Analyzing Organizational Change: A Comparative Study of Tesco and ALDI

This report provides a comprehensive analysis of organizational change, focusing on a comparative study of two major retail companies: Tesco and ALDI. The introduction defines change and its importance for organizational success, highlighting the need for adaptation in a dynamic market. Task 1 compares the strategic and operational changes implemented by Tesco and ALDI in response to various drivers, including political and environmental factors. Task 2 evaluates the impact of internal and external drivers on leadership, team behavior, and individual performance within Tesco, and identifies the ways in which organizational culture and financial management influence change. Task 3 examines different barriers to organizational change, while Task 4 explores various leadership approaches to effectively manage and navigate change within an organization. The report concludes by summarizing the key findings and implications of organizational change management in the retail sector.

Understanding And Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparison between two organization where there is influence of change on strategy and
operations....................................................................................................................................3
TASK 2............................................................................................................................................6
P2. Evaluation of Ways in which internal and external drivers of change affect leadership,
team and individual behaviour....................................................................................................6
P3 Measures that can be taken to minimise negative impact of change on organisational
behaviour.....................................................................................................................................8
TASK 3..........................................................................................................................................10
P4. Different barriers for Organisation change.........................................................................10
TASK 4..........................................................................................................................................11
P5. Different leadership approaches to deal with change.........................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Changes can be defined as an act through which an individual make modifications in
their existing process. For gaining strong position in market, adoption of changes is very
important for each organisation. In addition, each organisation makes changes on a specific
interval of time period so as to establish good brand image in mind-set of customers. Chosen
organisation for this report is Tesco Plc which is UK based multinational retailer chain along
with headquarters in Hertfordshire, England. Present report will discuss about the different
organisational examples who have adopt changes in their operations and strategies. In addition,
barriers which can impact the change process along with measures which are beneficial for
reducing the negative impact of change will also be covered in this report. At last, several ways
will be evaluated in which internal and external drivers can affect leadership, team and
individual behaviours along with leadership approaches which are beneficial for dealing with
changes.
TASK 1
P1 Comparison between two organization where there is influence of change on strategy and
operations
Strategy in organisation is a process in which organisation will executes its further
functions and achieve its goals and objectives. In addition, this is a way which is decided by firm
to manage its functions and operations so that present goals of firm would be achieved in easy
manner. Organisational structure plays very important role in development of company and also
define identity of organisation. There are several organisations that exist in marketplace who
performs their work for gaining profitability but in this process, each organisation have to face
several problems like decreasing sales figures, reducing profitability while performing their
duties in the market these all problems are occurred due to changes in demands and preferences
of customers (Anderson, 2016). These problems guide the managers of organisations to adopt
changes in their strategies and operations so that structure of firm would be improved in
marketplace.
In order to ensure growth in market changes are good for business organisations but it
generate risks sometime for profitability of organisation which can impact positively or
negatively on the operations of firm. Therefore, it is essential for the managers of firm to

overcome these impact with providing new services or products so that needs of customers
would be satisfied in marketplace. For understanding the change effectively two organisations of
same sector are taken in this report such as Tesco and ALDI. In Tesco, company prefers to
identifying rival's strategies before forming any decisions whereas, ALDI makes quick decisions
so as to capturing huge market share in less time. For understanding this, a comparison chart is
formulated which is given as below:
DRIVERS Tesco ALDI
POLITICAL Due to political event like Brexit,
there are several political changes
that occurred which are faced by
organisations of UK in desired
manner because of this purchasing
power of individual were reduced
that have impacted adversely on
business operations of retail
sector. For overcoming the
negative impact of Brexit,
management of Tesco have made
changes in their operations and
strategies which are given as
below:
Strategies – As the purchasing
power of customers in UK are
regularly decreasing due to which
sales figures of firm are regularly
decreasing (Fragouli, 2015). For
overcoming this impact, they have
formulated strategies like they
have started to maintained limited
products in their stores so that cost
of operations can be reduced.
Impact of Brexit have evidenced by
each retail organisation and ALDI
is one of them, they have also make
modifications in their operations
and strategies so as to convert
negative impact into opportunities.
Changes in strategies and
operations are given as below:
Strategies: ALDI have formulated
strategies like company have started
to selling those products which are
high in demand along with
providing discount offers to
customers so that customers can
buy these products in bulk.
Operations: In order to make
changes in operations as per
strategies they have maintained
only those products in their stocks
which are highly preferred by
customers. Along with this,
Management of ALDI have also
started to provide training to their
staff members so that their efforts

