Understanding and Leading Change in UK Retail Industry

Understanding and leading
change

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
Comparing the ways in which change impacts UK retailer’s strategy and operations................3
Conducting PEST analysis for each case study to identify key drivers:......................................3
LO2................................................................................................................................................11
The evaluation of the ways in which change will impact leadership, individuals and team
behaviour....................................................................................................................................11
LO3................................................................................................................................................14
Brief discussion of the force field theory...................................................................................14
Examples of real changes that are being introduced by the organisation..................................15
Explaining the resisting forces (barriers) and also the driving forces for the change and giving
numbers from 1-5 depending on the strengths of the forces......................................................15
Discussing ways by which the company can reduce the resisting forces/barriers.....................15
Illustrating that organization can achieve their objectives as the barriers are reduced and
change is implemented...............................................................................................................16
LO4................................................................................................................................................16
Discussing the intended change and drivers for the change and discussing how this change will
help the company.......................................................................................................................16
Performing the change model to understand how the change will implement and help the firm
....................................................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES................................................................................................................................1

INTRODUCTION
Understanding and leading change is the concept of updating the functioning of the
organizations according to the new demand, new technology and the new world. The world
today is completely different when compared to the times, earlier. So to update the functioning
has also become one important thing as it is the only thing through which, the organization can
be successful. With the evolution of time, every other thing that used to exit on the globe is
exiting in a much different manner now. But as the changes have taken place, it is very important
to first understand the change, what kind of changes should be made, where the changes should
be made and then the changes must be implemented in the organization, in order to get a good
result. To understand and to lead change it involves 6 steps namely: preparing the organization
towards the change, crafting a vision for the change, planning the steps to be taken,
implementing them, embed the changes in the culture of the organization and lastly reviewing
them. Here, in this report different organizations from the retail sector is taken for example:
Unilever, it is an international organization of London, Tesco, a multinational company of
England and Sainsbury, an organization of London. The following report will present changes
that have taken place in the political, social, economic and technological environment, the
implications of these changes on the organization's strategies and operations, the impact of these
factors on the teams and leaderships of the organizations, force field theory and the discussion of
how these changes can be implemented in the chosen organization.
LO1
Comparing the ways in which change impacts UK retailer’s strategy and operations
Organization selection: The total value of retail outlets in the UK in the year 2021 is £421
billion. Hence, the selected organizations are from retailer industry of UK such as Tesco Plc,
Sainsbury and Unilever. In order to identify the key drivers for change that is occurred within
different organization of retail industry, the PEST analysis is one of the best way (Neumann,
James and Vince, 2019).
Conducting PEST analysis for each case study to identify key drivers:
PEST analysis is a management model or framework which specify the political,
economic, social and technological external factors and their impact over the organization
performance. With the help of PEST analysis, the organizations able to analyse the factor which

are creating opportunities and possess threat for them. This also benefited the company to assess
those changes impact over business (Wolberger and Goldman Schuyler, 2018). If the change
impact is positive than it should be capitalize and if there is negative change than it would be
minimized via appropriate strategy adoption. The PEST analysis of Tesco Plc, Sainsbury and
Unilever Plc are as follows:
Factors Tesco Plc Sainsbury Unilever Plc
Political
factor
 The import duties
have increased
due to Brexit.
The impact of
which Tesco face
difficulty in
exporting goods
to another
country.
 The unstable
taxation has
further enhanced
the cost price as
well as selling
price of Tesco
products
(Wolberger and
Goldman
Schuyler, 2018).
 The Brexit has
created more
challenge for the
supermarket such
as Sainsbury to
import products
from foreign
market.
 During covid-19,
strict rules and
temporary
restriction has
poses treat for
Sainsbury sales &
profit.
 Because of
Brexit, the
different rules
and regulations
of all countries
are required to
be followed by
Unilever.
 The restriction
on import and
export is one of
the key
political factor
that affect the
organization
overall
performance.
Economical
factor
 The profitability
of Tesco Plc
during Covid-19
situation has
reduced by 5% as
compared to past
 The rise in the fuel
cost has poses treat
for the company in
term of increased
transportation cost.
 During Covid-19,
 Due to change
spending
pattern of
customer
during Covid-
19 towards low

years because of
poor spending
pattern of
customer.
 The increase
inflation rate
after pandemic
has work as an
opportunity for
Tesco because
the company is
focused on value
brand rather than
selling luxurious
items.
the sales revenue of
Sainsbury Plc has
reduced by 3.2% in
the year 2020 as
compared to
previous year
(Yrjölä and et.al.,
2019).
cost products is
an opportunity
for company.
 The cash flow
and profits of
Unilever are
negatively
impacted
because of the
various
Social factor  The continuous
change in the
trend and
preference of
customer has also
affected Tesco
Plc.
 Because of the
Covid-19 situation,
the eating habit of
the customer has
shift to healthy
foods. This is an
opportunity for
Sainsbury as the
company provide
healthy foods to its
customer.
 The fair trade
movement possess
threat for company.
 Many products
of Unilever is
based on
personal care
and well-being.
This is an
opportunity for
company.
Technological  The customer of  The technological  The online

factor UK has moved
towards the bulk
shopping which
is an opportunity
for Tesco to offer
discount on bulk
sales.
 Self-delivery
service and
automatic scan,
pack and pay
option.
innovation and
continuous increase
in demand of online
shopping is an
opportunity for
Sainsbury,
 Technological
advancement in
analytics is also an
opportunity for
Sainsbury
selling of new
and unique
products and its
marketing on
social media is
another factor
which has
affected Tesco
Plc. This is
basically
consider as
opportunity
(Yrjölä and
et.al., 2019).