ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 24: Understanding and Leading Change

Submission date 08/10/2023 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Nguyen Thi Hoai Thuong Student ID GBS210986

Class GBS1004C Assessor name Truong Ngoc Thinh

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 TABLE OF CONTENTS

I. INTRODUCTION................................................................................................................................................. 4

II. THE MAIN.......................................................................................................................................................... 4

1. Contemporary examples of organisational change and their impact ........................................................... 4

2. An overview of the selected organization..................................................................................................... 5

3. An analysis to identify external and internal sources of changes and compare how they affect the
organization’s strategies ...................................................................................................................................... 7
3.1. Burke - Litwin Model .............................................................................................................................. 7
3.2. External Factor ....................................................................................................................................... 8
3.3. Internal Factor ....................................................................................................................................... 8
3.4. Transformation Factor ........................................................................................................................... 9
3.5. Short-term ............................................................................................................................................. 9
3.6. Long-term ............................................................................................................................................ 10

4. An evaluation of how related drivers of change affect leadership, team, individual behaviors and their
responses ........................................................................................................................................................... 10

5. Recommendations with valid justifications for the company ..................................................................... 11

III. CONCLUSION ............................................................................................................................................... 12

IV. REFERENCES ................................................................................................................................................ 12

 I. INTRODUCTION

As recently appointed the Board of Directors of Alibaba Group has assigned a change agent to evaluate how well-
prepared the company is for a transformation plan. The impact of internal and external changes on the company's
strategy and operations is compared in the study. The aim is to build the most effective operational strategies
and strategic growth and development models. The research covers the causes of change, their effects on a
corporation's strategy and operations, and their barriers. It also describes how various leadership philosophies
are applied while leading transformation projects. Additionally, the paper contrasts the effects of change on
Alibaba Group and Amazon while emphasizing the varied leadership strategies applied to control change inside
the company.

II. THE MAIN

1. Contemporary examples of organisational change and their impact

Organizational change management involves modifying key aspects of a firm's structure, including culture,
operational infrastructure, and internal procedures, to guide transformation to a successful conclusion. The
technology industry has a significant impact on local and international businesses, particularly in e-commerce,
cloud computing, study, and consumer data management. Digital technology is affecting many organizations as
they grow, offering various services to sustain operations and effectively serve clients. This process is expanding
as technology assists enterprises in managing their workload (Tapchinganhang, 2022).

For example, organizational change, particularly digital transformations, is driven by internal agents who
understand the organization's purpose and the power of available technologies. These agents actively look for
new technologies that are beneficial and provide internal technology change agents the authority to put them
into practice. Larger digital transformations frequently need for the assistance of external change agents with in-
depth knowledge of certain technologies and organizational change. These agents assist the development of the
organization's vision, the implementation of technological elements, the onboarding of important internal
agents, and controlled continuing support for new technology (Sine, 2017).

Moreover, transformational change is a rapid and dramatic change in a business, often resulting from new
challenges, changes in the environment, or internal issues like systemic harassment. Examples include
transitioning from physical to digital platforms, redeveloping websites, establishing new departments, or moving
from silo to matrix structures. In the workplace, transformations can occur gradually, starting with informal
management structures and gradually increasing formal hierarchy as the business expands (Sherman, 2020).
 2. An overview of the selected organization

Alibaba Group

Figure 1: Alibaba Logo (Alibabagroup, n.d)

Alibaba Group was established in 1999 by 18 individuals, including Jack Ma, with the goal of leveling the playing
field for small businesses via the use of Internet-based innovation and technology. Alibaba Group has developed
into a digital ecosystem since the launch of its initial website, with operations in local consumer services, cloud
computing, digital media, and innovation projects (Alibabagroup, n.d).

Mission: “To make it easy to do business anywhere”

Vision: “ We aspire to be a good company that will last for 102 years. We envision that our customers will meet,
work and live at Alibaba.” (Alibabagroup, n.d)

Alibaba Group Chairman and CEO Daniel Zhang revealed his leadership changes and vision in a letter to staff
members. Under Jiang Fan's direction, the recently established International Digital Commerce will unite
Alibaba's global retail and wholesale operations. Additionally, the new China Digital Commerce, which integrates
Alibaba's China consumer-facing and wholesale marketplaces.

