Understanding and Leading Change in TESCO

This report discusses the impact of change on the operation and strategy of TESCO, internal and external drivers of change, measures to minimize negative impact, barriers of change, and their impact on decision-making.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1 Comparing several ways or methods in which change had impacted operation and strategy
of company-................................................................................................................................1
LO2..................................................................................................................................................3
P2 Internal and external driver of change that affects team, leadership and behaviour of
individual-...................................................................................................................................3
P3 Various measure which could be helpful for minimizing negative impact of the change-. . .4
LO3..................................................................................................................................................6
P4 Various barrier of change and impact which they had on decision-making in organization-
.....................................................................................................................................................6
LO4..................................................................................................................................................8
P 5 Different leadership approaches to deal change in organizational contexts.........................8
CONCLUSION
.......................................................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Understanding and leading change is essential part of company. Each and every
organization needs to have change in their businesses so that they can sustain in market for long
term.
TESCO is multinational grocery merchandize which had its headquarter in United
Kingdom. Company had market share of 28.4%. It had over 6,800 shops in whole United
Kingdom. Sainsbury is biggest supermarket chain in whole UK. The total revenue of company is
28.456 billion. This employ over more than 186,900 employees across all its stores The above
report includes distinguish among several changes in company that can have impact on operation
and strategy of organization. Illustrating how external and internal driver could affect team,
leadership and behaviour of individual into company. Accessing measures which is helpful in
minimizing negative impact of the change on company. Defining several barriers of change and
stating how decision-making could influence in company. Report ends with various leadership
approaches to the organization.
LO1
P1 Comparing several ways or methods in which change had impacted operation and strategy of
company-
There are many ways in which change in an organization can have huge impact on
strategies and operation of company. Some changes are explained below-
Basis TESCO Sainsbury
Cultural change The task culture was followed by
company before in which some
individuals who had their influence
throughout organization. Then
further they had implemented
change in their organizational
culture and started following role
culture. In this culture organization
is hugely controlled through
everyone in company as per the
Person culture is being followed by
organization. In this type of culture
individual believe themselves as to be
superior to businesses. But after that
there has been change in the culture of
company they had introduced task
culture through which they are
developing teams in organization for
particular project and task. This
cultural change in organization let
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responsibility and role of
individuals (Turner and Hartley,
2016). Thus, the operation activity
had become smoother and easily
operated within TESCO whereas
the strategies of business are also
been implemented accordingly as
work is delegated among one
another each one of the individual
has their own.
Sainsbury to render quality services
effectively to the consumer which
improves operation activities of
company and hence strategies which
will be further implemented by
company should also be as per the
team's contribution.
Technological
changes
TESCO further using basic
technologies into their business but
as the increased trend and busy life
schedule of individual they had
introduced a new technology which
let their consumer to “shop and go”
in which consumer could easily
scan and pay for the items with the
help of their smartphones which let
the company to have flexibility in
the store's operation activity.
TESCO could further implement
strategies accordingly where they
can let their consumer to easily
shop.
Sainsbury had their shopping
application by which their consumer
can easily shop with that further they
had implemented technology into their
business and let their consumer to
online order their products by “click
and collect” technology they will be
letting their customer to purchase their
product online and the purchased
product will be available to consumer
at nearby store (Andrade, 2020). This
will reduces rush into the stores and
thus they can perform their operation
easily and enhancing their sales and
revenue. There strategies will also be
implemented as per the technologism
change and let their consumers to
effectively purchase goods.
Structural
change
Firstly TESCO is following
divisional structure in their
Sainsbury is following the functional
structure into the business but further
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company further they had changed
into the flat structure which
reduces barriers among the
employees and top management
each one of them can interact with
anyone in the company if it is
required (Tanner, 2017). This has
an easy flow in the operation
department and let the conflicts to
be solved among employees and
thus the strategies will also be
implemented as per.
they had changed it and had started
following matrix culture which let
company to effectively follow the
strategies which is helpful in
interaction ad communication and thus
if there are no problems within the
employees of organization then the
operation activities of company will be
great and hence they can provide
extraordinary services to their
customers.
