Leading Change in Retail: Tesco and Asda Case Study Analysis

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UNDERSTANDING AND LEADING CHANGE

Table of Contents
INTRODUCTION........................................................................................................................2
LO1........................................................................................................................................... 3
P1 COMPARE DIFFERENT ORGANISATIONAL EXAMPLES WHERE THERE HAS BEEN AN
IMPACT OF CHANGE ON AN ORGANISATION’S STRATEGY AND OPERATION.......................3
LO2........................................................................................................................................... 6
P2 EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF CHANGE
AFFECT LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS WITHIN AN ORGANISATION...6
P3 EVALUATE MEASURES THAT CAN BE TAKEN TO MINIMISE NEGATIVE IMPACTS OF
CHANGE ON ORGANISATIONAL BEHAVIOUR.....................................................................10
LO3......................................................................................................................................... 12
P4 EXPLAINATION OF DIFFERENT BARRIERS FOR CHANGE AND DETERMINING HOW THEY
INFLUENCE LEADERSHIP DECISION MAKING IN ORGANISATIONAL CONTEXT....................12
LO4......................................................................................................................................... 14
P5 APPLICATION OF DIFFERENT LEADERSHIP APPROACHES IN THE ORGANISATIONAL
CONTEXTS...........................................................................................................................14
CONCLUSION.......................................................................................................................... 18
REFERENCES........................................................................................................................... 19
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INTRODUCTION
Change in the process and working is necessary for every organisation to improve the
performance of the company. The organisation needs to initiate changes in the process as
per the requirement for the development and growth of the business. The change in the
process of the organisation became successful only when the employee of the company
understands the need for the change and adopt the changes for success. Tesco and Asda are
two retailing companies based in the UK and want to change the management process of
the company for business success. In this assignment, the learner comes to know about the
changing process of the companies, the impact of the changes and the strategies used for
adopting the changes.
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LO1
P1 COMPARE DIFFERENT ORGANISATIONAL EXAMPLES WHERE THERE HAS BEEN
AN IMPACT OF CHANGE ON AN ORGANISATION’S STRATEGY AND OPERATION
The change in the working process helps in maintaining the reputation in the market. It is
important to identify the area in which the changes are needed that reduce the issues and
enhance the performance of the organisation. Asda is a British supermarket founded by
Roger Burnley in 1949. The company is facing issues related to the selling of products and
thus wants to change the process for the improvement of the company. Tesco is a retailing
company founded by Dave Lewis and is facing the market issues due to which company
want to change the working process for earning a profit. Both the companies need to
analyse and evaluate the market and demands of customer for the change process also the
companies’ needs to do an emphasis on the working of the employee (Slack and Brandon-
Jones, 2018).
TESCO ASDA
Drivers for change In 2014, Tesco faced the
issues related with the
product selling and the
quality of the product and so
the founder of the company
Dave Lewis decided to
change the process of
working that will help in
overcoming the challenges
and thus he rectified factors
that need to be changed for
the business growth.
Asda is a British supermarket
company and faced the
crises regarding the quality
of the product and the
demand of the market. The
CEO of the company Roger
Burnley analysed the issue of
the crises and decided to
change the working
procedure to meet the
expectation and
achievement of the goals.
Strategy The Tesco company planned The CEO of the company
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many strategies for
overcoming the crises. The
company decided to improve
the digital business that will
increase the selling of the
product and organised the
training program for the skill
and knowledge development
of the employee that will
help in the development of
the business.
found that improvement of
the technical skills of the
employee and customer
services is important for the
success of the business and
needs to do a proper analysis
of the market and proper
planning for resolving the
crises and leads to business
success.
People The company appointed the
seniors and experts for the
completion of the work. The
responsibility of the team is
to make a proper strategy
and planning for the
execution of the decisions
made by the CEO of the
organisation. The team
needs to analyse the market
properly for the proper
planning of the strategies
that will help in gaining the
success of the company.
Asda company needs to
organise a proper training
program and campaigns that
will help in enhancing the
skill and knowledge of the
employee that will help in
improving the services of the
company. For the
improvement of the
customer services, the
company needs to assign a
team that will handle all the
issues relate to customer
services and resolve them
with the help of proper
planning and strategies.
Process The main emphasis of the
company is towards the
enhancement of the
For the enhancement of the
skills of the employee, the
Asda company wants to
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business of more selling of
the products in the market.
For that, the company needs
to organise a training
program that will help the
employees in improving the
performance. The company
wants a training program
that reduces company cost
and improves the
performance of the
employee (Tse et al., 2016).
organise the training
program and campaigns that
will help the employee in
enhancing the skill for the
better production of the
products. The company
wants a better training
program that will provide
overall knowledge about
working and improves
customer services at
minimum capital
(Chintakananda and
McIntyre, 2016).
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LO2
P2 EVALUATE THE WAYS IN WHICH INTERNAL AND EXTERNAL DRIVERS OF CHANGE
AFFECT LEADERSHIP, TEAM AND INDIVIDUAL BEHAVIOURS WITHIN AN
ORGANISATION
Tesco is a retailing company and experienced a sudden change in the selling of the products.
The company found the decreased number of customer in the company in comparison with
the previous year that reduced the performance of the company and impacted the
employee working. The SWOT and PEST analysis of the company will help in knowing the
factor that impacted the business and according to that the company needs to do proper
planning (Tse et al., 2016).
SWOT ANALYSIS
Strength
 Product quality and choice.
 Better diversification strategy.
Weakness
 Infringement controversies.
 Concentrated operations.
Opportunities
 Investment in research and
development.
 Strategic Acquisitions.
Threats
 Economic environment.
