Merger Of Kingfisher Plc Business Essay

Merger Of Kingfisher Plc Business EssayKingfisher Plc is one of the major retailers in UK managing over 600 stores and handling over s flip surfacety-five thousand employees. At present, the lodge is the leading provider of womens wear and lingerie in the United Kingdom. In the argona of other appargonl, these form incurred a considerable amount of growth. The troupe overly provides for solid food retail. The company sells a wide array of food products from groceries to ready-to-cook meals. Nowadays, there have been a considerable amount of varys in the general dodge of the company. Nonetheless, it still holds true to the ba go down principles of the company. Such principles accommodate the religious offering of the wide selection of high-quality products which argon considered chic and classic with the more or less logical prices in the market.Merger of Kingfisher Plc with DIY Supermarket-To competerivals and to respond to the lurchs in the external milieu of the cons titutions the charge of the KINGFISHER LTD and the DIY Supermarket are planning to merge into a signal entity. Under the plans, KINGFISHER LTD would be re branded Kings and DIY Supermarket plc. KingsDIY Supermarkets and consist of two operating subsidiaries, Kingfisher Pl waddDIY Supermarkets. Sava Centre particular testament be owned by Kingfisher Ltd., and DIY Supermarkets Supermarkets Limited impart be re branded KIngfisher Ltd, being owned by DIY Supermarkets (HIGHSON, 2008)The Combined assembly will have 1,300 stores, although they should be prepared to sell 300 so as to not refer the deal to the Competition Com care. It will be the UKs second largest retailer (behind Tesco), the UKs largest clothing retailer, and the second largest supermarket chain, with a market make out of over 20%.(HIGHSON, 2008)The report will analyse the merger military operation and the switch management accomplish and as a convince charabanc I will develop the transport strategy for the K INGFISHER LTD to manage the wobbles in the organization as a result of the merger between the twain memorial tablets. I will analyse unalike samples of qualify to implement the interpolates rough-and-readyly in the KINGFISHER LTD and also develop the strategy to need stakeholders in the transport process to make diversity more telling and access the ca physical exercises of tolerant to metamorphose and develop the processes which can be implemented to boil down loathsome(a) to heighten being implemented.Models of dislodge management in that location are conf utilise models of the motley developed by the researchers to develop and implement in effect(p) budges in the organization to compete in the external environment of the organization. thither are following models of the change which can be used to implement changes in the given case of KINGFISHER LTD. in the veritable economic environment the organisation is veneering strong competition from the rivals. T here are the following models which I will be using to implement the change in the KINGFISHER LTD.THE THREE-STEP mold OF salmagundiIn developing this model, Lewin (1947ap. 228-9) noted that A change towards a higher level of group cognitive process is frequently short lived subsequently a short in an arm group life briefly return to the previous level. It indicates that it does not suffice to define the object of plan change in-group performance as the reaching of contrary levels.For Lewins therefore, successful change involves three footmarkUnfreezing the present levelMoving to the fresh levelRefreezing the freshly levelFigure 1.1 Kurt Lewis model of changeSource Online (accessed on 11/08/2012). washstand P Kotters eight travel to successful changeAmerican prat P Kotter (b 1947) is a Harvard Business School professor and leading brain and author on organisational change management. Kotters highly regarded books Leading heighten (1995) and the follow-up The Heart Of t ransform (2002) describe a jockstrapful model for understanding and managing change. Each stage acknowledges a key principle identify by Kotter relating to lots response and approach to change, in which people see, feel and therefore change.Kotters eight step change model can be summarised asIncrease urgency inspire people to move, make objectives real and relevant. come along the guiding team get the refine people in positioning with the right emotional commitment, and the right mix of skills and levels.Get the vision right get the team to establish a simple vision and strategy, strain on emotional and creative aspects necessary to drive service and efficiency. channel for buy-in Involve as numerous people as possible, communicate the essentials, simply, and to petition and respond to peoples needs. De-clutter communions make technology work for you rather than against. place action Remove obstacles, enable constructive feedback and lots of support from leaders rewa rd and recognise progress and achievements.Create short-term wins Set aims that are easy to achieve in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.Dont let up Foster and incite determination and persistence on-going change encourage on-going progress reporting suck up achieved and future milestones.Make change stick- Reinforce the survey of successful change via recruitment, promotion, and new change leaders. Weave change into culture.Relevance