Change management is changes in strategies,technology and processes other methods so that firm can work efficiently in organization (Aslam and et. al., 2016).. It is crucial that firm can adopt these changes so that they can earn more revenues and can give strong competition to other firms. This leads to success and growth of firm. Report discuses about Aldi firm which is a retail company. It was found in 1913 in U.K. Project explains about the importance of white water metaphor and evaluation of planned and unplanned approach to changes. Assignment discusses about reasons of shifting of calm to white water, business strategies and external factors such as PESTEL analysis which can impact the business. Report describes about relevant theories and its implication for humans resource department and giving suggestions to HR management so that they can give relevant strategic approaches to handle these changes.
1)Planned and unplanned approaches to changes
Change management are the changes in process and techniques and other structure in firm so that they can earn more profits. By adopting this change, firm can continuously make modifications in techniques and other processes. It is crucial so that they can survive in business. Some employees do not easily adopt changes but managers have to explain benefits of these modifications in firm. Through this they agree with managers and can work in an efficient and effective manner. Hence firm can gain profits in less time.
Concept of white water and calm water
Calm water are periodic changes in company while white waters are continuous changes in firm structure plans and policies so that they can earn their activities and tasks properly and efficiently. Through this firm can work efficiently and effectively. It also leads growth and development of firm.
Aldi wants to bring such changes which can give competitive edge on others so that they can earn more revenues. It can perform automatic billing counter in which they have all information related to billing of receipts and payment. Managers can evaluate all information related to receiving of goods by customers and payment to them etc. They need less employees as all work is done by computers (Beech and MacIntosh, 2017).
Aldi is using white water metaphor as it can make continuous changes in firm. They can bring computers and hence less employees which helps in increasing process of delivery of goods to consumers. It helps in increasing satisfaction level of all users (Boggs and Van Baalen-Wood, 2018).
Importance of white water approach for Aldi company-
Increasing delivery process: As the company is using automated processing system hence they can speed up process of delivery system and it can increase the satisfaction level of all users. Through this it can earn more revenues and can increases the market share.
Increases revenues: It increases the revenues as company is using automated billing system. So hence they can increase their profits. Through this they can expand their activities and operations in many nations. Thus it can easily capture many users and can enhance the market share.
Planned approaches to change management:
Kurt Lewin Model: It us a model through which firm can bring continuous changes in firm. Hence Aldi can use this model so that it can bring continuous modifications in technologies in firm. 3 stages which are used by Aldi are-
Unfreeze: In this HR manager of company can guide an support all employees so that they can work efficiently and effectively. Through this they are motivated and they can easily adopt the changes due to automated billing system. They can be explained that they are giving training so that they can handle all computer system and can learn various methods and processes for billing and evaluate records of customers. Hence they can perform well.
Change: In this manager can interact with all users and solve their problems regarding use of computer system. Through this all workers can adopt the changes and can know different ways to use computer and techniques of billing and make payment through computer to users. Hence these changes can become done in company.
Refreeze: In this changes are implemented by Aldi. Through this they can increase the delivery process of goods. It can also increase the level of satisfaction to customers. Through this staff members can feel convenient and they feel comfortable. This helps in improving performance of all employees also (Braveman, 2016).
So Aldi can easily adopt the continuous changes through Kurt Lewin and can increase level of satisfaction of all users. Hence through this change they can increase profits.
Reasons of choosing Aldi:
Aldi is chosen as it has good and specials foods and products. Its taste is also delicious so hence it can satisfy more users (Certo, 2018). Its store has a good design. Hence as a result they can attract many users. It providers products which are healthy according to users and hence this is also plus point of Aldi. Through this this can satisfy all users and can capture many customers from all countries.
Changes made in previous years:
Changed Logo: Aldi had changes its logo. Due to this, it gain much popularity over previous years. It is not famous in U.K. But it has capture many users outside the U.K. Also. Due to this it can increase the market share.
Low cost model: It ha bring low cost model in which it has reduces the process of all the products. Through this it can increase the revenues and can enhance the market share. It can also maintain competitive edge on other firms and companies. Hence as a result Lidl and Tesco has also reduce its prices.
Accepting credit cards: Aldi previously accepted the cash cards. But to increase the sales now it can also accept credit cards. Customers can purchase the goods by paying through credit cards. Hence through this they can increase the sales and can earn more profits as compared to previous years.
