Leadership and Change Management: Impact on Business Operations and Strategy

This article discusses the impact of change on business operations and strategy, the influences of drivers of change on organizational behavior, and the obstacles to change on leadership and decision making. It also applies a range of leadership approaches to a change initiative. The case study is based on Tesco and Marks and Spencer.

Understanding and
leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Comparison of outcome of change on business operations and business strategy.................3
TASK 2............................................................................................................................................9
Evaluate the influences that drivers of change have on organisational behaviour.................9
TASK 3..........................................................................................................................................15
Influence of obstacles to change on leadership and decision making..................................15
TASK 4..........................................................................................................................................17
Apply a range of leadership approaches to a change initiative............................................17
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................21

INTRODUCTION
Change is considered as the alteration in the actions which are taken by the organisation
with the purpose of bringing changes in the major factors of company like culture, strategies,
policies, process, technologies and other factors which need improvement regarding the change
for running the business. Organisation execute several types of changes in business environment
including structural change, transformational change, remedial change and so on. Businesses
tends to create several changes in terms of making transactions from the current status to the
future desired status (Pastrana and Tobón, 2020). There are several challenges which are faced
by the organisation at the time of executing changes in business operations. Here, the chosen
organisation is TESCO which is a multinational retailing store, situated in England, UK and
founded by Jack Cohen in 1919. Company deals in diversified range of products like clothing,
food, financial services and many more. Further, the suitable topics are covered including the
impact of changes over the business strategies and the impact of internal and external factors
over the organisational behaviour. Despite from this, significant barriers in change also impact
leader’s decision making and leadership approaches which is helpful for businesses to initiate
changes.
TASK 1
Comparison of outcome of change on business operations and business strategy
Organisational change impacts the business strategy and operations which leads to
implement the change of business firms in regard of altering the overall business strategy for the
smooth enforcement of change. The changes lead to create shift in the culture of company that
impacts the daily operations and strategy of an organisation (Elsbach and Stigliani, 2018). The
retail sector is facing suitable crisis due to COVID-19 that impact the retail supply chain,
profitability and workforce. TESCO and Marks and Spencer, tends to execute changes which put
major impact over the business operations and strategy of the enterprises. For this, the
comparison among these changes are mentioned as: (Kotter, J.P., 2012)
Organisation 1 TESCO
Changes- PEST/SWOT- TESCO has executed technological change regarding the
enhancement of online shopping and also make sure the digitalisation within the company.
Company also created their own website to attract online shoppers as this change is the main

reason for the suitable profitability of company during COVID-19 (Raben and et. al., 2017).
Digitalisation tends to put emphasis on providing safe delivering for the online orders that will
help company to reach towards the number of customers. Digital development is important for
the retail firms as it is useful in order to prepare for the future with rapid digitalisation of several
business process. Another change is the enforcement of several technologies to enhance the
safety of consumers and employees at the time of pandemic. The company consider one-in-one-
out system to restrict the number of customers present at the physical outlets (Wu and et. al.,
2018). Tesco also develop the checkout stations with protective screens to enhance the safety of
customers and also provide their drivers for the sanitization and safety equipment like protective
gloves to make sure the safe delivery.
Drivers of change- The basic driver of change in the business terms is related to the
external factors for the enhancement of competition in e-commerce organisations. TESCO also
realised that the developing strong presence over the online market and own online shopping
portal is helpful for company to face competition at the domestic and international level like
Ocado and Amazon. Besides from this, digital economy and retail shopping has been enhancing
in the upcoming years. This is another external factor that has leads towards the technological
change at Tesco. Besides from this, COVID-19 trade restrictionsal so enhance the dependence of
retail firms on online consumers to achieve profitability. The value of technological change in
TESCO and how COVID-19 help in the digitalisation and technological change at the Tesco.
COVID-19 pandemic and trade restrictions which are imposed by the British government are
spreading for the virus are the main external factors that drive the technological changes in
TESCO. The company also implemented the new technology and system in physical stores to
enhance the employee and consumer safety.
Impact on strategy- At the initial time, the technological change impacts the digital
technology that put major impact over the business strategy of TESCO. The business strategy is
changed considering the safety and satisfaction of online customers by prioritised that
enhancement of digital change. The changes in business strategy is organised to get the desired
outcome from the technological change. The objective of this strategy is to enhance the smooth
implementation of digital technology. Here, Tesco is able to enhance the online sale after the
pandemic due to the changes in business strategy to make sure the smooth digitalisation and
provide online customers to enhance the satisfactions.

