Leading Change: Impact on Business Strategy and Operations

This report provides a comprehensive analysis of organizational change and leadership, examining the impact of internal and external drivers on business strategy and operations. It uses case studies of Cornish Bakehouse and Biegel Bakery to illustrate these concepts, exploring globalization, competition, social factors, political and legal factors, and technological advancements as key external drivers. Internal drivers like innovation and culture are also discussed. The report evaluates how these factors affect individual, leader, and team behavior, as well as the measures that can be taken to mitigate the adverse effects of change. It further identifies barriers to change and their influence on leadership decision-making, before concluding with an application of different leadership approaches to deal with change, providing a holistic view of effective change management.

Understanding and Leading
Change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P 1 Comparing examples of different organisation where there is effect of change on business
strategy and operations ...............................................................................................................3
P2 Evaluating the way internal and external drivers of change effect individual , leaders and
team behaviour in the company .................................................................................................6
P3 Evaluating the measures which can be taken to reduce the adverse effect of change on
organisational behaviour. ...........................................................................................................8
TASK 2..........................................................................................................................................10
P4 Explaining the different barriers for change and determining how they influence leadership
decision making process ..........................................................................................................10
TASK 3..........................................................................................................................................12
P5. Applying different leadership approaches to deal with change..........................................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Organisational changes can be defined as a procedure of bringing improvement in
business operations, strategies, structure and culture. Bringing of improvement as well as
changes at workplace is very much important in order to gain competitive advantage. It is also
very much crucial for providing an appropriate response to changes in external business
environment. Continuous as well as positive change at workplace helps in increasing the morale
of employees (Boyatzis and Cavanagh, 2018). Changes within an enterprise is also crucial for
providing response to market need. Innovation in business procedure can help an organisation in
reducing cost as well as increasing working efficiency. Changes at workplace can have both
positive and negative effect on the behaviour and performance of employees. In addition to this,
changes in external business environment have great influence on business operations and
strategies. There are many barriers such as employee’s resistance, lack of resources can create
big barriers in implementation of change. Managing change within an enterprise is very much
crucial as this factor have great effect on business performance. It is very much important for
leaders in an organisation to make plan for change considering internal as well as external
factors.
The purpose of the report is to identify the drivers of change in context of Cornish
Bakehouse . Business entity is famous for hand crafting some of CORNWALL’S best pastries
filled with quality ingredients. Study also have emphasized on analysing the way internal as well
as external drivers of change have impact on the leadership, team and individual behaviour.
TASK 1
P 1 Comparing examples of different organisation where there is effect of change on business
strategy and operations
Cornish Bakehouse is a small medium enterprise in United Kingdom. This organisation
is famous for providing tasty pastries to its customers. Business entity has twenty-three shops
worldwide. Firm also offers other bakery products.
Another example is Biegel bakery in UK. which is popular for baking in the traditional
Jewish style. Business entity also offers pastries and sweets to customers. Biegel bakery is
amongst the restaurants having three-star rating. Globalisation has forces both these companies
to bring improvement in their business procedures, system, strategies and policies. There are

basically two main drivers of changes these are internal and external. Changes in external
factors in business entity can have great as well as significant effect on firm ability to make
investment on various activities for accomplishing desired strategic objectives. Changes might
occur in different form, it is the quality of an effective leader to identify as well as formulate
suitable strategies for bringing transformation in business operations in order to foster growth.
Some of external drivers of changes are:
Globalisation : It has led to the emergence of new market. Globalisation has provided both
companies an opportunity to expand their business operations. It has enabled business entities to
enter into new market and sell their products to wide number of customers. Globalisation has
provided both enterprise a chance to increase their market share and profitability. In context of
Cornish Bakehouse , business entity has planned to enter into new market by adopting low cost
pricing strategy, as this strategy has assisted them in achieving leadership position. On the other
hand, Biegel bakery has planned to enter into new market with innovative product which has
helped firm in gaining competitive advantage.
Competition: It is considered to be the biggest driver of change. This factor has great
effect on business plans as well as strategies. In context of Cornish Bakehouse an organisation
has planned to add more varieties of pastries in its menu, this strategy has helped an enterprise in
attracting more number of customers and supported firm in gaining competitive advantage.
Whereas, Biegel bakery has planned to stick to traditional technique for preparing pastries,
which has assisted an enterprise in differentiating its food items from that of competitors (Allen,
2018) .
Changes in social factors: It involves changes in demands, trends taste and preferences
of customers. Changes in social factors have direct as well as significant influence on operational
decisions taken by managers in organisations. In context of Cornish Bakehouse , an organisation
has planned to conduct market research for identifying the needs and demands of customers.
Manager in Cornish Bakehouse , has decided to produced flavour of pastries according to the
needs and taste of customers. On the other hand, management in Biegel bakery has planned to
develop unique flavours of pastries using traditional cooking method in order to provide an
appropriate response to changes in social factors.
Political and Legal factors: These constituents involves government legislations, tariffs
etc. which force firm to bring changes in business strategies and operations. Changes in the