They have also reduce prices of
their offerings so that competitive
advantage can be gained in
market.
Operations – Company have also
make changes in their operations
such as they have implemented
advance techniques in their stores
like pay per click, home delivery
of products so that customers get
attracted towards the stores and
offerings (Kotter, 2014).
can be taken for increasing sales
figures in market.
ENVIRONMENTAL In current scenario, governmental
authorities of UK are more strict
and make changes regularly so as
to protecting environment of
nation from damage. For
overcoming the impact of these
changes, Management of Tesco
have also made modifications in
their strategies and operations
which are given as below:
Strategies: As Tesco operates its
business operations at global level
then they have duty to make
changes in their strategies through
considering environmental laws
and legislations. For overcoming
the impact of environmental
factors, they have formulated
strategies to provide reusable bags
Ongoing concern to protect the
environment and natural resources
have highly impacted on those
organisations which have not
headquarters in UK and are from
other nations. Hence, it has
provided huge impact on operations
and strategies of ALDI which are
given as below:
Strategies: For protecting the
environment in UK, company have
formed strategies to promote to use
the recyclable product at the
workplace as well as ask the
employees to use public transport
vehicles rather than their personal
vehicles so that pollution level can
be reduced.

to customers along with this, they
have also made strategies to use
hydrophobic materials so that
products can't be damaged in
those nations where the
temperature is high.
Operations: This factor have also
posses huge impact on their
operations as a result of it, Tesco
have make changes in their
operations they have started
producing those products which
are environmental friendly and
preferred by most of customers.
They have also started to provide
reusable bags to their customers
so that positive image of firm can
be build in front of governmental
authorities.
Operations: Operations of ALDI
have also witnessed changes,
because company have adopted
lean manufacturing and Total
quality management systems in
their operations so that unessential
activities can be eliminated and
wastage of operations can be
reduced. Through this, company
have not only build its brand image
in UK but also they have enhance
their customer base in market.
TASK 2
P2. Evaluation of Ways in which internal and external drivers of change affect leadership, team
and individual behaviour
Drivers of change are related with internal and external pressure which is imposed on the
organisation and encourages it to make changes. In addition, it can be imposed on strategies,
plans, process, teams or individuals or firm. However, there are several areas like leadership,
individual and team behaviour where this impact is experienced the most.
As Tesco operates its business functions at global level then several factors of internal
and external environment can impact the structure and procedures of firm. Therefore, it is
important for the management of Tesco to manage these factors effectively so that sustainability

of firm can be maintained in marketplace. There are some internal and external factors which
have impacted on their leadership, team and individuals. These factors are given as below:
Internal Factors: Organisational Culture: This culture includes belief, values and morale which are
followed by firm in order to achieve their goals. At Tesco, organisational culture of
company is highly dedicated towards providing better services to customers. In addition,
each staff members of Tesco are loyal and experienced who always support the firm in
enhancing its productivity and profitability. Due to which their suggestions are taken at
priority level in decision making process of firm because of this, employees are highly
motivated and supports their superiors in making modifications in their operations as per
the organisational culture. Organisational culture also provides positive impact on
leadership because their managers and leaders performs their duties with cooperation so
that valuable services can be provided to customers (Yoder-Wise, 2013). Furthermore,
for team behaviour this kind of organisational culture always supports such as it
encourages the team leaders of Tesco to build healthy relations with their staff members
so that effective cooperation will be built within the workplace which leads the firm
towards growth and success.
 Financial Management: Capital and funds are very necessary for each organisation
because without these any operations or functions of firm can be executed effectively.
Shortage of funds and finance can impact the overall working of team and individuals in
negative manner. Therefore, it is essential for the business managers of Tesco to allocate
financial resources so that organisational productivity or profitability would be
maintained at marketplace. For managing the funds appropriately, leaders of Tesco
should provide better training to their employees so that any wastage of funds would be
faced by management.
External drivers:
 Political: Changes in tax duties or other related aspects of political factor can impact the
profitability of Tesco in negative manner. Therefore, it is very important for management
of Tesco to consider these changes effectively and make modifications at their workplace
accordingly so that any kind of fine or penalties will not be faced by them in future.
Through making changes accordingly at workplace, individuals and team members of

