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The Background To Change Business Essay

Penneys stores are operating only in the Europe with 200 stores. Penneys stores of Primark are famous for producing all type of dresses to all type of age group. Demand for the dresses generally remains as a solid growth rate across the world. Irrespective of the demand and supply, irrespective of business cycles this industry grows slowly in multiple markets. Penneys products are men wear, women wear, children wear. From the date of inception Penneys expanded its market operations across the Europe continent. It limited its business operations to this region only. During the years of journey in this business Primark got wide reputation and acceptance across the nations and market. Through quality and reliable dress models Primark got good name from the market. Primark launched its new stores in many Europe nations since all the cultural and social environmental factors are similar to the other countries. Because of social, cultural, political, legal, economical and geographical factors are same and similar in many factors dressing habits of the people living in these regions looks same. So Primark is successful in improving the business opportunities in only in this region. Majorly with the similar characteristics’ in these countries, primary got good advantage in expand the operation from one country to another.

Generally businesses work according to the changes in the market conditions; market forces impact the business operation at regular intervals. If a company fails to cater the needs of a group of target market customers then it cannot run the business in long run, business with rational decision making gives good market opportunities over the years. Economic conditions of the markets are changing in many types; markets are operating under several dominating forces. A wrong decision making adversely impacts the business revenues. Economic conditions in Europe continent has been changed in the recent economic crisis across the globe. Major companies in the world were suffered with great loss in terms of revenue and lost business opportunities. So, all these type reasons as a whole created a need to think about strategic decision making. These changes gives a chance to boost the sales from new markets, change the decision making structures and processes, and also change in the management policies can give good chance to improve the market share of Primark. If all the suggested solutions for the company are implemented then company can expect a great change in generating more profits for the company and can increase the chance of producing employment to the unemployed professional across the old and new markets.

Introduction to change in organizations 3-4 lines

About organizational theories 4-5 lines

Explain Classical Scientific School of thought by fedric Taylor.

Drivers which caused to think about this organizational theory both internal and external factors

Explain Scientific School of Human Relationship

Drivers which caused to think about this organizational theory both internal and external factors

Explain Systems Approach

Input-Process-Output

Drivers which caused to think about this organizational theory both internal and external factors

Explain Contingency approach

Drivers which caused to think about this organizational theory both internal and external factors

Theoretically evaluate the strengths and weaknesses of bureaucratic organizations

Famous management scholar Max Weber had given the ideal structure of bureaucratic organizations with clear set of principle that it should have. If Organization structure is created with formal relationship between the job and positions based on the organization job and position hierarchy then that type of organization structures are useful for better and effective organization management. He believes that employee designation should be created and posts a right person after a formal training with predefined rules and regulation for performing assigned and allotted roles and responsibilities. Employees must perform his duties according to the duties that are assigned to his job while designing the job descriptions and job roles and responsibilities. This type of organization structure is more useful for conducting administration activities than management activities. Employees work under strict guidelines and procedures.

Advantages of having bureaucratic organizations:

If an organization is running according to the principle defined by Max Weber under hid bureaucratic organizations then that organisations can manage its employees. Since employees work according to the pre defined set of rules then he can does only his work and doesn’t cross the limit in performing the task.

If every work in the organization is controlled and managed by the employees according to the set of rules then high level discipline can be increased.

Employees’ performance and deviations in performing the work can be minimized.

Work productivity can be increased, since employees know about the roles and responsibilities that he should perform under his assigned job in the organization.

If all the activities are done by the skilled and well trained employees then it can be useful to increase the individual productivity.

In this type of organizations employee will get all legal and statutory benefits from the employers. So employees may feel more job security and feel more comfort in performing the job.

Disadvantages of having bureaucratic organizations:

It is very difficult to a company to define and create rules for every job and every position in a company and for every business activity, for performing regular tasks and work operations. Every time it is difficult to define set of rules. Theoretically it is difficult to create as and when required. Because according of the changing conditions employees should also change their roles and responsibilities for a better company performance.

