Understanding and Leading Change: PEST Analysis and Impact on Organizational Strategy

This report analyzes the impact of change on organizational strategy through PEST analysis of Tesco, Morrisons, and Unilever. It discusses the drivers of change and their impact on operations, as well as a model change for effective implementation. The report includes conducting PEST analysis for each case study to identify key drivers, evaluating ways under which change will impact leadership, individuals as well as team behaviour, discussing the intended change as well as drivers for the change, and performing the change model to understand how the change will implement and help the firm.

UNDERSTANDING AND
LEADING CHANGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
Conducting PEST analysis for each case study to identify key drivers:......................................3
Introducing the impacts of change and drivers and how they affect the organizational strategy 6
LO2................................................................................................................................................11
The evaluation of ways under which change will impact leadership, individuals as well as
team behaviour...........................................................................................................................11
LO3................................................................................................................................................15
Brief on force field theory.........................................................................................................15
Examples of real changes that are being introduced by the organization..................................15
Discussing different ways through which the organizations can also reduce the resisting
forces/barriers............................................................................................................................15
Illustrating that organization can achieve their objectives as the barriers are reduced and
change is implemented...............................................................................................................16
LO4................................................................................................................................................16
Discussing the intended change as well as drivers for the change ...........................................16
Performing the change model to understand how the change will implement and help the firm
....................................................................................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Understanding and leading change is very important thing across the world thus
environment today is very dynamic, it generally keeps on changing frequently (Onia 2022). In
today world it has become more important for each and every organization to keep updating
itself with time as the when not done, it may lead to failures. Change is key important for success
of an organization if lead as well as understand in effective or proper manner. The competition in
market place has also led to get success and growth of many technological as well as digital
changes. This also has made mandatory for every the businesses with the objective of achieving
great heights, so they have to adopt such technologies. Because adoption also differs, so it is
important for the business to understand the requirements and needs of the changes, then lead
such changes in environment of the organizations inner structure. To lead the change it generally
involves many of ways like first it is done through preparing the business ready for change,
making a vision, making and also change plan then easily implementation of changes done.
Report also reviewing as well as analysing progress and the results of the company is also done.
The report includes three companies that is Unilever, Tesco and Morrisons. These three
companies highlight drivers of changes as well as impact of such changes on all the organization.
The report will also include PEST analysis of as well as how each factor is generally impacting
on the organizations strategies and also operations. Moreover, the report will also elaborate those
changes that is impacting the leadership, individuals as well as teams of the organizations. Along
with this report also present a model change in any one company effectively as well as
efficiently.
MAIN BODY
LO 1
Conducting PEST analysis for each case study to identify key drivers:
Pest analysis is done by the industrial professional in order to examine the outer
environment of a business organization and what are the ways in which that environment is or
can affect the functions of the business organization. Here PEST analysis of Tesco, Morrisons
and Unilever is carried out in order to find out what are the drivers of the changes that are
implemented in the organization in the world today.

Particulars Morrison TESCO Unilever
POLITICAL 1)Brexit being one o0f
the biggest issue of UK
has brought number of
changes in the country
as well as, has also
affected organizations
and their operation on a
large scale.
2)Political legislations
is another change that
has lead the company
to adopt changes.
1) Tesco's operations
are highly affected by
the heavy import
duties of China and
other places of Asia.
2) The high rate of
taxes on UK's
supermarket chain ,
lead the company to
high price its
products.
1)Unilever has to bring
changes in its
operations because of
the change of
European commission
laws. This lead a
sudden change in the
country's political
environment and also
Unilever has to follow
the food and drug
administration.
2) Huge Restrictions
of the exporting is
stopping the company
to export on a good
scale as it was doing
earlier.
ECONOMICAL 1) AS per the Covid-19
situation, the prices of
the oil got affected and
these huge prices have
again affected the
budgets of the
customers. Leading to
low sales of oil.
2) Brexit lead to a
huge variation in
currency, affecting the
1) Fluctuation in the
costing of the
company is affecting
the great profit of the
company. As the
standard wage rate
has been set up by the
UK government.
2) COST and PEICE
being other two
factors that come
1) To Provide with the
best quality and best
prices the top priority
of the company so as
to obtain maximum
sales.
2) Inflation due to
pandemic is affecting
the costing as well as
the pricing of the
company. This factor

