Leading Change: Analysis of Tesco and Sainsbury Report

This report provides an in-depth analysis of organizational change management, focusing on the retail giants Tesco and Sainsbury. It begins by comparing how these companies have adapted to technological advancements, policy changes, and structural reforms, examining the impact analysis techniques used. The report then delves into the internal and external drivers of change, utilizing SWOT and PEST analyses to evaluate their effects on leadership, team dynamics, and individual behaviors. It explores measures to mitigate negative impacts on organizational behavior. The second part of the report assesses barriers to change and leadership decision-making, along with various leadership approaches to managing change within an organization. The report concludes with a comparative summary of the strategies employed by Tesco and Sainsbury, offering valuable insights into effective change management practices.

Understanding and
Leading Change

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
P1 Equating organisations where there has been an influence of change on an
organisation’s plan and processes..........................................................................................3
P2 the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.........................................................................5
P3 measures that can be taken to minimise negative impacts of change on organisational
behaviour................................................................................................................................8
TASK 2....................................................................................................................................10
P4 barriers for change and there influence leadership decision-making in a given
organisational context...........................................................................................................10
P5 leadership approaches to industry with change in a organisation...................................11
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13
Books and journals...................................................................................................................13

INTRODUCTION
Organtional change is that concept which arise because of dynamic business
environment where there is regular needs to change functioning of firm for its survival. It
includes technological, cultural, behavioral and many other changes which are mandatory to
firm for development of its operation and perform them in effective manner. Leadership is
also important factors which help in change management and guiding employees in direction
of firm objectives and development of path where firm can run for achievement of growth
and development. This report is divided in two parts where first part focuses on comparison
between different organizations where the impact of change in organization strategy and
operation will be examined. It also consists of evaluation of the methods which helps in
identifying external and internal factors which can affect leadership, team and individual
behavior in the organization and in the last of this part, evaluation and measurement of
negative impacts organizational behavior. In second part of this report approaches to dealing
with change will be evaluated. For this Tesco and Sainsbury will be taken. Both are retail
supergiant in UK. Both are famous for selling good (Wolberger and Goldman Schuyler,
2018).
MAIN BODY
TASK 1
P1 Equating organisations where there has been an influence of change on an organisation’s
plan and processes
Organtional structure is that set of plans which is related to smooth working in
organisation for achievement of organisations goal. This activity is included or in built with
responsibilities, rules, supervision and duty. this is the flow of information within the
organisation and help in management of activities by defining every individual role and
responsibility equally (Tombetti and Mason, 2019).
Tesco: It is British multinational company for groceries and general goods basis. This
has a head quarter in England, UK. It is the third largest retailer in world if it is measured
with its gross revenue and if it is counted from its net revenue then it is seventh largest
retailer in world. Company is operating in supermarket where it sells all kind of products
which are related to consumer and supplier.
Sainsbury: It was founded in 1896 by John James Sainsbury as a shop in London UK
and now it is 2nd largest retailer in world, with more than 16 % share in market of UK. This
company is also known for large range of products at cheap prices, whit huge range of
customer.
On the basis of various drivers of change Comparison between Tesco and Sainsbury
is discussed below:-

