Understanding and Leading Change: Impact on Organizational Strategy and Drivers of Change

This report discusses the impacts of change and drivers and how they affect the organizational strategy. It includes PESTLE analyses of Unilever, Tesco, and Morrisons to identify key drivers of change. It also evaluates the impact of change on leadership, team behavior, and individuals, and how the impact of change can be minimized using models for processing change efficiently.

UNIT 17
UNDERSTANDING
AND LEADING
CHANGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introducing the impacts of change and drivers and how they affect the organizational strategy 3
A PEST/SWOT analysis to be undertaken for each case study to identify drivers of.................8
change.........................................................................................................................................8
Brief discussion regarding the force field theory-.....................................................................10
5. The evaluation of the ways in which change will impact leadership, individuals and team
behaviour....................................................................................................................................12
6. Evaluation of the ways by which impact of change will be minimized and application of
models for the purpose of processing change easily..................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Understanding as well as leading change is generally prepares participants particularly to
meet issue as well as problems that normally come with initiating as well as implementation
change. Change is important for success of an organization if it leads and understand in proper
manner. The business should try to change instead that fear of change (Galli, 2018). The change
in an business generally means to modification as well as remodelling that occurs in total
working environment. There are many resources because of which the change happens in an
organization such as change in structure, people, elements and technology change etc. Unilever
is an multinational organization located in London. Tesco is also a multinational store located in
Welwyn Garden City, England. Morrisons is fourth largest chain in the United Kingdom.
The report includes an introduction to drivers as well as impacts of change with how it
generally affects the business strategy. Along with this an brief of the organization such as
Unilever, Tesco and Morrisons. The report also includes PESTLE analyses of each organization
as well as identify the key drivers of change. Moreover, the report also includes analysis of each
business on impact of change as well as it impact on the organization operations and strategies.
The report also highlights how change will affect the leadership, team behaviour and individuals.
Furthermore, the report will also evaluate how impact of the change is reduced as well as
application of the models to generally process in change efficiently.
MAIN BODY
Introducing the impacts of change and drivers and how they affect the organizational strategy
Organisation Changes Drivers of
change
Impact on strategy Impact of
operations
Tesco
1 Tax on large
supermarket
chain has
increased the
price of goods
offered by the
Bank needs to
create and
balance the
money supply of
the nation
The main strategy that is
followed by Tesco is the
cost leadership strategy,
where the supermarket
targets on providing the
customers, product at the
All the
operations of the
company got
highly affected
due to the
increase in taxes.

TESCO. minimum value but due to
the high rate of taxes the
strategy is completely
disrupted and as a result
the company is not able to
provide products at low
prices and has raised its
prices.
The company is
not able to
produce goods at
minimum prices
and thus the
profit margin of
the company is
highly affected.
2 High labour
cost is the most
important
economic
factor that has
impacted
growth of
TESCO.
Government has
set a standard
labour rate in
order to avoid
any kind of
abuse.
Tesco aims at cutting its
costing in every possible
manner and now because
of the standard labour
rates, the company is not
able to cut short its
costing (SPARKS, 2018).
As a result the
operations of the
company are
little disturbed
and the company
is not hiring large
number of
workers
3 Fast delivery of
the goods and
flexible return
policies
definitely going
to increase the
profitability of
the company.
Change of
customer
preferences and
the influence of
comfort life.
The company aims at
providing the best
services but the return and
exchange policies are
lowering the company's
profit generation
The company is
getting more
online orders
than from the
offline
marketing, this is
also demanding
to increase E-
commerce team.
4 Introduction of
RFID
technologies in
stores has
increased the
Long lines at the
billing areas.
This has improvised the
existing strategies of the
company as a lot of work
is now done easily
through these scanners.
This has
increased the
customer base of
the company and
even the

experience of
consumer while
shopping.
customers who
were avoiding
supermarkets
because of this
reason are now
coming to the
markets.
Organisation Changes Drivers of
change
Impact on strategy Impact of
operations
Morrison
1 Brexit being
the most
challenging
political even
that changed
rules and
regulations of
all the
countries.
Anti
establishment
politics,
immigration,
sovereignty
and the
economy
issues
This has a very positive
impact on Morrisons as
the company has now
much greater market
share and concentrates
only on UK.
This particular
thing has
increased the
profitability of
the company
and has made
the company
efficient in its
functioning and
in setting target
market.
2 Oil prices
resulted in
tighter
budgets of
the
consumers.
War between
Russia and
Ukraine
This has a very negative
impact as the high prices
lowered the sales of the
company.
This lowered the
revenue
generation of
the company
and as a result it
will take a good
time for the
company to

