Uniqlo's Expansion into Online Retail: A Case Study

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Lead and manage organizational change

Table of Contents
1. Introduction & analysis of organizational objectives...............................................................2
2. Identifying strategic change needs...............................................................................................2
3. Review & map existing policies and practices to strategic change.............................................3
4. External and internal environment analysis for organizational change.......................................4
PESTLE Analysis............................................................................................................................4
5. Change Requirements..................................................................................................................5
Meeting Minutes – Change Requirement & Opportunities.............................................................7
Attending.........................................................................................................................................7
Announcements............................................................................................................................7
Discussion....................................................................................................................................7
Summary......................................................................................................................................7
6. Cost-benefit analysis for high priority change requirements.......................................................8
7. Risk analysis for organizational change......................................................................................8
8. Change management project plan................................................................................................9
9. Getting approvals on change management process...................................................................10
10. Resource assignment to project and reporting protocols.........................................................10
10. Resource assignment to project and reporting protocols.........................................................11
11. Communication and education plan for organizational change..............................................11
12. Activities to deliver communication plan................................................................................11
13. Identify and respond to barriers to change..............................................................................11
14. Action Interventions and strategies for embedding change.....................................................11
15. Evaluation and amendment of change management project plan...........................................13
Bibliography..................................................................................................................................15
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1. Introduction & analysis of organizational objectives
Uniqlo, the Japanese fashion brand is owned by Fast Retiling. The company mainly retails
fashion garments. In 1984, the company had been founded in Hiroshima, Japan. That time it had
only one store, and since then eventually, the company has grown extensively. Currently, the
company has over 1300 stores, which are located in 15 different countries across the globe. The
company has stores and offices in Asia, Europe, and the USA. In Australia, the company was
formed in 2012 as Uniqlo Australia Pty Ltd. The company's first store in Australia was opened in
2014 in Melbourne. In the subsequent year 2015, the company has expanded its operation in
Queensland. The company also launched 2 stores in Brisbane. The company has opened its store
in Chadstone Shopping Center, which is located in Melbourne, Victoria. It is considered as the
biggest shopping center in the Southern Hemisphere, since 2016, Oct. when the company was
revamped. Currently, the company has nearly 14 stores in Australia (Uniqlo, 2015). The
organization's mission is to provide high quality fashionable basic casual clothes for everybody
can wear and any point of time and anywhere. Besides this, the company's objective is to offer
the customers the lowest possible price. It indicates that the company aims to target the lowest
income groups for its fashion products. The company always tries to offers competitive price to
attract the target customers and it endeavors to provide high-quality fashion garments in
affordable prices to its customers. Hence, the company's strategic objective is to attract the
customers with high-quality fashion products at a reasonable price and it immensely supports the
company in expanding its market shares. Moreover, by implementing these processes, the
company can achieve extensive success in the market. The company with its objective can be
able to achieve phenomenal growth in the market and the company extensively grows in the
global market and its stores are continually expanding (Pondiuni, 2017).
2. Identifying strategic change needs
The organization is planning to create a separate division of online sales. This type of activity
can help the organization to expand its business.
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Online sales can be able to increase the profitability of the organization. The numbers of the
customer can be significantly increased by effective online marketing. Rather than existing
customers, potential customers can also be attracted by the online sales initiatives of Uniqlo.
Customers and employees are very important stakeholders of the organization. The customers
can be able to engage with the organization very effectively online. The investors of the
organization can be able to significant assistance from the organization. The owner can be able to
increase organizational profitability by expending the business.
To implement the new strategy, the organization has to implement change management. in the
change management process, the organizational employees have to adopt the new strategy. It is
very important to fit with the new strategy for the employees (Inc, 2018 ).
3. Review & map existing policies and practices to strategic change
Policy/Practice
Name
Existing policy brief or
Summary
Modificatio
n
required?
Y/N
If Yes, explain what
changes to be made in the
policy
Organizational
mission statement
and core values
The company's mission is to
provide high-quality fashion
products to customers at an
affordable price.
No
UNIQLO
Business Model
The company has a unified
business model that
integrates its clothe making
procedure from the
beginning mean planning
and designing to production,
distribution and retailing.
No
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UNIQLO
Business Strategy
- Southeast and
Oceania
The company business
strategy is to attract more
customers by the lowest
pricing strategy
No
Investor
Relations Policy
The investors are attracted
by the highly returning
policy of the company.
No
Quality and
Work Health and
Safety
Management
System
The company has focused
on high quality and work
health and safety
management system
No
Compliance and
Philosophy
The compliance and
philosophy of the
organization are to offer
quality products at an
affordable price.
No
Code of Conduct
Basic Principles
The company has complied
with a code of conduct.
No
Employee
Relations and
Diversity Policy
The company has
maintained a good
relationship with the
employee and efficient
diversity policy.
No
Environmental
Management and
Policies
The company has deployed
effective environmental
policies.
No
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Risk Factors The company has managed
the risks factors efficiently.
No
Corporate
Governance
The company has an
efficient corporate
governance policy.
No
Social Business
Initiatives & CSR
The company has
implemented an efficient
social business initiative and
CSR.
No
4. External and internal environment analysis for organizational change
PESTLE Analysis
Political factors:
 The political stability will affect the
UNIQLO for the development of
business.
 The law of the country crates various
types of barriers, such as contract law.
 If the country has no IP protection laws
then it will hamper the business.
 High level of the tax system will hamper
in maximizing profit.
Economic factors:
 The GDP growth rate will affect
UNIQLO.
 The interest rate will affect the invest and
borrowing power of the individuals.
 The huge rate of unemployment
indirectly will help in lower the cost of
UNIQLO.
Social factors:
 The demographics of the population will
help to target the potential customer.
 The class distribution of the people will
create the major importance of UNIQLO.
Technical/technological factors:
 Innovative changes will help in the
advancement of the UNIQLO.
 Option for research and development in
the country will affect the growth of the
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company in Australia.
Legal factors:
 Health and safety of the company is an
important factor.
 Legal laws should be there in order to
maintain the quality or price factor.
Environmental factors:
 The weather condition may impact the
ability of UNIQLO in case of
transportation of the finished product.
Opportunities identified Threats identified
[e.g new potential market]
 Coming with the new kid's segment
in the Australia market. Yet they
have segments of men and women's
wear. Moreover, Uniqlo could
capitalize on these segments.
 Uniqlo is has set up for a new online
store, this will also enhance the
selling and promoting via online
(Fernfortuniversity, 2016).
[e.g changes in legislation and online sales
taxes]
 The international trade regulation
always keeps on changing; therefore
compliance is essential for Uniqlo in
order to operate across the world.