 Climate variations (Bull et al., 2016).
INTERNAL DRIVERS OF CHANGE
Technology
As the world is growing rapidly the demand of the market and customer is changing
accordingly and so the implementation of new technology became necessary for fulfilling
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the demand that will help in being competitive. Tesco needs to change the technology for
the improvement of the business (Lozano, 2015).
Culture of organisation
The culture of the organisation plays an important role in the better performance of the
employee. The Tesco Company needs to improve the culture and environment of the
company that will help the employee in better working and contributes to reducing the
issues (Lozano, 2015).
Dissatisfaction of employee
Policies and rules of the company have to be favour of the employee that will help in
fulfilling the need of the employee as the satisfaction of the employee is important for
better performance of the company. Tesco needs to modify the services that help in the
retention of the employee (Lozano, 2015).
PEST ANALYSIS
Political Factor
 The tax measure added by the UK
government affected the business of
Tesco.
 The source of income of the company
is less and thus effect on profit.
Economic Factor
 The UK government forecasted
higher economic growth that has an
impact on Tesco.
 The rate of unemployment affected
the business of Tesco.
Social Factor
 Increasing demand for the customer
affected the business of Tesco.
 Culture and behaviour of the people
have an impact on Tesco.
Technological Factor
 New invention in technology reduces
the performance of the company.
 Customer demand for digital
business affected the business of
Tesco (Barbara et al., 2017).
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EXTERNAL DRIVERS OF CHANGE
Customer demand
The demand of the customer changes with time and interest and the company has to fulfil
the demand for being in competition. Tesco Company has to change the product quality,
quantity and the variety of the product according to the demand of the customer. The
fulfilment of the demand will help the company in improving its performance (von Elverfeldt
et al., 2016).
Economy
The economy plays an important role in the development of the business. The economic
and financial condition of the company and country needs to be good for the growth of the
business. Tesco needs to improve the process that will help in enhancing the financial
condition of the company (von Elverfeldt et al., 2016).
Competition
Tesco needs to improve the strategies for being in the competition as the competitors in the
market are increasing day by day that is reducing the performance of the company. Tesco
has to implement new strategies that will help in reducing the competition and enhances
the reputation in the market (von Elverfeldt et al., 2016).
EFFECT OF DRIVERS CHANGE ON THE LEADERSHIP, TEAM AND BEHAVIOUR OF INDIVIDUAL
Tesco is an international retailing company and thus a small change in the company’s
process will affect the decision making and behaviour of the employee and leaders. The
leaders of the company are responsible for analysing the working of the company and due
to the internal and external changes, the working of the leaders get affected that will reflect
in the performance of the company and the leader face difficulties in taking decisions. The
changes in the internal drivers of the company are not beneficial for the entire employee
and thus affect the work and behaviour of the employee that will decrease the chances of
retention of the employee in the company. The change in behaviour and working of the
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employee impacts the working of the entire team and so Tesco needs to do a proper
analysis of the market and company before adopting the changes. The change in the process
also creates a fear in employees mind about the future that if they are unable to adopt the
changes it will affect the performance and is a big aspect for career development. Tesco
needs to change the drivers of the company keeping in mind the advantages and
disadvantages of the changes in the company and employee. It became important for the
company to educate the employee and leaders about the benefits of the changes that will
help in reducing the fear of future and improve the performance of the employee (Kesting
et al., 2016).
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P3 EVALUATE MEASURES THAT CAN BE TAKEN TO MINIMISE NEGATIVE
IMPACTS OF CHANGE ON ORGANISATIONAL BEHAVIOUR
Change in the working process is necessary for the enhancement of the performance as well
as for gaining the attraction of the customer in the market. Tesco is an international retailing
company and thus faces many competitors in the market. For maintaining the reputation
and for gaining the attraction of the customer the company has to adopt the changes. It is
not necessary that all the changes lead to the benefit of the company and so the company
has to take proper measures that will help in minimising the negative impact of the change
on company’s behaviour. Tesco needs to do a proper evaluation of the market for
minimising the impact (Posavac, 2015).
Communication
Communication is the best way of resolving the issues and overcoming the challenges.
Effective communication helps in reducing the negativity of the action and provides a
comfort zone to the employee regarding the changes. The leader of the Tesco Company
needs to give a proper explanation of the benefit of the changes to the employee but before
that, the leader needs to do a proper analysis of the changes that will help the leader in
communicating with the employee (Reason, 2016).
Training
It is the responsibility of the company to educate the staff of the company regarding the
changes made for the benefits of the company. Tesco has to provide proper training to the
employee regarding the changes in the process that will make it easy for the employee to
adopt the changes. Proper understanding of the changes will help in reducing the negative
impact of the changes and improves the performance of the employee. The training should
be proper and well designed so that the employee has no doubt about the changes and feel
familiar with the changes (Hayes, 2018).
Motivation
Motivation is the key point for success. The changes in the process create fear in the
employee’s mind about the future and thus force the employee to leave the job. Tesco
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Company needs to motivate its employee by giving proper guidance about the changes and
the benefits of the process change. Motivation will help in reducing the fear among the
employee regarding the changes and helps in adopting the changes. Adaptation of the
changes with motivation reduces the chances of a negative impact on the work and
enhances the performance of the employee (Vogel and Wanke, 2016).
Participation
Active participation is necessary for better performance. The leader of the Tesco Company
needs to organise the meeting with the employee that will help in the active participation of
the employee in the changing process. In the meeting, every employee needs to participate
actively to present their views regarding the changes in the process. The views of the
employee will help the company in knowing the pros and cons of the changes and thus
provides a way to reduce the negative impact of the process on the organisational
behaviour (Argyris, 2017).
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