Understanding and Leading Change in Sainsbury and Tesco

This report compares the internal and external changes in Sainsbury and Tesco, analyzing their impact on leadership, team, and individual behavior. It discusses barriers to change and various leadership approaches. Strategies to minimize the adverse impact of change on organizational behavior are recommended.

Understanding and
leading change

Table of Contents
INTRODUCTION ..........................................................................................................................3
SECTION ONE ..............................................................................................................................3
Comparison based on strategy and operations ...........................................................................3
COMPANY ONE ( Sainsbury)........................................................................................................5
PEST Analysis ...........................................................................................................................5
SWOT Analysis .........................................................................................................................6
Recommendation.........................................................................................................................8
COMPANY TWO (Tesco ).............................................................................................................8
PEST Analysis ...........................................................................................................................8
SWOT Analysis .........................................................................................................................9
Recommendation.......................................................................................................................10
Minimise negative impacts of change on organisational behaviour.........................................10
SECTION TWO ............................................................................................................................11
Introduction...............................................................................................................................11
Various barriers of change that affect leadership decision making of Sainsbury ...................11
Various leadership approaches to dealing with changes in Sainsbury......................................13
Evaluation of various leadership approaches ...........................................................................15
CONCLUSION AND RECOMMENDATION.............................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Organization refers as a group of individuals who perform their task together in a
company, association, corporations and union. Organization also consider as an system ,
structure and arrangements which help to maintain each and every activities. Every organization
need a change at a point so which help to boost the organizational strategies and also enhance the
market value of the organization. Organizational change explain as a course of action in which
companies alters a massive component of an organization like culture, technologies,
infrastructure and also consider the internal process of the organization. For this project, Two
organization is chosen Sainsbury and Tesco. These companies considered a very large
organizations of United Kingdom which mainly deal with the retail industry. Both companies are
providing groceries and household products. This report determine the comparative analysis of
the two companies. This report discuss about the internal and external change which affect the
individual , team and leadership and also analyse the how to minimise the adverse impact of
change on the organizational behaviour. This report discuss about the various barriers of change
and various leadership approaches.
SECTION ONE
Comparison based on strategy and operations
Change is really necessary for every organization which play a prominent part in
organizational growth. Change is appropriate for the enhancement of the company and
employees development. In organizational context, there are many types of changes done which
is related to the organizational culture, strategies, technologies, policies and structure, these
changes helps to achieve the organizational objectives in a particular time (Baumeister and
Kilian, 2016). With the help of change every organization can easily evolve their working
culture and environment so that organization can increase their productivity and efficiency.
Through health change, organization can take huge competitive advantages. In this report, the
comparison of Sainsbury and Tesco experience these kind of change which discussed below-
Change Sainsbury Tesco
On the basis of Structure Sainsbury is big retailer Tesco is a large multinational

company which operate
business all over the world.
Sainsbury functioning as a
decentralised way. Sainsbury
consider hierarchical structure
because company need to
operate all level of employees in
a efficient way. As soon as
sainsbury convert into a huge
organization sainsbury change
company strategies so that
company can operate their
business in effective way and
complete all operations.
Sainsbury make effective
strategy for their structure so
that company deal with large
number of employees at a single
time. When Sainsbury merge
with ASDA then company
changed their organizational
structure (Cadmus, et. al., 2018).
retailing company which provide
best products and services to their
customers. Tesco is follow
hierarchical structure because it
help to maintain each and very
level of the company so that
Tesco prepare an effective
strategy which help company
perform their task in a discipline
and specific manner. Tesco also
follow job and functional
structure which give positive
impact on the policies and
strategies of the company
directly. Tesco organizational
structure categorized each and
every activities systematically so
that company can perform all the
day to day operations that
become comfortable for the
superiors and supervisors of the
company.
On the basis of
Technology
Sainsbury follow a strong
strategy which use many
technologies such as Trailing
new scan, Pay and Go
technologies which help the
customers in payment process so
that company easily receive
payment by the customers which
is really suitable and
Tesco is a big retailer
organisation which operate their
business with the use of advanced
technologies. Before decades
company operate business
through stores, mall,
supermarkets and outlets but now
situations are fully changed.
Tesco build effective strategy

