Leading Change: Analyzing Impacts on Organizational Behaviour

This report provides a comprehensive analysis of understanding and leading change within organizations, using Tesco and Sainsbury as case studies. Part 1 compares the impact of changes on Tesco and Sainsbury, focusing on external factors like the COVID-19 pandemic and internal adaptations such as e-commerce platforms. It explores how internal and external drivers, identified through SWOT and PESTLE analyses, affect leadership, team dynamics, and individual behaviors. The report also discusses measures to minimize the negative impacts of change. Part 2 delves into the barriers to change and examines different leadership approaches, highlighting the importance of adapting to technological advancements, competitive pressures, and evolving customer demands. The analysis emphasizes the need for organizations to proactively manage change to achieve long-term sustainability and competitive advantage.

Understanding and
leading change

Table of Contents
PART 1............................................................................................................................................2
Introduction......................................................................................................................................2
LO1..................................................................................................................................................3
P1) Comparison between enterprises in context of impact of changes..................................3
LO2..................................................................................................................................................6
P2) The ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.........................................................................6
P3) Measures to minimize negative impacts of change on organisational behaviour..........12
Conclusion.....................................................................................................................................13
PART 2..........................................................................................................................................13
Introduction....................................................................................................................................13
LO3................................................................................................................................................13
P4) Barriers for Change........................................................................................................13
LO4................................................................................................................................................18
P5) Different leadership approach........................................................................................18
Conclusion.....................................................................................................................................20
REFERENCE.................................................................................................................................20

PART 1
Introduction
Changes are considered to the procedure which brings positive and negative challenges
for running an organisation. It is describes as that challenge which could create impact on the
present as well as on the future. For this, they need to implement some change for their long term
benefits. These changes could lead to a big challenge for the organisation and this would lead to
drawbacks on their revenue. Changes are challenging , yet they are crucial as it assists
organisation in reaching to their goals and objectives. Tesco is taken as base company. Tesco is a
British multinational groceries and retail organisation which was established by Jack Cohen in
1919 in UK. This organisation is specialised in selling products from diverse area of industries
such as clothing, software, financial services and many more. In this report, it covers the ways in
which changes impact the organisation's strategy and operation as well as the influences that
drivers of change have on the organisational behaviour.
LO1
P1) Comparison between enterprises in context of impact of changes
Change is a continuous process for an organisation to grow. As there are many
companies which are operating in the same area and earn a huge income. In order to be a
successful organisation, the companies are required to plan strategies which could be implement
a significant and a positive change in the organisation. An overview of the two organisation
selected for current project is provided and discussed as below:
Tesco- Tesco PLC is a well-known British multinational groceries and general
merchandise retailer that main headquarter of which is situated and located within Welwyn
Garden City, England. Tesco tend to have a diversified into areas such as the retailing of books,
clothing, electronics, furniture, toys, petrol, software, financial services, telecoms and internet
services. Further, it has been seen that Tesco is working and operating in highly competitive
environment. Thus, making regular changes has become vital and essential for this organisation.
As per this business organizations are able to develop adaption towards change which has
not been done as per heavy forces of change. There are various kinds of changes which are done
with preference over structure and technical perspective. It holds importance for business
enterprise which makes long term sustainability developed more effectively (Doppelt, 2017).

In context of Tesco it has been seen and evaluated that understanding through an
technology change along with hiving modification in its organisational operations and strategy
based on sue of digital modes of services has become vital and essential to meet the demands of
customers.
Sainsbury- Sainsbury’s is based over life an retail industry deals with product selling on
day to day basis. The organization is has been formed in the year 1869 by John James
Sainsbury. It has wider product range offered to its customers and applied marketing mix
strategy. Also focus is based over innovation with existing product and there range of daily used
products.
Further, to retain competitive and provide best quality product to its customers Sainsbury
also needs to continuously focus on making improvement in its technology and operation level to
effective meet and achieve the expectation level of customers.
When an organisation will change their policies and procedures, they would be able to
elevate their productivity as well as profitability (Li and et. al., 2020.). There is always a need of
change in every organisation. It outlines the several factors that has its contribution in the need
for change in Tesco and Sainsbury. There are many changes that organisation could make
policies, strategies, rules and legislations.
Organisation Changes-
PEST/SWOT
Drivers of
change
Impact on
strategy
Impact of
operations
Tesco One of the major
change for the
organisation is that,
they have its own e-
commerce platform
which helps the
organisation in
surviving the
COVID 19
pandemic (Leavy.,
2019.). Through e-
commerce, they
The changes
takes due to
external factor
that is COVID
19 pandemic.
Due to this,
people were
not allow to
visit their
store.
Regarding
this, they hire
As the
organisation
was highly
reliable on
their e-
commerce
site in the
lock down,
they need to
make sure
that all the
products are
Due to their e-
commerce
channel, the
organisation has
hire more number
of people in which
the existing
employees has to
make sure that the
new hired
individual would
be able to