LO2
P2 Internal and external driver of change that affects team, leadership and behaviour of
individual-
Driver of change which can affect leadership, team and behaviour of the individual into the
company. This can be described below-
Internal Driver:
Resources-
If there is change in the resources of organization then it can affect the overall production
of company. The activities of production in companies could be affected in some or other way. If
there is deficiency in resource then it can affect the TESCO. Resources plays an important role
within organization and is the most significant driver of the change which affects organization
internally. Resources comprises of people, machineries, etc. and when the level of these
resources fluctuate then it impacts organization in a great way (Salman and Broten, 2017). For
example- when the people like hum resources in TESCO changes then it brings the change
within overall organizational structure. Change in the resources can highly impact the success of
TESCO and thus can affect their overall performance as well as productivity. Besides this, when
physical resources like machineries are not utilized in an effective manner then it can lead to bad
impact on TESCO.
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Invention-
Invention is the another most important driver of change which affects the operations as
well as functioning of organization to high extent. When an organization strives willingly for
bringing innovation then this results in high level of change within its performance, capacity as
well as competitiveness (Wilson and Lai, 2019). For example- When TESCO innovated its
communication lines and enabled the employees to easily interact with each other through the
use of advanced technology then this increased the productivity as well as performance of the
employees and thus helped them to effectively implement the change.
External Driver:
Technology-
Technology is important driver of the change which will be helpful for company to grow
and develop. As the TESCO need to effectively compete with its rivals in the marketplace they
will need implement the technologies into their organization so that they can render effective
services to the consumer. It is helpful for TESCO to have advancement in technologies as more
and more customers are moving towards the technology so to gain more consumer interest they
need to have changes into the organization so that they can gain huge competitive advantage
across marketplace (Choain and Malzy, 2019). Thus, it will greatly affect the leadership in broad
way and let the individual's work to be reduced and hence they can further effectively work in
team and render high quality services to the consumers. Technologies needed to be implemented
as per the needs and requirement of the companies. As competitive is growing more and more
technologies are adopted by companies to gain huge revenue and profit further. This helps
company to adopt new technologies and making their work easy and smooth.
Competitors-
Competitors play a role of major driver which let the organizations to implement changes
as per. TESCO could have change in their company accordingly by which they could immensely
compete with rivals in marketplace. As competitors are growing in marketplace then the
company had to implement such changes which is helpful for them to gain huge competitive
advantage against them (Fernando, 2018). Thus, leaders had to change their strategies
accordingly and lead further in such a way that they can compete with rivals effectively. The
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employees and team of TESCO must work as per the needs and demand of company effectively
and producing the quality goods and services to the consumer across the marketplace. By
implementing new strategies and change into company they can gain huge revenue and profit
further. The competitors encourage companies to administer changes into organization for
sustaining in market for long term.
P3 Various measure which could be helpful for minimizing negative impact of the change-
There are various measures which could be utilized by company for eliminating the
negative impact of the change significantly. Some measures are explained below-
Defining change and align it to the goal of business-
The change which is being implemented by organization should be clear;y defined so that
each and every individual into the company could adopt the change easily. They must have
review also that the change is being aligned to the objective of business so that it should have
positive impact on the company and its operation. The value of change can be effectively
determined. TESCO must assist that the change is carrying out into the right direction or not if
not then it must be rectified and if it is accordingly then it could be carried forward (Maimon,
2018). Further accessing that this will be useful in valuing change that would be quantified input
and effort which is invested by company further.
Determination of impact and those affected-
The determination of impacts is to be done before only as they can have impacted the
company's overall functioning or not. This analyzation is helpful in accessing through various
impacts that what will the change further reflect into the organization whether it is positive or
negative it can be helpful for company to hugely sustain in marketplace for long term. If they
previously analyzed then they can also have several measures for it which can be further utilized
by organization when change is implemented by them into the consideration.