bounce back.
3 Growing
concerns
regarding
health of the
consumer.
Change in
customers
pattern of
thinking
This particular change
has lead the company to
make specific changes
related to healthy
products (Cusworth And
et.al., 2022).
It has also
increased the
sales of product
s that are more
healthy in nature
and lowered
down the sale of
other products
which is also
resulting in
losses
sometimes.
4 Investment in
technology
has helped
company to
become more
efficient.
Fast moving
environment
and huge
competition.
This has impacted in a
very positive way for the
company as now the
company is able to make
the billing process fast
and is also able to work
on its strategy of meeting
and updating products as
per daily demands of the
customers by producing
on a large scale (Energy,
2018).
This has lead
the company to
give a good
competition to
the other
companies in
the market and
has also lead the
company to
effectively and
easily manage
all the
operations.
Organisation Changes Drivers of Impact on Impact of

change strategy operations
Unilever
1 Restrictions
while importing
and exporting can
hinder the success
of Unilever.
Government laws This has affected
the strategy of the
company to
export more and
more because of
the least prices of
the company.
This has also
affected the
operations as the
company is now
able to export
only the products
of its own brand
at the least prices
but not the other
brands. This has
affected the
growth of the
company.
2 Higher inflation is
the one such
economy factor
that have major
impact upon the
growth of the
company.
Covid-19 Unilever strategy
is to provide the
goods and
services at the
least price
possible, but due
to the inflation,
the strategies of
the company are
highly affected
and as a result the
company has to
raise its prices.
This has affected
the sales of the
company and the
profit making of
the company. Not
just this the
company's image
have also been
affected as it was
mainly known for
the cheap priced
products.
3 Company also
expresses a desire
Increasing
interest of
The company
deals in beauty
As the result the
company has

to change and
help people to
feel and look
good.
personal care. car and personal
care products, this
change has a
positive impact
on the company
as the company is
already dealing in
such products
(Sari, 2019).
become a leader
of beauty soaps
and is getting
immense growth
in the market.
4 Company
emphasized on
developing the
methods of digital
marketing in
terms of the
technological
methods.
High usage of
digital platforms
by the youth
This holds good
for the company
as Unilever
believes in
delivering
everything at the
least price
possible, the
digital
advertisements
are the cheapest
source of
advertising and is
also very
effective for the
company (Reza,
2020).
This has affected
the company's
operations as the
main sales of the
company are
increased and
there is also high
need of new
hiring in order to
manage the
operations.
A PEST/SWOT analysis to be undertaken for each case study to identify drivers of
change.
PESTEL analysis

The PESTEL analysis is an study of key external factors that is political, economical,
sociological, technological legal as well as environmental that generally influence a company
(Alanzi 2018). PESTEL analysis can be used in different range of various scenarios as well as
can also guide senior managers and professional in the strategic decision-making. It is important
because it generally provides warning of threat as well as also an opportunity. It also encourages
the business to consider external environment under which they usually operated. By these tools
the managers can get to know about the external environment where the business is run or want
to start business. By these factors the organization get more benefits as they know the
environment of the country in case when the company is going to expand their business in
another country.
Particulars Morrison TESCO Unilever
POLITICAL 1)Brexit being the
most challenging
political even that
changed rules and
regulations of all the
countries.
2)Huge impact on
Morrison due to the
political legislations.
1) Import duties in
ASIA and CHINA
affected exports of
goods to the another
country.
2) Tax on large
supermarket chain has
increased the price of
goods offered by the
TESCO.
1) the laws of
European commission
and the food and drug
administration is
needed to be complied
by the Unilever.
2) Restrictions while
importing and
exporting can hinder
the success of Unilever
(Cheng, 2021).
ECONOMICAL 1) Oil prices resulted
in tighter budgets of
the consumers.
2) Brexit caused a
significant fluctuation
on UK currency
1) High labour cost is
the most important
economic factor that
has impacted growth
of TESCO.
2) COST, PEICE and
PROFITS is another
factors that are
1) To provide cheaper
quality goods and
affordable goods are
first preference of
Unilever.
2) higher inflation is
the one such economy
factor that have major