were able to
perform well in
terms of profitability
the outbreak when
other industries
where shutting
down. Along with
this, it also increases
the employment rate
as the organisation
has hired many
individuals in the
lock down as they
are planning to hire
16000 individuals
more (Schäfer and
et. al., 2021.).
more number
of people for
their smooth
operations and
functioning of
the
organisation.
available
(Modiba and
Stewart.,
2018). The
organisation
was able to
cater all the
people and
serve their
services
which in
result benefits
the
organisation
in terms of
their revenue.
For serving to
the customers
in lock down,
the
organisation
hired many
people
(Semann.,
2018.). Also,
they are
planning to
hire more
number of
individuals
for the
understand their
working and
culture of the
organisation.
Also, the IT
department has to
make sure that
they must
optimise their
website so that the
site could not
crash because of
heavy traffic. All
workers were
serving the
customers into
their home in the
lock down time
period.

organisation
as this could
benefit the
organisation
in the long
run.
Sainsbury Sainsbury uses
social media heavily
such as Facebook,
YouTube, Instagram
and many more.
They are their major
strength for
promoting their
product and services
to a large number of
prospects and
consumers.
The change is
that, they
could able to
promote itself
in an effective
manner (Wee
and et. al.,
2020.).
This create
brand
reputation in
the market. It
helps in
gaining of
more number
of customers
as well as
prospects.
Due to this
promotion, the
organisation is
able to cater more
number of people
by their products.
As compared to
Tesco, they were
not able to
generate profit in
COVID 19
pandemic as
Tesco does
(Zastrow and et.
al., 2019.).
Drivers of change
There are various kinds of change and type of organizational change affecting the organization
explained as follows:
Technology- External innovation leads over advancing technology which makes relevant
changes done within its operations. This make growing exception of clients possible with better
innovation in Tesco and change technology with more effective manner which leads over all
development of organization.

Competition- This is related to high level of competition and pressure helping in reducing
cost which makes efficiency improved with operations making organizational change possible
with competitive strength.
LO2
P2) The ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organisation.
Internal factors
Theses comprise of the factors that are present within and inside a business organisation
and tend to have significant effect on its decision making and strategy formulation. Use of the
SWOT analysis is being made by the managers of Tesco plc to analysis and evaluated about its
key internal factors.
SWOT analysis
SWOT analysis is a tool which is used to analyse organisation's competitive position as
well as developing strategic planning.
Strength: One of the major strength of Tesco is that, they were able to perform well in
the COVID-19 pandemic with the help of their e-commerce platform. Also, the government has
imposed lock down where people were not for a physical gathering in the pandemic. Tesco was
able to take quick action and increase their online delivery services. The organisation also serves
a wide range of products to various nations which includes financial services, clothing, home
ware items and many more.
Weaknesses: Tesco offers a wide range of food products to their customers. The
organisation claims that they follow the standard food safety protocol but it come out to be false.
For illustration, the products of Tesco was unsafe that could risks the lives of the customers. In t
his regard, the organisation has to recall all the defective products (Colebrook and et. al., 2020.).
Along with this, it was also found that some of the product were passed the expiration date and
the employees did not replace them. This results in paying a heavy amount of 175000 pounds.
Moreover, they have also encountered with an issue of product shortage in the COVID 19
pandemic and in this regard, they were giving false hopes to the consumers.
Opportunities: Tesco has an opportunity to utilise machine learning and artificial
intelligence as this would assists the organisation in planning. Many people have switched to

plant based food which has increased by 4.1 billion pounds. Along with this, the rate of
unemployment is increasing between the demographics of age 16 to 24 which represents a good
opportunity for Tesco to hire them. Owing to the COVID 19 pandemic, there was much more
income generated by providing home delivery services as they have their e-commerce platform.
For this, the organisation has elevated their workforce and also they are planning to hire 16000
people.
Threats: Tesco is an alone competitor in the markets of UK and after Walmart is sold to
Mohsin and Zubair Issa, ASDA is planning to return into the market which could be major threat
to the selected organisation (Robinson, Randall and Barrett., 2018.). Due to COVID 19
pandemic, though the organisation is able to survive because of its e-commerce channel, they
had 533 million pounds as precautionary expense which has lead a major shift in the business.
External factors
These include of the elements of the macro environment that are being outside the control
of the organisation but tend to have a significant and vital impact on the strategy formulation and
overall decision making of a company. Use of the PEST analysis is being made by the Tesco plc
to determine and analsysed its external factors that has been provided as below:
PEST analysis
PESTLE analysis is considered as a tool which is utilised by the organisation for
identifying the macro environmental factors which could create impact on the performance of the
organisation. In context to Tesco, PESTLE analysis is mentioned below:
Political factors: Tesco is a multinational organisation which has its presence in various
countries. As government and political regulations vary from nations, they have to make sure
that they follow all the legislation in different nations. Also, the Brexit deal has developed an
environment of uncertainty that have increases their tariff free trade.
Economic factors: The COVID 19 pandemic has created a major impact on various
industries. As people were not allowed to step of their houses as government imposed lock down
which it was implemented across the globe. This lead to shutting down many industries. Tesco
was able to survive as they were able to fulfil the demands of customers by their e-commerce
platform (Hayes., 2018.).
Social factors: Tesco follows all the local social and cultural trends of distinct
communities and then caters them accordingly. The selected organisation make sure that they

