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Student Name Murshaid Alom Reasonable Adjustments

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Assignment marking criteria

Select and justify an appropriate focus for the Using a ‘Future’ approach, Given the trends, identify Apply ideas and theory from appro
Briefing document. research and identify the two or three key areas of academic sources in order to eval
significant trends and change that managers/leaders and organisatio
drivers for change that are managers/leaders within respond effectively to key aspects
likely to influence and organisations may be organisational dynamics likely to b
impact on organisations required to work with. generated by the areas of change
operating within the
chosen sector/industry.
Below 40% Inappropriate focus and no justification for the No evidence of research None or just one key A distinct lack of ideas and theory
briefing document. and identification of area of change identified from inappropriate sources.
significant trends and with no explanation.
drivers.

40% - 49% Appropriate focus identified however there is no Little evidence of research Two key areas of change Some ideas and theory sourced fr
justification evident. and inadequate identified which are appropriate academic sources wh
identification of significant underpinned with basic support your evaluation.
trends and drivers. explanations.

50% - 59% Appropriate focus and some justification Evidence of research and Two key areas of change A number of ideas and theory sou
explained. some identification of the identified with adequate a good level of academic sources
significant trends which explanations support comprehensive evaluation
specifically refer to demonstrated.
impacts on the
organisation.

60% - 69% Appropriate focus and a well-grounded Strong evidence of Three key areas of Well-grounded and sourced ideas and
justification demonstrated. research and identification change identified with a theory supported by a high level of
of the significant trends high level of explanations academic sources which underpins your
which specifically refer to with analysis and evaluation.
impacts and influences on evaluation demonstrated.
the organisation.
Underpinned with
analysis.
70% and above Appropriate focus and analysis and evaluation Excellent evidence of Three key areas of Excellent ideas and theory from appropriate
demonstrated which leads into an excellent research and identification change identified with academic sources which supports a high
justification. of the significant trends excellent explanations level of evaluation.
which specifically refer to underpinned with
impacts and influences on thorough analysis and
the organisation. High evaluation.
levels of analysis and
evaluation demonstrated.

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Managing and Leading Strategic Change
Within the desserts industry

Murshaid Alom
S15125673

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Contents

Summary pg.5
Introduction pg.5
Main Body
i) Need for change pg.5
ii) The 7-S model pg.6
iii) Key areas of change pg.8
Conclusions pg.9
Appendices pg.10
References pg.11

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Summary

This report will be addressing organizational strategic change. To put the discussion into
a viewpoint, the report will be looking at Aroma Ice-cream and its strategic change. The
chosen focus will be the desserts supplying industry. Furthermore, the report will look
into the relationship between the industry’s environment and forces for change and the
different issues that may arise for the management of change. Next, this report will
address the need for change within the area and the driving factors for the need of
organizational change. Adding to this, the report will be looking at the stakeholders in
terms of how it may affect the organizational strategic change and how that may change
the way that drives the change. To structure the report, “The McKinsey 7-S Model’ will
be looked into such as”.

Introduction

A lot of companies and organizations tend to make strategic changes and develop new
methods and processes and policies that may affect the way a company operates and how
the culture within a company evolves. The reason why this takes place is due to the idea
that a business as a whole must evolve and change in order for it either match a new
market or change to become innovative where a market is either dying or no longer
exists. An example of an organizational change would be the car manufacturer, Peugeot.
In 1810, Peugeot used to manufacture coffee mills and bicycles however, as the market
changed, the company changed its ethos and the organization developed into what it is
today. (Autoevolution.com, 2017). Organizational strategic change encompasses different
elements that affect how the change functions and outcomes. For instance, it is not just
about the strategy itself but looks into the different frameworks, processes and the culture
of an organization, which naturally would look into the way the different stakeholders
react within a company. (Bloodgood and Morrow, 2003). For this report, Aroma Ice-
cream has been looked into in terms of discussing its process in an organization strategic
change model and how the way it operates and the issues it must overcome for culture
change.