Tesco will perform their duties effectively which will leads the firm towards
sustainability in market. Economical: This aspect includes overall economic performance of nation. Management
of Tesco have faced major reduction in economic environment of UK because due to
Brexit, value of pound is decreasing due to which unemployment is increasing within
UK. In order to overcome the negative impact of these, Tesco have formulated several
strategies such as they have lower down prices of their offerings and convince their
employees to work on a lower salary structure. In implementation of these strategies,
Leaders have to play very important role such as they have to convince their teammates
and employees so that their contribution can be taken for overcoming the negative
impact.
 Social: This factor involves the needs, taste and preferences of customers which can
affect the profitability of firm in negative manner. In order to deal with this impact,
management of Tesco have conduct the market research for identifying which offering of
them is most preferred by customers. In addition, they have also guided their leaders to
make changes in outlets according to demand of customers so that profitability of firm
can be improved. For implementation of these changes, leaders of firm have provided
training to their employees and team-members so that their maximum contribution can be
taken in improving sales figures of firm.
 Technological - Another factor which have influences leadership, individuals and team
of Tesco is technology. It is very important for management of Tesco to bring new
technologies in their workplace so that customer's needs will be satisfied effectively. For
this, leaders of Tesco have to provide effective training to their teammates and each staff
members so that the performs their duties by using advanced technologies at workplace.
With the help of this, productivity and profitability of firm will automatically enhanced in
market (Jones, 2014).
P3 Measures that can be taken to minimise negative impact of change on organisational
behaviour
Several measures can be taken by the management of Tesco so as to minimising the
negative impact of change. These measures could effectively supports the organisation in
adopting methods, techniques or safety procedures so as to safeguard themselves from adverse

affect of changes. In addition, taking of these measures will be prove beneficial for Tesco in
gaining sustainability and growth in market.
Recommendation for Planning
For reducing the negative impact of changes from organisational culture, Management of
Tesco can use PDCA model of change management so as to increasing positive impact of change
and reducing the negative ones. These model is briefly explained as below: Plan: In this stage, Management of Tesco have to conduct market research so that
demand of customers along with existing opportunities of market would be analysed.
Then, the firm have duty to develop several strategies so as to grabbing these
opportunities. Do: In this step, managers of Tesco have to evaluate the above formulated strategies
effectively so that effectiveness of these strategies as compare to market trends can be
determined. For e.g. Due to Brexit, management of Tesco have formulated strategies of
offering products at lower prices to customers but before implementation of these
strategies at workplace they have to evaluate these strategies along with forecasting the
demands of products and possible outcomes related with this. Check: After evaluation of effectiveness of strategies, management of Tesco have to
implement these strategies so as to making changes in their workplace. For checking its
effectiveness, management should compare the expected outcome with current outcome
so that if any difference will be identified then company can perform their operations
with their previous strategies. However, comparison is also required for the management
because it encourages the firm to make modifications in their plans so that firm can
obtain required standard easily.
 Act: After comparison and evaluation of effectiveness, managers of Tesco have to chose
suitable plans so as to grabbing available opportunities of market. In addition,
management of Tesco have to conduct training and development to their employees so
that success can be gained in future period.

