Understanding and Leading Change in Retail Industry: Tesco, Unilever, and Morrisons

This report discusses the drivers and impacts of change in Tesco, Unilever, and Morrisons, and how it affects their strategies and operations. It includes a PESTEL analysis and evaluation of leadership, team behavior, and force-field theory.

UNDERSTANDING AND
LEADING CHANGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTEL analysis for each of the company to identify the drivers of the change.......................3
Impacts and drivers of change and the ways through which they impact the companies...........6
Evaluating how change will affect leadership, persons and team/group behaviour..................11
Concise discussion regarding force-field theory........................................................................14
Changes to be made...................................................................................................................15
Discussing the intended change and drivers for the change and discussing how this change will
help the company.......................................................................................................................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
The major meaning or the concept of understanding change and also further leading
change mainly refers to preparing the participants or the employees in case of the organization or
the company in particular for the purpose of meeting the issues, problems or the challenge
regarding the initiation or the implementation of the change as well. Change is a very necessary
aspect of an organization if the change is led as well as understood in a manner that is proper.
The business or the company in particular should implement changes rather than fearing
changes. The change within an organization generally indicates amending or remodelling aspects
of the business environment of the particular company. There are plenty of the resources due to
which change within a company occurs. The changes can be in the structure of the company, the
technology, the people, etc.
This report below states information regarding three major companies operating in the
retail industry dealing with the consumer goods in particular. These three companies are Tesco,
Unilever as well as Morrisons. This report in particular gives information related to the drivers of
the change and the impacts they have on the working of the businesses in particular. The report
also gives brief information regarding the selected organizations. Also, PESTEL analysis of all
the selected companies and impact of change on the strategies and the operations of the company
are provided below. The report below states information regarding the ways through which the
change in particular impacts the team work, individuals and the leadership in the companies.
MAIN BODY
The chosen organizations are Tesco, Unilever and Morrison's.
PESTEL analysis for each of the company to identify the drivers of the change.
Pestle analysis.
The PESTEL analysis is basically a study that identifies as well as evaluates the external
factors of the environment (Alanzi 2018). Further, is the PESTEL of the companies;
Particulars Morrisons Tesco plc Unilever firm
POLITICAL 1. Brexit seems
the main
challenging
1. Import duties
within Asia
and China
1. Associated
legislations of
the European

political aspect
which changed
rules plus
regulations
regarding all
relative
countries.
2. Huge influence
on Morrisons
plc because of
political
legislations.
affected
exports
concerning
products that
are transferred
to countries.
2. Tariffs on
substantial
supermarket
chains have
increased the
prices of goods
provided by
Tesco firm.
commission
and related
food & drug
administration
seems needed
for compliance
by Unilever.
2. Confinements
during import
and export can
hamper the
prosperity of
Unilever.
ECONOMICAL 1. Prices of oil led
to tighter
budgets
regarding the
consumers.
2. Brexit event
caused
significant
fluctuations on
UK's currency.
1. Rising labour
expenditures is
one very
important
economical
factor which
has affected
growth of
Tesco plc.
2. Related cost
structures,
pricing policy
and profitable
margins/return
s is yet another
aspect that is
counted within
1. The provision
of cheap
qualitative
products and
cost-effective
goods are
foremost
preferences of
Unilever.
2. HIgh inflation
rate is one such
economic
factor that has
great impact on
the
development of
mentioned

the economic
dimension
(Kabakova and
Plaksenkov,
2018).
company.
SOCIAL 1. Inreasing
concerns
pertaining
health of its
customers.
2. Rising age
population
within the
nation also
offered several
business
opportunities.
1. Tesco plc
should
acknowledge
changing
habitual
patterns
regarding the
consumers and
their health-
related issues.
2. Swift delivery
of its goods
and
accomodating
return policy
frameworks
could
definitely
increase firm's
profitability.
1. The solid brand
image exists
due to
associating
social aspects
that Unilever
firm considers.
2. Organization
also expresses
the desire to
modify and aid
people in
feeling and
looking good.
TECHNOLOGICAL 1. Investing in
technology has
assisted
company to be
more
1. Introducing
different RFID
technologies
within store
branches has
1. Organization
has emphasized
upon
developing the
techniques

