UNIT 17– Understanding and Leading Change

UNIT 17– Understanding
and Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction to drivers and affects of change and impacts on organizational strategy................1
Overview of company case studies..............................................................................................2
PEST analysis to identify drivers of change................................................................................2
Each company on impact of change and influence upon company's operations and strategies. .4
Change affects individual, leadership and team behaviour.........................................................5
Minimized impact of change and appropriate models to procedure change...............................6
PART 2............................................................................................................................................7
Overview of TESCO....................................................................................................................7
Force field analysis to determine opposition and help for change...............................................7
Different barriers to change and its influenced on leadership and decision-making...................8
Change accomplished and its success..........................................................................................8
Disadvantages and Advantages of various leadership approaches to deal with change..............8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Understanding change is very essential for business as they enable to lead changes and
implement successfully within whole business structure. Each and every businesses must
understand external and internal factors that effect its business the most (Yoder-Wise, 2014). The
present reports is based on TESCO and M&S companies that affected by some internal and
external drivers of change. It explains drivers and affect of change on organizational strategy and
also describe overview of company case studies. This report justifies PEST analysis to determine
drivers of change and explain impact of change in each company and its impact upon
organization's operation and strategies. It clarifies how change have affected leadership, team
behaviour and individuals and also define how to minimised impact of change and explains
appropriate technique to process change effectively. Furthermore, it justifies force field analysis
to identify opposition and contribute for change, barriers to change and its impact on decision
making procedure and also clarifies advantages and disadvantages of several leadership
approaches to deal with change.
PART 1
Introduction to drivers and affects of change and impacts on organizational strategy
The change drivers is an external or internal pressure that styles change to the company.
It includes change to plans, products, strategy, operations and services.
Capabilities, inventions, desire, dissatisfaction and resources are included in internal
drivers of change.
Technology, investors, government, competitors and customers are the external factors
or drivers of change that affect any businesses or industry as whole.
Consumers is leading drivers of change, any changes in market leading up attitudinal
moves in income alterations, customer demand and demographic shifts that modify definition of
convenience and value.
Innovation is one of the internal drivers of change that impact on industry and
companies operating under it.
Change cause fear, there are various negative and positive impacts that affect business
and employees which need to handle effectively (van der Voet, Kuipers and Groeneveld, 2015).
Changes due to factors affect overall functions and activities of company as well as
organizational strategy. Positive affect of change support firm to better gauge its business
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progress in developing change management strategies within company. On the other hand
negative affect of change decrease operational efficiency and also influence profitability.
Customers, innovation, technology, employees and other drivers of change has impact on
organizational plan and strategy. It put pressure on company to make some changes in their
business structure which is appropriate for business growth or success or might be not.
Overview of company case studies
TESCO Plc is British multinational general merchandise and groceries retailer, they
serve its best products or services to shoppers every day. Company is known as one of the
world's biggest retailers with 477000 colleagues, they serve a million of consumers a week. Due
to increasing profitability organization make some changes in their business structure as they
move towards operating other businesses (Doppelt, 2017). TESCO focus on both non grocery
and grocery items, they receive good customers' response which drive them towards change.
Firm try to deal in various services' sector including, finance, computer software,
telecommunication and insurance that helps to achieve its mission and business objectives as
increasing money or profit more than before.
Elsewhere, TESCO also entering in real estate business as well, they operate the websites
on which residential people can easily sell their private property or home and cut estate agents in
UK out of equation.
M&S also work under retail sector and run its large business effectively, it is the British
international company operate in many countries. They are specialist in selling good and high
quality clothing, food products and home goods. Company operate its store in different nations
or state which is quite beneficial for them as business growth. Due to low sales in M&S older
format stores, they closed Balham and Ripon food stores in 2009. Marks & Spencer were also
closed Grantham branches along with two other branches in Scunthorpe and Skegness due to low
sales.
PEST analysis to identify drivers of change
PEST analysis is one of the best strategic tool used to determine or identify factors that
impact business the most and also used to analyse drivers of change. It is an acronym for
Economic, Political, Social and technology elements of external macro environment. External
components basically beyond company's control and sometimes existing it selves as threats.
