Leading Change: A Comparative Analysis of Zara and Primark Strategies

This report provides a comparative analysis of change management strategies within the retail sector, focusing on Zara and Primark. It begins by comparing the organizational structures and technological changes implemented by both companies, highlighting differences in approaches such as Zara's lean structure and technological integrations like POS systems and mobile AR apps, versus Primark's hierarchical structure and adoption of technology for design and inventory management. The report then evaluates the impact of internal and external drivers of change on leadership, team, and individual behaviors, discussing factors like organizational culture, poor delivery, and technological advancements. It also examines measures to minimize the negative impacts of change on organizational behavior, such as fostering a culture of innovation and providing effective leadership. Furthermore, the report explores barriers to change and their influence on leadership decision-making, and applies different leadership approaches to address change within various organizational contexts. The conclusion summarizes the key findings and emphasizes the importance of understanding and leading change for organizational success.

Understanding and
leading change
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Table of Contents
Task 1 ..............................................................................................................................................3
P1 Compare different organisation examples where there has been impact of change on an
organisation's strategy and operations ........................................................................................3
TASK 2 ...........................................................................................................................................7
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation......................................................................7
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour ..........................................................................................................10
TASK 3 .........................................................................................................................................10
P4 Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context .................................................................................11
TASK 4 .........................................................................................................................................13
P5 Apply different leadership approaches to dealing with change in a range of organisational
context ......................................................................................................................................13
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16
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INTRODUCTION
Change is an organisation is inevitable as it is required for continuous growth and
development of the company. The leaders and managers of an organisation have to adopt new
strategies for implementing change as this will help in increasing organisation value. The
organisational changes are termed as effective system of an organisation in which leaders make
effective strategies for performing business activities effectively. Leadership is defined as
approach of business management in which leaders have to make effective decisions for
business. Leaders are needed in any organisation for taking effective business decisions. Changes
are an integral part of business environment and these help in running business appropriately
(Alvesson,and Sveningsson, 2015). Understanding and leading change in an organisation is
important as this helps in removing all barriers and working in a good condition. The following
report is based on Zara and PRIMARK. Both these organisations are involved in brand clothing
and retailing sector. This report discusses about comparison of different organisational changes
and evaluation of internal and external drivers of change. It also discusses about remedies for
minimising change on organisational behaviour. At last different barriers to change and
leadership styles will be discussed.
Task 1
P1 Compare different organisation examples where there has been impact of change on an
organisation's strategy and operations
The organisational structure is defined as framework which defines different ways in
which business activities are implemented. This is done for achieving organisational goals and
objectives in time. Business has to be responsible, perform roles and duties and supervise
business activities. In context of chosen companies ZARA and PRIMARK they are both retail
sector organisations (Anderson, 2016). ZARA is a Spanish fashion retailer that was started in the
year 1975. the headquarters of ZARA are located in Arterio, Galicia. The founders of this
company are RosaliaMera and Amancio Ortega. The managers and leaders of ZARA have
adopted lean organisational structure because it focuses on profitability and performance of
organisation. On the other hand, PRIMARK is an Irish fast fashion retailer that has headquarters
in Dublin. It is a subsidiary of Associated British foods. The first store of this company was
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founded by Arthur Ryan in June 1969. This organisation has hierarchical level of management
and thus it has adopted tall structure in organisation. PRIMARK follows decentralized system
while performing business tasks and activities.
Comparison of ZARA and PRIMARK
Basis ZARA PRIMARK
Technological Change ZARA has adopted point of
sale(POS) system for making
changes and processing of
their orders. ZARA has
personal digital assistant for
checking availability of current
designs and requirements of
product. Zara has online stores
that have increased customer
experience and value. This
helped a lot increasing sales of
the company.
PRIMARK is involved in
making designer dresses in
very less time. The dresses of
PRIMARK have high quality
and they have unique styles.
This company uses latest
technology while making these
dresses. The use latest
technology helps in reducing
defects and errors in dresses.
This helps in increasing
profitability and sales of the
company. If PRIMARK wants
to sustain successfully in
market then it has to keep on
adopting latest technology for
increasing level of satisfaction
among customers. It is helpful
for organisation to grow and
succeed and this can be done
by adopting new technologies.
