Drivers of Change and Impact on Strategy & Operations Analysis

This report provides a comprehensive analysis of organisational change, focusing on its impact on strategy and operations using TESCO as a case study. It compares different organisational structures and evaluates how internal and external drivers of change affect leadership, team, and individual behaviors. The report further assesses measures to minimize the negative impacts of change on organisational behavior, including risk management, strategic management, internal environment development, and cost leadership. Additionally, it considers the psychological impact of change on individuals and team dynamics, providing insights into effective leadership and management during periods of transition. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Unit 17 Drivers of
Change and
Organisational Impact
Part 1

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations...................................................................................3
Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation..................................................................6
Evaluate measures that can be taken to minimise negative impacts of change on organisational
behaviour................................................................................................................................7
Consider the psychological impact of change on people. How change impacts on team
dynamics and how people are led and managed..................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Change is the important development aspect which majorly covers adopting a new and fresh
approach for the benefit of a company. Change is considered as major part of a business which
develops new process in order to adopt few approaches for the business entity. In today's
competitive world it is essential for a business entity to focus on change process in order to meet
certain goals and procedures (Aitkenhead, Robinson, and Garratt, 2019) Change management is
essential for a business organisation in order to develop new business strategy. In this report
example of TESCO company is taken into consideration. The company is based in London,
United Kingdom which is an essential part of business to develop strategic goals after change.
Major aim of developing this project is to cover major aspects of environmental change in order
to understand external and macro environment. This project covers importance and significance
of change in the organisations to develop effective competitive edge. This report includes major
factors which can minimise negative impact of potential of a company. The report also covers,
leadership and its advantages for development and control of organisational activities.
PART 1
Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations
In corporate world, it is essential to develop major practices related to change as it also
focuses on key development features. The organisational examples are also compulsory to
described in a precise manner for long term growth of company. Impact of change on
organisation's strategy and operations should be on major factors that are compulsory for
individual growth (Bohman, 2019). Main focus of a business entity should be on dealing with
change in order to change the working conditions of the company. In order to compare situation
of change there is a comparison provided for Marks and Spencer and TESCO.
The comparison is mentioned below:
Basis Marks and Spencer TESCO
The company follows an
organised structure since a very
long time. Also Marks and
On the other hand, TESCO
follows, hierarchical structure in
order to develop various

Structure
Spencer should focus on
implementation of structure in a
precise manner. Marks and
Spencer should focus on
structure in a precise manner in
order to lead the marketplace.
Company should also follow
ethical practices in business for
long term development in order
to briefly analyse the situation.
All major companies at the
marketplace, majorly focus on
developing fair and positive
environment for business
growth.
objectives and goals for long term
growth of a company.
Hierarchical structure is based on
an approach which is suitable for
systematic growth. TESCO sets
its competitors in hierarchical
orders published by management
to lead the marketplace. Top level
management of TESCO is
effective in development of major
procedures to develop effective
competitive advantage. TESCO
majorly also focus on key
resources which should be
managed by hierarchy.
Strategies
Strategies are important for a
company in order to develop
effective competitive advantage.
The strategies are also majorly
important for a company to be
decided by strategic
management. Marks and
Spencer should focus on
developing a systematic strategy
which is majorly important for a
career growth. All major
strategies are important to be
carried out in a professional
manner for long term growth of
the organisation. It is considered
as major function of a company
TESCO should majorly adopt
effective strategies in order to
develop a good approach with
competitors. There is a need of
developing a major strategy with
the consent of board of directors.
In the major competition time,
strategy formation helps in
developing a competition role.
The company also majorly focus
on key development and aspects
to develop major goals and
objectives.

to develop effective strategies to
develop appropriate and
effective approach (Boyatzis,
and Cavanagh, 2018).
Operations
In the era of stiff competition
between companies. Operations
management is the major body
of a company which is essential
for product development law.
The main focus of a business
should be on business
development using operations
and productions management
for good of company. The
operations management is also
responsible for key growth and
development of a business by
setting procedure for product
development. Focus of
operations management in order
to develop major parameters for
business growth. Operations are
managed by a company for
handling majority of employees.
Operations management is also a
key body which is responsible for
quality management. The
operations management is related
to product formation according to
the wants and needs of customers.
In the recent times, TESCO has developed a major plan which is essential for business
expansion. The hardest task for management of a company is to develop employee goals and
objectives which are effective for the business firm. Company majorly considers goals and
policies according to the requirement of employees and frame strategies accordingly.