regulations related to industry has forced firm to bring improvement in the business operations.
As Cornish Bakehouse twenty-three shops worldwide, changes in legal factors have direct as
well as significant influence on business operations of an organisation. Business entity has
planned to conduct country and market audit before entering into new market, this has aided an
enterprise in preventing legal obligations. On the other hand, Biegel bakery has planned to
follow all the norms prevailing in the country.
Technological advancement: This factor has direct as well as significant effect on
business operation's as well as structure. In context of Cornish Bakehouse , communication
technology can be utilised by company for sharing of information between internal as well as
external stakeholders. Implementation of advance technology for interaction will aid business
entity in minimising the cost of communication. By utilising the advance communication
technology, Cornish Bakehouse company will be able to interact with customers and can easily
influence them to buy products or services (Doppelt, 2017). On the other hand, it is very much
important for Biegel bakery to employ advance technology for preparing the pastries or other
bakery products. As business entity might have to face several operational issues due to outdated
or traditional technology.
Some Internal drivers of changes are:
Innovation: Decline on production capacity, issues in record keeping, decline ion
working efficiency etc. Are some issues which might force organisation to bring improvement in
business procedure or system. In context of Biegel bakery, company is facing issues in
maintaining the balance between demand and supply of products due to operational issues.
Business entity has therefore has planned to employ advance technology at workplace. On the
other hand, Cornish Bakehouse is facing the issue of decline in sales, which has forced business
entity to bring improvement in marketing activities. Now firm has planned to utilise social media
for promoting goods and services, which has assisted an enterprise in increasing sales (Mackey,
Jansen and Fletcher, 2018).
Culture: Increase in conflicts among workers or between management and employees,
high staff turnover rate etc. these are few variables which might force company to bring
improvement in culture at workplace. Changes in culture can have direct as well as significant
impact on the behaviour and performance of workers. In context of Cornish Bakehouse ,
management in an enterprise does not believe in a one-off change, rather it concentrates on

continuous changes. This strategy has assisted an organisation in delivering good quality of
products at low cost to customers. On the other hand, management in Biegel bakery have focus
on bringing one time change in culture, which has helped business entity in providing high level
of satisfaction to workers.
In context of, Biegel bakery an organisation has employed advance technology at
workplace in order to provide an appropriate response to technological advancement. This
technical strategy has assisted business entity in increasing productivity and aided firm in
reducing the cost of production. It has helped an organisation in maintaining balance between
demand and supply. Advance technology has supported Biegel bakery in bringing improvement
in quality of products or services (Reeves, 2018) . It has allowed business entity to increase
working efficiency and help an organisation in providing high level of satisfaction to customers.
Implementation of advanced technology has supported firm in improving customer service.
In Context of Cornish Bakehouse , Changes in social factors such as taste and preference
of customers has led to the decline in demand of products or services. This factor has led to the
decrease in sales and profitability of firm. Operational management in an enterprise has planned
to concentrate on quality of ingredient as well as adding more varieties of pastries in its menu.
Addition of more varieties of pastries in menu has supported business entity in increasing sales.
Similarities between the two organisations
Similarities between two organisation is that both Biegel bakery and Cornish Bakehouse
has implemented the advance technology at workplace in order to provide an appropriate
response to advancement in technology. It has enabled both business entities in bringing
improvement in their business procedures.
P2 Evaluating the way internal and external drivers of change effect individual, leaders and team
behaviour in the company
Leaders can be recognised as a person who commands or lead group of people in an
organisation. It is the quality of an effective leader that they have high influencing power which
enables them to encourage people to participate in specific procedure or business activity. In
addition to this, an effective leader has quality that they utilise different leadership styles for
inspiring people to increase their contribution in supporting an enterprise in achieving desired
business objectives. There are some external variables such as advancement in technology,
customers satisfaction, competition can have influence on individual, leaders and team behaviour

