Management of Organisational Change

Management of Organisational Change

The management of organisational change is very important for the long run success and sustainability of the business. Business that has loyal workers will have the process of change management easily adopted. People of the organisation may be resisting change that will pose threats for the organisation. The highly competitive industry and dynamic environment requires the organisations to manage change properly. There are many theories and approaches developed by the hard work of researchers that have developed guidance for the organisation for adopting the appropriate practices that would increase the chances of the organisation to manage change in an effective and efficient manner (Taylor, P. & Hirst, J. (2001).

The process of change management involves changes in the direction, capabilities and structure of the organisation (Moran & Brightman, 2011). The study conducted by Burnes (2004) states that the change is an inevitable thing that will take place in the life of an organisation having an impact on the operational and the strategic level of the business.

The organisation should rigorously research about the future of the business so that proper planning is conducted that will enable the organisation to achieve the objectives of the business. The main emphasis was laid around the fact that the change in the organisation cannot be just focused without the organisational strategy being considered. It is very important that the business has aligned the objectives of the employees with the organisational objectives to increase the chances of success and growth. Businesses that are not effectively running have identified certain issues that restrict them to adapt to the changes that are essential for the long run success and growth of the business.

Graetz (2000) has identified that the information revealing about the increasing trend towards globalisation, the deregulation, growing knowledge of the employees, changes in social and demographic trends all over the world have led to a change in the perspective of the leadership of the organisation to consider change management very important. The advancements around the world regarding the trends and the globalisation have not been ignored by the business organisations.

Change management is crucial for businesses as there are many factors that have to be considered. Information not shared properly with the employees of the organisation so it will not motivate the employees to contribute towards the efforts of the organisation to manage change effectively. The work of Balogun & Hope (2004), have shared the results of about 70 percent organisations that are not capable of successfully implementing change in the organisation.

There is work conducted by the people in the past regarding change management. It has been identified that the change that takes place has been equal to the level of change in the environment of business in the current time (Balgon & Hope, 2004; Carnall, 2003). The change that takes place in the organisation has been considered to have all shapes, forms and sizes.

There can be drastic changes in the structure of the organisation, the product line can be diversified further and the number of employees needed for the different positions in the organisation can also change with time. The high level of competition in the industry has created certain challenges for the organisations to acquire the best possible talent in the industry to support the organisation. The information that is available for the organisations is very important for the people to improve the operations of the business in the long run (Kotter, 1996).

The change management is a crucial factor for the business organisations because that is the requirement for businesses to stay in competition. There has been a high level of focus on the importance of the management of change in the organisation but there is less empirical research conducted to support the topic (Guimaraes & Armstrong, 1998).

The work of Senior, (2002) has identified the three categories that are focused from the perspective of the characteristics of the change. The important concepts like total quality management (TQM) and the business process re-engineering (BPR) along with other initiatives for the change have not been focused very much. The main area of focus for the organisation is the sustainability and the long run growth of the business so the management of change is crucial (Pettinger, 2004).

The work of Rieley & Clarkson, (2001) has clarified that constantly changing organisations are not performing well because it is very difficult to manage change that is taking place regularly. The routine work performed by the employees of the organisation allows them to learn from their mistakes and specialise in the tasks they perform so it is difficult to adapt to new changes in the organisation. If the business has the ability to identify methods that would enable the organisation to manage change effectively that will be fruitful.

Luecke, (2003) states that changing environment has allowed employees to mould with the surroundings to adapt properly to the business changes to be able to survive in the competitive industry. The work of Nelson, (2003) has clarified that the change in the organisation does not occur in a steady manner as the level of change that is experienced varies with the nature of the business, changes in technology and the degree of competition in the industry. Many organisations have developed proper plans and implemented the effective strategies developed by skilled managers to adopt change and manage it properly.

Grundy (1993) has been able to identify that the process of change can be manipulated by the organisations by dealing with changes in a proper way by ensuring that the incremental and slow change is taking place at the right time as the organisation prepares the required human resource and other resources for the change management. When the level of change is viewed from the perceptive of the cause of change then Bamford & Forrester, (2003) have identified several factors that the organisation toward the process of change. The planned process of dealing with the change that is going to take place in the organisation is the appropriate strategy as it allows the business to identify the most appropriate practices that will guide the organisation for dealing with the change effectively. If the change is taking place that will result the organisation to pass through different states of changes so it is crucial to deal with it properly to shift the business from an unsatisfactory place to a desirable state (Eldrod & Toppett, 2000).

The planned change approach was developed by Lewin, (1946) having the background in the study of intergroup and interpersonal relationships in the community. According to the study the individuals have to understand the importance of three main steps for the management of change that include the level of unfreezing present, moving to the new level and then refreezing the current level. It is a good way to discard the previous information to be open to understand and properly manage the new information that is being shared with the employees.

The work of Bullock & Batten, (1985) has been highly appreciated regarding the management of change for the organisation as they have developed a four phased model for the planned changes that need to take place in the organisation that involve the exploration, planning, action and integration. The model has laid major emphasis on the process of change that allows the organisation to move from one place/state to another that enables the managers or leaders of the business to adapt to certain changes that are very important for the business.

Though the model has gained respect of the researchers in the past but has also faced criticism for the model being focused on the incremental changes taking place at the small scale level, condition that is considered is that organisations are operating in constant environment and movement takes place from one stage to another. The process of change that takes place in the organisation is not taking place in a step by step or predefined manner so it is crucial that effective planning is done to incorporate the needs of the stakeholders of the business in the change management process so it can take place in a successful manner.

The proper manner to adapt to changes for the business organisation is to not take the concepts of change in isolation rather develop a set of integrated steps that can ensure that the performance of the business will be good. The information that is being shared by the employees for developing a strategy for the effective management of change is crucial. If the leadership allows the employees to have a say in the decision making process that will increase the motivation, commitment and loyalty of the employees of the business.

