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Organisational Change For DGBI Ltd.
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  • Country: United Kingdom

Task

You have been assigned the remit to design Organisational Change for DGBI Ltd. As part of this Design for Change you are required to provide a diagnosis of the internal and external environment which is driving the need for changes to be proposed.

This diagnosis should be cognisant of future Corporate Social Responsibility (CSR) priorities the company need to consider.

From this, careful consideration and critical appreciation of the priorities to deliver the change initiatives and associated responsibilities for Leaders and HR Professionals is required.

Marking Criteria

Introduction – approx. 250 words    Provision of a focussed introduction providing aim of the assessment, associated structure and salient overview of the case organisation.

Case Diagnosis - where is DGBI Ltd now? – approx. 800 words    

Robust diagnosis of the current state of the organisation which then provides an overview of the priorities for the organisation to consider. Supporting this, students are required to state a revised vision statement for the case context.

To assist with a clear case diagnosis, there is a requirement to draw upon the salient issues arising from SWOT, PESTEL factors, Competitive Environment (Porter) with appropriate identification of key stakeholders and diagnosis of case studies’ cultural paradigm.

Consideration should also be given to the organisations readiness and overall capacity to embrace change initiatives. The diagnosis information must be consistent with the diagnostic tools/appendices provided.

Design for Change – where should DGBI Ltd go? - approx. 1000 words    

A focussed design for change should be provided underpinned by identification and justification of appropriate type and approach to change; which are consistent with the newly devised vision statement.

A focussed overview of the change priorities for the organisation, with justification following the analysis is required.

In this section, consideration must also be given to the communication and support techniques required to assist stakeholders during the change process.

Critical detail on the CSR commitments should also be provided with consideration of sustainable, innovative and creative practices underpinning the change initiatives being proposed.

Appropriate overview of the key success factors considered to evaluate the overall effectiveness of the organisational change is also required to be included in this section.

Responsible Leadership Considerations – approx. 350 words  

Evidence that the Leader(s) priorities undertaking/involved with the change process is critically considered. Detail regarding required type of leadership, responsible & ethical considerations and required behaviours from leaders should be provided.

Potential challenges arising from the change agenda should be considered from the Leadership perspective underpinned by analysis of the required behaviours to support the change agenda.

HR Considerations – approx. 350 words    

A balanced analysis of the key HR considerations arising from their involvement, and influence on the change should be provided. Particular focus on the support to affected stakeholders should be evidenced.

Potential challenges arising from the change agenda should be considered from the HR perspective underpinned by analysis of the required HR initiatives to support the change agenda.

Conclusion – approx. 250 words    

Provision of a focussed summary of the remit of the assessment and overview of the salient issues addressed including the rationale for change, type and approach to change and associated CSR, Leadership and HR priorities and responsibilities.

Appendices (SWOT, PESTEL, Porter 5 Forces, Culture Web & Stakeholder Analysis) (exempt from word count)    

Detailed appendices as worked on within groups / live classes should be provided aligned with the detail contained within the case diagnosis. Similarity from appendices will be expected however careful review/consideration will be given regarding students own individual design for change. Requirement to demonstrate consistency and alignment with case diagnosis tools and design for change.

Referencing, Structure, Writing Style and Presentation    

A professional referencing technique is evidenced consistent with GCU Harvard style. A professional writing style should be adopted consistent with the structure/marking criteria provided. Work should be clearly and neatly presented with a full and accurate authentic referencing list provided. Work should be within the wordcount remit and complimented with declaration of authenticity

The Case Of DGBI LTD: October 2023: A Consideration Of A Need For Change

 About DGBI Ltd

DGBI Ltd is a UK based Corporate Organisation which specialises in the Procurement and Supply of office suppliesi. DGBI Ltd supplies an array of office-based products for public, private and third sector organisationsii. The strategic mission of DGBI Ltd is to ensure effective and affordable office supplies with robust quality aiming for marketplace monopoly.

The organisation also promotes its corporate and social responsibility to support local businessesiii and is proud of its ongoing partnership with Tower Hamlet’s Council offering regular work experience opportunities for local disadvantaged community membersiv. As a reward for their commitment to their support for local disadvantaged communities, in 2018 DGBI Ltd was accredited by the Local Supportive Business Society of Londonv.

