Table of Contents

INTRODUCTION.....................................................................................................................................3
MAJOR FINDINGS..................................................................................................................................4
CONCLUSION........................................................................................................................................12
REFERENCES........................................................................................................................................13
 INTRODUCTION
Every organization must embrace change in the current business environment in
order to adapt to global market trends. Promoting innovation for adapting to the external
environment while simultaneously striving to increase production and business efficiency
is a top priority for businesses. Nevertheless, in addition to the motivating factors, the
enterprise's implementation of the change plan confronts resistance from numerous
forces. It necessitates that the manager has a specific plan to address the problem and
consider the most suitable leadership option for the company's current circumstances.
The change strategy for a two-year-old supermarket, located near the centre of Hanoi,
will be presented in this report. The analysis includes 3 phases following Kurt Lewin's
Change Model, thus providing the manager with suggested solutions for
the implementation of change.
 MAJOR FINDINGS
Task 1
1. Review the manager’s intentions of change and impacts on business operations
*Types of changes
Organizational development is the systematic application and transfer of
behavioural science knowledge to the planned development, reinforcement of the
strategies, structures, and processes, and enhancement that contribute to the effectiveness
of an organization (Litwin & Burke, 1992).
In the case of the supermarket, the given changes are all planned changes, they are
listed as follows:
(a) Developing a key performance indicator for staff performance management
(b) Training workers on better work ethics and skills
(c) Adding new goods that consumers demand and providing sale promotions for the
supermarket's loyal customers
(d) Rearranging the layout of the supermarket to enhance the shopping experience for
customers
(e) Investing in an ERP system (for small businesses) that may enhance the
administration of the supermarket
Regarding the similarity, the above changes have all been affecting the business
operation of the supermarket. In terms of differences, the changes will be categorized
based on size and scope of change: 1st order, 2nd order, 3rd order; and magnitude of
change: incremental and fundamental changes.
+) Size and scope
+ First-order change: The first-order change is a simple, linear change in individual,
group, or organizational behaviour that disrupts cultural norms and values minimally
(Cummings & Worley, 2015). Training staff for better work attitude and skills,
developing key performance indicators for managing staff's performance, adding new
items that customers need and offering sale promotions for the supermarket's loyal
customers are examples of first-order changes.
+ Second-order change: Second-order change is discontinuous and changes
organizational ideals and beliefs (Cummings & Worley, 2015). These changes necessitate
reconsidering and redesigning the system or procedure in order to produce a new and
enhanced version. Redesigning the supermarket layout to enhance the purchasing
experience for customers is an example of a second-order change.
+ Third-order change: Third-order change is dramatic and disruptive, questioning the
organization's essence. Third-order transformation helps organizations reinvent
themselves and their surroundings (Cummings & Worley, 2015). The purchase of an ERP
system (for small businesses) that may improve the supermarket's administration is an
example of a third-order change as it entails adopting a new system for managing the
business, which may necessitate substantial changes to the way things are presently done.

+) Magnitude of change
Changes can also be categorized into 2 types based on the magnitude of change:
incremental and fundamental changes. Incremental changes are often incremental
steps and have limited dimensions and levels of the organization, occurring within the
context of the organization’s existing business strategy, structure, and culture.
Meanwhile, fundamental changes significantly alter how the organization operates. It
involves several dimensions: structure, culture, reward systems, information processes,
work design; and multiple levels: top-level management, work groups, and individual
jobs (Litwin & Burke, 1992).
The fundamental changes include intentions (d) and (e), as (d) reconfigures the
core elements of the supermarket in an effort to create a new and improved shopping
environment that will have a lasting impact on customer satisfaction, (e) redefines how
business processes are managed, and has the potential to transform the supermarket's
overall operations and decision-making.
 Meanwhile, the incremental changes consist of 3 other intentions of the manager:
(b) focuses on continuous improvement within the existing framework, (a) introduces a
new performance management approach within the existing organizational structure, and
(c) helps improve customer satisfaction and loyalty gradually.

*Impacts of changes
The business operates a supermarket in the retail industry, so in addition to the
activities such as HR, Marketing, Finance, etc., the supermarket also has several other
activities based on its characteristics: Logistics, Procurement, Shipping, Customer
Service (Sales)…. The impact of the changes (from (a) to (e)) on the business activities
will be analyzed in the table below.

