Importance of Change Management in Strategic Management

This report explores the importance of change management in strategic management, focusing on the complexity of the transformation process, its costs, risks, and sustainability. It discusses the process used by organizations to determine their strategy and evaluates critical models and tools. The report includes a case study on Tesco, a British international grocery company.

Strategic Management

Table of Contents
INRODUCTION........................................................................................................................3
Definition of strategic management........................................................................................3
A critical assessment of the process used by organisations to determine their strategy.........4
An evaluation of the critical models and tools used by organisations to determine their
strategy....................................................................................................................................5
An application of these tools to a real organisation of your choice........................................6
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability......................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INRODUCTION
Strategic management is considered as a suitable plan that assists in communicating
various kinds of factors such as goal, energy as well as many more that help in accomplishing
goal & objective in stipulated period of time. In this report, there is an explanation regarding
various sectors that help in accepting trend in an appropriate manner. This report is carried
upon Tesco Company. It is a British international grocery which provides different kind of
products and services to its user for satisfying them. This company was founded by Jack
Cohen in the year of 1919. And they also operate their business in different countries such as
Malaysia, Thailand, India and many more. This report will provide a description regarding
strategic management and its process that help company in considering strategy. In assistance
of this model and tools that company adopted by considering strategy with its application.
Furthermore, the significance of managing change that is completely depends upon difficulty
of transformation process, risk, cost and sustainability (Barros, Hernangómez and Martin-
Cruz, 2016).
MAIN BODY
Definition of strategic management
Strategic management is considered as a suitable plan that assists in communicating
various kinds of factors such as goal, energy as well as many more that help in accomplishing
goal & objective in stipulated period of time. For success or growth of business organisation,
it is necessary to bring changes within organisation and adopt strategy accordingly. In
addition to this, there are different objective of strategic management that is going to be
mentioned below:
 The first objective of strategic administration is to achieve competitive advantage
over rivalries at marketplace.
 They also provide guidance to business organisation how to survive or maintain their
activities and function of organisation during particular phase of time period.
Herein, the changes or modification is necessary within micro environment of
organisation. The management team of company focuses on bringing changes in policy of
business organisation during particular phase of time period. In addition to this, the
modification or alteration in external environmental factor involves government, rules which
imposes direct impact on organisation. In assistance of this, the execution of strategic

administration has significance that performs different work within business organisation that
is going to be mentioned below:
 Strategic administration offer guidance to organisation for performing their business
in particular direction. However, they also clarify goal and objective in order to
achieve it in timely manner. They also provide guidance regarding achieving vision of
company in stipulated period of time.
 The strategic management also help in becoming proactive rather than reactive and
also assists in assessing competitor’s action. In addition to this, strategic
administration helps in taking necessary steps for achieving competitive advantage
over rivalries at Marketplace. Moreover, strategic administration acts as foundation of
all decisions which is related to business organisation during particular phase of time
period.
A critical assessment of the process used by organisations to determine their strategy
Strategic management is determined as a planning, monitoring or controlling the
different things that is important for organisation in order to achieve goal in timely manner.
In other words, it is signifies that it is philosophical approach that help in increasing profit
margin in future period of time. Furthermore, the process of strategic administration is
implemented into organisation in an appropriate manner in order to understand regarding
strategy (Bryce, 2017). The procedure of description that are adopted by company which is
going to be mentioned below:
Clarified vision this is the basic level of a process of strategic administration is to
clarify vision of organisation. This step help in considering three facts in starting their main
focus is on short term and long term goal of organisation. In addition to this, the process for
achieving goal will consider in order to achieve it in timely manner. Apart from this, the
process will also customise for subordinate and task or work allotted to all individual person
in order to achieve favourable outcome in future period of time. It is necessary to have a
practical objective in order to meet the vision of organisation. Therefore, it is necessary to
have a clarify vision in order to achieve it in timely manner.
Gather and analyse information within process of strategic administration, the main
level is gathering information that is useful in conducting different operations of company in
an appropriate manner. And, in this level the information is gathered for achieving vision of
organisation. Furthermore, they emphasised on understanding the requirement of organisation
and provide strategic direction that assists company in its development as well as

