Understanding and Leading Change in Tesco and Sainsbury

Unit 17 - Understanding and
Leading Change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Ways in which change impacts on an organization's strategy and operations............................3
Effects of Internal and External factors influencing leadership, individual and team behaviour5
Measures to be taken to reduce negative impact on organisational behaviour............................9
TASK2...........................................................................................................................................11
Barriers of change and their influence on learnership decision-making...................................11
TASK3...........................................................................................................................................14
Different leadership approaches and change management model.............................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
The study is on organisational change which means that an organisation is bringing a change
in its way of working, its internal processes or its use of technology which effects the employees
and way of doing business. The study will take in account two organisations namely Tesco and
Sainsbury to gauge the effects of organisational change. Tesco is a British multinational selling
grocery along with merchandise and is one of the biggest retail chains in UK. Sainsbury again is
a UK MNC which specialises in fresh food products along with packaged food products. The
comparisons between the two on organisational change and who has coped better will be
evaluated on internal and external drivers of change, theories and concepts affecting
organisational change, how leadership overcomes the barriers to change with decision-making
and leadership approaches applied for a change initiative.
TASK1
Ways in which change impacts on an organization's strategy and operations
Two organizations which is chosen are Tesco and Sainsbury
Tesco is a multinational grocery and retail company, having its headquarters in England. Jack
Cohen founded this company in 1919. Company has its presence globally with more than 11
countries. Along with grocery they have established itself in clothing, furniture, financial service,
books, telecoms etc. Tesco have its website through which online shopping can be done.
Company also provide club card facility to the customers so that they can get discounts.
Sainsbury is the supermarket's chain having its headquarter in United Kingdom. Company is
founded by John James Sainsbury in 1869 (Vlados, 2019). It is also listed on London stock
exchange. In its initial days they were fresh foods retailer and then moved to groceries. Their
purpose is to provide good quality of food at reasonable price. They protect environment and
make sure that not doing pollution or wastage which harm the environment.
Tesco and Sainsbury are chosen because they are the biggest retailers of UK. Both belief in
protecting the environment and customer satisfaction is their priority. They do research and
development to launch innovative products in the market. They offer good quality of products at
the fair and reasonable price.

Changes affected Tesco and Sainsbury:
One of the important factor which affected Tesco is the social factor. It can include age, gender
etc. If a child is born than it will open a new market for the company because their parents will
buy toys, baby products etc. from Tesco. Tesco gives equal rights to their employees which come
under legal factor. Gender has also influenced the company. Company consider male and female
workers equally they are also selling products for both male and female. Religion is also the
factor which is affecting Tesco while income is the another factor. Sainsbury wants to gain large
customer base for that company had made one strategy but that strategy fails reducing the sales
of the company. Company has done merger with its rival company Asda which is become a big
fail. Sainsbury also brought the change in which they will focus on reducing food wastage, water
waste, carbon emissions etc (Bayliss and et.al., 2020).
Response of each organization for the change
Tesco is satisfied with the social factor. Company knows that if a kid is born than what he or she
will require so company focusing on their requirement while making products. From their toys to
baby products, they are making everything and when they grow they will need books and school
uniforms which are also manufactured by the company. Company had understood that they
should grab every opportunity and make profit from that. Religion factor affected the company,
so they had started giving importance to every religion and also trained their employees to
respect every religion so that none of the sentiments of any religion got hurt. Legal factors also
brought major changes in the company. Tesco gives their employees the equal rights whether
male or female, they believe that everyone is equal in the eye of company because they are
selling both male and female products (Phadermrod, Crowder and Wills, 2019). Earlier company
was making major products for high class only but now they have understood that if they want to
generate more revenue than they have to make products for middle class as well. Sainsbury is
revising on their strategy and has appointed expert who can guide them while making sale
strategies. Company now consider all the aspect before doing merger because its fail can cost
huge. Aspects can be its market share, customer behaviour, brand value etc. Sainsbury's change
for protection for environment is a success because they build customer trust for them.
Types of organizational change in both organization
People: Tesco believe in people culture in which training is given to the employees that how to
handle the customers and solve their queries. They believe that customer problems should be