offer Halal meat to Muslim customers in UK. The company has has its own production of halal
meat which leads in Thailand and Malaysia. Along with this, they are also serving plant based
vegetarian food as many people are switching towards plat based food and veganism. This trend
is going between individuals in the Western as well as European markets.
Technological factors: Tesco has its own e-commerce site which was utilised by many
individuals for ordering of various goods. The organisation was able survive the pandemic and
also lead organisation to avoid infection which is COVO 19. Also, Tesco has partnership with
Amazon Go for developing cashier-less billing technology. This would allows consumers to pay
using their wallet or cards.
On the basis of the above discussion about the internal and external factors an analsysed
can be made that a vital impact of these aspects is seen that the leadership, team and individual’s
behaviour within Tesco. It has been seen that the risings level of competition along with the
global pandemic of covid-19 create a higher level of de-motivation within the employees of
Tesco (Dorac-Kakabadse, 2017). Thus, at that time implication and effective leadership style
based on participative nature is required to supports suitable change within the firm. Thus,
leaders of Tesco tend to encourage and motivate the team and employee’s behaviour to support
the implication of proper technological ad social change to meet the current needs of customers
along with mitigating the negative aspects of Covid-19.
Change Internal/
external
Impact on
leadership
behaviour
Impact on
team/
departmental
behaviour
Impact on
individual
behaviour
Measures to
minimise
negative
impacts
Technological
change
Internal The increase
in online
sales leads
leaders to
provide
training
remotely.
Due to this,
As there was
rapid
increase in
online sales,
the HR
department
has to hire
more
Due to
sudden
increase in
sales, the
individual
has to work
in more
active
In order to
minimise the
negative
impact, the
leaders could
take more
meetings in
order to

many
individuals
were not able
to cope up as
well as
leaders were
not able to
track and
monitor the
performance
of the
employees.
employees in
order to
operate in the
organisation
and fulfil the
demand of
the customers
(Luand et.
al., 2020,
December.).
This drastic
change
creates
impact on the
over all
productivity
and
profitability
of the
organisation
but in a
positive
manner. The
negative is
that, as the
lock down
was imposed,
many
industries
were
shutdown
manner
which led to
the decrease
in their
performance
level.
interact with
people.
Along with
this, the
organisation
could
distribute the
work among
each other so
that they
could
corporate
well.

and due to
this, the
products gets
out of stock
and the
organisation
has to give
false hope to
the
customers.
Social change External The leaders
would
having the
responsibilit
y to train the
employees
regarding
halal meat
and methods
to prepare
vegetarian
meals. One
of the major
impact is
that, the
leader would
be having
pressure to
resolve the
conflicts as
halal is the
By bringing
this change,
the
manufacturin
g department
has to make
that they are
able produce
halal meat so
that they
cannot get
any false
allegation.
The
individuals
has to make
sure that
they have the
knowledge
about the
cultural
belief of
Muslim and
the
veganism.
In order to
minimise the
impact, the
organisation
could
provide a
proper
training on
various
cultures and
their dishes
which the
organisation
is
manufacturin
g so that they
could have
the
knowledge.

cultural
belief of
Muslim and
other culture
people could
create a
conflict
regarding
this.
P3) Measures to minimize negative impacts of change on organisational behaviour
This is an complex process which is based over negative and positive effect of an
organization over organization. Both Tesco and Sainsbury goes trough technical and social
change improving organizational behaviour by using PDCA model which leads over
understanding about various aspects of behaviour.
PDCA cycle
The plan, do, check and act cycle is an iterative technique for a constant improvement of
the procedures, commodities or services and it is considered to be a major component of lean
management.
Plan: At this stage, the organisation would plan what is needed to be done. One of the
major change was the increased sales on e-commerce platform in which many individuals were
hired and in order to work, they needed to be trained. For this, the organisation will provide
training to them and also make sure that they could interact to each and every individual. Also,
the organisation could provide training on various cultural beliefs and their dishes so that
individuals would not create conflict on the topic of culture difference.
Do: This stage would be implementing the plan but on small scale and most preferably in
controlled environment so that they would be able to evaluate the outcome.
Check: In this stage, the organisation would review the results from the do stage. This
stage is vital as this allows them to analyse the solution which is implemented to a small scale
group or entity as well as revising the plan if necessary (Lea, Hall and Lawrence., 2020.).