CHANGES IN TESCO AND SAINSBURY
Tesco (planned changes)
Technological Change: There are fast technological changes in UK online grocery
shopping and home delivery of product. Tesco was quick to respond to this opportunity and
adopt the business model by establishing online grocery channel named as “Tesco direct”.
Online services are also rapidly growing in 2006 where Tesco setup model which named as
grocery document centre where it open warehouse to sell its product to customer by
delivering it on their own door step (Rogers and Marres, 2016).
Policy and methods: Tesco change Tesco also changes its policies and methods
which are used in promotion and advertisement of its product there are number of new
technologies like video advertisements and online advertisement came in market with the
time which are more effective and cost friendly for Tesco.
Structural Change: Tesco completely change its structure by adopting online
retailing system this help Tesco in increasing its market share where after adopting the online
retailing system the test course market share increased by 40% where it become the third
largest retailer in market of UK.
Sainsbury (planed changes)
Technological Change: Sainsbury also adapted number of technological changes like
updating it software for working in organisation and supporting customer services. Sainsbury
also developed a new building system where customer can get the benefit of self-checkout
system and hassle-free billing of the product which they buy from supermarket.
Policy and methods: Sainsbury also using a new software’s which can help in
maintaining performance of company according to technological changes and policies and
methods changes new policies regarding using of performance management system and other
major system to control the effectiveness in performance.
Structural Change: For increasing the overall sales revenue and growth of company
Sainsbury used structural reform which can help in it in management of its employee as a
result companies whole sale increased by 14% and the main objective of this expansion and
gross is also reached as it can be seen on its low price of product this also help company in
increasing its stores all over the world.
Change impact analysis
Change impact analysis is a process which is defined by Bohnner and Arnold they
identify that potential consequences of change for estimating what need to be modified to
accomplish ache that means that change can be driven from development and growth of
consequences which are going around business There are three type of impact analysis
technique trace, dependency and experiential. Identify two class of impact analysis

traceability and dependency traceability things between the requirement specification design
element and testing captured and these relationships can be analysed to determine the scope
of initial change the dependent dependency increase between a path logic variables module at
sector access to determine the consequence of initial change and in last the experiential it is
that part which help within the software design static and dynamic unlock rhythms can be run
on the code to perform dependence (Neumann, James and Vince, 2019).
P2 the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation
SWOT analyses is a framework which is used to assess the strength, weaknesses,
threat and opportunity which imposes direct impact on the performance of business
organisation. In context of TESCO, the manager adopts the SWOT analyses which are going
to be mentioned below:
SWOT of TESCO
STRENGTH
 Herein, the TESCO provides high quality product and services to its customer. It
helps them in boosting productivity and profitability level at workplace.
 The TESCO implements the latest technology for offering innovative products and
services to its customer at affordable cost.
WEAKNESS
 The TESCO does not make effective strategy, policies and procedure in order to
identify the strategies used by competitive firm can be considered as a threat for
business firm.
 There are various types of expenses such as multilevel parking; educated sales person
can add cost to the product and services.
OPPORTUNITIES
 Due to execution of advanced technology, TESCO offer unique products as well as
services to its user in order retain them for a longer period of time.
 They offer branded products that help in achieving competitive advantage over rival
firm.
THREAT
 The cost of implementation of technology is high, it add cost to the products and
services provided by business firm.
 Economic recessions as well as credit crunches will impose negative impact on
productivity of business firm.

SWOT of Sainsbury’s
STRENGTH
 The Sainsbury’s adopts the innovative promotional strategy for sponsoring products
and services in order to attract ample of customer at workplace.
 The Sainsbury’s makes effective strategy for increasing brand image and goodwill of
company in front of customer.
WEAKNESS
 Sometime, the Tesco faces many issues and problem related to brand switching can be
considered as a threat for business firm.
 Herein, Due to decrease in the cost of competitor products and services it imposes
negative impact on profitability of Sainsbury’s.
OPPORTUNITIES
 The Sainsbury provides products and services in rural market thus it helps them in
boosting profitability level at workplace.
 The Sainsbury’s operates their business at global level that increases brand image and
reputation in front of customer.
THREAT
 There are various competitors available such as Resco, Asda as well as Aldi provide
quality products and services at low cost can be considered as threat for business firm.
 Due to Brexit, it adds cost to the product of company thus downwards sales in future
period of time.
PEST Analysis
Political: It includes government regulation, taxation structure, laws as well as
regulation and many more. The political condition of UK is stable thus it imposes positive
impact on profitability of business organisation. Apart from this, due to increase in tax, the
cost of the products and services is increased thus it affect the sales in negative manner. for
saving the interest of the organisation management of test book and take different decisions
regarding the political factors by minimising this negative impact on the organisation and
increase the profitability. The can include different policies which are directly related to the
taxation and other functions which minimise a negative impact on sale services of the firm.
Economical: These factors involve unemployment rate, deflation as well as inflation
rate and so on. Due to economic recession, the unemployment rate is increases. Therefore, it
decreases the income of individual person, thus the consumer will shift to the products and
services of low cost which imposes negative impact on future sales of TESCO (Kinchington,

