Business Report: Understanding and Leading Change - Aldi Analysis

This report, focusing on 'Understanding and Leading Change,' analyzes the impact of change on organizations, using Aldi as a case study. It examines internal and external drivers, such as technological advancements, structural changes, and market shifts, and their effects on organizational strategy and operations. The report compares Aldi and Tesco, evaluating their responses to change, including technological adoption and structural adjustments. It explores various change management models, including Lewin's model, and assesses their effectiveness. The report further investigates the influence of change on leadership, team dynamics, and individual behaviors, while also evaluating measures to mitigate negative impacts. It discusses barriers to change and their impact on leadership decision-making and applies different leadership approaches to address change within an organizational context. The report concludes with a critical evaluation of the effectiveness of these leadership models and approaches in change management.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations...................................................................................1
M1. Different drivers for change ...............................................................................................3
M2. Appropriate models and theories for organizational response to changes..........................3
D1. Recommendations and conclusion regarding changes.........................................................4
P2: Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation......................................................................4
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.............................................................................................................6
M3. Analysis of driving and resisting forces and how it influence in decision making.............7
D2. Evaluate use of force field analysis to meet organizational objectives................................8
TASK 2............................................................................................................................................9
P4: Explain different barriers for change and determine how they influence leadership
decision making in a given organisational context.....................................................................9
TASK 3..........................................................................................................................................10
P5: Apply different leadership approaches to dealing with change in a range of organisational
contexts.....................................................................................................................................10
M4: Evaluate the extent to which leadership approaches can deliver organisational change
effectively applying appropriate models and frameworks. ......................................................11
D3. Critically evaluation of effectiveness of leadership models and approaches of change
management..............................................................................................................................12
CONCLUSION..............................................................................................................................12

REFERENCES..............................................................................................................................13

INTRODUCTION
Change is very essential for the business in order to gain the desired growth and success
in the market place. Understanding change is very vital for the management of organisations in
order to determine its impact on the business operations and activities. The change can both
positively and negatively impact the organisation depend upon the internal and external factors
of business. Employees also need to adapt the change in their working style in order to gain
desired result and performance. The taken organisation in this report is Aldi which is a
supermarket chain based in Essen, Germany. This report will assess the various drivers of change
and ways through which different organisations respond to the drivers for change. This report
will also discuss the effect of change on leadership, team and individual behaviours along with
the measures which can be used for minimising the negative impacts of change on an
organisation. Further different barriers for change and their influence on leadership decision
making will be discussed in this report. In the presentation, different leadership approaches for
dealing with change from the organisational context will be provided.
TASK 1
P1: Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations
Change is the most important part for the growth and success of businesses which effects
on the productivity and performance of the firm. These change are mostly found in strategies,
policies, culture, technologies etc. for achieving the predetermined goals of organisation in the
specified time. Different organisations implement the change for enhancing their organisational
culture and working environment. By enhancing the culture, organisations can improve their
profitability and productivity (Alkahtani And et. al., 2011). Both Tesco and Aldi had faced such
type of change which improved their efficiency and performance upon the implementation.
Change Aldi Tesco
Technology Aldi is a retail firm in which the
technological change is based on the
social media marketing in order to
Tesco is a retail sector firm who
introduced their own mobile app for
attracting huge number of customers
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the products. It is necessary for Aldi
to improve the efficiency of their
operations and products. The
company started to use the digital
media such as social media and
internet for promotion instead of
traditional methods. By adapting to
this change, Aldi is improving their
customers and market share by
delivering the products at low prices
to a large number of people.
to accomplish improved results.
Innovation is normal change in
Tesco and it for the most part
impacts the activities of organization
in conveying their items and
administrations to their end clients.
Change likewise impacts the
evaluating system as the buyers of
retail part will in general purchase
items and administrations by online
entrances and sites.
