Impact of Change on Organizational Strategy and Operations: A Case Study of TESCO

This report analyses the impact of change on organizational strategy and operations in the context of TESCO. It includes a PEST analysis of TESCO and Sainsbury to understand the impact of external drivers of change on the organizations. The report also evaluates the impact of change on leadership, team behavior, and individuals, and suggests ways to minimize negative impacts. The report concludes with an evaluation of appropriate models for processing change efficiently.

Unit 17 Understanding and
Leading Change

TABLE OF CONTENTS
Unit 17 Understanding and Leading Change..................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of the case studies.......................................................................................................3
Comparing the different organisational examples in which there has been impact on the
change of organization’s strategy and operations........................................................................4
Analysis for each organisation over the impact of the change and the effects it is creating upon
the organisation’s strategy and operations...................................................................................6
Evaluation of the ways in which change will have affected leadership, individuals and team
behaviour.....................................................................................................................................9
Evaluating how the impact of change can be minimised and the application of appropriate
models for processing change efficiently..................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
In organizations change has been determined as major element that keeps taking place.
Business environment is dynamic in nature and therefore, change in the environment keep taking
place on consistent basis. Thus, change in the organization lead to create the impact on the
behavioural pattern of the organization. It is important that, business must adopt change in
positive manner so, there can be positive impact made on the organization’s growth (Galli,
2018). The present report is based on analysing the drivers of impacts of change and the ways in
which it impacts the organization strategy in context of TESCO. The report will perform the
PEST analysis of TESCO and Sainsbury in order to know impact of the driver of change in each
organization and the comparison will be made. Furthermore, analysis of the change on the
operations of the organization will be evaluates. Moreover, ways in which change can lead to
impact the leadership, individuals and team behaviour will be highlighted in the report. Lastly,
the evaluation will be done in which appropriate models will be used for minimising the impact
of the changes.
MAIN BODY
Overview of the case studies
TESCO is one of the leading firm in retail sector which provides wide range of products
to the customers at affordable prices. Sainsbury is also a retail firm which is being established in
the UK. Both the firms TESCO and Sainsbury are competitor’s firms. However, it has been
found from various studies as the competition is increasing in retail firm and TESCO is not
effective in digital marketing which creating big challenge for the firm in terms of standing in
competitive scenario (Keiningham and et.al., 2020). This is creating impact on the strategy of the
firm. Sainsbury is not effective on social media platform. Both the firms are facing certain
negative situation. However, it depends on the potential level of the organization that, how they
tackle the change. External and internal factor also act as drivers of change in for the
organization which includes political, economic, social, legal and so on factors.
Comparing the different organisational examples in which there has been impact on the change
of organization’s strategy and operations
In order to evaluate the drivers of change in TESCO, PEST analysis has been done.
Along with this, comparison with the Sainsbury has also been done for knowing the difference
between the drivers of the change in both the organization. With the help of the PEST Analysis it

can be known what are the major changes that has been created in the both the organization and
in which manner the organization has adopted the changes.
TESCO’S PEST Analysis Sainsbury’s PEST Analysis
Political factors refer to those factors that are created due to the
change takes place in the policies of the government. TESCO
is a retailing firm and therefore, it is important to keep a focus
over the changing policies of the government. Policies
regarding the labelling and packaging has impacted the
TESCO'S operations as the company is following the
appropriate method in order to full-filling the requirements of
government.
Economic factors that is impacting TESCO is concerned with
the labour force. The labour strike leads to create the negative
impact on the organization and also, creates barrier in the
working procedure of TESCO. This has been determined as
that change which leads to impact the organization on negative
note as it stops the working procedure (Alqatawenah, 2018).
Social factor involves the change in the taste and preferences
of the customers. This is one of the biggest driver of change
which is impacting the TESCO. The organization has captured
the large number of customers in the market. Slight change in
the demand of the customers. Creates the impact on the
organization's operational ability. For example- Customers of
TESCO wants the product is less price. If TESCO does not
follow this then, there is threat that organization might have
lost the customers and if company follows this, then the
profitability of the company gets impacted.
Technological factor refers to those factors that creates impact
In context of political factor impacts on Sainsbury it
can be said that, organization is getting impacted in
regards to following the food and drug administration
requirement and on the basis of that decision has been
formed in the organization which impacts the
operations of the organization.
Ineffective management of demand supply ratio in the
economy creates the threat for organization. As when
the organization is not able to meet the demand of the
customers within their supply rate then, it directly
creates impact on the profitability ratio of the
company. Thus, this external factor has potential rate
in impacting the growth of the organization.
Sainsbury has fewer stores as compare to TESCO
which creates less urge in the customer to buy the
products of Sainsbury. Customer prefers supermarkets
in order to buy retail products. However, Sainsbury
has not adopted this change in proper manner which is
creating impact on the interaction of the organization
with their customers (Jayatilleke and Lai, 2018).
In technological context Sainsbury is using online