comfortable for the company
and customers both. Sainsbury
mainly focus on their
operational works so through
technology like start using a
Smart Shop apps which help in
shopping . Company also
conduct some trial sessions on
Calpham customers through
Scan , Pay and Go. So Sainsbury
do time to time changes in their
technologies which help in the
growth of the country.
which help in all the
technological work and other
operations. Company network is
wider so company launched own
mobile app which help in selling
the products with the help of
internet connectivity and
technologies and also it become
continent fro the customers to do
shopping on company app receive
orders through online and home
delivery.
Changes in structure and technology help both companies Sainsbury and Tesco to
improve their organizational growth and these changes leads massive change in the market value
of the company. Both companies modify some change in their structure time to time so that
company can easily maintain internal and external organizational structure. Both companies do
proper changes in technologies and follow latest trends and technologies which help to keep
update and simplify the company work. These changes are useful to enhance the productivity
and effectiveness of the organization (De Matthews, Serafini and Watson, 2020).
COMPANY ONE ( Sainsbury)
Every organization need all type of changes so that organization easily evolve their
market share and sell of the company. Every organization require changes in both way include
internally and externally. Internal and external changes give impact on the leadership, individual
and team behaviour of the organization. The description of these internal and external drivers
which affect leadership , team and individual of the Sainsbury company are given below-
PEST Analysis
With the help of PEST analysis, company evaluate the impact of external drives on the
leadership. Team and individual behaviour which are discussed below-

 Political Factors – Political Factors refers the all taxes, trade regulations, foreign trade
rules and regular and political stability. These factors affect the company in direct form
so that Sainsbury mainly focus in the political factors. Political factors influence the
behaviour of the company team, leadership and individual. Sainsbury operating lots of
countries so sometimes company disturbed because of political factors which give
adverse impact on the company leadership, team and individual behaviour (Hill, 2020)
( Hurst and Hurst, 2016). Economical Factors -Economical factors considers changes in country growth, inflection
and recession. Sainsbury company affected by the economical factors due to constant
changes in economy which affect the country growth. Changes in pricing policies and
pricing regulation affect the company each and every individual , leadership and team
behaviour. Social factors – In this factor, culture, values, religion, education level, behaviour of the
people and attitude toward the company, population are playing a prominent role.
Sainsbury manage very effectively all the social factors and also consider the customers
need and requirements. Sainsbury focus on the customers satisfaction so that it give
positive impact on the company leadership, team and employees and their behaviour also
influenced .
 Technological Factors – In technological factors, technological advancement, changes in
technologies, internet connectivity and all the latest technologies and technological error
consider. Sainsbury running business very effectively with the help of technology. This is
comes under most influential external driver which give positive impact on the
organizational development and affect the behaviour of the leadership of company and
individual and team behaviour (Kivunja and Kuyini, 2017).
 Legal Factors – These factors affect Sainsbury in a direct way so company need to pay
more attention of employee’s protection laws, consumer protection law and security law
and immigration law. All these law can protect the Sainsbury and save from the direct
impact of these factors.
 Environmental Factors – These factors leads the healthy environmental activities which
are performed by the organisation. In this time government and population of the country
both want an eco- friendly environment expect from the organisation. Sainsbury give

their contribution on UN Sustainability goals which give positive impact on the
organisation reputation.
SWOT Analysis
Strengths Weaknesses
 It is a big supermarket business so that
company which maintained a high
experienced and talented leadership
team.
 Sainsbury has a massive number of
employees 1500000 that is also
considered big strength of the
company.
 Sainsbury adopt excellent and high
quality of advertising and branding of
their products across the country.
 Company has a massive number of
stores 600 and supermarkets 800 which
deals with 30000 lines of stocks.
 Company sponsored many events like
Paralympics , which give good
recognition in the country (Leavy,
2019).
 Rise the price of the food that affect the
sells of the company
 Stiff Competition in all the segments
and areas of the retail industry.
 Company switched their brand with
other company that affect the goodwill
of the company.
Opportunities Threats
 Company continuously grow their
market so it give positive impact on
company sells. Sainsbury also grow
their market in villages and rural areas.
 Sainsbury emerging other companies
through partnership and joint ventures
and expand their company in new
 High level of competition in retail
industry.
 Company face threat on environmental
factors which affects the sales of
company.

