Report: Understanding and Leading Change in Business Organizations

This report examines the critical aspects of understanding and leading change within business organizations, focusing on the drivers and impacts of change on organizational strategy. The report presents case studies of Travelodge and H&M, analyzing them through SWOT and PEST analyses to identify key change drivers. It explores the influence of change on organizational operations, leadership, team behavior, and individuals, while also discussing strategies to minimize the negative impacts of change. The report also applies force field analysis to assess support and opposition to change, and identifies barriers to change in decision-making and leadership. Finally, it evaluates the implementation of change and its success, and applies different leadership approaches to address change in various organizational contexts. The report emphasizes the importance of effective change management for business success and adaptability.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Drivers and impacts of change and its affects on organizational strategy...............................1
2. Overview of company case studies..........................................................................................2
3. SWOT/PEST analysis for each case study to determine drivers of change............................3
4. Impact of change and influence of change and its effects on organizations' operations and
strategy.........................................................................................................................................5
5. Change affected individuals, leadership and team behaviour..................................................6
6. Minimized the impact of change and appropriate models to procedure change efficiently....7
TASK 2............................................................................................................................................8
1. Introduction to the case study organization.............................................................................8
2. Application of force field analysis to determine opposition and support for change..............9
3 different barriers to change and there influence in decision-making and leadership.............10
4 implementation of the change and its success........................................................................11
5 Apply different leadership approaches to dealing with change in a range of organisational
contexts......................................................................................................................................12
REFERENCES..............................................................................................................................15

INTRODUCTION
Understanding and leading change is very important for business organization as it helps
to manage change and working environment according to it (Al-Haddad and Kotnour, 2015).
Change make negative and positive impact on firm, sometimes it permits workers to learn
something new, allow them to learn new skills and explore new opportunities in ways that at
long last benefit for company. On the other side it makes negative effects on workers'
performance as well as company and decrease their profitability. The present report is based on
H&S and Travelodge company both are belongs to different sector in UK. This study explains
drivers of change and impacts of change on organizational strategy and also describe the case
studies of two different organizations. PEST analysis for each case study to determine drivers of
change and impact of change on each company and its effects upon organization's operations and
strategy. It justifies affect of change on leadership, team behaviour and individuals and ways to
minimised the impact of change and proper models to procedure change efficiently.
TASK 1
1. Drivers and impacts of change and its affects on organizational strategy
Change drivers is the external or internal pressure that shapes change to the company. It
includes change to plans, products, operations, designs and strategy.
Internal drivers of change including, resources, dissatisfaction of employees,
inventions, capabilities and motivation.
External drivers of change including consumers, investors, technology, competitors and
government.
All the above drivers of change impact business as well as their financial performance,
for example due to lack of talented peoples it effects on company working abilities and market
reputation. This driver of change mostly influence on operational efficiencies and lower down
the productivity, it brings many changes within firm which is not appropriate for progress in
marketplace. On the other side dissatisfaction of workers is considers as internal driver of
change, that put pressure on firm to also make changes in their existing working structure. Job
dissatisfaction is refers to negative and unhappy feeling about work environment that impact on
business growth and position. Due to dissatisfaction, many employees switch to better job
opportunities and required the best working environment around workplace. It may pressure on
management to make some changes in its current environment of workplace which is beneficial
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for retaining talented peoples. Capabilities refers to the workers abilities to perform the given
tasks or work expected to required standards. Due to lack of employee capabilities management
take better decision and change its training and development plans (Espedal, 2017). Very few
staff members perform work badly, fail to accomplish task and make mistakes, which effect
operational efficiency the most, it can be shows as impact of change.
Due to all drivers it affect on organizational strategies and management plan, in which
they need to deal with them via making effective strategies and using different suitable tools. For
example, to improve the performance of workers manager need to make the best training and
development program that helps to enhance the working abilities of persons.