spending power of
customers.
under this factor. is also stopping the
company to become
the leader of the
market.
SOCIAL 1) Consumers have a
pattern of changing
their preferences this is
becoming a problem
for the company to
stock such products.
But the company can
play strong by updating
to health conscious
food items as per the
recent trend of the
society.
2) The huge increase in
the old age population,
provides a good scope
for Morrisons.
1)TESCO adopted
with its innovative
products in order give
a good competition to
the market.
2) Tesco's adopted
Fast deliveries and
other return policies
in order to match the
requirements of the
customers. This also
increased the revenue
generation of the
company.
1) Regarding the social
issue Unilever comes
up with the trending
products and
manufacture on a large
scale in order to meet
the customers and
market demand.
2) Unilever also
manufacture products
of beauty and health
care in order to fulfil
the social demands of
the population.
TECHNOLOGICAL 1) To become efficient
and deliver quality to
the customers,
Morrisons adopted
variety of technologies
that is making the
company productive
enough (Lehn, 2020).
2) The company also
invests high in its R&D
1) Tesco adopted
RFID technology in
order to optimize the
consumer experience
at the store and also to
ease the operations of
the store (Ahmed And
et.al., 2022).
2) The company came
up with has come up
1) Unilever adopted
different technological
advancements such as
the digital marketing
thorough which the
company is advertising
online and attracting
large number of
customers online
(Sawicki, 2016). This

in order to find good
software for its
working and
management of the
company.
with PayQwid mobile
payment option,
which enables the
customers to direct
pay for the products
by scanning and
making an exit (Sapry
And et.al.,2022).
is also improving the
company's brand
image and spreading a
good awareness across
the globe.
2) Unilever also
adopted automations as
per the new evolved
times. This is helping
the company to
become the leader f the
market.
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 The high rate of
taxes on UK's
supermarket chain ,
lead the company to
high price its
products.
UK's
government
Tesco being one of
the largest
supermarket, have
great suppliers
through which it
would follow cost
leadership and reduce
the costing of its
products in order to
serve the public with
the least prices and
earn more and more
As a result,
Tesco's
operations got
highly affected
and its costing
and profits both
got highly
affected.

profit. Here as per the
high taxes the
company's strategy
has been disrupted
and Tesco is not able
to serve the nation at
its best and make
good profits out of it,
as it was doing earlier.
2 Fluctuation in the
costing of the
company is affecting
the great profit of
the company. As the
standard wage rate
has been set up by
the UK government
Government
introduced it,
in order to
avoid the
labour
exploitation in
the nation.
As per the change in
labour rate, the
costing of the
products have been
increased and the
company has to go
against its own
strategy of offering
the products at the
least prices.
As a result, Tesco
is not able to
recruit more
workers as it is
already having
issue with its
management with
the current
workforce. This
is also affecting
the functioning of
the company.
3 Tesco's adopted Fast
deliveries and other
return policies in
order to match the
requirements of the
customers. This also
increased the
revenue generation
of the company.
Consumers
changed
pattern of
shopping and
preferences.
This has hold good for
the company's
strategies as the
company is now able
to serve more
customers. This very
change has also
increased the
company's base of
Tesco had to
changed its
operations due to
this change as
now, there are
more customers
who are inclined
towards these
online purchases.

