Existing Economy And The Background Of The Change Business Essay Example

capital income has been increasing and showing its effect on the market. The effect varies depending on lifestyle, regional growth within countries, and international markets. With these influences, companies are improving and becoming stronger, which directly improves the economy of the country they operate in. Consequently, many companies have established global brands as a result of globalization.

The development of infrastructure and improvement in technological tools are important factors in the process of globalization. On the other hand, it is necessary to decrease the barriers between countries in order to create an open market between them.

Undertaking 2.1b


Organization and its Administration:

Every organization has strengths and weaknesses, and the evaluation of these is an ongoing process. Companies operate based on certain guidelines and models, which cannot be frequently changed as it would impact their operations. There are rules within the company that need to be more transparent and have more control over employees. Parameters are also established for employee performance and professional development. A monotonous job without any growth opportunities can lead to boredom among employees, which can reduce productivity.

Changes within the organization can be made in two ways: at the disposal level or by altering the operational model. These modifications have the potential to improve employee and company performance. In addition, enhancing the hierarchical structure also contributes to better overall company performance. The nature of these changes, whether they are temporary or permanent, depends on how effective they are and their impact on the organization. Lowering the hierarchical level within the organization is crucial for empowering employees and positively influencing performance and development.

Implementing these strategies will lead to a significant improvement in employee motivation and productivity. The

organization's strengths include empowering employees to make decisions, centralizing the monitoring system, establishing clear goals and roles for employees, maintaining standardized operations, differentiating employees based on their specializations, allocating tasks impartially, and considering performance standards and merit when selecting employees for work assignments and promotions. However, the company also faces weaknesses such as the head of the organization having sole control over operations and decisions without consulting others, rigid regulations hindering certain activities, a slow decision-making process by higher authorities, a lack of dedication towards work, multiple levels of hierarchy resulting in slow implementation of decisions, and limited use of technology.

Undertaking 2.1c
Comparing the development of the organisation.
To facilitate company development, new programs should be introduced for implementation. Various ideas are being considered but only suitable ones should be selected. Idea development is an ongoing process aimed at making significant changes within an organization. By implementing these new ideas, several organizational problems can be resolved.

The purpose of implementing these concepts is to improve organization in all aspects. However, there are various challenges that arise during the implementation process from employees, the market, and clients. Companies must be ready to address these challenges both internally and externally. Organizational changes can come in different forms including adjustments to employee work policies, modifications to the physical structure of the company, changes in management, and enhancement of employee skills. The nature of change is always evolving and can be achieved through ongoing training and development. Marks & Spencer, a global company operating in 34 countries with approximately 718 locations, participates in diverse business activities such as selling clothes, food items, furniture, and various household goods.

There are various types of organizational

development procedures:
Standard circle: Team members use their knowledge, skills, and relevant experience to improve the job or business situation within their boundaries.
Re modernizing: This approach implements changes at different stages to bring change in the organization.
Human resource management: The HR department is crucial in motivating individuals and setting specific goals to maximize employee performance.
Social welfare of the workers: Taking care of employees is a significant activity within the company as they are vital for any organization.

It is crucial for companies to address their employees' physical and wellness needs while also acknowledging and valuing their hard work and accomplishments. All members of the company should be aware of available resources and recognize that high-performing individuals receive proper attention. In addition, the organization should continually develop and implement initiatives that contribute to its growth. It is vital to enhance the training process and involve employees in various activities to achieve success. By honing their skills in different areas, employees can work more productively and reach their objectives. Conducting training activities can boost employee confidence, promote collaboration among colleagues, and resolve internal issues within the company. Effectively addressing these challenges will improve efficiency and effectiveness among employees.

Besides, it is important to regularly monitor their public presentation and gather feedback from employees and clients in order to be more effective.

Review and Result:

It is necessary to periodically review the performance of both employees and the company to assess performance standards and goal achievements. Regularly reviewing results can help resolve many issues and problems.

Team intervention:

In addition to individual employee performance, teamwork is also crucial.

This activity is very important as it requires coordination and cooperation among various departments of the company

in order to achieve the desired results.

Model and analysis engineering:

By utilizing this technology, the concept of self-motivation can be fostered among employees. Problems and issues can be discussed at a deeper level with groups of people who are involved in decision-making regarding the problem. This will prevent confusion and enhance the confidence of group members in making decisions and moving in the right direction.

