Understanding and Leading Change - Tesco Assignment

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
Drivers, impacts of change and its affect on organizational strategy..........................................3
Overview of company.................................................................................................................4
PEST analysis for each case study..............................................................................................4
Impact of change and its effect on firm's operations and strategy..............................................6
Change will affected individual, leadership and team behaviour...............................................6
Minimised impact of change and appropriate models to process change efficiently..................7
Project 2 ..........................................................................................................................................9
Introduction to the case study organisation.................................................................................9
Application to force field analysis to determine opposition and support for change..................9
Description on different barriers to change and how they influence decision making and
leadership..................................................................................................................................10
Define how the change accomplished and how success was it.................................................11
Explain advantages and disadvantages of differ leadership approaches to deal with application
of range of examples. ...............................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Leading and understanding change refers to identifications of new opportunities and
introducing new plan to expand the business. Organization understand the importance of change
which is important in order to implement within organizational structure. Leading change is
essential for firm to sustain in market for longer and develop business according to customer as
well as market needs (Alvesson and Sveningsson, 2015).
The present report is based on TESCO, established in UK and run their business across
the world. It explain the drivers of change, impact of change and how it affects on organizational
strategy. Define overview of company case studies, PEST analysis to determine drivers of
change. This study justifies impact of change on each firm and its affect upon organization's
operations and strategy.
Furthermore, explain ways to minimized impact of change, appropriate model to process
change, force field analysis and also clarifies different barriers to change that influence
leadership and decision making. In this report is also justifies how change accomplish successful,
disadvantage and advantages of different leadership approaches to deal with change.
Drivers, impacts of change and its affect on organizational strategy
Drivers of change-
Business need to be able to react creatively and effectively to changing external and
internal environments in which they operates, it refer to the driver of change.
Workers capabilities, inventions, dissatisfaction, desire and resources are internal drivers
of change. On the other hand, competitors, consumers, technology, investors and government are
external drivers of change that impact on overall performance of business.
Lack of employee ability is internal driver that affect business as well as their financial
performances. When staff do not work effectively it directly impact on their operational
efficiencies and decrease productivity, they cannot be able to accomplish work on time.
Impact of change-
Any kind of change in business impact on policies and current strategies in context of
organization.
Technological advancement is one of the change that affect organizational strategy as
well as current working structure. Due to advancement of technology, company has to
implement new technology and invest money in order to replace older one.

Change in preferences of customers directly affect organization current strategy of
production system. When people indicate that they wants something different which company
not offering them, firm want to start understanding their needs and offering exactly what
customers were asking for. It define impact of change on organizational strategy which is
essential for business growth and success in marketplace.
Overview of company
TESCO is British multinational grocery provider, they expand business rapidly and
increase profit margin effectively. Due to some issues they need to change their current food
production strategies and improve quality of food which is beneficial for overall business. Horse
meet scandal is one of the biggest problem faced by TESCO which affect on its operational
strategies and market position. Number of their burgers were found to contain horse meat, that
impact on its customers base and brand reputation within marketplace. Management took their
eye on UK stores in order to identify this issue during business expansion. In order to overcome
with this challenging situation, organization focus on quality and delivery the best food items to
customers that help to build strong relations with them and gain people trust.
Another case study is about, British Airways it is flag carrier airlines of UK. BA is the
second biggest airline in the nation, based on passengers carried and fleet size, behind easy Jet.
Company is the first traveller airline to have generated $1 Billion on single air route. Change is
necessary for business, in order to gain competitive advantages and improve reputation within
marketplace British Airways decide to change or restructure their management entirely, that is
the best way to achieve goals and accomplish objectives. Company seriously wants to readjust
their image within customers mind, so they focus on consumers services as well as current
advertising strategies.
PEST analysis for each case study
Political factor-
TESCO operate business globally, global political elements greatly influence productivity
and performance of company. These include stability of country where firm operates, tax rates
and acts of legislation. Import duty on products is indirect tax that is imposed on imported and
exported of products and services. It affect company because they imports their inventory from
outside of nation like East Asia and China (Shabanova And et.al., 2015). Increasing tax on
import and export of goods is one of the driver of change that affect firm.