TASK 3
P4. Different barriers for Organisation change
Management of each organisation can follow two states either they can make changes at
their workplace on regular basis or remain same in marketplace with old patterns. Several
companies are exist in market in which some of them make innovations on regular basis
whereas, some of them uses old patterns in their workplace. Barriers can encourage any of the
business firms for formulating effective strategies for implementing change. Change is an
important aspect for each organisation because these are necessary for betterment of firm. Tesco
have also identified some barriers which are given as below:
1. Resistance to Change – Most of individuals at workplace resist changes because they
thinks that if changes will be implemented by management at workplace then it creates
complications in their duties. Due to this barrier, management of Tesco can't able in
making changes regularly at their workplace.2. Competitive Forces - If an organisation is using advanced technologies in their
operations then it can be influenced by competitive forces. Such as, if Tesco introduces
future products in present time then it can lead the firm towards failure.
Force Field Analysis
This model was given by Kurt Lewin in 1940. this is a tool which is used by
organisations for decision-making against the changes. Purpose behind this analysis is to making
balance between force that drive changes and barriers which resist changes. For using this tool
there are some steps which are given as below:
Step 1 – Define your Problem
In it, management of Tesco have to forecast the situations and make modifications
accordingly. Through this separation, certain problem will be easily determined which will be
beneficial for managers to making those changes that can provide growth and success to firm in
future.
Step 2 – Define the Change Objectives
In it, managers have to make decisions for dealing with those kind of forces such as
internal or external which can influence the changes (Stanleigh, 2012)
Step 3 – Identify the driving forces

In this, management of Tesco have to use brainstorming techniques so as to identifying
the forces which can resist the changes. Through this they will be able in identifying strengths of
these forces and evaluate that how much it can affect the changes.
Step 4 – Identify the restraining forces
In it, managers of Tesco have to make lists of those factors that are resisting changes in
present and then find relationship of these forces with restraining forces.
Step 5 – Develop a comprehensive change strategy
This is the last step in which managers have to analyse effectiveness of existing strategies
and make modifications accordingly which is beneficial for them in future.
TASK 4
P5. Different leadership approaches to deal with change.
Organisation and leaders can only try to stimulate the workforce so that changes can be
adopted at workplace by employees. As leaders are the one who deals with organisational
changes effectively then they have duty to guide their employees and teammates so that better
contributions can be taken from them for implementing changes. Following are some leadership
approaches which can used by leaders of Tesco so as to dealing with changes. Autocratic Approach: Autocratic approach is used by the leaders when leaders have to
take quick decisions for the workplace. In addition, Leaders at Tesco can take decisions
for implementing changes as per their thinking after this, important instructions will be
provided to the employees regarding changes. Main advantage of this approach is that, it
reduces the time of decision making due to which through adopting this, leaders can take
quick decisions in necessary changes. However, it have also some disadvantages such as
when decisions will be made by leaders on their own level then it will create
dissatisfaction among employees which will not beneficial for implementation of changes
at workplace (Gupta, 2011).
 Democratic Approach: In it, leaders have to make effective relations with their staff
members so that they feel motivated and performs their duties in well manner. In Tesco,
their leaders can use this approach so as to taking innovative ideas or opinions from their
employees so that changes can be implemented at workplace. Advantages of this
approach is that, it increases dedication level of employees due to which management can

implement changes at workplace with their consent. Whereas, involvement of employees
increases decision-making time.
Illustration 1: Kotter's change-management model
Kotter’s Model: This model is helpful because with the help of this model, leaders can
support the management in making changes as well as achieving organisational goals. This
approach is useful because it encourages the leaders to make decisions with urgency and taking
support from the employees so that changes can be implemented at workplace. As per the model,
Leaders of Tesco have to make decisions in urgency then they have to guide their teammates so
that all activities of firm would be performed as per the preset vision of firm. After this, leaders
have to divide all the change process in short term activities so that after succeeding in single
activity another will be started. Through performing all these activities, leaders of Tesco will be
able in idealising the changes in workplace (Cook, 2016).
Both the approaches of leadership are more effective because they have their own beliefs
and suitability. From the above approaches, it has been also analysed that most effective
approach is democratic because it will be helpful in increasing dedication level of employees as
well as productivity of Tesco. For analysing its effectiveness management of Tesco have also