Leading Change in Multinational Companies: Tesco and Asda Case Study

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UNDERSTANDING AND LEADING CHANGE

Contents
INTRODUCTION...........................................................................................................................................2
LO1..............................................................................................................................................................4
IMPACT OF CHANGE ON AN ORGANIZATION STRATEGY AND OPERATIONS...........................................4
DRIVERS FOR CHANGE.............................................................................................................................4
LO2..............................................................................................................................................................6
INTERNAL AND EXTERNAL DRIVERS OF CHANGE AFFECTING THE LEADERSHIP, TEAM AND INDIVIDUAL
BEHAVIOUR WITHIN AN ORGANIZATION................................................................................................6
MEASURES TO MINIMIZE THE NEGATIVE IMPACT OF CHANGE ON ORGANIZATIONAL BEHAVIOUR.......8
APPROPRIATE THEORIES AND MODEL TO CRITICALLY EVALUATE ORGANIZATIONAL RESPONSE TO
CHANGE...................................................................................................................................................9
LO3............................................................................................................................................................11
DIFFERENT BARRIERS FOR CHANGE AND THEIR INFLUENCE IN LEADERSHIP DECISION-MAKING.........11
FORCE FIELD ANALYSIS TO ANALYZE THE DRIVING AND RESISTING FORCES WHICH INFLUENCE THE
DECISION-MAKING................................................................................................................................12
LO4............................................................................................................................................................13
DIFFERENT LEADERSHIP APPROACHES TO DEAL WITH CHANGE...........................................................13
EFFECTIVENESS OF LEADERSHIP APPROACHES AND MODELS OF CHANGE MANAGEMENT.................14
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17

INTRODUCTION
Today the business world has become very competitive and volatile than ever before. The
innovation of new technologies and the increase in international competition is leading the
organization towards the change (Kaufman, 2017). In this progressive culture, organizational
change is very necessary. And it is very important for the organizations to adapt the changes
otherwise it will be left behind or the forces of changes will sweep it away. The changes in the
organization can take place in several ways like the change in structure, change in technology,
change in human workforce and change in other elements. And to survive for a long in the
market the organizations have to walk along with the world and need to do the changes
according to the changing environment of business.
The change in the organization brings the both the positive and the negative impact and the
management of the organization need to manage these changes in such a way that increases its
positive impact in the organization and decrease the negative consequences that can arise from
the sudden change in the organization (Lewis, 2019). In this assignment, there is a discussion
about the two multinational companies TESCO AND ASDA which are facing the changes because
of the globalization and increase in the competition. This assignment would discuss the impact
of changes in the strategy and operations of the business and will evaluate the influences that
drivers of change have on organizational behaviour. It will also describe how barriers to change
influence leadership decision-making and will apply a range of leadership approaches to a
change initiative.

LO1
IMPACT OF CHANGE ON AN ORGANIZATION STRATEGY AND OPERATIONS
The change in the organization brings the complete transformation in the organization. It
creates both the negative and positive impact and the managers and the leaders of the
organization need to manage these changes effectively so that it leaves the positive impact and
lead the organization towards the accomplishment of the goals and objectives (Helfat and
Martin, 2015). And to survive for a long in the market the organization need to make the
strategies according to the requirement of the changes. The increase in the competition in the
retail market and the globalization has made companies like TESCO and ASDA to do some
changes in the organization to remain competitive. These changes have made the companies
refocus on its strategies and operations because the change demands the new strategies and
policies. And there is always the possibility of failure in making the changes because it can leave
the company in a worse position if the changes are not implemented properly and the proper
strategies have not made to implement those changes. Therefore it is very necessary to refocus
on the strategies before making any changes in the organization.
DRIVERS FOR CHANGE
Drivers of change are the factor which arises the need for changes in the organization. These
changes demand the change in the structure and processes of the company (Medland, 2015).
There are some drivers of change which have to lead the organization like TESCO and ASDA to
make the changes in the organization.
GLOBALIZATION
The globalization and the increase in competition have made a great impact on the business of
TESCO and ASDA. Globalization is the process by which organizations develop their business all
over the world. And due to the increase in global competition, the companies are doing many
innovation and changes in order to be competitive in the global market. And this globalization