Communication strategy to be developed-
The communication strategy is helpful in reducing negative impact of the change into the
company. This can be excluded by the overall processing of the business operation. If there is
proper communication strategies within the organization then change in organization can easily
adopt by them into business processes (DeArmond and Maas, 2018). The TESCO must have
smooth flow of communication among each of the department so that they can reduce the
conflicts among company and render appropriate functioning of change which is being
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implemented by organization into their operation. Thus, there is no negative impact of such
change into the company.
Effective training-
It is the essential factor which must be considered while rendering change into the
company. TESCO must ensure that they must render training, information and knowledge
regrading change and let them learning about the change. This is helpful for them in having an
overall review that further how they will be performing their jobs into the business operations
and leading the change in such a way that it can be profitable to the company whole-fully.
Training is helpful in eliminating the negative impact of changes into the company (Ahmed,
2018). If employees are provided with proper training and development program then they could
easily adopt the change in the organization. Thus, company can have positive impact into the
company through proper development program to the employees and having and essential
growth through change.
Measuring process of change-
The company must measure procedure of change into company. It is very important for a
company to have a measurement of change so that they can analyze how effectively and
efficiently change is being implemented into the company. TESCO must ensure that they
measure the changes which must be taken into consideration while they are implementing any
change process. This process can include how the change will be taking place and how it will be
overcome existing feature into the company (Beauregard, 2017). If it is effectively measured
then there will be no negative impact of the change process on the company and if there will be
any then it could be overcome by the measurement. And thus after the measurement it could be
rectified soon.
Thus, there are some measures which can be used by TESCO to overcome the negative
impact of change into the company. The change in company is essential for overall growth and
development. By having the appropriate measure along with implementation of changes
company can reduce the negative impact of change into the organization. This all is helpful in
converting negative impact into the positive and having an overall significant impact on
company's overall growth and success. TESCO can immensely grow and sustain in marketplace
for long term if they had strategic change management process into their business operations.
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LO3
P4 Various barrier of change and impact which they had on decision-making in organization-
Lewin's Force Field Model is essential contribution to theory of change management-
part of the strategic management which try for ensuring which business respond to environments
in which they are operating (Flanding and et.al.,2018). Change is to be the result of the
dissatisfactions with the present strategy that is if the goal and objective of company are not
being meet, performance of company is not appropriate and if there is any failure into the
business project. There are many factors which drive change into the business. In this model four
forces are defined under this-
 Forces for change
 Driving Forces
 Forces resisting change
 Restraining forces
In this model there are some force of driving the change and forces for restraining it. If
there is equilibrium among two set force them there would be no change. For implementation of
change the driving force should exceed restraining forces. This analysis could be utilized to
analyze balance of the power which is involved into the issues. Identification of opponent.
stakeholder, allies and influence of targeted group.
Thus forces for change can includes-
Internal force for change :
 Desire for enhancing profitability and other measures of performance of TESCO and
their employees.
 The requirement of recognizing and enhancing competitiveness and efficiency into the
organization.
 Conflict among department in company as whole.
 Requirement of great flexibility in the structure of TESCO (Avonlie Wylson and
Chesley, 2016).
 If there is ineffective communication among the organization within the company and
lack of motivation among employees in the company affects the functioning of
employees in the company as whole.
 Declining of profit and revenue into the business operations.
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External drivers for change-
 If the need and demand of high quality consumer service by TESCO.
 Unusual economic condition of company which can let them to implement changes into
the organization.
 If there is great competition in marketplace then the company need to implement change
in organization.
 Due to the taxes and legislations company is accessing through several changes which
will let company to go through these factors.
 If TESCO would be trying to emerge into the foreign marketplace then they need to have
changes in their organization (Muluneh and Gedifew, 2018).
Restraining Forces-
The change can be restrained by the organization if it is not implemented by them
effectively. There are many factors which restricts the changes to be efficiently applied to
organization and having access through growth and development. These are explained below-
 Communication problem- If there is communication problem in TESCO then change
will not be accepted by the companies employees. They could not accept that change into
the organization (Creasey and et.al.,2016). If employees are not communicated properly
that how they need to process with the change they won't be able to implement change in
the TESCO, and they will resist further than this change will not be accepted by
company.
