Impact of Change in Organizational Strategy and Operations: A Comparative Study of Sainsbury and Tesco

CONTENTS
INTRODUCTION............................................................................................................................. 3
P1 - COMPARE DIFFERENT ORGANISATIONAL EXAMPLES WHERE THERE HAS BEEN AN IMPACT
OF CHANGE IN AN ORGANISATION'S STRATEGY AND OPERATIONS..............................................4
P2- EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF CHANGE AFFECT
LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS WITHIN AN ORGANISATION.........................6
P3 - EVALUATE MEASURES THAT CAN BE TAKEN TO MINIMIZE NEGATIVE IMPACTS OF CHANGE
ON ORGANIZATIONAL BEHAVIOR..................................................................................................8
P4 - EXPLAIN DIFFERENT BARRIERS TO CHANGE AND DETERMINE HOW THEY INFLUENCE
LEADERSHIP DECISION MAKING IN A GIVEN ORGANISATIONAL CONTEXT..................................10
P5 - APPLY DIFFERENT LEADERSHIP APPROACHES TO DEALING WITH CHANGE IN A RANGE OF
ORGANISATIONAL CONTEXTS......................................................................................................12
CONCLUSION............................................................................................................................... 14
REFERENCES.................................................................................................................................15
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INTRODUCTION
An organization's success is totally depended upon the transformation and adapting to change
in transformation. It is important that an organization develops a strong culture within its
environment so that all members of an organization working in an environment which helps in
nurturing the individuals and take them to the path of success. An organization consists of
many departments that constitute to form an organization (Sheehan & Cooper, 2011). It is
important that these departments are well managed for the overall success and smooth
functioning of an organization. Several departments include Operations Department, Human
Resource Department etc (Leonard, 2011). All these departments are managed and operated
by employees and each employee is assigned a specific job role for the smooth functioning of a
department. A department in an organization has a leader that leads a team and thus
leadership becomes an important part of the organization. An organization must strive to move
forward despite the fact that internal and external changes may hinder its growth and
developments in the long run. In this assignment, a comparison is made between the two
organizations, namely Sainsbury and Tesco for understanding the changes in organizations and
various measures taken by these organizations in response to change.
Sainsbury PLC is one of the largest chains of supermarkets in England and was founded in 1869
by Mr. David Tyler, whereas Tesco is a multinational retail company founded in the year 1919
by Mr. Jack Cohen.
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P1 IMPACT OF CHANGE IN BOTH ORGANISATION'S STRATEGY AND
OPERATIONS
Change is inevitable and same can be applied to small and big sized organizations. Increase in
competition in the retail industry, including the retail stores, supermarkets forces an
organization to make changes in its business model in order to sustain in the market (Fleisher
and Bensoussan, 2015). In case of Sainsbury, this organization is also compelled to make changes
in its policies and business model to improve its pricing and revenue.
Major changes in Sainsbury’s operational model include changes in the pricing segment. The
company is cutting the job roles in several departments in order to match up to the increased
budget of the organization. The company is shifting employees from one department to
another and assigning multiple responsibilities to staff members. This way the company has cut
more than 500 jobs, thereby increasing the job responsibilities of more than 4000 employees
across several departments.
Another change in method of operations includes Change in Shift Timings of the employees
across 140 supermarkets, as employees are offered night shifts, early morning shifts and late
evening shifts, these changes affect the morale and create disturbance in the mindset of
workers and employees across all departments which in turn accounts to an operational
concern for an organization.
There are several retail concerns for Sainsbury as the buying trends are continuously changing
in the entire UK. This, in turn, is forcing Sainsbury to cut more jobs in order to accommodate
buying trends in the current market. The company is focusing to hire only those employees who
understand the current market trends for gaining the interest of customers.
These changes in an organizational model are necessary for not only Sainsbury but all retailers
with a focus for future developments and reducing the redundancies in the operational
framework. These changes will help Sainsbury to improve the quality of its product and services
which can be easily accessed by the customers at affordable prices.
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