On the other hand, due to terrorist attack British airways decided to stopped flights to
certain nations such as middles east where fear of being attacked it higher. It is considered as one
of the main driver that impact on company flights schedules and they need to make changes
according to it.
Economic factor-
Cost of labour is one of the driver of change that impact on TESCO revenue of
supermarket chain. When the cost of labour is increase 1% company has to pay wages according
to it which impact on their annual wage bill accounts and decrease revenues. Labour cost is
essential economic factors that influence supermarkets of UK. Organization focus on
maximizing borrowing cost in nation, increasing prices and costs decrease their profit margin
that affect brand reputation.
Due to increasing prices of oil or fuel, British Airways suffer a lot, they need to
expenses on fuel that decreased profitability, as compare to previous year they expend 13.8 % in
increasing scope of operations (British Airways PESTEL Analysis, 2016). Increase prices of fuel
is an essential economic factors that negatively affect business financial budgets.
Social factor-
In community people' belongs to different cultures and values, the case of horse meat
scandal of TESCO burger is the driver of change that impact badly on business relation with its
consumers. Most of the people avoid eat meat, they prefer to eat veg products rather than non
veg that is totally against to its culture. This news badly impact on firm market position as well
as reputation and they lose market share continuously.
Customer look the best services and value of money that give high quality services to
them. British Airlines charges high prices as compare to other airlines and provide less quality
services that impact on its consumer based and business position in market. Due to deliver less
quality of food and other services, they face many issues which is not appropriate for business
and they required to implement change as soon as possible.
Technology factor-
Digital technology is growing more and more, people prefer to use laptop and mobile for
online booking as well as checking in, this driver of change impact on British Airways in which
they need to up date their websites to answer all the further enquiry of customers.

Advancement of technology is one of the driver of change that brought many
opportunities for TESCO (Chan, Ngai, and Moon, 2017). Development of online shopping with
the facility of home delivery is beneficial for business as well as consumers. For example, drones
is used for delivering products at home operated remotely.
Impact of change and its effect on firm's operations and strategy
Extra charges on import and export of goods directly impact on TESCO financial
budget, when the charges is high they need to pay money, according to change in import duty
they need to pay extra charges for importing some of their products or services in other nations.
It define that this impact of change effect on company transportation operation.
Increase cost of labour had negative impact on TESCO market share and revenue,
because they need to pay wages according to changes in labour market, it effect on current wages
structure of company.
Terrorist attack had negative effects on British airline as they lost out of money because
due to these types of attack organization stoppage flights to certain locations.
British airlines face issue due to poor service quality, they criticised by customers which
is not appropriate and suitable for business success. Because of poor quality services, people
avoid to travel in BA that decrease their brand image. This impact of change negatively influence
on organization flights operations as they will not been able to retain people with them for
longer.
Change will affected individual, leadership and team behaviour
Change always affect individual, team behaviour and leadership within business. For
example, due to competitive environment company implement new technologies such as Drone
in order to delivery products on time, but due to lack of skills in TESCO staff cannot be able to
understand how to operate this tool, it impact on individual performance.
On the other hand, uses of drone also effect team behaviour because most of the people in
group does not have any knowledge about it, they get irritated and frustrated while using it this
can change their behaviour (Hayes, 2018). When workers is not interested for using drone during
delivery because of lack of knowledge regarding it, they does not perform well, it simply define
that this types of change impact on team behaviour which is not suitable for overall business.

In addition, leadership within business will also affected due to implement change , for
example, leader need to guide its workers and provide directions how to use drone when they
delivery goods, they must provide training that help to understand entire system effectively.
Minimised impact of change and appropriate models to process change efficiently
In order to minimized impact of change TESCO improve their quality of products and
hire skilled applicants who help to provide the best services according to consumer needs.
Through kotter 8 step model it is easy to minimized effect of change, it is the best model
that help to implement change effectively in context of business (Kotter’s 8 step Model of
Change, 2018). It give step by step procedure to manage changes with centring on accepting and
preparing changes.
Create-
Before implementing change company need to considered its importance, examine
opportunities through change than discuss with stakeholders on issue of change.
Build-
Build strong team and identify effective leader in company that help to guide and hold
the position for longer time. In order to implement change leader need to build a team how help
to work together and increase business profitability.
Form-
After that leader in company determine values and create strategies for possible change in
firm that is beneficial for business.
Enlist-
leader communicate with other about change, and how to minimized their impact because
without effective communication nothing is going to be possible.
Enable-
They assure that organizational structure and procedure is in aligned and doing according
to plan. Leader provide reward to staff for supporting in process of implementing and also for
adopting it effectively.
Generate-
For example, TESCO wants to improve product quality because of horse meet scandal, so
they create short term goal before implement plan that help to give an idea of victory in first
stage of change.

