btec level 5 hnd diploma in business understanding and leading change

Organizational change and their impact on business operations Change management is the process of managing and coordinating activities to change an existing system, organization, process

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5.3! Product innovation! !18!

6.! Recommendations Biti's should do to minimize the negative impacts of change! !19!

7.! Conclusion! !19!

REFERENCES! !20!

1 Introduction

If handled well, change is essential to an organization's success Organizations ought to make an effort to welcome change as opposed to fearing it The reconstruction and alteration that takes place in the organization's entire work environment is referred to as organizational change Many businesses undergo abrupt changes due to a variety of internal and external circumstances In order to examine how change dynamics, impact the actions of other organizations, B 's, a local business, is chosen for itiexamination and comparison with the strategies and operations of the other enterprises in the sample As a newly appointed change manager in B 's company, I was asked to write a report to the Board of itiDirectors (BOD) on the level of readiness of B 's company with the change plan In the report, I iticonsider the drivers of change from external and internal sources with a comparative analysis of their impact on B 's company strategy and operations before making recommendations to the board of itidirectors about what the company should do to prepare for an effective change plan Specifically, I will apply more relevant change management theories and models to guide my discussions and provide and justify my analyzes and recommendations in the report below

2 Organizational change and their impact on business operations

Change management is the process of managing and coordinating activities to change an existing system, organization, process or product to a new or improved state It aims to ensure that changes are implemented effectively, optimizing benefits and minimizing risks and negative impacts

Change management supports moving an organization from its current state (the way things are done today), through a transition state, and into a desired future state Change management focuses on the people affected by the change and enables them to engage, adopt and use the change

Change management not only focuses on implementing changes in technology, processes or

organizational structure, but also ensuring the change is accepted and supported by members of the organization It involves creating awareness, changing attitudes and promoting employee engagement so that they accept and adapt to new changes

Definition of organizational changes:

Organizational change refers to the actions in which a company or business alters a major component of its organization, such as its culture, the underlying technologies or infrastructure it uses to operate, or its internal processes (Harvard Business School)

Figure 1: Process of change management (Prosci, 2022)

2.2 Benefits of changes

Change management brings many benefits to individuals when facing change in their work environment or personal life Change management helps individuals develop adaptability, flexibility and readiness to face changes in the work and life environment In addition, change also provides opportunities for learning, personal development, creating creativity and promoting career growth Specifically, change management brings a number of benefits to individuals as follows:

• Change management helps individuals develop adaptability and readiness to face unexpected changes This facilitates flexibility in thinking and action, helping individuals quickly adapt to the environment and take advantage of many new opportunities

• Change provides opportunities for learning and personal growth When facing change, individuals must learn, research and grasp new knowledge, thereby expanding their knowledge and skills This

process helps individuals become dynamic and adaptable to new situations, which creates opportunities for personal growth

• Change often opens the door to creativity and innovation Individuals are encouraged to find ways to solve new challenges and create value through new ideas Change management helps individuals develop their creative potential and fosters differentiation in work and career that enhances creativity • Change creates opportunities for individuals to face challenges and demonstrate their abilities By overcoming difficult changes, individuals can grow, expand their range of skills, and become an important resource within the organization This develops self-challenge and career development opportunities

• Effective change management can create motivation and morale for individuals When seeing that change brings new benefits and opportunities, individuals will feel more motivated and excited about their work This can increase individual satisfaction and commitment to the job and the organization (Abbas T, 2022)

Change management brings many benefits to a work team when facing change in an organization Helps increase adaptability, create consensus and consensus, increase morale and commitment to develop skills and capabilities, enhance performance and achieve results This helps the team successfully navigate change and create a positive and productive work environment

Specifically, the benefits of change management for teams are as follows:

• Change management helps teams develop the ability to adapt to a rapidly changing work environment Working as a team will now learn how to adapt to new processes, new technology and different requirements This helps the team maintain high performance and ensures that work is completed effectively in a changing environment

• Change management helps create consensus and consensus within the team By participating in the change management process, team members have the opportunity to express their views, contribute ideas and participate in decision making This creates consensus and positive interaction within the team when facing change

• Effective change management can increase the morale and commitment of team members When members perceive that change is being managed well, they have confidence in leadership and the growth of the organization This creates a positive environment, increasing team morale and commitment to the common goal