Healthier check lanes: It has also offered healthy check lanes so that customers can easily evaluate products which are healthy and beneficial to their health. Through this also they can capture many users and can satisfy many users.
There are many different challenges which are faced by Aldi company. They are
Reducing sales in summer season: It has reduces the sakes in Aldi company. As in summer season it cannot much customers its growth in sales are less as compared to competitors such as Tesco etc. This is major challenge for Aldi company. So hence a result it cannot capture many users and this is the biggest reason that it has earned less profits. Through this when it has less revenues so hence it cannot start new technique that is automation processing system. As a result it can hamper the new techniques and methods through which it can bring changes in firm.
Increased prices: Through fall in Sterling it has a huge impact on the Aldi company,. As they majorly receive products from Europe. So hence as a result it results in reduction in prices of goods in Europe (Doppelt, 2017). So hence they cannot recall goods and products from Europe as the price of all healthy goods and products are expensive. So hence as a a result it has less products other than competitors. This results in less sales and profits of company. Through this it results in decreasing sales and profits. Thus as a result it cannot receive much resources and computers and hence thus has a negative impact on change (Higgs and Dulewicz, 2016). They cannot take computers as they are costly.
Implications of White water:
Company continuously change in processes: It can continuously change in the process and techniques through which they can change all activities. As they have bring automated processing. So hence they have to give training to all employees. It also affects process as all work is done by customer. So hence it increases the delivery process and they can satisfy the customers a lot.
Moving out of comfort zone: As they are bring continuous change that automated processing in which they are bring computers and hence it increases the process of delivery so hence they can increases the sales. They are moving out of comfort zones as they cannot capture much customers previously but now it can increase the satisfaction level of all users.
2)Business strategy and external factors which can affect business
Aldi uses white water approach as it has to bring continuous changes in the approach so that they can change their process,technologies and other tasks in business. Through this they can use computers and they can increase their delivery process and can easily satisfy all users. Manager also guides and supports all employees so that they can interact growth all employees and thus they can motivate and give training to all employee so that they can perform billing in computers.
Business strategies- It has different business strategies so that the can bring changes.
Pressure on competition: It mainly focuses on creation those plans and policies so that they can give competition to other firms. It has to maintain good relationship with suppliers and employees so that they can bring changes in the firm. By motivating all employees and expanding about benefits of such change it can guide and increase energy level of employees. Through this they can easily start automation processing system in which all work including billing can be done by computers and employees also adopts such change and try to learn different methods to bill for users (Hillson and Murray-Webster, 2017).
No frill: Aldi want to create such a strategy so that it do not waste the materials and resources. It also helps in saving the time and costs. This strategy helps them in bringing new changes such as Automated processing which helps in reducing the wastage of save and costs. Through this strategy they bring this change in firm (Hughes, 2016).
Internal factors: There are various internal factors which can affect the changes done by Aldi-
Employees: Aldi's employees can negative impact on changes done by Aldi. As through use of automated processing system it decreases the no of employees or they are to be given proper training so that they can do billing process and other functions in computer efficiently and smoothly. Mangers have to provide proper training to all of them so that they can learn various new methods. It is crucial otherwise they cannot easily adopt changes.
Suppliers: They can receive bulk goods from suppler if they have good relationship with supplier. If they give fair prices to them then they can receive many goods in bulk. Thus it do hampers their work and other process and techniques through which they can bring new change that is automated processing system. So it has positive impact on this changes.
External factors- PESTEL analysis
It includes different external factors which can affect Aldi in different ways (What is a PESTEL analysis, 2017). Company has to consider these changes so that they can bring such changes in firm.
Political factors: There are various conflicts and other problems in globe. But Aldi's majorly stores are situated in European countries and other countries in which there are no conflicts and issues .So hence they cannot affect processes and new changes that is starting of automated processing in any manner. Hence they can easily bring changes firm.
Economic: After Brexit, prices of all goods haver increased and pound have reduced. So hence they can sell goods at lower rate as compared to other competitors. Thus they can increase their sales and hence they can also easily bring changes that is starting of automation processing in firm.
Socio-cultural: It has paid higher wages to all its staff members so hence they can increase their living standard. Thus they can give different benefits to many people and thus contributes to society (Jalagat Jr, 2017). Through this all people respect Audi and they purchase goods from Aldi. Hence through increasing demand and increasing sales they can easily start automated processing system so that they can increase their delivery process and can increase satisfaction level of all users. (Knight, 2017).
