Understanding and Leading Change

Understanding and Leading
Change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PESTLE & SWOT Analysis........................................................................................................3
Examples Showcasing and Comparing Impact on Change within Business Organisations.......6
Drivers of Change and Impact of Organisational Change on Leadership, Team and Individual
Behaviours...................................................................................................................................7
Minimise Negative Impact of Organisational Change................................................................8
Barriers to changes influence leadership’s decision making.......................................................9
Range of leadership approaches to change initiative.................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Organisational change is the business process through which growth, transformation or
decline occurs within a business organisation. Organisational change is a natural process as all
the operations and functions of all business organisational operating in varying industries across
the world are required to change with time (Elsmore, 2017). This report assesses organisational
changes within the retail business organisation Tesco. Tesco is a global retail business
organisation that operates within the retail industries and specialises in selling general
merchandises and groceries to its customers. Tesco was founded in 1919, an astonishing 101
years ago and currently operates from its headquarters in Hertfordshire, UK. Having operated
within the retail industries of UK for such a prolonged period of time in a successful manner, has
presented the operations of Tesco with numerous opportunities to grow and expand the business
operations to global markets in an effort to diversify their business operations and increase their
operational productivity, profitability, customer base and market share. Tesco currently operates
close to 6,800 distinct retail establishments in 11 different countries around the world and
employees close to half a million different individuals at various positions within its hierarchical
structure in order to successfully conduct its various operations.
MAIN BODY
PESTLE & SWOT Analysis
PESTLE Analysis
In order to assess the external factors that can have an impact on the various operations of
a business organisation such as Tesco and drive organisational change, a PESTLE analysis can
be conducted. PESTLE analysis showcases the various political, economical, social,
technological, legal and environmental factors that are present within the external environment
of Tesco which can have an impact and drive organisational change within Tesco.
Political Factors: These are political factors present in the external environments of Tesco that
can influence, impact the operations of Tesco and drive organisational change within. The most
prevalent political factor that impact the operations of Tesco relates to Brexit. The current
instability in UK owing to Brexit can have an immense impact on the operations of Tesco. As the
exact changes to policies and regulations post Brexit still haven't been made clear to the public
and are debated on by economists and analysts. Brexit can have a positive impact on the
operations of Tesco within the retail industries of UK as it would inevitably involve the

switching of current complex and opaque international trading laws and regulation with simpler,
transparent ones that would increase the efficiency with which the international trading
operations of Tesco are conducted within the retail industries of UK.
Economical Factors: There are also present various economic factors that can influence and
impact the operations of Tesco within the retail markets of UK. The most significant economical
factor to impact the operations of Tesco relates to the decrease in the corporate taxes announced
by the government of UK (Burnes, Hughes and By, 2018). The UK government has recently
announced a decrease in the amount of corporate tax charged on a business's profits generated,
from 19% to 18% that is to be applied from April 2020 onwards. This has an immensely positive
impact on the overall profitability of Tesco within the retail markets of UK as they would be able
to generate greater amounts of profits from April onwards even if their number of customers
serviced within the retail markets of UK stays the same as they would now have to effectively
pay less taxes to the UK government.
Social Factors: There are also present various social factors in the external environment of
Tesco that can massively influence its operations and functions. The current social trend relating
to customers in the retail markets of UK consistently preferring and choosing to conduct their
shopping operations through digital stores on the internet, has a massively positive impact on the
overall productivity, profitability, customer base and market share of Tesco within the retail
markets of UK. Through this social trend, Tesco has the opportunity to effectively increase their
productivity, profitability, customer base and market share by servicing retail customers from
their own digital stores on the internet and capture a new market segment that is captured within
the retail markets of UK.
Technological Factors: There are also various technological factors that can immensely impact
the operations and functions of Tesco. Technological factors such as new and improved
manufacturing machines and equipment can have an immensely positive impact on Tesco's
operational performance, efficiency, productivity, profitability, customer base and market share
within the retail markets of UK (Rosenbaum, More and Steane, 2018). Should Tesco's leadership
and management choose to install and upgrade their existing manufacturing equipments and
machine within modern technological solutions which are able to produce Tesco's products at
increased rate with efficiency while also consuming less input power, then Tesco can effectively