market.
 Company has a self checkout
equipments and machine which help
company to open stores all the time (24
hours) which help in increase sales of
the company.
Recommendation
According to the PEST analysis and SWOT analysis of the Sainsbury it is analysed that
company need to economical and social factors of the company so that company can easily
tackle of all the uncontrollable factors of the business. There are many strengths of the company
which help to increase the demand of the company at the marketplace but company need to pay
more attention to reduce their weakness like pricing policies and competition factors so that
company can easily maintain all the business operation and gain many opportunities.
COMPANY TWO (Tesco )
INTRODUCTION
With the help of PEST analysis, company evaluate the impact of external drives on the
leadership. Team and individual behaviour which are discussed below-
PEST Analysis Political Factors – These factors includes taxes, trade, political stability and trade
regulations which affect the company external environment. Tesco operate their business
in many foreign countries so its mandatory to follow al the regulations that make sure
compliance and security and safety of company products. The main elements is political
stability of the country because more political stability leads to provide better
opportunities for the business. The changes in policies and tax affect the supply and
demand of the company (Lundmark, et. al., 2017). Economical Factors – Tesco is a large company so it affect the economy of the country.
Tesco growth determine the country growth so its necessary for the company to keep eye
of every moments and changes of economic. There are many factors which affect the

company such as distribution, margin, revenue, pricing policies and sales. Company need
to well aware of all the taxation policies because any changes and modification in
policies leads a major in the daily operation of the company. Social factors – In this time the social scenario is totally changed because customers
mainly prefer to buy everything in a one go which is totally based on current trends.
Tesco company considered some changes as per the customers choice. Company
switched major food to from food cum non food. All the products which Tesco is offering
is totally based on social influence and product preference depend upon different cultures
so that company can satisfy their customers.
 Technological Factors – This generation is totally depend upon technologies which
make people life easy. With the help of advanced technologies, Tesco constantly expand
their business all around the world and make more revenue. Company use social media
and other online platforms which help in keep update and give notification about their
products and services to the people of all the countries (McCormick, 2017).
 Legal Factors –These factors give direct impact on the Tesco Company because changes
in Government policies give adverse impact on the organisation operations because
Tesco is a multinational organisation so company need to follow local law and
international law both For instance, food retailing commissions consider some certain
rules and regulations that necessary to follow for all the retailer organisation. Environmental Factors – Tesco Company takes different initiative to enhance the
environment of the country. Tesco launched Phase 2 plan these are Remove, Reduce,
Reuse & Recycle. With the help of this plan company easily reduce and remove the
plastic products which are non- recyclable. Environmental factors give positive impact on
the Tesco company growth.
SWOT Analysis
Strengths Weaknesses
 Tesco company won many awards for
their retails , customer’s services and
the all shopping experience of the
customers which is a main strengths of
 Company subsidiaries are not dealing
very well and they are very vulnerable
for the external factors.
 Tesco experience some in of

the company.
 Tesco has a significant and sufficient
cash reserves and also wide ranges of
property which give strong financial
support.
 Tesco consider the customers
requirements and provide more and
specific personalised facilities and
services experiences.
 Company use many technologies for
their regular operations which create
good market position and give more
cost efficiencies ( Scott and
Baillargeon, 2017).
competitive pressure which create price
war among the retail companies.
 Company might not consider the good
market research.
Opportunities Threats
 Company has many chances for the
strategic alliances of the various brands
that provide more products to attract
more people.
 Many opportunities to develop their
online business in many areas.
 Company has opportunities and
various chances in private label market.
 Economic recession affect the market
share of the company.
 Company face high competitive threats.
Recommendation
As per the before discussion, it is determined that Tesco company need to focus on their
economical factors because it influence the more on company growth and company need to pay
more attention on the political factors so that company can easily operate with property business
and do their trade activities regular basis on a efficient manner. Tesco need overcome their
weaknesses so that company can improve their market value all around the world.

