Understanding and Leading Change: A Case Study of Tesco and Microsoft

This case study analyzes the drivers of change in Tesco and Microsoft, including SWOT and PESTEL analysis, and evaluates the impact on leadership and overall organization. It also recommends effective planning for change and evaluates leadership approaches and change models.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION....................................................................................................................3
PART 1......................................................................................................................................3
Overview of companies and type of change they went through............................................3
SWOT and PESTEL analysis to identify internal and external drivers of change................4
Comparison of how drivers of change affected each company’s leadership and overall
organization............................................................................................................................9
Evaluation of long-term implication of drivers of change within each company..................9
Conclusion and recommendations for effective planning for change..................................10
PART 2....................................................................................................................................12
Brief introduction of case study company...........................................................................12
Application of force field analysis and how they affect decision making. Recommendation
for course of actions which will help in achieving organizational objective with evaluation
of use of force field analysis in meeting targets...................................................................12
Evaluation of leadership approaches and models of change management to deal with
change with examples..........................................................................................................14
CONCLUSION.......................................................................................................................15
REFERENCES.......................................................................................................................16

INTRODUCTION
Leadership is the ability of an individual to inspire and evaluate their fellow members
through which they can be guided towards right direction and focus on meeting
organizational objective (Alavi and Gill, 2017). Organizational strategy is the course of
action which supports business in managing their resources through which continuous
business activities can be performed. The change catalyst for an organisation can belong to
internal and external business environment where leadership approaches, management
operations, business strategies and functions can be affected. Tesco is a largest retail brand
which has been operating all around the globe. The company is offering grocery through their
supermarket chain. Microsoft is a technology company which is offering their eservices all
around the globe. This report will discuss leadership and management approaches in 2
sections where Part 1 will give overview of different companies and the change they had
undergone through. Further, Part 1 will outline internal and external drivers of change with
appropriate framework which will be followed by how drivers of change affected companies
and their leadership approaches. Lastly, Part 1 will be concluded with suggestions which can
help selected organization for effectively planning for change. In Part2, the paper will outline
force field analysis and will recommend strategy which will help in achieving organizational
objectives. Lastly, this section will evaluate leadership approaches and change models.
PART 1
Overview of companies and type of change they went through
Organizational change is the action of company where they alter major components
and functions of business, such as-culture, technology, infrastructure and their internal
process (Boyatzis and Cavanagh, 2018). Change in an organization can be driven through
internal and external factors and the drivers of change can create positive as well as negative
impact on business and its profitability. Some of the examples of impact of change on
business strategy and their operations of different companies are outlined underneath:
Tesco- Tesco is one of the largest multinational food retail or supermarket company
which is operating across the globe. The change process of Tesco was based on restructuring
the organizational structure and drive innovative approaches in business through which they
can retain their competitive position within the industry. The change process of Tesco
introduced online shopping page where customers can click and collect products and also
introduced self-checkouts systems through which customers can purchase and do self-

checkout by scanning the bar code of the products which have been purchased by them
(Tesco announces huge change, 2021). Such change will help organization in attracting
customers where they can easily shop for products from their website/ application through
which the company can retain their customers in such dynamic business environment.
Microsoft- Microsoft is an American Technology company which offers consumer
electronics, personal computer, computer software and other related services. The company
has been undergone through successfully change management initiative which enhanced the
performance and productivity of business. Satya Nadella took control of managerial
operations of Microsoft in 2014 where he analysed lack of communication and high
competition among different departments of the company (Microsoft CEO Gears the
Company for Change, 2014). In order to resolve the issues among different departments and
to synchronize the business activities of each department of the organization, he planned to
bring change in organization structure of the company. In order to bring change, internal
divisions in different departments were developed which supported in encouraging
employees to collectively work towards the achievement of planned goals.
SWOT and PESTEL analysis to identify internal and external drivers of change
SWOT analysis
Tesco: In context of Tesco, a comprehensive study of SWOT analysis of company is
discussed below:
STRENGTHS
 Innovation- Tesco implemented new
techniques throughout the global
pandemic, such as optimising the
delivery system to meet customer
expectations which resulted in higher
sale of products and incline in profit
margin. This has been a source of
bringing change in the organization
where a company can adopt innovative
strategy through which they can
generate higher revenues.
 Strong performance amid pandemic-
WEAKNESS
 Shortage of products- Tesco face
shortage of products which has been a
weakness for organization. The inability
of organisation to manage their products
and mange inventory has been a
weakness for the organization.
Therefore, it also creates an impact on
the ability of an organization to meet.