The importance of sincere employees that are willing to support the organisation in good and bad times cannot be ignored so it is the responsibility of the human resource management department of the organisation to ensure that the employees are very much satisfied with the performance of the managers (Dawson, 1994). The growth and career development opportunities in the organisation should be developed for the welfare and growth of the employees. As the skilled workforce of the organisation will feel comfortable with the practices of the organisation there are higher chances that such businesses will be able to perform well in the industry.

Management of Organisational Change
Management of Organisational Change

To properly manage the change in the organisation by dealing with high level of uncertainty and the complexity a business must emphasise on the development of the open learning systems so that employees are acquainted with the skills, experiences and abilities that are crucial for the growth, expansion, survival and sustainability of the business (Dunphy & Stace, 1993). There are no proper rules that have been developed for guiding organisations properly to deal with the process of change properly but still it is imperative that business organisations continuously work on strengthening the business procedures and operations in a manner that will ensure the proper flow of operations enabling the business to cope with change effectively (Pettigrew & Whipp, 1993).

Conclusion

Change is inevitable in the dynamic environment, globalisation and high degree of competition in the industry. It is imperative that organisations develop proper plans for dealing with change in an effective manner. The business organisations that are dealing with the change properly have achieved high level of success as they are able to guide the employees in a successful manner towards the achievement of the goals and objectives of the business. There are many theories and approaches that are developed for the guidance and direction to be provided to businesses but it depends on the nature of the business and the industry in which the business is operating to adopt the proper procedure. The successful businesses emphasise on motivating their employees so that they can adapt to changes properly and perform well in the business environment.

References

Balogun, J. and Hope Hailey, V. (2004), Exploring Strategic Change, 2nd edn (London: Prentice Hall)

Bamford, D. R. and Forrester, P. L. (2003) ‘Managing planned and emergent change within an operations management environment’, International Journal of Operations & Production Management, 23(5), p. 546–564

Bullock, R. J. and Batten, D. (1985), It’s just a phase we’re going through: a review and synthesis of OD phase analysis’, Group and Organisation Studies, 10(December), pp. 383–412

Burnes, B. (1996) ‘No such thing as a “one best way” to manage organisational change’, Management Decision, 34(10), pp. 11–18

Burnes, B. (2004) Managing Change: A Strategic Approach to Organisational Dynamics, 4th edn (Harlow: Prentice Hall).

Carnall, C. A. (2003), Managing Change in Organisations, 4th edn (Harlow: Prentice Hall)

Davidson,M. C. G. and De Marco, L. (1999) ‘Corporate change: education as a catalyst’, International Journal of Contemporary Hospitality Management  , 11(1), pp. 16–23.

Dawson, P. (1994) Organisational Change: A Processual Approach (London: Paul Chapman).

Dunphy, D. and Stace, D. (1993) ‘The strategic management of corporate change’, Human Relations, 46(8),pp. 905–918

Edmonstone, J. (1995), ‘Managing change: an emerging consensus’, Health Manpower Management, 21(1),pp. 16–19

Eldrod & Tippett, (2002), ‘The “death valley” of change’, Journal of Organisational Change Management, 15(3), pp. 273–291

Graetz, F. (2000), ‘Strategic change leadership’, Management Decision, 38(8), pp. 550–562

Grundy, T. (1993), Managing Strategic Change (London: Kogan Page)

Guimaraes, T. and Armstrong, C. (1998) ‘Empirically testing the impact of change management effectiveness on company performance’, European Journal of Innovation Management, 1(2), pp. 74–84

Kotter, J. P. (1996), Leading Organisational Change (Boston, MA: Harvard Business School Press).

Luecke, R. (2003), Managing Organisational Change and Transition (Boston, MA: Harvard Business School Press)

Moran, J. W. and Brightman, B. K. (2001) ‘Leading Organisational Change Career Development International, 6(2), pp. 111–118

Nelson, L. (2003) ‘a case study in Organisational Change: implications for theory’, The Learning Organisation, 10(1), pp. 18–30

Pettigrew, A. M. and Whipp, R. (1993), Managing Organisational Change for Competitive Success (Cambridge: Blackwell)

Pettinger, R. (2004), Contemporary Strategic Management (Basingstoke: Palgrave MacMillan)

Rieley, J. B. and Clarkson, I. (2001), ‘The impact of change on performance’, Journal of Change Management, 2(2), pp. 160–172

Senior, B. (2002) Organisational Change, 2nd edn (London: Prentice Hall)

Taylor, P. and Hirst, J. (2001), ‘Facilitating effective change and continuous improvement: The Mortgage Expressway’,Journal of Change Management , 2(1), pp. 67–71

Other Relevant Blog Posts

Hofstede and Trompenaars

Organizational Change Management

Change Management British Airways

I hope you enjoyed reading this post on organisational change. There are many other titles available in the business management and MBA dissertation collection that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.

Community Leadership Dissertation

Community Leadership

Community leadership is a vital consideration by most organization management. For an organization to survive in today’s ever changing environment, both internally and externally, it has to be ready to respond to these changes appropriately. The module of community leadership focused on leadership theories based on learning efforts to breed leaders who will be responsible in creating, formulating, and making decisions that develop not only the company but also the social well being of the community dwellers.

According to (Stacy, 2011), an organization moves will experience difficulties in its entire operation; production, processing, procurement, supply and sale if its leadership does not incorporate a culture of community leadership in its managing. For example, an organization should make efforts to involve other companies in the industry, its supply chain, its employees behavior both at work and home as well as all its stakeholders towards actions that the planets important resources, improving the surrounding physical state as well as dealing with the  social problems of people living around that environment such as poverty.