Structure Structure change in Aldi is associated
with the change in procedures of
command and administrative. In Aldi,
higher level managers provide the
guidance to the medium level
managers and these medium level
mangers provide the guidance to the
lower level employees. It is an
appropriate levels of leadership which
straightforwardly impacts the
working of representatives so as to
pull in more clients and to do their
work with full effectiveness and
abilities.
Structure change in Tesco is
associated with the hierarchical
structure and job structure. Both of
these impacts the techniques and
activities of the business
legitimately. In this way, it can
likewise impacts the execution and
efficiency of the Tesco in market.
Employment structure of Tesco is
exceptionally viable because of the
arrangement of giving reasonable
pay to the laborers by the supervisors
dependent on the execution and
information which is exceedingly
affecting the tasks of firm.
From the above examined data it can presumed that change is basic for the two
associations for improving their effectiveness and execution. By adjusting to the mechanical
change, both organization can upgrade their client just as can pick up the supportability in the
market (Anderson, 2016).
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Both organisations should needs to provide technical training sessions to their workforce for
improving their technical skills in order to use the updated technology properly and to follow it
for attracting more customers.
M1. Different drivers for change
Change is commonly driven by the circumstances & takes place with certain goal in
company, some of drivers of the change are to beat competition, to cope up with changing
environment and various technological changes to better process efficiency. Structural changes
are changes which made to company structure which might stem from external or internal factors
and critically affect the way company run. As in Aldi company, structural changes involve things
like chain of command, administrative procedures, management structures and job structure.
Structural and technological changes have positive impact on these organization to implement
and develop different techniques and new ideas regarding products and this type of change will
help in marketing.
Changes in marketplace is a type of structural change that might required to be made to
give respond to market shift like building new departments which can produce according to
market demand from the communication providers. Such type of changes make organization
more efficient to compete with other organizations. Different strategic changes include making
changes in purpose, strategy and goals to get better results in future. This can have impact either
positive or negative. These drivers help to company to change their goals and how they can
implement their product by making changes which are suitable and effective in market.
M2. Appropriate models and theories for organizational response to changes
Lewin's change model management model is most popular approach and easy to analyse
by splitting process of change into 3 stages which can break huge, clumsy shift into the bite-size
chunks that account for people and processes in particular company. This model describes three
stages which are unfreeze, make changes and refreeze.
Unfreeze: Upon realizing that particular company requires to change, the primary step
will be unfreeze current process and taking a look on things which have been done as every
company requires to know that what is going wrong with current process and why changes are
needed as well as benefits which will bring changes.
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Make changes: Once everyone prepared, this is the time to deploy changes as well as
guide team as they apply it. Support, education and communication are vital for limit difficulties
in address and transition problems as they arise.
Refreeze: As changes take place it has been tweaked, deployed and measured according
to the feedback which has to be refreeze in company. Regular reviews required to carried out to
estimate new methods which are being followed. With the help of this model changes can be
made to develop and implement the goals so that it can have good impact in future on
organization.
D1. Recommendations and conclusion regarding changes
As above theories and model explained that changes are needed for any organization or
company to make it more better. Changes plays major role to accomplish future goals and needs
of company so that they can improve their products and services. As in market, there is a huge
competition to for the better marketing of their products. Any organization adopt driver of
changes so that they can make their technology more effective in order to compete with other
companies. To make changes they can better their structural which plays important role in any
organization and has positive impact. By using Lewin's change model management model
changes can made in order to complete goals which are beneficial for Aldi company to make it's
product more better which will increase the demand in market.
P2: Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation
Different internal and external drivers of change impact the authority and conduct of
team and people legitimately. Aldi is a general store of Germany and has different sort of
workers who are playing out their activity viably for the improvement of association to
accomplish the ideal authoritative goals. The ways for affecting the administration and conduct
of group and people are talked about beneath:
Internal Drivers: These drivers includes cultural differences, morale of workers and the
various situations which are present in the organisation. Some of these internal drivers are
discussed below:
Financial management: Funds are basic prerequisite of the associations for
appropriately completing their activities (Bevan, Plsek and Winstanley, 2013). Absence of funds
straightforwardly impacts the teams and people for executing their assigned work in the pre
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determined timeframe. By upgrading the operational initiative, Aldi can improve their efficiency
and execution in doing their exercises in an appropriate way.