Impact of operations- The operations of business at TESCO are also impacted by the
digitalisation as the digital technology adoption is beneficial for the organisation as it leads to
enhance the efficiency and also provide effective experience to customers (Montanía, Fernández-
Núñez and Márquez, 2021). Operations at TESCO are enhanced with the help of digital
technology and the firm is able toprovide better services to the online customers.The operations
athe TESCO are changes at the workforce need to follow several measures to minimise the
spread of covid-19. Here, employees need to make sure that the consumers adhere the one-in-
one-out system and also use the protective screening at the check-out stations properly.
Organisation 2 Marks and Spencer
Changes- PEST/SWOT- Here, company executed operational change in terms of facing
high losses by which company get suffered. In this context, Marks and Spencer need to
implement lay-offs for the more than 7000 jobs at the global level to deal with the global
pandemic. These lay-offs will impact the headquarter of regional management in the stores of
UK in the next three months. Here, company consider technological change as the company
implement it regarding the suitable transformation for the developed digital capabilities and also
face the ongoing crisis related to global pandemic which is COVID-19The company also
expanded its pay and move towards the apps which are based on the services in 573 stores across
the UK. The objective of technological transformation is helpful for the company to enhance the
both online sale and physical store sale. Additionally, respective company has partnered with
Microsoft to promote more flexible working culture and also save costs to enhance the overall
productivity. As these changes are executed for the enforcement of digital understanding and
approaches firmly within the company.
Drivers of change- The basic driver of operational change is the disruption at theretail
clothing due to COVID-19. For this, the previous year (2020), has become the worst year for the
British retail firm as the shares of company gets down by 2.8% and clothing and home
salesdecreased by 29.9% within 8 weeks as the store reopened. The basic driver of technological
change in respective company isCOVID-19 global pandemic. It leads to develop intense
competition in the retail sector and also increase the demand for online shopping that has
increased the need for the development of effective online channels at the retail organisations in
UK. Here, company is able to save costs and enhance the online sales through technology.

Impact on strategy- The lay-offs impact the strategy of respective company as company
need to alter the strategy to eliminate the negative impact of massive lay-off regarding their
existing employees of the company (Kabiru, Theuri and Misiko, 2018). The strategy of the
company tends to focus over creating and motivating the workforce and also take corrective
measures to recover from the damages whichare caused by pandemic. Technological
transformation at the organisation tends to impact the strategy of company that has to be invested
to enhance the digital skills of the workforce. Here, business strategy will get changed to make
sure that every employee in UK need to understand the use go app for the pay for their
concerning services so that they are able to facilitate the effective use of this particular services
and also help consumers to face any other difficulties.
Impact of operations- The operations of Marks and Spencer also gets impacted because
of the operational change as the workforce tends to have multi-task to maintain the productivity
of organisation. Additionally, the massive lay-off tends to save financial resources of the
company to enhance the business operations by the technological upgrades. The operations of
company also get impacted regarding the digital technology change that will reduce the
employee consumer interaction. For this, pay and go app based services is brought by respective
company regarding the technological transformation that will enable customers regarding the
purchase of products from the physical stores without the help of staff members at the store.
TASK 2
Evaluate the influences that drivers of change have on organisational behaviour
There are several internal and external elements that leads to impact the overall business
performance and overall functionality in several manners. Tesco, tends to analyse the significant
factors and also take decisions respectively for the overall purpose of attaining the business goals
and objectives. For this, SWOT and PEST analysis are discussed as underneath:
SWOT analysis
SWOT analysis depict the strategic tool which is executed by the organisation to analyse the
organisational competitive positioning and also help in the strategy formulation. Here, SWOT
represent the strengths, weaknesses, opportunities and threats which reflects the business internal
and external factors which are discussed as:

