Understanding and Leading Change in Retail: A Comparative Report

This report delves into the intricacies of leading change within the retail sector, specifically focusing on Tesco and Marks & Spencer. It examines the impact of change on organizational strategy, operations, leadership, and individual and team behaviors. The report identifies and analyzes both internal and external drivers of change, such as technological advancements, organizational culture, political factors, and competitor actions, and their effects on the two companies. It explores various strategies employed by these firms to adapt to changing market dynamics, including competency-based strategies and pricing models. The report also investigates barriers to change and their influence on leadership decision-making, using force field analysis to evaluate driving and resisting forces. Furthermore, it discusses different leadership approaches to managing change and their effectiveness in delivering organizational transformation. Overall, the report provides a comparative analysis of change management practices in Tesco and Marks & Spencer, offering insights into the challenges and strategies involved in navigating a dynamic business environment.

Understanding and leading change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Impact of change on an organisation’s strategy and operations.......................................1
P2 Internal and external drivers of change impact leadership, individual behaviours and team 3
P3 Reduce negative impacts of change on organisational behaviour.....................................5
M1 Different drivers for change.............................................................................................6
M2 Appropriate theories and models.....................................................................................6
TASK 2............................................................................................................................................7
P4 Various barriers for change and influence leadership decision making............................7
M3 Force field analysis to analyse driving and resisting forces............................................8
TASK 3............................................................................................................................................9
P5 Various leadership approaches to dealing with change....................................................9
M4 Leadership approaches can deliver organisational change............................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Change is a necessary factor which helps in making the business successful. Base of an
organisation and success of business based on capabilities and also capacity of adopt some
changes in the business environment. It has been modified in a dynamic way. It is necessary for
the firm to make the changes on the basis of needs and demands of consumers. In addition to
this, change management refers to an adoption of techniques and also tools with developing
effective strategies in order to utilisation of available resources (Alkahtan and et. al., 2011 ). This
report is based on the two different organisations and these are Tesco and Marks & Spencer.
Both firms deal in the retail sector. Under this given report mentions about the methods under
which external and internal drivers of change impact on team, individual and also leadership
behaviour in an organisation. Various barriers for change and also influence of leadership
decision making in a company will be discussed in the given report.
TASK 1
P1. Impact of change on an organisation’s strategy and operations
Organisational change is about modifying and reviewing the business processes and
management structure. Change can be in business process and also in the structure of an
organisation. It can develop the positive as well as negative impact on business. At the time of
making change, it is necessary for manager to understand about reason behind changes to staff
members so that they can work in an effective manner in modifying environment. Change is an
internal part of business. Marks & Spencer and Tesco both are large retail business firms that
provide their products in all over the world (Aslan and Reigeluth, 2013). It is essential for every
business firm to accept the beneficial as well as favourable changes in a company in order to take
some benefits of changing trends. There are more external factors such as social, political, legal,
economic, environmental and technological that are the major key drivers of change. A
determination of all these factors is helpful for the management of Marks & Spencer and Tesco
in order to develop effective strategies. There are some benefits which can attained through
changes given below:
Encourage innovation- Acceptance and identification of change can develop innovative
ideas in between staff members related to deployment of functions. It will be helpful in
increasing the business activities in an effective manner.
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Competitive advantage- An acceptance of change is helpful in making improvement in
the products or service quality in comparison to its competitors at market place. From this,
company can capture a large market share.
Enhanced efficiency- Changes enhanced an efficiency process which will be beneficial in
satisfying the needs and wants of consumers and staff members (Clarke and Persaud, 2011).
From adopting the new technology, employees will work in an effective manner and their
efficiency will be increased as well.
There is the description of Marks & Spencer and Tesco as given below:
Tesco- It is a multinational general merchandise and also grocery retailer in the United
Kingdom. This company is the third biggest retailer in all over the world. The stores of this
organisation is in around 12 countries. This business firm deals in electronics, clothing, petrol,
clothing and internet services, etc. Tesco has total 6,553 stores and its revenue is £55,917
million. But the main products of this firm are hypermarket, supermarket and also superstore.
