Organisational Change and Strategic Analysis Report: UNIQLO's Plan

This report provides a comprehensive analysis of UNIQLO's planned organizational changes, focusing on adapting to the evolving market, particularly the growth of online sales. It begins with an introduction to UNIQLO and identifies its strategic needs, emphasizing the importance of expanding its online presence to attract a younger demographic and compete with rivals. The report then reviews existing policies and practices, mapping them to the proposed strategic changes. It delves into the external and internal environments affecting the changes, including political, economic, social, technological, legal, and environmental factors, and identifies associated opportunities and threats. Key operational changes are outlined, alongside timelines and performance gaps. The report also covers change management aspects, including risk analysis, project planning, resource allocation, communication strategies, and responses to barriers. It concludes with recommendations for embedding change and evaluating the project plan, providing a well-rounded view of UNIQLO's strategic approach to organizational transformation.

Organisational Change
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
1 About Company........................................................................................................................3
2 Identify strategic needs.............................................................................................................4
Benefits of Strategies...................................................................................................................4
3 Review and map existing policies and practices to strategic change.......................................5
4 External and internal environment that affects organisational changes...................................8
5 Major operating Changes requirements....................................................................................9
7. Risk analysis for organisational change project....................................................................13
8. Change management project plan..........................................................................................15
PART B.........................................................................................................................................17
9. Getting approvals on change management process...............................................................17
10. Resource assignment to project and reporting protocols.....................................................17
11. Communication and education plan for organisational change...........................................18
Consultation feedback and input summary................................................................................19
12. Activities to deliver communication plan............................................................................19
13. Responding to barriers to change........................................................................................20
14. Action interventions and strategies for embedding change.................................................20
15. Evaluation and amendment of change management project plan.......................................21
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................23
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INTRODUCTION
There are various changes in environment so organisations need to adapt to such changes for
growth and expansion of business in order to gain competitive advantages. Evaluation of internal
and external factors helps company to identify various opportunity and threat in the environment.
It also helps in formulation of effective strategies so that company can earn large amount of
profitability. This report is about UNIQLO that is Japanese fashion retail that operates its
business in 15 countries with 1300 stores. UNIQLO is planning to bring various changes in the
organisational structure for effective management of online sales so that it can gain competitive
advantages. Pestle and Swot model are used by UNIQLO to analysis internal and external
environment for effective implementation of various strategies. The report also analysis various
resource requirement, legal and risk management and project timelines so that change can be
effective manage. Different strategies are formulated by company to communicate with other
employees and hinder various barrier of change management.
1 About Company
UNIQLO is a subsidiary company of Fast retailing Co. LTD in Australia that has various
stores and business operation across worldwide. It provides qualitative products and services to
customers so that it can increase its brand image and market share. Company have a mission to
provide continuously qualitative fashionable clothes, basic casual clothes so that people can
easily wear different types of clothes at lowest market prices (O’Connor, 2017). UNIQLO is
able to maintain customer’s satisfaction and loyalty through sticking towards its commitment and
continuous launching innovative products to satisfy need of large number of customers. Number
of competitors in fashion retail is promoting their business online therefore it becomes threats for
company. Therefore UNIQLO in order to protect itself from various threats and take advantages
of available opportunity has planned to make separate division for management of online sales.
Company through brining various changes in the organisation is able to gain competitive
advantages and expand its market share through satisfying need of customers in best possible
manner.
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2 Identify strategic needs
UNIQLO in order to attract large number of customers and enhance its market share need
to increase its presence in online sites to attract younger generation to prefer products and
services of its rather than other competitors available in the market. Company should also make
its official websites so that large number of customers can easily review various products and
services offered by company to its customers. Use of innovative technology such as social media
in marketing of products and services will helps UNIQLO in increasing its sales volume and
profitability (Donald and Donald, 2019). Company need to use innovative technologies in order
to manufacture, delivery products to end user and to effective communicate with its customers,
employees and investor so that right decision can be taken within limited time and efforts.
Manager of UNIQLO has planned to effective organise various training and development
programs to enhanced skills and knowledge of existing employees so that best output can be
gained. Therefore it can be stated that various changes in strategies of UNIQLO will helps
company in gaining strategic positioning in the industry.
Benefits of Strategies
There are various benefits of strategies to the company such as training and development
program make employees specialised in particular fields thus they are able to render qualitative
services and product to customer within limited wastage of resource, efforts. Use of innovative
technology in manufacturing of fashionable products of UNIQLO will also helps in effective
utilisation of available resource and achievement of company goals. Good working environment
and continuous motivation provide by manager of company will help in effective utilisation of
capabilities of each employee toward achievement of common goals. Use of social media helps
in attracting new as well as existing customers thus promotes growth and success of organisation
in the industry.