According to Stacey (2011), community leadership starts from the down level of micro organizational behavior. It deals with individual employee’s behavior examining what motivates or de motivates him. Micro communities also looks at how an employee’s differences in the ability affects his productivity and how they view their work as well as the effect of the perception of their job on their behavior(Stacey, 2011). She concludes that Different personality features of employees have a significant impact on the organization just the same way different people have on each other.

A leader should also consider the Meso community of the organization.  According to Stacy (2011), meso organizational behavior deals with people’s behavior when working together or general human behavior in groups. She emphasizes that knowledge of meso organisational behavior enables a leader to determine a combination of skills among group, members that raise their performance, what kind of socialization motivates staff as well as how managers can determine the potential leader when dealing with promotion.

Community Leadership
Community Leadership

Macro community is aimed at comprehending an organisational behavior on the entire organization and the effects as well as the relationship between the company and the outside environment, (Schneider & Somers, 2006). They argue that the concept of macro organisational community is based on such disciplines as: sociology, which deals with the structure, organisational relationship as well as the social status; anthropology, which deals the cultural influences of both the organization and outside community as well as symbolism; political science, which deals with theories on power, mediations as well as conflict resolution and; economics, which balances competitiveness and efficiency. They further hypotheses that effective macro organizational practices can enable management to answer questions related to; power distribution in the company and how to maintain it, conflict resolution, strategies that can be used to coordinate work activities, how the company will be structured to control its internal and external environment (Schneider & Somers, 2006).  The indicate that effective macro organisational leadership can be manifested in an organization that has en effective coordination and cooperation in its departments and groups,  the application of both formal and informal ways in interorganizational communication as well as effective relationship between the organization and its specific relation to the environment .

Lichtenstein, B.B. et al. (2006) argues that community leadership should not be based on the view of pure formal organizations or even community organizations but should rather be based on a combination of the two which results to efficient management that balances the two sides, thus enabling organizations to not only achieve their goals but also operate in a sustainable environment. He however notes that community leadership may be hindered by several factors such as: higher resources needed to develop and maintain community projects and programs, especially by small organizations; hindrance by some communities for organizations intended or commences project or service delivery and; displacement of the growth paradigm with globalization paradigm.

Uhl-Bien & Marion (2009) hypothesizes that the culture of an organization is vital when dealing with community leadership. The culture of an organization does not only reflects on attitudes, philosophies and values but also  influences  the manner in which the organization’s staff interact with the management, between themselves and other stakeholders in and out of the organization. Since community leadership has to address this interaction, it is vital for the organization to instill a culture of responsibility to the external factors of the organization on in its staff.

According to Uhl-Bien & McKelvey (2007), in community and leadership, various teams, programs, and projects should be created in order to drive the different agendas of the company to success. Sustainability teams should be created to enhance implementation, execution, and completion of started projects and programs. Creating teams of employees committed to different organisational projects and initiatives is a vital method of creating synergy, speeding implementation, and enhancing team spirit. These sustainability teams represent different organisational departments such as production, sales and marketing, supply chain, as well as customer care thus enabling the organization’s balanced relationship to the external environment.

References

Lichtenstein, B.B. et al. (2006) ‘Complexity leadership theory: an interactive perspective on leading in complex adaptive systems’, Emergence: Complexity and Organization, 8 (4), pp.2-12.

Schneider, M. & Somers, M. (2006) ‘Organizations as complex adaptive systems: implications of complexity theory for leadership research’, The Leadership Quarterly,17 (4), pp.351-365.

Stacey, R.D. (2011) Strategic management and organisational dynamics: the challenge of complexity. 6th ed. Harlow: Pearson

Uhl-Bien, M. & Marion, R. (2009) ‘Complexity leadership in bureaucratic forms of organizing: a meso model’, The Leadership Quarterly, 20 (4), pp.631-650.

Uhl-Bien, M., Marion, R. & McKelvey, B. (2007) ‘Complexity leadership theory: shifting leadership from the industrial age to the knowledge era’, The Leadership Quarterly, 18 (4), pp.298-318

Other Relevant Blog Posts

Leadership Styles

Effective Leadership

Leadership Skills Effectiveness

I hope you enjoyed reading this post on community leadership. There are many other titles available in the business management dissertation collection that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.

Brexit and The European Union Dissertation

Brexit and The European Union

The year 2016 is going to be remembered for long years to go for the historical term “Brexit” that meant Britain exiting from European Union. This possibility aroused since 2007, under the article 50 of treaty of European Union under European states. The final exit decision took place in June 2016 under the referendum where the votes in favor of leaving EU were 51.9%. Though there were many reasons that lead to Brexit, but some of the economic aspects are worth mentioning.

The people of Britain wanted self government system back that had existed hundreds of years ago. There were certain reasons that British citizens wanted to exit from European Union and thus held general elections to get rid of the government. The main issue behind this exit decision was that being under European Union made Britain feel like being ruled by a foreign power where they have no rights of taking their own decisions (Dagnis Jensen and Snaith, 2016). One of the key economic impacts is that Britain had been facing trade barriers under the European Union that could be well managed by this exit decision. The market prices for EU are much higher than the world market prices and that has been affecting the economy of Britain in terms that the country involved in producing more of the products that were worst and less of those it was best in producing. Furthermore this also led the customers to pay higher amounts due to tariff and trade policies of EU and thus the exit from it was the much significant decision (Weiler, 2015).

Brexit European Union
Brexit European Union

Figure 1: Income inequality in UK

Figure 1 above describes one of the key economic reasons why Britain chose to leave the European Union is inequality in Income. It describes that though the overall European economy was doing well and had larger benefits and shares, still these benefits are not being felt by population in an even and justified manner.

After this exit, the barriers both tariff and non- tariff on trade could be removed from UK that were being imposed upon by EU till now. This will in turn benefit the customers and raise their living standards due to larger decrease in import prices. In contrast to this there are certain arguments against this decision of exit of Britain from EU (Boulanger and Philippidis, 2015). The key UK producers could determine that the prices that they would get in the free market would be different they used to get inside EU, in fact it would be lesser.