Political factors-
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Political element is the activity related to administrative practices and government policy
that have impact on company or specific sector for example Retail sector as whole. Retailing
organization operates their business worldwide, global political factors greatly impact
performance of TESCO (NHS England, 2016). It includes acts of legislation, tax rates, stability
of government and other things. Changes in these factors affecting company's and its financial
position the most, due to instability in ongoing financial in the world, several governments
encourage retailers or retailing organization to create jobs for domestic population. Ongoing
financial instability is the drivers of change that impact on TESCO business operations.
Changes in taxation policy is one of the biggest driver of change that impact on M&S
company, as they operate in different countries. Due to pay high taxes according to taxation
policy company is facing huge loss.
Economic factors-
Economic factors need to be taken in report when identifying expected and current future
value of investment portfolio or business. It includes many factors like labour costs, government
policy, interest rates, management and taxes. All businesses must pay taxes to government on its
income or profit of organization that helps in growth and development of country economy.
Due to pay additional taxes after changes in government taxation policy TESCO
company drive towards increasing more profitability, they work within different sectors such as
financing and real states which is beneficial for them. Changes in taxation policy of government
is the drivers of change that affect TESCO.
On the other hand M&S also has affected by additional taxes pay, they take actions for it
and closed few of its shops those who do not generate profit and company receive low sales from
these.
Social factors-
The experiences and facts that impact individual personality, lifestyles and attitudes. Age
of populous, family history, education, social and ethic customs, race and ethnicity is included in
social factors (Hillson and Murray-Webster, 2017). In UK customers moved towards one stop
shopping and bulk shopping it is driver of change that impact on TESCO business the most as
they maximize number of non food products offered for sale.
Lifestyles change is driver of change that affect M&S business operation and its business
functions. Most of the people try to enhance their lifestyle, they make some changes and adopt
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different clothing styles that is one of the biggest driver or factors that pressure on Marks &
Spencer does some changes.
Technology factors-
It is one of several external factors that affect TESCO business the most, technology
advancements is the driver of change that impact company business operations' efficiency the
most.
People are becoming more technological savvy that define as driver of change that
influence on M&S company as well as its profitability.
Each company on impact of change and influence upon company's operations and strategies
Impact of change on TESCO strategy and operation-
Due to ongoing financial instability, TESCO business affected in which they have to
make some changes in its business structure as whole. After, instability in the world in context of
financial, this driver impact on organization and its operation and business strategy. For
example, TESCO already have a lot of workers within their venture but due to ongoing financial
imbalance it impacts negatively on their existing employment strategies as well as each
operation efficiency.
On the other hand people moves towards one stop shopping, they are become more alert
of health issues. Due to this factor TESCO increase range of non food goods which is beneficial
for them as business growth and increasing profitability (Iveroth and Hallencreutz, 2015).
Company strategy is to provide better services or products. But after changes in people
lifestyles, firm make some changes in their food production strategy as it impact on business.
Technology advancements is one of the most vital driver that impact on TESCO and
pressure for change. It affects firms strategies of using older technology and managing operation
effectively. This impact of change might be bring many challenges or benefits for company as
whole business structure.
Government includes some additional rules in taxation policy which create difficulties
for TESCO as they operate in several states. Taxation policy change put negative impact on
company as well as its expansion operation which is not appropriate for them as business growth.
Impact of change on M&S operation and strategy-
In today's world, people drive more towards technology they prefer to shop online as it
saves time and money. Due to technologically savvy, it impacts on Marks & Spencer business
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and pressure to make changes in their marketing structure or other services which they provide
all around the world specially UK economy. It also affects negatively on its marketing strategies
and production operations.
Lifestyles changes drive M&S business towards change in their production procedure as
it impact negatively on company profitability and HRM operations.
Moreover, impact of taxation policy change on organization also affect its business
overall strategies and financial operations the most which is not suitable for them.
Change affects individual, leadership and team behaviour
Any Change within business due to internal and external driver of change affect
leadership style, individual and group behaviour mostly. For example, Technology
advancements has impact on TESCO leader leadership style. If company implement new
technology leaders must change way in which they work, they have to provide training and
developing session to its workers that help to understand technology.
