Understanding and Leading Change: Tesco and Asda Strategies Report

This report provides a comprehensive analysis of change management strategies employed by Tesco and Asda, two major players in the retail industry. It begins by examining the impact of changes on different organizational aspects, including technological advancements, organizational structures, and leadership styles. The report delves into the external factors influencing these organizations through a PEST analysis, evaluating the political, economic, social, and technological landscapes. It then explores solutions to negative impacts of change on organizational behavior, addressing barriers in leadership decision-making and different leadership approaches. The report highlights how Tesco and Asda have adapted their strategies to navigate market changes, providing a comparative case study of their approaches to leading change, and ultimately contributing to a better understanding of change management within the retail context.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Impact of Changes on Different Organization......................................................................3
LO 2.................................................................................................................................................6
P 2 Evaluating The External Factors With PEST Analysis........................................................6
P 3 Solution To Negative Impacts of Change on Organizational Behaviour.............................8
LO 3...............................................................................................................................................11
P 4 Different Barriers Influencing Leadership Decision-making............................................11
LO 4...............................................................................................................................................13
P 5 DIFFERENT LEADERSHIP APPROACHES THAT MADE CHANGES IN TESCO.. .13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Any organization is only growing when they have the right ability to understand their
strengths and weaknesses this will help the organization to understand the need to change their
activities to increase the growth of the company and also compete and attain core competence in
the market. The organization is also not successful even when they have achieved their goals as
there is nothing fixed and the world is changing and the needs and desires of the customers is
also changing with an increasing rate. So the organization also have to change to attract the
customers and also increase the profits. This report is covering the topics which are impacting
the business nature of Tesco and Asda after adopting to various changes in the organization.
Tesco is multinational retail grocery store chain which is operating in more than 12
countries. The company was established in 1919 with a goal of providing grocery to their
customers and with best services which will change the vision of the customers about grocery
stores. The company has over 6800 stores worldwide with a gross revenue of around 63,000
million Euros.
Asda is a multinational supermarket which was established in 1949 in Yorkshire,
England. The company have aimed at achieving the best services in and also innovating their
services and products to attract more customers. The company have a total revenue of around
21,000 million Euros annually and it is operated with more than 600 stores worldwide,
LO 1
P 1 Impact of Changes on Different Organization
Changes TESCO ASDA
Technological Tesco have used the
technology to grow their
profits. The organization have
changes the buying pattern of
the customers by enhancing
the customer feedback by the
Asda is also a retail
supermarket who have
increased its sales by
improvising its marketing and
promotional strategies with the
help of technology. The

use of technology and also by
providing them better self
services which all the
customers liked and are
attracted to it. Tesco have also
increased the sales of its online
grocery stores after they have
adopted the technology and by
improving the services which
provides better services to
their customers with the help
of the latest technological
advancements. The
organization has reduced the
problems by employing
manpower who can monitor all
the errors and resolve them
with the help of cameras and
CCTV in the stores, and they
have also compensated to their
customers who have bought
any product cheaper than the
Tesco's product this gave the
confidence tho their customer
and also built a trust on the
organization. For example,
online store, CCTV camera,
upgraded delivery services
with drones.
organization have analyzed the
importance of adopting the
technology and have also
invested in many digital
advertising of the company to
attract their customers. Asda
has adopted an accounting
systems which enable the
company to check the stock
and also all the data which
they had to wait to be
processed earlier by
accumulating all the stores
data and which can also result
in many errors. (Wilkinson and
Kemmis, 2015)The company
have introduced the self-
service checkout technology
for their customers so that their
customers do no have to stand
in the Que and wait for their
billing now they can easily go
to the system and just tap what
all good they have purchased
and pay for them easily. This
has also attracted many
customers, for example Asda
have also innovated in mobile
payments for online shopping
which will help the company
to increase the transaction flow

much more faster.
Organizational structure Tesco have followed the
hierarchical organizational
structure and also have gained
the success in achieving the
organizational goals. This
organizational structure Is very
easy to use and is very easy to
understand to their employees
hire roles and duties, this also
allow the proper concentration
to the employee as they have
divided the roles into form of
departments as well. (Rossi,
2019)Tesco also face many
problems in this structure as
the communication channel is
this type of structure is isolated
and may lead to
misunderstanding in the
employees and will result in
opting wrong path to complete
their task. Coordination is also
another problem which the
organization faced in this type
of structure as it was very
difficult to coordinate the
employees as they were
directed by their department
heard with different strategy.
Tesco have achieved the
Asda also follows the
hierarchical organizational
structure with the basic culture
which is followed by the
employees' believes and
culture which they inculcate in
the organization to increase the
effectiveness if the
management . This
organizational structure was
not successfully followed as
the employees were acing
many problems like lack of
communication as their
superior manager do no
communicate the proper
information to their
subordinates and also there
was no proper link between all
the departments which make
the coordination ineffective in
the organization. The company
solved this problem by
establishing the healthy work
environment and also increase
the efficiency of the employees
to participate . Asda has
followed the relation of
organizational structure and
culture which made the