This is important for company
to have competitive advantage
to work effectively in
marketplace. If PRIMARK
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does not upgrade to online
services then there will be
reduced profitability and
productivity of organisation.
To have competitive
advantage, PRIMARK Must
start online selling of it's items.
Technology Adopted ZARA has started mobile
augmented reality app for
promoting it's dresses. This is
a promotional tool which is
available in more than 120
stores of ZARA. This
organisations has adopted a
new technology naming
“location intelligence” and
according to this technology it
is easy to determine if store is
having is having less stock. s
PRIMARK has various
software which are used for
maintaining performance and
productivity of the company.
PRIMARK adopts new
technologies for managing
performance management of
the organisation.
Structural Change ZARA has adopted vertical
integration with it;s
manufacturers. In this, new
products and items are
introduced in market within
less time. ZARA has
introduced online website and
this has increased sales of the
company. This organisation
has adopted control policy in
its business and according to
PRIMARK wants to increase
it's sales and revenue and for
this it had to expand it's
business. This company has
expanded it's business in US
and France. Because of this
revenue of company increased
by a range of 17%. The main
reason for expansion of
business is to sell products at
low price and increase number
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this products and items of
ZARA are made with high
quality. ZARA has
collaborated with California-
based Fetch Robotics as it
want to use artificial
intelligence in managing
inventory of stocks (Aslan,
and Reigeluth, 2013).
of customers base. PRIMARK
has around 350 stores at
present and it is opening more
shops in future.
Differences in Organizational Approaches to Change
In this report it is concluded that organisations have been operating in same industry
and there are various issues which are related to organisational structure. ZARA is involved in
maintaining flexibility in it's design and they have strategical agreements with domestic
manufactures. This help in delivering of products and services in given time interval. ZARA
analyses market before launching a new product in market. On the other hand, PRIMARK
focuses on customers of age group of 20 to 35 years. They provide dresses and items to
customers at low price (Azanza and et. al., 2013). The leaders of PRIMARK adopts cost
leadership strategy. This organisation has separate team that is involved in analysing current
fashion and trends of dresses among people.
Similarities in Organizational Approaches to Change
ZARA and PRIMARK work in same countries and thus they have many things in
common. Both these companies follow different operational functions in retail sector. These
companies follow similar approaches and operational methods while operating business
activities. ZARA and PRIMARK both have same objective and aim in order to sustain longer in
marketplace. Both these organisations have to fulfil requirements and demands of customers for
improving quality of products and services of them. They both work effectively in achieving
their goals and increasing level of satisfaction of employees.
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TASK 2
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation
Changes within organisation are very crucial as well as essential part while carrying out
their operations. According to this, management can have a participation in all the activities that
are carried out within business organisation. This enables them to formulate plans as well as
strategies accordingly. Changes are essential but they should be carried out in a such a way that
they yield affirmative results. For an instance, ZARA and PRIMARK can opt for usage of
technology to have effectual result they can either make use Windows/Linux OS but if they will
opt for DOS then instead of having better results, it will lead them to have complex system and
employees will need lots of time to understand this. This shows that changes are good but only if
they are made in right direction. It will aid them to have competitive edge within market.
Normally these changes are opted by employees as well as team members of organisation so that
they can attain goals along with objectives in stipulated time duration. This will assist them to
have better options with respect to future. Sometimes, these alterations will lead to creation of
pessimistic impact on organisation such as high pressure from top executives, lack of knowledge
with respect to latest techniques and technologies that they are looking forward to implement.
Both ZARA and PRIMARK need to examine changes that are crucial as well as their positive
and negative impact so that overall performance of organisation can be inclined rather than
decline.
