Organizational Change: Analyzing Operations & Strategies of Firms

This report provides an in-depth analysis of organizational change, focusing on how operations and strategies are influenced within firms like Zara and Primark. It examines internal drivers such as cultural differences and financial management, as well as external drivers including political, economic, and social factors impacting leadership, individual behavior, and team dynamics. The report further explores measures to overcome the negative impacts of change, identifies barriers to change affecting decision-making, and discusses different leadership approaches to effectively manage change within organizational contexts. Ultimately, the analysis highlights the importance of adapting to change for sustained competitive advantage and organizational success.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse several organisational examples in which operations and strategies of firm has
been influenced.......................................................................................................................1
TASK 2............................................................................................................................................5
P2. Several ways in which internal and external drivers of change that affect leadership,
individual behaviour and team members within firm.............................................................5
P3. Measures to overcome negative impacts of change on organisational behaviour...........7
TASK 3............................................................................................................................................9
P4. Several barriers to change and identify how they impact decision-making of leadership in
context of organisation...........................................................................................................9
TASK 4..........................................................................................................................................11
P5. Different types of leadership approaches to deal with change into the organisation context
..............................................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Organisational change refers to the different types of modifications that may occur within
the workplace. It is considered as an essential characteristics for firm by which companies can
easily reach its successful goals through gaining competitive advantages appropriately. As it
refers to the alteration of structural relationship so that could be easy for employees to perform
their each task in a systematic manner (Kaufman, 2017). Therefore, technology plays significant
role as well into the firm through applying several changes within functions of firm. Present
report is based on PRIMARK AND ZARA. Further discussion will be based on different types
of organisational change as well as policy towards firm's strategy. After this, there are so many
internal and external drivers in regards with leadership and their barriers for change. At last,
several kind of leadership approaches that influence firm will get covered in this project.
TASK 1
P1. Analyse several organisational examples in which operations and strategies of firm has been
influenced
Organisational structure refers to the system that mainly shows that firms are adopting
advance technology by which they are directly able to achieve desired goals and objectives in a
perfect way. These sorts of activities involves several types of roles, rules and responsibilities.
Whereas, strategical plan may take long time but these assorted plan are always accomplished by
an organisation. ZARA is one of the best Spanish brand and very famous organisation as its
provide large number of products with several varieties (Azanza and et. al., 2013). It was
established in 1975 through Amancio Ortega and Rosalia Mera. For giving best goods and
services at marketplace this firm follows multiple organisational structure to achieve targeted
goals. On the other hand, PRIMARK, is the best fashion retailer which was formed in the year of
1969. it is headquartered in Dublin. Along with, this organisation follows tall organisational
structure in order to have large number of hierarchy. Difference between both firm on the behalf
of changing drivers has been described below:
Comparison between ZARA and PRIMARK
Basis ZARA PRIMARK
Technological Change It was the first organisation In order to bring so many
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who has been develop
different types of method to
bring quick changes according
to fashion trends with the help
of using supply chain systems.
With the help of doing these
changes, they are able to build
strong relationship with its
customers and give better
shopping experience to them.
Through applying different
types of tools and technology
they are able to install digital
functions by which they can
check every day transactions
and design more and more new
tools on daily basis. This
organisation mainly use IT in
order to do intelligence
marketing by gaining accurate
information from their
systems. It helps them to make
effective techniques by which
they can control and manage
all over system of firm and
operate every functional
activity in a easiest way.
Through having this system
they can deal with several
issues on daily behalf as well
as able to increase firm's
changes within clothing
material, this always use
advance techniques for
influence customers at
marketplace. It generally
follows such kind of
techniques by which they can
make their product in a short
way with less fund. By using
such technologies they are able
to fulfil their orders in a short
time and it increase their
sustainability at marketplace.
PRIMARK has biggest
changes after adoption of new
technologies. At present
scenario, this company mainly
use automation production
process as well as overcoming
manual work in stitching. With
the help of this change, firm is
able to expand its market in a
largest way. Apart from this,
PRIMARK generally use
video screen on their outlets as
well as stores in order to attract
large number of people in a
regular basis. With the help of
this they can give better
performance and able to
improve their ethical standards
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productivity effectively. It
attract large number of
customers day to day. With the
help of this driver ZARA is
able to adopt various changing
strategy including big data by
which Spanish clothing retailer
has managed their work and
achieve competitive
advantages. Therefore, this
sort of change successfully
established in ZARA and they
bring huge innovative
technologies by which they are
giving better experience to
their all over customers. Also
they have been adopted
augmented reality app within
its 120 stores in relation to the
promotional packaging. With
the help of this customers can
easily search location of
particular outlets and able to
reach in stores. Thus, it is
helpful technique for
customers and build strong
relations with firm.
towards it.
