Change Management: Impact on Strategy & Operations at Tesco and M&S

This report provides a detailed analysis of how organizational change impacts business strategy and operations, focusing on Tesco and M&S. It examines the drivers of change, including technological advancements and the COVID-19 pandemic, and evaluates their influence on organizational behavior. The report also explores obstacles to change and their influence on leadership decision-making, as well as the application of various leadership approaches to change initiatives. SWOT and PEST analyses are used to assess the internal and external factors affecting Tesco's performance. The report concludes by summarizing the key findings and offering insights into managing change effectively.

Understanding and
leading change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Comparison of outcome of change on business operations and business strategy.....................3
TASK 2............................................................................................................................................9
Evaluate the influences that drivers of change have on organisational behaviour......................9
TASK 3..........................................................................................................................................14
Influence of obstacles to change on leadership and decision making.......................................14
TASK 4 .........................................................................................................................................17
Apply a range of leadership approaches to a change initiative.................................................17
CONCLUSION .............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
Changes are defined as the actions and modification activities that are taken by the
organisation for the purpose of alter organisational major component such as business culture,
technologies, strategies, policies, process as well as other factors that are need improvement or
change for running business properly. Organisation implement various type of changes in
business such as strategic transformational change, structural changes, remedial changes and
people-centric changes (Butcher, and Moran, 2018). Business creates various changes to make
transactions from its current status to future desired status. Changes are determined as the
procedure that impacts business in positive as well as negative manner. Organisation analysis
requirements of changes in business to run all operations in proper manner and implement them
in order to attain desired goals and objectives in best possible manner. There are various
challenges are faced by the organisation is the process of executing changes in business
operations.
In this report the chosen organisation is Tesco which is British multinational retailing
organisation founded in the year of 1919 by Jack Cohen. Headquarter of organisation is situated
in London, England, UK. Respective organisation offers range of products to its customers such
as clothing. Financial services and various others through opening stores in various countries. In
this report various topics such as impacts of changes on business strategies and operations and
influence of internal and external factors on organisational behaviour are mentioned.
Furthermore, barriers in changes that impacts leaders decision-making process as well as
leadership approaches that help business to initiate changes are covered in this project report.
TASK 1
Comparison of outcome of change on business operations and business strategy
Organizational change affects business strategy and business operations as
implementation of change leads to business firms altering their business strategy and business
operations for smooth enforcement of change (Carter and Walker 2018). Change creates a shift
in organizational culture and character which affects daily business operations and strategy of the
company. The retail sector is facing ongoing crisis because of COVID-19 pandemic affecting
retail supply chain, workforce and profitability. Business firms in the UK retail sector have
responded with organizational changes to emerge from the COVID-19 crisis as a successful

company. Tesco and M&S have implemented changes recently which have impacted business
operations and business strategy of the enterprises. The comparison between changes enforced at
Tesco and M&S are provided below:
Company Changes-
PEST/SWOT
Drivers of change Impact on
strategy
Impact of
operations
Tesco Tesco has
implemented
technological
change to increase
online shopping
and ensure
digitization of the
company. Tesco
has created own
brand website in
order to attract
online shoppers
and gain
leadership in
online retail
sector. This
technological
change has been
the main reason
for high
profitability of the
company during
Covid-19
pandemic.
The primary driver of
change in this business
context are external
factor of rising
competition from e-
commerce companies
and rise in online
shopping in recent
years. Tesco realized
that building strong
online presence and
successful own brand
online shopping portal
will help the company
face competition from
domestic and
international digital
retail firms such as
Amazon and Ocado.
Apart from this digital
economy and retail
shopping has been
increasing in recent
years. This is another
The technological
change of
introduction of
digital technology
has affected
business strategy
of Tesco. The
business strategy
is changed as
safety and
satisfaction of
online consumers
is prioritized to
enhance digital
change. The
change in
business strategy
of the company is
conducted in
order to gain
desired outcome
from
technological
change. Business
The
business
operations
at Tesco are
also affected
by
digitization.
Digital
technology
adoption is
beneficial
for business
firms as it
improves
efficiency
and
provides
consumers
seamless
experience
(Pantano
and
Vannucci,
2019).

Digitization
focus on offering
safe delivery of
online orders will
help the company
reach large
number of
consumers.
Digital
development is
essential for retail
firms as it helps
prepare for future
with rapid
digitization of
various business
processes (Van
Ossel, 2019).
external factor which
lead to technological
change at Tesco. In
addition to this Covid-
19 trade restrictions
have also increased
dependence of retail
firms on online
consumers to attain
profitability. Digital
development of Tesco
has helped the
company survive
pandemic with soaring
profits. This depicts
the value of
technological change
at Tesco and how
Covid-19 assisted in
rapid digitization and
technological change
at Tesco.
strategy which
aims to increase
online sales will
assists in smooth
implementation
of digital
technology.
Tesco has been
able to increase
online sale after
pandemic because
of changes in
business strategy
of the company to
ensure smooth
digitization and
provide online
consumers
maximum
satisfaction.
Business
operations
at Tesco are
improved
with the
help of
digital
technology
and the firm
is able to
offer better
services to
online
consumers.
Another
technological
change
implemented by
Tesco is
enforcement of
various
technologies to
increase safety of
Covid-19 pandemic
and trade restriction
imposed by the British
government in light of
rapid spread of the
virus are the main
external factors
driving this
technological change
The business
strategy of the
company has
shifted towards
maximizing
safety at physical
stores of the
company. The
primary change in
Operations
at Tesco re
changed as
the
employees
have to
follow
various
measures in