Firm is regularly expanding its business in other countries. At the time of executing any change
at workplace, manager of this company include all its staff members in the process.
Marks & Spencer- It is the main British Multinational retailer in London. This firm is
specialised in selling of home products, luxury food items and also clothing. Now, this company
started to sell some branded products like for an instance Kellogg's Corn Flakes. In the United
Kingdom, it has presently 979 stores in which 615 sell only food items. The revenue of this
organisation is £10,622.0 million (Doppelt, 2017).
Both these firms provide their products as well as services in all over the world and some
factors which impact on changes on both firms. There are some effective strategies that are used
by both retail organisations in order to differentiate in their business operations as well as
activities which are given as below:
Strategies Marks & Spencer Tesco
Competency
based strategies
This business firm analyses tastes
and preferences of consumers in
order to keep their wants or needs
at the top. This company produces
better quality of goods and
services on the basis of consumer's
This organization also deals in retail
sector. It produces better quality of
services and also products. It makes
changes on the basis of demands of
staff members as well as customers.
This firm also conducts research to
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taste. The needs and preferences
of consumers change day by day.
So, this firm makes regular change
and give additional things in the
existing products so that they can
get attracted towards services and
goods of Marks & Spencer.
know about the preferences and taste of
consumers and then produce their
goods better quality goods which can
satisfy their needs and wants.
Pricing strategies It provides its goods at the
domestic as well as international
products. But it always tries to
provide its services and product on
the reasonable cost so that every
person can consume in an easy
manner. If firm will provide goods
on high rate then its impact will be
bad on the business and profit. It is
necessary that company should
provide an economic and better
quality of services and products.
It is the second largest retailer across
world and this firm follows and use a
competitive pricing policy in order to
beat its competitors.
Tesco and Marks & Spencer both firms are different from each other their working
process and also working culture is also different. In Tesco business firm, staff members give
their contribution in making the business successful. In this company, there are different talented
as well as knowledgeable people whose focus on attracting more people towards firm. The
production process of this organisation is highly affected on profitability as well as performance
ratio in a systematic manner. On the other hand the main focus on Marks & Spencer staff
members to enhancing the sales as well as revenue with in a specific time period. This
organisation applying the production process in context to manufacture its goods for end users.
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P2 Internal and external drivers of change impact leadership, individual behaviours and team
Change drivers is something which develop a main affect on performance level of
business. It investigated about the main global trends as well as problems driving change in
market as well as society (Foltin and Keller, 2012). Driver of change is a necessary factor which
contribute towards development and also growth of specific business. Factors can be internal as
well as external which develop negative and positive impact on business. In context to
globalisation, all business firms have globalised their operations and also business activities.
Similarly, Marks & Spencer and Tesco both organisation do their business in all over the world.
In addition to this, business environment of each country is different from each other and they
have many external factors which impacts on business operation as well as activities. In internal
drivers of change includes morale of employees, technology, organisational culture etc. On the
other hand, in external key drives of change includes political, economical, competitors etc.
Tesco and Marks & Spencer both firms are impacted through external and also internal
change drivers (Fullan, 2014). But all these factors also have affected on behaviour and
leadership of individual and team of an organisation. In a business firm, there is a big role of
leader in giving guidelines and also the right path to persons in order to accomplish the specific
aims and objectives in an effective manner. Leaders impact on on persons as well as group of
people in order to perform the specific job in a proper manner so that the mission and vision of
firm can be accomplished. Marks & Spencer business firm includes effective style of leadership
which is helpful in achieving targets and aims of an organisation. There are internal and external
key drivers of change are given below:
Affect of internal change drivers on Tesco and Marks & Spencer
An internal change of drivers are concerned with business activities as well as operations
and it impacts on business from inside. It is a necessary factor which can be occur to some
modifications to accept the challenges and also take some fair decision in favour of an
organisation. There are some internal forces are mention below as above:
Technological capacity- It is a most necessary factor which is based on organisational
change. Marks & Spencer and Tesco both firms deals at international level. In order to making
the business process better, both firms need to adopt and use new and advanced technology. It
will helps in proving better shape to operations for the long period of time. It will develop more
affect on the performance behaviour of people and leadership.