efficacious.
2. Continual
improvement
within R&D
sector for
building
software
systems is also
productive for
the firm.
augmented the
consumer
experience
while
shopping.
2. Individual
mobile
payment
method known
as 'PayQwid' is
another of the
technique
which
increased the
purchasing
experience of
its consumers.
regarding
digital
marketing in
terms
concerning its
technological
tactics.
2. Unilever even
uses high levels
of automations
for being ahead
in its
competition
with other
firms.
Impacts and drivers of change and the ways through which they impact the companies.
Tesco.
Changes. Drivers of the
changes.
Impact on the
strategy.
Impact on the
operations.
Tax over the large chains of
supermarkets has particularly led to
increase in the prices of the goods
and the services that are specifically
offered by the company Tesco.
The banks are
required to create
and further
balance the
overall
nationwide
money supply in
particular.
The major strategy
which is particularly
followed by the
company is cost
leadership strategy.
In this strategy the
supermarket in
particular mainly
All operations
conducted by
the company
are majorly
impacted by the
increase in the
rates of taxes.
The production

targets on giving the
consumers, the
product at the value
that is minimum
and is affordable for
all the customers in
particular. Due to
the rate of taxes
being high the
strategy is being
completely
disrupted which has
further resulted in
the ability of the
company in
providing the
products and the
services at a low
rate as the company
has to increase the
prices.
is not possible
at minimum
rates due to
which the
overall profit
margin of the
company is
highly
impacted.
The policies regarding the fast
delivery as well as the flexible return
of the goods will majorly impact the
profitability of the company.
Change in the
preferences of the
customers and
mainly inclination
of the customers
towards a
comfortable
lifestyle.
Tesco mainly aims
at giving the most
suitable and the best
possible services to
the customers of the
company, but such
policies are
particularly
lowering the
revenue generation
The number of
orders that the
company is
getting through
its online
platforms

of the company in
particular.
Introduction of the technologies
regarding the RFID in the stores has
further enhanced the customer
experience in the offline stores.
Long queues in
the area of billing.
This has particularly
improved the
existing strategies
or techniques within
the company as
most of the work is
done through the
scanners in a
manner that is way
easier.
This has further
enhanced the
overall
customer base
of Tesco and
also the
consumers who
were
particularly
avoiding the
supermarkets
due to this
specific reason
only are also
now coming to
the offline
supermarkets.
Higher cost of labour is one of the
most relevant economic factor that
has particularly impacted the growth
of Tesco in particular.
Government has
also particularly
set a standard rate
of the labour for
the major purpose
of avoiding any
abuses happening
with the labour.
The company
particularly aims at
decreasing the cost
of the company in
every manner that is
possible and due to
the standard rates of
labour, the company
further is not mainly
able to cut the
overall costing.
Further, as a
result the total
operations that
are conducted
by the company
are also
disrupted or
hindered and
also the
company's
hiring capacity

is reduced.
Unilever.
Changes. Drivers of the changes. Impact on the strategy. Impact on the
operations.
Restrictions related to
the import as well as
the export can further
hinder the overall
growth and success of
the company.
The government laws. This has particularly
impacted the overall
strategy of Unilever
for increasing the
levels of export due to
the low prices of the
products of the
company.
This has also majorly
impacted the overall
operations of the
company as the
company can only
export the goods of the
brand Unilever itself at
the most affordable
prices. This has mainly
impacted the
performance and the
total growth of
Unilever.
The company focused
on the development of
the techniques related
to the digital
marketing in the
technological aspects.
Increased use of
digital platforms by
the present generation
and individuals in the
market.
This particularly
works as a good
technique for the
company in particular
as it believes in
providing all the
products and the
services at the most
affordable prices and
the digital ads are the
most suitable option
for the company in this
This has also impacted
the operations of the
company as the total
sales and further
revenue is increased of
the company and the
requirement of new
staff is also increased
for managing the
overall operations of
the company.

