Understanding and Leading Change: A Comparative Analysis Report

This report provides a comprehensive analysis of change management, focusing on the strategies and operational impacts within Tesco and Primark. It explores the influence of both internal and external drivers of change on leadership, team dynamics, and individual behaviors, highlighting the importance of adapting to market demands and technological advancements. The report examines factors that mitigate the negative effects of change on employees, such as effective communication and employee involvement, and evaluates the barriers to change, emphasizing their impact on leadership decision-making. Furthermore, it details various leadership approaches to navigating organizational transitions, offering insights into how leaders can effectively manage and guide their teams through periods of change. The report concludes with a comparative analysis of the two companies, underscoring the significance of strategic adaptation and proactive change management for achieving long-term sustainability and competitive advantage.

Understanding and
leading change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Compare various organisational examples where there has been an impact of change on
company's strategy and operations. .......................................................................................1
P2 Explain internal and external drivers of change those create effect on leadership, team and
individual behaviours within a company................................................................................3
P3 Explain some factors those minimising negative impacts of change on employee's
behaviour................................................................................................................................6
TASK2.............................................................................................................................................7
P4 Evaluating various barriers for change and find out how they influence leadership decision
making with in work place ....................................................................................................7
TASK3.............................................................................................................................................9
P5 Explain different leadership approaches to dealing with change in work place ..............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Change is a systematic process to deal with the transition and transformation of
company’s goals, objectives and technologies. Through change, firms gain competitive
advantage in the market place. An organisation makes strategies and plan to implement change at
work place. Leaders and managers; both are contributing their efforts for executing change
within their departments or team members. Market is highly competitive and so, company has
made innovative products and services to compete with competitors. In this report, two firm have
been introduced i.e. Tesco and Primark. Both are working in the same industry. Tesco is an
international retail store, that provides their services over 12 countries with almost 2500 stores
worldwide . Their headquartering is in Welwyn Garden city, UK. Primark is a Dublin based
retail firm operating most of their business operation in the United Kingdom. Primark has 350
stores in all over the UK. In this report, analysing change impacts on both organisation's
strategies and operations (Anderson and Anderson, 2010). Explain internal and external driving
factors of change and minimising negative impact of change on organisation. Analysing several
change barrier and how they influence leadership decision making, overcome form these issue by
using appropriate leadership approaches.
TASK1
P1 Compare various organisational examples where there has been an impact of change on
company's strategy and operations.
Change is an activity which is used by organisation to enhance employee’s qualities and
productivity in order to gain long term profitability and sustainability. Change management is a
process for planning, directing, controlling and executing change at work place. Globalisation
has provided opportunities to firms and thus increased their sale of products and services at
market place. So, it increased their profitability as well as market share. Leaders and managers
have capabilities to manage change at work place in an effective manner.
TESCO and Primark; both are working in the same industry and provide same kinds of
products and services to their customers. But their strategies and operational process are different
for attracting and fulfilling a large number of customer's demand (Anderson, 2016). TESCO is
successfully running their business operations and focusing over high quality product delivery
along with adding value to their loyal customers.
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TESCO and Primark; both are having their own strategies and operations to implement
change at work place. Some important changes impact on both the organisations which are as
follows:
STRATEGIES TESCO PRIMARK
Technologies
Porters competitive strategies
Price
Business objectives
TESCO has used the latest
technologies in their firm.
They make strategies for
promoting and advertising their
products. Online shopping is
new preference of customers.
They use digitalisation
technique for increasing their
over sales and profitability.
Market competition is
increasing continuously and it
creates a negative impact on
organisational performance as
well as on their profitability.
TESCO has focused on this
area of improvement and their
market performance to gain
long term sustainability in
competitive market place.
TESCO has achieved economy
of scale and so, they have
provided low priced products
to their all levels of customers.
TESCO’s main objectives are
outstanding customer's
Primark has not use latest
technology at work place and
they have use old method for
promoting and advertising
their product and services at
market place. Company wants
to focus on this area to
improve their
By using cost leadership
approach and product
differentiation strategies
Primark has gain competitive
advantage at market (Booth,
Wade and Walker, 2014).
Primark has not achieve
economic of scale in their
business operation, so their
product price are very high as
compare to their competitors.
Primark’s main objectives are
sustainable business growth,
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Change in external factor
Structural change
services, recognizing people’s
needs and wants better than
their competitors, providing a
large number of products and
services, be competitive, give
healthy environment to
customers, etc. TESCO uses
several strategies to make
consumer’s purchasing
pleasant.
TESCO has modified their
system according to
government legislation.
TESCO has briefed store
managers, group personal
managers and personal
managers on the detail of store
management structure.
be profitable, find out
opportunities to increase
market share, make
differentiation to gain
competitive advantage, etc.
Primark has modified their
products and services
according to customer’s
choice so that they will focus
on their preferences.
Primark has changed their
business structure in order to
expand their work at
international level.
