Understanding and Leading Change in Tesco: Impact on Business Operations and Strategy

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..........................................................................................................................................14
Influence of obstacles to change on leadership and decision making.......................................14
TASK 4 .........................................................................................................................................17
Apply a range of leadership approaches to a change initiative.................................................17
CONCLUSION .............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Changes are defined as the actions and modification activities that are taken by the
organisation for the purpose of alter organisational major component such as business culture,
technologies, strategies, policies, process as well as other factors that are need improvement or
change for running business properly. Organisation implement various type of changes in
business such as strategic transformational change, structural changes, remedial changes and
people-centric changes (Butcher, and Moran, 2018). Business creates various changes to make
transactions from its current status to future desired status. Changes are determined as the
procedure that impacts business in positive as well as negative manner. Organisation analysis
requirements of changes in business to run all operations in proper manner and implement them
in order to attain desired goals and objectives in best possible manner. There are various
challenges are faced by the organisation is the process of executing changes in business
operations.
In this report the chosen organisation is Tesco which is British multinational retailing
organisation founded in the year of 1919 by Jack Cohen. Headquarter of organisation is situated
in London, England, UK. Respective organisation offers range of products to its customers such
as clothing. Financial services and various others through opening stores in various countries. In
this report various topics such as impacts of changes on business strategies and operations and
influence of internal and external factors on organisational behaviour are mentioned.
Furthermore, barriers in changes that impacts leaders decision-making process as well as
leadership approaches that help business to initiate changes are covered in this project report.
TASK 1
Comparison of outcome of change on business operations and business strategy
Organizational change affects business strategy and business operations as
implementation of change leads to business firms altering their business strategy and business
operations for smooth enforcement of change (Carter and Walker 2018). Change creates a shift
in organizational culture and character which affects daily business operations and strategy of the
company. The retail sector is facing ongoing crisis because of COVID-19 pandemic affecting
retail supply chain, workforce and profitability. Business firms in the UK retail sector have
responded with organizational changes to emerge from the COVID-19 crisis as a successful

company. Tesco and M&S have implemented changes recently which have impacted business
operations and business strategy of the enterprises. The comparison between changes enforced at
Tesco and M&S are provided below:
Company Changes-
PEST/SWOT
Drivers of change Impact on
strategy
Impact of
operations
Tesco Tesco has
implemented
technological
change to increase
online shopping
and ensure
digitization of the
company. Tesco
has created own
brand website in
order to attract
online shoppers
and gain
leadership in
online retail
sector. This
technological
change has been
the main reason
for high
profitability of the
company during
Covid-19
pandemic.
The primary driver of
change in this business
context are external
factor of rising
competition from e-
commerce companies
and rise in online
shopping in recent
years. Tesco realized
that building strong
online presence and
successful own brand
online shopping portal
will help the company
face competition from
domestic and
international digital
retail firms such as
Amazon and Ocado.
Apart from this digital
economy and retail
shopping has been
increasing in recent
years. This is another
The technological
change of
introduction of
digital technology
has affected
business strategy
of Tesco. The
business strategy
is changed as
safety and
satisfaction of
online consumers
is prioritized to
enhance digital
change. The
change in
business strategy
of the company is
conducted in
order to gain
desired outcome
from
technological
change. Business
The
business
operations at
Tesco are
also affected
by
digitization.
Digital
technology
adoption is
beneficial
for business
firms as it
improves
efficiency
and provides
consumers
seamless
experience
(Pantano
and
Vannucci,
2019).
Business

Digitization
focus on offering
safe delivery of
online orders will
help the company
reach large
number of
consumers.
Digital
development is
essential for retail
firms as it helps
prepare for future
with rapid
digitization of
various business
processes (Van
Ossel, 2019).
external factor which
lead to technological
change at Tesco. In
addition to this Covid-
19 trade restrictions
have also increased
dependence of retail
firms on online
consumers to attain
profitability. Digital
development of Tesco
has helped the
company survive
pandemic with soaring
profits. This depicts
the value of
technological change
at Tesco and how
Covid-19 assisted in
rapid digitization and
technological change
at Tesco.
strategy which
aims to increase
online sales will
assists in smooth
implementation
of digital
technology.
Tesco has been
able to increase
online sale after
pandemic because
of changes in
business strategy
of the company to
ensure smooth
digitization and
provide online
consumers
maximum
satisfaction.
operations at
Tesco are
improved
with the
help of
digital
technology
and the firm
is able to
offer better
services to
online
consumers.
Another
technological
change
implemented by
Tesco is
enforcement of
various
technologies to
increase safety of
Covid-19 pandemic
and trade restriction
imposed by the British
government in light of
rapid spread of the
virus are the main
external factors
driving this
technological change
The business
strategy of the
company has
shifted towards
maximizing
safety at physical
stores of the
company. The
primary change in
Operations
at Tesco re
changed as
the
employees
have to
follow
various
measures in

consumers and
employees during
the pandemic. The
company one-in-
one-out system to
restrict number of
consumers present
in physical outlets
of the company.
Apart from this
Tesco has
constructed
checkout stations
with protective
screens screens to
improve
consumer safety.
Tesco has
provided their
drivers
sanitization and
safety equipment
such as protective
gloves and face
covering to ensure
safe online
delivery.
at Tesco. The
company has
implemented new
technology and
systems and physical
stores in order to
improve employee and
consumer safety.
business strategy
is to introduce
new measures
and technology
which can
increase
protection form
Covid-19
pandemic.
order to
decrease
spread of
Covid-19.
Employees
have to
ensure that
consumers
adhere to
one-in-one-
out-system
and utilize
protective
screening at
check-out
stations
effectively.
M&S The company has
implemented an
operational
change in order to
The primary driver of
operational change at
M&S is the disruption
in retail clothing
These lay-offs
impact business
strategy of M&S
as the firm has to
The
business
operations at
M&S will