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Organisational culture- It develops a main impact on the behaviour of teams as well as
individuals. It is a responsibility of both firms management to include all cultural differences
which are present in company. In order to improve efficiency and growth of staff members, firm
should work on removing this culture differences. Regarding this, managers should prepare
effective policies.
Morale of staff members- In an organisation, all staff members are not adjust in changing
environment. They do not want to adjust. So, it is necessary for manager that before
implementation of any kind of change understand employees about the change benefits so that
they can contribute in it (Hallinger and Heck, 2011). If staff members will be satisfied from their
job then it helps in increasing their morale and they will work on achieving organisational
objective sin an effective manner.
Affect of external change drivers on Tesco and Marks & Spencer
External drivers of change impact on business functions and also operations from outside
the firm. Under this, company is impacted from the different factors and these are uncontrollable
and also unmanageable. Some of the external forces are mention below:
Political- Tesco and Marks & Spencer both business firm do its business operations
globally. But the political rules and regulations of every firm is varied from each other. This
factor develop negative impacts on business, behaviour of teams and people and also leadership.
Before conducting business in other countries, it is necessary for firm to know about the policies
of other country and then work according to that.
Competitors- It is a necessary factor which can lead to change in business concerned with
employees as well as team behaviour. In context to this, both companies should develop
innovative products so that they can compete their strong competitors in an effective or proper
manner. It will be helpful in accomplishing aims and objectives of company with in a given time
period.
Economical- Under this factor consist sources of funds, cash flow economy, income level
of individual etc. These all affect on business operations as well as activities on both firms. If in
a specific county, income level of individuals will be good then they can buy expensive products
and it is helpful in enhancing products demand (Hrebiniak, 2013). Then from this staff members
as well as teams will work on producing innovative items.
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P3 Reduce negative impacts of change on organisational behaviour
Success of business is based on policies and strategies of change management which are
used through company regrading reducing negative impacts if change at workplace. There are
some theories which are used through managers of Tesco and Marks & Spencer in minimizing
negative impacts on business. The theories are give below:
System theory- It is an interdisciplinary system study. It is an effective approach to
leadership as well as development of business which can be executed through any leader at
workplace to increase business efficiency and effectiveness. This theory is used by the
management of both firms to develop effective leadership qualities between staff members. This
theory provides many advantages in innovation development among staff members and handle
all business situation. In order to reducing adverse impact of change, forms use this system
theory. It is also helpful in reducing negative affect on business operations.
This strategy is helpful in reducing negative affect of change on business because it is
complex to many impacts on the business. The main focus of this business firm is to neglecting
negative affects in order to developing positive working environment.
Complexity theory- An application of Complexity their is helpful in analysing a
diversity which are present in external or internal factors like for an instance consumers,
political, suppliers, society etc. The main objective of this theory is yo identify complex and
difficult conditions at small level (Johnson, 2015). With the help of determining complex
situations, managers can reduce their impacts and making better workplace in organisation. In
the application areas of this theory consist understand that in what manner company adopt top
environment and how to deal with uncertainty situations. It gives effective and beneficial
opportunities to management through developing proper policies and give right direction to staff
remembers so that they can performance their functions according to implemented policies. It
will be helpful in reducing negative impact.
Continuous improvement model- Continuous improvement is helpful in making
business effective as well as profitable. It is ongoing effort to make improvement on the process,
goods and services on regular basis. With the help if executing this model in a proper manner,
Marks & Spencer and Tesco both firm can able in achieving set objectives (Keppel, G. and et.
al., 2012). Under this model consist proper development cycle which is helpful in accept all
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changes which are beneficial in future. Under this PDCA cycle is included which are mention
below as above:
Plan- It helps in determine an effective opportunity and also plan for the change. It is
helpful in identify all changes which are happen.
Do- Under this, both firms need to be executed at the small scale and also find
opportunities.
Check- In this, managers of Marks & Spencer and Tesco both firms can use data for
measuring outcomes from change and then need to identify all differences.
