Strategic Change and Leadership in Zara and Primark Report

This report provides a comprehensive analysis of change management strategies employed by Zara and Primark. It begins with an introduction to organizational change, highlighting its importance in a competitive business environment. The report then compares technological and structural changes within both companies, evaluating the impact on their strategies and operations. It delves into internal and external drivers of change, assessing their influence on leadership, team dynamics, and individual behaviors. The report also explores remedies to mitigate the negative impacts of change on organizational behavior. Furthermore, it examines various barriers to change and their effects on leadership decision-making, followed by an overview of leadership approaches for dealing with organizational change. The report concludes with a summary of key findings and references used. Overall, the report provides a detailed understanding of change management within the context of these two major retail companies.

Understanding
and
Leading Change
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INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Comparison of various changes on an organization's strategy and operations.....................4
TASK 2............................................................................................................................................6
P2. Evaluation of internal and external drivers of change affecting leadership, team and
individual behaviours...................................................................................................................6
P3. Remedies to minimise negative impact of change on organizational behaviour..................7
TASK 3............................................................................................................................................9
P4 Different barriers for change and their impact on leadership decision-making.....................9
P5 Leadership approaches to deal with organizational change.................................................11
CONCLUSION .......................................................................................................................13
References:....................................................................................................................................15
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INTRODUCTION
Organisational change is mainly related to a kind of modification and alteration within an
organisation working environment (Hrebiniak, 2013). In simple terms this can be further
evaluated that there are different types of internal and external forces that affects an organisation.
Organisational change acts as a one of the essential process within the competitive working
culture. It can be further evaluated that organisational change lead towards affecting working
process of company. Thus, it is essential for an organisation to possess an ability through which
they can bring related modifications and alteration by changing their working climate, strategies,
policies and structural relationship. Present case study has been based on Zara and PRIMARK.
This report includes detailed analysis of comparison in between different drivers for change. In
addition with this report covers formative impact of change on the behaviour of leadership and
on behaviour of an individual. Furthermore, numerous change barriers and their influence on the
process of decision making have been included in this report. Along with this report include
approaches of leadership as to effectively deal with changes.
TASK 1
P1. Comparison of various changes on an organization's strategy and operations
Basis ZARA PRIMARK
Technological Change As to effectively modify
company process of ordering
formative advantage of point-
of-sale (POS) are undertaken.
In addition to this, by
effectively check availability
of current latest design
organisation adopts personal
digital assistance along with
Organisation take advantage of
different types of digital
technology in order to produce
best effective and qualitative
designer dresses. This will
further help company to reduce
their issues related to defects.
In order to keep up with
technology company is
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online market as to provide
easy shopping experience to
customers.
required to upgrade technology
With the help of which they
can further increase their share
against their rivals.
Technology Adopted Organisation effectively
undertakes mobile augmented
reality app (Kaufman, 2017). It
is mainly acts as a promotional
tool within 120 stores. In
addition with this organisation
takes advantage of “location
intelligence”. This will help
company to effectively track
any kind of footfall in their
stores.
Organisation effectively adopts
different types of software’s as
to efficiently improve
company performance. As per
accordance to technological
change organisation
implements performance
management software.
Structural Change With the help of online
websites sales rate effectively
increases mainly in Europe. In
addition with this with the help
of control policy quality of
product. Further, collaboration
has been made with
California-based Fetch
Robotics in order to take
advantage of artificial
intelligence in order to
effectively manage stock
inventory.
As to effectively increase sales
revenue margin of
organisation. Entity takes the
advantage of expansion and
further expanded it in US and
Bangladesh. It leads towards
formative increase of annual
company sale by 17%.
Currently organisation have
estimated number of 350 stores
and looking forward to have
more.
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TASK 2
P2. Evaluation of internal and external drivers of change affecting leadership, team and
individual behaviours.
Drivers of change- This refers to inclusion of factors which lay down the overall impact
on the industry or organisation. Industry participants are pressurised to modify their actions
which further leads to change in industries and organisations. Their are various external and
internal drivers of change affecting the individuals, team and leadership behaviours. Some of
them are defined below:-
Internal factors and their impact:
These factors are those situations occurred within the business organisation and are
under the control by the managers of the company. Some of primary internal forces are discussed
below:-
Organizational culture- This refers to the values, beliefs, traditions and perception of
the personnel working in the organisation. Their is impact upon the behaviour of the employees
because of internal policies and strategies (Latham, 2013). It lays down negative effect on the
productivity, employee turnover, profitability etc. with reference of ZARA in the year 2015,it
has been alleged of Corporate Culture Favouritism which was based on skin colour that shows
employees have been discriminated. Whereas, PRIMARK has good employee retention ratio as
employees are highly satisfied working with the company.