 Strength: It is determined as the internal factor of business that leads to provide the
significant competitive advantage instead of other competitors. Here, Tesco is the biggest
retailing organisation in UK and also have leading market share in comparison to the
other supermarket chain. Tesco conduct its operations by the e-commerce platforms that
leads to enable the company to perform things in an effective manner during the COVID-
19. Company also tends to provide the range of products and services in the diversified
market which is helpful for the expansion of business (Cheng and et. al., 2018). In this,
the organisations also use latest technology which is helpful to enhance the overall
experience of customers and also maintain the effective positioning within the market
area. Weaknesses: It represent the internal insufficiencies that limit the improvement of
business and effectiveness instead of other competitors. Here, Tesco fails in terms of
operating the business operations in Japan and American market and the organisations are
fined due to the false accounting declaration and misrepresentation of the profitability.
There are high credit card liability and debts of the organisation that directly impact the
profitability of business. Some of the stores of Tesco are not performing well in the
specific country because of the shortage of market research. Opportunity: It is the external factor that provide facilities to businesses by ensuring the
proper growth and development in the particular market area. The online shopping is the
best option that helps Tesco to serve the concerning products and services in the
pandemic and home delivery options that facilitates the businesses to improve the market
share of business (Bowser and MacPherson, 2021). Tesco also opt several options like
strategic alliances, joint venturing and the emerging market activities that leads to enable
the respective organisation in order to attract more customers. Threats: There are several threats which are being faced by Tesco that impact the overall
performance and efficiency of business. Tesco faces competition from the Aldi and
Walmart that leads to create threat for the organisational market positioning. In this,
Brexit is the factor that lead to impact the overall business performance and because of
this, Tesco is no longer in the European Union and also consider the significant
regulations of government, tax rates and other legal compliances as these are the factors
that impact the overall efficiency of business performance of Tesco.

PEST analysis
It is defined as the method of management which is used by Tesco to analyse and assess
the business external factors that leads to impact the business operations and overall performance
in positive and negative manner. As per this, company take decisions after analysing the factors
which are helpful for the growth and development of organisation. Political factors: Tesco is the multinational retaining organisation that leads to operate in
business operations in several countries. Here, each and every country poses their own
political regulations and government policies that is different from the others and also
impact the business performance and effectiveness (Brown, 2018). These norms and legal
alliances needs to be followed by the organisation to run their business in proper manner.
In this, Brexit tends to create the environment of uncertainty that impact the trade policies
of business. Economic factor: In this situation, the global pandemic of COVID-19 tends to impact
each and every sector in which people are not allowed to step out from their houses and
government also imposed lock down. Tesco tends to opt e-commerce and online delivery
options in regard of surviving in the concerning situation. Tesco provide range of
products and services to the customers so that the economic factor plays an important role
regarding the consumption of significant products (Qiao and et. al., 2017). There are
different factors which are included in economic factors like interest rates, growth pattern
of economy and foreign exchange rates that impact the performance of organisation and
overall productivity. Respective company consider these factors in regard of business
policies to gain several sustainable competitive advantages. Social factors: These factors undertake other different factors like customer’s health
consciousness, attitude of population and shared beliefs that affect business overall
performance level. Tesco undertakes several factors for the purpose of identifying and
understanding the needs of customers and their demands. Tesco need to follow all the
concerning needs and take measures to gain defined objectives in the best possible way.
For instance, because of the high demand of customers, the organisation provides
branded halal meat to their Muslim customers at some stores of UK. According to the
guidelines of COVID-19, Tesco also execute several measures like one-in and out to
maintain the limited number of customers and social distancing in the stores at the

