Comparative Analysis: Leading Change in Tesco and Sainsbury Report

This report provides a comparative analysis of change management strategies within Tesco and Sainsbury. It begins by examining the impact of change on different organizations, focusing on corporate strategy and operations. The report then delves into the internal and external drivers of change, utilizing SWOT and PEST analyses to identify factors influencing organizational transformation. It further explores measures to minimize the negative impacts of change, such as open communication and employee training. The report also investigates barriers to change and their impact on leadership, before concluding with an overview of different leadership approaches to dealing with change. The analysis covers how mergers, technological advancements, and changing consumer preferences influence leadership styles, team dynamics, and organizational behavior. The report emphasizes the importance of adapting to both internal and external pressures to ensure organizational success and minimize employee resistance during periods of transition.

UNDERSTANDING AND LEADING
CHANGE

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
P1) Compare the impact of change in different organisations. .................................................3
P2) Impact of internal and external drivers of change...............................................................5
P3) Measures that minimise negative impacts of change. .......................................................7
TASK 2............................................................................................................................................9
P4) Different barriers for change and impact on leadership......................................................9
P5) Different leadership approaches to dealing with change...................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Leading change refers to the skill and ability of the leader to influence others to accept
the change in the organisation. Leader of the organisation helps in leading the change in the firm
by identifying the change, implementing the process of bringing the change etc. Tesco Plc.
Belongs to retail industry. It was founded by Jack Cohen in year 1919. The headquarter of
company is located at Hertforshire, England(Chu, 2016). Tesco operated in different countries
like United Kingdom, Hungary etc. The key products in which company deals are Hypermarket,
Superstores etc. Key peoples of the company are Dave Lewis, John Allan etc.
The Report will outline the impact of changes in different organisations that has an impact on the
strategy of the company. The Report will also explain the impact of drivers of change on team,
leadership etc, influence of barriers of change on leadership decision-making. Further, the Report
will describe various leadership approaches.
TASK 1
P1) Compare the impact of change in different organisations.
Heading Tesco Sainsbury
Corporate Strategy- One of the main corporate
strategy of Tesco is the merger
of Tesco and Booker. Booker
group is one of the top
wholesaling company that
operates in U.K. In year 2018,
the company gets merged with
Tesco(Savić, 2015).
One of the important corporate
strategy of Sainsbury is the
combination of Sainsbury Plc.
With Asda(Bleich, 2015).
Operations- There are various changes Management of Sainsbury is

made by Tesco in the
operations. For example- Tesco
has started a primary
distribution system so that,
goods can be transported easily
at various locations. It has also
used various technologies for
improving the supply chain
management.
focussing on managing the
process of operations of the
company.
Causes of change in strategy
and operations-
Tesco has develop primary
distribution for saving the cost
and to increase the speed of
delivering goods and services.
Reason behind merger is to
strengthen the existing
customer base.
The main reason behind
operations management of
Sainsbury is to provide better
quality of customer services.
For example- company has
undertaken fisheries
management plan etc.
Company has develop this
plan for gaining competitive
advantage over other
competitors. The main reason
behind combination is to grab
new opportunities for further
growth.
Positive and negative impact
on organisation-
The merger of Tesco and
Booker has provided various
advantages to the company.
The quality of products has
been improved. It has also
improve the ability of Tesco to
compete with other companies
Positive impact of
combination of two companies
is that it has help Sainsbury to
improve its financial position.
Also help to enhance the
services of the company that
has resulted in increase in

like Sainsbury by offering
innovative products.
customer base.
Positive and negative impact
on process and people-
The positive impact on process
is that, the quality of goods has
been improved due to merger
of two companies. The wastage
of food items has been reduced.
Negative impact is that,
company have to change its
method of production due to
advancement in the technology
that has created problems for
company to manage resistance
from workers.
Positive impact of merger on
people is that, training and
development opportunities have
been provided to the employees
that has help to improve their
skills. Negative impact on
people is that, management has
to change their policies etc.
Positive impact on people is
that, employees of company
has been provided large
opportunities and security to
old peoples in respect of
pension. Negative impact on
people is that some employees
have been lay off. Positive
impact on the process is that
due to the use of advance
technology, process of
production and distribution
has been improved. Negative
impact on the process is that
the employees should have
advance skills for using the
technology of producing
goods.
Evaluation- It has been evaluated that changes in corporate strategies and operations of both the
companies that are Tesco and Sainsbury has create an impact on performance of firms in
different ways. It has created both positive and negative impact on profitability of firm.
Bohner and Arnold Change Impact Analysis-
The model has been provided by Bohner and Arnold. The change impact analysis says
that, identification of the result of bringing any change in the organisation should be identified by
the management(Doppelt, 2017). Tesco should analyse the impact of changes and the
management of the company should know about the the things that has to be modified for

