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

Understanding and
leading change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Compare ways by which change impacts on the organisation's strategy and operations.......1
TASK 2............................................................................................................................................5
Discuss the influence of the drivers of change on organisational behaviour SWOT Analysis5
TASK 3............................................................................................................................................8
Discuss the influence of barriers of change on leadership and decision making...................8
Force field analysis of Tesco .................................................................................................9
TASK 4..........................................................................................................................................11
Discuss the leadership approaches to deal with change.......................................................11
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................14

INTRODUCTION
Changes are defined as the modifications or alterations in business culture, policies,
strategies and technologies for the purpose of improving organisational efficiency and
effectiveness. There are various types of changes are adopted by the business like structural
changes, remedial as well as transformational changes that lead business towards growth and
development (Lyman and et. al., 2020). Changes are implement in business to transform from
current status to future desirable situation. In this report chosen organisation is Tesco which is
British multinational retailing organisation founded in the year of 1919 by Jack Cohen.
Headquarter of organisation situated in Hertfordshire, England, UK. Respective organisation
provides diversify products such as clothing, financial services and other items. In this report
changes in business and impacts of internal as well as external factors in business are mentioned.
Apart from that barriers in changes that affect leader's decision-making are covered. Various
leadership approaches that initiate changes in business are discussed in this project report.
TASK 1
Compare ways by which change impacts on the organisation's strategy and operations
Organisational change is the terms that defines the alteration of existing business
operations due to some reasons or to enhance the current operation in order to stay competitive
and to sustain the competitive market. Organisation change not only bring impact to the
operations but to the strategies as well (Hosking and Anderson eds., 2018).
Currently due to the global pandemic COVID-19 there is huge change faced by the
organisations of retail industry as the pandemic has caused crisis to the profitability and impacted
supply change, labour etc. Tesco and Sainsbury are the top most organisations of the retail
industry and tends to create some changes which has impacted the operations and strategies of
the company. The below table will compare the changes among these two organisations along
with the impact of that on company's strategy and operations:
Organisation 1: Tesco
Company Changes-
PEST/SWOT
Drivers of
change
Impact on strategy Impact on
operations
Tesco By analysing the For this change in This has impacted This has changed
1

companies strength of
huge diversified
product portfolio and
social factors of macro
environment the
company has executed
the change in product
portfolio by adding the
new products that are
completely vegan and
organic. The company
has also added healthy,
nutrients and immunity
rich drinks and food
and at last company has
introduced the “ready
to eat” food packages
for the customers. This
change of product
portfolio is important to
meet the customer
trends, resolve their
issues and also to bring
innovation in the
product by expanding
the product portfolio.
Tesco there are
many drivers but
the key driver for
this change is the
increasing change
in customer
preferences and
changing
customer eating
habits. The
customers are
more leaning
towards healthy,
immunity rich,
vegan food after
the major impact
of Covid-19. Also
with growing
busy schedule and
long working
culture customers
more prefer ready
to eat food.
the low price
strategy of the
Tesco as the new
product of Tesco
are not only
expensive but
highly good in
quality (Bartsch,
and et. al., 2020).
The company
highly prefer low
price for their
products but as the
new products are
organic, ready to
eat and vegan
therefore the raw
materials supplied
by the suppliers
are also high in
cost and their
production cost is
also high.
the company's
current
operations of
unhealthy, fried
chips and other
tasty and less
healthy food
supply. This has
impacted the
regular supply
chain with
suppliers as for
this company has
to connect with
new suppliers
that sell
vegetarian vegan
raw materials.
By analysing
technological factors
and companies
opportunities, In Tesco
there is change of
Behind this
change of Tesco
the reason is
growing
technology and
This change has
impacted the
strategy of the
Tesco positively as
the technological
This has
impacted the all
the usual
operations of the
Tesco at the
2