Impacts on business operations

Changes
HR Logistics Sales Finance
→ Create a
new appraisal →Data
process collection and
→ Establish analysis
(a) Developing specific and →Adapt to →Design and
a key measurable new KPIs, implementation
performance goals boost sales of incentive or
indicator for → Determine performance, reward
staff the metrics and programs
performance that align with encourage → Change in
management the company's sales teams. the way salaries
goals and are paid and the
objectives allocation of
→ Coaching funds
and mentoring
(b) Training → Training → Adapt to → Budgeting
workers on activities the training for the training
better work → Develop sessions and expenses
ethics and training applied new → Allocating
skills programs knowledge in funds for
→ Evaluate operating training
and track the materials
effectiveness →Coordinating
of the training payment for
 programs. external
trainers
→Conduct
(c) Adding new
meetings, and →Collect
goods that →Revise inventory →Invest large
training inputs from
consumers levels and supply amounts of
sessions for customers
demand and chain processes to money on new
employees through
providing sale ensure that the new goods, essential
→Prepare surveys
promotions for products are marketing, and
additional →Track the
the adequately stocked advertising
employees for progress of
supermarket's and replenished. activities
increased new programs
loyal customers
workloads.
→
→Hire Collaborate
→ Adjust
(d) additional staff with store
equipment and
Rearranging →Adjust the personnel to
technology such as
the layout of schedules of determine the → Budgeting
pallet jacks,
the existing staff optimal for redesigning
forklifts, and
supermarket to →Provide placement of the layout (new
automated storage
enhance the additional products. equipment,
and retrieval
shopping training to →Collect decorations...)
systems to
experience for employees inputs from
accommodate the
customers →Reassign customers
new layout
employees through
surveys
→ Collaborate with
the project team to
define timelines,
→ Employee → Budgeting
(e) Investing in allocate resources,
training and for the
an ERP system … → Generate
development investment
(for small → Assess factors sales reports,
→ Evaluate → Generate
businesses) such as inventory use the data
different real-time
that may tracking to identify
vendors or financial
enhance the capabilities, trends,
ERP solutions reports
administration warehouse evaluate sales
→ Change →Identify and
of the management strategies…
management mitigate
supermarket integration, → Align
planning financial risks
transportation processes,
management, … share
information
Table 1. Impacts of changes on business operations
2. Analysis of drivers for change
*The internal environment
+) Overview
According to the case, the supermarket operates in the retail sector. The given
information indicates that the supermarket has 10 employees under the control of the
owner, including the positions in the chart below. Based on the given information, the
company is defined as a small business according to Article 6 of Decree 39/2018/ND-CP
and is assumed to be a single-member limited liability company. Additionally, it is
assumed that the owner of the supermarket has a relatively positive relationship with
the manager, they have been close friends for five years but sometimes have conflicts
while working together. The given employee data shows that 80% of the
supermarket's employees are high school graduates or undergraduate students,
creating a dynamic work environment.
Additionally, the supermarket's culture is hierarchical and appropriate for
businesses with distinct orientations (Hart, 2022). Besides, the actuality of supermarkets
is reflected in the difference in statistical data and the decrease in customer
satisfaction, and the company also has had no specific strategy recently.

Figure 1. Organizational Structure

+) Strengths
As regards strength, the supermarket's organizational structure is functional
organization. This specialization assists the enterprise in achieving high levels of
productivity (Gleeson, 2019) (1). Besides, a small-sized business like this supermarket
may be able to offer niche or speciality products that larger supermarkets do not,
thereby catering to the specific requirements and preferences of individual customers (2).
In addition, the legal status enhances the owner's ability to be assertive and proactive in
business, given that he or she has complete decision-making authority (3). Furthermore,
a hierarchical culture encourages task performance because lower-level employees will
comply with the directives of superior management (4) (Decu, 2022).
+) Weaknesses
In contrast, the weaknesses of the supermarket are evident in the provided table of
consumer feedback on customer service. The supermarket has encountered a significant
problem with a decline in consumer satisfaction (5). Second, because the organizational
structure is functional and the highest decision-maker is still the top management, the
final decision must be approved by the owner, so the company's decision-making
process will be lengthy (6). The company lacks a specific business strategy, resulting
in a disconnect between individual and organizational objectives. This can cause
businesses to lose focus and create conflicts between individual and group interests in the
long run (7). In terms of competitive advantages, the supermarket will be inferior to the
local shops and street markets as it has not offered sale promotions (while other local
shops frequently offer many promotions), a policy for customer loyalty, an online
sales channel, and home delivery (8).