Poor Delivery- Organisations face problems related to service quality and delivery
services which impact the profitability ratio across all the outlets worldwide. Furthermore,
entities should focus on managing time for effective delivery of the products on time which are
demanded by customers (Jones, 2013). In context of ZARA, the customers are not getting
delivery on time for the products being purchased from online site because of improper supply
chain management. On the other hand, PRIMARK sell good quality products by better services
and also emphasis on maximising customer satisfaction (Kaufman, 2017)..
Financial Management- Management of the capital in effective and efficient manner is
very essential for the success and growth of the company. The decisions are based on proper
allocation of funds for purchasing new assets and raw materials etc. In the context of ZARA the
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managers should focus on maintaining the quality of products at low rates than their will be low
investment required. Whereas, PRIMARK makes huge investments which will provide with long
term returns by increasing sales for the company.
External forces and their impact
Technological Change- Their are frequent and rapid changes in the organisation because
of technological advancements and innovations in the environment. Every organisation should
remain updated and upgraded to gain competitive advantage in the market. Both ZARA and
PRIMARK to overcome the deficiencies in the organisation and focus on improving the
techniques according to the technological up gradations (Kotter, 2012).
Globalization- It refers to expansion and diversification of business operations at the
international level. The entry of more and more MNCs creates more competitive environment.
To gain competitive advantage proper allocation of resources should be made. With reference to
ZARA, it has gain competitive advantage in the overall market due to which is has been
popularised as the famous brand being recognized by everyone. Whereas, PRIMARK is not
recognized by large population as it is confined to UK market only.
P3. Remedies to minimise negative impact of change on organizational behaviour
Organisational factors hold the formative power with the help of which they can influence
and encourage business environment in an overall manner. These factors can be in the form of
internal as well as external. ZARA and PRIMAX can effectively take advantage of Bruke Litwin
model with the help of which they can overcome negative impact that may arise because of
environmental change and impacts on their business.
Bruke Litwin model was coined by Litwin in the year 1992. With the help of this model
effective understanding of different organisation parts can be done. Bruke Litwin model helps an
organisation to evaluate that area that are affected and interrelated:
External environment
External environment mainly includes factors that are related legislations, competitor’s
market areas and more (Kaufman, 2017). It is essential for ZARA and PRIMAX managers to
effectively considered impact of external environment upon organisation as both of the
companies offer their services with an aim to provide best effective and qualitative products to
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their customers at a low price. Thus, in order to accomplish this companies are required to take
advantages of Strategies and plans.
Vision and strategy
Every organisation operates their functions with formative Vision and Mission. Both of
these help a business unit to conduct business operations in an effective manner. As ZARA and
PRIMAX conduct their business operations in a same Industries along with similar set of
objectives which is to satisfy customers requirements and demands in best effective manner.
Thus, in order to accomplish this companies are required to formulate strategies in order to
accomplish the predetermined mission.
Mission and strategy
All the organisations have their separate set of missions and visions which is the real motive
of their company establishment. Thus, in order to achieve formative vision of company ZARA
and PRIMAX is required to take advantage of formulating strategies with the help of which they
can fulfil needs of the customers.
Leadership
Leaders effectively influence behaviours of employees. They act as a prime member in a
team. Thus, it is required by them to effectively encourage and increase employee’s moral
towards high end productivity. ZARA and PRIMAX operate their functions to satisfy customers
in best effective manner. For this it is essential for the companies leaders take advantage of
leadership styles and policies with the help of which they can increase company competitiveness
in a Marketplace.
Organisational culture
This includes believes and values. Thus, it is essential for company manager to effectively
interpret culture of the organisation to their employees along with expectations.
Task and individual abilities
It is essential for company evaluate requirement of modification and changes in their
workplace related to working styles and skills. Thus, it is essential for both of the company’s
manager to hire potential candidate at right place in order to increase organisation productivity.
Employee motivation
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In order to effectively influence employees performance it is essential for leaders to
continuously keep their employees motivated in an effective manner. For this companies
manager are required to conduct motivations on a periodical basis.
TASK 3
P4 Different barriers for change and their impact on leadership decision-making
With the help of proper and effective understanding of change organisation can effectively
able to formulate different types of innovative strategies with the help of which they can further
bring necessary changes in their functioning (Blewitt, 2012). It can be said that change acts as a
key essential function and a continuous process in each and every aspect of an organisation.
Managers of Zara and PRIMAX conduct their operations with the formative aim to bring change
in within their business functioning as to effectively increase their overall rate of production and
improve working strategy of business.
Barriers of Change management: All the individuals are not required to adopt changes as this
will create barriers in within an organisation change culture barriers. Further it will lead towards
creating a gap that brings negative impact on organisation daily basis activities and operation.