The products they sell outside are no different they sell inside EU but the protection of customs union premium provided by EU would be lost that would affect these producers. It can be concluded from the above statements that the customers would be the people in benefit from this exit decision and also those firms that are willing to buy the products at the world prices, whereas the producers within the union would be disheartened as they would have to lose their share of premium under the European Union. There are further arguments describing that after Brexit, UK may opt to trade under World Trade Organization (WTO) policies (Dhingra, Ottaviano, Sampson and Reenen, 2016). In such case it would not be able to get benefits of tariff free trade as it had, being under the membership of EU. Further this would also support the companies in halting the inflow of less skilled workers from EU. It would also provide relaxation in migration policies and provide ease to the highly skilled immigrants from EU and non- EU countries to work.

Another economic perspective towards this decision of Britain is the gain that the customers and firms would have while balancing the resources and allotting them to industries which are efficient and removing from that are less or inefficient (Oliver, 2016). The key economists of the country also estimate the gain in trade of Britain after this exit to 4% rise in GDP. Despite of this there are arguments with risks of loss in job and foreign direct investment. It has been argued that the foreign investments would be reduced but it has neglected the fact that FDI is just due to better returns in foreign capital and thus the countries can invest, just the sectors would change where there are free trade policies. Further with the investments in new sectors, the jobs will also arise in those, thereby fulfilling the loss of jobs created in the European Union protected sectors.

After the result of referendum on Britain exiting EU, many economic, political and financial impacts are most likely to be seen. It would be not new and surprising to know that after the decision, London is to face a number of financial issues that would further have an impact on overall economy of the country (MacShane, 2015). The very first impact that could be seen in London would be loss of jobs. In making the decision of exit from the European Union, the future of the city of London has been one of the key concerns.

The government of London will have to involve in effective strategy formulation to manage the possible financial and economic effects of this referendum. There are possibilities of clash in market with the change in currency values that will have an overall impact over London and its market. However, it is being argued that the city will remain as the key financial centre of the world and will be successful in managing the “Brexit” situation as it has already undergone such crisis situations during the world wars too (Barrett and et.al, 2015). While London was within the European Union, it had been enjoying the title of world’s important financial centers which is now likely to get affected by various policies and regulatory aspects.

There are number of companies that have already announced that with this decision of exiting from the European Union, they would be moving their employees out of London. J.P. Morgan also in this context said that it would be relocating around 4000 of its employees out of Europe. There are many banks outside the nation, like from US that have been trading in London as to escape from the restrictions that exist outside the European markets (Swinbank, 2016).

Similarly with the news of Brexit, Deutsche Bank also said that it is going to relocate its employees. The effects of Brexit decision are to be studied for London, as it is not only the financial centre of Europe but has topped the list of world’s best city to do business due to fewer barriers. Therefore this decision will definitely be affecting its title and the overall business economy. There are many businesses dominating in London like banking, mortgage brokers, real estate firms and the overall financial industry that is much likely to be affected with this referendum. Furthermore, there are cities in EU like Paris, Frankfurt, Amsterdam and Dublin that would be most benefited with this change and have prospective of becoming the new London for the world markets (Springford and Whyte, 2014). The overall situation can also be understood with the concept of Passporting with context to EU that describes that all the European Union based financial institutions can sell their services without getting the approval of regulator.

Further after the Brexit, every such firm would need to get regulatory approvals on local basis that is a key factor driving their decision to move their business out of London. Passporting is one of the key features that have led to the success of the banking industry with EU nations due to ease of cross border transactions and investments. After this decision, London would need to develop a new regulator that would not only require cost but would also involve authentication to develop trust among the various business firms to rely upon (Danielsson, James, Valenzuela and Zer, 2014). Further authorization of new regulators would also take considerable time to establish itself that will bring a change in the overall financial and economic status for London for its exiting decision from the European Union.

There are various risks associated with all the firms working in UK that would be affected with the decision of Britain exiting the European Union. The city like London have been the financial hub of UK that would be the most affected area after the referendum result in Britain exiting the European Union. Most of the firms that are likely to be affected by this decision would be the financial institutions, banks, real estate firms, etc. Before this referendum’s result, there are many companies that have already announced their changing business plans and strategies for their firms in Britain, if the country was to leave EU (Virasami, 2016). Most of the banks and companies are already in need to leave UK, and shift their operations to other country under the European Union states. This is due to the ease of business and lesser trade barriers and tariffs under the European Union policies that might have a larger economic and financial impact on every business.

Companies like Vodafone have warned UK that it would be shifting its headquarters from London to some other country if it exited the European Union. On the same track, one of the biggest lenders of Britain, Lloyd’s Banking group had made plans to sell out the shares of the taxpayers that are prone to be affected once the decision is being made. Furthermore companies like Virgin group have plans to cut down around 3000 jobs with the Brexit. Apart from this there are companies that have put their future export and investment plans on hold after the final decision being announced. Also the lending firms have cut short their property purchasing in London (Helm, 2016).

The risks associated with the decision of Britain exiting EU are not countable or measurable but could be understood in terms of financial and economic losses. Large numbers of firms are to face the loss in market share and affect the availability of jobs as well as personnel. The risks for the companies also involve lowered profits for the firms and control over the personnel. This decision is also likely to affect the political and social scenario of the country. Immigration is a problem that is being faced by the nation and more than half of the population is immigrant of some other place. However, with this decision, the immigrants would move again in search of better opportunities and jobs. Also as studied above, after exiting EU, the regulatory approvals would become more difficult and troublesome for the firms to continue in the same way as it existed before. Though this decision is favorable for customers and buyers but producers and investors are the ones that are most likely to be affected (Williams, 2016).