case (Reza, 2020). As
they are cheapest and
will also be effective
for the working of the
company.
The company further
expresses a desire
related to felling as
well as looking good
of the people or their
customers.
Increase in the levels
of interest in personal
care.
Unilever particularly
deals in the products
and the services
mainly related to
personal and beauty
care (Sari, 2019).
Hence, this specific
change has a positive
effect over the
company as the
company is dealing in
such products already.
Therefore, due to this
Unilever has become a
leading brand of the
beauty soaps and is
experiencing an
immense rate of
growth in the market
in particular.
Increase in the levels
of inflation is one
major factor of the
economy which affects
the levels of growth of
the company.
The hit of the
pandemic- Covid 19.
The strategy of
Unilever is basically to
provide the products
and the services to the
customers of the
company at the lowest
prices (Cusworth And
et.al., 2022). But
because of the increase
in the inflation the
company is not able to
do so.
This has majorly
impacted the overall
sales and the revenue
generation levels of
the company. And also
it has negatively
affected the image of
the company in the
market.

Morrisons.
Changes. Drivers of the changes. Impact over the
strategy.
Impact of the
operations.
Brexit has been one of
the major challenges
that is faced in the UK
business sector.
Immigration,
economic issues,
sovereignty and the
anti- establishment
policies.
This has impacted the
company in a positive
way as the market
share of the company
has increased as
Morrison's only
focuses on the market
of UK.
This has led to
increase in the levels
of profit generation
ratios of the company
which has further
made the company's
working more
efficient.
Increased concerns
regarding the health of
the customers.
Change in the thinking
patterns of the
customers.
This has increased the
inclination of the
company in relation to
enhancing the
production of healthy
products.
Increase in the sales of
the goods that are
healthy and decrease
in the sales of the
goods that are not in
this category.
The oil prices in the
UK led to tightening
the budgets of the
customers.
The war among the
countries of Ukraine
and Russia.
The increased prices
of oil have further
resulted in decrease in
the overall sales of
Morrison's.
This has made the
process of bouncing
back in the market for
the company more
time- consuming.
Investing in the
technology has further
allowed in enhancing
the efficiency levels of
the company.
Increased competition
and fast moving
environment.
This has impacted the
performance of the
company positively
(Energy, 2018).
This has also increased
the competitive
advantage and
effectiveness in
management of the
operations of the
company.

Evaluating how change will affect leadership, persons and team/group behaviour.
Change affects the organizations in a number of distinct ways in specificity. In an
obvious manner, this is something which affects mainly all mentioned aspects of differently
oriented organization and business firms in particular. In the same way, the majority of resources
including one of the most vital resources within the organization that is shaped up by the human
resource segment in particular. Moreover, this HR department is considered as the most
impactful or influencing dimensional section of the organization that is both affected by and
affects change within any given firm (Nandasinghe, 2020).
Tesco
Changes
Tesco has
initiated
different
technological
uses which
has facilitated
the entire
customer
base of the
company
with comfort
and easy
billing
procedures. It
has designed
its own
payment app
and is also
indulged in
RFID
technology.
Internal
/
externa
l
Internal
change
Impact on
leadership
behaviour
Leadership in a
company is one
important thing,
as the
leaderships is
that one thing
which is
accountable for
many decisions
regarding the
productivity of
the company
(Cortellazzo,
Bruni and
Zampieri, 2019).
Here with the
technological
advancements,
the leadership of
Tesco is even
more enhanced
and is taking the
effective
decisions. The
leadership also
introduced the
training sessions
Impact on
team/
departmental
behaviour
This even
made the
teams happy
as there will
be lot to learn
as well as
with the
advancement
s there is less
workloads on
the teams.
Impact on
individual
behaviour
This made the
individuals also
happy as they
can now make
the use of fast
technologies and
cut short their
working
procedures.
measures to
minimise
negative
impacts
In order to
avoid the
bad impacts
the company
should be
providing
training
sessions
which will
make the
workforce
trained.