within Cornish Bakehouse (Burke, 2017). Changes in external as well as internal factors have
both positive and negative effect on the individual, leaders and team behaviour in an enterprise.
For instance, due to the employment of technology at workplace, some employees might feel
threat of losing their job. In addition to this, workers might have concern about the such
technological changes on their performance, result of which is that few employees in Cornish
Bakehouse might refuse to accept changes. In such situation, it is the duty of leader in as
company to formulate proper plan for bringing change within an organisation. Role of leader is
to communicate complete information about the changes at workplace to workers, as this
strategy will assist management in eliminating the barriers which might arise in bringing
successful improvement at workplace. In addition to this, some of internal factors such as decline
in employee morale, poor performance of workers, rise in conflicts etc. can force or encourage
leaders to bring change in a company (Scott, 2019.). Another example of external factors
effecting leaders behaviour in context of Cornish Bakehouse includes customer satisfaction. As
company is facing the issues of high level of customer dissatisfaction related to services, leader
in an organisation need to take decision related to providing training to employees. This strategy
implemented by leaders will support business entity in providing professional services to clients.
If employees resist change continuously then in such case this factor have negative effect
on the behaviour as well as decision of leaders. In case of high resistance from workers related to
change, leaders in an organisation need to implement regulations or new policies for encouraging
people to support improvement procedure. It is very much important for leaders in an enterprise
to consider following factors motivation, impact of change on workers or business performance
etc. while planning to bring any type of transformation in organisation. Function of leader is to
ensure all the employees are informed about need as well as importance of change. As this
strategy will help workers in identifying their roles as well as responsibility. Changes in internal
and external factors might have influence on leadership behaviour, as they are sometimes
required to select leadership style for ensuring that changes in an enterprise are applied according
to the plan (Hayes, 2018).
Lewins change model : According to this hypothesis employees in an organisation
prefer to work in safe zone. As per this model there are three stages of changes these are:

Unfreeze: According to Lewins change model few workers in Cornish Bakehouse
might take high initiatives for resisting to change. In such situation, it is required by leaders to
motivate such employees.
Transition: At this phase of change procedure, effective leadership as well as
reassurance is necessary in order to bring successful change at workplace.
Refreeze: At this stage, change is accepted by all the people and an organisation become
stable.
P3 Evaluating the measures which can be taken to reduce the adverse effect of change on
organisational behaviour.
Changes in internal or external factors can have both positive and negative influence on
organisational behaviour. It is very much important for management in Cornish Bakehouse to
take quick action for minimising the adverse effect of such changes on organisational behaviour.
There are few measures which can be taken for reducing the adverse effect of changes on
organisational behaviour these are :
Management planning : An effective planning is very much crucial in order to
implement successful change at workplace. It is very much important for leader in Cornish
Bakehouse to develop improvement plan considering the effect of changes on workers, need of
transformation etc. Internal assessment can be executed by manager in an organisation, as this
will help them in identifying the area where improvement is required to be made.
Good communication between leaders and workers: An effective communication as
well as smooth flow of information is very much necessary for implementing successful change
at workplace. It is essential for leaders to inform workers about change and to have discussion
about such procedure. As this strategy will help leaders in identifying those stakeholders who
can resist to change. It will also support management in eliminating the barriers which might
arise in bringing improvement in the company (Lam, 2017). Discussion with employees will also
help leaders in identifying the new ways through which changes can be made.
Engaging employees in change and change procedure : Leaders in Cornish Bakehouse
should allow employees to participate in decision making procedure, as this will provide
management an ease in managing the procedure. If the workers will be informed at earlier about
the change procedure, then there are high chances that workers will accept that and they will
behave in positive manner.