Furthermore, employees performance also get affected due to technology advancements
as they required to change their whole working structure according to new technique which
might be beneficial for their growth as well as business (White and Robinson, 2014). Technology
advancement is required in modern marketing that help to enhance productivity and impact team
behaviour.
Team face issue for understanding new implemented technology as its behaviour towards
business get changed because they cannot managed their work with it.
In other hand M&S leadership styles also impacted due to change in taxation policy and
customer preference. People drive more towards using internet and social media platform in
which they get range of products and chose one of the best among it. Thus, according to this
change leader of company feel pressure that affected by this.
Due to people preference change workers need to modify its production procedure
according to current changes in customers needs as it impact on team behaviour as well as leader
working styles.
Minimized impact of change and appropriate models to procedure change
Impact of change can be decrease, TESCO must create employment opportunities which
help to make stability in ongoing financial imbalance that impact on their business and
productivity. They should adopt new technologies to serve its best services and quality products
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to customers that increase profit margin. Organization manufacture health and tasty food items
according to people who wants to fit healthy as it helps to retain clients for longer term period
with them.
Thus, M&S also decrease impact of driver of change, they must pay taxes accordant to
taxation policy which help to run their venture effectively and support to achieve its goals and
business objectives.
Lewin’s change management model-
Procedure of change estate creating perception that modify is needed, then driving toward
new and desired stage of behavior. Unfreezing, refreezing and changing is three steps including
in Kurt Lewin's change management model that help to change procedure effectively.
Unfreezing-
In business before implementing change, it must go through initial stage of unfreezing. In
short before making any changes in company structure and operations, management make plan
which is quite beneficial for them (Alavi and Gill, 2017). Many people will resist change and
some people cannot, it is the main in which management take actions before change is
implemented.
Changing-
After, making plan for implementing change and convenience staff for the same
effectively company enable to make some changes in its whole business strategies, it defines as
changing step.
Refreezing-
It is the final stage of change management model, but several define it's as refreezing to
symbolize act of stabilizing, solidifying and reinforcing new state after change. Management
make plan, convenience people to except implementing change and finally they implement
change which is beneficial and suitable for business growth and long term profitability.
PART 2
Overview of TESCO
TESCO is one of the leading retailer in UK, as they have its own shops in seven nations
across Europe and Ireland and Asia. Company operates many business in country for example,
TESCO Extra, TESCO metro, TESCO dotcom, Tesco superstore, Tesco express, Dobbies and
One stop (Lawrence, 2015). Telecoms, Tesco band, booker group and tesco tech support is
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considers as organization subsidiaries that help to generate revenue and increase its financial
position as compare to business competitors in marketplace. They expand their operations
outside the nation to 11 other countries in world. In 2013, firm pulled out of USA, but in 2018
continues growth of TESCO has been seen elsewhere. Its international capital expansion strategy
responded to need to be delicate to local expectations in another state by entering into joint
venture with local business partners. There are many factors including internal and external that
affect company both negative and positive sides.
Force field analysis to determine opposition and help for change
Force field analysis is one of the best and simple techniques for building the
understanding of factors that will resist and drive the proposed change (England, 2016) . It is
kind of management technique that help to identify better action that support for change in
context of business growth and profitability increment.
Force field model consists of two column form with driving components listed in first
column and restraining elements in second. It contributes to determine opposition or forces for
change and support to make plan against change in TESCO business that put positive impact on
success and growth of company.
Customers wants for new products, technology advancement, improve speed of
manufacture procedure and maintains costs and operational efficiency is considered as several
factors that drive organization towards change that might be impact on positive and negative
sides. With the help of this technique firm can be able to determine drives of change and then
make strategies against it which help to enhance productivity as well as generate revenue more
than before. Organization deal with this change through making plan against drivers of change
for example, Consumer demand new products it is one of the drivers for change that impact on
business operations. It helps to enhance productivity and also increase profitability rather than
before.
Force field model is used to compare any types of opposites, consequences and actions,
different point of view. In context of business progress and improvement, driving forces pushing
company for change while restraining elements forces stand in way of change.