particular period of time and also develop several sanitising stations for their customers
and employees to provide disposable gloves, hand get wipes and face covering to reduce
the spread of COVID-19. Technological factors: There are the continuous changes that are happened in the
technology and impact the organisation like innovation, automation, research and
development. Tesco is beneficial by opting several technological developments as
company also introduce clue-cards that facilitate business to achieve success in the
competitive environment. Also, company execute self-services at the check-out pints that
facilitates customers to reduce cost and further provide several advantages to them
instead of their competitors.
Measures that can be used to minimize negative impacts
Change- Technological change
Impact on leadership behaviour- According to the development in technology, it is
required for the leaders to provide proper training to their workforce so that they can operate in
an effective manner. By properly using the technologies, the leaders are capable to track
andmonitor the overall performance of employees and their overall productivity.
Impact on team/ departmental behaviour- Within the current business environment, the
trend of online shopping is enhancing at the very fast rate, so it leads to become essential for the
HR to recruit the significant workforce by which they can operate their functions and also fulfil
all the concerning demands of customers. It alsoincludes the technological progress that has
major impact over the business performance and profitability (Merchant and Lurie, 2020). Due
to this, each and every department gets impacted by this change as it need to provide training to
their workforce so that they can deal with their customers.
Impact on individual behaviour- The organisation starts online shopping and home
delivery services to their customers that leads to improve their business and concerning sales.
People also need to work in an efficient manner that tends to reduce the level of performance.
Measures to minimise negative impacts- Here, to reduce the negative impact of the
technology and overall change, leaders of the organisation tends to conduct significant meetings
andconferences to improve the understand the changes regarding employees. Tesco tends to
provide suitable training to workforce and also allocate work among them to reduce the
resistance of employees while adopting change.

Social change
Impact on leadership behaviour- It is the responsibility of the leaders of Tesco to
provide significant training to their workforce regarding the method of preparing halal meat and
vegetarian meat as well. In this the leadership of Tesco is to impact the changes because leaders
also face pressure to resolve the several conflicts related to Halal and cultural beliefs of Muslim
and other culture that create conflict.
Impact on team/ departmental behaviour- Tesco bring changes in the manufacturing
department to produce halal meat. Here, companies also conduct proper market research about
halal meat before launching it in the market to identify the social factors and also execute them
on the hierarchical level of business to run it smoothly. Here, all the departments in the
organisation tends to follow one-in and out method to maintain the social distancing in order to
provide sanitization and also facilities that improve the working limits of employees as it is
important to increase their overall safety (Fisher and et. al., 2018).
Impact on individual behaviour- Individuals also get impacted by the changes in social
factors. For this, it is important for people to have proper knowledge about halal and also
consider the culture and beliefs of Muslim culture and veganism. Further, individuals also
become more health conscious so that they can use proper sanitisation and other policies by
which they can protect from COVID-19.
Measures to minimise negative impacts- To reduce the impact, Tesco need to improve
the proper understanding regarding the culture and also provide training to their workforce
regarding the culture. Enhancing the cultural sensitivity and overall knowledge is required to
execute the social change that deals with different Cultures. Tesco opt several safety measures
like one-in and out and proper sanitisation to reduce the level of risk for the deadly virus.
TASK 3
Influence of obstacles to change on leadership and decision making
Discussion of force field theory
As per this theory, change within the organisation depict the environment of disequilibrium
among the forces that support change and other forces which act as the barrier to the proper
execution of change. It leads to make sure the effective execution of change which is to unfreeze
the driving forces and barriers that can create quasi-equilibrium within the company. Another