improvement. In assistance of this, it is important to consider both external & internal
problem that imposes direct impact on objective of organisation.
Formulate strategies this is determined as a process where organisation focuses on
making appropriate strategy for achieving objective of company. After executing procedure
of scanning environment, the firm focuses on implementing appropriate strategy that is linked
to organisation during particular phase of time period.
Implementation of strategy herein, the organisation adopted to handle its resources
and execute strategy of organisation. This level involves administration of human resource
that helps in taking appropriate decisions in future period of time. All level are interconnected
to enhance the performance level of organisation and handling system as per requirement in
order to achieve goal in future period of time.
Evaluation and control it is determined as a last level in strategic administration
process that is directly connected to performance appraisal by assessing micro as well as
macro environmental elements. This is connected to bringing gap among policy executed and
taking appropriate decisions to handle performance for achieving goal as well as objective of
company and their innovative strategy (Hitt,Ireland and Hoskisson, 2016).
Therefore, it has been analysed that from above mentioned three levels which must be
follow by company in an appropriate manner in order to conduct strategy or plan in an
improved way. Thereafter, it is necessary to implement different things in an appropriate
manner that aids assistance to its management team to achieve goal in timely manner.
An evaluation of the critical models and tools used by organisations to determine their
strategy
There are a variety of tools and techniques that can be adopted by company for
considering strategic performance. These techniques are depending upon goal as well as
objective of company in which organisations can adapt different types of tools such as a
SWOT analysis, PESTEL analysis, Porter five forces model and many more. In present
report, it has been analysed that is SWOT analysis is determined as a superior method that
can be adopted by company. This analysis signifies four levels such strengths, opportunities,
threats & weaknesses of organisation. Herein, the focus is on integration that is related to
company and it’s functioning as well as decision-making. SWOT analysis provides allowance
to organisation to execute planning in an appropriate manner by considering innovative
opportunity and increasing its present functions by adopting strength & weakness in an
appropriate manner.

An application of these tools to a real organisation of your choice
SWOT analysis is defined as a strategic framework that is adopted by company to
assess internal factor that impact on performance level of organisation. It include assessing
different factors in context of strengths, threats, opportunities and weakness to company that
help in taking appropriate decisions for executing various strategy within business
organisation. Tesco is a British international company who provide different kind of goods
and services in UK. There is above 50 countries in which the Tesco operate their organisation
in present time. Therefore, the SWOT analysis related to Tesco is going to be mentioned
below:
Strength of Tesco
Largest grocery retailer in UK Tesco is determined as a retail giant who provides
product as well as services around the world. It is determined as a biggest retailer who covers
about 28% of share of market as compared to its competitive firm. It provide competitive
edge to company and it is determined as a strength of organisation (Koseoglu, 2016).
Growing number of stores Furthermore, the strength of company is improving its
outlets and enhancing number of outlets and they operate their business in more than 7000
outlets of grocery at international level in present time. It is determined as strength of
company because it helps in bringing changes at market place which will provide profit to
organisation in handling different system in an appropriate manner.
Leading market share Tesco is the biggest market of UK, they cover about 28% of
market share so it is useful for organisation or company in attracting large number of user by
adopting these tactics in better way.
Large employer TESCO is determined as a biggest employer in UK in which they
provide above 743000 employments to various individual people. It is helpful for company to
offer opportunity to individual person by eliminating the level of unemployment. It also
assists in handling talent within an organisation and provides contribution in respect of
society for adopting resources. The work force of organisation focuses on implementing its
functions or operation and strategy in an appropriate manner.
Weakness of TESCO
Decrease in operating profit due to decrease in operating profit from the year of
2019 it is determined is a weakness for Tesco. It decreases revenue as well as profitability
level of company during particular phase of time period. Therefore, there is around 9%
decline in the profit in year of 2017.