Aroma Ice-cream is a desserts company that manufactures and distributes desserts and
sweets to different restaurants and catering industry on a national scale in the UK since
1989. (Aromaicecream.co.uk, 2017). The company’s main customer base is mainly
restaurants that do not make their desserts in house and follows a B2B model. Adding to
this, Aroma Ice-cream doesn’t have many competitors as the company is widely used by
a lot of restaurants and the supply prices are hard to compete with. The strategy Aroma
Ice-cream used was to do with building a framework for the stakeholders, the restaurant
owners, and incorporating them into the organization. This helped build a relationship
with the stakeholders and helped understand the different needs.

Need for change

The need for change can come from different situations. For instance, the driving forces
for change can come from factors such as political changes made by a government. For
instance, if a law is passed for emissions given out by vehicles, then transport companies

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would have to change the way they go about things. Other aspects that can drive the
forces for change would be areas such as the market itself changing. For instance,
customers and consumers needs may change. One of the needs for organizational change
within the desserts supplying industry would be that more people are becoming health
conscious. For instance, in 2015, 58% of women and 68% of men were classed as
overweight or obese. (Digital.nhs.uk, 2017). With this change existent in the market, the
desserts supplying industry would have to look into this as this would be a driving force
for changing the desserts produced to be a healthier that what is produced at the moment.
Sales of ice cream sold globally in 2016 was 13 billion litres whereas the year before it
was 15.6 billion litres. (Mail Online, 2017). This is a major drive for change as if the
desserts industry doesn’t change, then a dip in sales is likely to be seen.

Another political factor to consider in the UK would be to do with leaving the European
Union. Business will have to eventually change the way they conduct themselves as
Brexit talks leave an uncertain path. As Brexit goes ahead, the supply chain for the
dessert industry would be affected as due to the reason that the manufacturing of the
products and the selling of the products will become harder. For instance, for UK based
desserts company’s such as Aroma Ice-cream will be affected as they have factories in
Spain.

The last driving force for change would be competitors being able to supply more
desserts to retailers. As technology moves on, factors affecting the production of desserts
come into play. For instance, robotics has been around in the manufacturing industry for
a while and are replacing the human element in the manufacturing process. This brings on
two issues, firstly, if companies are not up to date technologically, then they can be
surpassed by their competitors. And secondly, there is a conflict in terms of social
responsibility. Larger companies have a social responsibility to provide employment to
people.

McKinsey’s 7-S Model

The 7-S model is split into two categories, the hard elements that are addressed as the
cold triangle, compromised of Strategy, Structure, and Systems, and the soft elements
which is the warm square, compromised of Shared Values, Skills, Style, Staff. (Ravanfar,
2015). See Appendix 1 for the representation of the model with the connections between
the different internal elements.

Strategy is the way an organization functions in order to compete in a given market. This
element in the 7-S model is basically there to introduce a competitive edge over the
competition that may exist in the market and can be a long-term strategy. This is due to
the reason that, a short-term strategy isn’t a good bet for a company however if it is well
aligned with the rest of the six elements, then can lead to strong results. (Ravanfar, 2015).
In terms of Aroma Ice-Cream’s strategy, the need for change would be dependent on any
new competitors that are trying to steal market share. Aroma Ice-creams strategy is down
to providing a personal experience for business owners. This is down to the idea of
building a personal relationship with the customer. For instance, it would be far simpler
for businesses to be able to order desserts online through a website and have a delivery
system such as amazon, however, this is what aroma Ice-cream’s competitors do. Instead,

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they call up the business owners to get their orders. This is seen as a competitive edge
and a long-term strategy as the competitors would require a lot more staff to do this.
Furthermore, this provides a more personal touch. The need for change in strategy would
come when a bigger competitor arises. This is due to the fact that a big competitor would
be able to deliver a personal touch as well which would result in Aroma Ice-cream not
having a competitive edge in the market anymore. In terms of the industry as a whole and
relating to the first driving factor for change, obesity levels in the UK have increased and
as a result, sales has dropped for desserts. In order for companies within the industry to
attain an edge, a strategy should be devised in order to match the new requirements for
the market. Furthermore, the changes in structure should not be on a temporary basis.
This is due to the fact that, they may give results short term, however, the fact that people
are becoming more health conscious isn’t just another general market trend, however, it is
most likely going to be a lasting change. This is why an organization in the desserts
industry may re-evaluate the structure and change its company vision.

