Understanding and Leading Change in Tesco

Understanding
and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................1
P1) Comparison between two distinguish organisation is done to understand the impact of
change on both firms strategy and operation..............................................................................1
P2) Study numerous ways in which internal and external drivers of change affecting team,
leadership and individual behaviour within administration........................................................4
P3) Determine measures to minimise negative impacts of change on organizational behaviour.
.....................................................................................................................................................9
P4 Describe different barriers for change and their impact on leadership decision-making....10
P5 Apply different leadership approaches to dealing with change..........................................11
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In competitive market place it is important to adopt dynamic changes in an organization.
In order to cope up external environment it is mandatory to make changes within internal
premises. Changes can be done in strategy, organizational culture, set objectives, plant and
machinery and so on in order to gain competitive advantages against rivalry. Changes is on going
process it never ends. This report is based on Tesco is a public limited company founded 100
years ago in United kingdom (About Tesco, 2019). Jack Cohen was the founder of this leading
general merchandise retailer. Company is serving it's services in Ireland, Hungary, Thailand,
Malaysia, United Kingdom, Czech Republic and Poland. This assignment covers comparison
between two distinguish organization regarding how changes impact both the firm's strategies
and operations (Al Barwani and Imig, 2018). Along with this several drivers of change affect
leadership, individual and team behaviour in an administration is studied in order to frame
tactics. Deep examination on numerous barriers for change is done to in order to conduct training
sessions for employees. Evaluation regarding barriers to change influencing decision making
process of an enterprise is done. Various leadership approaches is explained so as to deal with
change prevailing in the open market place.
P1) Comparison between two distinguish organisation is done to understand the impact of
change on both firms strategy and operation.
Changes emerging in dynamic environment are impacting every small and big
organization in neck to neck competitive world. Slight change creates huge impact on business
associates operation and strategies in both positive and negative way. Regular fluctuation in
changes affect the companies overall productivity and profitability ratio to a large extent. Every
administration wants to improve their overall performance by improving their structure and by
facing issues related to change. Moreover, it can be said that all this factors and changes upgrade
enterprise wording style in positive way.
About Mark and Spencer:
There are 1400 stores of Mark and Spencer across 57 countries. It is a British retailer
store serving it's quality product and services to their targeted customers (About Mark and
Spencer, 2019). Along with this it provide large range of financial services such as, current
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account, saving, credit cards, insurance, and mortgages. It came into existence in the year 1884
and is suited in London, United Kingdom (Bohman, 2019).
A comparison chart has been explained below, so that both the organization are aware
about changes impact on their functions:
Basis Tesco Mark and Spencer
Political changes In open market place these
changes occurs due to
fluctuation in governing bodies
policies. On the other hand it
can be said that after Brexit all
the formulated rules were
modified as per the
requirements. It has greatly
affected retail sector in
negative way due to which
Tesco faced huge monetary
loss that gradually lowered
profit sharing ratio of the
business in intense competitive
world.
Strategies: To gain
competitive advantages against
rivalry Tesco is offering
luxury products to it's potential
customers. Due to which
prices of the goods is high as
compare to other brand dealing
in the same product. It has
been seen that after Brexit they
have to cut down the price in
Brexit has immensely affected
Mark and Spence which results
to change in their strategies
and operations at a tremendous
scale. Affect of change can be
seen in the following points:
Strategies: Mark and Spencer
is able to build positive image
in customer mind because firm
is serving high quality goods to
their targeted customers
(Burke, 2017). In order to
bind them for longer time
period they were adopted
skimming pricing strategy.
But after Brexit company was
forced to adopt economy
pricing strategy. Also business
associates was forced to sale
their quality goods at low
price.
Operations: In order to run
the business of Mark and
Spencer Just in time method
executed effectively in the
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order to survive and sustain
their business for a longer time
duration.
Operations: In order to meet
the emerging needs of the
customers they are
implementing modern tools
and technologies. By studying
the customers demand
innovations in their production
activities so that they can
deduct overall cost and are
able to serve good quality
products at cheap price
(Doppelt, 2017.
working premises. Here, there
their main focus is on
managing inventory so that
production activities can be
operate effectively. Moreover,
it saves cost of the operations
at large scale.
Environment changes These changes are
uncontrollable in nature. It
occurs due to raise in global
warming, natural disaster,
climate changes and so on.
Environment changes create
large impact on Tesco's
operations and strategies.
Strategies: Minimum stock
level is used by firm in order
to save extra cost. It is adopted
effectively as it saves wastage
of resources. Moreover, lean
principles is used so that value
and communication flow
within company can be
In order to sustain and survive
for longer time period
environmental factors is
considered important aspect by
Mark and Spencer while
operating their business
smoothly. This greatly impact
overall workforce performance
of the business in both positive
and negative way.