objectives and also
successfully expanded the
company with solving all the
problems. For example banks
are uses the same hirachial
strustire so that they can
control the operations
effectivley.
organization achieve its
objectives and also helped in
expanding the company into
many markets.(Rogers, 2016)
for example uses the new
technological hierarchical
system which they can
increase the efficiency of the
organization.
Leadership style Tesco follows the democratic
leadership style which enable
the company to increase the
efficiency of their employees
by motivating them. As Tesco
is oriented on its consumers
and have to increase the
efficiency of the company so
that they can satisfy their
customers. The company also
implement different leadership
styles depending on the task to
get the maximum effectiveness
from their employees and also
increasing the profits of the
company.(Neumann, James
and, 2019) for example George
Washington, Abraham
Lincoln.
Asda follows Autocratic
leadership style in which the
company does no delegate
their authorities to their
subordinates and all the
decisions are made by the top-
level management and the
company does not allow any
other manager to use their
innovative ideas to increase
their efficiency of the company
which will decrease the morale
of the employees and
management and the company
will also not grow as it is
expected to. for example
Adolf Hitler, Genghis khan
were the famous autocratic
leaders.

LO 2
P 2 Evaluating The External Factors With PEST Analysis
PEST analysis is the tool which help any organization to analyze the external
environment of the organization and plan according to those factors which will help the
organization to increase the profits and also help in establishing in the market. (Nelson‐Brantley
and Ford, 2017)
Political Factors of Tesco
As Tesco is operating its business worldwide the company have to analyze the political
factors of the markets in which they are operating as it can impact the course of business and also
decrease the profitability of the company.(Ndaba and Anthony, 2015) Tesco always analyze the
political situation , government policies and always which are related to the nature of the
business and tax policies which will be different in every country. Government in some country
also helped Tesco in establishing their business as the company will provide employment
opportunities to the population.
Economic Factors of Tesco
Tesco have to analyze the economic factors as every market is having different economic
policies and economic stability of the country is also very important. The company always
analyze the inflation rate, market forces of the retail industry which is demand and apply in the
market as the company have to compete with the existing players in the market. Gross Domestic
Product of the country will also determine the net disposable income of the population and their
income earning capacity which will help Tesco in pricing policies to attract their customers. The
company have also focused on lowering the cost of the products to increase the sale in the poor
markets with low per capita income.
Social Factors of Tesco
Tesco have innovated their stores by converting them into volume stores and have
accumulated their stocks in one store which helped the company to increase the sales as the
company have analyzed the behavior of the customers and also have analyzed beliefs culture and
background . The customer who go for grocery shopping in the store will be attracted with many
other products. (Lopez and Wise, 2015)Tesco have also analyzed the growth in the awareness of
healthy food which have helped the company to innovate their services and also use the organic
products.

Technological Factors of Tesco
Tesco have also adopted the technology in their business as they have analyzed the
importance of adopting the technology. As the company have established the online store which
help the company to reach the customers which are not interested in going to purchase the
products. The company have also increased these services with providing home delivery services
to their customers. The company have also introduced the self billing layouts which help the
customer not to stand in the line for much and also made them independent in shopping of their
own.
Swot analysis of Tesco
1. strengths- large customer base which help the company to increase the profits.
2. Weaknesses- the efficiency of the company have dropped after Brexit.
3. Opportunities- the company have the opportunities to collaborate with other companies to
increase the market shares.
4. Threats- due to Brexit it can also convert into recession and decrease the profit margin of
the company. Government laws and policies will also decrease the efficiency of the
company.
Political Factors of Asda
Asda have analyzed the importance of determining the political factors to support the
business activities with evaluating the employee rights related policies which will improve the
employees, the company have also focused on taxation policies or any instability in the
government of the country as it can create losses to the investment made by Asda.(Jonesand
Mair, 2016)
Economic Factors
Asda have always analyzed the competitors strategies and have also determined the
salary trend of the employee, so they can always retain their employees with better job
satisfaction. The company have also analyzed the market demand and supply of the new market
before establishing so that they can make their strategy according to it. Electricity prices ,
competition in the market, employment rates in the market are the factors which Asda has
analyses.

Social Factors
The company have also analyzed the behavior the population in different age group and
also when they are influenced by the celebrity or a famous personality which helped Asda to
create the new products and also helped the company to target their products according the
strategies.
Technological Factors
Asda have also innovated their delivery services with the increase in technology as they
have developed a click and collect express delivery of their products which provide the customer
more satisfaction faster and also increase the customer and company relation by the best services
which will attract newer customers and also increase the sale of Asda.
Swot analysis of ASDA
1. strenghts- it has the effective management system.
2. Weaknesses- the comoany have not launches the stores which provide their products.
And not customer retention is applied.
3. Opportunities- online site will increase the sales and attract more customers.
4. Threats- price war with many competitors and increase in the market prices will be threat
for ASDA
Internal drivers of change
Technological capacity
Tesco need to develop their products and services and improve effectiveness of their
organization. Development in technology help them to achieve their goals and objectives
easily and develop their business at a large scale.
Organizational culture
Company need to know their organizational culture so that they are able to develop
their business. Need to know their employees so that they are able to motivate them to
work effectively.
Financial management
Funds are required for overall development of organization. Tesco need to maintain
funds in their organization and use them effectively towards development of organization.
Employee morale