customers as with
each of this facility
Tesco is driving more
customers to itself.
The company is
also recruiting
more skilled
teams who can
manage the
online and
digitalized things
for the company.
4 The company came
up with has come up
with PayQwid
mobile payment
option, which
enables the
customers to direct
pay for the products
by scanning and
making an exit
(Banaie And et.al.,
2013).
Customers
experience
This change hold
good against the
company's strategies
as now Tesco is able
to serve its customers
more efficiently and is
also making the
experience of the
customers good.
This has
minimized the
number of staff
members of the
company and has
also improvised
the operations of
the company. The
particular change
has also made the
company
advanced in its
operations.
Organisatio
n
Changes Drivers of
change
Impact on
strategy
Impact of
operations
Morrison
1 Brexit being one 0f
the biggest issue of
UK has brought
number of changes in
the country as well
Government This impacted in a
good manner as
the company can
now target the
audience
The company is
now able to
manage its
operations
efficiently and

as, has also affected
organizations and
their operation on a
large scale.
effectively. can manufacture
according to the
interest of the
UK's population.
2 AS per the Covid-19
situation, the prices
of the oil got affected
and these huge prices
have again affected
the budgets of the
customers. Leading
to low sales of oil.
Due to
pandemic
The company is
now not able to
provide the
products at low
prices.
As a result the
sales of oil has
been decreased
in Morrisons.
3 Consumers have a
pattern of changing
their preferences this
is becoming a
problem for the
company to stock
such products. But
the company can
play strong by
updating to health
conscious food items
as per the recent
trend of the society.
Consumers
shift towards
healthy
products.
Morrisons mended
its strategy
towards healthy
products which is
holding good for
the company and
the company is
also making good
sales.
Morrisons
changed its
operations
regarding the
manufacturing
of products and
is now
producing more
of healthy
products.
4 The company also
invests high in its
R&D in order to find
good software for its
working and
management of the
Competition This particular
factor helps a lot in
making of the
strategies.
Morrisons is now
making the
The company is
able to optimize
its functioning
and is now able
to compete in a
better way in the

company. strategies through
which it can
benefit every time
be it related to the
sales or related to
the costing or the
management.
market with
better use of
technologies and
software
regarding the
management.
Organisation Changes Drivers of
change
Impact on
strategy
Impact of
operations
Unilever
1 Huge Restrictions of
the exporting is
stopping the company
to export on a good
scale as it was doing
earlier.
Government
laws
The major
strategy of
Unilever was to
export the good
which is now
been completely
disturbed and is
holding no good
for the company.
As the result
Unilever's sales
have been
decreased and the
company has also
lowered its
manufacturing .
2 Inflation due to
pandemic is affecting
the costing as well as
the pricing of the
company. This factor
is also stopping the
company to become
the leader of the
market.
Covid-19 This increased the
cost of the
products for the
company and
Unilever is not
able to provide
goods at
affordable prices.
Proving negative
Waste
management have
been implemented
by the company
in order to
maintain its brand
image.

for the strategy.
3 Regarding the social
issue Unilever comes
up with the trending
products and
manufacture on a
large scale in order to
meet the customers
and market demand.
Fast changing
fashion
Unilever serves
all kind of fashion
products so this
change is no big
deal for the
company and the
company
strategies are all
standing in favour
with the fast
changing fashion.
The company has
now increased its
manufacturing.
4 Unilever adopted
different
technological
advancements such as
the digital marketing
thorough which the
company is
advertising online and
attracting large
number of customers
online. This is also
improving the
company's brand
image and spreading a
good awareness
across the globe.
Digitalized
world
This impacted in
a positive manner
for the company
and now with
digital
technologies, the
company is able
to expand its
customer base
even more.
This has changed
the requirement of
workforce for the
company as
according to the
new operations,
the company need
skilled workforce
who can advertise
more efficiently
and manage the
online orders
(Wind and
Mahajan, 2002.).