Despite the crisis, Tesco has managed to
increase its market share by providing
their products and services via online
platforms in order to satisfy consumer
expectations and increase customer
engagement and retention.
OPPORTUNITIES
 Emergence of online market- Tesco
could take advantage of the changing
market or consumer trend and emphasis
on establishing a strong business
through online platform in order to
attract a larger number of consumers and
get their attention (Donnelly, 2020).
This will bring advantage to the
company where they can bring change
and adapt strategies to operate their
business in online market through which
profitability of business can be
enhanced.
THREATS
 Competitive industry- Tesco may
face significant obstacles and risks from
competitors such as ASDA, Morrisons,
Walmart, Aldi, Lidl and others. Such
competitive business environment can
create a detrimental impact on the
company's market share.
Microsoft
STRENGTHS
 Leading software company- Microsoft is
a global market leader in software
technology company and is world’s
largest developer which is serving all
around the globe. Due to their major
involvement in the industry and overall
economy, the company has been one of
the leading software companies which can
offer different products and service
through which consumer demands and
WEAKNESS
 Cybercrime theft- The incline in
cybercrime has made business face
various vulnerable threats and this has
been weakness for Microsoft as the
company is not able to protect the data
of their employees and consumer which
acts as weakness for the organization
(SWOT Analysis of Microsoft, 2021).

business profitability can be met.
 Vast market reach- Microsoft is
operating in various countries and this
offers them vast market reach through
which they connect with greater number
of customers. The international presence
of the company supports the software
company in connecting with customers at
larger level.
OPPORTUNITY
 Innovation and AI- Microsoft can gain
various opportunities through investing
in AI and more innovative areas such as
game technology. Such befits will be
helpful in enhancing business
profitability as this will be helpful in
adopting new and innovative approaches
through which an organization can
sustain for longer period and make
progress in creating a strong and loyal
customer base.
THREATS
Aggressive competition- Microsoft is
facing high competition with companies,
such as- Google and Apple (Doppelt and
McDonough, 2017). These rivalry
companies possess huge threat for the
company which can adversely affect profit
margin of Microsoft.
PESTEL analysis
Tesco: In context of Tesco, a detailed PESTEL analysis is addressed underneath:
Political factors- The political factors, such as- tax rates, acts of legislation, political
stability and financial instability are some of the political factors which affects the
performance of Tesco. Tesco has been doing business in a more stable political climate
(Chng and Mårtensson, 2020). The corporation can successfully function under existing and
future regulations and change its business, marketing, and business strategies to meet political
demands.
Economic factors- Some of the economic factors which influence Tesco are-
leverage cost, demand, profit and prices are responsible to create an impact on the

profitability and sustainability of companies within the industry and international
marketplace. Due to the worldwide pandemic, people's income has been negatively impacted,
resulting in lower spending and expensing possibilities, as well as increased consumer
switching to alternative less expensive and economical brands which has been negatively
influencing profit margin of Tesco (Eoyang and Holladay, 2020). Economic considerations
such as rising labour costs have had an impact on the operations and profitability of Tesco.
Social factors- Due to different social changes, trends and consumer demands, these
are some of the socio-cultural factors which can influence the revenues and customer base of
Tesco. Tesco will consider different form of social elements as it will be able to meet
customer demands based on the region or state in which it operates, resulting in increased
customer engagement and retention.
Technological factors- Technological factors has been a major factor for driving
opportunities for business growth and opportunities. In case of Tesco, the company
introduced loyalty cards and self-checkout systems through which greater number of
customers can be attracted. Such drivers and upgradation in technology has driven positive
change in the company through which they can generate higher revenues and enhance their
brand image in the industry.
Environmental factors- Tesco is concerned about the rise in environmental issues as
it has placed pressure on management which has affected operations. Tesco announced a
number of steps to deal with the issue, the majority of which focused on lowering the usage
of plastic and minimising plastic waste. By the year 2020, the company aimed to reduce the
usage of plastic packaging which supported the organization in brining successful change by
making use of paper or jute bags through which plastic consumption was reduced.
Legal factors- The legal factors such as- government policies and legislations, Food
Retailing Commission (FRC) are some of the legal factors which influence Tesco’s
performance (PESTLE Analysis for Tesco, 2014). Tesco is adversely affected by government
laws and regulations. The corporation has seen several failures and disputes as a result of
complaints of misleading customers. The company cannot also partner with a rival of the
same size, since this would compromise the company's ability to maintain a competitive
business environment.
Microsoft