on the organization within making changes in technological
filed. The demand of online stores and online shopping by the
customers has created need for change. Thus, in this manner
technology factor has creates impact on TESCO. In order to
meet the demand of the customers it is highly important for the
firm that they must start selling their products on online
platform.
payment method through which customer can easily
scan the QR code and make the payment. However,
currently customers are demanding more for as they
prefer online shopping rather than offline shopping.
Thus, in this manner change in the technological
factor is impacting the organization and creating
impact on operations as well.
Drivers of change- Thus, it has been witnessed that, major drivers of change are the external
factors as the firm has control over the internal factors in the organization. Therefore, external
factors have the potential in terms of creating negative impact on the organization. while making
comparison among TESCO and Sainsbury it has been reviewed that, external factors are creating
the impact on the TESCO and Sainsbury and they are acting as a drivers of change for the
organization. Change in the taste and preferences of the customers and demand in regards to
increasing the online availability of the organization are one of the biggest drivers of change that
can lead to impact the operations and strategy of the organization. The major drivers of change
for the TESCO and Sainsbury are economic, social, political and technological factors.
Impact on strategy- The changes that are being occurring in the TESCO such as- technological
and social changes creating impact on the strategy of the firm. The organization needs to adopt
the effective strategy that can help the organization for preparing the strategy that helps TESCO
in order to full-fill the demand of the customers (Hechanova, Caringal-Go and Magsaysay,
2018). For example- customers of TESCO are demanding for online shopping. Thus,
organization needs to prepare digital strategy for creating the effective presence on the online
platform. Thus, in this manner drivers of change creates impact on the strategy of the
organization. Thus, it can be said that change in the organization leads to make the new strategy
that is helpful for the organization in order to achieve the change.
Impact on operations – Implementation of change due to external factors creates the impact om
the operations of the firm as well. It is important to adopt the change otherwise it can result in
impacting operations of the firm. For example- TESCO customers wants some specifications in
the products. Thus, the operational department of the company needs to put specific focus over
this demand of the customers and while making production, it is important to include all changes

in the products. Within this, it is highly mandatory that current demand of the customers will be
taken in consideration. Otherwise, the company faces the loss.
Analysis for each organisation over the impact of the change and the effects it is creating upon
the organisation’s strategy and operations.
Change Internal/
external
Impact on
leadership
behaviour
Impact on
team/
department
al
behaviour
Impact on
individual
behaviour
Measures to
minimize
negative
impacts
E-
commerc
e
This is an
internal change
where the
official website
of the business
has been
developed and
improved for
better response
of the
customers
(Onia, 2022).
This change
provides
better
opportunitie
s to the
leader for
having a
control over
the needs
and
preferences
of their
customers.
The
digitalizatio
n of business
processes
like
transaction,
customer
records and
other details
are critical
for
enhancing
the
effectiveness
of the
business.
The
individual
reaction of
employees
is positive
towards this
change as it
is highly
effective in
order to
increase the
overall
reach and
management
capabilities
of the
business in
the industry.
Professional
teams can be
assigned to
manage the e-
commerce
website of the
business which
can provide
further assistance
to the Tesco for
increasing their
effectiveness in
the business
environment.
Social
conscienc
e
This change is
due to the
carbon
footprint which
A positive
mindset of
leader
towards the
The team
has started
to realize
their
Stakeholders
of the
businesses
develop a
Tesco may adopt
different
practices like e-
vehicles, waste

