Understanding and Leading Change in Sainsbury: Impact of Internal and External Factors

This report analyses the impact of internal and external factors on Sainsbury's organisational strategy and operations. It includes a comparison of different organisational examples, PEST and SWOT analysis, measures to reduce negative change, and barriers to change and their influence on leadership decision-making.

Unit 17 Understanding
and Leading Change

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
P1 Compare and contrast different organisational examples where there has been an impact
of change on an organisation’s strategy and operations..............................................................4
M1. Assessing the various change drivers in the each organisational examples........................6
P2. External and Internal change drivers which could result in affecting the team behaviours,
leadership and individual............................................................................................................7
PEST Analysis............................................................................................................................8
P3. Various measures taken to reduce the impact of negative change........................................9
M2. Implications of the internal and external drivers of change................................................9
P4 Explain different barriers of change and determine how they influence leadership decision-
making in a given organisational context. ................................................................................10
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making. ......................................................................................................11
P5 Apply different leadership approaches to dealing with change in the range of
organisational contexts. ............................................................................................................12
M4. Evaluate the extent to which leadership approaches can deliver organizational change
effectively applying appropriate models and framework.........................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Understanding and leading change is the planning of an organisation to bring influential
changes in order to reshape the internal structure of the organisation. The management of the
company brings such changes with the changing needs and demand of the customers in order to
have a hold in the market. It is very necessary for a company to be updated with the latest
changes in order to manage the operational activities of the organisation. The organisation is
continuously working towards the growth of company in order to generate profit for the benefit
of company. There are different phases that are considered by higher administration of the
company through the change management in order to solve the complicated method for
development of the organisation (AlMarwani, 2020). The organisation chosen in this report is
Sainsbury which is a retailer supermarket company that is located in United Kingdom. The
organisation is well known for its quality of goods with availability of online shopping for its
items, goods and services. It was established by John James Sainsbury in 1869, which is second
largest super market chain in the United Kingdom. This report will cover the different internal
and external factors which may bring a drastic change in business that may lead in impacting the
performance of organisation. It will also cover the PEST and SWOT analysis with different
business strategies that may help in bringing influential change in business.
TASK
P1 Compare and contrast different organisational examples where there has been an impact of
change on an organisation’s strategy and operations.
The need or requirement for improvement lays the foundation of change in order to
reshape the functioning of organisation. There is constant need for managing the business as the
business environment is very complex and uncertain, which in turn arises the need of plans and
policies. There are various kinds of activities that are done in an organisation which enables in
generating revenue for the organisation in the form of profit for its growth and development
(Bohman, 2019). In context to Sainsbury, the company is making constant efforts to evolve with
the changing methods and techniques in order to attract its customers for growth in its business.

Change can be analysed by comparing two different organisations in order to evaluate the
different policies of organisation. The company focuses on enhancing the productivity of
employees in order to increase its scope in the new market through its strategic planning which
in turn will help in building the value of brand in the market (Büyüközkan, Mukul, and Kongar,
2021). The satisfaction of stakeholders and employees play a major role in impacting the culture
of organisation and the motivating strategies even affects the strength of organisation.
Organisational change is the change that is made in organisation in order to enhance the
operational activities and functioning of business. The sustainability of organisation is
maintained with different policies and strategies in order to develop the organisation. The
adoption of new technology ensues the success of the organisation.
Basis Sainsbury Asda
Description of the
organisation
The organisation of Sainsbury
was founded by John James
Sainsbury in 1869 and has its
headquarters in Holburn,
United Kingdom. The
company specialises in
offering fresh food and quality
products in the market. The
organisation is constantly
working towards increasing its
market share all over the
globe.
The organisation of Asda is a
British supermarket which was
established in 1949 in Leeds,
England. The company is well
known for its food and grocery
items which are very famous
all over UK. It has multiple
stores and has even covered
huge market share in the
coming time.
Plans and strategies The employees of the
organisation are able to
compete with other
organisation with its effective
planning system (Friedman,
and Westring, 2020). There are
various methods used by the
The change in the structure of
company leads to
organisational change. The
change in organisation helps in
improving the functioning and
activities of company. It is
very necessary for a company