The final decision of Britain exiting the European Union would completely reform the financial services industry of the country. It has been evident that the city of London had been the largest centre of financial investments in the complete European Union and has been attracting large number of banks and financial service providers. It will thus be required for UK to formulate effective polices and plans to retain all its existing business firms and develop regulatory authorities to manage the approvals after exiting from EU (Palmer, 2016).

With the step towards taking the decision of exit from EU, there are many threats and risks associated with Brexit. There are many uncertainties and challenges that British firms have to possibly face after this decision. After this, UK will have to lose its membership of European Economic Area, European Free Trade association etc. The committee handling risks have been analyzing potential risks and have coordinating to make sure they have better plans to deal with short term and long term risks. There are companies like British gas Insurance that may not have direct potential impact through Brexit but if their parent company Centrica is impacted then they might also face risks for which they need proper mitigation approaches.

Communication

There are companies that are getting involved in improving communication among the different managerial levels. They have plans to ensure each and every message and update over the Brexit issue and let all the people all over the organization know about it on consistent basis (MacShane, 2015).

Stakeholders

The risk managers have also plans to keep their stakeholders assured and manage them cautiously. They too are to be updated timely about their losses or gains with shareholdings in the firms. Also the stakeholders must have clarity of situation and the company must not make fake promises to them.

Change Management

This is one of the most important aspects to be considered in risk management approach. The firms and its employees must be completely ready to accept the possible changes that are to occur if UK leaves EU. There would be lot of changes in legal, economic and political scenario that would have an overall impact on the complete economy. These impacts could be seen not only for few days or months but for years (Springford and Whyte, 2014). Thus the managers must be aware about the next steps they are to take up for managing the changed scenario of UK after leaving the membership of EU.

There are possibilities that if Britain exits EU, there will be migration, attrition, policy changes and loss of shareholders that will change the complete business scenario for the country. Also the legal and authorizing business approvals would have to be established in a completely new form that would need the firms that intent to continue with UK, to manage the upcoming challenges.

There are many firms that have announced that they would be shifting their operations partially or fully to some other country that is an EU member state (Oliver, 2016). This is an approach that many firms have adopted in order to ensure that they do not face extreme losses or trade barriers.

It has been evident that EU states have benefits of free trade with least barriers but this would not be the situation if UK exits this membership. It has been a fact that the jobs in Britain are being safeguarded by EU as it has been a market centre for more than 500 million customers and it is Britain whose membership with EU has been the most attracting factor for FDI.

However this decision of Britain had led the firms to hire new people called effective troubleshooters that would help them in dealing with such situation after Brexit. The demand of lawyers, consultants, financial advisors and experts in the country has increased with this news flowing around for the sake of safeguarding the business from the post effects of this decision (Weiler, 2015). The organizations have started working on the reframing of trade agreements, funding problems and their solutions, staffing concerns, trade barriers and plans to deal with them. Though EU had provided free trade but the extreme interference of its policies in trade and profit sharing for the firms had made Britain to take such decision. Thus there are many firms that are still in support of this decision of Brexit, despite of the fact that this can be a potential threat to their business and funding requirements.

References

Barrett, A. and et.al, 2015. Scoping the possible economic implications of Brexit on Ireland. ESRI Research Series48.

Boulanger, P. and Philippidis, G., 2015. The End of a Romance? A Note on the Quantitative Impacts of a ‘Brexit’ from the European Union. Journal of Agricultural Economics66(3), pp.832-842.

Dagnis Jensen, M. and Snaith, H., 2016. When politics prevails: the political economy of a Brexit. Journal of European Public Policy, pp.1-9.

Danielsson, J., James, K., Valenzuela, M. and Zer, I., 2014. Model risk and the implications for risk management, macroprudential policy, and financial regulations. VoxEU. org8.

Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The consequences of Brexit for UK trade and living standards.

Helm, T., 2016. Brexit donor’s company spells out risks of quitting EU.

MacShane, D., 2015. Brexit: How Britain Will Leave Europe. IB Tauris.

Oliver, T., 2016. European and international views of Brexit. Journal of European Public Policy, pp.1-8.

Palmer, K., 2016. How businesses have reacted to Brexit so far.

Springford, J. and Whyte, P., 2014. The consequences of Brexit for the City of London. Centre for European Reform.

Swinbank, A., 2016. Brexit or Bremain? Future Options for UK Agricultural Policy and the CAP. EuroChoices15(2), pp.5-10.

Virasami, J.H., 2016. Brexit referendum: in-out, in-out, shake it all about.ROAR9, p.2016.

Weiler, J.H., 2015. Brexit: No Happy Endings; The EJIL Annual Foreword; EJIL on your iPad!!!; Vital Statistics; ICON. S Conference. European journal of international law= Journal europeen de droit international26(1), pp.1-7.

Williams, S., 2016. Brexit: What Companies Should Do Next.

Related Blog Post

Dissertation BREXIT UK Construction Labour Market

European Migrant Crisis Asylum

European Union Regional Economics

I hope you enjoyed reading this post on Brexit and how it affects future trading arrangements for the UK and EU. There are many other titles available in the business management dissertation collection that should be of interest to business students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.

Leadership Styles

Leadership Styles in HR Management

The process of globalization is acting to enhance many changes in everyday life of the population of the world, and leadership is considered one of the main means to achieve the desired results in the most effective way. Application of leadership styles in health care organizations is considered extremely important, as human life is the greatest value, as well as those health care workers who apply various leadership styles in order to contribute to people’s health maintenance and as a consequence, to life safety. Examining the concept of leadership, it is very important to distinguish several styles that can be noticed in the modern practice and also provide a clear explanation of traits of successful leaders. Description of real world leaders and their styles and practice would be useful for better understanding of the results of the concept application.

However, first of all, a clear definition of the concept of leadership needs to be provided. Leadership is not a passive theory, but it is a process which represents actions of people. It is important to pay attention to the fact that organization, hospital in this particular case, cannot represent a leader, but only a person can perform this function, as leadership is based on interactions among people (Leedy, Ormrod, 2010).