has been
released by
Tesco in their
external
environment
which has a
negative
influence on
the brand
image of the
organization
among its
customers.
environment
has been
initiated
with the
help of this
change that
is crucial for
increasing
the overall
success of
the
organization
(Neumann,
James and
Vince,
2019).
responsibilit
y towards
the
environment
and made
appropriate
efforts in
order to
make
effective
changes to
their
business
processes.
better
understandin
g of their
duties
towards the
environment
and has a
positive
overview
regarding
this change
in the
business
environment
.
management
processes, etc. in
order to reduce
the risk of failure
of these activities
which can have a
positive
influence on the
brand image of
the business in
the industry.
KPIs The need of
key
performance
indicators
increased due
to the internal
issues and
challenges
which were
faced by the
business due to
poor
performances
of employees.
Leader finds
it necessary
to
implement
these
changes in
their
business
environment
which are
beneficial
for
increasing
productivity
of
Teams find
it convenient
to establish
KPIs which
identifies the
different
issues which
are faced by
the business
for
enhancing
the overall
decision
making
process of
Employees
are able to
resoles their
issues with
the help of
mitigation
strategies
which are
developed
with the
help of these
KPIs. It
helps them
to improve
their
Utilization of
KPIs must be
taken
appropriately and
the data should
be analysed with
the help of
experts which
can be beneficial
for reducing the
negative
influence of
these issues in
the industry.

employees. the business
in the
industry.
personal and
professional
development
.
Self-scan
checkouts
In order to
increase the
satisfaction of
the customers
in the external
environment
this change is
initiated by
Tesco which
provides better
convenience to
them for
purchasing
products from
the physical
stores.
This change
has a
positive
impact on
the
behaviour of
leader as
better
control of
the
transactions
can be held
with the
help of the
self-
checkout
machines.
This may
have a
negative
impact on
the team
members as
staff may
lose their
employment
due to the
self-check
out
machines.
Individual
acceptance
to this
advanced
technology
has both a
positive
influence on
the
behaviour of
management
and the
customers
and a
negative
impact on
the
satisfaction
levels of
employees
who lost
their jobs.
The self-scan
checkout
machines can be
a major benefit
for the business
to reduce the risk
of theft by their
staff or breach in
the critical
details of
customers due to
the automated
systems provided
by these
machines
(Nelson-Brantley
and et.al., 2018).
Digital
marketin
g
The reason for
this change is
for increasing
the overall
awareness
Developmen
ts in
marketing
has a
positive
Teams are
able to
achieve
better
response
Individuals
are satisfied
with this
change as
their efforts
Content
management is
an effective
measure which
can be effective

about the
products and
services which
are offered by
the business in
the external
environment of
the business.
impact on
the
leadership
of the
business as
it helps the
business to
increase
their reach
and connect
with more
customers.
from the
customers as
they can
interact with
the
customers
through
digital
platforms
and make
effective
changes as
per their
requirements
.
to persuade
the
consumers
and
increased
their interest
in the
business is
reduced
with the
help of
digital
marketing.
for Tesco to
increase the
quality of their
results and
minimize the
dissatisfaction of
their customers
due to poor
content provided
to them.
Evaluation of the ways in which change will have affected leadership, individuals and team
behaviour
Force-field theory
The force-field analysis is an effective tool which is used for analysing the
methodological approach which is used for handling the changes that are made in the business
environment of an organization. change management is the systematic approach to manage
change not only from organization angle but from individual level (Ibeawuchi and et.al., 2021).
There are various dimensions likely to be termed as adapting to change, effecting change, and
controlling change. It is essential for organization to adopt with change management process by
implementing various process and technologies to tackle changes in their business environment
and to generate profit by changing opportunities.
There have been several changes in the business environment of Tesco which have had a
significant influence on the overall performance of the business in the competitive business
environment. These issues have been crucial for the organization to grow and enhance their
success opportunities which are necessary for the overall growth and development of the

company in the business environment. These major changes are effective for Tesco to increase
their organizational capabilities to perform better in the dynamic market conditions and achieve
better productivity in the industry.
Pushing factor
 The global workforce which is available with Tesco is a major support to the business for
expanding into new markets and initiating changes which are effective for the growth and
development.
 The company has gained a major competitive advantage in different markets over the
world which has provided it with better opportunities in the industry to grow (Seipp Jr,
2019).
 Availability of few core competencies in the global market for Tesco is a major pushing
factor for the organization.
 A significant market share in the global business environment is a major plus for the
company to achieve a significant position in the business environment.
 A strong brand image among the customers due to massive reach is a positive factor for
the business for initiating major changes in their business environment.
Resisting factors
 Less interest of key stakeholders towards the changes which have been initiated by the
management result in restricting these changes in the business.
 Previous failures of the business to establish successful changes in their business strategy
is another resistance factor which has a negative impact on the decision making process
of Tesco.
 This restricts the business to undertake harsh decisions which can have a major influence
on the sustainability of the organization.

