Internal And External Factors That Influence Change Commerce Essay


This report focuses on the change of type required and highlights Internal and External factors that influence change in an Organisational structure.

It further illustrates with a thorough analysis of different types of change that impact an organisation and the need that prompts such changes which further exploration in the impact of such changes on Buildco PLC.

The report also explores the bureaucratic structure of Buildco public limited company. Then it is understood that the various types of organisation structure and their advantages and disadvantages. In the end we identify the type of transformational change that Buildco Plc needs in order to accelerate the expansion plan of the organisation.

Lastly, this report suggests Matrix Form of Organisation Structure for Buildco with suitable reasoning to the Board of the company.


Buildco Plc is a construction company that has been in business of construction from the past 20 years. The company has a typical bureaucratic type of structure FAHEEM AHMED KHAN

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and now it plans to expand its operations in European territory after having secured successful contracts in New Zealand and South Africa.

It functions not only in the UK but has also managed to acquire substantial contracts in South Africa and NewZealand. And now it plans to expand its base into Europe . Buildco Plc also plans to expand its business in Industrial Construction.

Change is inevitable in the current global scenario for any Organisation in any Industry. Different types of change that can affect an Organisation are:

Table 3.0. Types of Change

Types of Change Explanation

Economic Relates to Entry Requirement and procedure in a new market, Consumer purchasing power, spending habits, competitors, how often a new product is launched in a particular market. Buildco would need to overview the entry criteria and how easy and difficult is it to get into a market.

Before selecting the relevant countries to expand, it will have to analyse the consumer behaviour,

level of development and

the tightness or looseness of each market.

It would need to identify its competitors and their hold in that market.

Technology Relates to the level of technology used in different markets, by competitors. Buildco as a company has immense potential that it showcases through its innovative designs however before Buildco plans to expand its operations into a new market with a new product i.e. Industrial Construction, it needs to study the level of technology permissible in that market and available with the competitors. FAHEEM AHMED KHAN


Another recent issue it might face is that of climate change. Places prone to strong climatic changes due to global warming needs to be addressed and this should be incorporated in the


'Winds of change' can be defined as adaptation, reconstruction, evolution, and revolution and or end result of change and or the nature of change. change needs to develop their analytical judgement and implementation skills .without judgement after contextual analysis change agents can miss the most critical aspect of the change context and without action, the process can remain a planning exercise which never tackles the reality of change within the organisation change agent needs to possess analytical abilities.

On the other hand the possible impacts on Buildco plc which is a construction company are the laws or regulation of different countries, or an unpredictable rate of inflation, the recruitment or retirement of the individuals from the organisation or implementing new structures or reward systems.

Like many other European multi-national companies are attempting transformational change as they are moving into the overseas market for the business one of them is the Buildco public limited company which basically is a construction company operating the U.K, parts of Europe , South Africa , and New Zealand . The issue which looks complicated in the company is the structural one and needs immediate attention for change in the best possible way. The internal structure looks fine from the knowledge that is operating from the past 20 years and the acquisition of the small building company just a few months back. So from this scenario there doesn't look much need for change in the internal factor at the moment.

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On the other hand we got the external structure of the company that needs quick change as we see that the company got the contracts or the business in the developed nations or the similar types of cultural countries. It hasn't been in the under developing or the different cultural nations. The organisation needs the cultural change.

Some suggested change management principles:5.0 FAHEEM AHMED


1. At all times involve and agree support from people within system (system = environment, processes, culture, relationships, behaviours, etc., whether personal or organisational).

2. Understand where you or the organisation is at the moment.

3. think where you want to be, when and what the measures will Plan have to be there.

4. Plan development towards high unachievable measurable stages.

5. enable , communicate ,and enable and facilitate involvement from people, as early and openly and as fully as is possible.

In some cases people might resist change:

1. Feeling of insecurity and personal inadequacy

2. Disruption of existing relation

3. Threats of individual status and financial reward.

4. Retirement over not having been consulted.

5. Doubts regarding the technical feasibility of proposed changes.

The company's beurocratic structure which is a combined organisational structure of which company including directors and number of managers which has set off its own team.


The current structure is regulating to manage the activities to expand it's expand its growth. The organisational structure is initially developed by the Buildco headed by George lampton. The present scenario consists of majority of manager which was the strength over the past to the company for its expansion by doing business across the world's leading top cities.

However, due to the present economic situation the structure must be changed according to my planning for the change management. I.e. the organisation must have to cut the bias to gain the competitive advantage and the growth of company to boost the economy and profit.

The present organisational structure is so strong to enable the quick achievement but the scenario is changed here because due to the fall in economic situation. The structure needs some changes to reduce the current weakness.

The company's internal structure consists of its strength and weakness.

Swot analysis 7.0








For a change management if the internal structure developed some changes for the requirement that means there is also a need to calculate its strength and weakness which could affects its external structure. The external structure deals with the outside environment such as opportunities from various cities across the globe. Find the threats such as new corners and rivalry among existing competitors.

The internal structure has strengths of the company's like:

-The company has strong marketing strategy with a team of expertise.

-The new policies and plans to develop some innovative design which differentiate Buildco plc from other competitors of same service.



-The current business location i.e. united kingdom (U.K). Which is highly infrastructural and technologically developed country which also plays a major role where the majority to expand the business and deals with international stake holders could be easy.

-The previous policies of the company processed the quality output in the way of doing business was very effective to manage internal and external structure.

-The above strength of the company provides added value to the organisation and generate the good quality and service to customers

-The deliverables maintains the good margins across added value, which are the ''strength' 'of the company.