Amazon.com

Figure 2: Amazon.com Logo (Amazon, n.d)

The epitome of electronic commerce is Amazon.com, a producer of electronic book readers, online retailer, and
Web services company. Its main office is in Seattle, Washington. Amazon.com is a sizable Internet-based company
that offers a variety of products, including toys, electronics, housewares, books, music, and movies. It also acts
as a middleman between other retailers and its millions of consumers. Renting online storage and processing
capacity, or "cloud computing," is a part of its Web services business. A small percentage of all Internet traffic in
North America passed via Amazon.com data centers in 2012 due to its significant online presence (Hall, 2023).

Mission: “To be Earth's most customer-centric company.”

Vision: “To be earth's most customer-centric company; to build a place where people can come to find and
discover anything they might want to buy online.” (Pereira, 2023)

Alibaba Group Amazon.com

The operations strategy of Alibaba Group

outlines objectives and criteria for managers to Amazon's high level of operations
adhere to in order to ensure the efficient management efficiency is crucial for its success
planning and coordination of operational in the e-commerce sector. To maximize
activities. Furthermore, the requirements for productivity, the company must address the 10
implementing a new quality management strategic decision areas of operations
system are determined by the operations plan. management. As Amazon grows and
Operations Throughout various phases of its growth, diversifies, the complexity of these decisions
Alibaba Group employed a variety of quality increases. Despite worldwide development
management systems, with each system's and a wider product range, continuous
selection dependent on the tasks completed at improvement can help maintain sufficient
a given point in the organization's support for operations, demonstrating the
development. As a result, operational activities need for technologically enabled productivity
frequently assist the Alibaba Group's business for optimal service efficiency (Ferguson, 2023).
strategy (Johnston, 2023).
An original viewpoint of Alibaba on the The focus of Amazon's business strategy is on
problems encountered by customers and long-term projects and long-term thinking,
enterprises is necessary for a successful which stresses long-term thinking. The
Strategy company strategy in today's cutthroat business business makes investments in long-term
environment. A collaborative business culture projects like AWS, which is now a successful
can adapt to shifting environments and foster business. Amazon's promise to attaining net-
growth, as is the case with Alibaba. When faced zero carbon emissions by 2040 and its financial
 with obstacles like Chinese commerce's support for renewable energy initiatives like
bureaucratic regulations, businesses like wind and solar farms demonstrate the
Alibaba may serve as an inspiration. Use the company's dedication to sustainability. These
most recent developments to your advantage programs help Amazon's company not just now
and incorporate them into your company but also in the future, assuring its success in a
strategy, as demonstrated by Jack Ma's attitude rapidly changing environment (Riya, 2023).
to the market. You may establish a prosperous
and cutting-edge business by looking to others
for inspiration and utilizing technology to its full
potential (Moran, 2020).

3. An analysis to identify external and internal sources of changes and compare how they affect the
organization’s strategies
3.1. Burke - Litwin Model

The Burke-Litwin model, developed in the 1960s by W. Warmer Burke and George H. Litwin, is an organizational
change framework that ranks drivers of change by priority, dividing them into five stages: input, external
transformation, internal transaction, individual and personal aspects, and output, based on their influence on
organizational performance(Cuofano, 2023).

Figure 3: Burke - Litwin Model (Swift, 2023)

 3.2. External Factor

Alibaba: Alibaba's customer buying patterns are influenced by factors such as inflation, interest rates, and
employment trends. Increased spending indicates rising buying power and consumption trends. However, rising
unemployment may lead to decreased disposable income and a skills gap, affecting consumer purchasing and
product prices. Higher education expands the talent pool and raises customer behavior knowledge, resulting in
favorable consumption habits. Alibaba targets nuclear families with two older children, with parents as decision-
makers. Marketing, store manager evaluations, and suggestions influence these decision-makers, allowing
Alibaba to use push and pull methods for appeal (247caseanalysis, n.d).

Amazon: Amazon's online retail success is influenced by social shifts, including income disparities, consumerism
in emerging nations, and internet shopping patterns. While wealth disparities may pose threats due to static
disposable income levels, increased disposable income can boost sales. As more people adopt online purchasing,
consumption in developing economies could benefit Amazon's competitive strategy and expansion ambitions.
The state of the economy, both online and offline, impacts Amazon's success. Major markets, particularly the
United States and Europe, offer opportunities for growth, while emerging nations offer opportunities for rising
living standards. The potential Chinese economic slowdown poses a threat, as Amazon only sells a small selection
of goods to Chinese customers. Despite these challenges, Amazon has other development prospects in emerging
nations, including rising disposable incomes, which could improve its financial performance (Greenspan,2023).

