PPQ - INTERNAL - managing change

Question 1

2021 - Analyse BMW Group’s strategy to fully electrify all its vehicles. (Your response must include a force field diagram. (8 marks)
drivers and resistors

Answer 1

Drivers
- already invested €100 million – BMW shareholders will want a return on this
- 15-25% of sales revenue by 2025 – increased profit-making potential
- UK’s ‘Road to Zero’ strategy – UK demand will fall for non-electric cars

Resistors
- requires continuous investment – may reduce retained profits
- limited EV charging infrastructure – customers in some markets will not make an EV purchase until the charging infrastructure improves/limits sales for BMW
- competitive environment – firms, such as Tesla Inc, may force BMW to lower its prices of EV cars in order to compete

Question 2

2021 - Analyse BMW Group’s strategy to fully electrify all its vehicles. (Your response must include a force field diagram. (8 marks)
asset for change and evaluation

Answer 2

Assets for change
- 10 BMW plants are already equipped to manufacture electric vehicles

Overall evaluation
- BMW Group should fully electrify its portfolio - the financial resistors, for example incentive availability and investment, are minor as BMW is significantly profit-making and can afford to exploit the main benefits of fully electrifying its portfolio and secure its strong market position

Question 3

2021 - Describe the role of a change agent in managing the change process (6 marks)

Answer 3

• consulting staff and managers who are affected by the change
• diagnosing what the issues are and the potential drivers and resistors
• managing a budget for change
• educating and inspiring employees of benefits of change
• defining roles and responsibilities of key people throughout the process
• building relationships with external agencies who may be able to assist in the change

Question 4

2021 - Evaluate the use of a piecemeal approach to change (4 marks)

Answer 4

• smaller changes less threatening to staff so likely to result in less staff resistance (reduce pressure on staff, reduce chance of industrial action)
• more manageable to monitor success so corrective action taken if something goes wrong
• staff rewards linked to each piece of change so incentivise and motivate
• many small changes over time is lengthy process

Question 5

2019 - Describe possible barriers to change within organisations (4 marks)

Answer 5

• fear of failure for example unfamiliar technology
• loss of status, losing office/title
• loss of control, not part of change process
• inertia and habit of old processes

Question 6

2019 - Explain the use of Kurt Lewin’s stages of change model to assist the effective management of change within organisations (6)

Answer 6

Unfreezing
- encourages smooth transition by reducing barriers to change
- using consultation to reduce resistance to change

Changing
- gradually implementing the change avoids employees feeling overwhelmed
- rewarding employees at each step of the process
- monitor the change carefully to ensure it is on track

Refreezing
- reinforces the new approach, making it a habit and norm
- prevents regressions by removing old processes