Evaluate the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation
In the functioning of a business organisation, there are complex and rigid drivers of change
which majorly impacts on a company. The drivers of change are in form of internal and external
factors which put an emphasis on major objectives and goals. Company in the international
marketplace focus on implementation of major drivers of change in order to shift and form
operations. TESCO face the following drivers of change at the marketplace:
Internal factors
 Organisational culture- The organisational culture is the combination of different
factors which majorly related to a society. Organisational culture also develops a key role
in formation of the internal environment for focused approach. The company should also
formulate and achieve goals according to culture in form of employee attitude. Beliefs of
employees are also major contributors to internal environment which they gain from
different cultural practices (Georgiadis, Sarigiannidis, and Theriou, 2021). TESCO
handle organisational culture in a precise manner by practising company policies in a
significant manner. All long term and short term goals and targets are achieved with
formation of systematic organisational culture.
 Employees moral- There is a crucial role played by employee morale in order to develop
mental strength in employees. Change is faced by a company related to employee morale
in order to develop emotional intelligence in them. Also the main focus of a business
entity is to increase employee moral from time to time as it is major part of change
management. Company should also frame a good planning frame work for its long term
development in competitive marketplace.
External factors
 Political factors- The political factors are related to government and its policies related
to the business world. It is also a key role of a company to develop political factors in a
major sense for business expansion. Political factors in UK are now favourable for
companies but earlier due to Brexit they were not in favour. The political decision of
BREXIT put a negative harm on companies. This demanded change in organisations like
TESCO to change their policy and plans for effective performance. Political factors are

considered by a business in a major sense along with business laws to perform
operations.
 Economic factors- In a business, there is a vital role played by different economic
factors as they impact on major growth of a company. The economic factors like
inflation, deflation and recession rates impact on the financial performance of a business.
Also the monetary policy of a country also determines economic development of a
company. The monetary policy of a company is framed by a business entity in order to
develop economic framework. TESCO follows all factors in a systematic manner for
continuous improvement in the business.
 Social factors- The social factors are related to traditions and beliefs of employee when
they relate to society. Social factors like culture mainly impacts on the internal
environment of a company in order to develop business practices. TESCO has given
responsibility to human resource management for handling major social factors that are
important for company growth.
 Technology factors- These factors are majorly related to information and technology
which is helpful for a company to develop accurate and quick operations. The technology
factors are based on use of advanced computer systems which supports a business in
functioning. The technological factors also helps a business to develop a customer
relationship management software which helps in increasing customer satisfaction.
Evaluate measures that can be taken to minimise negative impacts of change on organisational
behaviour
The organisational behaviour is a response given by a business to the external environment
and conditions. This is also a duty of strategic and human resource management to develop
positive environment related to organisational behaviour (Grice, 2021). In the recent times, most
of the companies focus on minimising negative impacts of change on a company. Negative
impacts of change management are hard to be tolerated by a company like TESCO. This is
important for a company to majorly evaluate practices like following to deal with market forces:
 Risk management- The minimisation of risk is essential using appropriate models and
theories in a business organisation. Risk should be minimised by setting major targets and
objectives and with the help of advise of management. Overall development of a
company is majorly dependent on different risk related factors that are crucial for a