P2 Explain internal and external drivers of change those create effect on leadership, team and
individual behaviours within a company
Internal and external environment of the company create many problems for leaders in
their decision making process,on individual employee's behaviours and over all team
performance (Brown, 2012). Change has many internal and external driving forces that create a
negative impact on organisational performance as well as on leaders and manager’s decision
making. Some important internal and external environmental factors are as follows:
Internal factor:-
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Competitors: Competitors are creating a negative impact on organisational performance.
When competitors have use new technology for increase their product quality then it is very
important for the company to change their existing old technology with new one to compete with
their competitor at market place.
Employees: This is a very important factor that create high impact on organisation
change strategies. When leaders take any decision related to change employees are resist those
change. So, it creates a negative impact on leader’s decision making as well as individual
employees. Organisation are providing training and development program to their workers of
enhance their professional skills, thus provide help to employee's for executing change
effectively. Through this firm enhance leadership quality and team positive behaviour towards
change (Carrington, Deppeler and Moss , 2010).
Firms internal culture environment: Each culture has unique in themselves and their
have some positive and negative sides. Organisation has focus to maintain positive cultural
environment at work place to motivating employee's behaviours. TESCO has use six components
vision, value, practices, people, narrative and place for establishing great culture within an
organisation for providing healthy culture to their employees. So they have enjoy positive social
- culture environment at work place which enhance employee's productivity and motivation to
ward work.
External factor:-
(source: External environment factors, 2016)
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Illustration 1: External factors

Technology: According to current scenario, technology has rapidly change so that its
very important for an organisation to accept necessary change in order to gain high market share
and long term sustainability.
Political environment: Political environment has change every few years. Its is a
cyclical process that make democratic government. Some important political factor those create
impact on change at work place are health and safety environment regulations, taxation policies,
intellectual property rule, bureaucracy, environment population rule & regulations and corruption
level etc. These all factors are create negative impact of leadership decision making and overall
firm profitability. Due to unstable political environment company implementing change at work
place time to time because they follow government current rule and regulations, so they have
face mitigation of risk (Doppelt, 2017).
Legal: Government has upgrade or change many legal laws for increase country
economical conditions and employment for their people. Some are employment law, education
law, environmental protection law, consumers protection act., anti-trust law, competition
regulations law etc. When company make plan for change they think about their country legal
laws, so they can not face any legal problem.
Economical: Economical environment has create lot of impact on business operation.
Some important economic factor are exchange rate, interest rate, inflation, unemployment,
government policies, taxation and management etc. So its create direct impact on an organisation
performance. These economic factors always affected the market demand and consumer's
preference. During inflation company give more pay for its resources in result price of their
goods and services has increase (Doppelt, 2017). When firm has implementation change at work
place they have consider these economic factors. Other wise they plan change strategies and that
can not work due to external economical factors.
Social culture environment: Environment social culture factor has create impact on
organisation change. Some important characteristics of society are customs, moral, values and
demographic condition etc. Costumer needs and wants influenced by their social culture
environment. When firm has manufacture new product and services for their consumers they
looking over social culture environment factors.
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P3 Explain some factors those minimising negative impacts of change on employee's behaviour
Change in an organisation strategies and operations are not a easy task for a mangers and
leaders. In a company employee's is resist to change, so its leaders responsibility to take care
employee's interest and motivation in order to implementing change at work place. Change is a
process of supporting new ideas and innovative way of working at work place. Manager of
TESCO has taken some step for reducing negative impact of change at work place, those are as
follows:
Analysing needs of change: Firm has demonstrate “why change is necessary” for their
work place. They set goals and objectives for change in order to achieve long term sustainability
advantage at market place. Through this activities firm motivates employee's moral (Fagerström
and Salmela, 2010).
Watch their employee's reaction: An organisation have continuously watch their
employee's behaviours to ward change. Company can not try to forces them for accepting
change, they wants to find out what workers doesn't like about it. So they can easily executing
change at work place. Change mean new way of doing work and most of the employee's are
fearful about unfamiliar environment. TESCO has provide assurances to their workers, that they
support them to become familiar about new work environment. Its take time for people to adjust
in work situation.
Involvement: TESCO's management has involve employee's in their decision making
process. So increase employee's morals and they feel attachment with new companies rule and
policies. In result works easily accept this new changes at work place with out affecting
productivity. An organisation's management are asking suggestions form employee's about
planning and strategies and incorporating their ideas at work place. Through this activities,
TESCO increase employee's satisfaction and their involvement toward organisation goals and
objectives (Fagerström and Salmela, 2010).
Communication: At every level of an organisation communication network are change.
It is a very complicated process. So its very important for a company to establish effectively
communication network at work place. Uncertainty has create negative impact on change, thus
reduce by effective communication between employee's and management.
Involvement of social media: An organisation's managers has use social media platform
as communication tool. Business leaders use social media platform to achieve firm goals and
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objectives beyond marketing. Thus provide conformation of company culture, change
management initiatives, enhance implementation of change strategies and increase workers
engagement.