Drivers of change: It denotes factors which will lead to creation of affirmative influence
on organisation. With respect to this, management of organisation can opt for new things through
which they can alter values in an effectual manner. Such kind of factors are concerned within
diverse prospects such as leaders, managers, employees and various other people who are
directly or indirectly associated with organisation. Leaders are liable for formulation of effectual
decisions with respect to their team members as well as organisation on the whole. For having
better and efficacious outcomes, leader need to have effectual strategies along with policies that
will enable them to attain objectives as well as goals of organisation. This will lead to
enhancement within performance of employees as they can have support and guidance from
leader while rendering their services. There exists diverse drivers of change that leads to creation
of influence on behaviour of leader and team. They are specified below:
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Internal factors and their impact:
They denotes factors which have been generated within internal environment of
organisation and are generally managed by organisation. These internal factors are illustrated
below:
Organizational culture:It comprises of diverse kinds of beliefs, norms, values as well as
working conditions of employees in an organisation. All these factors leads to creation of
affirmative impact on behaviour of employees along with formulation of strategical decisions in
an effectual way. It do not have positive impact always but sometimes, it leads to creation of
pessimistic influence also. For an instance, there can be decline within profitability of
organisation, turnover of employees and many others. In context of ZARA, it was proclaimed
that every individual will be part of formulation of decisions with respect to actual demands of
customers in a appropriate manner. With respect to this, they will be able to accomplish their
long term objectives that denotes higher productivity along with profitability. On the other hand,
PRIMARK offers their employees with effectual salary packages so that they remain motivated
and carry out their tasks in an enhanced manner. On behalf of organisation, it will lead them top
attain their target on stipulated time duration.
Poor Delivery:As per this, organisation goes through various problems with respect to
quality of the services and products which leads to creation of pessimistic impact on organisation
as well as a question mark on work done by employees. This can create a stressful environment
within working structure. Therefore, it is mandatory for organisation to have appropriate services
and methods used for their delivery must be able to satisfy needs of their customers either as per
their expectations or even better than that. With respect to ZARA, customers do not get delivery
of their services on the time mentioned, this creates negative impact on image of organisation.
With respect to PRIMARK, they are able to accomplish needs of their customers as quality of
products offered by them is enhanced.
Financial Management:It denotes kind of development process in which they can have
more profit within competitive environment. This means that decisions which organisation have
to take are on the basis of effectual segregation of budget among different teams within
organisation which will enable them to furnish their operations in an appropriate manner. With
respect to ZARA, they formulate strategies by keeping in mind needs of their customers. Along
with this, they focus on quality of products that are being furnished by them as well as they
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ensure that they give services at affordable prices. This enables them to grab attention of multiple
customers as well as lead to enhancement within their position. In context of PRIMARK, they
are usually making large investments in terms money so that they can attain their goals in
affirmative manner. For this both the organisations ensure that there employees are motivated
and for this they provide them with both monetary benefits as well as incentives as per their
performance.
External forces and their impact
These denotes the forces that are generated through external agents that are based within
outside working environment of organisation. They are created due to alterations within
governmental policies, evolvement of technology, globalisation and various others are creates
strong impact on ways in which organisation carry out their operations. It is responsibility of
both leaders as well as managers to manage pessimistic impact of all these on firm. Few external
factors that creates influence on working of organisation are specified below:
Technological Change: With respect to recent time, technology is growing rapidly
which leads to creation of strong affect on society as well as organisation as people expect that
they get those changes within services that are being used by them. Thus, it is important for
organisation to have appropriate tools as well as techniques through which they can deal with
certain kind of issues in an appropriate manner. With respect to ZARA and PRIMARK, they try
to have effectual usage of technologies within their working environment so that they can
provide their customers with updated services. This will lead them to have enhanced sales with
respect to future. Therefore, technological enhancements are very crucial for every organisation
as it assist them to carry out their operations in an enhanced manner. For an instance,
management can make use of simulation tools for designing their stuff, it will lead them to
eliminate wastage of products as well as identify that they are providing their customers with
latest designs. This denotes that, technological enhancements are crucial for every organisation
as it will make their worker easier as well as it can be carried out in better manner. In addition to
this, affirmative relationship can be formulated with customers as well as employees in an
appropriate manner.
Globalization: It refers to process of carrying out business at international level. For
attainment of competitive edge, organisation need to make use of effectual tools. With respect to
ZARA as well as PRIMARK they need to operate their business in multiple countries but they
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need to ensure that they adhere to policies, rules and regulations formulated by them (other
countries) while carrying out their operations. This will have affirmative impact on both
economy of country and organisation. They both need to opt for this so that they can have higher
productivity as well as profitability.