 Different policies and procedures of several countries where Tesco is operating is a major
factor which creates issues for the company to strengthen their position in the market by
making effective changes.
 Lack of knowledge about new tools and techniques in the global business environment
may have a negative impact on the ability of the business to make effective changes in
their practices and procedures.
 Less understanding and coordination between employees is another such factor which
creates issues for the business to establish effective changes and increase the overall
sustainability of their business in the industry.
Ways to reduce the resisting forces
Tesco can reduce the negative impact of these resisting factors with the help of Advanced
Technological tools like AI and big data which can be helpful for the business to analyse the
market conditions. these effective frameworks can enhance the decision making ability of the
business with the help of appropriate data analysis and interpretation. This can provide better
assistance to the organization for making effective changes in their business environment and
increasing their operational capabilities (Brown and Nwagbara, 2021). Several KPIs can be used
by the business to monitor and control the impact of their changes in the business environment.
these key performance indicators can be useful for establishing effective measures for the
identification of issues and challenges which are faced by the business regularly. with the help of
this knowledge the organization will be able to developed mitigation strategies for this aspect.
Ways to achieve objectives
Tesco can achieve their objective with the help of effective strategies which can be
beneficial for the business to stand arise their business processes and increase their overall
operational capability. this will be helpful for the business to enhance the overall productivity of
their company to experience better results in the business environment. Effective communication
can be initiated buy Tesco in their business environment which can provide better path for
coordination to their employees. with the help of these practices the organization can in hence
the satisfaction levels of their staff members and increased their dedication towards the

organizational aims and objectives. suitable feedback of the employees must be taken by the
organization for reducing the conflicts which may take place between these employees and the
management.
Evaluating how the impact of change can be minimised and the application of appropriate
models for processing change efficiently.
The major change in the organization is concerned with the process of digital marketing
and increasing the awareness on the social platform. The impact of the change in TESCO can be
minimised within focusing over the factor that are contributing in change and the ways in which
change can be adopted. The best way to minimise the change is affiliated within adopting it and
therefore, it is important to assure a keen focus over the changes.
The change can be implemented in the organization with the help of Lewin’s model. This
is the simple framework which humanize the change management process and helps in adopting
the change (Tang, 2019). Thus, with the help of this model it becomes easy to adopt the change
in the organization. This model is concerned with the three stages that helps in adopting the
change in effective manner. The three steps are- Unfreezing, changing and refreezing. This
model states that change is needed in order to assure consistent growth in the organization.
Therefore, changes must be adopted in the organization instead of ignoring (Rosdiana and
Aslami, 2022). Within adopting the change success can be experienced which enable TESCO to
achieve higher rate of success. Here are the ways in which change related to implementing
digital marketing and increasing social media presence can be implemented in TESCO with the
help
Unfreeze Change Refreeze
In this stage the change needs
to be communicate with the
employees in the organization.
Meetings needs to be
conducted so, employee
become aware about the
change that is impacting the
company. Afterwards
After making discussion with
the employees. In this step
change is needed to be
implemented. TESCO needs
to establish digital strategy in
this step. So, the change can
be adopted and implemented.
Along with this, roles and
In this step the task in regards
to adopting digital marketing
strategy needs to be perform
along with making the proper
communication with the
employees.
The reports from the
marketing manager needs to

suggestions need to take from
the employees and on the
basis of that rewards must be
given to employees.
responsibilities to the
employees must be allocated
so, in proper manner strategy
cam be implemented
(Rosenbaum, More and
Steane, 2018).
be taken in regards to knowing
about the success of the
change. Also, effective
interaction with the customers
should be implemented on the
social media platform. So, it
becomes easy to create
effective interaction with the
customers.
Thus, Lewin’s model of change helps in adopting the change in effective manner. Also, it
enables TESCO to adopt the change in best manner that supports the growth and success of the
organization. Hence, it can be depicted that, adopting and implementing the change is important
for consistent growth of the firm.
CONCLUSION
From the above report it has been concluded that, change is an essential part in the
organization. It is highly important that organization must adopt the change so, they can
effectively prepare themselves to face the threats. The report has also concluded that, change in
the organization impacts the operations and strategy of the organization and therefore, pre-
planning in regards to adopting the changes should be done. The driver of change are the
external and internal factors of the organization and therefore, it is important to create an
effective strategy so, changes can be adopted in easy manner. Along with this, the report has
discussed the ways in which change can lead to impact the leadership pattern in the organization.
Therefore, leaders in the organization has to assure a keen focus over changes taking place so,
they can take decision on the basis of that. Lastly, the report has highlighted the ways in which
negative impact of the change can be minimised in the organization.

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