Training and development program: Through this activity TESCO's management
enhancing their employee's skills and productivity in order to gain profitability and long term
technical advantage. After this event employee's are able to work on a new machinery and
competing their task in a new way.
Don't change for the sake of change: Change on continuous basis are creating more
resistance to change. TESCO's manager are dose only those change those are necessary for an
organisation, that save energy and resources of management. Through this activities firm change
employee's behaviours to ward change (Fullan, 2014).
Change are on time: Implementation of change has consume more time, so its very
important for an organisation to executing change on time when they needed. Rumours, bad
news and negative things etc. are very speedily spread in firms working environment, those
create negative impact on leaders decision-making to ward change.
TASK2
P4 Evaluating various barriers for change and find out how they influence leadership decision
making with in work place
Barrier of change are creating negative impact on business strategies and planning. An
organisation's manager has to understand these barriers and find out a way to reduce their impact
on leadership decision making process. So company are successful implementing their change
strategies and planing with in a work place. Change is a crucial aspect for an organisation, they
executing change at work place in order to maintain firm growth in proportion to economical
development.
Some important change barriers are as follows:
Lack of employee's involvement: Employee's have always fear about their new working
environment, that is reduce by providing opportunities to workers involvement in change
decision making process by TESCO's management. The biggest failure of implementation
change come form lack of employee's involvement in change decision. When leaders are
executing change with in a team then they always ask suggestions about change form their team
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members for effectively implementation change. So that leadership judgement have directly
effected by employee's involvement in decision-making process. TESCO has implementing
change at work place in order to gain worker's satisfaction and decrease overall employee's
turnovers (Hrebiniak, 2013).
Lack of effective communication strategies: Many organisation can not make strategies
for establish effective communication with working environment. Some leaders have assume that
once they announce change, then employee's will adjust with this change and they get start
working in new develop environment. But its not true. Lack of communication between leaders
and workers have resist to change. So its very important for an organisation to introduced change
rather then announce that. TESCO has use very strong communication network among
employee's so they provide help to leaders in their decision making process.
Unknown current state: Some time companies have implementing change at work place
with analysing current market situation as well as firm internal environment. Implementation of
Change is very difficult when firm are not aware their current state. Comapnys are trying to
executing change at work place with out considering institutions blueprints. That crate negative
impact on change as well as profitability of the firms. TESCO's management has make blueprints
of operations and strategies and they follow this blueprints when they introduce change at work
place. So they can not face unknown state.
Organisation complexity: In an organisation many departments, teams and project has
work. So organisation structure are very complex to understand. Leaders are implementing
change at all level of companies in order to gain change benefits in all over institution
departments. Many company has follow complex process, thus create planning and strategies
more complex. TESCO has simple organisation structure and process so its organisation
complexity are low. Leadership decision-making are directly influence by process complexity
(Malenfant, 2010). Leaders have break this barrier by introducing skills full approach to handle
institution fast growth and their complexity. TESCO reduce this barrier by hiring talented
candidates for a highly complicated project.
Ineffective leadership: Employee's are not ready to accept change, but they must be
advocate change for smooth work process. Less numbers of employee's are give positive reaction
toward change. Leaders are encouraging employee's by providing them sufficient information,
training and development program to show that firm has investing their resources in them and
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give them empowerment to take decision according. TESCO's management has make effective
leadership so firm have encouraging employee's performance and increase productivity.
TASK3
P5 Explain different leadership approaches to dealing with change in work place
TESCO and Primark both have use various leadership approaches in their organisation
for implementing change effectively in order to gain competitive advantage and high market
share. Through this companies are motivating their employee's. Every team has their own leaders
and they follow their direction to completing their task, so leaders are directing, controlling,
managing team members activities in order to gain common goals and objectives. Leaders are
playing important role in critical situation, so that according to situation leadership style have
been selected (Nahavandi, 2016). Institution are providing separate training to leaders for
enhancing their leadership quality and skills which increase analytical capabilities of leaders.
There are many leadership approaches available for an organisation to implementing
change according to needs and wants of the situation. Administration are continuously checking
their work force performance & productivity and controlling deviations by adopting appropriate
modification in existing techniques and strategies. Situational leadership: Mangers should see the situations of market and then strategies
are formulated with that they able to produce services and goods as per consumers
demand and needs. Leaders should have fully information of their employees knowledge
and skills related to their systems. Changes which are done should be done properly as
well as give them instruction of their work and make employees aware of tools. Company
should communicate with their employees for knowing their opinions and experience
which they want in firm. Transactional leadership: Superiors should know results which they thinks for achieving
which will help in achieving the organisational goals and objectives. They should guide
their workers by keep them informing about end outcomes and proof them that all
required skills should perform their tasks. Leaders of TESCO and Primark make their
workers learn on various ways in which they can convey their products to clients by
telling all benefits and features (Parsons and Cornett, 2011). Sellers of company should
be very calm when they are dealing with customers and they should have patience
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