Technological: Through increasing and advanced technologies used in market and by other competitors Aldi has to adopt highly advanced tools and techniques so that they can survive in market. Thus to increase their profits and to set different from competitors they want to bring new changes in firm so hence they have started using automated processing system in which all work in done through use of computers and it increase the billing process of manufactures. Through this they can easily increase their sales.
Environmental: If company takes products from British produces then it can increases their standard of living. Through receiving of products from producers then it cannot hamper their work and other process and techniques. Thus it helps in saving the time of Aldi. Through this they can easily start automated processing system.
Legal: In some products there are horse meat .So hence as a result it have negative impact of image of Aldi on the people. So hence it is difficult for firm to start automated processing system. As people have perception that they do produce good quality of products. So hence it is difficult for company to bring this change.
3)Implication on relevant theory on humans resource development:
There are different theories used by Aldi so that they can create necessary plans and strategies to deal with the changes. It also helps the company to easily adopt the changes. Different theories and implication used by ALDI are -
Management trainee programme: In this all employees need to be given proper training to all employees so that they can perform in an efficient manner. Manager can organize online training programmes so that all employees can learn various methods and technologies in computers. Through development of these programmes it can increase the necessary skills and techniques so that they can perform better and can improve their performance. Through this all employees can easily perform, all wok related to operations and activities in computer. Hence as a result any company can increase the delivery process of goods to users. Hence they can easily increase their profits (Lawal and et. al., 2016). As a result any firm can bring competition to other companies. Company can apply this theory and can increase their profits and can enhance their market share.
Implication: By applying management training programme Aldi can create various plan and different strategies so that they can provide training to all staff members of Aldi. So hence HR manager have organized a training programme in which they they can provide training to all employees. (Linton and Dwyer, 2016). They can organize various online seminars and programmes so that all employees can learn different techniques and procedures in billing and other operations which help them in selling different products. Through receiving of proper and efficient training, all employees can have knowledge of billing procedure in techniques and they can also learn different techniques and methods of creating records of goods and customers. Hence they can increase the billing process as all employees can increase their delivery process and can do billing and operations efficiently and effectively.
360 degree review: In this performance of all employees are evaluated so that they can perform better. It is crucial so that they can improve their performance. They can also enhance their skills and other techniques as manager gives feedback by evaluating their overall performance. Through this staff members can perform all tasks and operations related to computer in a better manner. Hence it can increase the process of delivery. As a result they can increase their capability and can handle all tasks and operations in an efficient manner. So hence it results in enhancing skills and potential of all workers. So it can increase the delivery process and other activities through which goods are sold to consumers. Thus Aldi can gain more revenues and can increase the market share.
Implication: Human resource department can create various methods and techniques so that they can evaluate performance of all employees. It is using 360 degree review in which over all performance of all employees are received. It can put camera so that they can evaluate the activities and tasks related to selling and other operations in store. Through this they can weak points of all staff members so that they can feedback to improve to improve their performance. They can also hire different experts and consultants so that they can give suggestions to improve their performance. While organizing training programmes related to computer operations it has to follow govt rules and their legislations. Through giving suggestions to all employees can increase their potential and capabilities (Renz and Herman, 2016). They can easily learn different methods of billing and other operations related to selling and other activities in computer. Hence they can easily bring this change in firm.
Strategic approaches used by Aldi to deal with changes are-
Technology: They are using highly advanced techniques and tools such as high computers and latest laptops so that they can increase the process of delivery (Seale and Cross, 2016). Through using of latest tools and techniques they can increases the billing and other operations of selling goods and receiving payment. Hence it can more goods can be sold through using of this technique.
People: In this manager training programme is organized so that they can give training to all employees. 360 degree review is used in which they can evaluate performance of all employees. Managers can check their performance and hence give suggestions so that they can improve their performance and increases their skills. Through this they can perform better and increases the delivery process through automated processing system.
Structure: It can use a structure in which less employees are there. Through this it can give training to employees in a better and efficient manner. Hence all staff members can easily learn various ways in operating different activities (Stöckl and Caseau, 2017). Through this firm can easily perform functions related to billing and other tasks. Thus it can earn revenues and increase the market share.
It can be concluded from above report that change is essential in every business. Through this firm can enhance their revenues. White water approach is important in company. Business strategies and internal as well as external factors which can affect change in firm. Management training theory is applied and their implications. Different strategic approaches in company to deal with changes
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