Structure in simple terms is the organizational chart for a firm. (Ravanfair, 2015).
Structure is where the businesses different areas are organized and determines the
management line and the way communication is done from within the organization. This
element is generally the easiest to apply change and is easier for managers or
organizational change to alter as it is more visible than some of the other elements.
Looking at the second issue facing the desserts industry, there would need to be a change
in the structure in terms of the supply chain and distribution. This is because, as a whole,
when importing different food from Europe, there are specific ports which the goods can
come through. Since Britain will be leaving the EU, this a re-structure may be required of
the manufacturing, importing and distributing of desserts.

Systems are the processes that are done on a daily basis by the employees of an
organization. Generally speaking, this element encompasses how business is done and
seems to be the main area that is focused on when speaking of organizational change.
This is because it is the first element that is looked into to change how a business
functions and how business is conducted, negating the previously mentioned elements.

The above three elements from the 7-S model are what mangers usually focus on as it is
expected that the rest of the elements naturally fall into the organizational change when
the three elements in the cold triangle are addressed. However, McKinsey’s 7-S model
suggests that the elements from the cold triangle and the warm square are intertwined and
go hand in hand with organizational change.

Skills are the requirements of employees in order to suit a job that needs to be fulfilled.
During organizational change, this element is looked into as new skill sets may be
required from employees in order to match the companies new vision and operations. For
instance, if Aroma Ice-cream were to make organizational changes to the elements from
the cold triangle, then they may need to hire new employees to in order to make the new
plan work. An example of this would be, if they wish to extend their product base, and
are in need to research new markets, they would hire a marketing team to research and
push new products.

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Staff incorporates all the parts to do with the recruitment of employees, the training to
meet the new organizational change, how many employees are needed, and also the
motivation and reward schemes that may be put in place. (Ravanfar, 2015). This element
largely has impacts on the culture of an organization.

Style is simply the method of leadership that is taken on. The way a person manages the
organization and how they manage the organizational change. Usually it is involving the
top level of managers. For instance, when going through organizational change, a
company’s ethos may change which isn’t reflective on the management, so the
company’s new viewpoint may not be aligned with management, it would make changes
to the structure in order to accommodate the new management style required.

Shared Values, looking at Appendix 1, shows that it is at the heart of McKinsey’s 7-S
model. this is because it shapes the behavior and culture and is the common denominator
for everyone within an organization.

Key areas of change

When dealing with the first issue that was mentioned earlier, the key area of change
firstly would be the strategy, in accordance to McKinsey’s 7-S model. this is because, in
order to accommodate for this new market trend of health-conscious consumers, the sales
strategy must change. To appeal to the market, the products have to change, and for the
products to have to change, the company’s vision would also have to change. For
instance, Aroma Ice-Cream, a dessert supplier, focusses on luxurious desserts. To suit the
new market, managers would have to focus on creating a healthy dessert. This change in
strategic would not remain on the basic level of the product, however, would extend out
to the vision and the company’s ethos.

The issues for management that may arise from this would be the different in culture
within the organization. This is because, if they transition from unhealthy products, to
healthy products, there would be a clash in the culture that the people within the
organization are used to. Organizational culture stems from the idea the company
portrays itself to be which is then reflective on the people within an organization. SO, for
Aroma Ice-cream, switching from a luxurious and unhealthy brand to health brand,
means that the idea or reflection they want to portray to customers change, and as a
result, would mean the culture of the company changes.

