HNBS 317 - Understanding and Leading Change: Impact Report

This report provides a detailed analysis of understanding and leading change within organizations, focusing on Marks and Spencer (M&S) as a case study. It defines different organizations and illustrates how changes significantly impact their strategies and operations, with a comparison to Burberry. The report identifies internal factors (leadership, communication) and external factors (political, economic, social, technological) that influence organizational performance, using SWOT and PEST analyses. Measures to reduce the negative impact of change, such as enhanced communication and employee participation, are discussed, along with the application of the PDCA model. The document also explores barriers to change and their influence on leadership decision-making, and it applies various leadership approaches to effectively manage change within an organization. The report concludes by emphasizing the importance of adapting to changes for sustained success in a competitive market.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Define different organisations examples that how the changes have great impact on their
strategies and operations. .......................................................................................................1
TASK 2 ...........................................................................................................................................3
P2 Determine the internal and external factors for change which can impact on the company's
performance............................................................................................................................3
P3 Define measures that will help to reduce the negative impact of change.........................5
TASK 3............................................................................................................................................6
P4 Explain different barriers for change and determine how they influence leadership
decision-making.....................................................................................................................6
TASK 4............................................................................................................................................8
P5 Apply different leadership approaches to dealing with change ......................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Change management is an effective tool, process and technique of managing the people
within the organisation so that the desired outcomes can be achieved. It is essential for every
organisation to implement change according to the current market segments so that the business
can achieve more success and growth in the competitive world. This chosen organisation in this
report is M&S which is a British multinational retailer offering high quality clothes, home and
food products. This study will cover about the effect of changes on the leadership and the
operation of the organisation. The impact of different barriers on the leadership decision making
and which leadership approaches help to deal with the changes will be cover in this file.
P1 Define different organisations examples that how the changes have great impact on their
strategies and operations.
Organisation strategies refers to that plans which is formed by an organisation to achieve
its long term organisational goals. As M&S is going to implement some change in the
organisation so that this will great impact on their business strategies and operations(Foltin and
Keller, 2012). In order to implement the changes successfully it is essential for M&S to make
effective strategies or plans. This will help them to capture a huge market share, gain higher
competitive advantage and attain success in the marketplace. For understanding the impact of
changes on organisational strategies and operations here are given examples of two
organisations which are M&S and Burberry.
Basis M&S Burberry
Political changes The company's operations and
strategies have greatly effected
by the Brexit as after this all
the rules, regulation and
policies of the government
have been changed which have
great impact on the retail
sector due to which the M&S
overall performance and
profitability has been dawn
Brexit have also affected the
overall performance of the
Burberry. For preventing
themselves form the effect of
Brexit, they are adopting
effective strategies so that the
overall performance can be
enhanced.
Strategies: as they are dealing
in the luxury products due to

day be day and company have
to face the the financial crisis.
Strategies: As before Brexit
company was following the
skimming pricing strategy in
which they are offering their
products at higher price but
after this company have to
follow the economy pricing
strategy for sustaining the
position of the company in the
market place(Lopez and Wise,
2015).
Operations: For reducing the
wastage of inventory they are
adopting the just in time
method so that they will be
able to maintain the proper
management of inventory
according to their needs.
which they were charging
higher price for their products
but after Brexit they have to
adopt lower pricing strategy so
that they will be able to attract
a range of customers and can
increase their overall
profitability.
Operations: For sustaining
their position in the changing
environment they are using the
latest technologies in their
production activities so that
they will be able to offer
higher quality products at
lower price which results
higher customer attention and
profitability of the business.
Environment changes The environmental changes
incur because of natural
disasters, resource depletion
etc. In order to save
themselves from this crisis
M&S should concern about
their strategies and operations.
Strategies: Due to the
environmental changes
company have to give their
focus on reducing the use of
The environmental factors also
have huge impact on the
strategies and operations of
Burberry which can
understand by following
statements:
Strategies: They are adopting
the lean principles in their
organisation as it will create
the better flow of working
processes and also help the to

plastic bags and promoting the
cash less payment(Hughes,
2016).
Operations: For maintaining
their brand value M&S is
using Six sigma in their
operations so that they can
determine the effective process
and also can identify the
ineffective process which can
lead the negative impact on the
environment.
develop an effective
improvement culture which
results higher customers
satisfaction and profitability.
Operations: While operating
their activities they are always
highly contributing in the
social welfare so that they can
attract more customers towards
the company.
TASK 2
P2 Determine the internal and external factors for change which can impact on the company's
performance
The internal and external factors have huge impact on the every activity of the
organisation. Internal factors consist all those factors which are available within the organisation
like resources, communication, leadership etc. whereas the external factors are those which
occurs because of the outside environment of the business organisation(LCoghlan and Shani,
2015). It is essential for the M&S to evaluate all the factors so that all the procedures and
strategies can be formulated according to this. The effect of these factors on the business is
defined below:
Internal drivers: In this category those factors are included which are present within the
organisation. These have great impact on the business activities and decision making but these
are under control in the company. Some of the internal factors are described below:
leadership: If an organisation wants to implement changes within the organisation then it
is must for the leaders of the M&S to do more efforts in order to motivate their employees so that
they will be ready to adopt new changes in their working procedures. For attaining more interest
of the employees leaders must focus on the providing training and development programs so that
the skills of the employees can be increase in order to accept new changes.