step represents the imbalance by enhancing the drivers of lowering the changes within the
obstacles (Ramahi, 2018). Lastly, it also tends to execute the change and refreeze forces and
reintroduce quasi-equilibrium. Hence, the objective of this theory is to determine the significant
factors that impact the critical citations to make the effective management of change and also
analyse factors that needs to be addressed to execute the change.
Changes being introduced by TESCO
TESCO’s initial step is the creation of digital capabilities to facilitate prompt product
delivery during the COVID-19 pandemic. During the pandemic, the company hopes to achieve
significant revenue by increasing online buying. TESCO has developed a user-friendly own-
brand website and increased online delivery slots to obtain a competitive advantage over other
companies during the pandemic.
TESCO is using a variety of measures to ensure the safety of personnel and customers at
physical locations while also limiting the spread of the epidemic. TESCO has implemented a
one-in-one-out system, which limits the number of people in the store. Additionally, every store
has signage to guarantee that social distance is maintained. Employees are given protective
equipment such as disposable gloves, alcohol-based hand gel, and wipes, and face covering is
required in high-risk zones.
Driving forces and obstacle to change introduced by TESCO
In order to combat pandemics, TESCO must embrace digitization and technological
advancement. If this change is effectively executed, the company will be able to quickly recover
from the global pandemic. The forces that are pushing this shift, as well as the ones that are
obstructing it, are outlined here. Each force is represented by a number from 1 to 5, with 1
denoting a weak force and 5 denoting a strong force.
Driving forces Competitive advantage: Enhancement of digital capabilities is beneficial for Tesco and
also helpful to gain competitive advantage within the sector. Here, the business firms are
capable enough to enhance the agility through the digital transformation to improve
speed-to-market and also opt continuous enhancement strategies (Kim, Park and Byun,
2020). It will provide competitive advantage of companies and also their quick digital
transformation which is helpful for the company to emerge as the most accessible and
successful company from the global pandemic and also get secure leadership position in

the retail sector of UK. This force is marked as 3.5 rating to gain the competitive
advantage by enhancing the longevity of an organisation. Preparation for the future: Tesco is capable enough to prepare for the complete digital
future by developing the capabilities before the opponents of industry. Here, the digital
technology is regularly penetrating the daily lives of consumers as the future digital
businesses will be the significant norm and physical shopping that will become extremely
rare. Here, respective company is able to prepare for their heavily digitized future by
executing the digital change. Therefore, this force is rated 2 as it is important to develop
future capabilities.
Restraining forces Time pressure: Tesco faces time pressure in order to develop effective digital capabilities
in quick manner and also provide online delivery services to the large number of
consumers before the rival company. The time pressure also acts as the barrier for the
effective execution of change as it improves the employee stress and further bring
complexities within the change process. This force is rated as 3 as it impacts the overall
productivity of workforce and acceptance of change. Complexity: Digitalisation is quite critical as it include the execution of implementation
of digital technology in several departments and also develop cross functional teamwork
(Moro-Lagares and et. al., 2018). Additionally, the business firms tend to develop things
at the digitally skilled workforce that enhances the critical factors of digitalisation. This
act as the change barrier for digital change in Tesco and this force is marked as 3 due to
the critical changes that get fail easily.
Actions which can help TESCO reduce obstacles to change
Tesco need to use GUT theory which is known as general unified theory for the digital
transamination to eliminate the complexity of digitalisation. This theory tends to provide details
about several elements which are important for the digital transformation and also interlinked
with each other (Terblanche and Bitzer, 2018). Tesco is able to use this theory to eliminate the
complexity of digital transformational and effective execution of change. Here, leaders of
company need to make sure that every management staff has significant times frames and
suitable resources for the execution of change and also face challenges. Therefore, it leads to

support from the leadership and also eliminate time pressure and help in smooth management of
change.
Attainment of organisational goals at TESCO by reduction of change barriers and effective
implementation of change
Tesco is able to achieve business objectives by the proper execution of digital change as the
company is able to develop digitally skilled employees and enhance the agility. Additionally,
company is able to provide digital shopping to each and every customer in UK and also gain
more profit instead of their rival companies. Here, the smooth change management of Tesco is
useful for the firm to achieve success rather than the pandemic and effectively recover from the
economic downturn in UK.
TASK 4
Apply a range of leadership approaches to a change initiative
Intended change in organisational
Tesco execute several intended technological changes in businesses like e-commerce,
online shopping and home delivery like the global pandemic of COVID-19 that leads to
misbalance the market condition. It is also important for businesses to execute the changes for
achieving the competitive advantage instead of other competitors. Here, e-commerce improves
the sales of organisation, customer base, profitability and market share (Buckley, 2020). Along
with this, the company also tends to opt several latest technologies in order to eliminate the
spread rate of COVID-19 like one-in and out system, use protective screens and also maintain
hand sanitisation stations by providing disposable gloves, face covers, alcohol based hand wipes
and many more. These changes leads to maintain organisational differentiation position instead
of other competitors and help in improving the business sales.
Reasons for change High profit margins: Considering the purpose of improving the profitability margin of
business, Tesco bring several changes in the working process and style of company. The
respective company also bring technological changes in business in regard of E-
commerce and home delivery that improve the customer base of company and reach
towards the profitability. Tesco also opt several advertisement and promotional activities
that leads to attract potential customers and improve the reachability.

