Organizational Change, Leadership, and Impact on Business Strategy

This report delves into the realm of organizational change, examining its impact on business strategy and operations within two prominent retail entities: Marks & Spencer and Tesco. It explores how technological advancements and competitive pressures necessitate adaptations in both companies, influencing their strategies and operational structures. The report further evaluates the ways internal and external drivers, such as organizational culture and economic factors, shape leadership, team dynamics, and individual behaviors. It also assesses measures to mitigate the negative effects of change on organizational behavior, including communication and training. Employing relevant theories and models, the report critically analyzes organizational responses to change, highlighting barriers and leadership approaches. Finally, it concludes by summarizing the effectiveness of different leadership styles in delivering organizational change and providing recommendations for future strategies.

Understanding and Leading
Change
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INTRODUCTION...........................................................................................................................3
P1. Impact of organizational change on strategy and operations of 2 companies.......................3
P2. Evaluation of ways in which internal and external drivers of change affect leadership, team
and individual behaviors..............................................................................................................5
M1. Assess the different drivers for change in each of the given examples and the types of
organizational change they have affected....................................................................................8
P3. Evaluation of measures taken to minimize the negative impact of changes upon the
organizational behavior...............................................................................................................8
M2 Apply appropriate theories and models to critically evaluate organisational response to
change..........................................................................................................................................9
P4. Barriers for Change...............................................................................................................9
M3. Force field analysis............................................................................................................11
P5. Leadership Approaches.......................................................................................................11
M4 Extent to which leadership approaches can deliver organizational change........................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13
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INTRODUCTION
Organizational change is defined as a process that involves execution of modification and
alteration in systems, products, service or technique in an organization. This is crucial aspect for
every enterprise engage in any industrial sector as analyze different external and internal forces
in order to bring change (Yrjölä and et. al., 2019). It provide formative direction and guidance
through which innovative can effectively ensued with maximum profitability with the adoption
of change in business environment. This report has been conducted on Marks and Spencer,
company operate their services as a leading industry in retail sector and offer different type of
services and products to customers all around the world. In this report formative discussions has
been made on change that are introduced in two entities of same industrial sector along with their
impact. In addition to this, organizational strategy along with the driver of change as well as
measures to reduce negative impact of change is also discussed in this report. Lastly leadership
approaches are discussed in order to effectively deal with alteration process.
P1. Impact of organizational change on strategy and operations of 2 companies
Change acts as an essential element for an organization as it increases business efficiency
and effective execution of organizational operations. In this enterprise is required to make sure
that they incorporate changes in their business environment by evaluation different type of
factors in internal and external environment (Bogue, 2019). As each and every change have
capability that can impact upon business functioning. In context with this two organizations are
considered as to evaluate the influence of change upon its strategies and business functioning.
Change Marks & Spencer TESCO
Technological
Need
Due to the frequent changes that
undertake place within retail industrial
sector give rise the need of
implementing high-tech technology in
organizational premises in order to be
ensure more competitive
advancements against rivals. In
context with this, Marks and Spencer
There are constant changes that are
prevailing in global retail industrial
segment. This makes entities within this
to undertake use of emerging as well as
latest technologies through which taken
disrupt competitive market forces. Due
to this Tesco is introducing certain
alteration in their technology aspects in
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Impact on
Strategy
Impact on
Operations
is bringing innovative and high
technology in their workplace
structure as to serve consumers with
high quality products and services in
order to gain maximum revenue in
retail industrial sector.
organizational structure that aim
towards reducing efforts and times
invested by organization in workplace
structure in stock counting.
This has been evaluated that Marks
and Spencer is undergoing with
digital transformation via
improvement in entity website and
immediate exclusion of legacy IT
systems by leveraging on the
partnership with TCS.
In order to facilitate the change in
effective manner TESCO undertake use
of RFID technology through which
entity can effectively facilitate fast
tracking of consumers. With the help of
this technology Tesco can undertake
accurate inventory accounting process.
Due to implementation of high-tech
technology in company workplace
structure, it is essential for HR
department of entity to invest huge
fund to conduct training and
development session for employees in
order to make them compatible with
introduced technological trend.