2019). Economic factors also have positive impact on the sales of Tesco but for reducing the
negative impact company can use different type of policies where it can increase the
employment ratio within the form for decreasing the negative impact of economic restrictions
and other things.
Social: Social factor includes age, lifestyle, trends as well as preferences of customer
and many more. The manager of Sainsbury’s provides innovative products and services to its
customer for increasing their living standard. Therefore, the business firm offer products as
per the need and wants of customer impose positive impact on growth of the company.
Technological: Due to implementation of latest technology, the manager of TESCO
offer superior quality products and services to its customer thus it helps in increasing brand
image and reputation of company in front of customer. Technological factors are also
important for the organisation because of providing the superior quality products and
increasing the customer trust within the organisation so it can use different strategies where it
can adopt the new technological means for survival of form as well as increasing the benefits
to customers.
PEST analysis of Sainsbury’s
Political: Due to Brexit, it is not possible for the manager of Sainsbury’s to import
products and services from abroad. Therefore, the price of foreign product is high thus results
in difficult for business firm to retain the customer for a longer period of time. It affects the
future sales as well as profitability level in negative manner. Sainsbury is a leading
organisation and it have to clearly identify the political factors which have their direct impact
on organisation and try to reduce the negative impact by bringing new policy.
Economical: Herein, the expectation of employees is increasing day by day. There
are large number of staff member working in the company to perform various tasks such as
stocking shelves and manning the checkout. If the manager of Sainsbury’s gives them salary
more than their whole profit than it adds cost to the product as well as downward sales in
future time period.
Social: Now days, the customer become more health conscious thus they changes
their taste from junk food to healthy food such as salads, shakes as well as snacks. Therefore,
the higher authority of Sainsbury’s provide the products and services as per the need and
demands of customer results in achieving great success in future time period.
Technological: The top management of Sainsbury’s adopt Artificial Intelligence as
well as latest technology in order to offer innovative and unique products and services to its
customer. Therefore, it increases the sales and profitability level in future period of time.
Therefore, the change in internal as well as external factor imposes direct impact on
the behaviour of leadership, individual and team member. It is necessary for business firm to
consider both internal and external factor while make strategy for increasing sales and
profitability level in future period of time. In addition to this, the external factors are
uncontrollable so that it is important for leader to make an effective plan of action to cope up

with the changes made at workplace. Apart from this, due to changes in the taste and
preference of customer, the business firm must implement advanced technology in order to
satisfy their changing need and wants (Harter, 2016). Therefore, the way of working is
completely changes, thus it imposes direct impact on the behaviour of individual and team
member.
P3 measures that can be taken to minimise negative impacts of change on organisational
behaviour
It is necessary for firm to make changes in order to systematize business life cycle in an
appropriate manner. In addition to this, due to implementation of advanced technology, it
helps the business firm in achieving leading position at marketplace. The manager of TESCO
adopts the changes at workplace in order to gain competitive advantage over rival firm. In
context of TESCO, the manager adopts System theory as well as Burke- Litwen model in
order to minimize negative impact of changes in organisational behaviour which is going to
be mentioned below:
System Theory
The system theory of change management is an important model which can be used to
implement changes at workplace. There are six variables such as People, task, design, culture,
technology as well as strategy has taken into consideration for reducing the negative impact
of changes on organisational behaviour.
People: It is necessary for TESCO to taken into consideration the differences of an
individual person in the form of goals, perception as well as their need and motives.
Therefore, the manager motivates the employees towards adopting the changes at workplace.
Task: Herein, the manager allots the task according to the skill and talent of
subordinates working within business organisation.
Design: The manager of TESCO design the organisation structure in such a manner
that helps them in implementing changes in an effective manner.
Strategy: The top management of TESCO make effective strategy, policies and
procedure that define how changes are necessary for the business organisation. It motivates
employees towards implementing changes at workplace.
Technology: Herein, the business firm has executed advanced technology in order to
bring the changes within business firm. And also encourage employees to accept these
changes easily.
Culture: The culture includes value, norms, beliefs as well as expectation of
individual person which must be fulfilled in order to implemented changes at workplace.
Therefore, these elements are interrelated to each other. It is necessary for top
management of TESCO must consider these factors in order to minimise the negative impact
of changes on organisational behaviour (Glass and Cook, 2016).