consumers and
employees during
the pandemic. The
company one-in-
one-out system to
restrict number of
consumers present
in physical outlets
of the company.
Apart from this
Tesco has
constructed
checkout stations
with protective
screens screens to
improve
consumer safety.
Tesco has
provided their
drivers
sanitization and
safety equipment
such as protective
gloves and face
covering to ensure
safe online
delivery.
at Tesco. The
company has
implemented new
technology and
systems and physical
stores in order to
improve employee and
consumer safety.
business strategy
is to introduce
new measures
and technology
which can
increase
protection form
Covid-19
pandemic.
order to
decrease
spread of
Covid-19.
Employees
have to
ensure that
consumers
adhere to
one-in-one-
out-system
and utilize
protective
screening at
check-out
stations
effectively.
M&S The company has
implemented an
operational
change in order to
The primary driver of
operational change at
M&S is the disruption
in retail clothing
These lay-offs
impact business
strategy of M&S
as the firm has to
The
business
operations
at M&S will

face high losses
suffered by the
company. M&S
has implemented
lay-offs of more
7,000 jobs on a
global scale in
order to deal with
COVID-19 crisis.
These lay-offs
will impact
company
headquarters,
regional
management and
UK stores in the
next three months.
because of COVID-19.
2020 has been one of
the worst years for
British retail firm as
the company shares
were down by 2.8%
and clothing and home
sales decreased by
29.9% in the eight
weeks since the store
reopened (COVID-19
effect: Marks &
Spencer to slash 7,000
jobs, 2020).
alter their strategy
to reduce negative
impact of massive
lay-off on
existing
workforce of the
firm. The
business strategy
of the company
will focus n
creating
motivating
workforce and
taking measures
to recover from
damages caused
by pandemic.
also be
affected
because of
this
operational
change as
employees
will have to
multi-task in
order to
maintain
organization
al
productivity
. In addition
to this
massive lay-
offs will
provide save
financial
resources of
the
company to
improve
business
operations
through
technologic
al upgrades.
M&S has also
implemented
The primary driver of
technological change
Technological
transformation at
Business
operations

technological
change. The firm
is implementing
technological
transformation to
developed digital
capabilities and
face the ongoing
COVID-19 crisis.
The firm has
expanded pay and
go app based
service in 573
stores across UK
(How Marks &
Spencer plans to
double down on
digital to compete
with online
pureplays and
survive the
COVID crisis,
2020). The aim of
this technological
transformation is
to help the
company increase
both online sale
and physical tore
sale. In addition
to this M&S has
at M&S is COVID-19
crisis. Intense
competition in retail
sector and increasing
demand for online
shopping has
increased the need of
developing efficient
online channels at
retail firms in UK.
M&S will be able to
save costs and increase
online sale with the
help of this
technology.
M&S impacts
business strategy
of the company as
the firm has to
invest in
improving digital
skills of the
workforce.
Business strategy
of M&S will be
changed to ensure
that every
employee in UK
understand the
usage of pay and
go app based
service so that
they are able to
facilitate effective
usage of this
service an help
consumers in case
of any
difficulties.
at M&S will
change as
digital
technology
will reduce
employee
consumer
interaction.
Pay and go
app based
service is
introduced
by M&S
under
technologic
al
transformati
on which
will enable
consumers
to purchase
products
from
physical
outlets
without help
from staff at
the store.

partnered with
Microsoft to
promote more
flexible working
and save costs
while improving
productivity.
These changes are
implemented to
enforce digital
thinking and
approaches firmly
into the
organization.
TASK 2
Evaluate the influences that drivers of change have on organisational behaviour
There are various internal as well as external factors that impacts affect business
performance and functionality in various manner. Tesco analyse these factors and take decisions
accordingly for the purpose of attaining business goals and objectives. Swot and pest analysis are
mentioned below:
SWOT analysis
SWOT analysis is defined as the strategic tool that is implemented by the organisation to
identify organisational competitive positioning as well as help in strategy formulation (Childers
and Maggard-Gibbons, 2018). SWOT denotes strengths, weakness, opportunities and threats that
reflects business internal as well as external factors that are mentioned below:
Strength: Strengths are determined as the internal capacities of business that provides
various competitive advantages than other competitors. Tesco is the biggest retailing
organisation in UK and having leading market share as compared to other supermarket chain.
Respective organisation conducts its operations through e-commerce platforms that enables

