Merger Of Kingfisher Plc Business Essay

Kingfisher Plc is one of the major suppliers in UK managing over 600 stores and controlling over seventy-five thousand employees. At the moment, the business is the leading supplier of women's wear and lingerie in the United Kingdom. In the area of other clothes, these have incurred a great deal of growth. The business also provides for food retail. The company sells several foods from groceries to ready-to-cook foods. Nowadays, there have been a considerable amount of changes in the overall strategy of the company. Nonetheless, it still holds true to the basic principles of the business. Such principles are the offering of the wide range of high-quality products which are believed chic and basic with the most reasonable prices on the market.

Merger of Kingfisher Plc with DIY Supermarket:-

To competerivals and also to react to the changes in the external environment of the organizations the management of the KINGFISHER LTD and the DIY Supermarket are planning to merge into a sign entity. Under the strategies, KINGFISHER LTD would be re - branded Kings and DIY Supermarket plc. "Kings&DIY Supermarket's" and contain two functioning subsidiaries, Kingfisher PlcandDIY Supermarket's. Sava Centre Small will be managed by Kingfisher Ltd. , and DIY Supermarket's Supermarkets Small will be re - top quality KIngfisher Ltd, being managed by DIY Supermarket's (HIGHSON, 2008)

The Combined Group will have 1, 300 stores, although they must be ready to sell 300 in order to not refer the deal to your competition Commission. It'll be the UK's second major dealer (behind Tesco), the UK's largest clothing store, and the next largest supermarket chain, with market talk about of over 20%. (HIGHSON, 2008)

The record will analyse the merger process and the change management process and since a change supervisor I'll develop the change strategy for the KINGFISHER LTD to control the changes in the organization because of this of the merger between your both organisations. I am going to analyse the latest models of of change to put into practice the changes effectively in the KINGFISHER LTD and also develop the strategy to require stakeholders in the change process to make change far better and access the sources of resistant to change and develop the functions which is often implemented to lessen resistant to improve being put in place.

Models of change management:

There are various models of the change produced by the researchers to build up and implement effective changes in the business to be competitive in the external environment of the business. There are pursuing types of the change which may be used to use changes in the given case of KINGFISHER LTD. in the current economical environment the company is facing strong competition from the rivals. There will be the following models that i will be using to implement the change in the KINGFISHER LTD.


In developing this model, Lewin (1947a:p. 228-9) observed that: An alteration towards an increased level of group performance is frequently short lived; after having a 'short in an arm' group life soon go back to the prior level. This implies that it does not suffice to identify the thing of designed change in-group performance as the getting of different levels.

For Lewin's therefore, successful change involves three steps:

Unfreezing the present level;

Moving to the new level;

Refreezing the new level;

Figure: 1. 1 Kurt Lewis model of changeSource: Online (seen on 11/08/2012).

John P Kotter's 'eight steps to successful change':

American John P Kotter (b 1947) is a Harvard Business Institution teacher and leading thinker and writer on organizational change management. Kotter's highly regarded literature 'Leading Change' (1995) and the follow-up 'The Heart and soul Of Change' (2002) explain a helpful model for understanding and taking care of change. Each stage acknowledges an integral principle recognized by Kotter associated with people's response and method of change, where people see, feel and then change.

Kotter's eight step change model can be summarised as:

Increase urgency - inspire people to move, make objectives real and relevant.

Build the guiding team - have the right people in place with the right emotional determination, and the right mix of skills and levels.

Get the vision right - receive the team to establish a simple perspective and strategy, concentrate on psychological and creative aspects necessary to drive service and efficiency.

Communicate for buy-in - Involve as many people as possible, converse the essentials, simply, and appeal and react to people's needs. De-clutter communications - make technology do the job somewhat than against.

Empower action - Remove obstacles, enable constructive feedback and lots of support from leaders - pay back and recognise progress and achievements.

Create short-term wins - Arranged aims that are easy to attain - in bite-size chunks. Workable numbers of initiatives. Finish current periods prior to starting new ones.

Don't let up - Foster and encourage determination and persistence - on-going change - encourage on-going improvement reporting - showcase achieved and future milestones.

Make change stay- Reinforce the worthiness of successful change via recruitment, advertising, and new change leaders. Weave change into culture.

Relevance of the chosen models of change to the Kingfisher Plc:

The above given models are very very important to the implementation of the change in the business as the KINGFISHER LTD and the DIY Supermarket are different organizations even though incorporating the both organizations will face several problems regarding the execution of the changes in the organization. Like it or not, the changing overall economy will necessitate drastic reorganization possibly credited to downturns throughout the market.

Lewin's model could be used by professionals of the Kingfisher Plc to more efficiently execute any organizational changes. For instance, suppose that a firm is facing the prospect of downsizing credited to a poor market. Inside the first step, unfreezing, mature management could inform all employees via the company intranet as well as through casual "Townhall" style conferences of the serious economical challenges facing the organization. Input compiled from employees as well as from inside audits would then be produced available to all employees. The second step, change, would then be implemented, most likely by means of reorganization involving the reduction of some positions. In the ultimate step, refreezing, intra-organizational changes would be made to accommodate the new organizational work circulation. Any employees who have been terminated could be offered post-employment retraining or vocational assistance. Most of all, mature management ofKingfisher Plcwould need to demonstrate to the remaining employees the efficiency and necessity of the new reorganization.