in the world has made the companies to do the developmental changes in the organization
(Payonk, et al., 2015).
MARKETING INNOVATION
The advancement in technology has made the many innovations in the methods of marketing
and these new marketing methods demand the changes in the marketing strategy of the
company (Grimpe, et al., 2017). Today the companies are adopting the many new technologies
like internet marketing, marketing through social media, etc. This advancement has made the
total change in the marketing strategies of TESCO and ASDA and they are now adopting more
technological marketing than the traditional marketing method.
INCREASE IN COMPETITION
The advancement in technology and globalization has increased competition in the market.
TESCO and ASDA are also getting tough competition in the market with companies like
Sainsbury, Amazon, etc. This increase in competition needs the change in the strategies and
policies of the company in order to meet the demand and wants of the customers and market
(Chakraborty, et al., 2015). This brings the transformational change in the company because it
makes them refocus on operational and strategic planning.
TECHNOLOGICAL CHANGE
The innovation and the advancement in technology bring rapid change in the working process
of the organizations and making the companies replace the existing work process with the new
one (Freeman, 2018). Today the companies are installing and upgrading the new technologies
in order to get efficient and effective work in less time. This advancement of technology is
bringing the transitional change in the companies.

LO2
INTERNAL AND EXTERNAL DRIVERS OF CHANGE AFFECTING THE LEADERSHIP, TEAM AND
INDIVIDUAL BEHAVIOUR WITHIN AN ORGANIZATION
INTERNAL DRIVERS OF CHANGE IN TESCO
Expansion of the business: It is the change which brings opportunities for the development of
the product and brings the growth in the business. The expansion of business increases the
responsibility of the leaders and all the employees because this process demands the more
efficiency and effectiveness in the work and needs to change the structure and processes of the
company which may increase the confusion between the employees. But it also brings the
opportunities to develop and with the growth of the organization the employees also grow.
Earning Profits: The main aim of any organization is to maximize the profit this leads to TESCO
in expansion and diversification of the business. And the expansion and diversification of
business bring the many changes in the operational and strategic planning of the company
which affect the leadership, team and individual behaviour of the employees in an organization
(Haddock-Millar and Rigby, 2015).
Cut-throat Competition: The increase in competition in retail marketing is increasing day by
day. Tesco is also having many competitors like Sainsbury, Amazon, etc. and to compete with
the other companies it is very necessary to implement the new ideas and install the new
technologies. And this change in the technology and strategy of the company affect the
leadership and individual behaviour of employees of the company.
EXTERNAL DRIVERS OF CHANGE IN TESCO
The external factors which affect the leadership, team and individual behaviour of the company
are the political, economic, social, technological, environmental and legal changes. With the
change in the world, every company need to face changes. And these changes may affect the

company and to analyze these changes the PESTLE analysis of TESCO has been discussed (Price
and Moore, 2018).
Political Factor: Political situation of the country control the performance of TESCO as the
company has to follow the rules and regulation made by the government and the political
stability of the country is very important for the smooth execution of the company.
Economic Factor: It is one of the most important factors which bring the change in the
organization as it is having a direct relationship with the profit (Modica, and Reggiani, 2015).
The high rate of unemployment, interest rate, inflation, money supply, competitor’s prices, etc.
affect the business of the company and lead towards the change in the organization which
create the great impact on the leadership, team and individual behaviour of the company.
Social Factor: The change in the needs and wants and lifestyle of the people lead the changes in
the organization as the demand in mass shopping of the people lead the TESCO to do the
changes in the range of the products like with food items it is also moving towards the non-food
items like electronics, clothes, mobiles, etc. and providing the convenient shopping to its
customers.
Technological Factor: The new invention and advancement in technology drive the organization
towards the changes. To satisfied and attract the customers it is very important for the
organizations to provide better facilities (Nguyen, et al., 2015). TESCO is also making the change
in its technology and providing the facility like a self check-out system, electronic shelf labelling,
etc.
Environmental Factor: The environmental issues like less consumption of resources, less
wastage of raw material and least environmental damage lead the organization towards the
environmental changes. And the leaders of the company have to make future policies according
to the environmental factor.
Legal Factor: The legal factors refers to the laws and policies of the country and the legal
policies like pricing policy, monopoly policy, instance licensing, etc. affect the business of the