Political factors- The political factors, such as- political stability and incline
governmental support for automation drives opportunity for business and profitability of the
business. The company also gathered retention of government officials by their antitrust
related issues (Gregory and et.al, 2019). In the European market, while operating under
monopolist organization, this can cause low customer’s profile and create more difficulties
for them.
Economic factors- The economic factors, such as- economic stability of developed
countries, high growth of developing countries and disposable income of middle-class
families bring opportunities for Microsoft to manage their sales, revenues and portability of
the organization in highly dynamic and competitive industry (Microsoft Corporation’s
PESTEL/PESTLE Analysis, 2017). Other economic factors are- GDP, disposable income and
many other factors are also responsible for influencing the performance of Microsoft.
Social factors-. Lack of innovation in business practices can create huge impact on
business profitability where Microsoft can focus on introducing smart phones through which
they can increase their sales and maximise profit margin.
Technological factors- Microsoft is technological innovation company which
introduced operating systems (Heinz and Fleming, 2019). The rapid adoption of technology,
incline in volume of online transactions can bring opportunity as well as threat for Microsoft.
Whereas, the in cline in automation business will bring opportunity for Microsoft through
which they can generate higher revenues and maximize the profitability of the venture.
Environmental factors- Some of the environmental factors, such as incline in
preference of green products, focus on sustainability and more use of recycled products will
be helpful for Microsoft for making an effort towards the betterment of society and
environment which will also enhance the customer base and brand image of the company.
The influence of ecological issues due to hardware and software of customers has been
rapidly increasing which are observed by Microsoft.
Legal factors- As Microsoft is operating in various countries, this can make the
company face various legal issues and actions which can hamper performance and overall
productivity of an organization. In case of Microsoft, the company has been facing various
issues and lawsuits due to their discrimination and harassment in workplace and factors
which created a negative organisational culture.

Comparison of how drivers of change affected each company’s leadership and overall
organization
Tesco Microsoft
Change is an essential part of the growth of
every company for their growth and
development. There is a perpendicular
impact on the company’s team efficiency
and productivity (Hughes, 2016). The
change that Tesco has inhibited has brought
a highly positive impacted and enhanced the
operations, leaderships, team work,
individual and overall efficiency of the
organisation. Moreover, internal and
external factors supported business in
adopting new techniques and changes which
can be incorporated through effective
leadership qualities and management. By
bringing self-checkout, this supported the
organization in attracting customer attention
and create a strong customer base through
which profitability and competitive position
of company can be strengthened.
With the powerful and effective leadership
traits of Satya Nadella, Microsoft went
through successful change which supported
the brand in avoiding clashes in
organizational culture and enhanced
employee collaboration among different
department. Different internal and external
forces help in understanding the demands of
employees and customers at internal and
external level through which successful
restricting change was driven. By bringing
the change through restricting the
organization, this supported Microsoft in
enhance the flow of information by
developing communication skills within
different department through which their
performance was improved.
Evaluation of long-term implication of drivers of change within each company
Tesco Microsoft
The implementation of every driver in any
company brings new changes, those changes
can be in favour or in some cases not. In the
case of TESCO, the implication of drivers
for long term depends on the internal and
external factors of the company (Kilu and
et.al, 2020). The internal factors. Innovation
& business development opportunities
As per the long-term implication of change
in Microsoft can be seen through
collaboration and enhanced communication
among different departments which helps
the organization in creating synergy and
meeting organizational objectives. The
long-term implication of technological
advancement shas been supporting the

