Understanding and Leading Change in TESCO and Sainsbury's

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Company one: TESCO...........................................................................................................3
Company Two: Sainsbury's....................................................................................................5
Drivers of change affecting organisation...............................................................................6
Critical evaluation of implications of drivers of change in each organisation.......................7
PART 2............................................................................................................................................7
Force field analysis and how they affect the decision-making...............................................8
Leadership concepts along with techniques which is used at TESCO to overcome decision
making barriers.......................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The leadership present in an organisation play an important role in growth and
development of the organisation as they encourage employees to expand their skills, enhance
their performance and work diligently for the organisation. These efforts undertaken by the
leader directly affect overall output and quality of products offered by the organisation. In this
report TESCO and Sainsbury's have been selected which are leading members of the British
retail industry. TESCO was established by Jack Cohen in 1919 and has their base of operations
in Welwyn Garden city, UK. The organisation has expanded globally with annual revenue of £53
billion in 2019/2020 business year. The organisation has implemented policies to offer diverse
range of products and has financially benefited during the pandemic. Sainsbury's is second
largest retailer in Britain which was founded by John Jamesin 1869 (Cantarelli 2016). The
organisation follows competitive pricing strategy and provides personalised shopping
experience in order to attract consumers from their rivals. This report includes PEST analysis of
these organisation in order to identify outside forces which affect operations of these
corporations along with leadership barriers faced by leaders in the organisation. In addition this
report covers change in organisational structure of TESCO hierarchical structure to more flexible
organisational system.
PART 1
Company one: TESCO
TESCO is a retail organisation operating in 13 international market with headquarters in
UK and employees more than 420,000 workers globally. The organisation is largest grocery
retail brand in UK with market share of 25%. The company has hierarchical organisational
structure which gives maximum responsibility to employees at top of the hierarchy.
PEST analysis:
Political factors: The main political factor which impacts the organisation directly is the
impending Brexit deal in the UK parliament. This deal changes several aspects associated with
British corporations which affects retail chains across Europe (Kim and et. al., 2017).
Positive impact: The Brexit deal aims to prioritise UK based businesses over international
organisations expanding in Britain. The implementation of this law provides the respective

company benefits from the government and allows the organisation to gain competitive
advantage by favouring British market for their business.
Negative impact: This deal directly affects trade laws between Britain and EU which
impacts retail outlets of the organisation present in rest of the Europe. This policy will negatively
affect the organisations distribution channels across Europe as taxation laws will change.
Economical factors: As the respective company operates in various international markets
the daily operations of the company are affected by different trade barriers, corporate taxation
policies, growth rate, rate of inflation and others.
Positive impact: The international expansion provides the organisation various sources
for revenue generation in new consumers (Morkunas and et. al., 2019). TESCO needs to
implement organisational structure which motivates employees to work collaboratively, as in
foreign countries talented candidate prefer organisations with coordinated relationship between
employees at various positions.
Negative impact: The organisation has to invest high amounts of capital in order to
operate various stores across the globe with high risk attached to presence in global markets. The
hierarchical organisational structure adopted by the organisation decreases employee
engagement across their stores and reflects on their global performance as conflicts arise in such
organisational structure.
Social factors: TESCO is dependent on social elements such as preferences, consumer
lifestyle, and purchasing interest for securing profit. Recent trend in increase of single lifestyle
has a great impact on the company (Mostafa 2016Park 2016).
Positive impact: The trend of individual living has increased consumers for the company
as each individual purchases groceries for themselves and as a result purchases more produces
for individual use.
Negative impact: The single lifestyle of consumers has reduced the trend of buying
products in bulk and has negative impact on sales in retail stores. Single living consumers revisit
the stores after longer period of time compared to family consumers which affects the overall
sales of various products offered by TESCO.