Sustain-
When they analyse that plan is working, company continuous with change that improve
quality and assure success of business.
Institute-
Organization continuous change because it is the integral part of business culture that
help to grow each and every aspect of business. Workers as well as leaders support towards
implementing change.

Project 2
Introduction to the case study organisation.
Tesco is the most successful and high profile supermarket. It is one of the world's leading
international market. After the incident of Horse scandal, this entity needs to undertake changes
so that quality of commodities can be improved and brand image of enterprise can be enhanced.
However, every enterprise in order to remain competitive in 21st century needs to adapt to the
changes and external components affects the business that is crucial to maintain competitive
advancement (Fragouli and Ibidapo, 2015). It can encompass any planned and unplanned
response to internal and external forces.
Application to force field analysis to determine opposition and support for change.
Force field analysis is method that can be use for discussing, identifying and
documenting the factors that support or oppose a change initiative. This model needs to design to
weigh the driving and restraining forces that can impact the working for an enterprise. It is
crucial model that aids to bring change in management of the enterprise (Coghlan and Shani,
2015). In lewin's model there are forces driving change and this forces restraining it.
This is tool that can be use in any situation to undertake major changes within the
enterprise. In the force field analysis, the change is characterized as state of imbalance between
driving forces and restraining forces. In terms to accomplish the change towards the aim and
objectives the following procedures needs to be conducted as-
 Firstly, an enterprise needs to unfreeze the driving and restraining forces that holds in the
state of quasi equilibrium.
 On the other hand, imbalance is introduces to the forces that enables the change to
undertake place. It can be accomplished with help of increasing the drivers and reducing
the drivers.
 Once the changes are done, it can complete the forces that are brought back into quasi
equilibrium and re-frozen.
Thus, it can be concluded that change in the organisation can be affected in different
ways. For example- a reorganisation, the introduction of new technical advancement, machine,
production or to bring better change in work processes. With the use force field analysis, it
becomes clear that what forces could possibly influence the change. It can be inclusive of

resistant people, inoperative processes and negative attitudes and skills. All these are the
components that might have impact on individual and department of entire enterprise.
Description on different barriers to change and how they influence decision making and
leadership.
Change is one of certainties in work lives. Therefore, change needs to be brought down to
make the entity more efficient and effective (Hughes, 2016). With help of implementing the
changes the enterprise can undertake their activities effectively. Thus, changes are crucial to
undertake innovation that can assist to carry out better performance. Henceforth, the different
barriers to change are defined in following manner as are-
Individual change resistance- The status quo tends to be more comfortable, so the resistance to
new process, strategy or organization stricture almost inevitable (Henderson, Gulati and
Tushman, 2015). Generally, employees fear of changes and this brings out negative environment
at workplace. It can impact the working of the entity at huge aspect.
Lack of communication- successful organizational changes is crucial to undertake business
activities effectively. However, communication is center stage to the both planning and
implementation phase of change management (Harder and et.al., 2015). Communication is one
of the core element that is center to the both planning and implementation phase of change
management.
To set the clear expectations, communicate potential timelines and to report organization
process during the regular intervals. To overcome this barrier, entity needs to outline the
strategies that aids to communicate effectively during the times of intense organizational change.
Lack of strategic direction- communication is key but all the strategy can be unsuccessful if it
lacks the direction. With the help of adoption of right strategy, there can be chances to improve
or getting staff to involve in more productive and disruptive role in change process (Burdet and
Albu-Schäffer, 2014). However, to bring the effective performance it is crucial to come with the
organizational change with proper plan of action. Thus, ineffective planning can hamper the
working and change may have adverse impact.
Cultural barriers- This kind of barrier can affect the productivity and profitability of the
enterprise. However, culture barriers within the enterprise comes with inefficient
communication, inadequate resources etc. In enterprise, each individual has different style of