• Change management provides opportunities for team members to develop their skills and competencies When participating in change activities, they can learn and apply new skills such as collaboration, time management, problem solving and effective communication This not only creates immediate benefits but is also an investment in future personal and career development

• Proper change management can boost performance and help teams achieve better results When changes are implemented in a structured and supported manner, teams can work more effectively, take

advantage of new opportunities, and achieve their goals

Change management plays a vital role in ensuring organizational success and survival in a constantly changing business environment Managing change with a clear plan not only helps businesses steadily grow according to the set roadmap but also flexibly adapts and reduces predictable difficulties throughout the change process These benefits help organizations stay competitive and survive in a rapidly changing business environment Specifically, the benefits of change management for businesses are as follows:

• Change management helps organizations create innovation and ensure competitiveness in the business environment Change allows the organization to adapt to new trends, new technology and in accordance

with customer needs By implementing change projects and promoting creative thinking, the organization can grow new products and services, create value and create competitive advantage • Change management helps organizations stay proactive and ready for all situations Because change management must be done before change occurs This preparation will help the whole organization always be ready, proactively adapt, rather than struggling to adapt and accept average solutions, or even be eliminated

• Change management helps increase organizational performance and effectiveness Change can lead to improved processes, more efficient organization of work, optimization of resources and increased organizational performance By implementing change management measures such as organizational restructuring, new work processes and use of advanced technology, organizations can enhance competitiveness and achieve better business performance

• Change management helps reduce internal resistance, allowing top and bottom to agree on one direction The biggest resistance to reform and change plans often comes from within It can be a fear of change such as a lack of capacity (in technology or foreign language), fear of being replaced or fear of supervision Communicating new direction and creating consensus just before reforms take place is the beginning of the organization's transformation

• Effective change management can increase employee morale and commitment When employees see that the organization is effectively managing change, they have confidence in the future of the organization and take advantage of personal development opportunities This creates a positive, motivated and creative working environment, promoting employee contribution and commitment • Change management contributes to building an agile organizational culture Organizations can encourage creativity, continuous learning, and adaptation to change through the development of norms and values such as cooperation, creativity, respect, and acceptance of change An agile organizational culture helps create a positive working environment, encourages employees to participate in the change process and creates a solid foundation for the sustainable development of the organization

operations:

• Microsoft is one company that has successful change management strategies In 2014, Satya Nadella assumed leadership of Microsoft, a firm characterized by intense departmental competition They weren't allies; they were adversaries most of the time In order to reduce the number of internal divisions and unite the workforce around common objectives, Nadella reorganized the business

• Google divided itself more in order to undergo metamorphosis It was growing more difficult for upper management to focus and set priorities because the company's R&D was working on so many different initiatives The response was to divide up into several businesses, each with a distinct specialty and reporting to Alphabet, the new parent company

• British Airways found that cutting employees worked well in the 1980s After acquiring competitor airlines, the business had too many workers and too many routes Lord King, the new board chair, enhanced profitability by updating the aircraft, canceling unprofitable routes, and reducing the personnel He spoke with workers before to the firings, outlining the necessity and enlisting the assistance of those who remained with the company, in an effort to head off employee resentment

3 Overview of Biti’s

Established in 1982, Binh Tien Limited Liability Company, with the B 's brand, is always proud to be itithe largest consumer goods manufacturing company in the footwear sector in Vietnam and is always ranked highly in Quality awards Quality, Prestige Besides, B 's is also one of the successful itiVietnamese businesses in promoting Vietnamese

footwear brands to the world with the slogan "caring for Vietnamese feet" B 's slogan is very iticoncise but meaningful The meaning is not short Through this statement, customers understand information about the product, the benefits of the product are its durability, beauty, pleasant feeling when used, and at the same time promote the national spirit of supporting the movement "Vietnamese people use goods"