organisation in order to attract
the customers with its cost
friendly products and services
that allows the company to
gain huge profit in the market.
The employees are also
provided timely bonus and
other benefits which boosts
their productivity and helps in
development of the business.
to adopt to changes in order to
remain competitive in the
market. Small and Medium
organisations are able to get
directions through leaders and
managers.
Advancement of Technology The organisation is constantly
working towards adopting
different methods of
technology in order to expand
and grow its business which in
turn will help in attracting
more and more customers. The
organisation is also able to
execute effective and advanced
services to its customers with
the help of technology.
The commercialising of
products and services are
highly influenced through the
technology which is bringing a
change in the market with the
aid of social media marketing.
There is a major role of
technology in organisation
which has majorly affected the
operational activities of the
company.
M1. Assessing the various change drivers in the each organisational examples.
The company needs to bring effective changes in the organisation with the aid of
technology and other strategies which may enable it to maintain its position in the market. The
company of Sainsbury is the second largest supermarket in UK that holds good amount of shares
in the market (Galli, 2018). It has also attracted the customers by providing products at
affordable and reasonable prices. The main focus of the company is to satisfy the needs and

demands of the customers by producing and manufacturing products according to their taste and
preference which in turn allows the company to maintain its position in the market.
P2. External and Internal change drivers which could result in affecting the team behaviours,
leadership and individual.
The internal and external factors act as a resistant for the company which in turn helps in
achieving the objectives by imposing a major impact on the functioning of organisation. The
factors that affect the internal functioning of organisation are internal factors and the factors that
impacts the outer performance of company are external factors.
SWOT Analysis
The internal and external factors of the company are examined through SWOT analysis
which may help in determining the different aspects of the company (Hajizadeh, 2019). There
are different aspects of Sainsbury organisation which can be evaluated through such analysis
which is mentioned below:
Strengths
 The organisation of Sainsbury is
London stock exchange company
which is a renowned company which
provides smooth services to people.
 There is a huge customer base with the
Sainsbury company as it gives
preference to its customers by
understanding their needs and demands
and is also able to acquire higher
reputation with its presence in social
media.
Weaknesses
 There are various other retailer chains
in the market that may create a huge
competition in the market (Kozachuk,
and Conley, 2021). The company of
Sainsbury can have higher chances of
being declining in the market due to its
huge competition in the market with
fluctuating of customers.
 The products and services of Sainsbury
are quite expensive which has made it
difficult for normal customers to buy its
products with decline in the purchase of
its products.
Opportunities
 If the organisation of Sainsbury
Threats
 The legal rules and regulations makes

expands its market outside of United
Kingdom, then it can be a good
opportunity for the company.
 There are higher chances of acquiring
more and more customers with higher
customer-base and economic
development for Sainsbury
organisation.
the functioning of Sainsbury
organisation very complicated and even
endangers the operational activities of
organisation.
 The rise in technology and competitors
may prove to be a major threat for
Sainsbury organisation.
PEST Analysis
PEST Analysis is a tool that measures the internal and external factors of the organisation
in order to analyse its position in the market (Machalaba, and Sleeman, 2022). In context to
Sainsbury, the operational activities of the organisation can be determined with evaluation of
such analysis which in turn will also help in enhancing the performance of the organisation.
 Political factors – In context to Sainsbury, it is not influenced by decline in economy of
other countries as it mainly operates in United Kingdom. The Brexit period has majorly
influenced the political factor with withdrawal of UK from EU that have resulted in
inflation of rates that have increased among the customers.
 Economic factors – There is decrease in the sales of products due to decline in the
purchasing power of the customers with the impact of Brexit period. The Sainsbury
organisation should invest in other nations as the UK is facing economic stagnation. So it
is advisable for the company to divert its focus in other countries in order to generate
profit.
 Social factors – The company of Sainsbury is a retailer company that provides all kinds
of items and products under one roof with its attractive offers and discounts that attracts a
huge base of customers and even help in increasing the sale of organisation.
 Technological factors – The option of online marketing and availability of products has
played a huge role in increasing the sale of company with its technological advancement
(AlMarwani, 2020). There can also be decrease in cost of production with the
availability of technology in purchasing of products.