of the selected models of change to the Kingfisher PlcThe preceding(prenominal) given models are really significant for the inclineing out of the change in the organization as the KINGFISHER LTD and the DIY Supermarket are different organizations and while combining the two organizations will face several problems regarding the implementation of the changes in the organization.Like it or not, the changing economy will necessitate drastic reorganization possibly delinque nt to downturns in the economy.Lewins model could be used by managers of the Kingfisher Plc to more expeditiously implement any organizational changes. For example, suppose that a securely is veneering the prospect of downsizing due to a slow market. In the archetypal step, unfreezing, senior management could inform any employees via the company intranet as advantageously as through informal Townhall style meetings of the serious economic challenges facing the organization. Input gathered from employees as well as from subjective audits would indeed be made available to all employees. The second step, change, would then be implemented, virtually equally in the form of reorganization involving the elimination of some positions. In the final step, refreezing, intra-organizational adjustments would be made to accommodate the new organizational work flow. Any employees who have been terminated could be offered post-employment re learning or vocational assistance. Most important ly, senior management ofKingfisher Plcwould need to demonstrate to the be employees the efficiencyand necessity of the new reorganization.Selection of Model to be used to implement change in KINGFISHER LTDLewins three step model of change involves developing a model for the driving change andlearning to either pull wires the process or enhance its effect. According to Levin the first step in the process of changing behaviour is to unfreeze the quick situation or status quo. The second stage is to move the target system to a new level of equilibrium. near assistance to this stage can be assisting stakeholders with seeing the benefit of interrupting the status quo. In addition, the negative effects of rest the same level can be driven by important leaders. The third step of Lewins model is to freeze thought after the change takes place at a new level.As a change manager of the Kingfisher PlcI can use this model in relation to the changing economy by melding their workforce to ex pect change and embrace its value. There are few aspects of life that are marrowly negative and people must be educated to see this. By looking at Lewins force field depth psychology I can use this data to help myself and my employees embrace change. As for the aspect of coping with uncertainty, the anxiety a person experiences with the current economy hit people on many levels. The goal is to fragment the anxiety into workable situations for people to deal with. observe tools to monitor changeTo monitor the impressiveness of the implementation of the change in the organization I will use different monitoring tools. I will develop the small targets and the goals to be achieved to monitor the performance by analysing the completion of these goals and compering the actual performance with the targets.The financial performance will also be analysed to access the impressiveness of the change process and it will be compared with the previous performance of the organization. strategic al intervention strategies in Kingfisher PlcAn intervention is a set of sequenced and planned actions or events and planned actions or events intended to help the organization intended to help the organization increase its impellingness (Cummings, Christopher G. Worley, 2008)The strategic intervention is the set of the planned move to be taken by the organization to develop effective strategies for the organization to be more adapted and effective in the market. There are different types and levels of the strategic intervention being implemented in the organizations.There are various types of the interventions which can be implemented on the KINGFISHER LTD to make the organization more effective and competitive in the market. Theses interventions are as given below,Human process interventionTechno structural interventionsHuman resource management interventionsStrategic interventionsThe human race resource process intervention includes the developing processes for the coaching, training and maturation, team build process consultation, conflict resolution, intergroup relationships and large group interventions.The techno interventions include implementation of the technologies in the organization and these also include the downsizing, structural design development, reengineering, employee appointment, and developing effective work design.There are different steps which can be taken by the Kingfisher Plc for the growth and improvement of the human resources of the organization like setting goals, performance appraisal, rewards system development found on the performance appraisal, career planning and development, managing workforce diversity and employee welfare.The structural intervention include the following steps-Integrated Strategic Change Integrated Strategic Change-Mergers and Acquisitions Mergers and Acquisitions-Alliances and Networks Alliances and Networks-Culture Change Culture Change-Self-designing Organizations