Resources: Resources straightforwardly impacts the execution of assigned work of
individual and group. Managers give the required help and direction to the individuals for
accomplishing the long term targets and objectives. Along these lines, these can likewise impact
the execution of activities of Aldi straightforwardly. Close to this, groups are formed for
executing a particular task which is set by the managers of the company
(Brown, 2012).
External drivers: These drivers are another aspect of change which can directly effect the
performance and productivity of the firm. These drivers can be determined by the PEST analysis.
Political: The change in political factors can effect the public funding and their priorities.
Aldi must follow the rules and regulations which are implemented by the government for smooth
functioning. Leaders of Aldi needs to determine the changes in laws as changes in laws can
effect the policies and strategies of business operations. These rules and regulation directly
effects the leaders for dealing with the change in laws. These factors also impacts the team and
individuals performance as they needs to decide the ideas and way for properly executing the
task in the changing structure of business.
Economical: These factor includes employment factors, customer behaviour, interest rate
etc. which can directly effects the leadership, team and an individual. The behaviour of leader is
effected when the buying power of customers is low and company needs to implement improved
strategies by reducing the prices of their products. Due to change in policy, the performance of
team will also be effected. If such changes occurs frequently then management of Aldi needs to
terminate the workers for cutting the costs.
Social: These variables impact the requests and needs of items in the market. For
handling such changes, management needs to determine the changes in trends and needs of their
customer so as to provide the products accordingly. These variables likewise impacts the group
execution as these elements give the chance to group to substantiate themselves in time of
intense need. It will improve their execution productively and adequately.
Technological: These elements are related with the adjustments in innovation for
expanding the profitability of association. Change in innovation gives the adaptability to the
managers of Aldi for giving direction and backing to the workers so that they can become
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innovative in finishing their work.With the assistance of innovation, execution of work can be
easily done by teams and people
P3: Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
The measures which need to be taken for minimising the negative impacts of change on
the behaviour of organisation are as follows:
Employee resistance: It is considered as emotional factors which are because of change
in the organisation. Existing employees in an organisation reject the change as they are
comfortable with the all processes of organisation. But due to the change, their lacks the interest
in their work due to stress, loyalty loss in organisation, changes in their personal life and
increased time of the work (Drago-Severson and Blum-DeStefano, 2018). The resistance of
employees is not good for the Aldi as it leads to decreased profit and performance of the
organisation.
For reducing the resistance of employees, Management of Aldi must provide rewards and
benefits at fixed intervals of time to the workers according to their performance. This will
motivate them to work properly for receiving these performance based rewards. Management
must also hear their problems and should provide suitable solution to them. Also management
can provide them necessary training for adapting to the change and do their work for the
betterment of firm.
Weak industry influence: Weak industry influence occurs when organisation does not
capable of implementing the change which can leads to their reduced performance and market
share in the market. Other competitors or rivals then see the company as weak due to lost
reputation and brand image. This can lead to reduced productivity of the organisation and also
the firm can lost their investors and customers. Negative image of firm among the various
stakeholders can results in low performance of the Aldi. These are some of the impacts which
occurs when the organisation fails to accept change.
Inefficient processes: Inefficient processes can also negatively impacts the organisation
which can be overcome by the organisation by hiring more talented people who can execute their
assigned work in proper manner (Foltin and Keller, 2012). If the new recruits wants to use
updated and new tools and technology, then it can leads to loss of organisation as the updated
tools and technology is expensive and company can face problems in providing sufficient
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resources to the employees. This leads to inefficiency in the operations and process of the
organisation due to the lack of resources.