P3. Various measures taken to reduce the impact of negative change
The company should focus on decreasing the impact of negative change in order to
prevent the productivity of the organisation (Bohman, 2019). There may also be a huge impact in
the shares of the market with the impact of negative change which should be prevented in order
to generate profit for the organisation.
 Engagement of Employees – The engagement among the employees is very necessary in
order to work smoothly for growth and development of the organisation. The employees
should be included in the process of decision making which in turn will help them in
gaining recognition in the organisation.
 Upgrading knowledge of employees – The employees should be provided timely
training in order to enhance their skills and performance for development of the
organisation. The advancement in technology has also upgraded the skills and knowledge
of employees in order to work efficiently for the organisation.
 Leadership – There should be appropriate knowledge and skill of the manager or leader
which in turn will help in regulating the performance of organisation. The managers or
leaders should adopt effective changes in order to enhance the productivity and
functioning of organisation.
 Flexibility – The organisation should have a flexible base in order to smoothly enforce
changes in an effective manner (Büyüközkan, Mukul, and Kongar, 2021). The
organisation should enforce operational activities in order to manage the functioning of
organisation without any negative impact or influence.
M2. Implications of the internal and external drivers of change
The department of management should have good amount of control over different
environmental factors in order to prevent the negative impact of the company. These factors
should be controlled in order to manage the growth and development of the company. These
changes should be managed in timely manner in order to enhance the productivity of the
organisation (Kinchington, 2019) . The structure of organisation should be very flexible in order

to maintain its productivity for long term success of the organisation. There must be various
programmes organised for the enhancement in skills and performance of employees in order to
establish flexible changes in the organisation.
P4 Explain different barriers of change and determine how they influence leadership decision-
making in a given organisational context.
The management of organisation should have a deep understanding and knowledge in
order to manage the changes for effective working of the organisation (Kozachuk, and Conley,
2021). The change in organisation can be analysed with use of effective strategies which may
influence the process of decision making of organisation. The leaders and managers could
majorly influence the decision making process due to various hindrances in the organisation.
Structure of change – The employees of the Sainsbury organisation should be involved in
decision making process which will help in providing them validation. The process of decision
making enables in effective decision making in order to bring a positive change with growth and
development of the organisation.
Senior management modelling – The Senior executives of Sainsbury organisation will have no
impact with the enforcement of change in the organisation. The members of the organisation
including the employees always aims at securing their position in the market in order to stabilise
their position in the organisation. The lack of communication in the organisation can create
conflicts among the members of organisation which may even affect the management of
organisation.
No follow up – The functioning of leaders, managers and employees of the organisation may be
majorly affected with the enforcement of changes which may majorly influence the overall
working of the organisation.
Lack of knowledge skills of change management – The management of the company may be
majorly affected with the process of planning and communication. There is a significant role of
the management in order to enforce changes in the organisation (Machalaba, and Sleeman, 2022)
(Radwan, 2020). A deep knowledge and understanding of the leaders and managers helps in

determining the environment of company. The company majorly aims to develop the skills and
knowledge of employees by engaging them in various activities of the company.
M3 Use force field analysis to analyse the driving and resisting forces and show how they
influence decision-making.
In context to Sainsbury organisation, the force-field analysis is determined as very
important process for the implementation of change management. The process of change
management helps in recognising the good or bad change in such process (Tan, Gn, and Goh,
2019). The implementation of force field analysis can be concluded through following steps:
Determining the problem: The leaders of the organisation help in solving the issues and problems
that are currently existing in the organisation. The main function of the leaders is to separate the
issues from current circumstances in order to solve the problem in an appropriate manner.
Change of objectives: The leaders or managers of the company selects the final list in order to
evaluate the final result at such stage.
Identifying the driving forces: In context to Sainsbury organisation, it is very necessary to
identify the drivers of such change. There is a huge role of current trends of industry with
advanced technology, incentives and sudden rise in competition in order to evaluate the process
of change in the company.
Restraining forces: The key drivers and different forces helps in identifying the challenges in
order to accomplish the aim and objectives of the company. In context to Sainsbury organisation,
the challenges that might be faced by the company are in relation to the negative attitude of the
employees with the threat that might be faced by the organisation.
Evaluation of forces: There are different factors that might be faced by the leaders of the
organisation in order to analyse the performance of the employees. The leaders can rate the
performance of employees on the scale of 10 to 1. The are various forces through which process
of change can be analysed and evaluated (Teoli, Sanvictores, and An, 2019). The leaders can
identify such change by evaluating the enforcement of process of such change.