Considering the second issue, a lot more has to be looked into and there are more forces
to go about organizational change and actually implement different changes to more of
the elements. Firstly, the strategy has to look into gaining a competitive edge over the
competitors. Looking at Aroma Ice-cream, since they have a factory in Spain and as
Brexit moves forward, it is inevitable that the strategy devised prior to Brexit will not
work after. This key issue means that Aroma Ice-cream would have to decide if it is
worth keeping the factory in Spain or possibly moving it elsewhere. This, naturally would
become a long-term plan as the it would cost them a lot.

The second element that would require change would be the structure. This is due to the
reason that, the different tasks daily, would be different. This means that, the structure in

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the way a company within the desserts industry operates prior to Brexit must change as
new regulations come to light.

The problems recognized for leading the change in this sense would be communication.
This is a vital element what comes under the structure change. If the change is not
communicated well to the people within the organization, then this could have a negative
reaction and would mean that the change process isn’t as smooth as it should be. What
should happen is that, there should be a clear communication line between the high-level
managers and the people that are next in line. This ensures information is being shared
accurately.

Having addressed both the issues from above, in terms of the 7-S model, and what
elements are required to change, issues would rise up for people who are leading
organizational change if the different elements that are being changed do not align with
the other elements. Furthermore, upon leading change, if only the cold triangle is aligned
and the warm square is not aligned, then the change would not yield any positive results.
This is because, as suggested by McKinsey, the different elements of the model are
linked together and are connected.

Conclusions:

The advantages of using McKinsey’s 7-S model is that it incorporates both the hard
elements and the soft elements and it is understood that the warm elements are mainly to
do with people. This is seen as an advantage as the interaction between people within an
organization determines whether or not the end result would be positive. Furthermore, the
shared values being at the center is appropriate due to the fact that this is the common
understanding within an organization. Adding to this, there is a great attention to the
strategy element as the way this is laid out, has an impact on the company’s overall
appearance and functions.

This model is also very comprehensive in terms of leading the change as it allows for, not
only the different categories that define the model, however, instead of leaving them
separate, they are interconnected which means, that there is a natural flow between each
element. This helps link each element easily.

In comparison with the Lotter’s 8-Step model, the 7-Smodel doesn’t provide a
consecutive method in which change should be implemented, rather allows for creativity.
This means that the when talking about organizational change and the different ways to
manage the change, there isn’t a set way of doing it and allows for creativity.

When looking at managing organizational change, different factors has to be considered.


Everything from the reason for change, to the what the outcome will be and how the
organization will be affected in the end. Furthermore, the ideas for leading change is to
create a sense of adaptability to a company. When dealing with change in an
organization, there would be internal factors affecting the outcome, such as the
organizational culture, and there would be different external factors deciding what sort of
changes will be made.

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Appendices

Appendix 1

(Ravanfar, 2015)

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References

Autoevolution.com, (2017).PEUGEOT models & history - autoevolution, [online]


Available at: https://www.autoevolution.com/peugeot/ [Accessed 7 Dec. 2017

Digital.nhs.ul, (2017). Statistics on Obesity, Physical Activity and Diet – England, 2017,
[online] Available at: http://digital.nhs.ul/catalogue/PUB23742 [Accessed 7 Dec.2017]

Mail Online. (2017). Amount of ice cream sold across the world falls by 2.6bn litres.
[online] Available at: http://dailymail.co.uk/news/article-4673252/Global-ice-cream-
sales-melting-away.html [Accessed 7 Dec, 2017)

Bloodgood, J. and Morrow, J. (2003). Strategic Organizational Change: Exploring The


Roles Of Environmental Structure, Internal Conscious Awareness and Knowledge*.
Journal of management, 40(7), pp.1761-1782

Aromaicecream.co.uk, (2017). Aroma Ice Cream :: Home. [online] Available at:


http://aromaicecream.co.uk/about/ [Accessed 7 Dec, 2017].

Ravanfar, M. (2015) Analyzing Organizational Structure based on 7s model of


McKinsey. International Journal of Academic Research in Business and Social Sciences,
5(5), pp.2-4.

Kotter, J. (2009). Leading change: why transformation efforts fail. IEEE Engineering
Management review, 37(3).

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