Reviewing the procedure: This is very much important in order to implement change according
to plan.
Developing the reward system: It is considered to be as an effective strategy for encouraging
employees to participate in change management procedure. Leaders in Cornish Bakehouse can
develop reward or incentive system for inspiring employees to make significant and positive
improvement in bringing drastic improvement in business.
Effective delegation: This is very much important for leaders in Cornish Bakehouse to delegate
roles and responsibility according to the skills as well as competencies of an individual. As this
delegation strategy will support leader in ensuring that all the activities during the change
procedure.
Training: It is required by leaders or managers in Cornish Bakehouse to provide training to
employees before implementing change at workplace.
Kotters change theory: According to this hypothesis, there are eight steps involved in change
procedure these are :
Creating an urgency: This is an initial phase where leader in Cornish Bakehouse need
to create an urgency for change. It is the activity which is conducted in order to motivate workers
to support change procedure. Leaders should inspire people to support change by being honest
and transparent. In addition to this, leader should use convincing dialogue for motivating
workers to make their significant contribution in change procedure.
Powerful coalition: At this stage of procedure, it is required by leaders to convince
employees informing them about need as well as importance of change. Leaders can use
stakeholder mapping for identifying the skilled and talented workers those who can support
management in implementing successful change. Leader after identifying the key stakeholders
can make a team of talented and competent workers.
Creating a vision for change: It is very much essential for leader in Cornish Bakehouse
to set clear vision, as this will assist workers in identifying their duties and responsibilities.
Communicating vision: Special meeting can be organised for informing employees and
other stakeholders about the objective of procedure as well as regarding the different activities
which will executed for accomplishing desired targets. During the time of meeting. It is requited
by leader in Cornish Bakehouse to address the issues faced by workers (Fernando, 2018).

Elimination of hurdles: It is important for leader in an organisation to design proper
structure for change. Leaders can develop a strategy for identifying those people who are
resisting to change and they need to take quick action for eliminating the barriers.
Creating short term wins: Leaders can set short term target which are required to be
achieved by workers within a specific time period. Setting the shorty term target is considered to
be as an effective strategy for inspiring people to improve their performance during process.
Building on change: It is required by leaders in an enterprise to set the targets. Leaders
should conduct analysis as this will assist them in identifying the area where change or
improvement need to be implemented.
Anchoring the change in corporate Culture: Leader in Cornish Bakehouse need to
embedded change in organisational culture as this will help firm in gaining the long term
benefits.
TASK 2
P4 Explaining the different barriers for change and determining how they influence leadership
decision making process
Change management is very much required and necessary for the company development.
It brings new methods, leadership styles, decisions and new approaches to perform the particular
task. Besides, it affects the better long term market and effective management task (Montano,
and Kasprzyk, 2015). There are some barriers that get affects the leadership approaches some of
them are discussing below:
Lack of Employee involvement
it is the most common barrier to change management in which employees have fear of
changes due to this they are not comfortable to perform his/her task in a proper manner.
Company managers and leaders needs to fill those gaps by giving sufficient resources, training
and development practices. On the other side, this change also affect the decision making of
leaders as well. For that, company needs to enhance the motivation level of the employees that
affect the better effective outcomes and goals.
Lack of effective communication strategy
Change management also making some issues which restrict the effective communication
between employees. This process influences the decision making process of leadership. Due to

lack of communication managers and employees cannot freely talked with each other (Ward,
2016). Due to which negative environment has occurred in between the working environment.
Leaders or the company has to make effective communication strategy to introduce new
changes and communicate or pass the information into more systematic manner. Besides,
employees need to take initiatives to understand about the new change occurred in the business.
A bad culture shift planning
Sometimes, company have no idea what changes has actually happened after change and
how people react to it as well. In this state of situation, employees could not give their 100
percent to the work. This creates less effective and ineffective situation for the company.
Besides, planning holders of the company somehow fails to meet out the needs of the employees
during changes that directly affect their feelings and morale. Overall, situation get affect the
decision making of leadership. In order to meet out the needs and reduce the negative appearance
s that makes low impactful approach. The best way to get overcome from this barrier is that to
proper planning team to understand that the organisation must not overlook the feelings of the
employees. Cornish Bakehouse needs to make some productive strategies for their customers in
order to meet their requirements as well. Apart from that, it helps to make the efforts and make
the better goal services into best manner (Goetsch and Davis, 2014).
Poor changes management can lead different changes in the market. Such as financial
losses, productivity and performance drops. Decline in quality of work, inability to retain staff,
increases in employee sickness levels, poor staff morale, inefficiencies, negative impact on the
behaviour of suppliers and customers. Missed opportunities, poor staff morale and better growth
full achievement and make the best outcomes and growth. In order to meet out the best growing
and low effective outcomes. This is the another matter of fact that helps to describe the best
leading and challenging performance task.
Lack of effective leadership : This is considered to be the major barrier which might arise in
implementation of successful change at workplace. Implementation of change at workplace
require proper direction and monitoring, if these factors will lack then management in an
enterprise will not able to bring successful improvement at workplace. Lack of effective
leadership can have negative effect on employees' behaviour as well as performance within an
enterprise.