DGBI was founded in 2000 by the CEO Jasper Condron who had a small local business in Greenwichvi, London where his portfolio and brand grew considerably due to an influx in demand for his products and services. Upon diversifying his brand and portfolio Jasper agreed terms with Suppliers XStat for stationary and OffUK for office equipment - both currently contracted for services to December 2025.

DGBI Ltd currently has a market share of approximately 25% when comparing with rivalry competitorsvii. As Jasper’s business portfolio and operating model evolved, Jasper secured appropriate office space and associated personnel.

DGBI Ltd has a Head Office which is situated in Canary Wharf, Londonviii, the only office location for the business. The office space is £13,500 per calendar monthix.

The organisation has a current head count of 135 personnel. This is comprised of full - time permanent workers with the exception of 20 Procurement and Sales Administrators whom are employed by agency- based contracts under Agency Worker Regulationsx.

The organisation has a hierarchical structure with different levels of leadership and strict span of control. The organisational structure of the organisation is outlined below:
organisation chart

Figure 1: DGBI Ltd Organisational Chart, October 2023
 
DGBI Ltd has an orthodox organisational culture which is a result of status-driven leadership underpinned by the use of formal language and communication – the protocol is to ensure formal etiquette in all business interactions and strict adherence to internal policies and procedures.

The norm is for daily formal meetings facilitated by the middle level management team to dictate daily priorities and scope responsibilities.

Current Position of DGBI Ltd

The organisation is currently experiencing turbulence and uncertainty with regards to its stability within the market place.

Financial Status of DGBI Ltd


At the end of the Financial Year April 2020, DGBI Ltd reported a c.9.5 million pounds revenue. At the same time in 2021, DGBI evidenced a reduction in turnover of c.2.5 million pounds.

Thereafter, Financial Reports from April 2022 demonstrated a further reduction of 2.2 million pounds with the most recent Financial Report (April 2023) confirming a revenue loss of a further 3.5 milliom pounds. Therefore, evidencing a reduction of 8.2 million pounds revenue over a 4-year period.

As outlined above, DGBI Ltd is currently reporting an 8.2 million-pound reduction in revenue. This is particularly concerning with regards to market stability and maintaining the costs associated with the office running and maintenance and employee salaries.

Further Challenges faced by DGBI Ltd

The COVID19 pandemic severely disrupted the organisations delivery model, with the majority of organisations embedding home working during the pandemic resulting in less market demand for office - based supplies, particularly stationary.

In addition to this, legislation imposed a working from home mandate for all internal staff which was not previously permitted within the organisation – but was widely appreciated for its contribution to employee satisfaction and flexibility.

As the country started to move out of the effects of the global pandemic, DGBI Ltd has encountered more unprecedented issues including more demand for ethical and greener office equipment, accessories and stationary.

In particular, market research is showing that more organisations are seeking recycled paper, certified FSC certified wood for office furniture, re-fillable stationary and eco-friendly lighting and hardware. All of which is being supplied by the aforementioned competitor organisations.

In addition, DGBI Ltd has encountered leadership challenges with regards to HR related circumstances. Assistant Managers have reported a lack of training and development regarding management capability and the wellbeing and performance of their staff – which was particularly highlighted during the COVID19 pandemic.

Assistant Managers have also reported the absence of any HR system that can record individual performance metrics and absence reporting resulting in the need for enhanced manual administration. This has been a significant challenge as the absence rate is currently at 32%xi within both the Administrative Functions.
 
Due to the effects of Brexit, DGBI Ltd had lost approximately 30% of it’s administrative staff within Procurement and Sales as a result of workers unable to continue working in the UKxii. Thus, meaning that between 2020-2023 the organisation has had to engage with temporary agency workers to support their delivery model. This has also caused frustrations with managers due to the complexities of line managing agency - based workers and higher levels of sickness absence.

Since then, the Head of Corporate Functions and People Services Lead has encountered conflict and resistance from the CEO when escalating the requests and feedback from its workers encouraging consideration to be made to adopt a longer- term flexible model of working.

Employees regularly feedback that they are resistant to the current mandate from the CEO of a return to full office - based working, impacting employee flexibility, work-life balance and associated commuting costs compromising their financial situation during the current cost of living crisis.

Evidence-based findings from DGBI Ltd

To support this, the People Services Lead presented an evidence-based case outlining that during the COVID19 period – there was a 60% reduction in sickness absence, an attrition rate of just 3% for its full-time workers whilst maintaining a compelling 87% customer satisfaction rate during this period.