Leadership is directed to a person or a group of people whose behavior is aimed to be changed. After the aim is reached, these people become the followers and their present is an integral feature of leadership.

As a process, leadership means that some people should be influenced, and there are several ways to act so. First of all, the followers can be changed by intellectual activity; secondly, emotional influence can be applied, and finally, the leader might cause behavioral influence.

Being a complex concept, leadership does not only allow the leader to apply various modes to influence people, but it also gives the leader an opportunity to apply various leadership styles.

Leadership Styles
Leadership Styles

Three main styles of leadership can be defined. These are authoritarian, democratic, and free reign style. The first one is used when the leader tells the subordinates what should be done. For example, it takes place when a registered nurse tells their subordinates what actions need to be taken to provide a better health care or follow the rules of the hospitals. This style is appropriate when the leader has enough information and skills and also when the subordinates are well-motivated. Time limitations are acceptable for the style and do not make any significant difference when decisions of the leader take into account real opportunities of the subordinates.

Democratic leadership style is especially popular now. It is applied when the leader believes that it is better to work together with the team. Nevertheless, despite the common work, the leader is the person to make the final decision. However, this style of leadership is applied when it comes to internship in health care settings, as the leader does not possess enough information or skills. Such leaders are not required to have some sophisticated skills, so they start working with other employees who have better qualification. Such style is considered mutually useful, as it enables the leader and the team to make more reasonable decisions.

Free reign style is also applied at health care settings, especially when it comes to the work of nurses. Today their roles are increasing and they perform more and more functions. Some of them, such as medication prescription, are allowed to be performed without control of physicians and this example might serve to illustrate the style. It is important to notice that, despite the fact that representatives of the team make various decisions, their leader is the one to be responsible for them. The style is used only when health care providers are able to analyze the situation on their own and identify what should be done and how it should be done (Service, 2009).

Regardless of the fact which style of leadership is chosen, the leader needs to possess the following traits:

  • Being self-balanced
  • Being ambitious
  • Decisiveness
  • Enthusiasm
  • Being self-confident
  • Realism
  • Desire to learn
  • Being just and fair
  • Being creative, and so on.

The list of the traits can be continued, and it has been proven by Linda Aiken and Geraldine “Polly” Bednash who were recognized to head the list of the nursing leaders. These two nurses have outstanding experience in terms of teaching, research, and clinical practice; they have received numerous honors and credentials for their contribution to the world of medicine and health care provision (Fralic, 1999).

Thus, it is possible to conclude that leadership is extremely important to be applied in every health care organization. The history knows numerous leaders who provided health care and contributed to the health of population, and all of them possessed a range of skills. These are being improved and made more advanced under the influence of the process of globalization.

References

Fralic, M. (1999). Nursing Leadership for the New Millennium: Essential Knowledge & Skills. Nursing and Health Care Perspectives, 20 (5).

Leedy, P.D. and Ormrod, J.E. (2010). Practical research: Planning and design. (9th ed.). Upper Saddle River, NJ: Prentice Hall.

Service, R. (2009). The leadership Styles Quotient: Measuring toward Improve. Business Renaissance Quarterly, 4 (1).

Click Here To View Leadership Dissertations

Tesla Motors Case Study

Tesla Motors Case Study

With the increased focus on renewable energy driving all, sector the country’s economy. The transport sector has also received numerous recommendations to reduce carbon emissions. It is against the backdrop of these ideal that Tesla Motors Company was created. This case study will examine Tesla motor companies strategies as well as assess their internal and external environment in order to create viable recommendations for a sector, which is highly competitive. This case study report will begin with background information about the company then assess the organisation strategic positions and this will be undertaken with the use of Porter’s five forces and SWOT analysis. The outcomes from this model will aid in the recommendation, which will be vital for the organisations.

Tesla Motors Background

According to Tesla (2014) the organisation was formed in 2003 as a revolutionary car business using the latest technology as its competitive advantage. The car was able to conceptualise and create an independently electric vehicle known as the roadster. The concept of the car designs was Silicon Valley inspired. According to Ehrler et al. (n.d, p. 381) the organisation “designs, manufactures and sells zero emission electric cars and power train parts, such as lithium-ion battery packs”. The organisation has sought for strategic partnerships with companies such as Daimler, Panasonic, Toyota and US department of energy (Ehrler et al., n.d, p. 383).

Tesla Motors PESTEL Analysis

PESTEL analysis is a viable tool used to examine an organisation environment and is crucial in the identification of key areas of improvement as well as potential problems likely to emerge (Yuksel, 2012). The external environment is a factor, un-controlled by the organisation and all the eternities function as influences to the organisation operations as seen in figure 1 below. The models take into consideration the political, economy, the social, technology, legal and environment.

Tesla Motors PESTLE
Tesla Motors PESTLE

Figure 1 PESTEL Model

(Sourced from: Business and Management: 4th November – 11th November 2013, – PESTLE Analysis, 2015).

Political

According to Tesla (2014), Tesla motors sell their cars in numerous countries across the United States, Europe and Asia and hence, the company is exposed to different political situations occurring in all those countries. According to the Environmental- protection.org.uk (2014), some countries political environment are affected by climate change issues and hence, law enacted to cut carbon emission by a particular percentage and this affects car manufacturers. The US government is offering incentives to car manufactures that endeavour to product cars more efficient and better in utilising green car technology.

Economic

There is an alternative avenue for growth for cars offering cars, which utilise alternative energy. The increase costs of petroleum have made business more difficult and hence, businesses and individuals are in need of an alternative solution to the rising fuel costs. Most developed countries are now recovering from the financial crisis; the purchasing power is now higher, great new for manufacturers who have products that at needed.