Moreover, business competitors is one of the external drivers of change that effect the
whole business operations and current plans or strategies. Management must analyse the strength
of their business rivals and take decision to raise their position better than others in marketplace.
On the other side when company need to expand their business in another country in
order to increase profit in which they require a lot of money for the same, without business
investors they cannot be able to do so. It impacts on their current capitals expansion procedure in
which management make some changes in order to run system effectively and make the best or
unique plans that are able to attract the investors towards them.
In context of organizational strategy, drivers of change effect the firm as well as their
current plans for example without investors company cannot be capable to expand business,
without skilled people they cannot be able to accomplish task appropriately all these components
affect organization in which management must create new strategies for the same in order to
betterment.
2. Overview of company case studies
Case study-1
Travelodge Hotels Limited is the private firm operating in hospitality and hotels industry
in UK. Company is placed as the second biggest position in United Kingdom budget hotel area
measured by number of bedrooms and number of hotels (Alvesson and Sveningsson, 2015).
They operate their business in many countries which effects due to some factors. There are many
drivers of change that make effects on firm and its range of operations. For example, in 2011
organization cannot be able to cover debt repayments and they recorded the debt of £517 which
impact on their market position and reputation in hospitality sector. Financial restructuring is
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the main driver of change that pressure upon company to make some changes and take better
decision to cover debt. Thus, to overcome with the effect of this driver, Travelodge management
take decision to undertook the financial restructuring in 2012 with ownership. They make
ownership with Avenue capital group and New York based hedge funds Golden Tree Asset
management as well as Goldman Sachs in order to repay money and run their business
effectively. They confirmed that financial restructuring will be done through the company
voluntary arrangement that include: at least £75 Million of new profit being invest into firm.
Company need to invest £55 million into major renovation programme across the estate,
covering over 175 hotels and 11,000 rooms which helps to attract consumers more towards them
and contribute to increase profit. With the help of this arrangement they can be able to reduce
bank debt and repaid money.
Case study-2
Hennes & Mauritz is the Swedish multinational UK clothing retail firm known for their
accelerated fashion clothing for teenagers, men, children and women. With associated firms they
operate over 4500 stores in 62 nations and employed in 2015 around 132,000 peoples.
Consumers is one of the external driver of change that effect firm operations and current
business strategies (Storey, 2016). For example, Lowri Byrne make complain against H&M in
context of their products size. She shared her battle of being unable to fit into the size 16 Hennes
& Maurtiz dress, despite being in the size 12. The negative comments of consumers put pressure
on organization to consider the size of their product and required to focuses on changes in online
products size charts for the same (H&M is FINALLY making its sizes bigger, 2018). In that case
H&M change size chart structure and place the new sizing in their online stores in order to
satisfy clients and provide the most suitable and appropriate goods as according to their
expectations.
3. SWOT/PEST analysis for each case study to determine drivers of change
PEST Analysis tool is required to analyse the factors that effect business and their
operations management. It is the strategic business tool kit used by companies to evaluate, track,
to discover and organize macro economic elements that impact on firm now and might be in the
future.
Political factor- Political factors refers to the activities connected by government
policies and their administration activity that influence H&M business. Due to some restriction
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on exports and imports of products, company face many issues that also effect their production
services. It is the main driver of change which impact import and export procedure and plans of
firm and make pressure on them in context of change. Export restriction is imposed to prevent
the shortage of products in domestic market because it is much profitable or beneficial to export.
Thus, it effects on company business and they deal with many changes, management try to work
according to government restriction and export and import products legally within good quality
of products (Rothwell, Stavros and Sullivan, 2015). On the other side changes in foreign trade
policy it will affect the relationship of countries and this will lead to the performance of
Travelodge in particular nation.
Economic factor- Type of economic system, capital information, income rate of peoples
and Brexit is included in economic factors that effect businesses. Brexit is the driver of change
which put negative influence on H&M and pressure for change in whole organizational structure
and operational management. Dislike negative affects that Brexit has brought for currencies
across Europe. In 2017 H&M sales get increase more than 7% and grew up to 10% after
converted into Swedish currency.