The annual staff survey also demonstrated an exceptionally high level of workplace engagement (86% very satisfied – compared to 52% in previous years and with 91% confirming they had a good work-life balance – compared to just 48% in the previous year’s survey). Qualitative feedback received within the staff survey also significantly addressed the financial implications and worry of their regular commute to the Canary Wharf office.

Despite this, the CEO is insistent on regaining the full office-space potential to justify costs and to support local businesses who were drastically impacted within Canary Wharf during the period – arguing this is supportive of DGBI Ltd’s CSR strategy.

Since the return to the office, the Head of Procurement and Sales created a 6 month long working and action- based research group accompanied by the Head of Customer Service and Delivery to undertake market- based research with regards to understanding the changing nature of customer demand.

This research found that 74% of DGBI Ltd’s current customer base were seeking to source more sustainable office - based accessories and equipment particularly seeking the aforementioned request for recycled paper, FSC certified wood and re-fillable stationary.

In addition to this, the Corporate Lead undertook cross-sectional research with regards to benchmarking competitor CSR and HR activities, finding that rivalry organisations were changing their CSR model to not only support the demand for greener supplies but also embedding internal corporate policies that support the environment, such as lower office based costs and therefore lower emissions from travel but also re-aligning their labour policies to embed and appreciate the benefits of hybrid models of working.

Such adjusted labour practices previously evidenced a decrease in sickness absence and have heightened employee morale and engagement considerably

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Management Meetings with the CEO, Jasper

In August 2023, the Head of Procurement and Sales, Customer Service and Delivery and Corporate Functions held an evidence-based meeting with Jasper outlining their findings and rationale for the organisation to re-consider its long - term strategies based on the evidence obtained.

However, the CEO resisted the need for such changes to even be considered stipulating that the organisation is not in a financially stable position to re-consider it’s supply chain delivery mode.

The CEO also argued that to justify the increasing costs for running the office in Canary Wharf and to support local SME’s, there is a need to maintain the full office - based working arrangement for all staff. There was also limited funding available to introduce new HR software and systems and limited budgets available to re-consider CSR agenda priorities.

A further meeting to re-consider the proposed evidence- based findings was scheduled for October 2023 however Jasper has subsequently been diagnosed with a long - term illness and is unlikely to return in the near future – just as the business continues to face unprecedented turbulence and further financial instability.

Next steps for DGBI Ltd

In the interim, Jasper has temporarily and immediately appointed the Head of Customer Service and Delivery, Muhammad, to assume the role of acting CEO, without offering the opportunity for other Heads of Department to express their interest which has resulted in toxicity and conflict amongst his peers operating at the same level.

Jasper has stipulated that Muhammad’s key priorities are to re-consider DGBI Ltd.’s strategy and has commissioned Muhammad to initiate Transformational Change to ensure organisational survival with priority on:

•    Revised Vision aligned with Market Trends and Customer Demand
•    Embedding Innovative and Creative Practices to achieve competitive advantage
•    Ensuring a stable, successful and responsibly led workforce
•    Ethical and Corporate Socially Responsible Commitments
 

Organisational Change for DGBI Ltd. 

Introduction

The task is to examine the operations of DGBI Ltd with a critical eye and come up with practical ways to resolve its current issues. The assessment will involve the utilization of specific tools, such as SWOT analysis, Porter's Five Forces, Cultural Web framework, and PESTEL analysis, to evaluate DGBI's market position, internal processes, and external environment in a comprehensive manner. The value grid model will be used to identify the main stakeholders and their expectations and influence on the project.

Currently, DGBI Ltd is facing a challenging time, with fluctuating market demands, management issues, and low employee satisfaction. The addition of a new CEO has brought more problems, and now they need a smart way to handle them. Even though DGBI is facing difficulties, it seems to be managing its finances well. But, because of the ever-changing nature of the market place, there is really a necessity to drastically change current ways of doing things.

The assessment structure will be comprehensive which will start by finding out the current situation and after that plan down the changes that are needed to be accomplished in the organization. After that, it will discuss the role and challenges that are faced by the leaders and HR while implementing these alterations.

The conclusion will summarize the main points that have been discussed, and present suggestions on how to improve the company's performance in a sustainable and responsible way. This paper is aimed at making sure that DGBI Ltd can adapt to changes in the business world.

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Case Diagnosis

Current Priorities

The two most important priorities for the growth of DGBI Ltd are stability and flourishing in the market.

