dynamics, and individual behavior. The report evaluates measures to mitigate the negative effects of change, critically analyzes various change management theories and models, such as the forcefield model, and offers recommendations for effective change planning. Furthermore, it explores different leadership approaches to manage change effectively, critically evaluating their effectiveness in delivering successful outcomes within the organisation. The report also discusses the barriers to change and their impact on leadership decision-making, with detailed SWOT and PEST analyses for the case studies.

ID
Unit Number and Title Unit 17– Understanding and Leading Change
Project Title
A comparative analysis and impact statement report on organisational
change in a large multinational organisation.
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Table of Contents
INTRODUCTION..............................................................................................................3
TASK 1 ............................................................................................................................ 3
P1: Comparison of impact of change in organisation strategy and operations........3
M1 : Drivers and types of organisational change in case of above organisation.....5
TASK 2.............................................................................................................................5
P2 : Internal and External drivers of change that affect leadership, team and
individual behaviour.................................................................................................5
P3 : Measures that can be taken to minimise negative impact of change...............8
M2 : Theories and models to critically evaluate organisational change...................9
D1 : Conclusions and recommendations for effective planning for change.............9
TASK 3.............................................................................................................................9
P4 Explain the barriers of change and their impacts on leadership decision making...9
M3 Apply forcefield model and analyse with organization context.........................11
D2 Critically evaluation of using forcefield model...................................................11
TASK 4........................................................................................................................... 12
P5 : Different leadership approaches to deal with change ....................................12
M4 : Evaluation of leadership approaches that can deliver change effectively .....13
D3 : Critical Evaluation of Effectiveness of leadership approaches.......................13
CONCLUSION............................................................................................................... 13
REFERENCES.................................................................................................................1
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INTRODUCTION
For an organisation it is important to identify the changes taking place and their
impact on the operations. This creates a pressure on the organisation to understand
such change and develop the adaptability to change to ensure survival and
competitiveness. Organisational changes alter the structural relationships, roles of
people, processes etc. These changes can be because of drivers of change which be
external or internal and thus the reasons behind the change could be emerging
technology, change in market situation, deficiencies in the organisation and many
more. This report is concerned with understanding the impact of change on the
organisation structures and policies. Case studies of Golden Wonders and Agfa is
taken into consideration for analysing the impact on strategy and operations, evaluation
of measures that can be taken to reduce the negative impact. Also, this report includes
different barriers for change and influence of leadership on decision making. Various
models and approaches of leadership are taken into consideration that facilitate
implementation of change and helps in analysis of their impact.
Report 1
1.Comparison of impact of change in organisation strategy and operations
Change in organisation refers to a process that changes operational methods,
technologies, structure of the organisation, strategies they follow which can be due to
external or internal pressures. The impact of change on the organisation can be
negative and positive both. They affect the entire organisation consider it resources,
management, employees due to which resistance is very often as the adjustment with
the change may not be that comfortable for the people in the organisation(Aslan and
Reigeluth, 2013).
Change management is an approach that help in implementing the change in the
organisation. For comparing the impact two organisation are considered to understand
the impact of change on their businesses.
Drivers of change for Golden Wonder:
To develop the company, it is necessary for them to understand and learn the changes.
It will help them to expand their capacity. This can be done by the organisation as they
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can anticipate changes by spiting the trends and thus by adopting the business model
which can make implementation easy(Doppelt, 2017). These changes also have
influence on the leaderships, team and the individual behaviour. The types of drivers of
change are :
Internal Drivers of change for Golden Wonder : These are those drivers
which the organisation or in the industry. The organisation have control over these
changes. Various internal drivers that can bring change in the organisation are :
 Organisational culture : Organisational culture constitute of the behaviour and
the attitude of the employees. Whenever any change take place in the
organisation the leaders have to contribute to make people of the company
comfortable with such change. As in Golden Wonders the sales teams of the
organisation got influenced as they changed the distribution channel, but they
were motivated by the leaders.
 Change in Managerial personnel : When managerial person introduce new
changes in the organisation as done in Golden Wonders, due to which the
behaviour of individual persons have influence. Such changes brings changes to
the strategies due to which their roles and responsibilities get affected which may
demotivate them and also the changes in the strategies may make the
procedure complex due to which the performance of the employees will degrade
(Fullan, 2014).
Impact of changes in Golden Wonders :
Changes that took
place in the
organisation
They have introduced new products in their range and for which
they reduced the number of agencies who were operating for
them to distribute their goods, advertising through their own social
media channels, innovative and efficient processes. They also
have changed their packing for some of their products.
Drivers that forced
change
Drivers that forced the change was technological advancement,
change in taste and preference of the consumers, growing
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concern for healthy food and also due to change in managerial
personal.
Drivers of change for AGFA:
 Deficiencies in existing structure : if the structure of the organisation is not
efficient enough to achieve the goals and meet up with the vision, mission of the
organisation then it becomes mandatory for them to bring change in their
structure. Such deficiencies can be of lack of coordination, uniformity in decision
making etc. When AGFA will face such change, it will affect the leadership style
that is being followed because change in existing structures will affect the
organisational culture due to which leaders will have to calmly and patiently make
people of AGFA comfortable with change.
