Understanding and Leading Change BTEC Level 5 LSST

TASK 1

P1 Impact of change on organisational strategies and operations

Change is identify as a scenario which go on due to external and internal forces which are available in the business environment. As per this force something innovative and different are come out in enterprise which highly impacts on their business operations and activities. The effect of variation should be negative and positive which mainly relay on the adaptability of enterprise strategies and policies. Haier and Whirlpool are electronic industry which render their services and products in different nations (Clarke and Persaud, 2011). As different number of internal forces such as technology capacity, lead changes, employees morale and organisation culture in both business. Through having their business operations and function in different nations different number of external forces such as PESTLE analysis (Political, economic, social, technological, legal and environmental). All these are highly effects on company operations in various countries. Thus, both factors largely impacts the lectureship performance and behaviours of team as well as workers also. It is seen that, such kind of variation have more effect on operation and strategies of Haier and Whirlpool.

Requirement for determination of such type of changes:

The main motive behind determination of such kind of modifications in to develop better plan and policy which encourage workers in order to perform effective in accomplishment of common objectives. For this motto, change management effect evaluation models are selected by Haier and Whirlpool. It support in early determination and reduce their negative effects on its future operations and functions (Doppelt, 2017). As different number of chances are collect by the company through recognisation of these modification are explained as below:

Encourage innovation: Determination and formulation of variation encourage the workers in order to enhance their knowledge and skills about effectively take such kind of force in their daily basis activity. This changes support to motivate workforce to maximise their passion further their functions.

Ascertain position of the company in marketplace: If the Electronic business like Haier and Whirlpool, not render focuses on external and internal drivers of modification them it will decrease their competitiveness in marketplace. It gives chances to other enterprise in order to capture large number of market share. So, in order to create their better position and gain competitive edge which is essential to adopt modification.

Team building: Completion of business goals and targets which is relay on the employees working and functioning as a team (Fullan, 2014). Lack of consideration of variation impacts leadership and communication among workforce. So, it is essential for the business to develop effective team which help them to maximise their profitability and productivity ratio.

Haier: It is a Chinese collective multinational home appliances and consumer electronics business entity. It was founded in 1984 by Zhang Ruimin at Qingdao, China, UK. They deals in different varity of products such as consumer electronics, cooling system, small appliances and many other. Main motive of the company is to provide effective quality in their service and products to the customer at reasonable price.

Whirlpool: It is an American multinational production and home appliances market in United states. They deals in different variety of electronic equipments which help them to maximise their sales and revenues in limited time period. Main motive of the organisation is to develop an effective image in marketplace.

Impact of change on business operations and strategy

It is described above that both enterprise deals in electronic products in across the nations. So, there is more significance of internal part in success and growth of enterprise. Similarly, various nation have diverse business surround. In today's world, one of the major alteration which is come out is digitisation (Fyke and Buzzanell, 2013). Through external factors that also effects on business operations. This will have vast effect on the business strategy and policy of Haier and Whirlpool.

Haier: Haier has planned its calculated net income at 2.45 billion US Dollars and revenues at 32.8 billion by the ending year of 2014. As it was a comparatively new organization it desired to face its challenger successfully and furthermore desired to enter in deeper marketplace and develop a strong consumer base of its own. Haier selected penetrating pricing and competitor-orientated strategy and thence set its commodity prices at boundary lower rate than its competitor companies. Marketing strategies of Haier is also effective over its challengers. The home appliances company and Chinese Multinational consumer electronics was invented in 1984. The business sells the big display of electronics items and white goods including computers and mobile phones, kitchen and home appliances.

Whirlpool. In order to come at a definite strategy the business entity has fix a unit that determine and analyse the different outgo that incurs during the possession as well as production of the goods by the customers. This cognition in arrangement with the pricing strategies of the competitor business organisation is essential in deciding the existent pricing policy of the brand name or product. Due to its arranged resourceful warehouses, the business entity has been capable to reduce the costs of its items by quite a margin. Whirlpool develops the strategy of target market, market segmentation, manufacturing and distributions. Whirlpool is the first factory-made commodity of home home appliances. The market share of company is above 25%.

P2 Influence of change drivers on leadership and behaviour

There are mainly two types of drives of variation which are known as external and internal factor. Both factors are highly effects on team, leadership and individual behaviours. These are explained as below:

Internal drivers: This type of factor existing within an enterprise. The internal changes drivers which are available in Haier and Whirlpool are technological capacity, employees morale, organisational culture, financial resources, poor delivery and so on (Hrebiniak, 2013). All these factors decrease the business capacity in order to achieve their goals and objectives within the allotted time period.

Impacts or effects of internal drivers of change: These factors have more effects on the team and employees behaviour which are functioning in Haier and Whirlpool. This will impacts on the quality of leadership among the workforce which fall down their capability to perform and work their various functions in an effective manner. There are some impacts of internal drives on business performance and effectiveness which are determined as below:

Employee morale: In the organisation confidence level of the workforce is more essential while performing activities and function of business this assist to enhance their strengths and skills. If the employees morale is not high, then they are not bound up to their jobs. Thus, it will develop difficulties and issues in development of effective group. In order to enhance their passion level, company should render adequate job conditions.

Poor delivery: To accomplish success and growth electronic business like Haier and Whirlpool require to have proper number of provider to give their products and services to the clients (Keppel and et. al., 2012). Poor delivery is identify as a main issue in firm which reduce the profitability and sales margin of the company.

Financial management: Sufficient amount of the money is foremost element for each and every organisation. In the organisation different departments are work such as human resource, production, marketing, research and development, needs proper amount of capital to do their all functions and activities properly. This will impacts on management decision-making power about introduction of new assets, purchase of raw materials, optimum utilisation or resources and many other.

External Drivers: It is identify as a factor which are existing in external environment of company. In this factor, management of bother enterprise such as Haier and Whirlpool doesn't have kind of control. In these force different factors are considers like customer satisfaction, political, competitors, economical and so on. These elements have negative as well as positive effects in employee’s and team behaviours.

Effects of external drivers of change: There are different external factors which highly effects on individual as well as team behaviours. These are shown as below:

New challengers: These are main problem for each and every business because they already innovate new techniques, approaches and ideas to satisfy basic and different wants of clients (Malenfant, 2010). They renders such goods which are already having new features at affordable prices. Thus, it is not easy for old organisation in order to modify their goods in quickly because they have various number of assets.

Technology: It is identify as essential factor which is needed by the business. This force consider regarding discoveries, inventions and effective approach which support to change over their raw material into finished goods. This technology give better chances to the Haier and Whirlpool to maximise their sales and do all activities in proper manner.

Economy: This factor identify the economic situation of the nation that has direct relation with business performance. If any kind of financial change or fluctuations are develop like deflation and inflation rate in nations has negative effects on business functions and activities of Haier and Whirlpool. This factor also decrease the motivation and leadership of entire workforce who are working in the organisation.

Customer satisfaction: It is one of the main and essential part for the business to improve their position at marketplace. This force consider regarding the process of evaluation by Haier and Whirlpool that products and services renders by organisation with motto to fulfil basic demands of audience (Mukherjee and et. al., 2012). It perform as an indicator about evaluation of business performance. It also encourage workforce to maintain their performance and effectiveness for long duration.

Political: It is another factor which is complete rely on rules and regulations of government. This force mainly related to policies, political stability, legislation, norms and conditions. Haier and Whirlpool. Having their business operations and functions in different nations where the tax policy and legislation are not same. This will impacts the leadership characteristics and administration decisi

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