Being able to adjust to changing consumer preferences and environmental concerns is crucial for companies working in the green sector (Söderholm, 2020). The shift towards manufacturing goods certified by the Forest Stewardship Council and which are eco-friendly represents not just a response to environmental concerns but is also a strategy that companies are adopting to align themselves with changing consumer preferences (Appolloni et al., 2022).

It means that due to this transition, DGBI Ltd will have to invest in sustainable practices, come up with innovative ideas for their products and rethink the way they source their materials, in order to follow the standards, set by FSC. Adopting sustainable practices enhances not only the environment but also gains recognition from consumers who prioritize eco-friendliness, ultimately benefiting the company.

Secondly, internal organizational challenges demand immediate attention. It is important to address the concerns of employees related to work from home policies and opportunities for learning and development in order to improve their motivation and work performance (Vyas and Butakhieo, 2021).

Incorporating such features can improve employee happiness and longevity.  Leadership challenges must be handled skillfully. Developing management skills to lead multi-level teams can improve decision-making and change management (Bolden et al., 2023). DGBI Ltd. must balance internal and external priorities to preserve market stability and long-term performance.

Key issues

PESTEL, Cultural Web, Porter's Five Forces, and SWOT assessments show DGBI Ltd. has many obstacles. Cultural Web study shows its culture's reluctance to change, firmly embedded rituals, centralised power, and inflexible regulations. This kind of environment hinders creativity and the company's response to change (Moradi et al., 2021).

Porter's Five Forces analysis provides a clearer understanding of the competitive landscape in which DGBI operates. In such a market, DGBI has limited say over price, and doesn’t have much control over its supply chain, because both the suppliers as well as the customers are quite influential in setting the prices.

There are various alternatives present in the market which can replace the company's products, and it is important to change the product attributes so that it can be more preferable to the customers (Hunka et al., 2021). It is essential for businesses to have a unique selling point to stand out in their industry.

SWOT analysis identifies the weaknesses of the company which are the inability of the company to adjust to the market trends and the bureaucratic culture which can limit the flexibility of the company to respond to the changes in consumer preferences and market dynamics (Karneli, 2023).

Moreover, the presence of intense competition and changing consumer demands poses a great challenge.

The PESTEL analysis shows that several external problems are taking place and it affects DGBI. Some of these are political instability affecting trade, economic instability causing market instability, increasing focus on environment concerns and sustainability, new technology requirement to keep up with, environmental rules need to follow and legality issues related to workers' rights and company governance. These outside circumstances require a wise and adaptive approach from DGBI to handle the dynamic business atmosphere efficiently (Baran and Woznyj, 2020).

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Key Stakeholders

The following are the key stakeholders for DGBI Ltd identified using the Value Grid model:

1.    CEO (Jasper): As the leader, Jasper is responsible for determining the overall strategy and setting the tone for the company's culture.
2.    Employees: Central to operations, their engagement and satisfaction are crucial for productivity and innovation.
3.    Customers: Their needs and preferences completely influence the product development and market strategies.
4.    Suppliers: Important for the supply chain and product quality as well as maintaining the sustainability.
5.    Leadership Team (Assistant Managers, Heads): In-charge of executing plans and making sure everything runs smoothly on a daily basis.
6.    HR: Improving employee relations, development and organizational culture is essential in keying in on personnel management.
7.    Agency Workers: Provide flexible labor, important for operational efficiency during peak demands.

These stakeholders are integral to DGBI's operational success and strategic decision-making.

Desired Future State

The desired future state for DGBI Ltd encompasses three key aspects:

•    Financial Stability and Profitability: The company wants to get financially stable and make profits. The transformation which DGBI Ltd. have to achieve will be done with the help of proper financial allocation, effective operation management, and careful utilization of resources (Helmold and Samara, 2019). These measures will ensure the long term growth of the company.

•   Customer Focus and Market Alignment: It is crucial to stay updated with the latest market trends and cater to customers' changing needs in order to succeed in today's competitive business environment (El Houda and Baghdad, 2023). The company has to put a lot of emphasis on making eco-friendly and ethically produced products that are sustainable and appeal to consumers. This way of thinking not only fulfils the requirements of customers but also helps DGBI to take the front seat in the sustainability market.

•    Workforce and Leadership Stability: Having a stable workforce with a responsible leadership team is very important (Haque et al., 2019). This means creating a positive working atmosphere, giving opportunities to improve employee skills, and being responsible towards society. DGBI is trying to improve the employees' involvement and leadership skills to build a stronger and more responsible business.