for the
technological
uses which will
help the
company in
becoming
efficient enough.
Morrisons
Changes
A big change
in the food
products, as
per the
healthy
environment
and healthy
lifestyles of
people.
Internal
/
externa
l
externa
l and
internal
Impact on
leadership
behaviour
The leadership
of a company is
termed as
effective when it
is flexible
towards the
changes that
take place in the
outer
environment
(Eva and et.al.,
2019). Here with
the huge shift of
customers
interest, the
leadership of the
company got in
tension but has
also taken
effective
decisions
regarding the
management of
healthy product
range.
Impact on
team/
departmental
behaviour
This
impacted in a
bad manner
as it is a huge
change that
the teams
will have to
work on now.
Impact on
individual
behaviour
This also made
the work of the
individuals
heavy and it
gave a huge
responsibility to
them with the
launch of new
healthy products
as well as the
sales of these
products in the
market.
measures to
minimise
negative
impacts
Each and
every
employee
should be
motivated
by the
company
during the
motivation
programmes
and should
be taught
with the
right and the
short way of
doing the
functions.

Unilever
Changes
Change of
high prices in
the company
because of
the Covid-19
times.
Internal
/
externa
l
Externa
l and
internal
both.
Impact on
leadership
behaviour
This situation
brought up a
huge challenge
for the
leadership of
Unilever as the
leadership will
have to now
come up with
alternatives, in
which the cost of
the company can
be reduced as
high prices were
affecting the
brand image
(Gandolfi and
Stone, 2018).
Impact on
team/
departmental
behaviour
This also
brought
troubles for
the teams as
they were
asked to
manage the
waste and
take the
actions
according.
The waste
management
also raised
the burden as
well as
consumed a
good amount
of time of the
teams.
Impact on
individual
behaviour
This also made
the individuals
of the company
unhappy as they
were now
suppose to
follow each and
every step and
have to give
more time to the
avoid the
wastage of
resources.
measures to
minimise
negative
impacts
The
company
should now
come up
with the
new plans
of
motivating
the
workforce
such as the
non
monitory
benefits in
order to
keep the
interest of
the
workforce
associated
with the
company.
Concise discussion regarding force-field theory
The theoretical model of force field has been given by Kurt Lewin which is field-based
theory that creates 2 forces, first of which is considered driving force against other force that is
said to be a restraining one. It has also been compounded from Lewin that an organization needs
maintaining both within the organizations. This is required to push changes which will timely
strengthen the company position (Muldoon, 2020).
Another thing which has been illustrated in this force-field theory seems similar based on
Newton's theory regarding 1st law of motion. It has been critically addressed that such body

remains within same state until it is enacted upon through the outer forces and its has been
likewise case concerning the organization. Such theory would be applied within the organization
through using management technique that permits organization to search for such forces which
demands changes including the visualizations which are against relative proposals of alterations.
Tesco plc has started manufacturing food items for its people who are diet concerned. Such
innovation in edible services was adapted through the company post registering the concerns of
associated obesity issues which are increasing. Unilever firm has also adopted high levels of
automation within its company for raising the customer base and appealing to large profits within
markets by providing efficient and quick services (Loewenthal, 2022).
Changes to be made.
Tesco is one of the largest retail company of UK which is intending to bring number of
changes in its inner structure such as the digital transformations, remote working and leadership
management. This will improve the functioning of the company and will benefit the company in
many ways.
Discussion of resistant and driving forces plus assigning numbers 1-5 based on strength of force
Resistant force- Such forces are that forces which stop organization regarding the changes being
required by the company.
Resistant forces Numerical figures
Dependability 5
Ambiguity 4
Belief in management 3
Group-based resistance 6
Concern for private losses 6
Driving force- These forces are those that compels company to alter its intrinsic environment
and offer creative products including services within the market spheres.