Due to this technology Tesco can
measure significant impact upon their
time, money and efforts that can be
effectively saved by company that they
spend by physical counting of
inventory. This will significantly impact
upon reducing overall cost of operations
for Tesco.
Structural
Need
It has been evaluated that, Marks and
Spencer operate their functioning in
business environment which is
unstable. This pose threat towards
company if did not adopt changes
accordingly.
There are dynamic changes in global
retail sector that increases competition,
this makes entities performing the
business operations to undertake
significant alteration in their workplace
structure.
Company restructured their clothing TESCO undertake strategy to simplify
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Strategy
Impact on
Operations
team as well as execution home in
their United Kingdom outlets. In this
entity is required to increase their
marketing human resources and sales
as to ensure more revenue
(Kolokotroni, 2019).
operational structure of entity in order
to increase its business operations
efficiency. By bringing new structural
system company can ensure no
complexities in context with chain of
instruction to be followed.
Home team and clothing can undergo
with the impact, as in this alteration is
being done as to fulfill requirements
and objectives of organization.
This significantly impact upon HR unit
of Tesco, as in this they require to
recruit potential and new candidates and
further provide them effective training
that can make them comfortable work
in new organizational structure.
P2. Evaluation of ways in which internal and external drivers of change affect leadership, team
and individual behaviors
Change is an important aspect that is required to be implementing by every organizational
unit. In this they are required to identify and have proper understanding of factors that are
prevailing in internal and external environment as these have capabilities to influence business
operations in number of ways (Suriyantphupha and Bourlakis, 2019.). This has been evaluated
that Marks and Spencer facilitate technological and structural change in organizational unit.
Internal Drivers of Change
Organizational Culture: It involves aspects like customs, traditions, ideologies, values that
are being possessed by an organization. In context with this, it has been evaluated that Marks and
Spencer bring 2 main changes with the use of task culture. In this roles and responsibilities are
been allotted to individual in accordance with their expertise, potential, skill and knowledge.
With the help of this culture entity can increase efficient productivity level of their employees
and can generate positivity in their behavioral context. It also benefits entity to increase overall
productivity ratio and ensure more competitive advancements against rivals.
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Management Structure: It has been identified that in organizational management structure
encompasses the hierarchical order within which chain of command is being followed and
decisions are duly communicated. In context with this, it has been evaluated that management
structure aspect can influence behavior of team, individual and leader of entity. In relation with
Marks and Spencer this has been determined that entity applied top down structure in which
decision making process mainly hold by organizational top executives and then further being
communicated to lower management. With the help of this structure Marks and Spencer can
undertake the process of quick decision making and can ensure completion of targets in time
effective manner. With the help of this structure, managerial executive can give accurate
guidelines to their employees that also remove confusion in lower management. This increases
overall working capacity of employees through which change can be incorporated in well
effective manner.
External Drivers of Change
There are different factors pertaining in external environment that can affect
organizational business process and functioning in many ways (Seethamraju and Diatha, 2019).
In order to have proper understanding of these factors entity by undertaking use of PEST
analysis can effectively able to implement change in its organizational structure in well effective
manner. With the application of this framework Marks and Spencer can gain insight of certain
different types of factors prevailing in external environment and can have impact upon team,
leadership and individual behavior.
Basis Impact on Marks & Spencer
Political United Kingdom is having stable politics that offer attractive opportunities
with the help of which Marks and Spencer can increase efficiency of their
business processes. By taking advantage of democratic leadership entity
can effectively influence employees in which employees are allowed to
undertake task of their choices. This effectively impact upon leadership,
individual and group behavior, as it encourages innovative change in
organizational workplace structure.
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Economic Economics environment of United Kingdom offer many financial
opportunities through which Marks and Spencer can undertake their
different operations like transportation, logistic, infrastructure, supply
chain in a feasible and economical manner (Cruz Roche, Romero and
Sellers-Rubio, 2019). It maximize leadership, people and group efficiency,
as with the help of strong UK economy they can effectively execute change
in premises of entity in best effective manner.
Social With the passage of time, lifestyle and consumer trend in United Kingdom
is dynamically changing. This has capability to influence behavior of
leader and employees in Marks and Spencer. By offering attractive
incentives and rewards organization can make their employees, leaders and
workforce act as change agents. As if workforce within entity today feels
motivated then they perform their roles with high potential through which
entity can ensure its maximum growth.