Social

Today the word green technology is associated with companies that are considered to be producing products that are good for the environment. Carbon emission from vehicle exhausts are a big contributor to greenhouse gases affecting the earth environments (Wunch et al., 2009).

Technological

The car sector has seen tremendous changes due to technological innovation affecting several aspects of the car efficiency. Vehicles have been going through metamorphosis with car manufactures looking for way of reducing the fuel intake in order to improve efficiency.

Environmental

Eco friendly car is the word spoken to car manufacturer if they rare to remain competitive by customers across the world. With fuel leakages reported in some places, resulting in a loss of marine and bird life, there have been a growing number of environmentalists forcing their government to regulate the sector and allow only fuel-efficient cars on their roads. What happens to the ozone layer is another factor pushing some individual and institutions to consider vehicles, which do less damage to the environment.

Legal

The US has a market presents challenges for Tesla as a car manufactures especially due to the franchise laws in the country (Fisher, 2014). The energy loan program also in the country increases the chances of car manufacturer to produce more green cars in the sector.

All the factors seen above have the effect of directing the way a car manufacturer does business in US. It is vital to determine how external environments affect the organisation in order to work from there, building competence in a way, which is likely to result in a more beneficial manner. Of major significance in the assessment of Tesla’s external environment are the franchise laws, which would stop the company from distributing their cars in some states in the country. However, the much of the external influence faced by the car manufactures geared to more in support of the company and trends show the vehicle sector is set to follow Tesla direction in the future.

Tesla Motors Competences (SWOT Analysis)

In order to determine Tesla’s competences in the vehicle industry, a SWOT analysis is carried out to examine the organisations strengths, weaknesses, opportunities and threats (Hill, & Westbrook, 1997. It is vital to assess the organisation internal capabilities for a more effective recommendation outcome. A SWOT analysis model is presented in figure 2 below.

Tesla Motors SWOT
Tesla Motors SWOT

Figure 2: SWOT analysis

(Sourced from: Doing a SWOT Analysis to Focus Your Marketing Strategy, 2015)

Strengths

Tesla motors have been able to create executive cars, which are totally fuel free and are energy efficient since they are based on electric power, which are saved on batteries. Tesla cars have been able to go for more than 300 miles without having to recharge their batteries and the closest competitor can only reach 100 miles, which is a significant benefit to the company. In 2013 their car, the “Tesla S” was awarded the price as the trendiest car of the year.

Tesla has been able to reduce its input costs significantly through outsourcing of other parts needed for the manufacture of their vehicles and this has allowed the organisation to reduce its costs. Its collaboration with Panasonic is likely to have an even more powerful battery, which is likely to push their cars even further. In addition, its collaboration with Daimler and Toyota has greater advantages and the company is set to provide vital parts for needed for electronic cars for the two companies.

The organisation has invested a large amount of research and development and this is key to pay off in the future when new technology which is likely to further revolutionise the car sector will be a necessity and this goes in hand with their objectives which is to be in the forefront of the electric vehicle sector.

The organisation has been able to utilise just in time JIT manufacturing systems and only those cars, which are ordered, manufactured and this reduces storage costs and enables them to have a smaller facility. This form of lean management process allows staff to become specialised in a vast number of skills hence, fewer staff are able to accomplish the task of the organisation.

Weaknesses

The major problem that Tesla Motors has is a lack of adequate capital base on which to sustain its operational successfully. Despite having sales for its vehicles, the organisation is not making profits and is due to a low demand and high cost of sales, which are eating up the sales revenues.

The organisation is running on debt financing which is expensive and puts the company at greater risks of being taken over if they are not able to pay up its debts on time. The large research and development costs do not seem to bear profits at this time.

The Tesla car brand is not international recognised as compared to other brands such as the Toyota Prius. The organisation has focused on the higher end of the market, attracting only those with considerable resources to purchase the cars.

Opportunities

The opportunities for Tesla are enormous today especially with fuel prices rising, making life difficult for those who have cars that consume a lot of fuel. The car manufactures need to communicate the benefits of their vehicle to the entire car market since the benefits accruing with owning their cars far outweighs having a regular gasoline car. There is a ready market for small fuel-efficient vehicles also which the company has not tapped (Pollet, Staffell & Shang, 2012). Already the car manufacturer is in a sector, which few have tried to venture fully. Those car manufactures who have tried to venture either have hybrid cars of inefficient electric cars as compared to Tesla motors.

Threats

Other car manufacturers have greater financial resourced or sources, which could easily allow them to venture into the niche market, Tesla is viewed as a smaller inexperienced car manufactures are compared to the long term experienced car manufactures in vehicle sector. If other car manufacturer with greater capability for economies of scale to start making electric vehicles, this could affect Tesla revenue sine the organising is not able to manufacture as cheaply as those who are established worldwide.

Tesla Motors Competences (Porters 5 Forces Analysis)

Porters five forces as seen in figure 3 below is useful in assessing a business sector to find how attractive the sector is and who has influence in the sector.

Tesla Motors Porters
Tesla Motors Porters

Figure 3: Porters 5 forces Analysis Model

(Sourced from: Porter, 1981)

The Threat from New Entrants

The sector which Tesla Motors company is in has challenges for those who want to enter that market segment. The capital expenditure needed for this electric vehicle sector is very high and keeps new business away from this sector. The only business which may find it easy to enter this market are those existing car manufacturer that have large resources readily available as well as have the capacity to venture fully into this sector.

The Bargaining Power of Buyers

Tesla is a vital company in the electric vehicle sector and today they have a very solid relationship with their customers. Since the company has invested a lot of money and skill in research development, they have been able to manufacture quality products, which are useful for companies such as Daimler, and Toyota hence Tesla Motors power is very high. Tesla has a manufacturer, produces cars which are unique and scarce hence, with increased demand likely to set in the market, they will have considerable power thought, this is only vital if they are able to generate awareness of their brand.

