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Management

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CLASSIC INTERIORS
CLASSIC INTERIORS

Contents 1.0 Introduction 1 2.0 Terms of Reference 1 3.0 Procedures 1 4.0 Findings 1 4.1 PESTEL Model 1 4.2 Opportunities and Threats to the administration department 2 4.3 Analysis of 2 4.4 Change Management Strategies 3 4.5 Possible impacts of resistance to change on the administration department 3 4.6 Strategies to reduce resistance 3 5.0 Conclusion 4 6.0 References 5

1.0 Introduction

I have been asked by the partners, Izzi McDonald, Tomi Ajetunmobi and Alasdair Young at Classic Interiors to attend their next meeting to discuss the future of the company. They have also asked to know my views on any possible developments of the company and my views on the administration department. I will be preparing a briefing that will them be circulated to the partners, that they will then use for the basis of their discussion at their next meeting.
2.0 Terms of Reference

I have been asked by Tutor Chris Kennedy to write a briefing report using the previous case study about Classic, that will include using the PESTEL model to help analyse any factors that could affect the future of the organisation and to also talk about any opportunities and threats that are relevant to the administration department at Classis Interiors, I will then analyse these and recommend changes that could address any of these issues.
3.0 Procedures

The information in my report I have gained from: * The VLE Student Pack * Tutor Notes * Classic Interiors case study
4.0 Findings
4.1 PESTEL Model

PESTEL analysis is a tool used by companies to identify and analyse any change in the strategic or business environment and the abbreviation stands for Political, Economic, Social, Technical, Environmental and Legal. The external part of PESTEL is the issues that a business has no control over, below is what each of the letters means and a brief description in the ways each affects a business.

The Political side of PESTEL relates all political issues like employment laws, tax policies, trade restrictions, environmental regulations and tariffs. If there are changes in employment law then this can have an effect on organisations e.g. the new parental leave that is going to be introduced in 2015, this allows both father and the mother to be entitled to paid leave, so this could have a negative effect on the organisation because as well as having to pay for maternity/paternity leave the company will also have to cover the cost of having to have someone to cover these absences, therefore costing the company more money.

Economics factor covers issues like recession, minimum wage, wage rates, unemployment and taxes. Recession is one of the big issues that has a major effect on all companies because as the recession runs its course it can cause the company to have to try and save money in different areas to be able to keep the company running, this can include having to stop hiring new staff, buying new equipment and also having to cut the costs of research and development of the company even trying to cut costs is not always enough to keep a company from closing when going through a recession.

The sociological issues that can affect businesses are things like attitudes to green products, product quality, customer service and religion and beliefs, at Classic Interiors since their business is based on working with people in their homes by either giving them advice on their decorating, carrying out any renovations or supplying products then changes in these issues could affect them e.g. if customers maybe only want domestic products and not foreign ones but the company cannot guarantee that then this could lose valuable customers.

Technological, this factor thinks about all events that affect technology. With new technology coming out all the time it usually becomes out dated quickly, so this is something that has to be thought about. New technology can be a good thing for a company because it will allow them to keep up to date and be able to compete against other companies and allow the company to push the business forward. It can also have a negative effect because with new technology it may mean that current employees may not know how to work the new technology, this could be costly for the company as it means having to train existing employees or have to hire new employees.

External environmental factors usually involve issues to do with weather, climate change and endangered species and these issues can cause problems with deliveries if the weather is really bad especially if those at Classic Interiors are importing any products this could cause delays in the customer projects being completed and cause customers to become upset and worried. 4.2 Opportunities and Threats to the administration department

Opportunities

Threats

4.3 Analysis of

4.4 Change Management Strategies

Causes of resistance to change

Fear of change – this one of the most common reasons for resistance and it is because it is fear of the unknown and if people are not sure what is going on and are thinking that the change may not work then they are less likely to follow without some sort of resistance.

Communication – when it comes to making changes there has to be plenty of communication, lack of communication worries people as they do not what is happening and if it is going to affect them in any way.

Change to routines – people like their routines it makes them feel comfortable and secure, so having to do things a bit differently will take people out their comfort zone, this then becomes a reason for resistance in the workplace.

Trust – this will cause resistance if people do not believe that they or the company can successfully handle the change, this could be because of a bad experience in previous employment or within their current employment.

Change in the status quo – an example of this resistance is that if anyone was to feel that they were worse off at the end of the change that took place the they are not likely to give you their full support and also if anyone believe that the change favoured anyone else more than them, then that may cause the person to feel anger and resentment. The solution? Lots of focus groups. Listen carefully for emotions and provide support. This may be in the form of counselling or coaching.

4.5 Possible impacts of resistance to change on the administration department

The above causes of resistance could impact the administration department

4.6 Strategies to reduce resistance

To reduce any resistance from the administration team at Classic Interiors I have recommended three strategies below to help with this:

* You could research other companies that have made the same changes and been successful and arrange for a presentation seminar that will show the administration team how previous companies dealt with it and how it turned out to give the employees a bit of reassurance that it can and will work and allow for the employees to ask any questions they may have.

* Arrange training for any of the administration department that are unsure of any of the changes that are being made in their department and anything new being asked of them, so that it builds their confidence and makes them feel more at ease over the changes.

* Weekly team meetings should be arranged, this will allow for regular communication between the partners and the administration team, where they can discuss any issues that have come up during the changes implemented and come up with solutions to these issues.
5.0 Conclusion

I conclude that if the right research, planning and preparation in

6.0 References

http://www.publishyourarticles.net/knowledge-hub/business-studies/the-economic-factors-affecting-business-environment.html

http://www.investopedia.com/articles/economics/08/recession-affecting-business.asp

http://learningebusinessinitiative.wordpress.com/2013/04/01/technological-factors-affecting-businesses/ http://benefitof.net/benefits-of-technology/ https://www.fpb.org/business-support/changes-business-regulations

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