 Reduce employee turnover: The company execute several changes in businesses, priory
employees resist changes but Tesco also get aware about the suitable changes that help
them and also perform things in suitable manner (Du and et. al., 2021). Execution of new
technologies tends to facilitates workforce by improving suitable skills, competencies and
capabilities to improve the working effectiveness and efficiency. Like, employees are
satisfied with their assigned task or job role then they can retain with business for the
longer period of time. Achievement of experience and skilled workforce is beneficial for
company. Provide competitive advantage: To improve the organisational efficiency of business
changes are implemented effectively. In terms of this, Tesco opt different technological
changes that eliminate the overall cost of business and provide competitive advantage
instead of other competitors in market area.
Change Lewin's model
This model includes three major steps that facilitates the organisation to implement changes
in company in regard of performing the significant functions in an effective manner. This model
is useful for Tesco to identify and understand the change process and also implement relative
changes in business to achieve suitable objectives in proper manner. Steps of change model is
discussed as: Unfreezing: It is essential for the company to make sure that all the concerning issues are
resolved before the starting stage of change execution. Unfreezing is the very first step of
change model in this company spread awareness considering the changes at the
hierarchical level of business and workforce (Curran, 2021). Tesco tends to provide
justified reasons to execute the changes and also listen the perspective workforce that can
become the potential barrier or issue in the execution of change. Tesco also resolve all
issues before the implementation of change. Company also provide rewards to employees
to opt change and perform properly. Change: In this stage, businesses starts executing change within the operations and
activities and Tesco also move to the new state of being by effective implementation of
change (Tonna and Mifsud, 2018). Tesco also need to plan and implement changes which
are useful for businesses to enhance the business process and also gain competitive
advantage rather than other competitors. The execution of technological change also

monitors the overall success and then execute it in the whole organisation to maintain
different position. Refreezing: It is the final step of this model in which company move from transaction to
the more stable phase which is equilibrium. Here, Tesco execute latest technologies and
e-commerce activities that accelerates the working of company. To reinforce the changes
in business, company provide recognition, rewards and positive motivational factors that
will in transforming the working pattern.
How change will be implemented
Type of Change Current impact on the company Desired impact
Technological changes The company execute several
changes in business which are
resisted by the employees due to
the fear of losing their job or
acquiring new things in their
routine (Saha and Wish, 2018). For
this, company opt advanced
technologies which are enabled by
the organisation and also help to
achieve sustainability objectives.
Proper execution of technology
tends to facilitates the business to
achieve several sustainable
competitive advantages for the
longer period of time.
Implementation of technology is
useful for business to eliminate the
cost and improve the accuracy of
work.
CONCLUSION
From the preceding discussion, it has been identified that the internal and external factors of
the organisation tend to bring major changes. The business strategy and operations of company
tends to impact the organisational change. In regard of this, PEST and SWOT analysis is helpful
to determine the internal and external changes of businesses. The organisational change impacts
the team, leadership and individual behaviour of company. Along with this, the force field
analysis is useful to analyse the forces that resits and support the change in organisation. This
provide proper information regarding the change barriers so that the concerning policies can be
executed to eliminate the change barriers and implement change appropriately. For this, Lewin’s
change model is used by business firms considering the three stages which is useful to execute
change.

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