Improper training of staff due to inappropriate training to subordinate of company is
determined as a weakness for organisation. The management team of Tesco does not provide
appropriate training to its company then they face difficulty in different functions of
organisation. Therefore, it is not easy for company to tackle or handle competition level and
it increases turnover rate of employees during particular phase of time period (Michael,
Storey and Thomas, 2017).
Unethical practices Furthermore, the weaknesses of an organisation in market is
organisation do not perform their functions in an appropriate manner. It has been analysed
that frauds as well as accounting scandal in the year of 2017 which is a determined as a false
representation of account. This reduces or ruins the brand image as well as reputation of
company in front of customer at marketplace.
Opportunity of Tesco
Joint venture joint venture is considered as a primer opportunity for company that is
connected to merger & joint venture with other company in current market. This market
operates their business in Asian country that helps in increasing their profit margin of
organisation in future period of time.
Online shopping in present environment of organisation, the trend related to online
shopping which is determined as an opportunity. Herein, the Tesco can adopt online channel
for marketing its product as well as services.
Emerging market the organisation operate their outlets in various developing
countries that help in boosting emerging market is determined as a positive impact for Tesco
during particular phase of time period.
Threat of Tesco
Increase competition due to increase in competition level there is ample of
organisations that provide similar product to its customers like Wal-Mart, ALDI and so on
that is considered as a threat for company.
Economic crisis and credit crunches is determined is the other threat for Tesco it
imposes direct impact on efficiency as well as performance of Tesco during particular phase
of time period (Moutinho and Vargas-Sanchez, 2018).
Hence, SWOT analysis is adopted by company to assess internal factor that impact on
performance level of organisation. It include assessing different factors in context of
strengths, threats, opportunities and weakness to company that help in taking appropriate
decisions for executing various strategy within business organisation. Therefore, the chosen
organisation focuses on grabbing opportunity and minimise threat during particular phase of

time period. It helps in increasing productivity level in future period of time which will be
beneficial for organisation in taking decision.
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability
The environment of business is dynamic and it is necessary for organisation to
consider environment of company. It is also essential for a company to execute changes in an
effective way in order to achieve goal and bringing sustainability within business
organisation (Peppard and Ward, 2016). There are various types of alteration and changes
that is considered by business organisation and can be executed for managing and handling
different work related to modification. This are directly linked to organisation that help in
achieving objectives and handling complexity within process of transformation risk,
sustainability as well as cost.
In reference of chosen company, they can bring changes for that they adopt Louis
change administration that is suitable for process of change administration and that is
connected to functioning or operation of company. This model has three steps that is
determined as unfreezing, change and refreezing. Under unfreezing, it is determined as a first
level of change model. The management team of organisation focuses on removing given
strategy that is followed by organisation in connection of execution of innovative strategy.
Herein, the manager focuses on convincing the individual person of organisation needed for
innovative strategy and why should alteration o changes in existing one. Furthermore, it is the
second level that is related to changes. Herein, the management team focuses on
implementing and executing changes in various department and they focus on bring
innovative strategy during particular phase of time period. It is an appropriate strategy in
which the management team focuses on convincing individual person by eliminating
resistance that is occur due to change. The manager can adopt different motivational tool and
other kind of system that is useful in eliminating resistance and executing changes in proper
way. After this process, the management team use refreezing level where the focus is on
normalise a whole situation. In this level, the manager focuses on convincing and executes
their work or task in normal way for handling changes. This is useful for organisation in
achieving goals as well as objective and handling changes by transforming, cost, process, risk
as well as sustainability (Okumus, Altinay and Koseoglu, 2019).

CONCLUSION
From the given report, it has been assessed that strategic management is considered as
a suitable plan that assists in communicating various kinds of factors such as goal, energy as
well as many more that help in accomplishing goal & objective in stipulated period of time.
In this report, there is an explanation regarding various sectors that help in accepting trend in
an appropriate manner. This report will provide a description regarding strategic management
and its process that help company in considering strategy. In assistance of this model and
tools that company adopted by considering strategy with its application. Furthermore, the
significance of managing change that is completely depends upon difficulty of transformation
process, risk, cost and sustainability.

REFERENCES
Books and Journals
Barros, I., Hernangómez, J. and Martin-Cruz, N., 2016. A theoretical model of strategic
management of family firms. A dynamic capabilities approach. Journal of Family Business
Strategy, 7(3), pp.149-159.
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter
de Gruyter GmbH & Co KG.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Koseoglu, M.A., 2016. Mapping the institutional collaboration network of strategic
management research: 1980–2014. Scientometrics, 109(1), pp.203-226.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Okumus, F., Altinay, L and Koseoglu, M.A., 2019. Strategic management for hospitality and
tourism. Routledge.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.