Different barriers to change and its influenced on leadership and decision-making
Lack of management support for change is kind of barrier to change that put negative
on leadership and decision-making of management or leader in TESCO. For example, if
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company wants to manufacture clothes according to people requirement that get change due to
the latest fashion trends, is impossible (Espedal, 2017). When management cannot support for
implementing change as they considered ineffective make difficulties for leader. Leader working
style is affected due to lack of management help they cannot been able to guide workers and
motivate for making some changes in their work. It also affects decision-making of change, lack
of management contribution cannot help to modify production structure.
Inefficient communication, is the barrier of change without effective communication
leader cannot be able to guide its team members and does not take any decision because of
communication gab between employees and high management.
Change accomplished and its success
Leader and manager of TESCO accomplished change via leading their staff through
change it is one of the most suitable way to complete the procedure of implementing change.
They try to make effective communication that build trust and good relationship with leaders and
its team members. Good Communication create strong bond and relation that help to work within
team or group of people.
Understanding need of market and impact of change, is the second way to
implementing and accomplished change. Management try to understand needs or demand of
market which is essential for business success in marketplace.
Disadvantages and Advantages of various leadership approaches to deal with change
Situational leadership, is the best leadership style that help leader to take their decision
based on analysing situation in TESCO (White and Robinson, 2014). Advantage of situational
leadership- leader with situational leadership style enable to make its judgements in better way
that is appropriate for workers. They consider factors such as lack of training and lack of
communication that make negative effect company and try to reduce it through making good
communication. Disadvantages- When leader cannot be able to understand workers needs, they
do not communicate with the effectively and take actions against them which is not appropriate
to deal with change.
Autocratic leadership approach advantage- it gives benefits to company as increasing
productivity. Leader with autocratic leadership can take their decision to deal with any change
for example training and development session, without including anyone it reduces chance as
failure and conflict in management.
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Disadvantages- Leader with autocratic leadership control skilled and experienced people
who already specialist in their work. Employees know who to work according to customers need
and fulfil it, autocratic leader consistently told what to do or not to deal with change in clients
needs. It creates negative environment around workplace and demotivate staff members.
CONCLUSION
It has been concluded that customers, technology and investors is the drivers that impact
on company strategy as well as operational efficiency. TESCO and M&S both are changing their
business structure due to drivers of change. Autocratic leadership and Situational leadership both
help to deal with change in TESCO but on the other had it extent negative impact on decision-
making procedure. Companies can minimised impact of change through making effective plans
and strategies and by using Lewin's change management model TESCO can drive their business
towards success and able to make positive changes. Furthermore, via leading workers and
understand need of change it is possible to accomplish change.
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REFERENCES
Books and Journals
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Coghlan, D. and Shani, A. B., 2015. Developing the practice of leading change through insider
action research: A dynamic capability perspective. The SAGE handbook of action
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Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
England, N. H. S., 2016. Leading change, adding value. British Journal of Healthcare Assistants.
10(6). pp.302-3.
Espedal, B., 2017. Understanding how balancing autonomy and power might occur in leading
organizational change. European Management Journal. 35(2) pp.155-163.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
Iles, V., 2017. Leading and managing change. ABC of Clinical Leadership. 24(1). pp.49-87.
Iveroth, E. and Hallencreutz, J., 2015. Effective organizational change: leading through
sensemaking. Routledge.
Lawrence, P., 2015. Leading change–Insights into how leaders actually approach the challenge
of complexity. Journal of Change Management. 15(3). pp.231-252.
NHS England, 2016. Leading change, adding value. British Journal of Healthcare Assistants.
10(6). pp.302-303.
van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward: leading
change in a complex public sector environment. Journal of Organizational Change
Management. 28(2). pp.290-300.
White, V. and Robinson, S., 2014. Leading change in policing: police culture and the
psychological contract. The Police Journal. 87(4). pp.258-269.
Yoder-Wise, P.S., 2014. Leading and managing in nursing. Elsevier Health Sciences.
Online
Tesco Change Management. 2015. [Online]. Available through :
<https://www.otherpapers.com/essay/Tesco-Change-Management/27408.html>.
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