It appears that DGBI Ltd. has the potential to evolve in order to achieve its desired future state. Having a new CEO is a sign of change and hopefully better outcomes for the company (Branicki et al., 2021). Nonetheless, accomplishing all that is definitely a tough task.

It involves a lot of hard work and dedication to make sure the company stays on top of the game. The readiness for change will largely be determined by the organization's adaptability to embrace change in its culture and new strategic directions.

Design for Change

Recommended Change

For DGBI Ltd, a comprehensive transformational change is recommended. This change is big and will affect a lot of things in the company, including its culture and strategy (Purwanto et al., 2021). The business methodology of the company has to be revised to enable them to manufacture items that meet the sustainable and eco-friendly criteria of FSC certification while addressing the evolving market demands and environmental obligations (Despoudi, 2020).

The company will improve its work culture by making it more dynamic, engaging, and nurturing through this transformation. These changes will guarantee that the CEO's choices are aligned with the company's newest strategy and beliefs. That is if they are given the power to do so, the CEOs would make smart choices and nothing would go haywire.

It is also really very important for promoting creativity, responsibility, and sustainability within company (Ogbeibu et al., 2020). The company has to undergo a process of evaluation and refinement in order to conform to the standards of the industry, as well as promote sustainability and the well-being of its employees. This revolutionary transition allows the corporation to plan its future holistically and sustainably.

Approach to Change

The approach to change for DGBI Ltd will focus on two main outcomes:

•    Organizational Stability and Market Value: The goal of the change is to maintain the company's reputation and standing in the market. By embracing environmentally friendly methods and introducing cutting edge goods, such as forestry stewardship council certified products, DGBI Ltd can develop a unique market position in the industry (Reddy et al., 2023).

The stability is not only financial but also requires maintaining a consistent and reliable brand image that appeals to environmentally conscious consumers. The modifications will also entail revising the internal operations as well as the decision-making style of the leaders in order to make the company more adaptive to market changes and consumer preferences.

•    Attracting Customers and Aligning Suppliers: It is predicted that more people will become interested in purchasing sustainable products as companies shift their focus towards it (Costa et al., 2021). Through the change, DGBI will attract more consumers who prioritize environmental responsibility and that aligns with the company's goals. Moreover, it will motivate suppliers to fulfil DGBI Ltd.'s objectives.

Sustainable suppliers or partners will more likely match up with the brand to ensure a sustainable supply chain (Dahlmann and Roehrich, 2019). This alignment makes the supply chain stronger and improves the image of the company as a responsible and forward-thinking.

Communication and Support initiatives

To support key stakeholders during the change process at DGBI Ltd, the following communication and support initiatives are crucial:

•    Effective Communication in Feedback: Having a proper feedback system in place helps to keep everyone on the same page while going through alterations (Schulz-Knappe et al., 2019). It is important to communicate clearly and openly with employees about the changes, to take their inputs, address their concerns and convince them about the benefits and necessity of the change.

•    Awareness about Proposed Change: Creating awareness is key. Therefore, it is important to communicate with and educate stakeholders about the rationale behind the change, the positive impact it may have, and how it links with the firm's objectives (Friedland and Jain, 2022). The company can use regular updates, informational sessions, and transparent communication channels to make sure everyone is on the same page and bought into the changes happening.

•    Motivational Training and Addressing Resistance: Some training sessions which are aimed at helping employees stay motivated and handle changes in the work environment effectively (Basalamah and As’ad, 2021). These are made to guide people about how to overcome changes and how to deal with challenges they might face while changing their behavior.

•    Clarifying Doubts and Building Confidence: An opportunity for clear understanding and addressing issues through open discussions and individual interviews (Pedersen et al., 2020). The aim is to boost employee confidence by highlighting the opportunities the change brings, such as career growth, skill development and sustainable work environment.

Key future CSR considerations

For DGBI Ltd, key future CSR considerations include:

•    Producing FSC Certified, Sustainable Products: This entails a dedication to creating products that won't harm the environment. Through gaining FSC certification, DGBI Ltd can guarantee their products are derived from sustainably managed forests, agreeing with international sustainability criteria (Xue et al., 2022).

This move has two advantages; firstly, it helps the company to be more environmentally responsible and secondly, it caters to the needs of consumers who are becoming more environmentally conscious, thereby improving the company's reputation as a sustainable brand.