Act- If in case change is successful then need to execute at large scale and also regularly
check the results. If the change is not work properly then there is a need to start this cycle again.
There are some of the necessary measures which support to overcome from, negative
affects:
Individual behaviour- It is helpful in accepting difficulties as well as challenges in
business environment. There are many business firms which undertakes this kind of technique
and then provide the training to staff members so that they can work in an effective and better
manner.
Teams- It is another supportive strategies to adopt many changes and also minimize
negative affects on business to develop the healthy working environment. If all employees will
work in a team then they can achieve the business objectives in an effective and better manner.
From this, the chances of business failure will be reduced and it will be helpful in developing
positive impact on business.
Kotters steps for change are given below:
Step 1: Develop Urgency- Under this method, making staff members aware of urgency
and needs for the change and also develop the support, it needs open, convincing dialogue and
also honest.
Step 2: Form Powerful Coalition- Under this the big change programmes are not
enough as the manager should communicate all changes to staff members which helps in
coordination and also a team.
Step 3: Develop Vision for Change- It is necessary that changes should be short,
understandable and also the clear to develop effective element so that vision should be clearly
understandable to people which are impacted through change.
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Step 4: Communicate the Vision- Under this, it is not enough to using vision it should
be verbal as well as written.
Step 5: Remove Obstacles- It is necessary that organisational process should be
according to vision and also regularly check all barriers and also people which are resisting
change. In order to remove obstacles, firm need to execute proactive actions which are including
in change process.
Step 6: Create Short-Term Wins- In order to implementing the change, it is necessary
for firm to develop short term vision and it will be helpful in providing many benefits to
business.
Step 7: Consolidating Gains- Attaining regularly improving through analysing
individual success stories and also improving them from the experience of individuals.
Step 8: Anchor the Changes in Corporate Culture- It is necessary that organisation
should be assure that change is an internal part of company culture and it should be visible to
each organisation. In addition to this, leaders should support the change and motivate team
members.
M1 Different drivers for change
There are efferent factors or elements which are regarded as change drivers. Some of are
management, staff members, government etc. They all plays necessary role in effective and
efficient working of company. In an organisation, some drivers of change develops impact on
profit level and productivity of business. In context to this, it is necessary for manner to do
proper analysis and vigilant of external and internal environment to sustain in competitive
market place.
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M2 Appropriate theories and models
Various organisations responds change in various manner. In this, firm uses the different
theories for minimizing the change on the organisational behaviour and these are complexity and
system theory. Both are helpful in developing positive affect on business and firm can perform
well at the market place. In order to know about strengths and weaknesses, Tesco company do
the SWOT analysis.
TASK 2
P4 Various barriers for change and influence leadership decision making
Force Field analysis- It is an essential model in which an evaluation of factors are
includes which can be in the favour or against change. It is regarded as a most necessary
technique which asses in enhance decision making power of management and also helps in
success of business. This factor gives a structure for looking at those forces which can influence
on social conditions (Salmela, Eriksson and Fagerström, 2012). This technique is helpful in
determining as well as measuring positive factors of driving forces or negative factors which
helps in archiving business aims and objectives in an effective manner. Under this some steps are
included:
Step 1: Proposal for change- It consist regarding defining vision and mission process of an
organisation. It is helpful in determination of appropriate and effective change model which
helps in achieving organisational aims.
Step 2: Identification of forces of change- It is necessary for firm to determine internal and
external change drives.
Internal change drivers
 Employee morale
 Upgrade technology
 Organisational culture
External change drivers
 Demographic trends
 Rivals
 Economic environment
Step 3: Identification of forces against change
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Under this an unfavourable change are included.
External resistors
 Consumers
 Government rules and regulations
Internal resistors
 Attitude and behaviour of workers
Step 4: Assign scores- It is about give score to those forces which are strong and weak. Under
this, management give ratings to forces on the basis of their performance (Glass and Cook,
2016).
Step 5: Analysis and application- It consist regarding an evaluation of impact on change forces
as well as preparation of plans. Under this firm decide to move forward and not with those forces
which provides strength to business.