Selection of Model to be utilized to put into practice change in KINGFISHER LTD:

Lewin's three step style of change involves developing a model for the traveling change andlearning to either manipulate the process or boost its effect. Matching to Levin the first rung on the ladder along the way of changing behavior is to unfreeze the existing situation or status quo. The next stage is to move the mark system to a fresh level of equilibrium. Some assistance to this level can be helping stakeholders with experiencing the advantage of interrupting the status quo. In addition, the negative effects of remaining the same level can be motivated by influential leaders. The 3rd step of Lewin's model is to freeze thought after the change takes place at a new level.

As an alteration administrator of the Kingfisher PlcI may use this model with regards to the changing market by melding their labor force to expect change and adopt its value. You will find few areas of life that are totally negative and folks must be informed to see this. By looking at Lewin's make field analysis I could use this information to help myself and my employees accept change. For the facet of coping with uncertainty, the anxiety a person experience with the existing economy strike people on many levels. The goal is to fragment the panic into workable situations for people to deal with.

Monitoring tools to monitor change:

To monitor the potency of the implementation of the change in the business I will use different monitoring tools. I'll develop the small targets and the goals to be achieved to monitor the performance by analysing the completion of the goals and compering the genuine performance with the focuses on.

The financial performance will also be analysed to access the potency of the change process and it'll be weighed against the prior performance of the organization.

Strategic intervention strategies in Kingfisher Plc:

An intervention is a set of sequenced and designed actions or happenings and planned activities or events intended to help the organization intended to help the business increase its performance (Cummings, Christopher G. Worley, 2008)The proper involvement is the set of the planned steps to be studied by the business to build up effective approaches for the business to become more proficient and effective on the market. There will vary types and levels of the strategic intervention being applied in the organizations.

There are numerous kinds of the interventions which can be implemented on the KINGFISHER LTD to help make the organization more effective and competitive in the market. Theses interventions are as given below,

Human process intervention

Techno structural interventions

Human reference management interventions

Strategic interventions

The human resource process intervention includes the producing operations for the training, training and development, team development & process appointment, conflict quality, intergroup romantic relationships and large group interventions.

The techno interventions include implementation of the technology in the organization and these also include the downsizing, structural design development, reengineering, worker involvement, and developing effective work design.

There will vary steps which may be used by the Kingfisher Plc for the growth and improvement of the human resources of the organization like setting goals, performance appraisal, rewards system development based on the performance appraisal, career planning and development, taking care of workforce variety and staff welfare.

The structural involvement include the pursuing steps

-Integrated Strategic Change Integrated Strategic Change

-Mergers and Acquisitions Mergers and Acquisitions

-Alliances and Networks Alliances and Networks

-Culture Change Culture Change

-Self-designing Organizations Self-designing Organizations

-Business Learning and Knowledge Company Learning and Knowledge Management

Which change interventions to use can be an important factor. Change ultimately requires the deployment of a variety of levers covering all the organisational subsystems shown in the above change models appropriate for managing change in Kingfisher Plc. Given the interdependency of these subsystems, it is difficult to change one part in isolation.

Transformational change initiatives specifically, which need a change in the distributed assumptions and values of an company, are more likely to are unsuccessful if those leading change give attention to changing just structures and systems, paying little focus on softer levers and mechanisms such as symbols, rituals and routines. The strategic treatment can be used to identify which change levers to work with.

Interventions need to be designed to take away the barriers to change in the prevailing state of the organization, and create the new structures, systems, routines, rituals, symbols, and tales to effectively put into action change in the business. Communication, education, training and personal development initiatives may also be required to help individuals embark on the changes required of these. The greater the level of change, the greater such initiatives will be required.

Realignments may still need a change in the nature of the work that people do and the final results they achieve, such as degrees of efficiency and sales or customer response of the Kingfisher Plc.


Mainly organizations have discovered to make minimal, day-by-day changes to adapt to unplanned or anticipated events and it is changes of some magnitudes, especially where they are performed quickly, that style to be the most problematic. These are also known as as the factors leading to the change implementation in the business. These factors determine the need for changeq. These can be interior and external triggers or factors of change management to use the change. You will discover following factors impacting the strategy of the Kingfisher Plc resulting in the change management in the business.


It is important to stress that environment is not only 'everything out there'. to distinguished between those parts that are usually considered more important by organizations and the ones that are not, the terms 'job environment' and 'wide environment ' are borrowed from a vintage research by Dill (1958). Huge environment is one step taken off the business, whereas job environment is the fact Area of the total environmental that is most relevant to organization in conditions of attaining its goals or aims. Because its impact has experience as immediate and pressing, this is where firms have a tendency to concentrate the majority of their attention (Dill 1958). There will vary types of the factors which affected the Kingfisher Plc and leads the organization towards execution of the change in the origination, like the macro-economic factors such as politics, legal, environmental and public factors and the competitive environmental factors as identified by Porter's five makes, competitors, threat from substitute, dealer or customers and the competition environment of the Kingfisher Plc.


