The Impact of Brexit on UK Organizations: A Change Management Analysis

This report delves into the implications of Brexit on UK organizations, examining the various types of changes stemming from the UK's departure from the European Union. It identifies key changes such as policy adjustments, shifts in import/export regulations, and employee turnover. The report explores the drivers of these changes, including political factors, human interests, and legal regulations. Furthermore, it analyzes the application of change management models, specifically Lewin's three-stage model (unfreezing, change, and refreezing), to help organizations navigate these transitions effectively. The report emphasizes the importance of adapting organizational strategies to mitigate negative impacts and capitalize on emerging opportunities within the changing economic landscape, covering aspects like policy changes, employee turnover, and economic management.

CHANGE
MANAGEMENT
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Type of Changes.....................................................................................................................3
Driver of change.....................................................................................................................5
Theoretical model of Change Management...........................................................................6
CONCLUSION...............................................................................................................................8
REFERENCES................................................................................................................................9
2

INTRODUCTION
Change management is a collective term for all approaches to prepare, support, and help
individuals, teams, and organizations in making organizational change. This report highlights
different types of changes which will be brought due to British exit from the European Union.
After that the report explains the different drivers of this change in an organization. After that
the report goes on to explain the different theoretical explanation through which organization is
able to implement the change management model very easily in an organization.
MAIN BODY
The British exit from the European Union
British had decided to leave the European Union which is known as BREXIT. This action
was taken on the back of some argument between British union and European Union. On 29
March 2017, UK government has started the procedure of leaving European Union by invoking
article number 50 of treaty European Union with permission from the parliament. This
procedure will brought the variety of the changes which has to be cope up by the different
organization in the market. As there will variety of different impact which will be brought by the
same in the nation and some or the other impact has to seen by organization in carrying out their
activity (Oliver 2016).
Type of Changes
As explain above also there are many different type of changes which will be seen by
different interested party in the market. Policy changes are one of the most crucial changes
which will be looked in the market. As UK has to restrict the variety of the operation which
were used to take part in the past with the European Nation for the same reason UK government
has to make sure that they used to bring the variety of changes in the policy of the nation which
used to restrict variety of the operation of UK nation as a whole. This sort of change will impact
different organization very badly as they have to adjust their organization policy against the
change which is being brought in the nation (Butler Jensen and Snaith 2016). One of the some
changes will be changes in the export and import policy for the organization. As it has been find
out that there are many different type of restriction which will be imposed by UK as well as
European Union at the time of exporting and importing of different product in an organization,
as in the past organization do not has to pass on with the lengthy procedure of checking or
3

evaluating of different goods or services of the company when trading with neighbouring
countries in the market. At the same time organization also do not has to take the variety of the
permission to export or import product from neighbouring country. This will eventually impact
the efficiency of trading with neighbouring country very negatively in the market, at the same
time this will also increase the cost of the company to produce or carry out different operation in
an organization (Young, 2016).
Another change which are seen in the market is that Brexit has created a variety of
uncertainty among the different employee working in Britain about the scope of working in
Britain, this has resulted in increasing the number of employee turnover policy. This has forced
the variety of the company to have variety of the changes in the recruitment policy of the
company to reduce the amount of employee turnover in the organization. As almost all the
employee are looking to migrate toward European Union nation as scope of job survival is very
high in European nation as compare to British nation. This has eventually created variety of
issue for the company to be considered in the organization (Schimmelfennig, 2018).
Looking at the point of view of UK government, it has been analysed that there will be
variety of the changes which government has to see in term of economy management. As due to
implication of Brexit it will get difficult for the nation to bring the foreign currency in the nation
the way it used to flow in the past. As number of restriction in trading with neighbouring country
will force the different organization in operating different activity in the nation only this will
eventually reduce the amount of foreign currency import in the nation. It has been also analyzed
that the amount of foreign investment in UK territory will be reduced by 50 percent. This will
eventually create variety of the issue for an UK government. This will eventually force the
company to bring variety of the changes in the promotional activity of the nation which used to
attract the eye of the foreign investor to invest their capital in Britain territory, as it is one of the
best changes which can be brought in the organization to boost the economy of UK and maintain
economy in variety of different situation in an market. This type of changes will eventually
impact the tourism sector of the UK. They will see that there will be reduced in the number of
the tourist. This will eventually impacts the economy of nation. As this sector used to contribute
very positively.
Not only Government or different organization has to see the variety of the impact and
make the changes in the market. Citizen in the nation are another important stake holder whom
4

also has to see a variety of the changes as well. The biggest change will be seen by them in the
market is the change in the lifestyle of their as it has been find out that it will get difficult for
different consumer in getting foreign product that easily in the market, as all the organization
will look to produce more and more domestic product in the nation, this will eventually create
the situation in the nation where different consumer may have to satisfy their need with the help
of domestic product this will have the variety of the changes in their lifestyle in wrong. It is not
that they will not get the foreign product but it may happen that they might have to pay better
amount for the same in the nation. This will eventually create variety of the issue for different
organization. This will eventually ask the company in planning the different activity in a way in
the organization in which organization has to make the different decision in a way in the
organization that product of the organization is able to satisfy the different need of the consumer
which are generally prevailing in the market (Dunn, and Webber, 2016).
After going through the different party which has to see different changes in the nation, it
has been identified that organization is the stakeholder whom has to see the variety of the
changes due to implementation of Brexit in UK. Not only had that organization had to change
the import or export policy or the recruitment policy in the nation. There are many other changes
such as expansion policy or Sales policy change which also has to be seen by different
organization in the market. It has been seen that all the organization has to consider the variety
of the nation and location and different circumstance to expand their organization. As
overlooking the Brexit impact at the time of expansion may leads to wrong impact on the
organization performance. At the same time organization also has to bring the variety of the
changes in the Sales policy of the company. As organization has to look at different routes and
aspect through which they can reach the customer of different nation that easily in the market.
Driver of change
There are many different driver of which has brought the variety of the change in the
nation for different stakeholder in the nation. Political factor is one of such type of driver in the
nation. As it has been analysed that there was some sort of argument on the basis of some issue
between two nations this has drive the Brexit in the nation. As a result UK has also decided to
make the different policy to restrict different operation with the European union this has
eventually drive the different policy changes in the nation (Ryan, 2016).
5