Creating an action plan: The driving force of restraining forces can easily be recognised by the
leaders and managers with the implementation of an effective action plan that may help in
analysing the forces that are preventing from execution of an appropriate plan. A correct action
plan may help in recognising the problems with more clarity in order to execute an appropriate
plan with the help of necessary resources.
P5 Apply different leadership approaches to dealing with change in the range of organisational
contexts.
In order to make the initiative for the successful change, effective leadership is one of the
main component which is important (Wolberger, and Goldman Schuyler, 2018). Leaders those
are more prone to implement the change does not only focus on the structural or operational side
of the change but also take into consideration the human component as well. The change is
explained to the employees clearly with the vision and also the strategy is made to achieve the
same and guidance is made in that direction. Also proper communication is made to the
employees to complete the task. Some applicable approaches that is addressed as a part of
change-
 Establishing the clear vision and communicating the same in clear and exiting terms- the
role of leadership in change management implies helping the people buy into
organisation vision because failing to do so will create a negative impact for the
company.
 Engagement and supporting of employees-when transformation projects are carried out,
leaders are required to identify the needs of people in the Sainsbury. The leaders engage
the employees in thee early stages of implementation as this offers the opportunities to
discuss the challenges and at the same time get the feedback from the employees as well.
 Tracking the progress and rewarding the success- the leaders at Sainsbury pay attention
to change process deeply and also analyse the barriers to the progress (Zhao, and Li,
2019). The leaders therefore are held accountable for the workings and non workings and

if any hindrance, take corrective actions against it. The recognition to be made publicly in
order to reinforce the behaviour that leader want to see in their employees. The progress
hence needs to be communicated at right time. In Sainsbury senior manager
communicate freely across the company regarding the transformation progress where the
response will be gained eight times more that a report to be successful transformation in
comparison to those who declared that communication will not happen.
 Leading through the example- the attitudes and behavior of employees comprised of the
major role of the leaders. The leaders at Sainsbury set the tone for how the initiative will
be shaped out and also the influence that employees will hold thee changes or will resist
it (Radwan, 2020). When senior leaders in the organization ask the employees to make
the changes in behavior, then the outcomes of transformation are more than 5 times
successful.
M4. Evaluate the extent to which leadership approaches can deliver organizational change
effectively applying appropriate models and framework.
Managing the change is one of the important and appropriate aspect of leadership and
managing the side of people cannot be overstated. So for being an effective change leader, it is
important to inform, engage,empower and inspire the employees to offer the strength, support
and direction (Tan, Gn, and Goh, 2019). The employees at Sainsbury through this guidance
will be able to adapt the change and direct their behavior to adopt innovative ways of working,
increasing the odds that change will lead to the success.

CONCLUSION
From the above report it is concluded that, the process of change is a very critical issue
that must be identified and analysed by the company in order to recognise the problems with
correct implementation of it. It is very necessary to cope up with changes that happen on timely
basis which in turn will help in maintaining the business environment. An organisation needs to
identify the positive and negative elements in order to generate more and more revenue for the
profit of company and such elements can be identified with the implementation of change. The
process of enforcement of change enables the company to improve on a positive side which
further can help in enhancing the performance of employees which in turn will help in growth
and development of the organisation. The implementation of change can help in recognising the
issues through different restricting and driving forces which in turn will also help in creating
barriers for prevention of any negative functioning that may occur in the company. Therefore,
the process of change is very necessary for timely growth and development of the company
which in turn will help in analysing the problems on timely basis.

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