*The external environment

+) PESTLE analysis
+ Political and Legal
Vietnam is a socialist nation, which means that the government plays a significant
role in the economy, including the establishment of regulations and business-affecting
policies. Government initiatives to enhance infrastructure may have an impact on the
logistics and supply chain of the supermarket. The government has invested
significantly in infrastructure and logistics recently, particularly in transportation
facilities and ports. This has considerably improved Vietnam's supply chain, decreased
transportation time and costs, and enhanced the quality of products and services (Savills,
2023) (9).
All businesses in general and businesses operating in the retail, supermarket, .... in
Vietnam need to comply with Law on Enterprises No.59/2020/QH13 (Vbpl.vn, 2019).
For example, article 28 establishes the principle of enterprise freedom, which permits
businesses, including supermarkets, to conduct their business activities
autonomously but following the law (10). Besides, Articles 9 and 20 in Law on
Competition No. 23/2018/QH14 prohibit anti-competitive practices, such as collusion,
abuse of market dominance, and price-fixing, which could restrict the supermarket's
ability to compete with other businesses (11). The framework of the program for high-
tech application and service development authorized by Decision 3418/QD-BKHCN
encourages enhancing the quality of multimedia services, logistics, passenger and
freight transportation, product traceability, inspection and assessment of product
standards and quality, solutions, and digital transformation tools for business (12).
However, the investment of the government is insufficient, resulting in difficulties in
competing with competitors (Tapchitaichinh.vn, 2021) (13).

+ Economical
Vietnam's real GDP has experienced growth for the past five years, and this trend
is anticipated to continue through 2028. The GDP growth in 2023 is 5.76%, compared to
the previous year (Statista, 2023). Besides, Hanoi's gross regional domestic product grew
by 5.8% annually in the first quarter of 2023, outpacing the national average of 3.32
percent (Yen, 2023). The mentioned data indicates an improving economic situation in
the region and Vietnam is experiencing steady growth. This provides opportunities for
the supermarket to grow its operations and customer base (14). Besides, the
supermarket might face challenges from cost management due to inflation and
fluctuations in currency exchange rates in Vietnam (Vietnamnet.vn, 2023) (15).
+ Social
By 2028, the total population is projected to reach 104.22 million (Statista, 2023).
The population of Vietnam is relatively young, tech-savvy and prefers purchasing
experiences that are convenient and efficient. The swift growth of digital consumers
has driven retail and purchasing behavior innovation, thus forcing the supermarket to
promote the application of online sales channels and home delivery (Thanh Pham, 2022).
Besides, Vietnamese consumers are paying attention to sustainability, social
responsibility, and labour conditions (Delteil et al., 2021). The change in purchasing
trends is a challenge for the supermarket, as the company does not yet have online or
technology-related services (16). The expanding middle class in Vietnam provides a
market opportunity for the supermarket, yet it may also increase competition in the
retail sector (17).

+ Technological
Industry 4.0 has a strong impact on trading and transportation activities in each
country, including Vietnam. The rapid implementation of technology in the retail
industry is regarded as one of the greatest challenges facing retail business managers
(Minh, 2017) (18). Numerous companies are investing in software and modernizing their
equipment (Thanh Pham, 2022). After, the expansion of COVID-19, several technologies,
such as AR, big data, AI..., have created trends in the retail industry, allowing retail
businesses to transform significantly by optimizing operations and expanding their
consumer base (FPT Digital, 2019) (19). However, as a result of the high risk of initial
investment costs, not all businesses can implement advanced technology (Thu Ngan,
2021) (20). Lastly, the technology carries with it the possibility of tech-driven
unemployment, which may necessitate business downsizing on the part of senior
management (21).

+ Environmental
 According to research conducted by Nielsen Vietnam, the annual growth rate of
brands with "green" and "clean" commitments is approximately 4%. The collected data
has shown up to 80 percent of Vietnamese consumers are willing to pay more for green
and clean products manufactured from environmentally beneficial materials (Linh Lan,
2022). The rise of this trend has prompted manufacturers and retailers to make
efforts to invest in production to produce products with green and clean elements, to
build green brands associated with sustainable development (Mai Anh, 2023) (22).