Strategies: To be in the
leading position it is important
to make strategies for the
welfare of the environment.
The team of mark and Spencer
aware general public regarding
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uplifted.
Operations: To bind potential
customers with their brand
Tesco is focusing more on
CSR activities (Drago and
Blum-DeStefano, 2018).
Moreover, they motivate their
employees to take part
voluntary in activities like
keeping Britain clean, planting
more tress etc. By doing so the
operations of Tesco can be
performed easily without any
crisis.
use plastic bags. Along with
this they motivate people to
use more of cash less payment
so that deforestation does not
take place.
Operations:Six sigma
technique is used by Mark and
Spencer in their operation
activities. This aid them to
ascertain inappropriate process
and guide them to implement
in the operation activities
according to the environment.
By doing so goodwill can be
raised in the eyes of the
customers.
P2) Study numerous ways in which internal and external drivers of change affecting team,
leadership and individual behaviour within administration.
Internal drivers to change (resources, desire, inventions, capabilities and so on) and
external drivers to change (customers, technology, government, competitors etc.) are affecting
individual, team and leadership behaviour in both positive and negative aspect. In the era of
modern technology every small and big administration is trying to cope with dynamic change
occurring in cut throat competitive world. Change is the core element that need need to be
executed in order to create tough competition for others. Any slight change in these factors bring
huge modification in business administration (Drago-Severson and Blum-DeStefano, 2018).
However, a driver's change is an internal and external force which shapes change to an
administration. It includes modifications in goods, design, operations, services and strategy.
Below are some of the common change drivers start with internal drivers and to external forces
are mentioned beneath:
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 Customer Driver's Change : In order to meet the emerging needs, wants, preferences and
demand of the customers change is must in an organization. In open market place loyal
and trustworthy customers seeks regular updates from regarding innovative goods,
features, characteristics and trends. Moreover, the changes in Tesco are drive on the basis
of the consumers preferences and tactics are plane respectively. In order to capture
opportunities prevailing in the market. To bring change either in technology,
organizational culture, working pattern etc. it is very important that there is continuous
support from management in every possible manner. Competitor's Driver changes :Neck to neck competition and challenges is prevailing in
the global market due to the presence of existing rivalry (Iles, 2017). Tesco adopts
change by calculating strategies of other competitors like, Mark and Spencer, Burberry
etc. For example: If Burberry management has decided to expand the business in other
nation with existing product. Then Tesco's top level management will be framing
strategies in order to grow their business either with innovative goods or by adding
additional features, characteristics etc. in order to create tough bench mark for Burberry.
 Technological Driver Change: To generate huge revenue from the customers it is every
important to cut down the cost of production. By adopting modern plant and machinery
extra cost of human labour can be reduced and product can be prepared at low price.
With rapid growth in the economy, enterprise is implementing the changes quickly. In
order to growth the business of Tesco they need to adopt new technologies in their
working premises. However, when new technologies are adopted the roles of managers
and leaders also change because they are held liable to train staff members regarding use
of technologies in proper manner. Continuous support from management boost
employees to get easily adopted the change taking place in Tesco (Laszlo and Cescau,
2017).
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Illustration 1: SWOT anlaysis, 2019
SWOT analysis of Tesco
Strength Opportunities
 Tesco is geographically diversified as it
has more than 6800 stores in 14
countries.
 Company is expanding it's business in
diversified stores such as, Tesco metro,
Tesco extra, Tesco express, Tesco
homeplus etc.
 Tesco is providing huge job
opportunities for which it is acclaimed
as largest opportunity builder in
Europe.
 There is huge opportunities for Tesco to
work as joint venture where Tesco is
under performing.
 Company can avail more on online
business and home delivery facilities.
This is another opportunities for Tesco
to grow in open market place.
Weaknesses Threats
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 Tesco is burden with high debt and
credit card liability due to which profit
sharing ratio is affected.
 Business failed in Japan and US market
due to which low marketing strategy.
 Competition with supermarket giants is
the biggest threat for Tesco (Low,
2018).
PESTLE analysis of Tesco
POLITICAL ECONOMICAL
 European market after Brexit : Brexit
create trouble for Tesco in running
their business smoothly. Moreover,
the rules and regulations of trump
government creates numerous issues
while operating business in dynamic
environment. Changes helps Tesco to
come up with innovative idea in global
market
 Tesco faces economic regulation that
affect their productivity and
profitability to a large extent. In open
market place company is facing issues
related to fluctuation in currency.
SOCIAL TECHNOLOGICAL Changing preferences of millennials :
The millennials value different things
relevant to a strong work culture , a
preference for inclusiveness and
directness , these are involved in social
issues and good causes for positive
change .
 Social media Involvement: Tesco is
using social media in order to promote
their product as customers are more
active on social sites. Modern tools are
used in order to increase their sales
volume. Negligence of this factor
shows the door of exit to firm.