Changing market conditions demand more activities and actions according the market performance of the company.

Though theoretically it is possible to create this type of organizations then practically it is difficult to implement the changes in the company.

Theoretically compare alternative forms of organizational development:

Organizations can be developed in many ways. Based on the need and requirement at various points of time generally organizations adopt change. Organizations development is a continuous process which is required for transforming a company certain set of operations to another. Organizational development should be a regular action to companies to adjust themselves according to the market conditions. Organization development gives an opportunity to bring necessary changes in a company and to module itself according to the external business opportunities and threats in the market environment.

Changing people: in the organization: Changing people means not completely firing the existing employees and recruiting and selecting new employees. Changing employees means adopting new changes in skills in them. In this competitive world employees of the organization should be in position to compete with the employees of the rival organization. Employees should be trained and develop them in every business aspect to make them ready for facing the competition from the market. If employees are strong and capable to handle such type of external threats and ready to face the competition and generate good performance is useful to earn more profits for the company. High level of the individual performance and productivity can be increased only through continuous employees training and development. For finding the employees that are performing poor, every company has to follow highly sophisticated HR techniques. So well designed and well framed organizational development process is required to get the expected results from the company activities using the effective change process management.

Changing technology: one of the best ways to change the organization according to the market conditions is changing the organization technologically. Generally organizations can generate good productive results with good technology usage in the organization. If organization is successful in changing the organization’s technology for more productivity, performance, convenience, less effort then it could be useful to get the desired results for major changes in the company. Primark can utilize latest technology for making dresses at less time and comfort with high quality and less defects with it. So finding a right technology from a different source at a cheaper rate gives better results to the company.

Changing process: For generating accurate output always depends on the correct input. If a company is successful in producing a correct input then it can give better products to its customers. In the case of Primark, if it is successful finding problems in the existing business process in the company then it can generate more quality output with fewer defects. After a careful study on the existing business process, after finding the activities that are causing process delay, problems in finishing the whole process, sub process, and final process then company can change the steps in making the dress for reducing the time and defects in making. A good process should always generate good output to the company.

Task 2:

Identify the key Stakeholder in your organisation and Develop systems to involve those stakeholders in the introduction of change

Though business organization is a non living entity companies operates in between the society. Business operations and decisions majorly impact the business decisions at every stage of the company’s life cycle. A right decision in a wrong time may fail to get success, and a right decision on a wrong location may also result adverse results to the company. So any business organization should work according to the changes in the market conditions. External and internal scanning is essential for taking a rational decision for each business issue.

If a company is successful in considering the impact of decision taken by management on the stakeholders of the company, then decision makers can take a rational move depending on the opinions of the stake holders. Stake holders are individuals or institutions who interact with business at various stages of the business cycle. If a major business decision is against to the interests of people in an organization or outside the organization then they may oppose to the decision to protect and secure their personal interests. If the management decision is against to increase or decrease of benefits anyone in this business world may exhibit their opinion in form of protest. A company operates on the investments’ made by the investors, normally these investors influence the major business decisions for increasing the chance to earn more profits on their investments and generate more return on the investments. Though a company is a non-living entity in the society, it works and operates in the society for the society. Several internal and external market forces influence the business. Every company has to consider the considerations of various individuals or organizations which are directly or indirectly support or depend on the company. Every company should have to conduct and perform stakeholder analysis for analyzing the opinions of the stakeholders and their support after the decision is being implemented. Without the support and assistance of stakeholders of the company it is difficult to manage the business operations smoothly and effectively.

Employees of the organization.

All kind of Investors

Financial institutions like bankers, capital markets

Suppliers of the company

Customers of the company

Trading associates

Industry apex bodies

Government bodies

Research organizations

Are the few stakeholders of a company.

Analyse and evaluate these systems which you had used to involve the key stakeholder in change process.