+) Porter’s 5 forces
+ Bargaining power of customers (high)
The supermarket sells many different types of products, and its customers are of a
wide range of ages, but mostly women and housewives, customers who buy in bulk such
as businesses or schools....can have higher bargaining power. Besides, several shops
nearby provide a diverse array of alternatives for consumers seeking to fulfil their
shopping requirements. Customers may be able to select alternatives with reduced prices
or better incentives, thereby affecting the supermarket's ability to attract and retain
customers. The bargaining power of customers can be considered high (23).
+ Threats of substitutes (high)
In this case, the substitute products of the supermarket refer to products offered
by alternative brands, sold in other local shops or available in the street markets at a
lower cost, thereby generating price-based competition. Besides, these less expensive
alternatives may be better in hygiene, durability, and taste than supermarket products.
Thus, clients are likely to change their behaviour, indicating high threats of substitutes
(24).
+ Threats of new entrants (low)
The coexistence of nearby minimarts, local shops, street markets and convenience
stores within the region suggests the existence of competition in the retail sector. The
duration of the supermarket's operation of three years implies that the obstacles to entry
can be rated low. However, the possibility of new market entrants can still exist,
particularly if they can provide competitive pricing, promotional offers, and
supplementary amenities such as online retail and home delivery.
+ Barging power of suppliers (low)
The supermarket sells a wide range of products, including fruits, vegetables, and
household supplies..., indicating that the company must import goods from multiple
suppliers. There are numerous large sources of products such as the Dong Xuan
wholesale market, or a variety of private businesses, such as Van Noi or Tam
Dat vegetable farms. Although selecting sources to optimize the costs and profits of
supermarkets is a significant challenge for the owner, sourcing goods for sale is not
difficult due to the thriving distribution systems of numerous manufacturing and
supplying units (Sapo, 2021) (25).
+ The intensity of rivalry (high)
Supermarkets operate in a competitive environment with not only local stores or
markets but also strong and well-positioned domestic and foreign competitors such as
Winmart, BigC, Circle K... The lack of promotions, loyalty programs and online sales
channels can make it difficult for supermarkets to differentiate and compete
effectively. Higher prices compared to other local stores and street market prices can also
affect its competitiveness and market share. The intensity of rivalry can be considered
high in this case (26).

*SWOT
 Strengths Weaknesses

(1) High productivity

(5) Decline in consumer satisfaction
(2) Able to offer niche or specialty
(6) Lengthy decision-making process
products
(7) Lack of distince business strategies
(3) Ability to be assertive and proactive
(8) Lack of sale promotions, loyalty
(4) Encourage task performance due to
customer programs, online sales channel
the increase in employees' obedience

Opportunities Threats

(9) Reap benefits from improved supplies

(11) + (13) + (25) Limitations when
chain thanks to the government investment
competing with other businesses
(12) + (18) + (19)Motivations of high-tech
(10) Legal risks
system development in operations
(15) Challenges in cost management due
(14) Growth in operations and customer
to inflation and exchange rates
base thanks to economic growth
(16) Lack of competive edge in digital
(17) + (19) +(22) Increase in the number
purchase
of potential customers
(20) Business downsizing when using
(21) Development of eco-friendly products
technology
(24) Benefits from various sources of
(23) Compete with alternative products
supplying and manufacturing
with lower price

Table 2. SWOT analysis

3. Comparison and effects of drivers for change on organizational change and the
affected types of organizational change
*Comparison
The similarity among these 5 changes is that all of them are planned changes. The
drivers for changes have been analyzed and compared in PESTLE, Porter’s 5 forces, and
the SWOT analysis above. Among the analyzed drivers for change, the Technological
driver and the Driver of customers have the most significant influence on the
organizational change of the supermarket.
 In terms of strengths and weaknesses of the supermarket, while they are all
internal factors and have certain impacts on the supermarket, the weaknesses including
lack of sale promotions, loyalty customer programs, and online sales channels have a
significant influence on the supermarket and become resisting forces to the supermarket’s
organizational change. Regarding PESTLE, the similarity of these changes is that they
are all external factors. However, Political and Legal have the most significant
influence on the changes, followed by other factors, while the influence of the
Environmental factor is inconsiderable. Regarding Porter’s 5 forces, these external
forces are all used to analyze the retail industry, however, the bargaining power of
customers, the intensity of rivalry, and threats of substitutes are higher compared to
2 other forces.