Leaders of Tesco always try to develop morale of their employees by motivating
them providing fair remuneration on work done by them and try to develop and cope up
with new technologies and trends.
Poor delivering
Poor delivering of products and services to customers reduce overall effectiveness of
their products and services. Company need to provide services to their customers on time
and effectively.
Competition
Increase in competition effects overall development of products and services in an
organization and require to develop their business at a large scale. Need to bring
innovation and creativity in working to compete with their competitors.
High wastage
High wastage of resources reduces profitability of Tesco and reduces development
of organization. Company need to reduce wastage to develop their business at a large scale
and need to improve effectiveness of their products and services.
Recommendation
Asda should increase the efficiency of the employees by adopting the Tuckman's theory of team
goals which would make the high performance teams and increase the efficiency of the
company. Whereas Tesco have to make an effective strategy and also adopt the kotter's 8 stage
model so that the company can accept the change of BREXIT and increase the efficiency
accordingly.
Conclusion
The drivers for change will help the organizations to understand the internal functioning and
enable the organization to increase the effectiveness by implementing a better strategies and
models of management. Change in staff, management structure, strategies, policies will impact
the efficiency of the organization. Tesco and Asda had to analyze the changes to make the
effective organization and achieve the organizational objectives.
P 3 Solution To Negative Impacts of Change on Organizational Behaviour
There are many negative impacts which the organization faces when they are adopting
new changes to increase the core competency although the employee and other internal factors

which also negatively impact the origination like the employees faces mental depression and
have lost the energy to change themselves according to the organization, the company also fails
to retain their experienced and potential employees as they are not satisfied with the job
anymore. The productivity of the organization will also be decreased as adopting the new
changes will take time to understand by all the employees and will also agitate their employees
as their like schedule changes due to change in the organization structure and new policies
implemented by the organization. (Ismail, 2017) The organizational may also face many
problems in their success in changes as they may loose their potential workforce which is very
important to increase the productivity of their company. There are some models which will help
the organization to resolve the negative impacts faced by Asda and Tesco.
Kotter's 8 step Change Process
Kotter's 8 step process was followed by Tesco to solve the problem of change in the
organization so that the company can increase their productivity and also help the company to
achieve their objectives and increase the efficiency of the employees.
1. Create sense of importance
This is the first step of reducing the impact on the company for that the company have to
create the situation in current as the company may face it in near future like the company is
actually facing many problems with the change of technology, or any other external factors, the
company have to ask for the solution from the investors, and many other external forces by
explaining them all the factors which will help the company to increase the chance. (Wood,
Wrigley and Coe, 2016)
2. Form Powerful Group
Tesco have analyses the potential of the problem which they are going to face, and they
have to find support and form a group which will include powerful investors, industrialists and
stakeholders of the company.(Ismail, 2017) The company will have to continoulsy communicate
with the group to find the better solution and also increase the awareness by including the
potential company employees from different department sop that they can show the actual
problem the company is facing in detail.
3. Create a vision for change
The company in this step will formulate the strategy by establishing the vision of the
company and then find the solution to the problems In accordance of the vision formulated. The

company also have to motivate the employee and member of the company about the vision
statement formulated by Tesco.
Adopt the vision
After formulation of the vision the company also have to ensure that the group also
connect to the vision and help in supporting the company to solve the issues faced by the
company. When the company makes a proper strategy then the company will involve all the
employees to follow the vision of the company so that they can act on it effectively.
Remove Obstacles
In this step Tesco will amend the changes which is suggested by the group which was
made by the influential individual to improve the activities of the company. (Espedal , 2017) The
company will evaluate the most powerful and important problems which affect the main
activities of the company. The company have to analyze the proper acceptance of the vision by
their employees so that they can increase the efficiency to solve the problems.
Divide the Vision
After the successful acceptance of the vision by the employees the company have to
divide the vision into small task so that the employees do no feel pressurized and can attain the
task goals effectively and also the company have to analyze the right employee who have the
potential to achieve the set task objectives with most efficiency.
Evaluating the change
After Tesco have achieved the small tasks, the management have to analyze the obstacles
faced in completing the task, and they have to plan the best option to achieve the task objectives
faster as it will impact the time of overall change of the company. (Edwards-Groves and et.al.,
2019)
Controlling the change attitude
After Tesco have successfully attained the change the company have to analyze the
impact of change on the life and culture of the company to increase the efficiency of the
employee the management will motivate the employees and also train and develop them to
increase their efficiency. This all can be done by questionnaire, interviews, and also have
interactive sessions for employees, so they can openly give opinions about the changes which
have done in the company.
Lewin's Change Model