Threat of Substitution

The threats of substitution are the Tesla Motors market segment can be seen from hybrid cars, diesel cars as well as other electric cars and solar power cars. There are also substitutes arising from people choosing to ride buses, trains as well as use bicycles instead of purchasing an electric vehicle.

The Bargaining Power of Suppliers

Since Tesla Motors is highly dependent on its suppliers and this is due to adopting lean management system where parts sought when an order is availed. This means that the suppliers have a higher bargaining power. If the suppliers do not bring the raw materials in time, Tesla is likely to suffer as a result.

The Intensity of Rivalry in the Industry

The global car sector is fiercely competitive with car manufactures competing on a global platform with different categories of their products to cater for different clientele. In the electric vehicle, sectors server car manufactures have created cars, which have not been able to meet the standard of Tesla though; companies such as Nissan have created compact affordable electric cars, which are selling in different countries.

Porter’s five forces show a growing threats to the Tesla car company if they do not work quickly and cater for other segment. This threat can only be from already established car manufacturer. The sector is still inaccessible due to the high capital-intensive investment an organisation will have to undertake and the skill needed to ensure an organisation is competitive.

Conclusions

This case study features Tesla Motors a company that was set up to create in 2003 as a revolutionary car business using the latest technology as its competitive advantage. The car was able to conceptualise and create an independently electric vehicle known as the roadster. The company’s revolutionary cars are set on a global stage, as a car with moves without the conventional fuel. The external environment scanning undertaken through PESTEL analysis of the organisation revealed that the organisation had greater opportunities to enhance their business with support from the American government. The international analysis undertaken using the SWOT analysis revealed that organisation has inherent weaknesses, which saw the company perform in a sector, which is very lucrative due to a lack of adequate finances. Threats in the electric vehicle sector were seen to arise from existing car manufacture, with greater competences as well as finances to build electric vehicles even cheaper than Tesla. Porters 5 forces analysis that was undertaken on Tesla Motors revealed that the sector was very hard to enter by new players in the sector. This was due to the high capital intensity the sector demanded as well as the skills necessary for a business to actually undertake the business successfully. The case study also showed that Tesla Motors strategy was more focused on the upper clientele of the car market with quality, better performance as well as expensive vehicles, which used electricity as compared to petrol.

Recommendations

Tesla was advised by its customer to manufacture a car that was of a lower price but the company has still manufacture a car that is half the cost of its pioneer car thought still relatively high for many to purchase.

Since Tesla is in a sector, which has the highest potential in the vehicle sector, the organisation should find ways of building a cheaper option, which can be bought by a number of people worldwide. Since the companies cars are of the best quality, in order to capitalise on this aspect, selling on mass production could be more beneficial to producing on demand. It is better to derive fewer profit margins and sell more cars, which then equates to a greater profit as compared to selling premium, which affects demand. With threats evident as existing car, companies have started embarking into electronic car sector, this is poised to destroy Tesla cars in the market if those car manufactures are able to manufacture and sell at a cheaper price. This is an aspect Tesla should not forget and having beautiful expensive cars does not equate to profits but rather having a car, which has demand.

The company’s strategy on focusing on premium cars and attracting the rich to purchase their cars is failing with little or no demand. The rich have the capacity to purchase any other car despite the consumption and hence, a change to their focus can create changes to the financial reporting. Coming out early and capturing a greater market share will hinder even existing car manufacturer from venturing into Tesla niche market. The organisation should come out with different models from compact small cars to their SUV since this is a car concept which any individual is unlikely to pass out.

Tesla should embark on selling key part to other car manufacturers to ensure they have a steady stream of revenue apart from selling their cars. This ensures that the car manufacture remains relevant even with increased competition, which is set to grow in the coming years. Being in the forefront or provision of vital innovative electrical parts for car manufactures can even bring in a greater percentage of revenues. Samsung Company has been able to remain competitive as a result of producing vital parts for iPhone which is a major rival.

Tesla should continue with its research and development and produce batteries, which are able to take the car further as well as reduce the time it takes to charge the car batteries, which many view as a challenge when using electric vehicles.

Most importantly, Tesla needs to create awareness of its products to the international market not just in American and Europe. There are many government and organisation, which could benefit from having a car that utilises less harmful substances as compared to petrol of diesel. A greater percentage of the revenue should be spend in advertisement and education on harmful carbon emitted in petrol and diesel consuming cars.

References

Business and Management: 4th November – 11th November 2013, – PESTLE Analysis (2015) Business and Management: 4th November – 11th November 2013, – PESTLE Analysis.

Doing a SWOT Analysis to Focus Your Marketing Strategy (2015) Doing a SWOT Analysis to Focus Your Marketing Strategy.

Ehrler, C., Gillis, J., Huesemann, M., Sandoval, M., & Turckes, L., (n.d) Tesla Motors: charging into the future? Case 29 1(1) pp. 381-395

Environmental-protection.org.uk, (2014) Car Pollution | Environmental Protection UK.

Fisher, D. (2014) Tesla’s Elon Musk Learns An Old Lesson Fighting Protectionist Dealer Laws.

Hill, T., & Westbrook, R. (1997) SWOT analysis: it’s time for a product recall. Long range planning, 30(1), 46-52.

Pollet, B. G., Staffell, I., & Shang, J. L. (2012) Current status of hybrid, battery and fuel cell electric vehicles: from electrochemistry to market prospects. Electro-chimica Acta, 84, 235-249.

Porter, M. E. (1981) The contributions of industrial organization to strategic management. Academy of management review, 6(4), 609-620.

Tesla Motors, (2014) About Tesla | Tesla Motors.

Wunch, D., Wennberg, P. O., Toon, G. C., Keppel Aleks, G., & Yavin, Y. G. (2009) Emissions of greenhouse gases from a North American megacity. Geophysical Research Letters, 36(15).

Yuksel, I. (2012) Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p52.

Click Here To View Business Strategy Dissertations