implementing such change. The process of analysis of the impact of change in Tesco will be
perform by teams of different functional units such as production, sales and marketing
department etc.
The change impact analysis will help the company to reduce the problems that may arise during
the implementation of change in the organisation.
P2) Impact of internal and external drivers of change.
Drivers of the change refers to the factors that leads to change in the organization. The
drivers of change can be related with micro environment or macro environment.
SWOT analysis
To identify the internal factors that leads to change in organisation. Tesco will perform SWOT
analysis.
Strengths-
 Strong brand identity at global level. High reputation due to quality, services of the
company. This will help to increase the sales after merger of Tesco with Booker.
 Company has huge financial resources that helps to maintain strong financial position
through strategy of merger of Tesco with Booker.
Weaknesses-
 Impact on the profitability of Tesco due to various government policies.
 Strong competition from other companies like Sainsbury that have negative impact on the
profits of the company.
Opportunities-
 There is an opportunity for Tesco to offer its products through online channels. It can
provide service of home delivery to consumers(Burke, 2017).
 Tesco can enter into joint ventures with other companies for promoting improvement in
customer service, quality etc.
Threats-
 Tesco have to comply the rules and regulations of the Government as a result, there is a
need of bringing change in the cost structure of the company.
 Pressure from stakeholders to fulfil social and environmental responsibilities.
The impact of internal changes are as follows-
Leadership-

Internal factors will impact the leadership style in different ways. There is an opportunity for
company to sale its products through online channels, for this leader of Tesco has to adopt
various leadership styles for influencing the employees for bringing change in the process of
distribution and production due to merger of Tesco with Booker.
Team-
Members of the team of Tesco has to collaborate with each other for implementing the new
process of offering goods to customers through online channels. This will help to improve sales
after merger.
Organisation behaviour-
The management of Tesco has to develop policies like rewards system for motivating the staff
for making efforts towards sale of products to the customers through home delivery. So that,
loyal staff will not leave the organisation after merger of Tesco with Booker(Allen, 2018). The
manager of Tesco have to promote transparency in the communication process between
management and employees so that, changes for easy and effective implementation of the
changes.
PEST Analysis
To identify the external factors that leads to change in organisation, Tesco will perform PEST
analysis.
Political-
Regulations of the Government in respect on providing employment opportunities mainly to
local peoples has impact on employment process of the company.
Economic-
Customers are spending less amount on high quality products that has an impact on the sales and
profits of the company.
Social-
The preference of consumers towards food is changing and they are becoming more conscious
towards organic food. Tesco should add organic food to existing range of products.
Technological-
Change in the technology of manufacturing and distribution as well as technology of packaging.
Tesco should improve its existing process.
The impact of external changes are as follows-