Technological UK is technological advanced country that provides wide range of scope to
team and employees in Marks and Spencer. As it significantly enhances
creativity and innovation. In this context leadership within M&S they
mainly aim towards providing proper guidance and aid to improve
workforce through which can effectively implement positive changes in
organizational unit.
SWOT Analysis
STRENGTH WEAKNESSES
Marks and Spencer is having good and positive
brand image in retail industrial sector as entity
offer highly qualitative products and services
Main weaknesses that has been facing by
Marks and Spencer is that they are not having
qualitative product or services base for
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in market segment. individual with having medium income base.
THREATS OPPORTUNITIES
Major threat that has been facing by Marks and
Spencer is related to fluctuation in economic
environment of United Kingdom due to brexit.
Marks and Spencer can gain significant
opportunity by taking advantage of technology
as it further allow them to satisfy customers
with innovative an unique products and
services in best effective manner.
M1. Assess the different drivers for change in each of the given examples and the types of
organizational change they have affected
Technological advancements: This is most important and effective driver that effectively
facilitates technological changes in organization in effective manner. With the help of this
company can effectively able to ensure their practices and systems are aligned with factors and
trends that are prevailing in marketplace.
Rivalry: The factor is driver that facilitates both Marks and Spencer and Tesco to bring
structural as well as technological change in their organizational structure, due to intensive level
of competition in retail industrial sector. This makes entity to undertake actions and strategies
that are being used by other competitors and facilitates to bring change in technology for both the
entities as to ensure maximum competition with long term sustainability.
P3. Evaluation of measures taken to minimize the negative impact of changes upon the
organizational behavior
Change is defined as an important process for an entity that ensures their long-term
sustainability in respective industrial sector. There are different factors of change that have
negative and positive impact upon organizational functioning. This makes necessary for M&S to
undertake strategies and measures to overcome negative impact of factors upon organizational
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this activity. By taking efforts Marks and Spencer can ensure effective execution of new change
in their organizational structure.
 Marks and Spencer is required to make sure that they undertake regular marketing
research in order to evaluate current prevailing trends in business environment. With the
help of this entity can effectively able to enforce change and can make employees
compatible to it by communicating the alteration in advance. It increases chances for
company to ensure maximum support from their workforce.
 Marks and Spencer by conducting regular training to communicate employees related to
the sudden change that are been implemented by organization can effectively able to
ensure success of change. Adoption training sessions will effectively allow employees to
overcome negative aspects of change through which they can overcome them with their
high performance and potential.
Ways to minimize negative impact of change
 In addition to this, Marks and Spencer is also required to undertake use of effective
strategies and measures in order to increase efficiency of their decision making process.
This will allow entity to increase overall profitability generation capability of company in
a well defined and efficient manner.
 Further this has been identified that, Marks and Spencer by taking use of high-tech
technology and innovation into consideration can maximize overall organizational
efficiency that further allow them to increase their competitive edge in respective
industrial sector.
 In addition to this, by undertaking use of professional executives for strategy formation
Marks and Spencer can effectively able to overcome negative impact of changes.
M2 Apply appropriate theories and models to critically evaluate organisational response to
change
PDCA cycle is being undertaken by Marks and Spencer in order to manage, improve and
control operations of business in a well effective manner. This model mainly emphasize on
standardization of necessary data and information in order to reduce unnecessary errors. It
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basically includes 4 essential elements that are Plan, Dom Check and Action. In this stage
indicates towards analyzing essential information as to formulate plan as to implement change.
Next stage states, a specific solution is executed and its outcomes are thus compared with the
planned outcomes. Third stage of this model ensures effective stipulation of efforts in order to
reduce gaps among desired and actual performance. While in context with last stage, execution
of action is done in actual manner within Marks and Spencer as to bring the change of innovative
and high-tech technology in business process as to increase profitability and performance of
organization.