There are some certain areas of Change management mentioned below in a descriptive manner:
Lack of employee involvement
This factor is one of the most affecting barriers within Change management. As in this it
has been evaluated that individuals mainly are less inclines towards change and are resistant to
adopt any kind of change. This will act as a negative approach as this creates fear of being got
replaced. In relation with ZARA and PRIMAX it has been evaluated that there are some of the
loyal workers of organisation those who resist change. This will lead towards bringing a sense of
fear in their attitude resistance of change within employees arises because of lack of environment
in decision making process of employees.
Lack of effective communication strategy
It is important for a business organisation in order to effectively conduct the business
operations to adopt numerous communication strategies. With the help this they can enable
smooth communication process in the workplace. It is the basic responsibilities of ZARA and
PRIMAX managers to ensure that company have implemented best effective communication
strategies. Furthermore, managers are required to make sure that all the communication strategies
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are being adopted by the company workers. Along with this, it has been evaluated that lack of
effective communication within employees act as an element that lead towards workers
resistance towards change that impacts on leadership in effectiveness as this green lack of
employee trust.
Mentioned below Force field model of Change management is effectively define
Force field model of Change management act as one of the key essential approach to
study Change management. It was formed by Professor Kurt Lewin. This model contains factors
of restraining and facilitating:
Facilitating factors
These factors consists those elements that lead towards encouraging formative adoption
of change. There are some of the certain factors that are, requirement of alteration within
processes and outdated machinery (Aslan and Reigeluth, 2013). In context with this leaders
perform key important role as the effectively align each and every individual behaviour
characteristics towards formative adoption of necessary change in a company premise.
Restraining factors
These factors include different types of all those elements that are mainly consist within
inside and outside of a business organisation and lead towards effective encouragement of
change adoption within an organisation. There are some of the certain factors such as employee
resistance, consumer those who resist implementation of change and government regulations.
Negative factors of change behaviour
Negative factors within change behaviour effectively lead towards mismanagement of
organisation function. It also impact upon employees’ performance and hamper their growth and
productivity. This mainly happen because organisations find difficulties in order to guide their
employees in best effective manner. Thus, it leads towards creation of conflicts. Mentioned
below there are some negative factors:
Communication problem
Communication problem mainly arises when there is certain kind of miss understanding
in between two individuals as they may find difficulties to get the get point of each other
requirements and needs. Some of the basic kinds of issues that create communication problems
are personal relationship with team members and improper ability to explain feelings.
Inadequate information:
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Inadequacy of information affect an organisation overall productivity as if an individual
conduct their operations. It is hard for an organisation to effectively make calculations of
benefits of an organisation. It is mainly because presently almost all workers are served with
Benefits and extra incentives and further avoid paying taxes for public goods. This led towards
creating a negative behaviour and restrains them to connect with other individual in an
organisation.
P5 Leadership approaches to deal with organizational change
As modern world is dynamic and include different types of environmental factors that keep
on changing (Anderson, 2016). All these factors also affect an organisation smooth functions and
activities. Thus leaders act a one of the key essential element within an organisation. As success
of an organisation mainly depend upon approaches and styles that has been used by a leader in
order to handle related issues and problem within a working place. In addition with these leaders
holds a great responsibility as they are authorised to motivate employees. Mentioned below there
are some certain leadership approach given that can be considered by ZARA during the time of
organisational change:
Laissez- Faire:
This form of leadership approach is also termed as a delegative approach of leadership.
In this form of leadership approach leaders provide their employees with an charge to take
decision. With the help of this they can effectively create a work full working environment
within which employees can effectively increase their skills and knowledge. This will further
benefit organisation to increase their overall productivity. With the help of laissez faire approach
of leadership changes can be adopted and introduce within organisation working place in a
smooth manner. As with help of this employees can easily adopt and understand the formative
implementation of change in the working style.
Participative:
This is one of the most effective form of leadership style with the help of which
organisation like ZARA can effectively able to increase employees productivity. In relation to
this leaders of ZARA are required to effectively understand issues and related problems that have
been faced by company employees during the course of change. Along with this it also benefits
them to take further suggestions from workers in relation to find effective solution of an issue. It
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automatically helps leaders to influence employees’ interest towards organisation change and
further let them towards adopting change that has been introduced by a leader in a best effective
manner.
Autocratic
In this form of leadership approach leaders take all the necessary decisions relating to
functions and working of organisation by themselves. This approach is via-versa of participatory
approach (Alvesson and Sveningsson, 2015). In relation to this leaders of ZARA take formative
decisions that are required in company by themselves without taking prior suggestions from their
employees. In this form of leadership style leaders don’t let anybody to participate in the process
of decision making. With the help of autocratic form of leadership style leaders of ZARA can
able to take tough decisions which will bring long-term sustainability of company by adopting
changes in best effective manner.
With the help of all of the above mentioned approaches leaders of ZARA can efficiently
able to adopt required approaches as per according to the situation this will help them to
effectively adopt any kind of change in and workplace in best effective manner.
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