Stakeholders affected or involved
Due to changes in various strategies different stakeholder of UNIQLO are affected such as
its customers, investors, director and employees. Employees of company need to accept various
external changes and learn new method to perform different task and responsibilities for
completion of desired objectives (Grills and et.al., 2016). It helps customers by providing
qualitative fashionable products and services at reasonable rates thus satisfying their needs and
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wants. Investors of company are also satisfied and happy as from changed strategies they are get
maximum output of profit with minimum input. Thus, it can be stated that strategy changed has
affected various shareholder of UNIQLO and helps in maximising profitability of firm.
Kinds of changes required
Various kinds of changes are required so that company can easily expand its business
operation in online sites such as it had to use updated and innovative technologies to meet
demand and requirements of customers. UNIQLO has to redesign its organisational structure and
assign clearly roles and responsibilities to each employee so that they can effective coordinate
and cooperate with each other for accomplishment of particular goal. It has to reframe its
strategies and policies, set standard so that quality of products can be maintained and economic
of scale can be bringing within organisation (Vazquez, Hallack and Perez, 2018). Therefore all
such kinds of changes need to be brought within UNIQLO for sustainability and effective growth
of company.
3 Review and 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
Organisational
mission statement
and core values
UNIQLO vision and
mission is to offer
qualitative fashionable
products to customers to
expand its business
operation.
No N/A
UNIQLO
Business Model
Company have effective
business model such as it
continuously research on
various products and
services so that unsatisfied
needs of customers can be
meet.
No N/A
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UNIQLO
Business Strategy
- Southeast and
Oceania
Innovative strategy used in
Southeast and Oceania such
as manufacturing of
products as per needs,
preference of target
customers such as Hana
Tamija introduce for
Muslim customers that
helps in continuous increase
of profitability.
No N/A
Investor
Relations Policy
Various policies are made
by UNIQLO helps in
building strong relationship
with investors.
YES It can also use innovative
technology to maintain
close relationship with
existing investors.
Quality and Work
Health and Safety
Management
System
UNIQLO has specified
standard so that qualitative
products, checking of
products quality at each
stage helps company in
ensuring safety of health of
employees and customers
(Mpofu, and Madichie,
2018).
NO N/P
Compliance and
Philosophy
Employees of UNIQLO are
forced to act in particular
manner such as follow
ethics and code of behaviour
so that they can became
good member of society.
NO N/P
Code of Conduct
Basic Principles
Various principle and
standard are set by
NO N/P
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UNIQLO for its employees
and establishment of strong
brand image such as
customers satisfaction,
compliance of various laws
and good working
environment.
Employee
Relations and
Diversity Policy
UNIQLO provide good
working environment, equal
opportunity and education,
training to retained
satisfaction level of large
number of employees that
are working across different
stores (Johansson, 2018).
YES Company should encourage
views, ideas and opinion of
employees through use of
social media or internet to
create a felling of
belongingness among
existing customers.
Environmental
Management and
Policies
Company has taken various
steps for environment
management such as
improve energy efficiency
and maximise resource
management.
NO N/P
Risk Factors UNIQLO has effectively
managed risk factors in
order to expand its business
operation.
NO N/P
Corporate
Governance
Company is working hard
for effective corporate
governance by forcing
employees to adhere to code
of conduct so that company
can expand its business.
NO N/P
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Social Business
Initiatives & CSR
UNIQLO has planned to
local employment,
economic development and
provide various products to
solve social issue.
NO N/P
4 External and internal environment that affects organisational changes
Various factors that are present in environment affect on organisational changes such as
policies of government, economic condition, social preference and legal laws so they need to be
considered so that company can easily expand its business in online sales.
Political factors: Policies of government impact on operation of UNIQLO as there are most of
the countries that have imposed high duty of taxes to restrict import of products and services of
foreign company. Therefore it has impacted on profitability and sales of UNIQLO but at the
same time firm can enter into new market due to digitalisation and globalisation.
Economic factors: Economic condition of people is increasing so it demands quality products
and services at reasonable rates. GDP of country is continuous increasing so people are likely to
purchase products and services of UNIQLO over other competitors available in the market.
Social Factor: Customer trends, preference changes continuously so company need to
understand people taste and preference while manufacturing various products and services.
UNIQLO has effective analysis customer trend that is they like to purchase products through
online sites at the same time prefer products that are more organic and hygiene for better health
(Nielson G and et.al., 2016).