3.3. Internal Factor

Alibaba: Alibaba, a global e-commerce giant, leverages economies of scale to reduce costs and boost productivity.
Its diverse business portfolio includes digital media, entertainment, cloud computing, and e-commerce, reducing
reliance on a single company. Big data analytics and artificial intelligence enable it to analyze customer behavior
and improve user experience. However, Alibaba faces regulatory challenges, including a $2.8 billion penalty for
antitrust violations in 2021. Concerns about fake goods on Alibaba's platforms threaten its reputation and
consumer trust. The company must also address data privacy and security concerns. Alibaba's success in the
Chinese market is attributed to its ability to provide high-quality goods while meeting the demands of its target
market. The company must navigate the intense industry rivalry and provide a variety of deals and discounts to
attract a large audience (Thestrategystory, n.d).

Amazon: Consumer trust in the technology industry and its goods is maintained by this powerful brand. A variety
of products and services are available through Amazon's commercial diversification, including private-label
products, consumer electronics, cloud computing, the distribution of digital content, and online and offline retail
services. This diversification develops complementary revenue streams that keep Amazon stable in the face of
rivalry. Due to its strong capacity for technical innovation at a quick pace, Amazon can strategically adapt to
market developments. Through the contributions of human resources and Jeff Bezos' leadership, the company
culture fosters this innovative capabilities. These internal elements promote corporate growth and Amazon's
mission and vision objectives. Additionally, the drawbacks of Amazon include a business strategy that is easily
copied, a small worldwide market share, and a small brick-and-mortar footprint. This capacity to be imitated
fosters competition and limits Amazon's ability to increase its profits in the worldwide market. The company's
weak global footprint and lack of penetration in developing areas hinder its ability to expand in non-online
sectors. Despite these difficulties, Amazon hopes to expand its offline operations with the purchase of Whole
Foods Market. Organizational reforms, strategic planning, and management changes could be necessary to
address these deficiencies (Greenspan,2023).

3.4. Transformation Factor

Alibaba: Alibaba is making the most of organizational restructuring, generative AI, and online commerce trends
by utilizing digital transformation. The three strategic pillars of the corporation are globalization, cloud
computing, and consumption. The business prioritizes growing its customer base, enhancing supply chain
performance, and redesigning the Taobao app to emphasize retail discovery. A significant player in the worldwide
cloud computing business, the Cloud Intelligence branch seeks to strengthen its position and promote growth.
These tactics are intended to promote creativity, flexibility, and shareholder value (Zen, 2023).

Amazon: Other businesses are under pressure to improve their digital offerings as a result of Amazon changing
customer expectations for online buying. Customers' expectations have been strongly affected by the company's
delivery strategy, with 60% of respondents believing that same-day delivery ought to be available everywhere.
Customers' expectations have significantly changed as a result, with 61% of consumers anticipating speedier
service when they purchase online. Amazon's emphasis on speed and simplicity has preserved client loyalty and
established a benchmark for competing firms. Additionally, 42% of consumers expressed interest in Amazon Echo
and Amazon Dash, and 66% of customers said they would spend more at an online store that is digitally inventive.
To capitalize on the need for innovation, retailers should follow Amazon's example and make investments in
cutting-edge technologies (Figaro, 2017).

3.5. Short-term
Alibaba: Analysts anticipate earnings of $7.99 per share and $135.54 billion for Alibaba's entire fiscal year,
representing a 6.86% growth in both EPS and sales. This comes after a 1.89% rise from Q2 and a 0.63% rise from
Q1 of previous year. Recent adjustments to analyst estimations show confidence about Alibaba's future business
prospects as they take into account the dynamic nature of short-term business developments. Investors have to
be informed of current adjustments to these projections (Zacks, 2023).