LO2
The evaluation of ways under which change will impact leadership, individuals as well as team
behaviour.
The environment of the global is very dynamic as well as alongside the environment
there are various of ways under which things present in the environment generally gets the
affected, like the business. The organizations are directly gets affected by changes that is
normally taken place outside. One of the important part of such business is the HR, the thing
which required or needs to be more flexible enough with changes that is taking place in inner
environment (Galli, 2018). There are the many ways under which the individuals, teams and also
leadership of an organization gets affected:
Morrisons
Changes
Change in the
consumer
pattern of
reasoning as
well as in
their
preferences
are related to
mainly health
conscious
food items.
Internal/
external
external
as well
as
internal
Impact on
leadership
behaviour
It is generally
duty of an
leader to lead
or guide
workforce in
effective
manners so
they deliver
positive as well
as great result
to an
organization.
The leadership
of organization
has to take
some urgent
decisions that
is regarding
the
manufacturing
or producing of
the healthy
products
(Cortellazzo,
Bruni, and
Impact on
team/
departmental
behaviour
This also lead
a big burden
on teams thus
they have to
come up with
the establish
of new or
effective
products at
the same time
so the
manage the
sales of the
company
related to the
old products.
Impact on
individual
behaviour
This also made
the individuals
dealing with the
new targets or
objective of
selling the new
products and
affected interest
of individuals
working in an
organizations.
measures to
minimise
negative
impacts
Motivation
campaigns
as well as
training
programmes
must be
organized
by the
organization
so the
employees
feel
motivated to
do their
work in
effective
manner. .

Zampieri,
2019).
Tesco
Changes
Tesco has
generally
come up with
many
technologies
that is
particularly
making
functioning
of the
organization
advanced.
They also
came to their
own
application
of payment.
Internal
/
externa
l
Internal
change
Impact on
leadership
behaviour
Leadership is
important
element of a
business. The
effective
leadership then
there is more
efficient is the
business in its
functioning. So
with
technological
change, here
leadership of the
business
initiated with
their training so
that each and
every individual
can learn as well
as use the
technologies.
Impact on
team/
departmental
behaviour
Working of
teams in an
organization
were now
more easier
and this
technical
change is
good for the
organization
teams.
Impact on
individual
behaviour
The
technological
change give
positive impact
on the
individuals
behaviours, as
this give positive
impact on
working in a
team more
easily.
measures to
minimise
negative
impacts
Proper
trainings
secession
that is
related to the
new or
updated
technologies
must be
given for
avoid the
negative
result.

Unilever
Changes
Increase in
costing of
their products
due to
Covid-19,
that generally
affected
eventual
price offering
of company.
Internal/
external
External
as well
as
internal.
Impact on
leadership
behaviour
The eventual
high costing
were generally
affecting the
sales of an
organization so
the leadership
of the company
were highly
burdened by
effective or
proper
decision-
making related
the company's
sale
improvement
as well as
waste
management
programme
that is
suggested by
the leadership
of the
Impact on
team/
departmental
behaviour
This also had
a negative
impact on
teams of the
business as
their work
got increase
as well as
due to the
low turnover
of the
company the
salaries were
delay by the
organization
(Stacho, and
et.al., 2019).
Impact on
individual
behaviour
This specific
change is
mainly affected
interest of the
employees.
measures to
minimise
negative
impacts
Different
non-
monetary
importance
should be
offered to
individuals
working,
thus it will
generally
provide
them a
sense of
motivation
and also
will balance
the working
condition
of the
business..

organization.
LO3.
Brief on force field theory
It also refers to a instrument that generally helps the organizations in select the changes
that they particularly want to take at their workstations (Nistér, Lee, Ng and Wang, 2019). These
changes mainly lead to a better functioning. The Lewin force-field include 2 main forces that are
driving forces as well as restraining forces, by which an organization identifies the area that is
required or needed to change. It also helps the business to effectively implement change. Another
factor that is driving force allow a business to attain their desired goals as well as restraining
force act which is act as a barrier. Tesco is big supermarket chain of United Kingdom that
generally needs or required to bring and also attract many customers to an organization , along
with this maximize company annual turnover.
Examples of real changes that are being introduced by the organization
Tesco is an international supermarket that has updated its environment of working as well
as also updated all the operations of the company. The changes are normally implemented by the
organization for increase productivity and also to raise the experience of the customers. Some
changes that are generally made by the organizations are the digital transformations, effective
leadership, remote workings through which the company can also optimize their performance.
Resistance force
(Barriers)
Scale Driving force Scale
Remote workings 3 Covid19 1