Primark is a major company in UK; it has wide operations across few nations in Europe. It is making new branded dress materials to all kind of age group people across the markets. It is major company and has got good amount of market share in few product segments. Primark is also known for new kind of dresses that are new to the fashion world. Its products are popular in several markets. Success of Primark depended on the producing new kind and new dress models for all age group according to the changes in the dressing wear. Mostly youngsters are highly attracted toward the dresses. Bothe innerwear and new kind of apparels are made and being sold in various stores of Primark.

In the present time, Primark is trying to implementing major technological advanced machines to improve the production facilities and also planning to expand the market operations by entering new markets. These all type of changes generally require huge amount of financial resources. In this competitive world operating in a small markets is not an easy task and not an appropriate idea in long run of the company. Generally demand for the products of any kind of business comes from the markets, where density of the populations is very high. So far Primark is operating in markets where populations and density of the population sis very low. People are trendier and always look for the new kind of dresses. If Primark is successful in entering new market then it can give good results to the company in terms of market share and profits. So Primark has to enter the markets, from where it can generate huge profits and demand for its dress materials. Instead of focusing on the European markets, if it is ready to take brave and bold step in entering Asian markets, where changing preferences in dress wearing is very slow compared to western community.

Employees of Primark generally oppose to change from the present way of working in a business process if a new technology is implemented. Employees always prefer to work in routine way manually and sometimes automatic work process than changing to the new way operations. An immediate change or sudden change in the existing process of working impact them psychologically and may impact the productivity. So managers of the organization should explain the benefits they as major stakeholders of the organization and organization as a business entity gets before the decision is implemented. They action reduces the resistance from them.

Management of Primark should explain the advantages to the investors, that organization gets if the change is implemented and the financial benefits that they and organization gets then they may support the change process in all terms technologically, business process change and people change.

Management of the organization should collect the opinion from its stakeholders through several ways that are available in the company, regarding the various ways of developing the organization. Depending on the internal communication channels or using the third part assistance Primark can inject change policies in the minds of the employees and other major stakeholders. Management should seek new advices from the stakeholders May gives good ideas to the management and at the same time management can use the experts’ opinion to analyze all the decisions. If management conducts the change process awareness sessions and training classes before the change process implementation and execution then stakeholders may not oppose the change, it may reduce the dissatisfaction about the company. So through proper communication mediums companies can reduce the resistance from the employees. Using the available change process implementation process and methods management of the organization can plan; analyze the factors that impact the stakeholders during and before the change process implementation. A good decision making and managing and controlling process is always required to control the resistance from the stakeholders.

Task 3:

What changes need to be bringing in the chosen organization?

Why these changes need to be brought?

Which model is used or adopted? (Ex: KAIZEN)

Why you have chosen this model?

How you are going to use this model?

Identify number of appropriate models for change that suites your organisation.

For any kind of organization change should be implemented in a sequential order, entire change process implementation should be implemented in a stage wise manner. Change cannot be implemented as and when required, change is a continuous process, there a several models and methods to implement change. Change can bring a positive result to a company in every business aspect. Change cannot be done without a proper plan and model. Model selection and application during the change process implementation differs from change type in organizational development process and other factors of implementation.

Total Quality Management:

TQM is the one of the most widely accepted and useful method to bring necessary change in the company. For the proposed changes in the company Primark, entire strategic decision making should be changed as per the organization future plans, organization should adopt a special category of work activities to bring the necessary changes.

TQM helps organizations to find a good procedure and action plan to take rational decisions. To expand market operations to other markets in the world, a careful and proper market analysis is required. Market forces continuously impact the business decisions at various intervals. So for making a right decision at right time, decision making process should be redesigned in this company. To expand the market operations to the other markets, Primark should understand the dressing habits of the people in the target market. For making any major decision, first a carful market analysis is required. TQM helps to streamline all the existing activities and processes to increase performance and productivity. TQM is also useful to produce defect free and high quality dresses using the available tools and principles in it.

PEST analysis:

Before moving and entering new market that is new to the company always it is required to conduct correct and accurate market research. For identifying the necessary change for the company internal and external environment scanning and analysis is required at every stage in a business cycle.