•    Partnerships to Support Local Disadvantaged Communities: Partnering with institutions that help local communities, particularly those who are disadvantaged, is a significant step in CSR (Medina‐Muñoz and Medina‐Muñoz, 2020).

Such collaborations may entail activities such as community-building projects, professionally directed undertakings, training schemes, or environmental conservation schemes. DGBI Ltd can increase its social reputation and gain a sustainable relationship with local communities by actively working towards their welfare.

Evaluation of Success

The success of the change at DGBI Ltd will be evaluated using three key methods:

•    Monitoring Revenue: Tracking the revenue after any change is necessary. This includes not just total revenue but also revenue from specific line items, such as the sales of FSC certified products (Frey et al., 2021). By examining the trends in profits and sales, the company gets to determine how effective the switch towards eco-friendly products is towards improving the company's financial numbers.

•    Market Surveys: By doing market surveys, the company can understand whether or not the changes have made have positively affected market position or if there is still room for improvement (Melović et al., 2020). This is about evaluating the opinions of clients, judgement of the brand and the portion of the market the company commands. The company must know which products and strategies are effective in the market and what are aligned with consumers' needs through these surveys.

•    Employee Surveys: Employee surveys are really important to understand the effect of any new change within the company (Li et al., 2021). The polls will provide insight into how well workers buy into the company's new way of doing things, how upset they are with the current changes, and how it affects the overall culture of the firm. DGBI can assess if changes are appropriate and beneficial by understanding staff perspectives.

Responsible Leadership Considerations

Priorities of the Responsible Leaders

DGBI's Responsible Leaders (RLs) prioritise widening perspectives and assessing long-term business and stakeholder impacts. The leader cares about everyone's feelings and benefits and promotes ethical, sustainable, and beneficial social activities (Fry and Egel, 2021). The leader emphasises communication to keep people informed and involved with developments. RLs also examine employees' emotional responses to changes to safeguard their well-being during the transition.

Type of Leadership

The Responsible Leaders at DGBI Ltd. prioritise justice and the organization's values in their decision-making. These leaders will uphold their ethics while ensuring the company's actions comply with its code (Suriyankietkaew et al., 2022). They will set an example and inspire others to act ethically and responsibly.

Key Behaviours

Responsible Leaders will exhibit certain behaviours during change management. They will actively practise listening, paying attention to different perspectives. They will build trust and respect to unite staff around common aims and encourage cooperation. These leaders will model morality at all times (Naseer et al., 2020). They will use open and transparent communication to make sure every employee feels heard and respected throughout turbulent times.

Potential Challenges

Leaders must act ethically and model it for their people. They can overcome many challenges throughout transition with their unshakable dedication to ethical leadership (Dhanesh, 2020). Such leaders may have to make difficult ethical decisions to follow the company's ethics. If people disagree, it may test their ability to resolve problems ethically and for everyone. Globalisation, transparency, legality, and regulations must be considered while balancing sustainability and corporate goals. Technology and changing conditions make ethical leadership difficult.

HR Considerations

Key Involvements

HR is crucial to organisational change. HR professionals must explain the change's purpose to everyone (Dhanpat et al., 2020). They must also inform employees about upcoming developments by providing information (Fenech et al., 2019).

Another crucial task is managing stakeholders who disagree with plans or decisions (Bader et al., 2020). Conversations help employees grasp perspective and why they should support the company's ambitions. After implementing the modifications, HR staff analyse and make any necessary adjustments.

HR specialists also encourage employee feedback, which promotes workplace harmony (Fenech et al., 2019). HR helps organisations connect organisational goals to people and make transitions smooth. Employee mentoring through change, easy transition, and project success depend on their involvement.

Support to Key Impacted Stakeholders

During organisational transformation, HR advises and assists affected employees. The help stakeholders overcome tension and anxiety before changes. HR must ensure all employees feel included during transition (Dhanpat et al., 2020). They emphasise change management's benefits and alignment with organisational goals.

Additionally, HRM professionals offers courses and resources which help employees enhance their talents and get adjusted to the changing workplace (Subramanian and Suresh, 2022). They do a great job maintaining an open and supportive stance, which includes clearing doubts, addressing concerns and fostering effective communication (Bader et al., 2020).

HR people are important in any organization. They help employees during times of change, making sure the transition is smooth and successful.