Self-designing Organizations- Organization instruction and Knowledge Organization Learning and Knowledge ManagementWhich change interventions to use is an important consideration. Change ultimately entails the deployment of a range of levers covering all the organisational subsystems shown in the preceding(prenominal) change models appropriate for managing change in Kingfisher Plc. abandoned the interdependency of these subsystems, it is difficult to change one part in isolation.Transformational change initiatives in particular, which require a change in the shared assumptions and beliefs of an organisation, are more likely to fail if those leading change focus on changing just structures and systems, paying little attention to softer levers and mechanisms such(prenominal) as symbols, rituals and routines. The strategic intervention can be used to identify which change levers to use.Interventions need to be designed to remove the barriers to change in the existing state of the organization, and to create the new structures, systems, routines, rituals, symbols, and stories to effectively implement change in the organization. Communication, education, training and personal development initiatives will also be requisite to help individuals undertake the changes require of them. The greater the extent of change, the more such initiatives will be required.Realignments whitethorn still require a change in the nature of the work that people do and the outcomes they achieve, such as levels of productivity and sales or customer response of the Kingfisher Plc.THE TRIGGERS TO ORGANIZATIONAL interchangeMainly organizations have learned to make minor, day-by-day changes to adjust to unplanned or anticipated events and it is changes of some magnitudes, particularly where they are undertaken quickly, that trend to be the most problematic. These are also called as the factors leading to the change implementation in the organization. These factors determine the need for changeq. These can be inborn and external triggers or factors of change management to implement the change. There are following factors bear upon the strategy of the Kingfisher Plc leading to the change management in the organization.EXTERNAL TRIGGERS TO CHANGEIt is important to stress that environment is not just everything out there. to dominating between those parts that are usually considered more important by organizations and those that are not, the terms task environment and wide environment are borrowed from a classic study by Dill (1958). Wide environment is one step removed from the organization, whereas task environment is that Part of the total environmental that is most relevant to organization in terms of achieving its goals or objectives. Because its impact is experienced as direct and pressing, this is where firms tend to concentrate most of their attention (Dill 1958). There are different types of the factors which affected the Kingfisher Plc and leads the organization towards implementation of the change in the origination, like the macro-economic factors such as political, legal, environmental and fond factors and the competitive environmental factors as described by Porters five forces, competitors, holy terror from substitute, supplier or customers and the competition environment of the Kingfisher Plc.INTERNAL TRIGGERS FOR CHANGEChange to process factor often occurs because of the impact of triggers in the task environment. Some however can arise internally and act as spine for change in their own right. Example of those can require internal change are innovations that improve the way that something is manufactured, or allow a service to be delivered at a low cost, or the development of new products that enable the firm to diversity. There are following internal factors which are deriving the Kingfisher Plc for implementing change in the organization,ProfitabilityDevelopment of new products or processesJob redesignThese all above determined inner(a) and externa l factors causes the Kingfisher Plc to implement change in the organization to achieve the goals and objectives of the firm in the long run.Resource implicationThere are different resources which are required by the Kingfisher Plc to develop and implement effective change strategy in the organization. These factors include the Human resources like the workforce and the managers required to effectively manage the changed structure and business processes of the Kingfisher Plc. This also includes the hiring, training and development, rewarding, cause and retaining the human resources of the organization. Other resources required to effectively implement change are physical resources e.g. equipment, vehicles, buildings financial resources e.g. costs of training, redundancy costs, relocation costs new building, refurbishment of existing buildings. The Kingfisher Plc has to consider the effectiveness and availability of these all above given factors to effectively and efficiently impleme nt change in the organization.The softness of the management to effectively manage the resource implication while managing change can lead the organisation towards the failure instead of success. Because the resources play a vital role in the development of the organization for example without the effective human resources the organization will not be able to carry on the organizational functions or