working and if everyone follows their own style than it bring chaos performance. This is the
major cause that can impact the change and also leads to impact organization performance.
Define how the change accomplished and how success was it.
Organization change management is the strategical framework that aid to manage the
effect of new business, process changes in organization structure or may bring cultural change
within an enterprise. This is term that brings the changes within the organization strategies,
processes, procedures, technologies and culture mainly effect the changes within enterprise. To
implement the changes successfully entity needs to frame strategies that aids to adopt proper
direction. However, no enterprise can survive for longer period without adopting the changes.
Change management defined as systematic approach to deal with transformation of
organization goals, technologies and processes (Váchal and Straková, 2019.). However, the main
aim of change management is to execute the proper plan of action that effective changes, to
assist people to cope up within changes and controlling change. Thus, change can be
accomplished with help of following factors as are-
Develop communication strategy- communication is one of the crucial element that aids to
bring out the changes within the enterprise. It is the core that aids to streamline the operational
performance. Communication strategy is one of the crucial term that aids to define that how the
change with be incrementally communicated and there is need to use of proper communication
channel. It can lead to have positive impact on working of enterprise. Thus, employees to the
enterprise must have better improved communication with one another. This aids to carry out
better work performance and streamlines the all over operations.
Provide effective training- This is helpful as proper training facilities bring better performance
and this helps to enhance brand image of enterprise. Thus, proper training must be given to
undertake changes within enterprise. Thus, Tesco needs to incorporate learning approach as face
to face training session, on the job coaching and mentoring (Váchal and Straková, 2019.). It aids
to bring out the better employee performance and this can assist to both individual employee and
organization at large level. Thus, training method helps to enhance the moral of workers.
Implement support structure- The support structure is crucial to assist employees to
emotionally and practically adjust with changes. Therefore, positive working environment can
aids to carry out organizational activities effectively. However, to assist employees to adjust with
changes the entity needs to implement strategy as mentor ship or open door policy where

employees can ask management the questions about the changes and can discuss there issues.
Thus, better support of managers to the enterprise can aids to bring improved workforce and
leads to gain competitive advancement.
Measure the change process- The change are vital within the enterprise and this helps to carry
out better performance at work. Thus, proper strategy to the enterprise must be formulate and
the changes must be taken accordingly. Therefore, it is responsibility of the enterprise to find out
comparison between actual and planned performance if there is any deviation than corrective
action must be taken. This kind of changes can aid to bring positive impact within the enterprise.
Explain advantages and disadvantages of differ leadership approaches to deal with application of
range of examples.
Effective leaders to enterprise brings better performance to enterprise. They help their co-
workers to advance their skill and develop the strength within an individual (Váchal and
Straková, 2019.). They set the goals and action and work with employees to accomplish it.
Henceforth, leadership approaches defined in following manner as are-
 Authoritarian- This is approach that tell their subordinates what to do and how to do it.
Therefore, leaders has all the information to compete the task and workforce remain
motivated at a premium level. Additionally, authoritarian style has disadvantage is not
that much effective as leaders might not beneficial from other ideas.
 Participative- The participative leaders are those who take participation in problem
solving ideas from one or more employees. Leader is the final authority and their main
tendency to involve workforce in overall decision making process. However, this style is
not appropriate in situation when time is limited problems needs to sort out immediately.
CONCLUSION
Hereby, it can be concluded that change defined as key leadership capability as this
enables entity system to accelerate change initiatives and involve the entire organization in
identifying, implementing, and sustaining important changes to accomplish long-term success.
However, report is based on business activities of Tesco.
Furthermore, report has covered the beneficial aspect of changes that aids to improve the
productivity to enterprise. On the other hand, barriers to changes has been defined to identify the
significant impact on working of enterprise.

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Online
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methodology.net/british-airways-pestel-analysis/>
Kotter’s 8 step Model of Change. 2018. [Online]. Available
through:<https://www.managementstudyguide.com/kotters-8-step-model-of-
change.htm>