Impact of changes in Agfa
Changes that took
place in the
organisation
The major change that took place in Agfa is of group
transformation. Due to this, it split into two Agfa Healthcare and
Agfa within the group.
Drivers that forced
change
The drivers that forced these changes are technological factors,
global competition, accumulated loses of the organisation and
inefficiency due to conflicts in internal management(Bristol,
2015).
M1 : Drivers and types of organisational change in case of above organisation
The drivers that shapes change in the organisation can be internal i.e., within the
organisation or external i.e., from the external environment. The internal drivers can be
missions and vision of the organisation, leaderships, organisational culture etc. whereas
some external drivers are political, economic environment, market situation etc. The
drivers that brought changes in the above mentioned organisation are technology,
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internal conflicts, change in social and demographic factors and many more. The
change they bring can be of different type such as planned or unplanned change,
transformational or transactional change, developmental change etc. in case of Agfa the
type of change undertaken was strategic and structural while the type of change
undertaken in Golden Wonders is planned and developmental due to which their
processes are changed.
2.An overview of the organisation case studies.
AGFA:
Overview of the case : Agfa was facing various internal issues due to which the group
is being separated into two Healthcare and Agfa so that their performance can be
improved. They have faced changes in their strategies and structure which is why
change is resisted by their employees.
Golden Wonder:
Overview of the case : Golden wonder is a snack manufacture which has been
facing changes due to change in taste and preference of the consumer. They are
more health conscious which is why they even prefer snacks instead of avoiding
food but prefer healthy one which is why they have to introduce new healthy
products in their product range with technological advancement.
3.A PEST/SWOT analysis to be undertaken for each case study to identify drivers
of change.
SWOT for the Golden Wonder.
Strength Opportunities
The changes they introduced such as
innovative packaging, healthy products
As people are getting more conscious of
their health this is an opportunity to
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etc. will help them to increase their market
share because they already have a large
market share this depicts that customers
prefer their products.
continue the change and introduce more of
such goods like nuts etc.
Weaknesses Threats
The changes so taken by then were so
very frequently due to which the funds
requirement is high.
As they have changed their strategies and
distribution channel so this may affect their
supply. Also the customer may not get
attracted towards the packaging or not.
SWOT for Agfa :
Strength Opportunities
As the group has split into two parts, this
made their structure simpler which makes
them more focused towards their core
business and easy decision making.
The opportunities they have after the
changes is of increasing the market size
and growth potential.
Weaknesses Threats
The weaknesses they have to face is of
their poor financial statement before the
group got separated.
Threats that have been observed with this
change is of competition and technology.
Comparison: The change has taken place in both the organisation, but Agfa has
faced a major change as their entire structure whereas in case of Golden Wonders they
have introduces new products which are reactive changes that take place to make the
organisation competitive and ensure their survival and profitability.
External Drivers : these are those changes which are easy to manage by the
company. They can adversely affect the organisation as meeting up with such changes
can leads to major challenges in front of the organisation. Various external drivers are :
 Technological : Due to changing and emerging technology, the business has to
adapt it to make their business competitive. This has impact on the teams of
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organisation as they may not be that capable to adapt such changes. In Golden
Wonders they focussed on social media advertising, but their teams were not
capable enough to adapt such change.
 Competition : Due to competition the organisation has to bring changes in their
process and the strategies. Such as in Golden Wonders they changed their
advertising strategies and distribution strategies which help them to meet up with
the competition, but it has influence on the individual behaviour and teams as
they will be lack of skills to adapt such changes(Glass and Cook, 2016).
Impact of external drivers can be analysed by conducting
PEST for the Golden Wonders .
POLITICAL ECONOMICAL
Various Political decision such as Brexit
affect the business. Golden Wonders also
got affected and due to which they have to
change their distribution channel by
reduces their interdependence on
suppliers across borders.
As every organisation work for profits, so
they necessary steps to reduce its impact.
Due to Brexit the free trade agreements
were no more available due to which their
advertising cost increased. To meet up
with it they changed their process to in-
house social media advertising.
SOCIAL TECHNOLOGICAL
Due to change in taste and preferences of
the consumer, Golden Wonders has to
brought change in the products they
offered. They added nuts in their product
line with innovating and safe packaging
with is a rising demand of the consumers.
To be competitive, the organisation has to
adapt the emerging technology. As people
are more often uses social media, so
Golden Wonders has to start advertising
using that medium (Hillson and Murray-
Webster, 2017).
4.Analysis for each organisation on the impact of change and the effects it has
upon the organisation’s strategy and operations.
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Impact of change for AGFA
Impact on the
Strategies
Coalition of strategies took place due to which their existing
strategies are no more useful for the organisation. Both the
segments i.e., Healthcare and Agfa now operates separately
due to which they have their different management which
formulate strategies for them, also their divisional structure is
also separated.