LEGAL ENVIRONMENTAL
 Diversification by acquiring digital
marketing and analytics firms to
enhance the growth of organisation
 Development for sustainability in
commercial real estate.
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(Nelson‐Brantley and Ford, 2017).
Illustration 2: Pestle analysis, 2019
How organisation change affect these terms (team, leadership and individual)
Leadership Team Individual
Change in the working
premises of Tesco bring
change in the role performed
of leaders in the working
Slight modification in Tesco
brings changes in policies so
that team adopt new changes
easily. As well aware co-
An individual should adopt the
changes under the guidance of
superior. In Tesco changes
occur because of large variety
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premises. By scanning the
organization environment
leaders adopts best approaches
which is beneficial for the
growth and development of the
company.
workers about the changes
benefits.
in internal and external factors.
As changes are uncontrollable
by leaders they have very little
or no control on it (Neumann,
and Vince, 2019).
P3) Determine measures to minimise negative impacts of change on organizational behaviour.
In order to minimise negative impacts of change on organization behaviour distinguish
models and techniques are adopted that are mentioned beneath:
Creation of pathway: Tesco's management team is suggested that a leader is held
accountable to frame action plan. This includes role of staff members, plans and policies and so
on. Action plan aid workers to upgrade their knowledge regarding newly set standards. This
directly assist in developing interest of staff members on change with it's benefits. However,
workers perform their work effectively with new format in appropriate manner.
Discuss plan with employees: In global market it is another technique that is mandatory
for leader to convey the formulated plan with staff members with their specified role. Tesco is
advised to conduct an formal meeting for workers where they will be informed about each and
every thing in organized manner. Also feedback can be taken from employees regarding the plan
implemented (NHS England, 2017) . If any suggestion is provided modification can be done
respectively.
Bruke Litwin Model : It is adopted by HR manager of Tesco to a large extent as managers can
study significance of workforce to specific task. They display heterogeneous drivers of change
and determine their preferences so that what is essential for business is executed in their
activities. Bruke Litwin Model covers several elements such as, mission, tactics, external
environment, leadership and so on . In context with Tesco the factors are stated as under:
External environment: Political, competitors, social, business ethics, and so on are
mentioned as external factors. To accomplish huge revenue all of these factors are supported
by Tesco so as to bring alterations in current techniques. Administration follow PESTLE
analysis to deal with factors of external surroundings. However, PESTLE is a strategic
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framework for understanding external influences of an organisation. Along with this it assist in
minimising negative impact of change on organisational behaviour.
Mission and strategy: Manager of Tesco formulate plans with effective usage of
knowledge of statement. The mission of Tesco is “We make what matters better, together”. In
order to support this statement staff members develop distinguish policies and strategies to
achieve them .
Leadership: In order to meet the set mission statement it is important for management
to adopt heterogeneous styles of leadership like, Autocratic,Transformational ,Laissez Faire, ,
Participative, Democratic and so on (Proffitt-White, 2017). It directly or indirectly encourage
workers to attain set standards of administration as well as provide guidelines to staff members.
P4 Describe different barriers for change and their impact on leadership decision-making.
As per the above discussion it can be stated that in order to operate all the business
activities appropriately the implementation of changes is necessary as it will improve the overall
production process of the organisation on a regular basis. By adopting the changes in the
business organisation management can bring significant impact as it enables the manager to
operate all the business activities as per the current market trends. But while adopting the
changes in their firm the manager have to face various barriers which create difficulties in
implementing the changes. The description of the barriers and their impact on leadership
decision-making is define below:
Lack of employees involvement: It is major issue which is facing by the organisation
while adopting the changes as it refers to that condition when employees neglect to adopt the
changes in their processes. The main reason behind it not involving the employees in the
decision-making process of change which results the employee always have fear to adopt
changes, to embrace a new culture and to follow new procedures in their activities. It is essential
for the leaders to take the decisions related to involving the employees in decision-making
process so that they will be able to motivate them towards adopting the changes by telling them
the benefits of changes for them as well as organisation (Rossi, 2019).
Imperfect communication: This issue occurs when a leader does not give their focus on
espousing effective communication channels in their organisation. Due to this employees are not
able to share their ideas, thoughts, and conflicts related to adopt the changes. In this case the
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leader of the Tesco needs to establish proper communication medium so that they can enhance
the motivation of employees by considering their ideas and thoughts in their decision-making.
In order to increase the customers interest and sustain the business for a long period of
time the business manager of Tesco needs to focus on producing new products by considering all
the changes as per the current market trends. But before adopting they need to asses those factors
which can impact the changing process. For this, Tesco can use the Force Field Analysis model
which is describe below:
Forces against changes:
 Increasing cost: While introducing new products in the marketplace the manager have to
do higher market research, provide training to the employees and need extravagant
resources which will increase the overall cost of the business.