Minimise negative impacts of change on organisational behaviour.
There are many measures which minimise the impact of change on the organizational
behaviour. Sainsbury is a massive chain of supermarket and stores which deal large number of
employees day basis. Sainsbury company do some changes time to time according to the market
demand. In this report, some measures are given which minimise the negative affect of change
on the organizational behaviour which are given below-
Leadership
Every company want to become a leader on the market. A good leadership require for
every organization. Sainsbury is a big company and become a market leader most of the time.
There are many rivals in the market so Sainsbury always focus on the latest market strategy and
also policies of the company so that company lead the whole marketplace. A good leadership
help in reduce the negative impact on the organizational behaviour and help in boost the
company market share ( Stewart, 2016).
Organizational culture
Organizational culture refers as a particular way to behave in the organization. In
organizational culture, all the employees shared their values and belief which is build by the
leaders of the organization and after this leaders communicate and support with the help of
methods, perceptions ,understanding , nature and behaviour of the organization. Sainsbury
company concentrate on the effectiveness of the organizational culture so that it reduce the
impact of the change.
Organizational Performance
Organizational Performance is help to minimise the impact of changes which company
do in the past due to some circumstances. Sainsbury is a famous company which doing
businesses worldwide so most of the time company do many changes in context of technology,
policies, structure and strategies so some changes give adverse affect on the organizational
behaviour of the company. In this situation, Sainsbury mainly concentrate on the organizational
performance which help to minimise it negative positive impact on the company growth
(Theodoulides, Kormancová and Cole, 2019).
Organizational development
To reduce the impact of change on the organisational behaviour, Sainsbury usually focus
on the organizational development of the company. Sainsbury continuously working on their

developments so that company can maintain their position in the market. With the help of
technologies and strategies, Sainsbury lead the whole market and also conduct some
motivational and inspirational sessions which affect the individual and organizational
development of the company. Apart from this, it help to minimise the impact of change on the
company organizational behaviours.
SECTION TWO
Introduction
Change is required for every organization but and it affect on organization directly and
indirectly. Some changes give good impact on the organization and some changes give negative
impact on the organization. Here , this report discussed the barriers of change which affect the
company and also evaluate that how it affect the leadership decision making of the Sainsbury
company. These barriers are discussed below-
Various barriers of change that affect leadership decision making of Sainsbury
Employees Negative Attitude
This is consider as a most common barrier of the change which affect the leadership
decision making of the organization. Employees attitude is really matter for the growth of the
organization. Sainsbury is comes under the most popular company in UK so company need to
maintain a good relationship with the employees. Sainsbury need to start focus on the employee
engagement activities which help to make employees attitude positive so that Sainsbury can
work effectively, with the help of group activities and some get together with the employees give
positive impact on the attitude of the employees .
Inefficient Communication
Communication gap and inefficient communication affect the organization and it
consider as a big barrier of the change. Inefficient communication basically affect the leadership
decision making of the company because employees are not properly involved. Sainsbury
company mainly focus on their communication process so that company easily manage all the
activities. Not proper communication is the reason that all the employees are not fully involved
in their work and not proper reporting to their leaders and peers and not even give suggestion to
their leaders. Inefficient communicate give negative impact on the image of the organization.
Inadequate Financial Resources

Due to lack of adequate financial resources are also a big barrier of the change which
affect the leadership decision making of the Sainsbury company. To run the organization in a
smooth way, company need a good source of finance which help to maintain all the
manufacturing, production and selling and investment process of the company. Because of the
inadequate financial resources, company can not opt for any progressive change because all the
types of change require many strategies and fund (WOULFIN, 2019).
Lack of Management Support
Change occur with the help of good management support but when company
management is not supportive then company experience many issues. Sainsbury company follow
proper organizational structure which give proper direction to the company from higher authority
to lower employees. If company management not support properly to their employees then
company not even able to take a good decision for change in the company decision making
process. There are many drawbacks of this barriers which also affect the leadership decision
making process because if management not support properly to their employees then talented
employees not show their effective participation on the decision making process of the company.
Poor morale of Employees
It is also considered as big barrier of the change which give adverse impact on the
company employees that's why employees are not participate properly when their leader is about
to ask about their opinion and suggestions. Sainsbury company focus on their employees so that
company increase the morale of the employees which help in change management process.
Company need to provide proper training sessions regarding latest trends and also provide
compensations and incentives time to time which help in develop the morale of the employees. If
company do not follow this then company will face many adverse consequences.
Wastage of resources and time
This is also comes under a common barrier of the change which affect the change
management process. Sainsbury company need to focus on the wastage management and also
time management otherwise company may face many issues. Wastage of the resources and time
affect the decision making process of the leaders because they are not able to conduct the
meeting at a particular time so that all the resources affected and it give negative impact on the
time management. To adopt the change for the welfare of the organization so company need to