Burke- Litwen model
Burke- Litwen model of organisation changes establish a cause- and effect
relationship. This model is adopted by manager of TESCO for minimizing the impact of
changes in organisation behaviour. There are four factors which are used to implement
changes which are going to be mentioned below:
External Environment: It is necessary for manager of TESCO to analyse the external
factor in order to execute changes at workplace. In addition to this, they focuses on
identifying the changing need and wants of consumer in order to satisfy them.
Performance: The leader adopts the advanced technology in order to bring changes at
workplace. They motivate employees to accept changes in order to perform difficult task in
easy manner.
Transformational Factor: In this factor, the leader make suitable strategy for adopting
changes that helps them in achieving vision of business organisation in short span of time.
Transactional factor: The manager of TESCO must behave in such a manner that
motivates employees to easily accept the changes at workplace.
On the basis of above mentioned topics, it has been analysed that it is important to
maintain organisation structure in such a way that helps the firm to implement changes within
business organisation. Apart from this, the leader motivates employees to accept changes at
workplace. They encourage employees regarding benefits of changes at workplace. The
implementation of advanced technology helps the staff member to perform their difficult task
easily. System theory and this model will directly help organisation in reducing the negative
impacts of organisation behaviour changes which reduce the profitability ratio of the form as
well as decrease the confidence of employee. This is the proper implementation of both of
these models the negative impacts can be directly reduced and the motivation within the
employees can be boost.
TASK 2
P4 barriers for change and there influence leadership decision-making in a given
organisational context
Leadership is a process of writing the employees of organisation in the direction of
force and objective which can be achieved in with limited time period and number of barriers
in change management of organisation where leadership can be influence as its decision
making power will get down.
Barriers of change management: There are number of changes which can occur in
business environment but it is not necessary for every employee an organisation to adopt this

changes properly therefore it create number of resistance to change which can impact
adversely the leadership decision-making and barrier in change management of Tesco
(Drago-Severson and Blum-DeStefano, 2018).
Lack of Involvement employees: Change management is a process where there is
number of changes in functioning of organisation number of employees in organisation who
resists from this change this is because they are not in motivated toward the work and there is
also fear to lost the job because of this change in Tesco there are number of employees which
are faithful and loyal to form in men last years there are number of changes adopted by firm.
This resistance also impact on decision making power of leaders In Tesco because they have
to consider those employees who are resisting from change (Doppelt, 2017).
Lack of Proper Communication Strategy: Sometime communication strategy can also
act as in variant in change management this is because if organisation like Tesco does not
follow a good communication structure then there must be there delay in information which
leads to conflicts in organisation these conflicts will affect the decision of leader and will lead
to delay in work where firm have to suffer inform off losses.
Edgar Schein Model
According to Edgar Sachin, organisation can't able to adopt any culture in single day it can
get through experience and practices. He also said that adoption of external environment for
solving the problem is the process which takes time and also state that a new employee also
strive hard to adjust to a new culture and enjoy stress free working environment. He states
that there are three level of organisation culture which is mentioned below:
Artefacts
the characteristics of the organisation which can easily identified felt and here by an
individual is known as artificial it can be said as a dress code of employee office furniture
facilities behaviour of employee mission and vision of organisation, this all are artefacts
which help in identification of culture to employees. They play an important role in Tesco as
manager help the employees to identify all the things like a mentor which help him to be
favourable with organisation culture and facilities (Baird and Boak, 2016).
Values
the next is value of the individual who are working in organisation and playing an
important role in deciding the organisation culture here in Tesco the people enable that what
they actually are and they how there are helpful for organisation to achievement of
organisation goal this will help them in identifying their role in organisation and profit
maximization for firm.
Assumed Values
The level 3 according to this process is assumed value which can't be measured
because difference of culture in organisation all the other aspects of human nature come