Changes in the organizational import and export policy or the sales or recruitment policy
are generally resulting of human interest and legal factor. Change in recruitment policy of the
company is drive by the human interest as it has been find out that most of migrate employee in
the UK are looking toward migrating toward the European nation. They were not sure about the
scope of their job in Britain Territory, as a result this sort of uncertainty among them has drive
the change in the recruitment policy of an organization. At the same time there are many
different legal laws and regulation which are generally implemented in the nation. This has
eventually created the situation in the market where organization has to follow variety of
different rules and regulation in the market to carry out operation of the business this has drive
the company in looking at variety of different routes to trade with different neighbouring country
this has eventually driven the change in the import , export or sales policy of the nation in the
market.
At the same time changes in the lifestyle of the consumer in the market is generally drive
by the change in the need and preference of different customer in the market. It has been
identified that relatively changing need and preference of customer in the market, has only given
rise to different need of the product in the market. So social need of the customer in the market
is the biggest reason which has drives the need of good quality of life in the nation.
Theoretical model of Change Management
There are two different type of model through which this change can be easily managed
by different organization very easily. The first model is Lewin’s Change management Model.
Appling this model organization has to go through three different stages. First stage is
unfreezing stage (Aichele and Felbermayr, 2017), in this stage organization has to make sure
that they used to Unfreeze all the past operation of the business. This can be done in the
organization by stopping all the past activity and organization also has to make sure that they
used to teach the different employee in the organization about the purpose of changing the
policy this will help the company in retaining the different employee for longer period of time in
the organization. Also, all the employee should be given the good training to cope with different
changes in the market. After that the organization has to look at the second stage of the same
that is change. In this step organization has to make sure that they used to bring the variety of the
changes in the operation of the business. This is the stage where organization has to make the
6

different strategy and different policy through which the changes can be defended in a positive
way. For example to defend the changes of import and export policy of the organization,
organization has to make sure that they used to make the different strategy for deciding the
different way through which organization can go through the neighbouring country for the
purpose of trading in the market. After that the organization has to go through the last stage of
the change management theory, it is the stage in which organization has to make sure that they
used to implement the different change management strategy in the organization. In this stage
organization has to implement the same and measure the impact of the same in the organization
(McIntosh, 2016). After seeing the response of same organization used to take the variety of the
decision in a organization in a way that it used to help the company in defending the different
challenge very easily in the market. It has been also analysed that organization generally used to
try different – different strategy to fix up and find out the best strategy out of the same which
can be used by the company in the market to reduce the amount of the loss and defend the
different challenges of changes in the organization.
Koter’s 8 step change management model is another model through which change can be
management that easily in the organization. This model used to follow 8 different step in the
organization to manage the impact of different changes in an organization. First step is to create
the sense of Urgency in an organization. Organization has to make sure that they used to create
the sense of urgency around the need of the change in the organization. This will help the
organization in sparking the initial motivation to get the thing moving in the organization.
Second step is to form a powerful Coalition, it is the step where organization used to convince
the change to every necessary employee who are finding why this change is being incorporated
in an organization. Create a vision for change in an organization; organization has to make sure
that they used to come up with the great idea and solution floating around it. After that in the
next step that is communicating the vision organization has to make sure that they used to
communicate the idea to all employees in the organization in a way that they used to find this
change important (Oliver 2016). In next step that is fifth one, organization has to make sure that
they have to remove the variety of the obstacles which are faced by the organization at the time
of implementing the change process. After that in next step organization used to make many
short term goal in the organization and has to make different short term win in the organization.
After that organization has to build on the variety of the changes in the organization and in the
7

last step has to make sure that they used Anchor the changes in corporate culture in an
organization (Butler Jensen and Snaith 2016).
CONCLUSION
After going through the above report the report conclude that their are many different type
of changes which are brought on to the performance of the business due to implementation of
Brexit in the nation. After that the report concludes that there are many different type of driver
which is driving this sort of changes in an organization. After that the report concludes that
Koter’s 8step change management model and Lewin’s change management model are two type
of the model which can be used by the company to reduce and defend the different challenges
which may be offered in an organization.
8

REFERENCES
Books and Journals
Butler, G., Jensen, M. D. and Snaith, H., 2016. ‘Slow change may pull us apart’: Debating a
British Exit from the European Union. Journal of European Public Policy. 23(9).
pp.1278-1284.
Oliver, T., 2016. A European Union without the United Kingdom: the geopolitics of a British
exit from the EU.
McIntosh, B., 2016. The British exit from the European Union-the challenges for business.
Aichele, R. and Felbermayr, G., 2017. Costs and benefits of a United Kingdom exit from the
European Union.
Ryan, J., 2016. A British exit would harm the EU’s global credibility–and it could rip apart the
Conservatives, too. LSE Brexit blog.
Dunn, D .H. and Webber, M., 2016. The UK, the European Union and NATO: Brexit’s
unintended consequences. Global Affairs, 2(5), pp.471-480.
Schimmelfennig, F., 2018. Brexit: differentiated disintegration in the European Union. Journal
of European public policy. 25(8). pp.1154-1173.
Young, A. R., 2016. An inflection point in European Union studies?. Journal of European
Public Policy. 23(8). pp.1109-1117.
9