Leading Change: Impacts of Drivers of Change on Organizations Report

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This report delves into the intricacies of leading change within organizations, using Tesco and Asda as case studies. It begins with an introduction to the subject, emphasizing the importance of adapting to market dynamics. The main body of the report compares the impacts of various change drivers, such as political, economic, socio-cultural, and technological factors, on the strategies and operations of Tesco and Asda. The report analyzes how these drivers affect leadership, team behavior, and individual performance. It then explores appropriate theories and models, including the Force Field Analysis, to minimize the negative impacts of change. Different leadership approaches and change management models are also discussed to provide a comprehensive understanding of the topic. The report concludes by summarizing the key findings and insights gained from the analysis.
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Understanding and Leading
Change
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
P1Compare the impacts of drivers of changes on the strategy & operations through two
organizations................................................................................................................................3
P2 Impacts of external and internal drivers of change that affects leadership, team and
individual’s behaviour in the organizational context.................................................................10
P3 Appropriate theories to minimize negative impact of change on organization’s behaviour 14
P4 Force Field Analysis model..................................................................................................16
P5 Different leadership approaches and change management model.......................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
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INTRODUCTION
Leading change needs developing new experience for individuals that discloses new
opportunities while drive strategies influence individuals to take change successfully in the
marketplace. While understanding and leading change supports individuals to deal with their
problems which comes within initiating and imposing change. it gives huge contribution in
organization’s profitability and makes highly competent in the business market. When
organization keeps constant changes in their operations and products as per the market situation
that automatically makes organization sustainable in it’s market (Allen, 2018). To understand
leading change has an example of Tesco company. It is a British multinational groceries
company and famous as general merchandise retailer in the UK market. It is headquartered in
England, UK which posses’ wide range of products. The main objective of the report is to
provide understanding about drivers of change which impacts on organization’s strategy and
operation through two organizational examples i.e. Tesco and Asda.
MAINBODY
P1Compare the impacts of drivers of changes on the strategy & operations through two
organizations
Organization Changes Drivers of
change
Impact on strategy Impact of operations
Tesco Pest Political
change
Organization has short-
term strategy to expand
it’s trading in multiple
countries. But political
changes impact on it’s
strategy negatively
because according to
UK’s government norms
an organization cannot
retail it’s products in
multiple countries as
Organization provides
safety and security
individuals within
workplace. it is major
operation of the
organization because to
keep all staff safe
requires good
maintenance and
effective managerial
skills therefore it offer
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result Tesco unable to
sell it’s products in other
countries. Due to this it
unable to influence
demands of products in
other countries which
directly impacts on sales
revenue of products
negatively (Archer and
et.al., 2019).
safety and security
policy to individuals
which ensures them
that no employees are
discriminated by senior
authority. Whereas
political changes i.e.
workplace place safety
act influences this
operation of company
positively. With this
policy organizational
enables to maintain
individual’s wellbeing
within company as
well as government.
Economical
change
Organization has strategy
to offer high quality
products to all customer
in UK whereas economic
factors i.e. currency
fluctuation etc. give
impact on retail sectors
negatively. While Tesco
is UK based organization
whereas it has currency
exchange rate policy that
is major strength of the
business. Due to this
strength enables to
overcome currency
Human resource
management of Tesco
has goal to improve the
number of training
scheme for staff and
development in
recruitment process.
Whereas economical
factor gives negative
impact on this
operation because it
requires high cost
investment in training
schemes. Due to lack
of funding source
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fluctuation issue and
improves purchasing
behaviour of customers
in the marketplace. This
driver factor gives
positive impact on
organization’s
performance and
profitability.
unable to perform this
function effectively in
the organization
(HUNTER, 2017).
Socio-cultural
change
Management of
organization makes
decision to offer home
delivery services to the
customer which gives
values to them and
encourages to buy
products without wasting
time. On the other hand,
UK’s customer who are
highly updated for e-
commerce retailing and
love to prefer online
shopping instead of
traditional shopping.
Such kind consumer’s
buying behaviour change
impacts on
organization’s decision
positively. Thus,
company potentially
generates high profit
The main function of
the operation
management is to fulfil
all needs of customers
by offering high
quality products and
services. The operation
management of Tesco
plc impact by social-
cultural factors
positively because they
offer wide features in
products which meet
each class demands i.e.
upper, middle and
lower class effectively
and in return generate
lifetime loyalty of
customer’s on brand.
Thus, socio-cultural
change influence’s
operation of business
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margin on it’s products
and influence customer’s
shopping experience.
overall socio-cultural
factor influences
organization’s decisions
effectively.
in the global market.
Technologica
l change
Organization has planned
to launch self-check-out
machine. It is new
emerging technology for
past few years but
currently it is highly used
by retail stores (Iles,
2017). Tesco gets
positive impact of
technological change
because it influences
success of plan. With this
technology company
improves employees
selling efficiency in the
workplace and saves
times of customers.
Online operation is on
of the major function
of the Tesco because it
runs world’s largest
grocery home shopping
services through it’s
own website
Tesco.com. this
website has been
launched in 2000
which is still managed
by Tesco. With the
website organization
aware it’s customer
about new products
and services and offers
different payment
methods. Thus, it
manages all functions
effectively within
organization. So
technological change
influences operation’s
efficiency effectively
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within company.
Organizatio
n
Change
s
Drivers of
change Impact on strategy Impact of operations
Asda Pest Political
change
Asda is a British
supermarket chain
which trades wide range
of products like Asda to
the customer.