5. Change Requirements
Major Operational Change Requirements
Name Operational Change Requirements Timeline
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Performance Gaps
a) The current situation of
Uniqlo is they wanted to
start an online business
whereby that will help the
economy of Australia to buy
the product online.
 Uniqlo is going online and so a
separate website is required.
 A separate warehouse is also
required.
Near about 1
week.
Business Opportunities and
Threats for the online division
a) More new customers
could be found
b) Different types of
customers to deal with
c)Threat from online sellers
 They have to know their tough
competitors.
 Updating of the products as per the
tastes and preferences of
customers.
Management Decisions
a) The management had
decided that a separate
online store has to be
launched
Management of Uniqlo has to take the
decision very precisely by knowing the
internal and external environment.
Prioritization of Change Requirements
Identified Change requirements
(as identified in the previous task)
Category
(Important and urgent;
Priority
Number
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Important but not urgent;
Not important but urgent;
Not important and not
urgent)
allocated
(start from
1)
Separate online Urgent 1
Separate websites Important 2
Proper execution of the work Urgent 3
Evaluating of the top rivalries Not important but urgent 5
As per customer’s preferences new and
innovative product required to be launched
Important 4
Email Consultation
Uniqlo
<Date>
Subject: Identification of the requirements that are required to be changed
To:
The Stakeholders
Director
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Specialists
Dear Director,
It is to notify you that out reputed organization Uniqlo is going to set up for a separate online
organization. For this, some of the basic prioritized change is required for running up of the
company in order to sustain for a long time in the market. Therefore it is very much essential
that your all presence is important for these required changes.
Kindly it is requested to you all people for helping us to carry out this project.
<Insert your name>
Change Manager/Agent
Approved by Director? Yes No
If no, Suggestions:
Meeting Minutes
Date:
Meeting Minutes – Change Requirement & Opportunities
Attending
Mark Brown
Stephen
Edward
Announcements
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In the meeting, it is discussed elaborately about the changes that are required for the
establishment of a separate online store.
Discussion
For setting up a new store online various types of issues may arise, like threats from online
sellers, then tough competitors and customer's switching from product to another. Therefore a
proper elaboration, as well as evaluation, could be done in regard to this. Proper analyzing of
the market is required for the establishment of a separate online store in the Australian
Market.
Summary
[Summarize decision making.]
The decision is that an online store is to be introduced for the long run and issues regarding
this will also be mitigated. Before the introduction of the store analyzing the market is
required.
6. Cost-benefit analysis for high priority change requirements
Item Individual or unit costs Total Costs
Costs of high priority change
requirements
Technological advancement -
$80,000
Salaries -$ 105,000
Rent - $12,000
Utilities - $ 45,000
Transportation - $60,000
Equipment - $10,000
Total Costs :
312000
Benefits from high priority
change requirements
Cost cutback from training
programs- $ 15, 000
Total Benefits (tangible
and intangible)
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(Tangible)
Benefits from high priority
change requirements
(Intangible)
Cost cutback in marketing
activities - $ 25,000
Further sales forecasted -
$250000
The high priority change has
led towards increasing the
customer's base of both urban
and rural place
The overall cost that the
organization has saved is
identified to be $ 40000
The high priority change
requirements have
directed towards
increasing the company's
market share and loyalty
among its customers.
Comparison of cost and
various benefits
The total cost that has been incurred could be analyzed as
$ 312000 but from the total cost, the business has saved a
significant amount of $ 40000. Therefore the company
has gained a competitive advantage through minimizing
its overall cost and gaining additional market share.
The overall outcome of the
analysis
(Positive or Negative)
Subsequent to the adoption of high priority change
requirements, the business overall results is said to be
positive in nature. This is due to the cost saving and
enhancing brand loyalty among the customers.
7. Risk analysis for organizational change
The business market is always changeable. Organizational management is involved in change
management to increase organizational activities. If the current market scenario will change, then
the organizational management can face several challenges. The chances of customers'
perception are one of the major risks of organizational change management (Infoentrepreneurs,
2018).
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