P4. Barriers for Change
Change is essential for company that also required careful efforts by employees and
leaders in order to ensure its maximum success. In context with this has been evaluated that there
are different type of factors that acts as barriers and constraint to change. In this organization is
required to evaluate probable barriers as to implement change in workplace structure in effective
manner, by reducing negative impact of changes. In context with Marks and Spencer changes
that can impact upon company execution of structural and technological change are define
below:
Lack of Employee Involvement
This is most visible factor that affects organization in their change execution process. It
has been evaluated that workers are not engage in the process of change strategy that makes
entity to provide them with necessary and accurate information related to it (Pantano and
Vannucci, 2019). This has been examined that this significantly impact towards proposed
changes by organization. This is mainly because of the lack of supervision and direction by
leader related to the change. In this due to absence of leader initiative employees show restrictive
behavior towards planned changes by Marks and Spencer. It further leads towards opposing
innovative changes within premises. In order to overcome this communication turns out to be
effective measure through which management can make employees to effectively contribute
their path in change execution.
This barrier, to a great extent, impacts upon leadership in which leader do not provide
necessary and sound information to workers. In context with the introduction of changes in
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Marks and Spencer this makes essential for leader to offer motivating factors to their employees
with rewards and incentives, in order to encourage them towards facilitate change in effective
manner. In this it is also important to conduct regular meeting and training sessions in order to
make employees compatible with the necessary skills and knowledge related to the change.
Lack of Effective Communication Strategy
Lack of communication is most barriers that can affect organizational change
implementation process. In this it has been evaluated that with the use of extensive
communication leaders in entity can effectively able to convey advantages of changes to
employees. It is a route map through which entry can ensure maximum support from individuals.
It also benefit respective organizational unit to ensure effective execution of change. This has
been evaluated that, because of leader lack of initiative to undertake use of extensive strategy
through which they can transmit organization main vision of change to workforce turn to be very
hard for organization to formulate corporation with their workforce, as they are not interested in
accepting changes in their routine work.
Due to this barrier, leadership in Marks and Spencer significantly get affected in which
leader by taking advantage of extensive communication strategy can effectively able to convey
necessary and relevant information to staff related to change. In addition to this leaders by taking
use of communication can encourage their workers related to benefit of new technology and
structural changes for their betterment. Thus with the help of concentrated communication
information’s can be offered to employees in context with proposed changes. This makes
management to ensure maximum workforce support in a well defined manner.
According to the evaluation it has been identified that there are different types of barriers
that can impact upon change execution and can further hinder execution of change in
organizational unit (Rogers, 2019). For this Marks and Spencer is required to have proper
understanding of essential aspect and developed formative relationship with employees through
extensive communication in order to ensure successful implementation of their goals.
Strategy to overcome barrier of Changes
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It has been evaluated that, Marks and Spencer is facing number of challenges that may
impact upon their overall profitability and productivity. In this, as to overcome these challenges,
entity by taking advantage of different strategies likes two-way communication, employee
involvement, leadership and negotiation can effectively overcome these challenges in a well
defined and effective manner.
M3. Force field analysis
Facilitating Factors: This factor mainly involves elements that are pertaining business
environment of company that facilitate company to bring change in their premises. In this factors
are mainly are related to outdated machines, decrease in moral of employees, outdated business
process, change in consumer preferences, technological advancements etc. By having proper
understanding of facilitating factors Marks and Spencer can ensure proper knowledge related to
the technological trends that are prevailing in retail sector.
Restraining Factors: In this element related to business environment that create obstacles
in the execution of change. Factors in this involve elements include changes in regulation of
government, employee resistance, negative laws and more (Perry, Kent and Bonetti, 2019). In
this it is essential for Marks and Spencer to evaluate restraining factors in best effective manager
and ensure that there is strong communication strategy prevailing in organizational structure. As
to overcome the issue of staff resistance by offering training session and taking use of extensive
communication channel Marks and Spencer can overcome the issue of staff resistance towards
change..
P5. Leadership Approaches
It is essential for an organization to make sure that proposed change is been effectively
implemented in organizational workplace structure according to the set standards in order to
ensure positive end outcomes (Hüseyinoğlu, 2019). It has been evaluated that change encourage
business functioning towards smooth operations along with maximum competitive advantages in
context with this Marks and Spencer undertake use of two leadership approaches in order to
identify that technological and structural change provide outcomes according to the entity set
targets.
Democratic leadership style
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