Communication: It is the another internal factor which plays an important role in the
business. For implementing the changes successfully manager of M&S needs to focus on the
developing better communication channels so that they will be able to easily communicate with
their employees and can solve their issues and conflicts(Byers, 2017).
For determining the effect of these factors on the business performance it is essential for
the M&S to adopt SWOT analysis. This will help them to reduce their weaknesses and threats
and take benefit of their opportunities.
Strengths Weaknesses
The main strength of M&S, it is a highly
reputed brand as it is offering a range of high
quality products to its customers.
Change drivers: M&S needs to more focus on
market research and customer segments and
producing their products accordingly.
The major weakness of this brand that most of
the people see it as a non-trendy store.
Change drivers: To cope up from this situation
M&S should adopt new techniques and
processes so that they will be able to produce
according to current market trend.
Opportunities Threats
As the main focus of the M&S is to produce
ethic and traditional wear so is great
opportunity for them to operate their business
in Asia market as the people of the Asia give
preference to the ethnic wear.
Change drivers: For capturing a big market
place M&S should focus on the producing
western wear as well.
M&S have to face the tough competition in the
marketplace due to which they might loss their
brand recognition and profitability.
Changes drivers: For beating the competition
M&s should focus on the offering high quality
products at lower price.
External drivers: In this category those factors are included which are not under control
in the organisation like technological, economical etc. For implementing the changes successful
it is essential to have great control on these factors as they have greatly impact on the overall
performance of the company(Mukherjee and et. al., 2012). For analysing the impact of these
factors M&S can adopt PEST analysis:

Political factors: These are those factors which are directly related to the government
laws and policies like labour law, trade policy, tax policy etc. These factors have great impact on
the operations of the business. For example, if the government reduce the tax rate then the
business of the M&S will be increase in other countries which results higher profitability.
Economical factors: In this category the interest rate, inflation rate and many other
factors are included. For example if the inflation rate will rise then the purchasing power of the
customer will be increase in this case M&S should focus on the changing their business
operations so that they will be able to attract more customers(White and Robinson, 2014).
Social factors: These factors are focussing on changing behaviour of the customers. If
M&S wants to attain higher success then they must focus on producing products according to the
customers demand and needs.
Technological factors: This element represent the change in technology and tells that an
organisation must adopt latest technology in their working procedures so that the customer
demands can be fulfil easily.
P3 Define measures that will help to reduce the negative impact of change
For achieving the higher succession in the business it is require to adopt changes in the
working procedures. One of the major issue which have to face by the M&S is attrition of the
employees due to adopting changes. It is essential for them to do more efforts to retain its
employees. There are given beneath some points which helps them to retain their employees:
 Enlargement of communication channels: By adopting effective communication
channels manager of M&S can easily cope up from those problems which are occurring
while implementing changes. As all the employees will be able to share their issues and
conflicts with the management related to the new changes in their operations.
 Increase the participation of employees in decision-making: This have direct impact
on the employees mind as they will feel that they are an important asset of the
organisation. This will enables the to do their more efforts towards accomplishing the
goals and objectives of the firm(Diaz-Rainey, Robertson and Wilson, 2017).
In the case if M&S want to decrease the negative impact of the changes then they should adopt
PDCA model as it will help them to execute new changes smoothly without any crisis.
 Plan: This is the first element of this model in which the manger will make a plan
regarding to implement new change. For making an effective plan they need to do proper

market research as it will help them to identify about that which changes they needs to
apply in their strategies and plans so that they can get higher success and growth in the
competitive market.
 Do: It is the second stage in which they will their planned strategies and plans. At this
stage, they need higher support of their employees and higher efforts in order to attain
their desired outcomes(Tang, Lu and Hallinger, 2014).
 Check: After implementing all the necessary changes manager of M&S will check the
success and failure of their strategies and plans that how much they are effective in order
to raise the profitability and productivity of the organisation. In this, they can also
compare their estimated figures from their actual results so that they can reduce the
differences of them.
 Act: In this stage the M&S will track the overall performance of the company that their
strategies are working in the right direction or not and the strategies related to implement
changes should be adopted further in the business or not.
Hence, this model is very beneficial for the M&S as it will help them to evaluate the success of
the organisation at each and every level.
TASK 3
P4 Explain different barriers for change and determine how they influence leadership decision-
making.
As per the above discussion it can be stated that adoption of changes is necessary in order
make the sustainable position in the marketplace. But while implementing the changes various