Potential challenges

Addressing the challenges faced by HR professionals during change initiatives can be quite demanding. Some of these challenges include effectively communicating the proposed changes, aligning employees with the new goals, and dealing with resistance from employees (Alqudah et al., 2022).

Employees may experience attrition when facing changes in the company or job position. This could result in the loss of skilled workers from the organization. It is hard to manage performance during change, even though sometime it might seem tough.

Human Resources department should intervene and mediate in leadership tensions that impede change implementation and focus on establishing trust within the corporate environment (Errida and Lotfi, 2021). The challenges require a lot of planning and organizing, managing conflicts smartly, persuading people to join and creating an exceptional work environment.

Conclusion

After analyzing the problems faced by DGBI Ltd., there are three important things that need to be done in order to make the company a top brand in its industry.
To begin with, it is important to maintain a steady and efficient workforce. Being happy and content at work is really important for the achievement of the company's goals.

By making employees happy through promoting a healthier work-life balance, the productivity levels will also be improved. This means that implementing changes in the working style to encourage better work-life balance will not only lead to happy employees but also boost productivity. In my opinion, having a loyal and dedicated group of employees is one of the keys to success in business.

Moreover, the HR department should update its policies so that it can provide a more transparent and organized working environment for employees, which should help to retain them in the long run. Creating a separate finance department that specializes in financial analysis, is critical for anticipating and preventing major financial difficulties.

DGBI should think about seeking loans from governments or banks in order to grow their business. By implementing these financial strategies, businesses can have the necessary resources to adapt to changes effectively in their environment.

Finally, having an R&D crew is super essential to the growth of any business. This team must concentrate on fulfilling the customers' requirements for eco-friendly products and remain updated with the latest trends in the industry.

It is extremely important to examine carefully the methods adopted by rivals in the market and also own business strategies so that they remain on the top. By expanding supplier base, DGBI can cater to a larger customer base, and gain a better market position.
 

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Appendices

Porter's Five Forces Analysis

 Porters Five Forces Analysis
 

Stakeholders’ analysis

 
STAKEHOLDERS
 
CEO (Jasper)
 
 
 
Employees
 
Customers
 
Suppliers
Leadership Team (Assistant Managers, Heads)  
   HR
 
Agency Workers
Values – what do they value? Leadership, innovation, company growth.
 
 
Job security, work-life balance. Quality, sustainability. Business continuity, profitability. Team success, leadership. Employee well-being, organizational culture. Fair pay, job security.
Norms and expectations – how do they expect to be treated? Professionalism, results-oriented approach.
 
Fair treatment, recognition. Reliable service, value for money. Mutual benefit, respect. Collaboration, respect. Ethical practices, fairness. Respect, fair treatment.
Perceived interests – what are they interested in specifically? Company success, market expansion. Career growth, stable work environment. Product innovation, ethical practices. Long-term contracts, timely payments. Team efficiency, project success. Employee engagement, compliance. Stable assignments, good working conditions.
Preferences – how would they prefer things to be? Strategic initiatives, effective management. Transparent communication, supportive culture. Eco-friendly products, customer service. Stable orders, clear communication. Autonomy, resource availability. Efficient processes, employee development. Clear job roles, communication.
Needs – what do they need/ how can we help them through the transition? Support from teams, effective communication. Clear guidance, reassurance. Product reliability, satisfaction. Financial stability, partnership. Clear directives, support. Resources for initiatives, management support. Consistent work, support.
Power – what type/strength of power do they have? High, decision-making authority. Moderate, operational impact. High, market influence. Moderate to high, supply chain impact. Moderate, team management. Moderate, influence on culture. Low to moderate, operational support.

SWOT Analysis

 swot dgbi

PESTEL Analysis

POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL ENVIRONMENTAL LEGAL
Brexit implications on trade and labor. Post-pandemic economic recovery. Increasing focus on sustainable products. Advancements in sustainable production methods. Rising demand for eco-friendly products. Employment law changes due to Brexit.
Government policies on sustainability. Currency fluctuation impacts. Shift in work-life balance preferences. Digital transformation opportunities. Environmental regulations impact. Compliance with environmental legislation.
COVID-19 related regulatory changes. Changing customer spending patterns. Demographic changes affecting labor force. Cybersecurity requirements. Sustainability as a competitive advantage. Data protection and privacy laws.
Local government contracts dynamics. Market volatility. Community expectations on corporate responsibility. Technology-driven customer engagement. Climate change implications. Regulatory requirements for sustainability.

Cultural Web 

cultural web
 

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