impacts positively at the same time the
increase in competition can hamper business
growth of Tesco. The company will be
driving innovative approaches and will
bring change in their technological activities
which will be helpful in creating a positive
long-term impact. This further will assist
Tesco in meeting customer demands
through which they can retain higher
number of customers and share right
direction to employees which will boost
tehri motivation level and retain greater
number of employees with the brand for
longer period (Gaubatz and Ensminger,
2017). Therefore, by bringing the change I
checkout systems, where customers can
make self-checkouts, the adoption of such
technology will support Tesco in making
proper use of development through which
business can sustain in the industry for
longer period.
company in generating higher revenues
where the brand is also following measures
through which they can meet their
responsibilities towards environment as
well.
Conclusion and recommendations for effective planning for change
From the above stated information, it can be stated that business environment is the
bubble which has been created with internal and external environment factors. Such factors
are responsible to create an impact which can make an organization bring change in their
approaches and operations. Change is the catalyst for an organization to develop or can
hamper their operations. Therefore, both the companies (Tesco and Microsoft) considered in
the report have been undergone through successful change which supported the companies in
enhancing business performance and increasing profitability of the companies.
Recommendations

Some of the suggestions which can be followed for effective planning of change are
listed below:
 Offer training and development opportunities- Through offering training and development
opportunities, this can help an organisation in enhancing employee skills and competencies
which will support in enhancing their performance (Lawrence, 2015). Tesco must evaluate
the training and development opportunities which can be helpful in driving change in the
organization. In case of Tesco, the company can put an information paper stick near to the
self-checkout systems, through which their customers can easily make purchased and
checkout from their store. The company must also offer training and development
opportunities for their employees as well which will be helpful in assisting customers
through which customer engagement and retention can be increased.
 Foster effective communication- Though building effective communication, this will
support Microsoft in bringing clarity for the needs to change within an organization through
which all employees can understand organizational values and objectives. Such clear
communication will assist Microsoft in maintaining positive organizational culture where
employees are aware of their roles and responsibilities and can focus on meeting the
planned targets through which change can be successfully driven in an organization.

PART 2
Brief introduction of case study company
Tesco is a British international grocery merchandiser which has been based in
England. Tesco is the third largest retail company which was started by Jack Cohen in the
year 1919 in east London. The company is currently operating with various subsidiary
companies, such as- Tesco Mobile, Tesco Bank, Tesco Ireland, Booker Group, Budgens and
many more (Tesco website, 2022). Tesco expanded their business ay global level since 1990s
where they are operating in around 11 countries. The company is operating in various
domains, such as- retailing of books, clothing, furniture, toys, petrol, software, electronics,
telecom services, internet services and financial services. Tesco is performing their
operations in UK, Ireland, Hungary, Czech Republic and Slovakia by offering their products
and services through supermarket, hypermarket, superstore and convenience shop.
Application of force field analysis and how they affect decision making. Recommendation
for course of actions which will help in achieving organizational objective with evaluation of
use of force field analysis in meeting targets
Barriers
Some of the barriers to change or restraining forces which has been faced by Tesco
are addressed below:
 Lack of communication- This has been one of the major concerns of Tesco as the
company have been facing various barriers in proposing a change in the organisation. In
relation to Tesco, this has created an adverse impact on the employee engagement and
interest in managerial activities (Nelson-Brantley and et.al, 2018). Therefore, due to poor
communication, such restraining factors to change has been a major concern for decision
making and leadership activities of an organization.
 Organizational culture- The working scenario of any organization creates a huge impact
on the employee performance, engagement and in overall organizational productivity.
Therefore, the restraining force to change can bring chaos to the work place. This will
create barrier for Tesco and will create an adverse impact on the values, beliefs,
assumptions and ethics of the company. Such restraining forces to change are responsible
to hamper the successfully change initiation strategy.
Force field analysis