barriers try to hinder the success of the business. The various barriers and the impact of them on
the decision-making of M&S are define beneath:
Ineffective leadership: This is one of the biggest issue which might occur in
implementing changes. As it is the main responsibility of the leader to guide their employees that
what, when and how they should operate their activities so that the organisational goals and
objectives can be achieved(Holmes, Clement and Albright, 2013). On the other hand, ineffective
leadership have negative impact on the leader himself also as he will not be able to decide what
he should do and how he can motivate their employees to improve the overall performance of the
business.
Imperfect communication: An effective communication is a crucial part while
implementing changes. In the case if the leaders of M&S will not properly communicate with
their subordinates then they will not be able to snatch their attention in the new processes or
procedures. Leaders needs to take effective decisions related to establish proper communication
channels so that they can easily solve out all the problem of their employees.
As in the present competitive world, it is necessary for M&S to give more focus on
launching new products and services in order to catching the more interest of the consumers in
company. Before introducing a new product in the market they need to do proper research as it
will tell them about current market trends. But launching a new product is not an easy task firstly
they should evaluate those factors which are against and favour of the changes. For this, they can
use the Force Field model which is mentioned below:
Forces against changes:
 Increasing cost: If company will introduce a new product in the market then they have to
do more research, need more resources and give higher level of training to their
employees due to which their overall cost will be increase(Hintz and Bahia, 2013).
 Increase the labour turnover: In launching the new product M&S will need more
manpower and time due to which it might be possible that their employees will not take
interest which can lead the negative impact on the overall performance of the company.
Forces favours changes:
Customers wants new products: As M&S is offering high quality products due to
which their customers always seeks to take advantage of their new products and services which
will increase the overall sale and profitability of the company.

Increase in product category: By developing new product M&S can enhance category
of their products which will direct impact on their brand value as the customers will attract by
seeing different variety of their product(Edwards-Groves and et. al., 2019).
Governmental support: As M&S is always highly contributing in the CSR activities and
always produce those products which are favourable to the economy. This will enables them to
get governmental support in introducing new products. For example, government will provide
them the lower tax facility in exporting the resources for developing the new products.
Thus, it can be reflected that developing a new product will be very beneficial for the
M&S as it will able them to get more success and growth in the marketplace.
TASK 4
P5 Apply different leadership approaches to dealing with change
In order to successfully implementing the changes it is essential for the leaders to adopt
an effective leadership approach. As leaders have great power to influence the behaviours of
team members, employees and others in order to achieve the certain goals and objectives of the
organisation. An effective leadership style plays a central role in implementing the changes as it
inspire the people to come together for accomplishing a common goal. There are defined various
leadership approaches from which M&S can apply any of the leadership approach in their
business:
Situational leadership approach: It is the most appropriate leadership style as it can
change according to the situation which provides benefit the leaders as they can change in their
leadership style according to their requirement. This approach is very beneficial for the leaders
of M&S as it promotes the flexibility in their work which helps the them to get best results or
outcomes from their team and individuals. Other, by adopting this leadership style leader will not
able to focus on their long term goals as they are always aware about the current
circumstances(Mukherjee and et. al., 2012).
Transactional leadership approach: In this approach leaders focus on the rewards and
punishment policies in order to achieve the desired job performance from the employees. As
M&S is going to develop a new product so that this style will help them to establish appropriate
supervision, control and monitor which results higher success and growth of the business. It has

some negative impact on the employees mind as because it can promotes the discrimination
within the organisation.
As per the above discussed leadership approaches it can be stated that for the M&S
Situational leadership style is best among all the leadership approaches as it will motivate the
subordinates or employees do their efforts in achieving the organisational goals and objectives.
Lewin's change model:
This model is very helpful for the M&S as it will provide them great understanding about
the changing process. It consist three elements within which helps them to determine that the
changes should be implemented or not(White and Robinson, 2014).
Unfreezing: This is first component of this model in which the employees refuse to
accept the changes in their working processes. At this stage, the manager of M&S have to give
their focus on proper communication channels so that they can tells their employees that these
changes help them to improve individual performance as well as company's performance(Diaz-
Rainey, Robertson and Wilson, 2017).
Changing: The employees will ready to adopt changes at this stage so it is essential for
M&S to give their major focus on providing training and development programs to the
employees so that the skills and morale of them can be increase in order to achieve goals.

Refreezing: In this final stage, in which M&S will give their focus on establishing proper
control and monitor on the employees activities so that the change process can be sustain for a
longer duration of time (Nelson‐Brantley and Ford, 2017)..
Hence, it can pertains that this process will help the M&S to implement changes in an
effective and appropriate manner.