On the other side lower income rate of peoples is the driver of change that impact
Travelodge and its financial performance. In short without good income peoples cannot be able
to book and prefer the best hotels which effect on company performance and profit margin the
most.
Social factor- Use of social media in context of gathering information and search the
best and suitable place for holiday now in trend. Most of the people like to search online because
it is save the time and provide relevant data. It effects on Travelodge business as they need to
place more advertisement about their services and product which helps to attract consumer the
most.
Changes in consumer needs is the driver of change which effect the H&M production
management activities and their performance (Benn, Edwards and Williams, 2014). Peoples
preferences get changed according to market trend that influence negatively on it manufacturer
procedure, thus to deal with this problem company must consider the people demand and
conduct market research to do so.
Technology factor- advancement in technologies is one of the another external driver
that impact on Travelodge as well as H&M company. Consumers like to purchase products now
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via online application and search the latest fashion clothes. It effects H&M current collection at
online stores and decrease their sales. On the other hand, online booking trend within
marketplace change the entire functions of Travelodge.
4. Impact of change and influence of change and its effects on organizations' operations and
strategy
Impact of change on H&M and upon their operations and strategy-
H&M operate their organization's operations in many countries which get affected by
some changes and restriction on import and export procedure. Due to these restriction
company is unable to serve its best service to customers. It directly impacts on profitability and
productivity of organization and bring many challenges for them to mange their activities relate
to the same (Westerman, Bonnet and McAfee, 2014). It also effects operational efficiencies of
H&M and its current import and export policies.
Preference change is the driver of change that effect company business and production
management. Most of the peoples change their preferences according to current market trend
which impact Hennes & Mauritz product manufacture system as whole. It influences on their
current marketing strategies and promotional plans. Any sudden change effect organization
marketing strategy and production operation the most and management need to deal with them
effectively for business growth and success.
Moreover, technology advancement is one of the major driver of change that put
negative impact on H&M business and pressure upon management to change their recent online
collections of clothes for women, men, children and others. Due to improvement in technologies
many peoples drive towards purchasing online products and expected the best collection on it
which helps to retain them for longer term period. Management of company affected the most
and restructure their marketing strategies in order to sustain for longer and increase profitability.
Impact of change on Travelodge and its business strategy and operations-
Impact of changes in foreign trade policy directly affect Travelodge and their operational
management efficiencies. Due to these change company has to deal with many issues related to
international trade (Matos Marques Simoes and Esposito, 2014). It effects marketing strategy of
firm and expansion procedure as well which is not suitable and appropriate for the success and
growth of business.
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Due to some change in technologies it impacts on organization customers base and other
activities within business. For example, peoples are using another social media tool in order to
collect more information about specific locations for the purpose of holiday and book packages
for the same via online. Thus, it effects Travelodge current online marketing strategy as they
follow traditional marketing tool which is not suitable for attracting the consumers.
5. Change affected individuals, leadership and team behaviour
Leadership is the activity of leading the team or group of peoples in the organization.
With the help of skilled and good leader H&M will be able to serve their best facilities in target
market. But due to some Changes in business environment leadership will affect the most and it
also influences worker performance (Alavi and Gill, 2017). For example, restriction on import
procedure company deal with many difficult situation, it stops down the process of exporting and
improving products. In which leadership effected the most as they lead and give direction
according to the situation which is difficult to do so. In that case leader must communicate to
high management and efforts to gather information about running the procedure which is
beneficial for them as to lead them and accomplish task on time.