Figure1: Logo B ’s iti

Since its founding in 1982, Biti's has progressively won over customers of all ages with high-quality footwear goods designed with Vietnamese expertise in mind Vietnamese folks at a cost that is affordable for most people Following the COVID-19 outbreak, Vietnamese fashion enterprises are experiencing challenges similar to those faced by the global fashion industry The majority of Vietnamese consumers are familiar with B ’'s as a well-known brand of sandals and shoes, according itito Ms Nguyen Minh Giang, Head of B 's Department Actually, the business has been operating for itiabout 40 years But in all the years B 's has been in business, nothing has presented as many challenges iti

as the COVID-19 pandemic of the last two years The State and Government's rules regarding disease control have forced many of biti's stores across the nation to close; three-fifths of B ’s large factories itiwere forced to close, resulting in wage reductions for over 7,000 workers or forcing them to take unpaid leave Because of this, B 's leadership team places a high importance on the necessity to provide itirevenue for employees, yet the organization nonetheless prioritizes human resources There is more to happy and safe working environments than meets the eye B 's understands that this transformation itimakes the company penetrate more deeply into all aspects of life, and that is what makes the business more serious about its direction, the company has decided to maintain social security, implement corporate social responsibility or extend working hours to three days per week; provide online work tool support; provide adaptability training; and concentrate on online sales

• Vision

To become a powerful manufacturer of consumables in Asia “Being dedicated to this broad vision of developing Biti’s as a worldwide company, we keep on both maintaining the leading position in Vietnam and proactively reaching out for international opportunities.”

• Mission

To constantly offer consumers with better choices, committed to our proposition of superior quality “Binh Tien Imex Corp., Pte., Ltd is committed to continuous improvement and enhancement of the quality of our products towards our proposition of superior quality, in order to further satisfy higher and more diverse demands of consumers and to build long-term trust with all customers.”

issues with Vietnam's economic administrative administration system The persistence of bureaucracy and corruption is impeding businesses' ability to conduct business

• Opportunity:

Vietnam is a country with stable politics and economic development, which creates market expansion opportunities for Biti's Specifically, stable politics helps people's income increase and consumer demand also increases, creating greater demand for Biti's footwear products

• Challenge:

Political changes can create uncertainty and risks for Biti's For example, changes in regulations, taxes and trade policies can affect a company's business operations, costs and profits

4.1.2 Economic

The constantly shifting economic landscape has had a significant impact on consumer purchasing patterns and all firms, including the biggest ones, in recent years Vietnam's economy achieved a relatively high growth rate (6.7% in 2010) in the context of the global economy that was still recovering slowly from the effects of the global economic crisis and the country's many challenges The GDP growth rate for the entire period 2006-2010 reached an average of 7%/year, and the national income per capita in 2010 was 1,160 USD, demonstrating the steady improvement in people's living standards As a result, society's purchasing power is growing, which accelerates the demand for consumer items like footwear There is only room for one pair of shoes, in accordance with Maslow's hierarchy of needs sandals to wear but adapt to fashion trends; more pairs of changes are needed, and they must convey the wearer's status and sense of style In addition to high interest rates (almost 27 USD), which cause customers to tighten their spending despite the growing demand, our nation's high inflation component also affects low- and middle-income individuals %/year), low investment efficiency has had an impact on bitis' ability to raise capital During this time, biti’s is expanding its business across multiple industries and implementing numerous investment projects, so it needs to raise a significant amount of capital through a variety of channels, including banks, luring in both domestic and foreign investors, and issuing shares Biti's inability to proactively obtain raw resources is one of its challenges; these must primarily be imported from pricey nations in the region including South Korea, Taiwan, and China (60–70%) On the one hand, the supply and demand for foreign currencies, particularly the USD, has caused the exchange rate to fluctuate recently This has led to stressful exchange rate fluctuations because of exchange rate rules and management The exchange rate is not responsive to changes in the market and is not flexible Bitis and certain Vietnamese footwear companies are forced to look for supplies from other countries with higher prices while also having to pay import taxes since the supply of raw materials for leather shoes in the nations Bitis imports is increasingly running out While the average rise in the cost of basic materials was between 15% and 20% In addition, rising fuel prices will result in higher transportation expenses, and rising power prices will have a big impact on the leather and footwear industries since their operations require a lot of processing, which uses a lot of electricity That led to increased costs, and as selling prices are hard to raise or raise by a set percentage, the company's profit was decreased Moreover, a product price increase has an impact on demand for the goods, particularly

from sensitive consumers sensitive to exorbitant costs The tourism sector is growing as a result of our nation's increasing integration into the global economy This presents potential for the leather and footwear industries to grow domestically through direct export, therefore Bitis must take note of this trend and focus on product development

• Opportunity:

As the global economy integrates and develops, Biti's can take advantage of international expansion opportunities Exporting products and accessing foreign markets can help companies increase revenue and strengthen their competitive position in international markets