Lack of sufficient resources: Unavailability of different resources such as technology, capital ,
human can create big hurdles in implementation of successful change within the company.
Availability of few resources can give rise to the conflicts between workers which might create
big hurdles in execution of process. In addition to this, strict budget for change procedure can
create big barriers in implementation of change procedure.
Lack of clear vision or scope: it is considered to be as a major barrier in change process. As if
the vision or scope will not be clear then workers will face difficulty in identifying their roles
and responsibilities which will give rise to confusion as well as misunderstandings.
Undue Complexity : If change procedure will be lengthy as well as complex there are high
chances of barrier.
In addition to this, other barriers to change process might include lack of skills among
leaders as well as workers, absence of equipment required for the change, inadequate
organisational infrastructure and difficulties in establishing service. Resistance to organisational
culture shift can be considered to be as another big barrier which might occurred in transforming
the business procedure or system. Lack of management support for the change and Limited
understanding of the change are other two hurdles which can occurred in bringing the
improvement in business. All the barriers also have direct as well as negative effect on business
performance and also on customer services (Hill, 2017).
\ Force field analysis can be utilised by leader in Cornish Bakehouse for overviewing the
factors which are driving changes as well as constituent that are resisting to change. For
instance, Forces driving changes in Cornish Bakehouse are internal variables includes lack of
innovation, poor efficiency, decline in profit etc. External variables include change in customer
demand, amendments in Law etc. Some reason for resistance to change include low tolerance to
change, misunderstanding , self-interest etc.

TASK 3
P5. Applying different leadership approaches to deal with change
Illustration 1: Force Field analysis
(Sources: Force Field Analysis, 2018)

Notes –
There are various leadership approaches that may help in dealing with this change and it has
been described as per below context-is process also includes education, training and experience.
Thus, leadership in simple words is termed as a process through which one can influence the
other one so that they accomplish targeted objectives or goals. It also leads in directing particular
company in such way that helps in making it as the most coherent and cohesive.

Notes –
In this approach four styles of leadership are being used that includes delegating, supporting,
coaching and directing. Further, leader and manager of Cornish bakehouse have to select
appropriate style as per the situation. It includes easy concept which is understandable and
applied easily and smoothly by leaders of cited company. Further, this leadership style also leads
manager in order to select that way that may take them exactly towards success.

Notes –
This approach plays very effective role in terms of crisis and emergency situations. In addition to
this, it mainly focuses on results and measures success accordingly as per the system of rewards
and penalties. If the manager or leader of the cited company Cornish bakehouse adopts this
approach of leadership than it will help them in order to motivate employees that are involved in
order to perform particular task

Notes -
Transformational leadership- this approach is being defined as that style which basically cause
change system that is related to individual or social. It therefore creates both type of change in
terms of valuable and positive in followers with end goal so that they develop followers into
leaders. This approach helps the leaders of Cornish bakehouse in order to analyse change that is
actually needed and also creates vision that may help them in directing change through
inspiration. Later this change is therefore executed with the members that are committed to a
particular group. In addition to this, this approach is used in order to enhance motivation level,
employee’s morale and also their performance through variety of mechanisms. This model sets'
leader apart from any other style of leadership. It also helps in terms of development of followers
in positive way

Notes –
 Democratic leadership style : Leaders with this type of leadership style values the
contribution made by team members. They facilitate discussion with followers before
making any final decisions.
 Authoritative leadership approach : Leaders with this type of leadership style have
commanding attitude.
 Coaching : Leader with this type of leadership approach have focus on developing people
for the future.
 Democratic Leadership approach : Leaders with this type of leadership style have focus
on analysing the perception about other people regarding specific procedure. .

CONCLUSION
It has been concluded from the report that there are internal and external factors which
might force firm to bring changes in business strategies or procedures. Study has also concluded
that managing change in systematic manner is very much crucial as this can have negative effect
on business performance. It has also been concluded from the assignment that an effective
leadership is very much crucial for directing the change process. Project has also concluded that
lack of resources, ineffective communication etc. can create major hurdles in change procedure.
It has been concluded from the report that employees' resistance to change is the major barrier
which might occur in implementation of change at workplace. Study has also concluded that

proper management planning is very much crucial for reducing the negative effect of change on
organisational behaviour.
` There are few strategies has been suggested which can be executed in order to eliminate
various barriers which might arise in bringing improvement in business. Leader in an enterprise
is provided with advice to consider various factors such as culture, driving as well as resisting
forces while making plan for bringing change.

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