do proper utilization of the time and resources otherwise company can experience many adverse
situations.
Various leadership approaches to dealing with changes in Sainsbury
Leadership Approaches or style are really essential for the development of the organization
which give many advantages of the company. Sainsbury focus on their leadership approach
which help to maintain the performance of organization. Here, some leadership style discussed
which help in dealing with the change process. Some leadership styles are give below-
Autocratic
This leadership style is basically centred around the the leader of the company. In this
leadership style, only leader control considered. Leader is the one who take all the decisions and
follow the style of “ Do as I say”. An autocratic leader consider that he or she is the one who is
able to take a right decision and a knowledgable and smartest person in the company. Sainsbury
company is a huge company so there are many types are leaders working in all the leader,
autocratic leaders is also one of them which take decision fast and also enhance the performance
of the company in every adverse situation (Zheng, et., al., 2017) .
Democratic
These types of leaders always take employees decision and also consider the employees
opinions. These types of leaders share all the details and informations which is beneficial of the
employees and help in their job responsibility. In Sainsbury company, many leaders are working
efficiently and play a tremendous role in the success of the organization.

Illustration 1: Leadership Style, 2018
Transformational
These types of leaders mainly clear about all the work and responsibilities they have to
play. They have very high expectations toward their goals. They always support their staff
members and provide their guidance. Transformational leaders continuously working on their
work and get promotions time to time. These types of leaders also known as a quite leaders
which create good impact on organizational environment. Sainsbury company mainly hire these
types of leaders which help in company transform in a good way.
Laissez- Faire
These types of leaders do not lead the time properly instead of this they provide the
authority to their staff members to take entire decision on behalf of the leader. This leadership
approach also consider as “Hands -Off”. Sainsbury don't want to appoint these types of leaders
because these types of leaders is not do their work in a proper way and team can take decision
and self direct themselves.
Lewin’s three-step model of change
This model developed by the Kurt Lewin. In this model help in understand the chain
process of the company and also create a good perception which changes is require. This

model determine three steps like Unfreezing, Changing and last Refreezing which are
discussed below- Unfreezing – In this step, it is determine that most of the change become fail because of
the employees are insufficient about the change. In that situations, when company
employees are not prepare for change so that employees are more want to resist the
change process and instead of this they like to work well. To overcome this situation,
Sainsbury need to plan a good meeting for intersection and communication and provide
their support (Wang, Kung and Byrd, 2018). Changing -In this step, company implement the change process in which filed company
want to change. Like Sainsbury plan to change the technologies , structure, policies and
procedures of the company so company can plan to implement on it. Sainsbury non stop
provide support to maintain this change process.
 Refreezing – In this last step, after the change plan successfully implemented then
company need to ensure that these change stay for the long period of time an become a
part of the organizational culture. If the change process become successful then
Sainsbury need to revised it.
Evaluation of various leadership approaches
Evaluation of leadership determine many types of leadership style which affect the
company growth directly and indirectly both basis. Some famous leadership styles like
Autocratic, Democratic, Transformational , and Laissez- Faire play an effective role in the
business context. Sainsbury company use Lewin’s three-step model of change approach which
help in over all development of the company and determine lots of advantages. With the help of
specific steps of this change model company can easily adopt the change in their strategies and
do some evaluation in their business operations.

CONCLUSION AND RECOMMENDATION
As per this report it is concluded that for every organization, change is needed. In this report ,
two companies comparative analysis is done on the basis of change on an organizational strategy
and its operation. This report determine the internal and external drives of change which impact
the leadership , team and also individuals. This report also analyse the some measures which
help in minimise the negative impact of change. Flack of financial resources and employees poor
morales are the main barriers which affects the organization. Transformational leadership is
consider the best leadership style. Company need to focus on the leadership approach so that
company can lead at the marketplace. As per this report it is recognized that company should
work on their weaknesses so that they will earn more profit and increase their brand value more
in other foreign countries. Company adopt many strategies to overcome barriers that will help in
decision making process of the company.

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