Leadership
management
4 Negative environment
of the workplace
2
Digital transformation 4 Poor services 3
Discussing different ways through which the organizations can also reduce the resisting
forces/barriers
For make the business successful it is becomes as important to check such progress of the
strategies that are generally made as well as mend them in a better manner. Here because
implementation of new strategies or even tools, Tesco company is also facing many barriers and
to remove them there are some strategies are as follows:
Proper communication:
The new addition of remote working brings poor communication which generally affects the
organizations operations. Therefore, the organizations should work on face times as well as
conference call meetings for eliminate this barrier (Abrams and Greenhawt, 2020).
Taking Feedbacks:
The execution of the effective leadership must be tested by taking feedbacks thus it will
generally address the concerns of organization employees. The company will also get to know
that workforce is very happy with the leadership or not, and then take corrective action on time.
Training for the digital transformation:
Tesco can also focus on reduce this barrier by simply providing training to their employees as
well as teach them the proper or right use of updated digital technologies. This will also make
organization efficient sufficient in its functioning.
Illustrating that organization can achieve their objectives as the barriers are reduced and change
is implemented
Tesco made some important changes in organizations for attain their goal in the effective
or proper manner. The organizations adopted many changes but also came number of barriers
which were generally stopping the company to make a good growth.
LO4.
Discussing the intended change as well as drivers for the change
Type of change Reason Current impact on Desired impact

the company
Digital transformation This generally change
was motivated by the
purpose or objective
of the business to give
good experience to
their customers.
The company is also
increased number of
their sales as well as is
gaining good or better
interest of customers.
A strong company
image as well as a
customer centric
business which is one
of the large
supermarket.
Leadership
Management
(Gandolfi, and Stone,
2018)
Negative environment
of working conditions
as well as poor results.
The new leadership
generally offers a big
environment to the
entire workstation and
has also made the
organizations flexible
enough towards the
changes.
A motivated workforce
that is ready to look
the objection as well as
enhance the
management of an
organizations.
Remote working The recent times of
Covid19 or pandemic
period (Amis, and
Janz, 2020).
Due to pandemic the
organizations
introduced the new
concept of remote
working in the
company for avoid the
hindrances particularly
in the functioning.
The remote working
organizations which is
generally working
even in hard times like
covid 19 to serve the
nation.
Performing the change model to understand how the change will implement and help the firm
Lewin's change model.
This model generally allows the organizations to select as well as follows the changes.
With this specific model a organization is able to effectively embed the changes. It generally
involves the three main stages that is refreeze, change and unfreeze (Burnes 2020).
Unfreeze Change Freeze

 Motivation Rewards
 Communication
 Team work
 Adoption of strategies
for the change.
 Communicating to the
stakeholders about the
newly made strategies.
 Proceed with effective
market research.
 Also, focus on
interaction on with
organization
employees.
 Company can
implementing new
methods of training for
leaders
CONCLUSION
From the above report it has been concluded that understanding and leading change
generally prepares participants mainly to meet problems or issue that come with implementation
and initiating change. Even in order to implement a change in a business it is very important to
generally understand that change and its importance, find out the right area mainly for change
and also make strategies so that can be implemented in the efficient manner. The report also
highlighted the impact of external environment on 3 various organizations from retail sector of
United Kingdom. It also showed the drivers of change as well as the impact on the strategies and
also operations of the business. Moreover, the report also presented Tesco's change of the distant
working, leadership management, digital transformation, and many more. The report also
presented the model of Lewin which particularly helps in adopting that changes in the
organization.

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