Change to process factor often occurs because of the impact of triggers in the duty environment. Some however can come up internally and become spur for change in their own right. Example of those can require internal change are enhancements that enhance the way that something is manufactured, or allow a service to be provided at a low cost, or the development of new products that permit the firm to diversity. There are following inner factors which are deriving the Kingfisher Plc for applying change in the organization,


Development of new products or processes

Job redesign

These all above determined Internal and exterior factors causes the Kingfisher Plc to implement change in the organization to attain the goals and objectives of the firm over time.

Resource implication:

There will vary resources that are required by the Kingfisher Plc to build up and execute effective change strategy in the business. These factors are the Human resources like the labor force and the managers required to effectively deal with the changed structure and business processes of the Kingfisher Plc. This also includes the hiring, training and development, rewarding, motivating and retaining the human resources of the organization. Other resources required to effectively use change are physical resources e. g. equipment, vehicles, structures; money e. g. costs of training, redundancy costs, relocation costs; new building, refurbishment of existing structures. The Kingfisher Plc has to consider the success and availability of these all above given factors to effectively and efficiently put into practice change in the business.

The lack of ability of the management to effectively manage the source of information implication while controlling change can lead the organisation into the failure rather than success. Because the resources play a vital role in the introduction of the organization for example minus the effective recruiting the organization will not be able to keep on the organizational functions or the grade of these activities will be very poor resulting in the inability of the process. Similarly the money are also very important for execution of the change in the company because the finance is the soul of the company and organization may survive without success but it cannot make it through without effective money.

Systems and ways of involve stakeholders:

The Kingfisher Plc must develop appropriate systems and the strategies to involve the shareholders of the business along the way of implementation of change in the business. These systems have different functions by which the management can effectively involve the stakeholders of the business along the way of the change to make the implementation more lucrative.

There are following stakeholders of the Kingfisher Plc who is able to effect the strategies of the business and also have important influence on the performance of the origination,








I will analyse the importance and the power of all stakeholders and these will be prioritised predicated on their influencing power to have an impact on the change management process of the organization. To be a change manager I am going to use the sic steps model to involve the stakeholders in the change procedure for the Kingfisher Plc. These steps are the recognition of the stakeholders, prioritising stakeholders, mapping the account of the stakeholders, develop communication and engagement strategy to involve stakeholders along the way of change, optimising their support by effective command skills and the last is the monitoring change.

Change Management Strategy:

To effectively use the changes and to make the change management more fruitful, I've developed the change strategy which includes different steps or systems to entail the stakeholders effectively in the change process to make the change process quick, efficient and fruitful. These steps include,

Preparation of change: the first rung on the ladder is the preparation for the change to be applied and this will include the analysis of the inner and external pushes effecting the change and then using the effective communication to speak the necessity for change with the stakeholders of the business.

Building eye-sight for change: the next step is the introduction of the eye-sight to inspire the stakeholders of the business to the change process. The clear eye-sight can form the change more effectively and easily because it motivates the included individuals towards achievements of the mentioned goals.

Path of change: the change strategy will be developed and all the stakeholders will be involved in the decision making criteria so that they can understand the importance of change plus they can play their role as members in the change process.


Woodrow Wilson "If you wish to make enemies, try to change something", encouraged. When seeking to Change a business, it is strategy or techniques, leaders come across Newton's law a body at rest will stay at leftovers, advocates for change is greeted with suspicion, anger, resistance, and even sabotage. 4 (www. 1000ventures. com). But, Richard Branson has been very competent in handling corporate change and change (Manfred, 1998). The guy can achieve this because he envisions, empowers and energizes his employees. Subsequently, the framework and design of his companies helps him to institute effective control and reward systems.

An organization can create an effective environment, both internally and throughout its supply chain, which stimulates an opportunistic position to be adapted. On the other hand, despite how friendly an organization is to change it will still face a degree of employee, provider, distributor, stakeholder and consumer amount of resistance to change it could manage to decrease the frequency and potency of such amount of resistance but it will never get rid of the fear of undiscovered.

There are different reasons anticipated to which the employees and the clients of the Kingfisher Plc resisted to the change being put in place by the management of the Kingfisher Plc in every the degrees of the business these factors which causes the resistance to improve. These factors can be summarised as follows,

Lack of confidence

Lack of trust

Lack of the competencies

Fear of lack of something of value

Ineffective communication by the management

Lack of clarity of the change being implemented by the organization

Strategies to reduce resistance to improve:-

The Kingfisher Plc must develop effective communication strategies and the operations to put into action the change and reduce amount of resistance regarding the change being integrated in the business. These strategies are the involvement of different stakeholders along the way of the change management to make sure they are motivated and targeted into the change being carried out.

There are different steps which Kingfisher Plc should take while expanding change strategies in the business,

Development of the effective quest and Perspective regarding change

Development of the communication ways of communicate mission and vision of the organization

Involve all the stakeholders through the six steps described above

Reducing the concerns of the personnel and people by providing them training and effective skills to tackle with the change and making them more competent

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