Driving forces Numerical figures
Market spheres 5
Technological inputs 5
Employment markets 4
People issues 4
Internal drivers 5
Discussion of ways with which organization can decrease these resisting forces
The organization could reduce resistance to change through choosing appropriate
strategies within the organization. These strategies have been mentioned as follows:
Support and abetment- This method helps companies to take out fear regarding employees
which can occur due to many/any number of rationalities. Employees seek the emotional
assistance that could be facilitated through the organization.
Agreement and adjustments- Such technique basically comprises bargaining with tough-minded
individuals who are not adapted to the change due to quite distinct aspects which are the
rquirement of numerous organizations.
Facilitating inclusiveness and participation- Participation and inclusion of workers aids
organization to enhance the habit regarding change. Associated staff members and almost all
workers should be included in this process regarding change and need to be allowed for
expressing their sentiments in confrontational cases with their managers (Qi and et.al., 2019).
Discussion on how organization could achieve the aims by deducting barriers while applying
changes
The all over objective of company is to accomplish higher rates concerning profits within
the market. Nurturing habit which is adjusted for changes assists firm to develop both internally
plus extrinsically. The obstacles are such that stop organizations to modify for betterment and
grow, although overcoming such barriers aids organization to develop at great speed ultimately
targeting expected profitability of respective company. Such resistant forces form the biggest

obstacles, but it could be avoided with proper inclusion of every co-worker within the
organization. Furthermore, companies such as Tesco plc, Unilever, etc. always are available for
changes as their capabilities regarding facilitating assistance within the organization is adequate
enough (Minatogawa and et.al., 2019).
Discussing the intended change and drivers for the change and discussing how this change will
help the company
Type of Change
Digital transformation
Remote working
Leadership management
Current impact on the company
This change is resulting in a
very good manner for the
company as now the company
is able to generate good
revenue as the digital
transformation has enhance the
base of customers for the
company
This particular laid a very good
impact as the company did not
have to stop its operations.
This also had a good impact on
the company as the company is
now performing more
efficiently.
Desired impact
The company wants every
customer to have great
experience while shopping at
Tesco plc as it will create a
goodwill of the company in
the market.
The company wanted to
provide employment to the
people and at the same time
wanted to earn good profits
during these times.
To become one of the best
company with the best
management.
Lewin's change model.
Lewin's model enables the organization to discreetly select and implement the changes. With the
help of this model company can effectively and efficiently incorporate the changes in the
business. Motivation for change must occur before putting the change into action in the
organization. This model has three crucial stages i.e. refreeze, change and unfreeze (Galli, 2018).

Lewin's model also supports the organization by motivating the employees which indirectly
supports the company's growth. This also offers organization a positive competitive advantage.
Unfreeze Change Freeze
3. Effective
communication in the
organization.
4. Rewards and
recognition for the
employees.
5. Due to punishments,
there are negative
implications.
6. It involves preparing
the organization for the
changes which are
going to be
implemented.
7. It is an actual
implementation stage.
8. Adaptation of
strategies which
supports the changes.
9. Communicating the
stakeholders regarding
the change in the
organization.
10. Reward becomes the
motivation and driving
force of change
acceptance.
11. It is a stage where
employees in the
organization moves
towards a stable
position with respect to
the change
(Rosenbaum, More and
Steane, 2018).
12. Proceeding with the
market research.
13. Implementing new
methods of training for
leaders.
14. Building interaction
among the employees
and leaders within the
organization.
CONCLUSION
The above report has comprehensively concluded that it is important to understand the
change before implementing the same in the organization as it will simplify the areas of change
and strategies for the implementation of the same. Change is the only constant in the business, as
it keeps the business competitive and sustainable in the market. Report elaborated the impact of
drivers of changes on the three competitive organizations under the retail sector in UK. report
presented the change of the remote working, leadership, management, digital transformation. At

last, it highlighted Lewin's change management model which systematically implements the
change in the organization.
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