 Increase the labour turnover: The employees within the organisation always against to
adopt the changes as due to this they have to give their more time and efforts to complete
their work on time. This will increase the turnover rate of the employees which results
lower succession and growth of the company (Scott, 2017).
Forces favours changes:
 Customers wants new products: As Tesco is known for offering a range of quality
products in the marketplace due to which the customers always seeks to take advantage
of their new product. This will lead the direct positive impact on the profitability and
sustainability of the business.
 Increase in product category: By introducing a new product Tesco will be able to
increase their product category and the customers loyalty and interest towards the brand.
 Governmental support: In order to maintain the social value of their company Tesco
manager always stay concern for contributing in CSR activities as it will help them in
maintaining the belief of customers and attain the higher support of the government
because they give their focus on producing that product which will not harm to the
economy.
After evaluating the above factors it can be said that the manager of the Tesco can get
higher succession and recognition in the marketplace by considering all these in their production
activities (Serrat, 2017).
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P5 Apply different leadership approaches to dealing with change.
To adopt the successfully implementing the changes leaders of Tesco must give their
focus on following an effective leadership approach. As the leaders play a central role in
implementing the changes as they have the power of influence the behaviour of the employees
and motivate them in order to attain the organisational goals. The various approaches of
leadership are define underneath from which leaders of Tesco can consider a most effective
approach in their organisation.
Democratic leadership approach: This leadership style is most suitable approach as it
increase the involvement of the employees in decision-making which increase the flow of
conversations or ideas among all the level of people within the organisation. This will helps the
leaders of Tesco in getting the higher support of the employees in implementing the changes
which will provide the higher succession and profitability to the company. But can also lead
delay in decision-making due to involvement of all employees which results decreasing level of
customers satisfaction (Wolberger and Goldman Schuyler, 2018).
Situational leadership approach: This leadership approach is praised for its ability to
set down as per the working situation which will enables the leaders at Tesco to adopt all the
changes according to the current market situation so that the customers can be retained for a
longer period of time. But this approach is not suitable in taking the decision for long term
objectives as it only focus on present business situations.
Transactional leadership approach: This approach is based on giving the rewards and
punishment to the employees. It has both the positive and negative impact the employees as the
employee will give their higher efforts in accomplishing their work so that they can get rewards
whereas if they will create the fear of getting punished which results higher attrition rate of the
employees.
As per the above discussed leadership approaches leader of Tesco must adopt the
democratic leadership approach as it will helps them in attaining higher productivity and
profitability with higher support of employees.
Lewin's change model: This in an effective model of change which will help the
manager of Tesco in getting the details about that changes within the business processes should
be implemented or not (Tombetti and Mason, 2018).
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Illustration 3: Lewin's Model, 2019
Unfreezing: It is the first stage of this model in which all the employees neglect to adopt the
changes in their activities (Lewin's model ,2019). In this aspect the leader of Tesco needs to
adopt effective communication channels and conduct effective training programs so that they can
motivate their employees towards adopting the changes.
Changing: In this step, all the employees will agree to espouse the changes in their
working processes. Due to which it become essential for the leaders to give proper training and
development programs to their employees so that the ability and knowledge of them can be
enhanced in order to attain the desired results.
Refreezing: It is the last stage, in which the leaders will concern for establishing proper
control and monitor, render healthy environment and regulate the flat culture in the organisation
so that the employees can easily changed their working ways.
Hence, this model will play a significant role in Tesco as it will help the managers in
motivating the employees to adopt the new working procedures so that the overall performance
and sustainability of the business can be enhanced (Weston and Finkelstein, 2017).
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CONCLUSION
As per the stated report it can be calculated that changes is important for innovation in
rigid work. Adopting changes in the working premises helps administration to create tough
competition for others in intense competitive world. In order to cope up with continuous change
management of the firm design strategies by scanning the external environment. Impact on
change on both companies operation and strategies is studied in order to enhance the knowledge
in this aspect. Organization is focusing on Internal and external drivers to change so as to frame
tactics to overcome them in cut throat competitive world. Numerous measures to minimise
negative impacts of change on administration behaviour is determined to raise revenue
accumulation. How barriers for change influence leadership decision making process is studied
by firm in order to come up with innovative idea for better outcomes. Distinguish leadership
approaches to dealing with change is ascertained so that changes within internal premises can be
done respectively.
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About Tesco. 2019. [Online] Available Through:<https://www.statista.com/topics/3807/tesco-
plc//l/>.
Lewin's model . 2019. [Online] Available Through:<https://www.researchgate.net/figure/Lewins-
three-step-model-of-organizational-change_fig5_323695129//l/>.
SWOT analysis. 2019. [Online] Available
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