counted under the
economic factors.
impact upon the
growth of the
company.
SOCIAL 1) Growing concerns
regarding health of the
consumer.
2) Raising age
population in the
country also offered
various business
opportunities.
1) TESCO should
consider changing
habits patterns of the
consumer and their
health issues.
2) Fast delivery of the
goods and flexible
return policies
definitely going to
increase the
profitability of the
company (Adamyk,
2019).
1) The strong brand
image has been
because of the social
factors that Unilever
considers.
2) Company also
expresses a desire to
change and help
people to feel and look
good.
TECHNOLOGICAL 1) Investment in
technology has helped
company to become
more efficient.
2) Continuous
improvement in
research and
development to build
software systems.
1) Introduction of
RFID technologies in
stores has increased
the experience of
consumer while
shopping.
2) Own mobile
payment system
known as PayQwid is
another such a
technique that
increased the
experience of the
consumer.
1) Company
emphasized on
developing the
methods of digital
marketing in terms of
the technological
methods.
2) Unilever also uses
higher level of
automations to come
ahead in competition
than other competitors.

Brief discussion regarding the force field theory-
The force field theory model is model by Lewin- Field theory that generates two forces the first
force is the driving force while the other force is said to be restraining force. It has been said by
Lewin that the organization should maintain both in the organization. This is needed to drive
changes that is going to strengthen the organization position (Swanson and Creed, 2016).
The another thing that has been describes in the force field theory is the same as the
newton's theory of first law of motion. This has been addressed that the body remains in a state
unless it is acted upon by the external force and this has been same case for the organization.
This theory will be applied in the organization by using management tool that allows
organization to look for the forces that demands changes and also visualizing that are against the
proposal of change(Yang, and et.al., 2021). TESCO has started producing food products for the
people that are diet conscious. This innovation in food services was adopted by the company
after taking in concerns the obesity issues that are raising. Unilever also has adopted higher level
of automation in the company for increasing the consumer base and attracting larger profits in
market by providing quick and fast services.
Discussing the resistant forces and driving forces and giving them numbers 1-5 depending upon
the strength of the force.
Resistant force- Resistant forces are those forces that stops organization for the changes that are
needed in the company.
Resistant forces Numbers
Dependence 4
Uncertainty 3
Trust in administration 2
Group resistance 5
Concern over personal loss 5
Driving force- driving forces are those forces that forces company to change its internal
environment and provide creative products and services in the market.

Driving forces Numbers
Marketplace 4
Technologies 4
Labour markets 3
People problems 3
Internal forces 4
Discussing ways by which the company can reduce the resisting forces.
The organization can reduce resisting to change by selecting appropriate strategies in the
organization (Baulcomb, 2016). The strategies are as follows-
Support and facilitation- This technique helps organization to let out fear of employees that can
be because of any number of reasons. Employees look for the emotional support that can be
facilitated by the organization.
Agreement and negotiations- this technique basically involves bargaining with the individuals
that are not ready for the change because of the various aspects that are the need of the
organization.
Facilitating involvement and participation- the participation and involvement of the workers
helps organization to develop the habit of change. The staff, Members and all the workers should
be involved in the process of change and should be allowed to express their emotions in front of
their managers.
Discussing how organization can achieve the objectives by reducing barriers while implementing
changes-
The overall objective of the organization is to achieve higher rates of profits In the
market. Developing habit that is ready for changes helps organization to grow both internally and
externally. The barriers are the ones that stops organization to change and grow, but overcoming
with those barriers helps organization to grow at higher speed ultimately aiming the profitability
of the company. The resistant forces are the biggest barriers, but this can be avoided by proper
involvement of all the co-worker in the organization. Further, companies like TESCO,

UNILEVER always are ready for the change because of their ability of facilitating support in the
organization.
5. The evaluation of the ways in which change will impact leadership, individuals and team
behaviour.
Change impacts the organization in a lot of ways in particular (Galli., 2018). Obviously it
is something that affects mostly all the aspects of an organization or company in particular.
Similarly, the major resources and one of the most necessary resources of the organization are
the human resources in particular. Also, they are considered to be the one of the most affected or
impacted aspects of the company due to change in particular.
Change
Political
changes
and
economic
changes.
Intern
al/
extern
al
Both
of the
factors
are
extern
al.
Impact on leadership
behaviour
Management of
change should be
proper (Raza. Khan.
and Mujtaba., 2018).
And the management
depends upon the
person who is doing
so, which basically
indicates towards the
leaders. The leader is
required to be
efficient and also be
proficient and be
well- versed in
whatever he or she is
doing. And whatever
decisions are
particularly taken by
them. At times.
Changes can be very
consistent or hard to
adapt in particular,
this makes the stress
levels of the leader
increase. This also
hinders the
performance of the
leader which further
hinders the overall
performance of the
Impact on
team/
departmental
behaviour
These also
impact the
overall team
or the
department
behaviours
as well (El
Khouly. and
Fadl., 2016).
As these
changes
impact the
individuals
which are
obviously a
part of the
team or a
department
in particular.
Obviously
the teams are
affected as
well.
Impact on
individual
behaviour
Hence, the
individuals that
are in the
internal
environment of
the organization
and also the
individuals that
are in the
external
environment of
the organization,
both are
impacted by the
change on a
major basis in
particular
(Mustafa.
Nakov. and
Islami., 2019).
Mainly the
employees that
are working
within the
organization.
This totally
depends on the
way the change
is particularly
measures
to minimise
negative
impacts
The
measures
that should
be taken
should
particularly
involve
aspects
such as
better
market
research.
Better
planning
for the
enhanceme
nt of the
employees
of the
company.
Providing
training for
improving
the quality
of
leadership
in the
organizatio

