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

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