TESCO and it need to make the changes in the company and it need to follow all the laws and
legalities (Aithal, 2017).
MEASURES TO MINIMIZE THE NEGATIVE IMPACT OF CHANGE ON ORGANIZATIONAL
BEHAVIOUR
For the continuous growth and development of the company, the process of change is very
important as it is an essential part of the company to remain in the competition. But with
certain advantages, change is also having its disadvantages and the sudden change in the
organization brings various consequences. And the management of the organization needs to
manage the changes in an effective way so that it leaves a positive impact in the organization
(Brunsson, and Olsen, 2018). There are some measures which can be taken to avoid the
negative impact of the change in the organization.
 Define the change and align it to business goal: Before making any change in the
organization it is very necessary to clearly define the changes in the organization and
align it with the goals and objectives of the company. It is very important to know the
need for the change and review of the strategies and policies of the company. Communication strategy: Before making any changes it is very necessary to make the
communication strategy which aware the employees regarding the certain changes
which are needed to take place in the organization. If the employees are aware of the
changes then it would be easy for the company to implement the changes in the
organization (Lewis, 2019). Leadership: An effective leadership is very necessary to implement the changes in the
organization because leaders are the one who motivates and inspires the employees
and lead the organization towards the accomplishment of the goals (Bolman and Deal,
2017). The leaders of Tesco are also understanding the change in the organization and
implementing these changes in a systematic manner so that it brings a positive impact
on the company.

 Provide effective training: The sudden change in the organization brings many problems
and does the major impact on the efficiency and effectiveness of the work. So it is very
necessary for the company to give effective training to the employees related to future
changes. If the employees are having the sound knowledge of change then it can
minimize the negative impact of changes.
APPROPRIATE THEORIES AND MODEL TO CRITICALLY EVALUATE ORGANIZATIONAL RESPONSE
TO CHANGE
ADKAR INDIVIDUAL MODEL OF CHANGE
Whenever the change takes place in the organization it is not only the organization which
changes but also the individual of the organization faces the changes. ADKAR model helps the
leader to find the behaviour of the individual and provide the plan for the progress of individual
(Blomqvist, 2017). And it is very necessary that the employees should support the change in
order to make the change successful.
 Awareness: the employees of the organization must be aware of the changes that why
the change is happening and why it is needed in the organization. This awareness
motivates the employees and makes the change successful.

 Desire: to make the change successful it is very necessary that the employees should
support and take part in the change process because the employees are the one who
executes the changes and leads the organization towards the desired goals.
 Knowledge: the employees should have the knowledge of how to change and what are
the practices should be taken to imply the changes successfully.
 Ability: the individual must show the ability to adopt the changes and perform it well in
order to achieve the desired changes in the organization.
 Reinforcement: the new change should be reinforced within the employees and it is
very necessary to sustain the change by taking corrective actions.

LEWIN’S CHANGE MANAGEMENT THEORY
Lewin’s model of change refers to the constant change which moves from one change to
another. This is the simple model for understanding the change and widely used by many
organization. This model is having three stages unfreezing, changing and refreezing which are
discussed below (Cummings, et al., 2016):
Figure 2: Lewin’s Model
 Unfreeze: It is the stage where the managers motivate the employees to accept the
change and come out to the comfort zone and move towards the new change. And
make them believe that the change is taken place for their betterment.
 Change: It is the stage where the change implemented in the organization and creates
much confusion between the employees. In this stage, managers need to give the
proper training to the employees and motivate them for the changes.
 Refreeze: It is the stage where the people get comfortable with the current working
environment and increase the efficiency of the work.

LO3
DIFFERENT BARRIERS FOR CHANGE AND THEIR INFLUENCE IN LEADERSHIP DECISION-MAKING
To identify potential and actual barriers for the change it is very necessary for the organization
to conduct the baseline assessment. Barriers always create a negative impact on the daily
production processes of an organization. And to prevent the organization from the barriers it is
very necessary to identify the major barriers to change and take the corrective measure to stay
away from them (Parsons, et al.,). Some of the major barriers of change and their influence in
leadership decision-making have been discussed below:
Lack of employee involvement: In change management, this is the most common barrier which
influences the most. The sudden change in the organization creates many consequences and
the employees generally get afraid of any new change as they feel more comfortable with the
existing process (Marin-Garcia, and Bonavia, 2015). But the leaders need to motivate the
employees to adopt the changes and also involve the employees in the change process which
will make them comfortable with the new change. The leaders also need to make decisions
regarding the training process before making any changes in the organization.
Lack of effective communication strategy: An effective communication strategy is very
necessary before introducing any new change in the organization (Coombs, 2017). Leaders
need to make the proper communication strategies because the sudden announcement of
changes can lead to the resistance of change in the employees. So it is very important for the
leaders to make them aware of the changes and need to tell how the change will affect them
and how they can adapt the changes.
Unknown current state: Change always increase the complexity in the process of the
organization and to introduce and implement the changes without proper assessment and
understanding the current blueprint of the company can lead to the major failure of the
change. Therefore it is very important for the leaders to make the current state blueprint of the
company and understand and clear the current blueprint of the company with the employees.