Impact on the
Operations
Their operations are changed as now their distribution channels
are changed and are in China which eliminated the various
steps in supply chain. This saved a lot of cost for both the
company. Also due to alliances their manufacturing, technology
has separated which has severe impact on the employees of
the organisation.
Impact of change for Golden Wonder:
Impact on the
Strategies
Strategies guides the management in decision making but due to
changes taking place in Golden Wonders, they faced a major
impact of these changes on their strategies. All their advertising
plans are modified, financing sources were identified as their
requirement for funds increased suddenly. Their pricing strategies
were changed to pricing penetration where they now are
providing good quality at lower prices. Their focus has shifted to
market penetration and product development.
Impact on the
Operations
Operations are always influenced with the changes taking place
within the organisation. In Golden Wonders , the pressure on
production department increased to manage the new packaging
along with production in right quantity and quality. Marketing
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teams have to be more active as distribution channels are
modified and advertising plans are changed (Berman and
Korsten, 2014).
5.Evaluation of how change will have affected leadership, individuals and team
behaviour.
Impact of change on Golden Wonder Leadership:
As they have introduced new products in their product range and reduced the number of
agencies, this has increased the pressure on the staff. To make them comfortable with
the changes in structure thus in culture leadership plays a crucial role as they will
motivate them by reflecting the benefits from the changes.
Advantages: The advantages of leadership in Golden Wonders is they make employees
comfortable with the changes in the organisational culture.
Disadvantages: The disadvantages that they faced is of more of informal
communication in the organisation which adversely the culture.
Impact of change on Golden Wonder individuals:
Due to changes in Golden Wonder the individuals got affected as their roles and
responsibilities changed due to change in structure and strategies.
Advantages: This will make their employees more confident and compatible as they will
have more responsibilities and authority.
Disadvantages: The problem that was faced by them was of competence in context of
skills and ability that they poses.
Impact of change on Golden Wonder teamwork:
Due to reduction in number of agencies the pressure on sales team increased due to
which they have to be more conscious of customers reactions which were earlier
analysed by their agency managers.
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Advantages: Dependency on third party is reduced which increased the profit margin for
the company.
Disadvantages: The team felt demotivated as their responsibilities increased. This
affected their performance.
6. Measures that can be taken to minimise negative impact of change
Business has to undertake various activities to make their business efficient and
profitable. To make business effective as per the changing needs of the business the
changes need to be implemented by the organisation. The important thing that the
management need to consider is the impact associated with such change which can be
negative and positive both. If these changes are negative, then the measures to
minimise such impact has to be determined by the organisation. Some measures that
can be taken are:
 Establish proper communication channels with the employees : If
employees are involved in the process of change it will motivate them to adapt
the change. It will help the leader to implement the formulated strategies and
plans to the introduce the change in the organisation. Golden Wonders had
successfully implemented such change effectively as they have discussed it with
their employees well in advance(Komives, 2016).
 Leadership : One of the best measures to minimise the impact of change in the
organisation is effective leadership as they set example before employees which
motivates them to adapt change. Leaders provide the vision to the employees
and help them to understand the benefits and the opportunities they will get from
change. Leaders of Golden Wonders make their sales team aware of the growth
opportunities they can avail now and in future.
 Understanding of the factors that influence the organisational culture i.e.,
psychological impact : To make employee comfortable with the change the
company should know those factors which has major influence. Flexible, friendly
environment with decentralisation of authorities keep employees motivated.
Golden Wonders followed the same methodology to make employees adapt the
change(John and Kulkarni, 2014).
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Appropriate models to process change efficiently.
Organisation uses various models and theories to implement the change
efficiently and successfully. Golden Wonders used Bruke-Litwin Model for implementing
all the changes they made. HR managers used this performance and change model
which help them to understand the cause and effect relationship by considering 12
elements in the organisation due to which change incurred in the organisation. This
helps in determining organisational and environmental factors which help to adapt
change successfully by creating a balance between all the factors. The model also
suggest that effectiveness of change depends upon how well 12 elements have been
identified. Golden Wonders successfully implemented the change as identifies all these
elements along with cause and effect relationship.
D1 : Conclusions and recommendations for effective planning for change
The importance of change is identified above that for being competitive and
successful organisation has to adapt change . But to implement such change
identification of various internal and external drivers is important which is effectively
done by KP Snacks. Various theories and model helps in effective implementation as
they have used Bruke-Litwin model. It is recommended that they could also have used
Lewin's change model that would have facilitated in implementing change in stages by
Unfreezing existing policies , bring change and they refreeze it. Few more
recommendations for Golden Wonders are they should implement changes one by one
as it will help the employees to be more effective and to focus on their core
competencies as it will help them to increase their profitability.
Report 2
1.Introduction to the Golden Wonder:
Overview of the case : Golden wonder is a snack manufacture which has been
facing changes due to change in taste and preference of the consumer. They are
more health conscious which is why they even prefer snacks instead of avoiding
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