Technology change, increase the efficiency of procedure or products that outcomes in the
increase in profit. Technology changes some time affect individuals performance and
demotivate them. For example, when H&M implement new technology in their business
structure in order to improve productivity, it effects the individual working abilities because they
cannot be able to perform according to current technologies as they have fewer skills. In short
change of new technology impact on worker performance and demotivate them. Due to lack of
skills and knowledge as compare to other peoples at workplace, person feel uncomfortable which
decrease their working interest and impact on its productivity. Lack of abilities is serious issue
for individual that negatively influence employee current as well as further performances. It also
decreases business performance and productivity of organization.
Team behaviour means getting to know each peoples personal background, personal
behaviour or traits and skills. It affected mostly after the change, for example if company
implement new technology in business structure there are many employees who are able to
perform effectively with the help of appropriate skills (Glass and Cook, 2016). But on the other
side there are also some worker who are unable to work with new technology because of lack of
skills. Leader and manager take decision to give specific tasks based on knowledge and skills of
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staff members, it creates negative environment around workplace. It effects team behaviour and
most of the person who does not have suitable skills feel jealous to other ones.
In short all above changes affected team behaviour, leadership and individual
performance as well as business and decrease their profit margin and productivity.
6. Minimized the impact of change and appropriate models to procedure change efficiently
Due to lack of working abilities and knowledge employees demotivate and feel jealous
by the other, in short it effects their performance and profit margin of company (Diaz-Rainey,
Robertson and Wilson, 2017). At this situation management must try to minimized the impact of
change and provide training to their all staff members in context of implement new technologies
in order to improve current skills and increase knowledge more than before. With the help of
training leader of company can be able to increase job satisfaction and also raise the morale
among all workers. Furthermore, training program increases workers motivation and enhance
their working interest.
To minimize the impact of restriction on import and export procedure, management must
try to make changes and adjust in their current strategies related to the same which helps to run
their business activities and functions and reduce its effect on workers' performance.
With the help of Kotter's 8 step change model it can be easy for organization to process
change efficiently and effectively.
It is an effective model accepted across all sectors for implementing organizational
change. There are the 8 steps of this model-
1. Increase urgency- to implement change in company leader required to hold meeting
with their staff members and discuss with them the current issues and impact of changes
in business in order to reduce it.
2. Build guiding team- after the meeting leader build strong team in which workers are
able to contribute in implement change and helps to provide guidance to other members
to do the same.
3. Develop vision- leader required to build or develop the vision for change and give
direction to their team member how to achieve it better than competitors (John Kotter's 8-
Step Change Model, 2017). Leader determines the values, define ultimate strategies and
vision for realizing change in company.
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4. Communicate for buy in- leader communicate with group of people about implement
change which they consider essential for business growth and success. It is not enough to
develop vision, discuss is more essential than it.
5. Remove obstacles- it is very important for leader to look what is likely to remove or
reduce their chances for success. Whether its traditions, physical obstacles, culture and
individuals.
6. Create short term wins- it is essential for leader or management to create short term
visions. They need to demonstrate benefits of new procedure by creating short term wins,
it is useful techniques for motivating employees. It also helps workers to adjust in new
change which is beneficial for them as well as for entire business.
7. Sustain acceleration- it is important to sustain change for longer term period which is
effective and useful for organization and helps to increase their productivity and
profitability. Employees always keep setting their goals and objectives and analyse what
would be done better for continued development and improvement.
8. Make change- after analysing change and their benefits, leader implement change and
make ready all the staff members to adopt the change and work according to it.
M1
Dissatisfaction of workers, employee capabilities and competitors are the drivers for
change that effect company as well as its business growth and success within market.
M2
Kotter's 8 step change model, help organization to evaluate response of change and
provide appropriate methods to implement change effectively.
TASK 2
1. Introduction to the case study organization.
Travelogue hotels is one of the best private operating hospitality industry and the hotel in
the uni8ted kingdom as the major second the widest position in the state of the united kingdom.