*Effects
Besides, the organizational change is influenced by several drivers, and they will
be analyzed as follows:
As a result of technological advancements, organizations must frequently train
their employees to acclimate to new tools, software, or procedures. The technological
driver (external) might be a challenge to the supermarket as the company has not
invested much in technology before. However, this driver for change has a positive effect
on organizational change (b): Training workers on better work ethics and skills, thereby
indirectly optimizing the profit of the supermarket. Furthermore, thanks to the
technological driver, the planned change (e) Investing in an ERP system (for small
businesses) could have a favourable condition to be applied to the supermarket’s
operational activities.
(a) Developing key performance indicators (KPIs) for staff performance
management can be influenced by both the internal and external environment. The
internal driver: the company’s organizational structure can facilitate the
identification of performance indicators for specific job functions, and the decline in
customer satisfaction and the lack of a specific business strategy may necessitate the
creation of KPIs to address these weaknesses. Besides, the PESTLE drivers can all
create favorable conditions for the development of KPI: steady economic growth, a
stable legal and political situation… thus improving the supermarket’s competitive
positioning.
The high bargaining power of customers (external) can be considered
unfavourable for the supermarket. However, thanks to this force, the supermarket’s
organizational changes: (c) Adding new goods that consumers demand and providing sale
promotions for the supermarket's loyal customers and (d) Rearranging the layout of the
supermarket to enhance the shopping experience for customers have favourable
conditions to be applied to the business. The driver associated with customers
promotes the supermarket in satisfying the customer’s needs better, attracting and
retaining customers, and making the shopping experience more convenient and
enjoyable.
Additionally, the dynamic working environment with young employees who
are adaptable and fast learners facilitates the implementation of the 5 changes, thus
creating more efficient and practical operations.

Task 2:
1. The influences of change on the leadership and individual behaviour of the
supermarket
Interventions in organizational development (OD) are procedures and programs
designed to address a particular issue. These interventions are applied with the purpose of
increasing the long-term positive changes in an organization and assisting the leader to
have effective management (Cosentino, 2022). Leadership drivers are defined as the
actions and behaviours of the leaders under consideration. Employees' leadership skills
would improve proportionally to the quality of the behaviourism-based decisions they
make based on their conscience (Northouse, 2010).
It is impossible to determine the exact number of interventions that exist. In
general, we can classify OD interventions into four main groups as follows:
 Figure 2. Organizational interventions
The five given organizational changes are categorized into 3 groups, including
human resources, strategic, and technostructure interventions. The effect of the 5 changes
on the manager’s leadership and different organizational levels will be analyzed as
follows:
Effects
Interventions Individual Manager's
Group Organization
behavior leadership
(1) Developing a key performance
indicator for staff performance x x x x
HR
management
Management
(2) Training staff for better work attitude
x x x
and skills
(3) Adding new goods that consumers
demand and providing sale promotions x x
for the supermarket's loyal customers
Strategic
(4) Rearranging the layout of the
supermarket to enhance the shopping x x x
experience for customers
(5) Investing in an ERP system (for small
Technostructure businesses) that may enhance the x x x
administration of the supermarket

Figure 3. Impacts of change on organization levels and leadership

*Individual level
 The interventions in the table all cause blind resistance at the individual level of
the supermarket, as individuals are afraid of change and may fear failure or not being able
to improve the situation. Other impacts of resistance include political and ideological
factors (Hambrick & Cannella, 1989). Political resistance may occur during
Interventions (3) and (4) due to power struggles and conflicts of interest among
employees and stakeholders. Some individuals in the supermarket may perceive these
interventions as a threat to their current authority or roles. Meanwhile, ideological
resistance might arise from other remaining interventions, as the employees might
perceive interventions as unnecessary, prefer traditional manual systems and hold
different beliefs or values regarding how performance should be evaluated.
In the long term, Intervention (1) helps increase employees' accountability and
focus and motivates them to achieve their goals. Besides, Interventions (3) and (4)
influence the employees by making them learn about the new product, adjusting the
inventories and their approach to customer assistance. Training staff for better work
and skills (intervention (2)) will impact the individual level according to the planned
changes theory (Cummings & Worley, 2014), as everyone in the organization must
reevaluate their professional obstacles, personal objectives, and strategies for overcoming
them. Meanwhile, Intervention (5) influences the employee in terms of adaptability and
technology as they need to learn and utilize the system.