Amazon: Amazon goals are clearly defined and that Amazon short-term goals support long-term objectives. A
company's short-term goals will be very different depending on the long-term strategy. for instance, maintained
marginal profitability by placing more emphasis on expansion and user acquisition than on immediate profits.
Their short-term objective is to become the market leader and control a substantial piece of the online sales
market, thus they maintain prices as low as possible, often to the point of losing money (Heusinger, 2018).

3.6. Long-term

Alibaba: Alibaba Group is planning to allocate more resources to its online shopping platform Taobao, smaller
merchants, and value-for-money products compared to its business-to-consumer site Tmall. This strategy may
put near-term earnings pressure on the company but boost its long-term competitiveness. The move could shift
a larger share of traffic to Taobao, as brand advertising may decline. In the long run, small merchants may increase
monetization, as PDD Holdings PDD raises its take rate to 3.80% in 2022 (Tam, 2023).

Amazon: To increase productivity and customer happiness, Amazon is concentrating on cutting costs and
eliminating ineffective programs. To cut expenses and boost income, the corporation is switching from a national
to a regional fulfillment network. Targeted advertisements are made possible by Amazon's size, position as the
top e-commerce platform, and technological investments, which draw advertisers. Amazon's advertising division
has outperformed the market trends because to this technique. Amazon, with $35 billion in annual commercial
sales and a global footprint, is a long-term growing organization even if 80% of retail purchases still take place
offline (Eswaran, 2023).

4. An evaluation of how related drivers of change affect leadership, team, individual behaviors and
their responses

Alibaba's leadership style is criticized for its unwillingness to accept and consider the opinions of employees, a
flaw that affects employee motivation and performance. To improve, leaders should create an environment of
trust by discussing and defining expectations with employees, allowing them to understand their expectations
during their daily work (Liu, 2020). This improves motivation and performance, reducing the need for leadership
micromanagement. Regular communication, support, and engagement in decision-making and goal setting are
essential for leaders to enhance their credibility. Regular feedback and monitoring employees on their goals are
also crucial. Research shows that the threshold for seeking help from a leader or colleague has increased, which
correlates with performance and motivation to influence each other. Therefore, there is a need to improve leader
seriousness, team readiness, and communication in the environment to enhance employee motivation and
performance (Linh, 2023). Alibaba also demonstrates how such a shift in an individual's behavior is influenced by
factors related to the promotion and the consumer, which provides insight into more effective promotion
strategies (Zhang et al, 2020). Our study of price promotions on one of the largest retailing platforms in the world
is economically significant, especially given that the prior literature primarily focuses on price promotions in brick-
and-mortar and mail-catalog channels offered by one retailer. Finally, as online retailing platforms become more
significant in the economy.

The leadership process in construction businesses has been dramatically influenced by digital transformation,
resulting in more management roles and more employee motivation. Amazon's CEO is dedicated to introducing
new working practices and abilities to the company because she appreciates the impact of digital change. A clear
strategy that pinpoints the points at which value is generated, transferred, or destroyed must underpin digital
reinvention in order to address the value that the firm offers to consumers through its goods and services. Success
depends on identifying and assessing current assets and comprehending client wants. For instance, Amazon first
offered convenience and an unheard-of assortment, but after realizing where its true value lay, it was able to
branch out beyond books. This strategy aids organizations in adjusting to the evolving digital transformation
scenario (Dias, 2017).

5. Recommendations with valid justifications for the company

Both the seller's current system management repository and the user focus profile system settings of different
social media platforms must be compatible with the modification proposed for Alibaba and Amazon. A logistics
network needed to be established, and its transaction system required to support discounts and customer-
designed programs. Organizations may reduce the negative effects of change by putting several measures into
place. These comprise putting in place a support system to assist staff with any problems brought on by the
change, assessing the impact at various organizational levels, and creating plans to deal with any unfavorable
outcomes. In order to reduce resistance to change, effective communication is essential since early employee
notification can lessen opposition. Employees need enough training to adapt to changes successfully because
they need to know how the new system will work and how to get the required training. Unexpected outcomes
may arise and negatively impact the organization if the organization does not give proper training. Organizations
may lessen the negative impacts of change on their employees by putting these steps into practice.

III. CONCLUSION

In conclusion, the report examined the external and internal forces driving change, conducted a comparative
study of how they affected the organization's strategy and operations, and then put recommendations into
practice. a discussion with the Board of Directors on the steps the firm should take to get ready for effective
operation change plans.

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