Role dialogue techniques:

This technique is a valuable tool for many companies because it helps address concerns from different people, making the issue more complex. However, by using this technique, companies can avoid unnecessary discussions between employees. It also considers the concerns of third parties and facilitates faster and easier problem-solving. Force field analysis is an effective method to identify and address issues. It considers factors that are affected and involved in the problem, allowing for necessary changes and finding solutions. This analysis helps identify forces driving change and factors limiting change, enabling the development of new strategies for existing problems.

Undertaking 2.3.a: Introduction:

Marks ; A ; Spencer is a reputable international retail chain operating in 718 locations across 34 countries. The company offers a variety of products including apparel, food, furniture, and household items. With approximately 75,000 employees, Marks ; A ; Spencer is performing well in the UK. However, certain shortcomings are impacting the company's revenue and profits. Sales have declined and there have been policy changes aiming to improve profitability. Despite these challenges, Marks ; A ; Spencer remains one of the most profitable retail companies globally. The company's performance fell short of expectations due to high prices and inefficiency in meeting customer needs.

On the other

hand, the competitors offer a wider range of designer clothes at affordable prices. They utilize different models, such as Business process reengineering process, Kaizen continuous improvement model, and Contextual planning and contingency planning, to bring about changes in their company.

Task 2.2.a and 2.2.b:

When implementing any change in an organization, it is crucial to consider the stakeholders and ensure their involvement. While some individuals may find these changes effective, others may not be as receptive. Adapting to change can be difficult for everyone; therefore, the company should ensure that all employees are adequately prepared for and involved in the change.

When analyzing the alterations undergone by Marks and Spencer, it is important to consider competition from rivals. Various methods, such as Force field analysis, Close system, Stakeholder analysis, and Open system, are used to analyze these alterations. Kurt Lewin's force field analysis is used to explain the driving and restraining forces involved. In addition to technological changes, there have also been changes in infrastructure and management. While initial changes were effective, they did not generate good results, leading to later extensive changes being made to improve company performance.

Changes in the organization

Significant changes include physical alterations and improvements in the hospitality and design of the establishment. In terms of hospitality, cafes and sit-out places were introduced, providing restaurants and beverages.

The introduction of Deli Bar in a women's wear store marked a significant change in the establishment. In addition to serving a variety of bites and drinks, the store also offered wine to customers. The internal architecture and design underwent modifications, incorporating energy-saving systems in lighting, refrigeration, and heating. The central atrium featured a helio-stat that brought in natural

sunlight, reducing the need for artificial lighting and maintenance costs. These changes were crucial for improving profits and enhancing competitiveness in the market. The top management made the decisions for these alterations, which were then implemented by the store managers.

The force field analysis, developed by Kurt Lewin, can be used to analyze changes. Before analyzing the changes, it is important to understand the factors that motivated the belief in and implementation of these changes at Marks and Spencer's. Driving forces impact the organization, pushing it towards a specific goal and driving the necessary changes. Examples of driving forces include teamwork, pressure from supervisors or managers, job-based incentives, and competition. On the other hand, restraining forces are negative forces that resist the change and are more psychological in nature. These forces decrease employee and organizational performance and productivity.

Some of the restraining forces that hinder productivity in organizations include apathy and poor care of equipment. When these forces are balanced, organizations can achieve productivity by implementing changes. The alterations made by Marks and Spencer were influenced by various driving forces, such as:

Driving forces that lead to changes in Marks and Spencer:

• Bettering the client base
• Providing a higher level of satisfaction to clients
• Entering new market areas
• Portraying a new brand image

To attract customers, the company aims to retain the existing old-aged clients in store for longer periods by setting up food establishments, which encourages customers to spend more time and relax. Additionally, efforts are made to attract younger clients by adapting to changing customer trends.

Better Customer Satisfaction: Food and beverage establishments can significantly enhance the shopping experience and provide customers with a high level of satisfaction. This presents an opportunity

for Marks and Spencer to enter the food industry and establish additional food stores. By creating new menus tailored to local preferences, the company can attract a wider customer base and increase profits in both the retail and food sectors.

Developing a new trade name image: with the new architecture and alterations done in the show suites, the company can create a new trade name image. The helio stat will communicate a message of societal duty and this will attract more clients.

Restraining forces are

• Deficit of skilled and trained staff
• Huge investment in recruiting and training employees
• Time delay in making the necessary alterations

Lack of Unskilled and Trained staff: Due to shortage of skilled and trained staff, the company will not be able to sell more to the clients due to lack of knowledge about the product and the preference of the client. Professional employees need to be recruited to work in the food establishments.

