Module code and title: MGBBT0UBN Understanding Change

Module leader: Theresa Emenike

Student ID:
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Introduction
The business world is constantly evolving and adapting to new market trends and
technological advancements. One important aspect of this is the various forms of business
ownership and organisational structures that exist. From sole traders to cooperatives, each
structure comes with its own set of advantages and disadvantages. Organisations may also
experience different types of change, such as incremental, radical, or disruptive change. The
ability to effectively manage and implement change within an organisation is crucial for
success in today's business environment. This essay aims to explore the various types of
business ownership and organisational structures, analysing their advantages and
disadvantages. It will also delve into the different types of change that organisations may
experience and the strategies that can be used to implement change effectively within an
organisation. By understanding the various forms of business ownership and change
management strategies, organisations can make informed decisions to suit their needs best
and adapt to the changing business landscape.

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Analysis of Main Body
A business, also known as an enterprise or a firm, is an organization engaged in the trade of
goods, services, or both to consumers. There are different types of business structures, three
options that stand out are Sole proprietorship, Partnership, and Corporation. Each structure
has unique advantages and disadvantages, which may be more suitable for particular
businesses or business owners.

The sole trader structure is the simplest and most common form of business ownership. One
of the main advantages of this structure is the ease of setting up and running a business as a
sole trader, with minimal legal and administrative requirements However, one of the main
disadvantages of this structure is that the owner has unlimited liability, meaning that they are
personally responsible for any debts or losses the business incurs. Also, they need the option
to share the decision-making or the workload, which can cause burnout or lack of expertise in
some areas. An example of a successful sole trader business is a freelance writer or consultant
who works independently and is responsible for all aspects of their business On the contrary,
partnerships involve two or more individuals working together to run a business. One of the
main advantages of this structure is that partners can pool their resources, skills, and
knowledge to achieve common goals. However, one of the main disadvantages of this
structure is that all partners are jointly liable for the debts and losses of the business, meaning
that each partner’s assets are at risk. Also, communication and decision-making can be a
problem if the partners do not have a formal agreement. A classic example of a partnership is
a law firm, where multiple attorneys come together to offer their legal services to clients
(Hamilton & Webster, 2018). On the contrary, a private limited company is a more formal
business structure with shareholders and directors. One of the main advantages of this
structure is that the shareholders have limited liability, meaning that their assets are protected
in case of business failure. However, one of the main disadvantages of this structure is that it
requires more complex legal and administrative processes to set up and run. Also, there can
be a disconnection between the management and shareholders; they might have different
goals and perspectives A well-known example of a private limited company is a software
development firm, where the shareholders and directors work together to manage and grow
the business.

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Organisational change is modifying an organisation's structure, operations, or strategy to
achieve specific goals or address particular challenges. Organisational change can be
triggered by changes in the external environment, technological advances, shifts in consumer
behaviour, or changes in the organisation's leadership The ultimate goal of organisational
change is to improve the organisation's performance and competitiveness in the long term.
Incremental change is a gradual and steady process of minor improvements to an
organisation's existing systems and processes. This type of change is often implemented in
response to minor problems or opportunities for improvement It typically involves minor
adjustments to existing systems and processes rather than introducing significant changes.
Radical change, on the other hand, is a substantial and comprehensive transformation of an
organisation's structure, strategy, or culture. This change is often implemented in response to
significant problems or opportunities and typically involves introducing major new systems,
processes, or technologies (Amacom, 2019). Disruptive change is the sudden and unexpected
change that occurs in an organisation due to external factors like market shifts, new
technology, or new regulations. These types of change can be challenging to predict and plan
for and require organisations to adapt to stay competitive quickly Emergent change is the
gradual, unplanned, and often spontaneous changes that occur in an organisation due to
internal and external factors. This change is often the result of individual interactions within
the organisation and can be difficult to predict or control. Overall, organisational change can
be complex and challenging, but it is also essential to success in today's fast-paced business
environment. Different types of change require different approaches, and understanding the
kinds of change will help managers implement them more efficiently

Kotter and Schlesinger proposed several change strategies for organisations looking to
implement change effectively. One of the critical strategies they outlined is the "8-Step
Process for Leading Change," a widely used framework for managing change in
organisations. This process involves creating a sense of urgency, forming a powerful
coalition, creating a vision for change, communicating the vision, empowering others to act
on the image, creating short-term wins, consolidating gains, and anchoring new approaches.
Another strategy they proposed is the "Sense of Urgency Matrix", which is a tool to help
organisations assess their level of urgency and develop an action plan accordingly The matrix
categorises urgency into four types: complacency, false speed, real hurry, and defensive
urgency. Every kind of urgency requires a different approach and action plan to address it
effectively. Another critical strategy they proposed is the "Leading Change" team. A team of

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key stakeholders and leaders is formed to guide and manage the change process. The team is
responsible for developing the change strategy, creating a sense of urgency, and
communicating the vision for change. The team should have a mix of individuals from
different levels and functions to ensure that the difference is inclusive and effective To
overcome resistance to change, organisations could use other strategies such as involving
employees in the change process, providing training and development opportunities, clearly
communicating the benefits of the change and addressing the concerns and fears of
employees. Additionally, creating a culture that is open to change, being transparent about the
reasons for change, involving employees in the decision-making process and promoting a
sense of ownership and involvement can also help to overcome resistance

One of the main reasons why people resist change in an organisation is a need for more
understanding or fear of the unknown. Except for a clear interpretation of the causes for
change and the potential benefits, employees may perceive the change as a threat to their
current role or position within the organisation Change can also be met with resistance when
perceived as too drastic or sudden, and employees feel they need help adapting to the new
changes. Another reason for resistance to change is a need for more trust or confidence in the
leadership or management of the organisation. When employees do not trust or believe in the
ability of the administration or management, such successful implementation of change may
be more likely to resist the change efforts (Kotter & Schlesinger, 2013). Organisations use the
strategies proposed by Kotter and Schlesinger to overcome these reasons for resistance and
successfully implement change. One approach is to involve employees in the change process
and provide training and development opportunities; this can help to ensure that employees
have a clear understanding of the reasons for change and are prepared to adapt to the new
changes. Additionally, communicating the benefits of the transition to employees can help to
build buy-in and support for the change efforts. Another strategy is creating a sense of
urgency and a powerful coalition; this can help build momentum and support for the change
effects to provide a clear and compelling vision This can build trust and confidence in the
leadership and management and rally employees behind the change efforts. Furthermore,
creating a sense of ownership by involving employees in the decision-making process, being
transparent about the reasons for change and addressing the concerns and fears of employees
can also help in overcoming resistance. By using these strategies, organisations can
effectively overcome resistance to change and successfully implement change

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Conclusion
Businesses have various forms of ownership and organisational structures to choose from
depending on their specific needs and goals. Sole traders, partnerships and private limited
companies are some of the main structures that come with unique advantages and
disadvantages. Businesses need to consider their own needs and goals in order to choose the
structure that is the most suitable for them. Furthermore, business environments are
constantly changing, and organisations need to be able to manage change effectively to
survive and thrive. The different forms of organisational change, like incremental, radical,
and disruptive change, should be understood, and businesses should have strategies to
manage change effectively. Lewin's Change Management Model and Kotter's 8-Step Change
Model are examples of strategies that can be used to manage change effectively. To stay
ahead in today's business landscape, organisations must deeply understand the different forms
of business ownership and change management strategies.

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