Unit 24: Understanding and Leading Change

LO1 Produce a comparative analysis of the different types and drivers of change in business

P1 Review a range of contemporary examples of organisational change and their impact on business operations.

Amazon’s Expansion into Physical Retail:

Amazon’s acquisition of Whole Foods in 2017 marked an important shift from completely e-commerce to physical retail. This alteration assisted Amazon in leveraging its logistics expertise to streamline grocery delivery, resulting in a more integrated shopping experience for customers. The effect on business operations contains the wants for the new supply chain strategies and enhanced inventory management systems, on the other hand boosting Amazon’s market presence and consumer reach (Perifanis and Kitsios, 2023).

Netflix’s Shift to Streaming:

Initially a DVD rental service, Netflix’s transition to streaming in 2007 revolutionised its business model. This company change needs significant investment in digital infrastructure and content acquisition. The effect was profound, Netflix became a global leader in streaming lessening its dependency on physical media and expanding its subscriber base. Operationally, this shift required advancements in content distribution networks and data analytics to enhance user knowledge (Islam, 2023).

Tesla’s Emphasis on Vertical Integration:

 Tesla’s choice to vertically involve its supply chain, containing battery production and software enhancement, has channelled its operations. By handling more effects of production, Tesla has lessened charges and enhanced product quality. This alteration affected the operations by requiring the development of new manufacturing procedures and closer supplier relationships, the other side directing to enhanced effectiveness and innovation in the electric vehicle market (Perifanis and Kitsios, 2023).

These examples show how strategic organisational variations can meaningfully impact business operations, driving development, innovation, and competence.

P2 Compare drivers for change and their influence on organisational change.

In the competitive scene of the fast-food retail chain business, several key drivers compel organisations like Domino`s Pizza to involve significant variations. Comparing these drivers highlights their profound influence on organisational alteration (Rui, Morteza Ghobakhloo and Figueira, 2023)

Technological Advancements

Rapid technological progress needs adaption, for Domino’s the initiation of driverless delivery and e-bikes represents a feedback to advancement in autonomous and sustainable technologies. These alterations aim to increase operational effectiveness, lessen delivery times, and appeal to tech-savvy customers. Technology-directed alteration often leads to the re-engineering of business procedures and the want for new talents set within the workforce.

Competitive Pressure:

Intense competition particularly from rivals like Pizza Hut and Papa John’s, drives Domino’s to change and differentiate its facilities the loss of market leadership to Pizza Hut in 2022 underscores the emergency to regain competitive advantage. This competitive pressure affects Domino’s to adopt unique delivery methods, that can redefine consumer expertise and reestablish market dominance (Rui, Morteza Ghobakhloo and Figueira, 2023).

Customer Expectations

Evolving customer preferences for suitability, speed, and sustainability direct organisational alteration. By introducing driverless delivery and e-bikes, Domino’s purpose is to meet these expectations, increasing customer gratification and loyalty. Changes driven by customer demands typically result in alterations to facility delivery models and amplified focus on customer-centric policies.

Each of these driver’s technology, competition, and client expectations, exerts an important influence on organisational change, determining the strategies and processes of businesses like Domino’s Pizza (Wijethilake, Upadhaya and Lama, 2021).

M1 Analyse drivers for change and the types of organisational change they have affected.

Technological Advancements:

Driver:

Technological progress, mainly in autonomous vehicles and electric bikes, requires innovation to stay modest.

Change:

Introduction of driverless delivery and e-bikes (Geissdoerfer et al., 2022)

Impact:

This technological change affects operational procedures, needing new infrastructure, logistics management, and worker training programs to manage advanced systems. It also affects service delivery models, increasing effectiveness and consumer experience.

Competitive Pressure

Driver:

The intense rivalry between Pizza Hut and Papa Jones has directly to a loss in market leadership

Change:

Strategic innovation to recover competitive benefit.

Impact:

This competitive driver triggers transformational alterations, prompting Domino’s to redevelop its delivery service. It contains reexamination and redesigning business strategies, marketing approaches, and consumer engagement practices to differentiate from competitors and retain more consumers (Geissdoerfer et al., 2022).

Customer Expectations

Driver:

Rising demand for faster, more suitable, and eco-friendly delivery choices.

Change:

Adoption of innovative delivery methods.

Impact:

This customer-directed change leads to adaptive alteration inside the company. Domino’s to alter its service delivery to meet new customer priorities, making ensure higher satisfaction and loyalty. It also influences product enhancement, marketing strategies and customer service protocols.

By understanding and communicating these drivers, Domino’s can efficiently navigate the competitive scenery, align with market demands, and attain sustainable growth (Wijethilake, Upadhaya and Lama, 2021).

LO2 Evaluate the impact of change on organisational Behavior

P3 Analyse how leadership and individual behaviour in organisations can be affected by the change.

Decision-Making and Strategy:

Change most of the time needs leaders to make swift and strategic choices to navigate the new landscape efficiently. A leader needs to adapt their decision-making procedure, possibly shifting from a centralised to a more coordinative approach to project innovation and responsiveness. The effectiveness of leadership in between the change affects company alignment and workers` buy-in, needed for successful implementation (Karneli, 2023).

Communication and Vision:

Clear, reliable communication is vital to transport the vision and rationale for overdue changes. Leaders must articulate the assistance and address concerns to reduce struggle and uncertainty among employees. Strong communication recovers trust and transparency, which are essential for maintaining morale and motivation during transitions.

Individual Behavior Impact

Change challenges individuals to adapt to new procedures, technologies, and expectations. Workers need to develop suppleness and pliability to navigate doubt and maintain productivity. The ability to familiarise is prejudiced by the provision and training provided by leadership, creating a feedback loop between leader actions and employee behavior (Karneli, 2023).

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FAQs

What is Unit 24: Understanding and Leading Change about?

It’s about spotting why change is needed, picking the right approach, and leading people through it with a plan, measures, and fair practice.

How long should the assignment be?

Follow your centre’s brief. Most submissions sit around a report length with appendices; focus on quality, clarity, and evidence rather than word inflation.

Do I have to use a specific change model?

No. Choose one that fits your context, apply it properly, and justify why it beats the alternatives.

What data should I include?

Baseline KPIs, cost/benefit estimates, timeline, risk log, and real stakeholder insights. If data is limited, state assumptions and test them.

How do I show leadership, not just management?

Demonstrate influence strategies, honest communication, attention to morale and capability, and how you’ll sustain the change after go-live.