Leadership-
Leader of Tesco has to understand the change in the demand and preference of the consumers for
producing organic food because leader will have to guide the employees for developing new
products with high quality. For bringing technological change due to merger, leader will have to
provide understanding of new technology to the team(England, 2016).
Team-
Team members of Tesco have to work with each other for developing and launching the organic
food items. They have to divide the role and responsibilities among themselves. So that, sales of
the products of Tesco after merger will increase. Team members will have to attend seminars etc.
to learn the use of new technology.
Organisation behaviour-
Top management of Tesco will have to develop strategy for developing new products so that,
company can gain competitive advantage over competitors. Management of Tesco have to hire
new employees who can easily use advance tools.
P3) Measures that minimise negative impacts of change.
Organisation change refers to the detail process of bringing change in the policy,
procedure, technology of producing or distributing goods and services etc. Every organization
experiences certain type of change whether small or large.
Tesco should consider the correct approach of implementing the change so that, it will not create
stress in the mind of employees. The culture and environment of the company will play a major
role.
Tesco should undertake various measures for minimising the impact of various changes that may
occur in the organisation due to merger of Tesco with Booker. They are as follows-
Take time to listen the views of employees- Before implementing any type of change in the
organisation, management of Tesco should listen the views of employees so that, the proposed
change will not hamper the performance of the employees. For example- in case of merger of
Tesco with Booker, company should determine the impact of change in the process of production
and distribution etc. This will help to minimise the negative impact of the changes on
organisation behaviour.
Open communication- Company should develop communication strategy for communicating
the reasons behind the proposed changes. There must be transparency in communication between

management and employees of Tesco . This will help the company to solve the problems and
queries of workers in respect of change. This will also help to improve the motivation level of
employees and they will not leave the company. Example- Tesco should communicate the
benefits of merger of Tesco and Booker to the employees. Taking regular feedbacks from
employees will help the company to minimise the negative impact of change on performance of
employees as well as on organisation behaviour.
Effective training-
Company should provide training to the employees for developing the skills that are required for
performing the operations of the company after the implementation of proposed change in the
organisation. Example- Tesco should give an opportunity to the employees so that, they can
prepare themselves for accepting the new roles and responsibilities after the merger of Tesco
with Booker. This will help to minimise the negative impact of change on the job performance of
the employees as well as on organization behaviour.
Models for effective implementation of the change in the organisation-
Lewin's change management model:
Lewin's change management model has been developed by Kurt Lewin in year 1950. The model
is very simple to use. Tesco will use this model for managing the changes that may occur due to
the merger of Tesco with Booker. The model will help Leader of company to modify the
strategies to deal with the changes. Further, it will also help to create transparency in
communication. The model involves three different stages in which Tesco will effectively
manage the process of change in the organization.
Unfreeze- Unfreeze stage is also known as the stage of evaluating the reasons behind the
proposed change in the organisation. Firstly, the management of Tesco will determine that why
the change should occur in the organisation. Example- there may be various reasons behind the
merger of Tesco with Booker such as low sales, for improving the productivity of employees etc.
Change-
Change stage is also known as move stage. Company should ensure that, the proposed change
will be implemented within a short period of time. This will help Tesco to inform their
employees regarding the benefits and importance of merger of the company with
Booker(Wilson, 2019).
Refreeze-

After implementing the process of change in the organisation, company will fix the procedures
and policies of performing different jobs in the organisation. Now, employees will perform their
work as per the new situation and they will also realize the benefits of the changes.
Moreover, company should take measures to reduce negative impact of change on organisational
behaviour. Leader of firm should adopt effective strategy to influence employees to accept the
change in organisation. Management should set realistic timelines for employee's work.
TASK 2
P4) Different barriers for change and impact on leadership.
Barriers to the change refers to the obstacles that are occurring while implementing a
certain type of change in the organisation. Tesco will use Force Field Analysis for analysing the
driving and resisting forces of change in the organisation.
Force Field Analysis- It is a tool which is developed by Kurt Lewin in year 1951 for identifying
the factors that are promoting as well as resisting the change in the organisation. Management of
Tesco will use the model for effective implementation of change process(van der Voet, 2015).
Driving forces- The model will help the management of Tesco to identify the factors that are
supporting the change in the organisation. These forces will help the company to achieve its
objectives behind implementing the change in the organisation(Thornton, 2019). Force-field-
analysis will help to understand the driving forces behind merger. They are as follows-
 Changes in the taste and preference of existing as well as targeted customers of the company.
Figure 1 : Force Field Analysis
Source : (Force Field Analysis, 2017)