Technological Factor: There are various changes in technology and increasing awareness
among customers related to different innovative technology therefore UNIQLO has planned to
use innovative technology such as social media and sites to offer products and services.
Legal Factor: Various legal factors need to be followed by UNIQLO such as employment law,
discriminative law and health and safety laws for effective operation of online business.
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Environmental factor: It is most important issue that helps in increasing company profitability
and sales volume so UNIQLO has planned to effective utilise resource through minimising
wastage and cost of products (Broughton, 2017).
Opportunities: UNIQLO has opportunity to expand its business or enter into new market
through use of innovative technology to deliver products and services.
Threats: Company is facing threats of various changes in legislation and online sales taxes,
increasing competition among existing customers. Thus, UNIQLO has to formulate effective
strategies to protect itself from different threats of company.
5 Major operating Changes requirements
Name Operational Change Requirements Timeline
Performance Gaps
a) UNIQLO is selling is
products and services through
traditional stores only.
b) Employees of company are
not able to use innovative
technology (Jensen, 2019).
A) Company has to use online sites and
social media to market its products and
services.
B) Various training program need to be
organised so that they can use innovate
technology to delivery qualitative services.
1-3 Month
5 Month
Business Opportunities and
Threats for online division
a) To attract existing as well as
new customers base.
b) To use innovative
technology to attract wide
varieties of products.
c) Company can easily provide
opportunity to large number of
customer to select appropriate
products.
d) Increasing competition in
online market.
Increase presence in social sites helps
UNIQLO to bring changes within firm.
Changes in technology or UNIQLO have
to use innovative technology. Considered
various laws and taxes to avoid extra cost
and penalty (Noronha and Alner, 2019).
1 year
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e) Changing legislation related
to online business.
f) Threats of online sales taxes.
Management Decisions
a) To offer product through
online platform
b) To gain competitive
advantages through
manufacturing qualitative
products at reasonable rates.
Various changes in technology help in
effective utilisation of resource and
minimisation of wastage. Change its
organisational structure and management
for effective management of online sales
(Donald, 2016).
1 year -2
years
Prioritisation of Change Requirements
Identified Change requirements
(as identified in previous task)
Category
(Important and urgent;
Important but not urgent; Not
important but urgent; Not
important and not urgent)
Priority
Number
allocated
(start from 1)
Companies have to use innovative
technology such as internet, social media.
Important and urgent 1
Provide training and development program
to employees so that they can enhance
their knowledge and skills.
Important and urgent 1
Change in organisational structure Important and urgent 1
Changes in delivery of products and
services through building strong
relationship with suppliers
Important but not urgent 2
Email Consultation
<UNIQLO >
<22 April 2020>
Subject:
To: To Assist in identification of various threats and opportunities of UNIQLO.
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Dear Director,
I want to help you in identification of various opportunity such as expansion of business
through use of innovative technology namely, social media to promote wide varieties of
products. Increasing competition in fashionable retailer industry is another threat for
UNIQLO so effective strategy needs to be formulated for better and qualitative results (Coe,
Wiley and Bekker, 2019).
< Marks >
< Senior manager of UNIQLO >
Meeting Minutes
Date:
Meeting Minutes – Change
Requirement & Opportunities
Attending
Directors
Investors
Shareholder
Announcements
Various announcements are made by company such as it is planning to launch a
online business to get competitive advantages and meet customers need. The meeting has
various members such as directors, investors and shareholder of UNIQLO (Donald, 2016).
It has also planned to organize training and development program so that employees of
company can be effectively trained to perform different function within organization.
Discussion
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Company has formulate different strategies to resolve particular issue such as increase
competition in retail industry, increasing use of social sites and media to market products.
Therefore UNIQLO has also planned to offers its products and services through use of social
sites to earn large amount of profitability.
Summary
Last decision was made that UNIQLO also redesign its organisational structure for effective
management of new division of online sales in order to satisfy customer need and enhance its
market share.
6 Cost-Benefit analysis for high priority change requirement
Item Individual or unit costs Total Costs
Costs of high priority change
requirements
Technology - $45000
Staff -$ 110000
Space/Rent/Logistics -
$38,000
Utilities - $ 35,000
Transportation - $55,000
Equipment - $15,000
298000
Benefits from high priority
change requirements
(Tangible)
Benefits from high priority
change requirements
(Intangible)
Cost savings in training - $
15000
Cost savings in marketing - $
40000
More sales forecasted -
$350000
Helps in building strong
brand image and enhancing
market share, profitability of
company (Jensen, 2019).
405000
Comparison of cost and On the basis of comparison there are various benefits of
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