For solving this problem, Aldi should use the trial and error method in order to
accomplish the predetermined goals in an effective manner. Through this method, management
of the Aldi can determine whether the available solutions are profitable or not for the firm. The
management can suggest the utilisation of new techniques and available resources to the
employees for carrying out their work efficiently.
M3. Analysis of driving and resisting forces and how it influence in decision making
In this model there are two types of forces driving change and restraining forces, there is
an equilibrium between these two sets of forces. To make changes driving force has to face
restraining force. Driving forces are those which makes business more better and also increase
performance and probability measures. In order to make changes organization face some barriers
such as uncertain economic conditions, higher costs of the inputs and increased demand for
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Illustration 1: Force field analysis- Kurt Lewin, 2018

better quality. Making changes can have critical impact on organization. Making complex
decisions are difficult because there are many factors which plays major role at the play. Force
field analysis is very useful for testing situation by looking driving as well as restraining forces
which influence change in Aldi. It also help group or person more effectively make decisions and
holistically consider as key factor which may undermine success of proposed change. As this
helps to analyse both positive results and obstacles which impact on decision making, it can
improve decision as seeing both negative and positive side of any decision which is for
development and implement.
Every change in any organization has to face some barriers in order to make their market
more effective. This model which critically evaluate every decision related change and it can be
progressed so that it will be beneficial. Analysis both negative and positive impacts are very
important to get desired results. Given model is very important to understand changes and ways
in which it will effect company. After understanding each step then decision can be taken to
make changes in goals. Both factors makes strong the ability of decision making as person will
get to know about their decision which is effective or not and will give positive results.
D2. Evaluate use of force field analysis to meet organizational objectives
From the above in information it has been analysed that leadership models and
approaches plays important role to understand and leading change. Leadership model and
approaches are essential to avoid implement related barriers and try to focus on the plan of action
which is more suitable. For example Lewin's change management model is effective and popular
model which makes possible to understand structured and organizational change. As in this
model there are three steps which helps to analyse decision and helps to make changes such as
unfreeze, change and refreeze. Stages like strategy, structure, systems, shared values, styles, staff
and skills which are very important in any organization to make changes. This model integrates
practical as well as emotional component of change which are essential to create ways to change
employees to deal with the transition easily. It also offers directional factors to make changes
like organizational change in Aldi.
This model helps to company for analysing different situation which can be create due to
the any particular decision making. By using this model Aldi organization can meet the required
objectives which are important to accomplish goals in order to make changes. The thee stages
which are very important to make any decision which is related to product implement and will
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increase marketing of that particular product. From the above report it has been analysed that this
model is very essential to make decisions and further development of Aldi. This makes sure that
company is making changes are suitable for their organization to implementation and how it will
impact on company.
TASK 2
P4: Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context
Barriers for modifications are those constraints which can arose at workplace during the
implementation of change. These barriers impact directly on the association and the basic
leadership procedure of pioneers and directors. These hindrances additionally contrarily impact
the basic leadership aptitudes of the board.
Rules and regulations of government: This boundary likewise impacts the profitability
and execution of the firm legitimately. Such kind of barriers is primarily outer hindrances which
impacts the efficiency and benefit of the organization. It is important to pursue the different
standards and guidelines of government when an organization goes into new market for making
development and progress. Aldi can catch high piece of the pie when the strategies and laws of
government are pursued legitimately. Along these lines, this boundary additionally impacts the
basic leadership process for creating and actualizing new advantageous systems and
arrangements.
Improper training and development: This obstacle also affects leadership and decision
making process of firm. Without initial preparing and advancement programs, representatives
couldn't complete their work with the required proficiency. It is important for managers of Aldi
to give at work and off-the-work preparing for propelling and empowering their specialists for
working adequately and productively for supporting the development and advancement of
association. In this way, giving preparing to the workers is exceptionally fundamental for Aldi
for future advancement and development of association in the ideal timeframe.
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