 Developments in the technology of manufacturing or distribution of the goods or services of the
company.
 Intense competition from other companies such as Sainsbury etc.
 Other driving forces may includes changes in government policies, expectations of shareholders
from Tesco, views of public regarding the company etc.
The above factors like change in taste of preference etc will affect the style of leadership adopted
by the leader. They should adopt democratic style so that employees will motivate to give ideas
to satisfy customer needs.
Restraining forces-
Restraining forces are the barriers that hinder the progress of implementation of changes in the
organisation. Restraining forces limit the factors that promotes the change in the organisation.
Tesco will use Force-field-analysis to determine various restraining forces. Force-field-analysis
will help Tesco to determine the different types of barriers that may occur during the process of
implementation of change process(Salman, 2017).
Employees of Tesco may resist to change due to various reasons such as -
 Problems occurring in the process of communication can misunderstandings between
management and employees of Tesco.
 Employees of the company may resist to the changes occurring due to merger of Tesco
with Booker due to the feeling of insecurity regarding job.
 Lack of trust on management of company.
Impact of barriers of change on leadership decision-making:
The restraining forces will impact the decision making of leader of Tesco in different ways.
Barriers to change will affect the leadership style of the leader of Tesco. Leader is responsible
for implementing the changes in Tesco through promoting transparency in the communication
process between employees and management of the organization(Doppelt, 2017).
Successful implementation of the change will depend upon the skills and capabilities of leader
of Tesco. Leader of the company will influence the team members of the company and explain
the reasons behind implementing the changes in the firm.
P5) Different leadership approaches to dealing with change.
There are various leadership approaches that can be used by leader of Tesco to manage
the changes in the organization. They are as follows-

Situational leadership approach-
According to situational leadership approach, there is no single leadership style that a leader can
use in all the situations(Doppelt, 2017). Leader of Tesco should change its leadership style
according to the factors such as work environment, employees etc. that are involved in a
particular situation.
According to Hersey and Blanchard model there are four types of leadership behaviours.
Delegating-
Leader of Tesco may delegate the task to the subordinates and also provide some authority of
taking decisions so that, changes in the organisation can be implemented effectively.
Participating-
Under this approach, leader of Tesco will provide guidance to the employees. Employees may
have skills but they are not confident due to a new project. This will help the company in
successful management of change(Canterino, 2018.).
Coaching-
Leader of Tesco will use this approach in case employees of the company have experience of
working in changing situations but they does not have high level of self-esteem.
Directing-
Leader of Tesco will use this approach when the employees of the company does not have
experience of working in changing situations.
Advantage- It will helps to improve productivity of employees.
Disadvantage- There will be lot of pressure on leader of Tesco because leader will have to
analyse the situation before using situational leadership.
Transformational leadership approach-
Under this, leader will work with team member to determine need of change, developing
vision for company through motivation and executing the vision. Transformational leader should
have ability of self management.
Change management model-
Kotter's 8 steps change model:
The model was developed by John Kotter. Tesco will use this model for managing the
change.

 Developing urgency- Firstly, Tesco will identify the threats and opportunities behind
implementing the changes.
 Developing change coalitions- Now, company will identify the leaders who will be
responsible for bringing change in the organisation.
 Formulating vision and strategy- Management of Tesco will determine vision to be
achieve through implementation of changes(Allen, 2018).
 Communication- Now, company will communicate regarding the vision behind change
in the organisation.
 Removing obstacles- Leader of Tesco will identify the employees that are resisting the
change in the company.
 Creating short term advantage- Management of Tesco will develop short term goals
and give rewards for the contribution of employees.
Figure 2 : Kotter's 8 steps change model
Source : (Kotter's 8 steps change model, 2018)

 Achieving improvement- Company will achieve gains through individual experience of
people working in Tesco.
 Change as a part of organisational culture- Now, company will ensure that the
proposed change has become a part of culture of Tesco(Al-Haddad, 2015).
Advantage- The model is easy to implement.
Disadvantage- Process requires lot of time.
CONCLUSION
The above Report has outlined the comparison between Tesco and Sainsbury in respect
of the strategy of the companies, internal and external factors of change impacts the leadership,
team and organisation behaviour in many ways. The Report has also described that various
measures are helpful in reducing the negative impact of change. Moreover, the Report has
explained driving and resisting forces of change through Force-field-analysis and impact on
decision-making of leader. The Report has also described situational leadership approach and
Kotter's 8 steps change model for managing change.
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