the quality of these actions will be very poor leading to the failure of the process. Similarly the financial resources are also very important for implementation of the change in the organisation because the finance is the soul of the organisation and organization can survive without profitability yet it cannot survive without effective finances.Systems and strategies to involve stakeholdersThe Kingfisher Plc must develop appropriate systems and the strategies to involve the shareholders of the organization in the process of implementation of change in the organization. These systems have different processes through which the management can effectively involve the stakeholders of the organization in the process of the change to make the implementation more successful.There are following stakeholders of the Kingfisher Plc who can influence the strategies of the organization and have important effect on the performance of the origination,ShareholdersCustomersSuppliersEmployeesCommunityGovernmentCompetitorsI will analyse the immenseness and the power of all the stakeholders and these will be prioritised based on their influencing power to affect the change management process of the organization. As a change manager I will use the sic steps model to involve the stakeholders in the change process of the Kingfisher Plc. These steps include the identification of the stakeholders, prioritising stakeholders, mapping the profile of the stakeholders, develop communication and employment strategy to involve stakeholders in the process of change, optimising their support b y effective leadership skills and the last one is the monitoring change.Change Management systemTo effectively implement the changes and to make the change management more productive, I have developed the change strategy which consists of different steps or systems to involve the stakeholders effectively in the change process to make the change process quick, efficient and productive. These steps include,Preparation of change the first step is the preparation for the change to be implemented and this will include the analysis of the internal and external forces effecting the change and then using the effective communication to communicate the need for change with the stakeholders of the organization.Building vision for change the coterminous step is the development of the vision to motivate the stakeholders of the organization towards the change process. The illumine vision can develop the change more effectively and good because it motivates the twisting individuals towards ac hievement of the stated goals.Path of change the change strategy will be developed and all the stakeholders will be involved in the decision making criteria so that they can understand the importance of change and they can play their role as participants in the change process.RESISTANCE TO CHANGEWoodrow Wilson If you want to make enemies, try to change something, advised. When seeking to Change an organization, it is strategy or processes, leaders run into Newtons law that a body at rest tends to stay at rest, advocates for change is greeted with suspicion, anger, resistance, and even sabotage.4 (www.1000ventures.com). But, Richard Branson has been exceptionally competent in handling corporate transformation and change (Manfred, 1998). He is able to achieve this because he envisions, empowers and energizes his employees. Secondly, the structure and design of his companies helps him to embed effective control and reward systems.An organization is able to create an effective environm ent, both internally and throughout its supply chain, which encourages an opportunistic position to be adapted. On the other hand, despite how friendly an organization is to change it will still face a degree of employee, supplier, distri thoor, stakeholder and consumer resistance to change it may manage to reduce the frequency and potency of such resistance but it will never eradicate the fear of unknown.There are different reasons due to which the employees and the customers of the Kingfisher Plc resisted to the change being implemented by the management of the Kingfisher Plc in all the levels of the organization these factors which causes the resistance to change. These factors can be summarised as follows, pretermit of confidenceLack of trustLack of the competenciesFear of loss of something of valueIneffective communication by the managementLack of clarity of the change being implemented by the organizationStrategies to reduce resistance to change-The Kingfisher Plc must develop effective communication strategies and the processes to implement the change and reduce resistance regarding the change being implemented in the organization. These strategies include the involvement of the different stakeholders in the process of the change management to make them propel and focused towards the change being implemented.There are different steps which Kingfisher Plc should take while developing change strategies in the organization,Development of the effective mission and Vision regarding changeDevelopment of the communication strategies to communicate mission and vision of the organizationInvolve all the stakeholders through the six steps defined aboveReducing the concerns of the staff and people by providing them training and effective skills to tackle with the change and making them more competent