*Group level
According to Cumming and Worley (2015), in the long run, team leaders will have
better control over the work processes. Regarding short-term effects, Interventions (1)
and (4) can also lead to blind resistance, as all the individuals might have the same fear
of the possibility of failing or not being able to improve the situation when implementing
these interventions. They might worry about their performance being measured and
compared against their colleagues, individuals do not fully understand the purpose,
benefits, and process of implementing performance indicators.
*Organizational level
When implementing the above interventions, besides individual and group levels,
there are several effects on the organizational level. Interventions (1) and (2) can improve
employee performance, and job satisfaction and enhance the supermarket's capability,
thus increasing the overall efficiency within the organization. In the long run,
Interventions (3) and (4) can help the organization to enhance customer experience and
satisfaction, thus increasing sales and revenue and creating a competitive edge thanks to
sales promotion for the supermarket. Besides, intervention (5) can have positive effects
on the supermarket by enhancing management activities and improving collaboration and
communication among job activities.

*Manager’s leadership
Leaders will be the ones responsible for planning and directing the task execution.
Intervention (1) aids the manager in adopting a proactive approach towards performance
management in the long run, and in the short term promotes the manager to direct and
drive accountability within the organization. Besides, Interventions (2) and (5) can have
positive effects on the manager’s leadership by helping the manager to foster a culture of
a continuous learning environment in the long term, make informed decisions and assign
tasks and resources more effectively, thus having better control over the company’s
operation.

2. Measures and evaluation

*Measures
According to Hambrick & Cannella (1989), the measures to deal with blind,
political, and ideological resistance are demonstrated in the following table:
 Type of resistance Related interventions Measures
*Provide as much reassurance about the success
Interventions (1) (2) (3) (4)
Blind resistance after changes as possible
(5)
*Allow time to pass
*Counter with negotiation: talk to them about the
benefits and rewards they can receive when they
work harder to promote change
*Trading something with something else of value,
Political resistance Interventions (3) and (4)
for example: new job position, rewards,...
*Argue long-term gain vs short-term loss, for
example: lost money for investment but gain
revenue in the future
*Counter with strong persuasion based on data,
facts, and substance, so a clear
Ideological resistance Interventions (1) (2) (5) data/report/dispatch should be prepared
*Careful prediction from and linkage to this
information is necessary
Figure 4. Measures for Overcoming Resistance
Besides, there are 3 major strategies to tackle the negative impacts on the
supermarket, including Empathy and support (understanding how people are
experiencing change), Communication (effective communication regarding changes and
their potential outcomes, can communicate through different or new channels),
Participation and involvement (directly involve members of the organization in the
planning and implementation of any changes) (Cummings and Worley, 2015). These
measures will be evaluated in the next section.

*Evaluation
+) Empathy and support
Advantages: This approach has the potential to recognize individuals who may be
struggling to embrace change and foster a frank and open atmosphere between
management and employees. This can serve as a foundation for effective
collaborative problem-solving, which is essential in overcoming obstacles to
change.
 Disadvantages: To achieve this, one must spend a considerable amount of
empathy and sufficient encouragement. This strategy also requires a willingness to
withhold judgment and perceive the situation from the other person's point of view
called active listening. This might be time-consuming for leaders who lack
empathy.
+) Communication
Advantages: Effective communication strategy can minimize speculation and
alleviate any unjustified concerns. This strategy can assist individuals in
realistically preparing themselves for any upcoming changes.
Disadvantages: Communication can be one of the most irritating elements of
change management, as the supermarket’s employees might be regularly provided
with information about ongoing operations and future, rumours, and changes…,
which leads to information overload or misunderstanding.
+) Participation and involvement
Advantages: It enhances the chances of their interests and needs to be taken into
consideration during the intervention. Additionally, individuals with a strong
desire for engagement may find the act of participating to be motivating, resulting
in an increased effort towards ensuring the success of the proposed changes.
Disadvantages: In organizations that follow a hierarchical structure like the
supermarket, a power imbalance will happen. Therefore, achieving complete
participation can be challenging as it necessitates a fair distribution of power
among all members. Furthermore, conflicting opinions may emerge due to
varying interests and viewpoints among the members of the organization.
3. Recommendations
From the above evaluation and analysis, it is suggested for the supermarket apply
all the measures mentioned in Figure 4, combined with a communication plan and
empathy & support strategy. The company has only 10 employees, so a communication
strategy can be applied through sending emails or face-to-face communication, or small
meetings frequently in 1-2 months to inform about the changes. Besides, the empathy &
support strategy can be applied by sending monthly surveys to the employees to ask
about their feelings, and celebrating successes and milestones if the employees have
exceptional efforts in creating positive outcomes, therefore enhancing their obedience.