Structural Change There are different types of
organisational structure within
competitive scenario. On the
same side, in regards with
In context with PRIMARK, as
they have been expanded their
business into the Bangladesh
and US so that there is huge
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ZARA, they mainly use
vertical integration by which
manufacturer of this firm can
easily make goods within a
less period of time. Along with
this, respective organisation
also use few number of
websites in order to sell its
product to customers in an
effective manner. With the
help of online business they
can boost their sales level
especially in Europe. Apart
from this there are different
types of managing and control
policy to have particular
inventories in stock so that
they can use any time.
improvement in their sales and
its around 17%. Therefore, by
having great expansion of their
market they are needed to keep
its price low for long term
sustainability at marketplace.
Now a days it has 350 stores
and planning to launch new
outlets in coming years.
Difference towards organisational approaches to change
Within current scenario, there are different types of firm who are following different
organisational structure. Herein, ZARA includes various types of strategical agreements by
which they can develop best design of products and able to influence customers positively. In the
case of PRIMARK, they target 35 to 60 years people to achieve profitable goals. For this, they
have been adopted leadership style in which they sale its items with affordable price to
customers. Thus, it can be said that PRIMARK has effective team members as they support firm
to make them effective and attractive in front of their customers worldwide (Palmer and et. al.,
2016).
Similarities of organisational approaches
PRIMARK & ZARA both organisations have effective team work as well as
independence of decision making and opportunities for growth with new techniques is a biggest
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similarity. This is because as they generally follow same techniques as well as approaches with
the aim of gaining profitable advantages. Thus, both firms offer qualitative products to people in
order to sustain at marketplace for long period of time.
TASK 2
P2. Several ways in which internal and external drivers of change that affect leadership,
individual behaviour and team members within firm
Changes are essential in every organisation in order to achieve goals on time. Therefore,
every firm should focus on changing drivers to run their business in a proper way. With the help
of changing environment, firms can easily adopt various strategical tools and able to operate
each activity of business without any problem (Huczynski and et. al., 2013). Furthermore,
through adopting such kind of techniques will help them to meet desired goals and encourage
them to achieve targeted goals. There are different types of internal and external factors that have
impact on team members, organisation and individual, those are going to be discussed below:
Internal Drivers:
These are those factors which are always control and manage by the organisation in a
proper way. Whereas, internal factors generally involves cultural and workplace differences,
financial issues, man power that all have influence individual behaviour and so on (Cullen and
et. al., 2014). There are certain types of internal factor, those are as follows:
Cultural difference: This internal factor plays significant role within the firm. As
organisations are having large number of employees from several culture like nation, religion
and region. In order to minimise cultural difference from an organisation, they have to develop
effective culture so that employees can work easily and make firm productive. By following this
type of culture firm can reduce effect from leadership, organisation and individual. Along with
they can provide positive work culture to employees and they could understand their roles and
responsibilities. According to this internal factor of change, firms can get influence negatively
like culture can develop few conflicts between firm and employees like some employees are
from outside and not able to understand several concept of them. This type of situation may raise
any time and create negativity at workplace. For example some employees are younger and who
hold higher degrees rather than the other it directly affect all over team, leaders as well as
behaviour of people.
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Financial management: In this type of internal factor, team members of financial team
always makes effective budget for an organisation in order to bring innovative goods and
services within an organisation. For expanding business or selling several items of firm money is
the first requirement which is helpful for firm to operate their business and operations in a right
way. With the help of financial management firms can achieve their targeted goals with huge
profits. Herein, financial manager of firm is needed to allocate several task to their employees so
that they can make proper budget for firm. It would help them to maintain their overall sales and
revenue as well. Therefore, every financial manager of firm should have responsibilities to make
effective budget to gain huge success. This type of management activity can directly affect
leadership, individual behaviour as well as team members within the organisation. This is
because some people are not able to make effective decisions of business by which firm can get
loss and not able to meet their desired goals.
From the above specified internal factors that both firm ZARA & PRIMARK should use
these sorts of term in order to reduce impact from them. On the basis of this they can make
organisation attractive and better and targeted goals (McShane and Glinow, 2013).
External Drivers:
These assorted drivers are not controlled by an organisation and have positive and
negative impact on firm as well as their overall operations and functions. Herein, PEST analysis
in regards with ZARA & PRIMARK has been described below:
Political factor: Free trade agreements in Europe helped ZARA in order to increase their
sales as well as group sales. On the other side, PRIMARK UK, there are few factors which
always influence retail industry like stability or instability of political factors and so on. It
directly affect overall functions and operations of firm, so that they need to make their policies as
per the UK government to achieve targeted goals.