Political environment: this environment analysis is essential for finding a good opportunity for company, a major political change in a country or region. Political conditions analysis helps to find out the government attitude for industrial support, tax concessions and industrial incentives.

Economic environment: Is a company is successful in finding the movements of the economy then it can take right decisions for implementing right change at a right time. In a country if economic system of that country is strong and robust then new and old companies can conduct smooth business operations.

Social and cultural environment: People buy and wear dresses based on the rules and norms in their social and cultural values. If they are against to the social and cultural norms, normally companies cannot generate sales from that type of markets. So a high level of economic environment scanning is essential to understand the support from the economic institutions before and during the business operations.

Technological Environment: for making dresses according to the market preferences, Primark has to understand the availability of technology for making the dresses according to the market conditions. If technological resources are available then company can think about the market expansion and diversification options at various stages of business operations.

SWOT analysis:

For implementing change in a company, in depth analysis of internal organization is essential to find the required change in it. SWOT analysis is a useful technique to find out suitable changes that are required by conducting in depth analysis on various business areas in an organization.

Strengths: Before taking a good decision for implementing a change in company strengths of the company should be assessed to identify the changes required wherever they are necessary. So Primark also should find out the strengths of the company. Normally employees’ skills, new technology availability and core competences are identified for making a right decision relating to change. Strengths identification is useful to find a right step and right time for making a change process implementation.

Weaknesses: A weak area in a business process is definitely a drawback for attaining the goals and objectives of the company. Identifying weak areas in performing business process operations gives immense opportunities to consider a weak point. All these type of weak points are helpful to develop a robust plan for the change process implementation.

Opportunities: Generally organizations adopt change to utilize the market opportunities, to protect the existing market share, to gain more revenue out of operations, to minimize costs and also to control costs and expenditure. If a company is successful in finding the opportunities that are coming from the market then it can get ready with right level of resources to utilize it for business activities for generating more profits for the company and for creating more wealth for the investors. So this opportunities scanning helps to adopt a major change in the company.

Threats: If a company is successfully in finding threats from the market then it can change its business operations and activities to protect the company from the external threat. This can also be useful to define and prepare a clear change planning and implementation process.

Above two are not required, need to use one model to implement the required changes

All these three models and analysis tools are useful to find out a right change to the organisation as and when required with clear and correct change implementation process.

How would you go ahead in implementing one or more model(s) in your chosen organisation and what improvements do you expect to achieve by implementing your chosen model(s).

Change cannot be implemented using simple process, a careful implementation structure with sequence of steps have to be followed to achieve the desired results. If the whole changes that are proposed are implemented successfully then Primark will get several benefits. It can run its business in more effective manners. It can expand the business operations to multiple locations across the globe. Demand for the dresses has huge demand in the entire world. So a if all the proposed changes in making strategic decision making, diversification and operational activities are implemented then company can get several advantages.

Costs of the Primark can be controlled while making dress material by redesigning the production process steps are at the same time it can also control over expenditure of the company at various levels.

Managers can take good decisions quickly with high quality; strategic decision making of the company can be improved with high level of integrity and good leadership quality. Entire top level management structure should be restructured to attain the given results. With the ready information availability managers can take right decisions for the development of the organization at various stages.

All these models for implementing change can be adopted based on the change method type and structure. If a company is successful in providing a right solution for the identified problem in a company then it can give better results to the company.

Once these proposed changes are implemented then Primark will get several benefits:

Size of the market increase to conduct business in multiple locations.

Entering new markets gives, particularly developing countries gives good chance to build good market base and customer base.

Profits of the company can be increase with the propose changes

Customer base can be increased

Successful brands and dress models in one market can be useful to catch the market eye in new markets.

Business opportunities can be increased at a faster pace.

Market opportunities can be utilized to increase the business opportunities.

Wealth to the investors can be created.

Return on the investors’ investments can be increased.

Successful brands can be launched in new markets.

Conclusion(50 words)

Three outcomes after implementing the suggested changes

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