Task 3: Forces for and against change concerning decision making

The two chosen changes from the manager’s 5 intentions are (b) Training staff
and (e) Buying an ERP system because they have a strong connection as they influence
each other and both 2 changes have significant impacts on HR and Finance activities.
1. Forces investigation
The Force Field Model proposed by Lewin (1951) has been used to evaluate the
likelihood of changes' success by analyzing the resisting and driving forces in a company.
The table below shows an analysis of grouped factors in SWOT analysis. Forces
highlighted in green are driving forces (for changes) and the red ones are resisting forces
(against changes)
 Factors Forces
(11) + (13) + (25) Limitations when competing with
Fierce competition in the
other businesses
industry
(16) Lack of competitive edge in digital purchase
(12) Benefits from policies supporting high-tech Governmental support
development policy
(9) Reap benefits from improved supplies chain thanks
to the government investment Favorable condition for
(24) Benefits from various sources of supplying and supply chain
manufacturing
(14) Growth in operations and customer base thanks to
economic growth Growing customers'
(17) + (19) Increase in the number of potential demand
customers
Tendency of eco-friendly
(22) Development of eco-friendly products
product consumption
(21) Business downsizing when using technology Downsizing
(6) Lengthy decision-making process Management's disapproval
(7) Lack of specific business strategies Potential conflicts
(20) Huge initial investment cost on high-tech
High cost of investment
application
(8) Lack of sale promotions, loyalty customer programs,
Low number of customers
and online sales channel
Figure 5. The link between SWOT and Force Field Analysis

2. Force field analysis

 Change
Driving forces Score Score Resisting forces
proposal
Fierce competition in
5 2 Downsizing
the industry
Governmental TRAINING Management's
1 4
support policy STAFF disapproval
Favorable condition FOR
4 3 Potential conflicts
for supply chain BETTER
Growing customers' WORK
5 2 High cost of investment
demand ATTITUDE
Tendency of eco- AND
Low number of
friendly product 2 SKILLS 1
customers
consumption
Total 17 12 Total
Figure 6. Force field analysis - Change 1
Change
Driving forces Score Score Resisting forces
proposal
Fierce competition in
5 2 Downsizing
the industry
Governmental Management's
3 3
support policy disapproval
Favorable condition
3 BUYING 3 Potential conflicts
for supply chain
AN ERP
Growing customers'
5 SYSTEM 5 High cost of investment
demand
Tendency of eco-
Low number of
friendly product 2 2
customers
consumption
Total 18 15 Total
Figure 7. Force field analysis - Change 2
=> Overall, the total scores of the driving forces in both 2 changes are higher than those
of resisting forces (17 - 12 and 18 - 15). The difference in Change 1 is 5 points while
Change 2 is 3 points. Therefore, it can be concluded that the manager should
implement both Change 1 and Change 2.
+) Driving forces
First, the fierce competition in the retail industry (external) and the growing
customers demand receive 5 points for both Change 1 and Change 2. According to the
SWOT analysis, the supermarket's industry environment is becoming increasingly
competitive as the company faces an increasing number of reputable regional, domestic,
and international competitors. Besides, the supermarket must also adapt as customers
become more demanding and expect smooth and efficient services. The customers’
dissatisfaction, which is directly related to employee and organizational performance,
hinders the company's ability to develop a competitive advantage. If no intervention is
done, the company may eventually fall behind or go insolvent because of being overrun
by competitors. This pressure is the driving force for the company to train its employees
to have improved work attitudes and skills, as well as invest in an ERP system to remain
competitive in the industry.
Second, the favourable condition for the supply chain, and the government
support policy (external) receive 4 and 1 point respectively in Change 1, and 4 and 3
points in Change 2. Regarding Change 1, a well-functioning supply chain depends on
skilled and motivated employees, thus promoting the change of training activities, while
the support policy for training sessions is still fuzzy, so this change receives 1 point. In
Change 2, policies supporting high-tech development facilitate and substantially promote
the implementation of Buying an ERP system, while favourable conditions for the supply
chain could reap benefits from Change 2 if it was implemented, thereby motivating this
change.
Third, customer preference for eco-friendly products receives 4 points for
Change 1 and 2 points for Change 2. Regarding Change 1, as customers prefer eco-
friendly products, supermarkets require personnel who are committed to achieving
sustainability objectives. The change of training staff to develop more eco-friendly
working attitudes and skills assists the supermarket to meet customer expectations,
enhance environmental performance, and maintain a competitive edge in the
industry. This driving force may not directly influence the decision to purchase an ERP
system. However, if the company intends to develop eco-friendly products, an ERP
system will need to be used to manage goods and production resources.