employees and the
organization. At
times, political
changes may impact
the way the power is
particularly shared
within the
organization, this
may increase or
decrease the
responsibility and
pressure over the
leaders, and impact
their performance
accordingly. The
leaders of the
company also start
working more
positively due to
positive change.
Especially at the time
of change the leaders
try to become more
efficient mainly in
the case of making
appropriate
decisions. In the
company Tesco, due
to changes the
leadership has
enhanced which has
further improved the
performance of the
company which will
further support in
sustaining the
organization in the
present complex
business
environment. In case
of Morrison's, the
company has
particularly faced a
lot of changes due to
Brexit. This has
made the leaders of
managed. The
change that is
managed poorly
will impact
negatively and
the change that is
managed in a
right way will
obviously have a
positive impact.
The change that
is poorly
managed will
specifically
result in
situations such as
increase in the
levels of stress
among the
employees which
will further
hinder their
productivity in
particular, which
will also have a
negative impact
on the
competitive
advantage of the
company. This
will also increase
resistance of the
employees
towards changes
and also the
uncertainty
levels among
employees. And
vice versa will
happen if change
is managed
properly. In the
retail companies,
such as, Tesco,
Morrison's and
Unilever, the
ns in
particular.

the company more
stressful as the
company follows an
opportunist style. As
of Unilever, the
departments are
distributed widely
and same with the
leaders, due to major
changes the easy
structure of the
company makes it
easier for the leaders
to give the best
results. It also
improves the
performance of the
leaders and increase
the productivity
levels as well.
customers and
the employees
both impact the
working majorly.
6. Evaluation of the ways by which impact of change will be minimized and application of
models for the purpose of processing change easily.
Type of Change
Economic and political
changes. These are mainly
external changes in
particular.
Current impact on the company
These changes are particularly
impacting the major sectors of
the company and also the most
important resources. Like the
human resources, the
leadership techniques and the
team or the departmental
behaviours in particular.
Desired impact
The desired impact of this
change is to be positive, and
to make the leadership
methods more efficient. And
also, the team working skills
stronger.
Lewin's change model.
This model is the most appropriate and the most suitable as per the changes that are made
in the external environment (Burnes., 2020). The ways through which the Lewin's model in
particular will help is through the changes that are required in the organizations that have faced
the changes that were in their external environment in particular. This will help in improvement
in the levels of productivity of the employees in particular. This will also help or support the

companies in understanding the areas in which they need to work and the aspects that are
necessary. This will help the company to develop better and more efficient strategies for their
employees which will enhance the overall productivity of the company and the company will
also gain competitive advantage in particular.
Unfreeze Change Freeze
 Communication.
 Employee motivation
by rewards.
 Negative motivation by
punishing or taking any
kinds of penalties.
 Develop strategies for
adaption of changes.
 Communicate the
strategies to the
employees and other
stakeholders too.
 Give rewards for
enhancement of
encouragement and
motivation.
 Continue to conduct
market research.
 Implement training
techniques for leaders.
 Keep on
communicating and
interacting with the
employees
consistently.
CONCLUSION
From the above report it has been concluded that change is very important for
organization. Innovation and change make the business operation more effective as well as
efficient. The above report is an study of Unilever, Tesco and Morrisons. The report has give an
brief introduction to drivers and impact of change as along with it impact on organizational
strategy. The report also illustrated about the organization. Moreover, the report also includes
PESTLE analysis of each case to generally identify the drivers of change. Furthermore, the
report also includes an analysis of organization impacts of change as well as it impact upon
company operation and strategy. The report also discuss how change will affect team behaviour,
individual and leadership. Along with this report also evaluate impact of change can minimised
and applicants models to process change efficiently.

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