Force field analysis is a framework which is used by an organization to calculate
proposed change. This framework was proposed by Kurt Lewin which is used to evaluate the
pressure which exist for and against to change (Maccoby, 2015). This approach is based on
driving and restraining forces, here these forces define how an organization drive towards
change and how change is restrained in any company. This framework is helpful in forming
decisions as driving and restraining forces for change can be evaluated which can support in
forming decisions (Mackey and et.al, 2015). The driving and restraining forces are the factors
which are responsible to bring change to the decisions of an organization. Due to the
restraining factors, the organization needs to reconsider their decisions which can make
business face challenges. In context of Tesco, a study of force field analysis, in relation to
Tesco is addressed below:
Driving forces- The firm employs over 50,000 people worldwide who play a crucial
role in achieving the company's goals. Tesco's Club Card, experience in the United States,
Japan and Europe, as well as a $2.3 trillion investment in India's economy, cultural awareness
of alliance partners, a new version of the Club Card in India, THL 12 megastores, and a
coalition to implement change are some of the driving forces that help Tesco make the
necessary changes. Tesco brough self-checkouts systems and offered training and
development to their employees and promoted it through different mediums through which
they can attract greater number of customers and maximize business profitability.
Restraining forces- One of the most important variables in opposing strategy change
is past failures. As a result, stakeholders and Indian trade rules which create a barrier for
continuous operations and restrict change in the organisation are some of the other reasons
that oppose change. The lack of employee interest and participation, financial resources and
government policies are some of the restraining forces which can restrict the decisions of
Tesco in bringing such change to their systems.
Recommendations
Through force field analysis, some of strategies which can be used for achieving the
organizational objectives are explained underneath:
 Developing innovative strategies- The company must formulate and implement new
ways for implementing change that will assist to improve the company's brand image and
competitive position in the industry (Nguyen and et.al, 2019). In the case of Tesco, the
company must develop unique methods to retain its competitive position in the industry,

as well as to effectively manage the competitive business environment. The innovative
strategies of developing self-checkout systems and click and collect products will be
helpful in maintain the driving change successfully through which the competitive position
of company can be maintained in dynamic business environment.
 Creating targets and sharing them- In the case of Tesco Plc, the company must
recognize and define the organisational objectives that must be met and they must be
properly communicated to the human capital so that the entire organisation can work
together to achieve those goals. Through developing and communicating the targets will
be helpful for Tesco in driving their employees to accept change through which
successful change strategies can be driven in the organization for better performance and
competitiveness of the company.
Evaluation of leadership approaches and models of change management to deal with change
with examples
Leadership approaches
Situational leadership- Situational leadership is an adaptable leadership style that
encourages leaders to grow their employees and their workforce. This leadership style is
more adaptable and helps a company meet shifting demand (NHS England, 2017). In terms
of Tesco, by adopting various strategies and approaches of self-checkouts and click and
collect products will be managed with the help of situational leadership through which Tesco
can manage to face the competition within dynamic and complex business environment
which keeps on rapidly changing.
 Advantages- This leadership style aids in the development of a favourable working
environment in which employee motivation and performance standards may be
maintained. This leadership technique is also beneficial in raising leaders' awareness
which increases their productivity.
 Disadvantages- For some leaders, this leadership style may not provide accurate and
relevant information because they may be unable to generate acceptable responses in
specific situations, which might hinder their capacity to achieve corporate goals. This
leadership skill also creates corporate dependency, which leads to increased
dependence on the leader. This is a serious concern since it will result in poor
organisational performance and inability to meet objectives.
Models of change management

Lewin change management model
Kurt Lewin introduced the Lewin changer management model in 1951 and it is a
three-stage change management approach that includes unfreeze, change and refreeze stages
which offers a basic and simple knowledge of how change happens. The following are the
three stages of the Lewin Change Management model in relation to Tesco:
Stage 1- Unfreeze: This is the first step of the change management model and it is one
of the most key aspects of the overall model. This phase includes driving people out of their
comfort zones to increase their awareness and desire to accept and implement change (Pautz,
2016). In this stage, Tesco will increase awareness of the need for change in their
organization and will motivate their employees to accept the required change. This stage also
establishes the importance of communication and people's participation in the transformation
process.
Stage 2- Change: This is the second stage of the change management model; the
change strategy of Tesco will be put into action and acceptance of the change is required. In
this stage, Tesco will focus on detailed planning, clear communication and encouragement of
others to support the change.
Stage 3- Refreeze: The state of equilibrium can be established at this step of the
change management model. Management accepts or internalises the change at this point and
new connections are formed (Thompson, 2016). In this stage, Tesco will focus on rewarding
and acknowledging their employees which will aid in reinforcing the changed working
practises and will also reinforce new change successfully.
CONCLUSION
According to the project report, it may be concluded that there are different kinds of
change drivers: internal and external variables. As can be seen, there are a variety of
leadership techniques and change management models that may assist organisations in
understanding and implementing the necessary change in order to improve organisational
efficiency and production. It can be observed that change can be driven through effective and
systematic planning through which an organization can bring required change and
successfully maintain their position within industry.

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Online
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