+) Resisting forces
First, high investment costs and management disapproval are the two internal
factors with the highest scores in the resisting forces group, receiving scores of 2 and 4
for Change 1; 3 and 5 for Change 2, respectively. This is because finance is crucial to
the implementation of any project and determines the project's viability. The
supermarket will be responsible for the costs of procuring, and staff training, ... If the
supermarket does not have sufficient funds for this, and if the owner does not agree due
to frequent conflicts while working with the manager, the company will be unable to
implement the change.
Next, Potential conflicts and Downsizing (internal) both receive 3 and 2 points
in both Change 1 and Change 2, respectively. Businesses will be required to make
detailed plans and pay employee benefits following labour law regulations when reducing
labour, the company may incur expenses. Even though the organization has a hierarchical
organizational structure, most employees will obey their superiors. However, there may
be internal conflicts between employees with equal positions. In 2 Changes, the Low
number of customers receives 1 and 2 points because it only impacts the evaluation of
the difference if there are changes, but not the decision to make a change.

Task 4: Recommended leadership approaches and models

+) Leadership approaches
In the given case, leaders can utilize two change leadership models and
approaches, namely situational and transformational leadership, based on the
supermarket's characteristics, the two selected changes, and the factors that influence the
implementation of change in the company.
 According to the situational leadership model developed by Hersey-Blanchard
(1969), leaders should adapt their leadership styles to the individuals they lead and their
respective skill sets, rather than solely concentrating on workplace factors. The
transformational leadership developed by James MacGregor Burns (1978) leads to
change in individuals and social systems and boosts followers' motivation, morale, and
performance using different methods.
These two types of leadership approaches and models are recommended as they
have a common characteristic of being able to adjust and cater to the requirements of
the followers. Transformational leadership inspires and motivates, while situational
leadership adjusts to the followers' readiness level. Both methods help leaders be
effective by recognizing differences among individuals and adjusting their
leadership styles accordingly. For each change, both 2 mentioned approaches will be
applied.

+) Application and relation to forces

For Change 1, the situational leadership approach can be applied by evaluating
the employees’ readiness and skills and adjusting the manager’s leadership style
accordingly. For example, if there are inexperienced employees in certain tasks or skills
(arranging goods, inventory management…) it may be appropriate to use a more directive
leadership style. As employees become more skilled and self-assured, leaders can shift
towards a delegating approach, giving them greater independence and accountability.
Besides, transformational leadership can be used to train staff by inspiring and
motivating them to embrace Change 1, thus enhancing their skills and developing a
positive work attitude. The manager can combine Communication strategy:
communicating the benefits of improved attitudes and work skills to employees. The
leader can act as a role model, thus motivating other employees.
Regarding Change 2, as same as the application of situational leadership for
Change 1, the leader can use a directive style initially and then change into delegating
one as the employees get used to the new ERP system, for example, assigning ownership
of tasks related to inventory management within the system to specific individuals. When
using the transformational leadership approach, the manager can effectively convey the
advantages of an ERP system, such as enhancing decision-making, optimizing processes,
and boosting productivity. Besides, employees can be motivated to experiment with
innovative ways of utilizing system features, thus promoting ongoing enhancement.
Regarding the relationship with drivers and resisting forces, situational
leadership can be effective when applied in the context of fierce competition in the
industry, as different leadership styles can help the leader to quickly respond to market
changes. Leaders can alleviate employees' concerns and offer clarity about their future
roles in terms of downsizing and reduce potential conflicts by implementing a supportive
leadership approach. Besides, the leader can use transformational leadership to
motivate employees to innovate and mention the importance of sustainability and
customer satisfaction, thus contributing to meeting the customers’ demands. This
approach is also effective when persuading the owner to approve of implementing
changes to the supermarket.
 CONCLUSION
To conclude, change is an unavoidable aspect when operating a business.
However, to successfully implement changes, managers must possess a carefully planned
leadership strategy and appropriate interventions. The paper has presented an initial
strategy for executing changes within the case of a supermarket. This has been done by
an analysis of the business environment and the factors that influence the change.
Subsequently, viable solutions are presented to assist the company in effectively
implementing changes.
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