business. Risk management is also considered as an effective term which helps a business
to increase its profitability in a set period of time. Major focus of a company should be on
risk management models that are universally adopted for overall growth of company.
 Strategic management- Strategic management is a major business related body which is
helpful in developing a systematic planning framework for the business. Also, strategic
management of a company is effective to analyse skilled and trained workers who work
for company's welfare (Workman-Stark, 2020). The strategic management of a company
is essential part which is supportive in development of a company. In order to develop a
precise approach at a marketplace, strategic management plays a crucial role.
 Development of internal environment- The internal environment of a business entity, is
essential to be developed within a short time frame. It is combination of major factors,
which helps in improvement of performance of employees (Head, Song, and Mazanec,
2018). This also supports a business in increasing productivity of a employees to gain
objectives and goals.
 Focus and cost leadership- The cost leadership is a major method which helps a
business to form effective cost of a product at the marketplace. In a business it is major
role of operations management of a company to develop focus on management and
employees. This will support the business entity to develop a key value chain which is
cost effective. Cost leadership also helps TESCO to evaluate different measures which
are beneficial for business development on a major basis.
The marketing management can apply the following models to deal with change:
STP marketing is a three step framework segmentation, targeting and positioning. In this
process firstly companies segments their market into groups then targets the customer base
accordingly and lastly position the product according to the targeted market behaviour and
personality. It is effective in the market as it break down the wide market into smaller groups
which make easier strategies to reach to the potential customers rather than using generic
strategy which uses more time and resources.
 Segmentation-Segmentation is about dividing wide group into smaller on the basis
common traits in people which help in engaging a new customer base, segmentation is
basically divided on the basis of demographics, psycho graphics, values, life stages and
behaviour. Marks and Spencer segments cost conscious groups, it uses demographic

segmentation to target customer base for their products. Demographic segmentation
includes age, marital status, gender, social class, occupation and ethnicity. It is important
to do segmentation in the organisation order to increase sales and profit.
 Targeting-In targeting firstly company views the size of segment, then marketers again
split from that segment and take the part which is useful to the company then analyses it
from the financial perspective, lastly it identifies the opportunities and profit that can
earned by that segment. Marks and Spencer targets 30 plus age group with high income
and executive line of work, keeping in mind the age group it serves simple and basic
clothing to the customers (Hobbs, 2018) Marks and Spencer attract their customers by
there quality, service, value, innovation and trust. In the corporate world it is compulsory
for the companies to perform systematic targetting in order top develop competency
edge.
 Positioning-After segmentation and targeting last step is positioning which means
placing right thing at right place, brand positioning is examining the product and services
according to the selected segment. Marks and Spencer are able to position there products
apart from the competitors and had created a strong and positive group around their
brand, by keeping desires and expectation on the front foot and it's top priority is to serve
quality. The strategy used by Marks and Spencer for positioning is it fastly responses the
customer insights and problems.

Consider the psychological impact of change on people. How change impacts on team dynamics
and how people are led and managed.
Psychological impact of change on people
The change is considered as an important part of the business which creates major impact
related to psychological and physical. It is major role of a management to develop major
practices to facilitate psychological impact that is developed by the change. The main impact of
psychological change is, it creates a different mindset of employees by which they resist in
performing different business activities. The perception of employees also change as a
psychological impact of change.
How change impacts on team dynamics
The change also impacts on team dynamics as whole organisation is impacted with the
change and its dimensions. Team leader and its members are changed because of new
organisational culture developed after change. It is also one of the main role of a team leader to
implement best techniques of leadership in order to manage team with more efficiency. Team
member's behaviour and goals are also changed with the impact of change in the organisation.
Also the mindset and perception of employees are also changed as a part of change in the whole
organisation.
The way people are led and managed
In the functioning of a business, employee are led and managed by team leaders and top
level management. Team leaders are responsible for managing different team members with
utmost priority and responsibility. The team members should be also managed by an organisation
with support of effective leadership style. It is main duty of the organisation to focus on team
development theories along with implementation of their application. Democratic leadership
style is also the best way to manage people as it facilitates employee participation and decision
making.
Systems theory
The systems theory is also known as social systems theory which can be used by a
business entity to develop complex arrangement of elements including individuals and their
beliefs related to a company. This theory is effective in providing development in an
organisation by bringing continuous improvement in organisational functions. The Application
of systems theory also helps an organisation to systematically plan for change in order to lead the