Impact on team, individuals as well as leaders:
These factors creates a strong impact on different human capitals of organisation as they
are responsible for carrying out different tasks. Leaders are liable to formulate decisions with
respect to certain tasks which they have to carry out. For this they have to influence employees
so that they perform according to guidelines given to them. Individuals get more affected as they
have to work harder to adjust within changing environment and understand each and every
aspect so that any kind of mistakes are not made by them while carrying out their operations. On
behalf of entire team there might be conflicts with respect to usage of technology as they might
not be aware of how to use it but once they know this then their work becomes smoother. This
will lead them to attain organisational objectives as well as goals in given time duration. At
initial stage they will go through certain problems but with passage of certain period, it will lead
to affirmative results.
P3 Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
TASK 3
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P4 Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context
With the assistance of appropriate acknowledgement of alterations, management team of
organisation can formulate effectual strategies that will assist them in evaluation as well as
implementation of changes within organisation. Change is defined as a continuous process that is
very crucial within each and every aspect of firm. With respect to ZARA as PRIMARK, there
aim is to opt for changes within functionalities of business. The outcome attained through this
will lead to enhancement within their performance as well as sustainability can be maintained for
longer duration of time that will furnish them with competitive edge within market.
Barriers of change management: There are different types of changes which can occur
within environment of organisation as it is not necessary for each employee to adapt to those
changes in affirmative manner. This will lead to creation of barriers with respect to alterations
within culture of firm. Furthermore, they creates gap which in result causes the pessimistic
impact on brand image of organisation on the whole in front of their customers. This will affect
functioning of both ZARA as well as PRIMARK organisation. These barriers with respect to
change management have been illustrated below:
Lack of Engagement of employees: It is one of the most crucial barriers i.e. employees
are not involved while furnishing functions of organisation. Within every firm, there exists wide
number of employees which will elude change as well as thinks that this is a pessimistic
approach. Furthermore, employees possess a fear that they will be replaced from the
organisation. With respect to ZARA as well as PRIMARK, there exists certain factors like
faithful and loyal employees which carry out their work in an organisation from last few years,
this causes in them feeling of fear. The reason behind this is that employees are hardly
concerned within formulation of strategies as well as processes associated with decision-making.
This denotes that entire process of performance as well as decision making will be affected
within competitive market.
Lack of Proper Communication Strategy: Within competitive environment, there exists
wide range organisation who have inefficacious communication strategies in an organisation.
This will lead to show that management of organisation cannot interact their strategies as well as
policies for their employees. With respect to ZARA as well as PRIMARK, higher level of
executives and management of organisation have executed changes so that employees can opt for
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them affirmatively. Furthermore, it is necessary to carry out interaction with each and every
employee with respect to changes which have been opted by organisation team so that they can
work efficiently. In addition to this, Force field model of change management can also be used
by ZARA & PRIMARK organisations, they have been illustrated below:
Force Field Analysis: For examining change management, it is initial approach that is
being used by wide range of managers within their respective firms. This approach was given by
Professor Kurt Lewin. This comprises of five steps through which management as well as
leaders can inspire their employees so that they acknowledge change management. All these
stages have been illustrated below:
Phase 1: It is primary and leading stage in which leaders along with management of
organisation examines the existent market environment with the assistance of effectual tools.
Through this, management of PRIMARK and ZARA can measure demands as well as
requirements of change along with analysis can be carried out to find out where change is
needed.
Phase 2: Each and every change that has been executed by organisation comprises of
certain risks. In this managers along with leaders identify the level of risks while execution of
any change. With reference to management of ZARA as well as PRIMARK has opted for some
strategies through the assistance of which risks associated with change can be minimised.
Phase 3: In this stage, top level executives of ZARA along with PRIMARK observe
crucial areas in which modifications or alterations are needed. In addition to this, they can also
access the ways in which these changes can be brought within working environment of these
organisations.
Phase 4: In this management along with leaders of ZARA as well as PRIMARK
formulates the action plan in efficacious manner and within stipulated time duration. Apart from
this, it involves modifications within entire processes.
Phase 5: In this top executives along with management of PRIMARK and ZARA will
scrutinize as well as estimate their strategies and policies. In addition to this, apart from carrying
out evaluation, it is crucial to examine effectual changes with respect to demands as well as
requirements.
Force field model comprises of facilitating as well as restraining elements associated with
change, they are elaborated below:
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