Economic factors: ZARA is one of the fastest growing organisation of Spain as this
brand is have huge sales as well as profit of clothing retail industry. This is because Spain has
large number of population and level of unemployment. Therefore, high quality of goods and
production cost overcome prices that attract the consumer most. In regards with PRIMARK UK,
they have impact from Brexit so that they have biggest pressure and not able to meet consumer's
needs at marketplace (Cummings and Worley, 2014).
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Social factors: This factor includes different types of culture, buying behaviour of
consumers, demographics and so on. Whereas, ZARA has large number of customers so that
they operates their business online as well it attract consumers the most and improve their selling
process by reducing other costs. It makes effective business and increase appropriate value of
ZARA by 10%. herein, PRIMARK UK, they also have large population but at few level there are
so many issues within clothes industry which impact on their sales as well as revenue.
Technological factors: This is based on innovative ideas and views with the help of
different types of tools and technologies. As ZARA have new augmented reality technique which
would allow customers to specify their pieces of clothing. So that customers can purchase
several goods of this firm from anywhere by using their smartphones and laptop. So that, it
influence firm positively. Whereas. PRIMARK UK, they doesn't operate e-commerce websites
so that they have lack development of technologies that pulls down within retail environment. So
that they have negative impact of this factor Therefore, they should adopt few changes in order
to achieve particular goals and objectives (van der Voet, Kuipers and Groeneveld, 2015).
P3. Measures to overcome negative impacts of change on organisational behaviour
It is very important for firms to analyse the measures by which they are able to reduce
negative impact from firm as well as organisational behaviour. In relation with ZARA, there are
different types of strategies which all are followed by its manager to overcome problems of an
organisation. This can be understand in a better way with help of PDCA model, going to be
described below:
PDCA Model:
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Illustration 1: PDCA, 2020
Source: What is the PDCA, 2020
This model consist four stages as well as approaches in order to bring regular changes
within the goods and services for resolving each and every problem (What is the PDCA, 2020).
On the other side, it is considered as a systematic process that includes gaining results, testing of
possible solutions and implementation of new techniques. Thus, four stages in context of ZARA
mentioned below:
Planning: It is considered as an initial stage of this model, according to this firms are
needed to make effective plan by having so many views and thoughts in order to gain better
success in a perfect manner (Thomas and et. al., 2013). On the other side, as per this manager of
firms always make good plan that makes them valuable. In reference with ZARA, manager of
this Spanish brand always have great plan in their mind as they have followed updated
technology so that, it helps them to achieve desired goals towards making effective plan. Thus,
firm is able to overcome negative impact from firm and achieve targeted goals. By having
technological change manager of ZARA is able to plan for manufacturing more effective product
and services at marketplace so that they can achieve its desired goals. Further, it would help firm
to overcome negative errors from an organisation and makes it productive.
Do: After making appropriate plan ZARA is able to make effective strategical ideas in
order to implementations on that particular plan. For doing best manager of respective firm
always gives training sessions to their employees so that they can think broadly and improve
their working efficiency as well. Therefore, this stage help firms to achieve their goals. In
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addition to this stage, manager has liability to implements on their plan to grab huge attention of
customers in a perfect way.
Check: With the help of this stage, manager of ZARA is able to check its actual
performance with PRIMARK and run their function or operations accordingly. In order to reduce
negative impact on firm from another factors manager of ZARA is required to have different
types of strategies so that they can change overall functions as per the current needs and able to
perform their overall task perfectly. Through identifying or adopting several changes they can
beast competition and achieve their target by increasing sales and revenue as well. Additionally
it will help them to make effective position at marketplace (Fyke and Buzzanell, 2013). Through
applying effective changes like technological tools respective firm can easily reduce several
errors and also use wastage material from the manufacturing process.
Act: According to this last stage of PDCA model, manager of firms are able to have
several kind of measures for future purpose to meet future needs. In relation with ZARA,
manager of this company have purpose to attain long term sustainability by having lots of ideas
and thoughts as they always have welcoming feedbacks in order to reduce negative impact of
firm. Thus, this model is very helpful and effective in order to reach future target through
ignoring so many such kind of aspects. At the end Manager of ZARA able to get successful goals
with effective demand of their product at marketplace. It helps them increase huge sales and
revenue and overcome negativity from the organisation.
TASK 3
P4. Several barriers to change and identify how they impact decision-making of leadership in
context of organisation
Removing barriers is most essential for firms in order to sustain at marketplace for long
time, otherwise there are different types of issues and challenges those are faced by firms. By
having barriers in firm always gives negative results to the manager in regards with any aspect
related to business. Therefore, it is necessary for organisation to overcome barriers to bring few
changes and improvements, those are as follows:
Lack of employee involvement: This is considered as the biggest issue across the globe.
This is because sometimes employees have fear to get involvement within changing process of
an organization. Along with this, they are not able to face any challenges within firm. Thus, this
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