marketplace and gain competitive advantage. The systems theory also helps a company in
overcoming various challenges and issues that arise at the marketplace related to change.
Bruke Litwen model
The Bruke Litwen model of change-management relates to development of an
organisation as it is universally adopted approach. It is also one of the major role of strategic and
top level management of a business to implement this theory with effective supervision and
control. The Bruke Litwen model includes the consideration of various drivers of change and
ranking them according to their importance. This technique helps a company to easily manage
change along with development of new strategies to face the change. The Bruke Litwen model is
adopted by various companies in the international and national marketplace to face the change in
a precise and systematic manner.

CONCLUSION
From the above stated report it can be concluded that change-management is the most
significant approach developed by a business entity. This approach is majorly helpful in
increasing competitive worth of company by developing different business tactics. This project
concludes the role played by strategic management of a company in order to deal with change.
The above stated discussion concludes the development of leadership approaches which are
mainly beneficial in increasing competitive strength of a company. This project also concludes
significance of change management models and theories in a business entity.

REFERENCES
Books and Journals
Aitkenhead, S., Robinson, K., . and Garratt, H., 2019. How the Leading Change, Adding Value
framework enables nursing, midwifery and care staff to transform practice. British Journal of
Nursing, 28(18), pp.1210-1212.
Bohman, K., 2019. Leading Change From the Middle: A Qualitative Study on Middle
Managers' Role in Organizational Transformation.
Boyatzis, R.E. and Cavanagh, K.V., 2018. Leading change: developing emotional, social, and
cognitive competencies in managers during an MBA program. In Emotional intelligence in
education (pp. 403-426). Springer, Cham.
Georgiadis, V., Sarigiannidis, L. and Theriou, G., 2021. Leading change and
Plato. International Journal of Organization Theory & Behavior.
Grice, C., 2021. Leading forward by salvaging for the future. Future Alternatives for
Educational Leadership: Diversity, Inclusion, Equity and Democracy, pp.27-37.
Head, B.A., Song, M.K.,. and Mazanec, P., 2018. Palliative nursing summit: Nurses leading
change and transforming care: The nurse’s role in communication and advance care
planning. Journal of Hospice & Palliative Nursing, 20(1), pp.23-29.
Hobbs, B., 2018. The Relationship between a Pastor's Perception of Credibility, Focus, and
Church's Organizational Crisis and the Process of Leading Change within the First Five
Years of His Tenure (Doctoral dissertation, Southeastern Baptist Theological Seminary).
Kinchington, F., 2019. Critical thinking in leadership: Leading change in complex contexts.
In International Perspectives on Leadership in Higher Education (pp. 31-43). Routledge.
Premi, H. and Pahwa, M., 2020. Book Review:“Leading Change”. Gyan Management, 14(2),
pp.72-79.
Ruben, B.D. and Gigliotti, R.A., 2019. The Role of Resonance, Activation, and Cultivation in
Leading Change and Transformation. In Leadership, Communication, and Social
Influence. Emerald Publishing Limited.
Wolberger, O. and Goldman Schuyler, K., 2018, July. Leading Change Gently: Action
Research on Workplace Mindfulness. In Academy of Management Proceedings (Vol.
2018, No. 1, p. 14150). Briarcliff Manor, NY 10510: Academy of Management.
Workman-Stark, A., 2020. Inclusion starts with “I”? The missing ingredient in leading
change: the case of the Royal Canadian Mounted Police (RCMP). Development and
Learning in Organizations: An International Journal.