If the company's employees do not perform well in the food and drinks sector, the company may release its clients for the retail industry. Recruitment and training costs of employees should be considered in employing trained and skilled professionals for meeting client demands. Employees with different salaries can lead to disagreements within the same establishment, which may result in poor performance. The investment made should be proportional to the returns from food establishments. Time management is crucial to ensure that the necessary changes do not disrupt normal company operations.

Effective clip direction should be done while undergoing alterations.

Three Step Model of Change

All the alterations that are taken up by the companies should be fleet and should non lose the chance to revamp their concern activity. The

three measure theoretical account of Kurt Lewin has different phases and where both the direction and the employees should be prepared to confront the alterations. The three phases are the Unfreeze, Change and Refreeze. Unfreeze: In this phase the employees are prepared to accept the alteration and this leads to a new phase, traveling off from the old system.

The company should motivate employees and conduct analysis to determine necessary changes for the organization. If changes are deemed necessary, employees and stakeholders should be informed about the alterations occurring within the company. All stakeholders should be informed about the benefits of the changes. Additionally, the potential benefits of having both food establishments and retail stores should be analyzed, communicated, thoroughly examined, and subsequently reported.

If the concerns of employees, stakeholders, and shareholders arise, they should be addressed during this phase, and the company should communicate openly about addressing concerns such as work environment and wage structure.

Change

This is the crucial phase where the implemented changes start to show their effects on the company. It is important to involve people and inform clients about the changes. Employees should see that the changes are producing results, and if no results are shown over time, adjustments to the existing plan should be made. It is also important to clearly communicate that job losses may occur during this process.

Refreeze

The final phase of the change process where both management and employees experience and share the benefits of the change. Stability is achieved after the change.

Marks and Spencers should communicate that alterations are made for the benefit of everyone associated with the company, including employees, management, and stakeholders. The company should make necessary

alterations in the future according to its needs.

Another system is the Close system:

In this system, the changes made are limited to the company's internal circles and are not connected to the organization. Such changes are not useful to others.

Stakeholder analysis

Analyzing stakeholders is crucial for the organization as they provide perspectives and ideas to the company.

The individuals involved with the ends and aims of the company, whether directly or indirectly, can motivate employees to perform better. When making significant decisions and changes to company policies, it is important to seek advice from the stakeholders. The stakeholders can vary over time.

Changes in the stakeholders:

For an organization, the stakeholders can be an individual or a group of people who lead the company forward and contribute to its growth.

The objective is to develop plans that benefit both the company and other group members in their respective endeavors.

Stakeholder analysis:

The analysis by stakeholders occurs sporadically and may occur monthly, depending on the project being undertaken. They should become more engaged and connected to a program that will benefit the entire project. The stakeholders' response can be either positive or negative, depending on the company's activities and circumstances. The primary stakeholders, who are closely associated with the company, may be affected both positively and negatively by the company's operations.

It may include the owners and major shareholders of the company. Secondary Stakeholders are the individuals who are directly affected by the company indirectly. Key Stakeholders are important individuals in the organization as they are vital for the operation of the company. They include the employees, shareholders, customers, and sometimes the company manager.

Stakeholders and

their significance to the company.

The company offers various benefits to its stakeholders. Since most of the stakeholders are employees, they receive perks such as travel allowances and health insurance.

The company pays dividends, which greatly benefits the community and society associated with the company. By producing high-quality products, the customers, who are the main stakeholders in any company, also benefit. Stakeholders have different actions and concerns with the company.
Top Management: The management is responsible for overseeing the entire operation of the organization. They are responsible for making all necessary decisions and taking actions to ensure the well-being of the employees.

Human Resource Management is responsible for recruiting high-quality and productive employees for the organization. They also play a crucial role in developing these employees, which ultimately contributes to the overall development of the company.

Employees are vital to the company's success and are expected to be efficient and effective in their work.


Standard clients are the primary source of business for companies. Their support and development are essential for the organization's growth.


Shareholders provide significant financial support to the company and are essential to its success.

Once the financial position of the company improves, the shareholders also benefit and are influenced both positively and negatively. When the stock value of the company increases, it indicates that the company is growing stronger.

Monitoring and evaluation:

Regular monitoring should be conducted by the company to oversee daily business activities, and employees should receive appropriate guidance in a timely manner to perform better. By implementing such measures, Marks and Spencers will be more effective in the market and will attract more customers and profits.

Decision

As the changes implemented by Marks and Spencer's are well understood, the desired

outcomes should be achieved by making the changes more effective. The benefits gained from these changes should not only be short-term but also long-term, benefiting the employees, customers, and ultimately the company.