under this. Where the dominance of female worker on male worker and male worker and
female worker will be analysed this will help test in identifying the behaviour of individual
and adoption of change in which can lead form input decision making and direction of force
and objectives.
P5 leadership approaches to industry with change in a organisation
Situation leadership theory: Situation leadership theory is that theory with which
leader shoes for the situation variability’s leadership theory states that there are a number of
situation in a business organisation because it is dynamic in nature Fury help them in
behaving according to the situation here the leader have to change its way of working
according to the situation demand this help in managing change in organisation as the
situation changes our manager on a leader is able to adopt new techniques and tools which
can help in implementation of change
Relationship theory : relationship theory also known as transformational theory
which focus upon connection from leader and its follower the transformational leaders always
motivate and inspire their people by forming helping groups of member to see their
importance and achievement of goals and objective on time the leader are focused on the
performance of the group member but also want that each person in the group must fulfil his
or her potential duties leader with the style of an have high attitude and moral standards and
their top changes easily in organisation which help form in working smoothly maximization
of profit and productivity (Alavi and Gill, 2017).
Lewin's Change Model: - This is a three step model which includes unfreezing
changing and refreezing that help the organisation in making efficient decisions company can
conduct. this model to build a good Framework that can help their executive in making
policies firm decision.
 Unfreeze- Unfreezing is the process where manager of Tesco identify the requirement
of change in organisation near me identify the structure and the possibilities of
changes which can implement on organisation for achievement of more smoothness in
work and maximizing profitability as well as productivity of year manager can
identify those employees who are existing from change and help them to cope with
change.
 Change- the second step in this process is changed where the Maldives change
implement on the areas where which are identified in previous process the changes
implemented on the by the help of creation of plan in policies.
 Refreeze- Freezing is the process which creates method of implementing and
modification and sustaining them in the organisation for land it is the last process

which help in working of the organisation as the change implemented now it is time
to work according to the change policies and procedures.
CONCLUSION
This can be concluded from above mentioned report that organtional change is
imaportant part of firm where firm have to deal with it. There are number of internal and
external factors which can be used for development of change in organtional working
structure. Leadership and team behavior have great impact of this on there working which
can help firm in implementation of this change on firm. Negative impact of all factors can
leads in decreasing the chances of change in organtional but there are positive impact of this
also who can help in minimizing its negative impact. It is also concluded that there are
number of barriers in change in organtional but this can be handled with it.

REFERENCES
Books and journals
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follower responses to complex change. Journal of Leadership & Organizational
Studies, 24(2), pp.157-171.
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system to a paramedic service. Leadership in Health Services.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
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educator capacity within schools and systems. ASCD.
Glass, C. and Cook, A., 2016. Leading at the top: Understanding women's challenges above
the glass ceiling. The Leadership Quarterly, 27(1), pp.51-63.
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Leading within the Tensions of a Pluralistic Universe. In American Pragmatism and
Organization (pp. 73-85). Routledge.
Kinchington, F., 2019. Critical thinking in leadership: Leading change in complex contexts.
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Neumann, J.E., James, K.T. and Vince, R., 2019. Key Tensions in Purposive Action by
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Rogers, R. and Marres, N., 2016. Landscaping climate change: A mapping technique for
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Tombetti, E. and Mason, J.C., 2019. Takayasu arteritis: advanced understanding is leading to
new horizons. Rheumatology, 58(2), pp.206-219.
Wolberger, O. and Goldman Schuyler, K., 2018, July. Leading Change Gently: Action
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