The hotel is also big in the term of the major area wise that is the rooms and the chain of the
hotels in that they are operating in the economy. There are the many changes that the company
has to undergo as they the factor to the change are many. The company has many effected by the
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economic and the social factor. So there are many change drivers which will lead to the change
in the company policy and the working environment(Méthot, Huang and Grover, 2015).. The
major change in the company was taken in the year 2012 in which the company has to undergo
with the financial reconstructing. Due to the heavy debt, the company has come to know that
there is the weak position in the market due to the lack of the financial structure. So in the 2012
the company decide to undergo the financial restructure in which the company has decided to
invest a good amount of the new profit as the investment for the company. The company also
undergo the change in the ownership as the company has taken the ownership from the avenue
capital group along with the golden tree asset management, a new York based company and the
Goldman Sachs as to revive the business by repaying the loan and run the business more
effectively and efficiently. The company confirm the financial reconstruction to be complete in
by giving the new profit investment of the £75 million and the amount of £55 million in the
renovation programme of the chains of the hotels consisting of the 175 number of hotels with the
room of the 11000. The renovation will somewhere attract the customer and the increase he
productivity of the company. When the productivity of the company will increase the company
will be able to repay the banking de3bt by repaying the loan. The another political change that
effect the company is the change in the foreign trade policy of the country which will some
affect the business of the hotel industry. The economic factor as the inflation in the country due
to Brexit will make the low level of the income people out to the reach of the good hotels as the
travelogue is there. Another change that the company has inde4ntified in the change of the social
factor, the technological change. The there is the change in the tend of the consumer as the
consumer are more moving top the online search so the company has to accept this change and
adopt the to the need of the consumer.
2. Application of force field analysis to determine opposition and support for change.
The force field analysis of the company is the major plan develop by the Kurt le-win
which the company performer the analysis to know what are the needs of the change had how the
company has to implement the change in the organization The company particular perform the
field force analysis in the way the to gain the comprehensive overview of the different force that
have the impact of the change performed by the company(Gu and Subramanian, 2014). T6he
major component in the force filed analysis is that the company has to understand what are the
forces of the change and what are force against the change.
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As the travelogue wants to give the change in the organization to meet up the demand of the
goals and the objective of the organization to achieve the growth in the longer process. The
major change that the company want to let come in the organization in the economic change and
the technological change. The major of the economic change that the company in the company is
due to the BrexitFien and Winfree, 2014). The policy lead to the inflation in the economic due to
the weakness of the pounds. So the forces of the change to the economic change in the raise the
volume of the productivity and the due to inflation the customer got rids off. There are the forces
of the change due to which the company want to increase the reach of the hotel and the forces
against the change is the change in increasing the cost of the maintenance of the hotel. The
premium customer of the hotels will get the rid as they want to be the premium customer to the
hotels.
The next change that the company is needed to gave is the technological change(Oliver and
Morecroft, 2014).. As the customers are nowadays more in the surfing and the better offerers to
reach the productivity of the organization. The forces of the change in the travelogue in the
technological advancement and the addition of the youth customer. The force against the changes
are the stagnation of the employees towards the change and the cost needed for the development
of the technology.
3 different barriers to change and there influence in decision-making and leadership
As the company travel wants to have the change of the economic development of the
hotel as the brexit has lost top the productivity of the organization as the fluctuation in the
economy of the country has been move towards the inflation the company has to bear the heavy
losses in the increase of the interest rates on the loads taken by the company for the financial
reconstruction the company has to increase its productivity of the organisation more and more
effect of the implementation of the change can be there(Moncrief, Marshall and Rudd, 2015).
The company will be frequent to the decision-making at the times of the panic situation and the
leadership in the company will be autocratic as the company will find out the major productive
decision from the employees in the organization. In the implication of the technological change
in the organization the company will be very attentive in the decision-making process in what
type of the technology will come to the company and what are the training and the development
has to be given to the employee of the organization so that they can adopt the change and
increase in the productivity of the organization. The leadership in this type of the technological
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