organisation to perform properly in the pandemic of Covid-19. Tesco provides range of products
and services to customers in diversify market place that help business in expansion. Organisation
uses latest technology that help in enhancing overall experience of customers and maintain
effective positioning of business in market place.
Weakness: Weaknesses are defined as the internal insufficiencies that limits business
improvement and effectiveness than other competitors (Conway, George and Sackeim, 2017).
Tesco fails in operating business operations in American and Japan market as well as
organisation is fined because of false accounting declaration and misrepresentation of profits.
There are high debts and credit card liability on organisation that directly impacts on business
profitability. Few stores of Tesco are not performing well in specific country due to lack of
market research.
Opportunity: Opportunities are the external factors that facilitates business through
ensuring growth and development in specific market place. Online shopping in the option that
helps Tesco to serve products and services to employees in pandemic and home delivery option
that facilitates business to enhance market share of business. Respective organization adopts
various options such as strategic alliances, joint venturing as well as emerging market activities
that enables the respective organization to attract more customers.
Threats: There are various threats are faced by the Tesco that affect overall performance
and efficiency of business. Respective organization faces competition from Walmart and Aldi
that creates threat for the organizational market positioning. Brexit is the factor that impacts on
business performance because after this Tesco is no longer in European Union as well as
regulations of government, tax rates and legal compliance are some factors that affect business
operational efficiency as well as performance of Tesco.
PEST analysis:
PEST analysis is defined as the method of management that is used by the Tesco for
analyzing and assessing business external factors that impacts business operations and
performance in positive as well as negative manner (Cuadra-Peralta and et. al., 2017). PEST
stands for political, economic, social and technological factors. Organization takes decisions
after evaluating these factors that help in organizational growth and development.
Political factor: As Tesco is the multinational retaining organization that operates its
business operations in various various countries. Each and every country poses their own

political regulations and government policies that may be different form others that impacts
business performance and effectiveness. These regulations and legal alliances must be followed
by the organization to run business in proper manner. Brexit creates the environment of
uncertainty that impacts on business trade policies.
Economic factor: As the situation of Covid-19 pandemic impacts on every industry.
People are not allowed to step out from their houses and government has imposed lock down.
Tesco has adopted e-commerce and online delivery option to survive in the situation. Respected
organization offers range of products and services to customers so economic factor plays
important role in consumption of these products. There are various factors are included in
economic factors such as inflation rate, interest rate, growth pattern of economy and foreign
exchange rate that impacts on organizational performance and productivity (De Klerk, 2019).
Tesco consider these factors in business policies to gain various sustainable competitive
advantages.
Social factors: Socio-cultural factors consist various factors such as attitude of
population, customers health consciousness and shared beliefs that affect business overall
performance level (Edwards-Groves and Rönnerman, 2021). Tesco considers these factors for
the purpose of analyzing and understand customer's needs and demands. Respective organization
follow all required measures to gain defined objectives in best possible manner. For example,
due to high demand of customer organization offers branded halal meat to its Muslim customers
at some stores of UK. As per the situation of Covid-19, Tesco implements various measures such
as one-in, one -out to maintain limited number of customers and social distancing in store at a
time, establishes various sanitizing stations in store for customers and employees use as well as
provide disposable gloves , hand gel wipes and face coverings in order to reduce spreading
corona virus.
Technological factors: There are regular changes are happened in technology that
impacts on organization such as automation, innovation and research and development (Flores
and Ferreira, 2019). Tesco is being benefited through adopting various technological
advancements. Respective organization introduced Clucard that facilitates business to attain
success in competitive environment. Furthermore organization implements self services at
checkout point that facilitates customers to reduce cost and provides various advantages them
other competitors.

Change Internal/
external
Impact on
leadership
behaviour
Impact on team/
departmental
behaviour
Impact on
individual
behaviour
Measures to
minimise negative
impacts
Technolog
ical
change
Internal As per the
advancement
of technology,
it is required
for leaders to
provide
training to its
employees so
they can
operate
properly.
Through using
technologies ,
leaders are
enable to track
as well as
monitor
employees
performance
and
productivity
(Gibson,
2020).
In current business
environment, trend of
online shopping is
increasing at very
fast rate, so it
becomes important
for the HR
department to hire
suitable employees
who can operates
business functions
and fulfil all
demands of
customers.
Technological
progress has
beneficial impacts on
business performance
and profitability
(Gelman and Greeno,
2018). Whole
business department
and team are getting
affected by this
change because it is
required to provide
training to employees
As
organisatio
n starts
online
shopping
and home
delivery
services to
its
customers
that
enhances
business
sales.
Individuals
have to
work in
more
efficient
manner
that
ultimately
reduces
their
performanc
e level.
For the purpose of
minimizing negative
impacts of
technology change ,
leaders of
organisation
conducts meetings
and conferences to
enhance
understanding of
employees regarding
changes. Tesco
provide training to
employees as well as
allocate work among
them properly that
reduce employees
resistance to adopt
changes.