 Inadequate information- If there is adequate information regarding change then the
employees of company could not resist change into the organization. Thus, TESCO must
render proper information regarding change to their workers so that they can easily adopt
change into the company.
 Failure of the previous change- If there is any failure of previous change in TESCO.
Then this would be difficult for company to sustain change as there is previous failure in
company. So they had to made their mind as per that the failure factors must be reduced
and thus it could be accepted by company and their employees as whole.
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LO4
P 5 Different leadership approaches to deal change in organizational contexts
Business environment in made up of both internal and external environment which
consists of several factors. All these factors can affect company's performance and growth. There
are several factors whose control lance in not in the hand of company such as climate change,
changes in laws etc. For being in a competition, it is important for organizations like Tesco, the
fire department, Sainsbury's to manage change in an efficient manner. Due to changes in
business environment, company has to change in its strategies and way of performing activities.
Due to these changes company has to face several problem like resistance of employees, lower
productivity, labour turnover etc. But with the help of effective leadership approaches and
model, Tesco and other companies can make changes according to the situation.
For example: Tesco is a British multinational retailer. It is stated that there is a huge
competition as well as staff turnover due to high workload and lower motivation. In this
situation, Tesco requires to retain its customers and employees, motivate them for taking
competitive advantages. So, in this situation, leader of Tesco needs to apply situational
leadership. According to the situational style, leader has an ability to change his style as per the
current needs and situation. In this situation it is important for Tesco to motivate employees.
With the help of democratic leadership style and allowing employees in taking active
participation in decision-making process, leader of Tesco can make its employees feel respected
and valued. So, it can be said that situational and democratic leadership style plays an important
role in this type of situations and making employees able to adapt changes (Parés, Ospina and
Subirats, 2017).
Other example of Sainsbury's in which it wants to make changes in its strategies and uses
advanced technology for taking competitive advantages. But the main problem is resistance of
employees. In this situation, it can apply Lewin's change management model and influence its
employees to adapt changes such as:
Unfreezing: Before implementing changes, company make its employees influence and
able to accept change. In this stage, Sainsbury's make employees aware about importance of
making changes and requirement of making changes. Communication is one of the key element
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of this stage by which leader of the company introduce its employees and all ways of performing
according to the new way.
Changing: It is the next stage in which, leader implement changes or make employees
able to use advanced technology. Education, communication and time are some important factor
which can make this stage successful. With the help of training, leader of the company educate
employees by telling them benefits of implementing changes.
Refreezing: The main aim of this stage is to make changes stick and for that company
requires to motivate its employees. In this stage, Sainsbury's can provide benefits and rewards to
employees on the basis of their performance and results for motivating them towards
accomplishing organisational goals (Burnes and Bargal, 2017).
In the case of fire department, it can be said that leader requires to make immediate decision.
There is no time to involve all employees in the process of decision-making. So, in this
case, leader can implement autocratic leadership style and take decision on their own basis due
to shortage of time.
So, from the above discussed leadership approaches it can be said that application of
leadership approaches depend upon the type of change and situation for making change
management effective.
CONCLUSION
From the above study it can be concluded each and every organization needs to have an
change in their organization. An company could have implemented various changes in their
business so that they can have improvement and enhancement in business process. Various
business process and their upliftment lets company to compete with its rivals effectively in such
a way that it could sustain in market for long term. An organization by having changes in their
business operation ad strategy can extract errors and have smooth flow of business activities.
This is helpful for them in gaining objective and goal effectively. By implementing more and
more advance technologies and updating existing one a company could grow immensely and
have extraordinary business process throughout businesses. By this company can enhance their
revenue and profit margin and by rendering quality product to their consumer they can gain huge
consumer satisfaction toward company's product and services. The employee's retention can also
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be gained by organization by having appropriate culture in the company. An company through
change management can effectively access through change in the business operation and gaining
huge growth and development.
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