Organization has
strategy to improve
employee’s productivity
within workplace.
employment law is one
of the most effective
factors of political
change (Jack and et.al.,
2018). UK’s government
has goal to eradicate
unemployment rate from
the country so it recruits
large number of
vacancies for those who
does not have job or
does not get any
platform to perform
themselves due to
financial issue. Thus,
Asda gets positive
impact on it’s strategy
through political factors
Asda has operation to
build customer welfare
in the market. So, it
introduces incentives
and numerous schemes
for customer’s
benefits. Therefore, it
focuses on all issues
that associated with
environment, climate
changes, public
awareness and reduces
footprints so that
maintain public
wellbeing.
Organization gets
positive impact on it’s
operation through
political factors such as
UK’s government
promotes
organization’s
operation effectively.
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because it gets large
number of staff for
supply chain who has
willing to work on lower
cost. Even it gets
support from
government as well. thus
this political drivers
influences success of
recruitment strategy in
the business market.
Economical
change
Asda has goal to give
high availability of it’s
products in all over the
world. But economical
factor i.e. exchanges rate
impacts on long-term
strategy (Jones and
Comfort, 2020). the
reason behind is that
Asda does not have
currency exchange rate
policy that causes it
unable to offer it’s
product to all over the
world.
Organization provides
high availability of it’s
products on it’s retail
stores which are
located in multiple
countries. This
operation is performed
by suppliers
effectively. So,
organization recruits
large number of
candidates who can
perform this operation
effectively but low
wage act gives
negative impact on
organization’s
operation. Due to low
wage act organization
cannot recruit labour
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on lower cost as result
unable to improve high
productivity of
suppliers for supply
chain. Thus, company
unable to give high
availability of product
to the customer.
Socio-
cultural
change
Organization uses
market segmentation
strategy to target it’s
particular customer’s so
that it can build loyal
customers which helps
to generate sustainable
revenue on product
selling. Demographical
changes are considered
one of important factors
of socio-cultural change.
with the market
segmentation strategy
organization targets two
markets demographical
and psychological
market segments (Knoll,
Matthes and Heiss,
2020). Thus, company
enables to give values to
each individual as per
their needs and
HR management of
Asda has function to
trained it’s staff
effectively so that
individuals can give
effective service to the
customer and leads
satisfaction in them.
Therefore, HR
managers organization
T&D class per four
quarter month to make
individual skilful and
competent. This
operation influences by
socio-cultural factors
because it improves
buying behaviour of
customers within
stores.
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expectations and builds
good brand image in
customer’s mind. Thus,
socio-cultural factors
give positive impact on
Asda plc performance.
Technologica
l
Organization takes
decision to control on
stock so that no wastage
takes place in the
inventory as well as it
reduces cost of
inventory. Whereas new
emerging technology of
stock control influences
organization’s decision
because it gets chance to
keep control on it’s
stock and saves cost of
extra expenditures as
result improves
economical
infrastructure of
company.
Asda offers two type
services online and
offline retailing
services. Online
retailing and offline
retailing operations are
performed by staff
effectively. Whereas
technological factors
improve efficiency of
the operation
effectively such as
wireless devices
influence online
retailing operations
effectively while self-
check-out machine
influence’s offline
retailing efficiency
within workplace.
P2 Impacts of external and internal drivers of change that affects leadership, team and
individual’s behaviour in the organizational context
Change Internal/ Impact on
leadership
Impact on
team/department
Impact on
individual
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external behaviour behaviour behaviour
Management
change
Strong
workforce
(Internal
driver)
Strong workforce
is the major
strength of Tesco
that gave positive
impact on
leadership
behaviour such as
employees
promoted
management
change by
following all rules
and regulation. In
addition,
management did
not have to
motivate it’s staff
through rewards
and training
schemes.
Leadership
approach
influenced through
external drivers
for leading change
in management
successfully.
This driver also has
supported team and
department to
accept change in
management and
encouraged them to
follow all decision
which was taken by
new management to
led high
profitability in the
business. Thus,
Strong workforce
promoted
management
change instead of
resistance
effectively. Thus,
management
change was
promoted by team
and department
behaviours.
This internal
driver influenced
individual’s
behaviour to
change in
management.
For example,
when strong
workforce
presented within
workplace that
encouraged
individuals to
accept change
effectively.
Product
development
Good
financial
performance
Good financial
performance
promoted product
Tesco has good
financial
performance that is
Internal factor
also has
impacted on
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(Internal
factor)
development
change in the
organization. for
example, Tesco
enabled to invest
high funds on
R&D department
for the product
development.
Whereas
leadership gained
positive impact
through good
financial position
because it enabled
to train it’s staff
more effectively
through training
classes.
major strength of
company, so it
encouraged it’s staff
to give high efforts
in their working
performance and
motivated them
through god
incentives and
bonus schemes. It
gave productive
impact on team and
department
behaviours.
individual’s
behaviour for
example when
organization
gave additional
money in term of
compensation
that encouraged
individuals to
sold it’s new
products in wide
rage to the
people
effectively.
Impact on
revenue
Instability in
Corporate tax
policy
(External
factor)
Instability in
corporate tax
policy gave
directly impact of
revenue of the
company such as
when corporate
tax rate became
high as result
reduced revenue
of the company. It
directly impacted
When rate of tax
increased then it
directly impacted
on team and
department
behaviour because
they had to change
their operation to
overcame the
impact. New
adaption of
operation led
This driver
impacted on
individual’s
behaviour as
well because
when tax rate
became high
then purchasing
behaviour of
individuals
declined that
reduced selling
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