Barriers of change and affect on decision making of leaders
Minimum employee involvement- It is a main barrier in change management. Most of the
employees fear from change and they are not involve in implementing change. If the managers
will not include staff members in changing process then it develop bad impact on business and it
will be the main barrier in change management. To reduce this barrier, leader should aware about
the benefits of change at workplace.
Lack of communication- At work place communication plays a necessary role. If
communication among staff members and management will not be proper then it develop
negative impact and productivity of firm will badly impacted. It is necessary that leader should
motivate its team members and aloes communicate with them in a proper manner. It will help in
decision making process.
Ineffective leadership- It is necessary that leader should be motivated and also increase
job satisfaction of staff members (Stanleigh, 2013). An ineffective leadership demotivated staff
members. So, in context to this, leaders should be fair as well as should know how to deal with
team members. It is necessary that it should provide training to team members so that their
working efficiency in an effective manner. It will be helpful in enhancing motivational level of
employees and they will focus on attaining organisational goals in a systematic manner.
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M3 Force field analysis to analyse driving and resisting forces
Force field analysis refers to the development in the social science. It is general tool for
measuring all factors which found in difficult issues in a systematic manner. It gives framework
to look factors which impact on situation. Idea or through behind an analysis of force field are
maintained through equilibrium among forces which are change for drivers and resist change.
TASK 3
P5 Various leadership approaches to dealing with change
The Marks & Spencer both firms used the effective leadership approach which helps in
making business successful as well as effective. In order to enhancing motivational level of staff
members, leaders guide them properly so that they can work on achieving common
organisational goals with in a specific period of time. Leadership is helpful in giving direction,
motivating staff members and also executing plans and policies in an effective manner. There are
some different leadership approaches which used by Marks & Spencer and Tesco organisation in
order to deal with change:
Autocratic leadership- It is categorised through control on all necessary decisions from
team members. These types of leaders do not includes their staff members in the precess of
decision making and they do not like to take opinions, view points and ideas from its staff
members. They work in their own manner (Suchman, Sluyter and Williamson, 2011). Under this
leaders can adopt this kind of leadership style through gathering feedbacks and also data by
various surveys from the other staff members in an ingratiation. It will be helpful in dealing with
many situations.
Democratic leadership- In this, manager or leader include its employees in the process
of decision making. It increases their morale or motivation to do work in systematic manner.
Regrading any kind of decision, leader take suggestions and ideas from team members do and
then focus on them. They treat their employees in a fair manner. This leadership is depend on the
mutual resect and under this leaders always provide right direction to staff members for
increasing their working efficiency. This type of leader knows very well to deal with the
different kinds of situation like for an instance manage the change at workplace in an effective
manner.
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Transformational leadership- This kind of leadership is based on the high
communication level from the management in order to meet goals and objectives. Under this,
leaders increase motivational level of staff members and also increase effectiveness and
productivity by high visibility and communication (Yoder-Wise, 2014). It includes management
involvement to achieve the set aims and goals in an effective manner. It helps in enhancing
development and profit level of business firm. Under this, leaders support their staff members in
order to take the better and effective decision in favour of company. It is related to managing the
day- to- day business activities as well as operations.
These all are the leadership approaches but among all of them there is a single approach
which is helpful in dealing with changes and that is democratic leadership approach. It is more
effective and in this leader deal with staff members in a better manner and also include them in
the decision making process. Managers understand the importance to them and develop positive
working environment so that they can work without any issue or conflict.
Apply various leadership approaches to dealing with the change which are given
below as above:
 In democratic leadership, while change is implement at workplace then manager aware
the staff members about the change and resolve all their issues.
 In an autocratic leadership, leader does not discuss with its staff members about changes
and not includes them in decision making process. So, it develops the negative affect on
employees mind. It is necessary that regarding change leaders should develop proper
communication with consumers because each person is not comfortable in changing
environment.
 In transformational leadership, regarding change, leader enhance motivation level of staff
members and ready them for accept the change because it is necessary in business for
better improvements.
Situational leadership- This style of leadership has been created through Kenneth Blanchard
and Paul Hersey. Under this manager or leader of an organisation should adjust its style in order
to fir development level of staff members. The leaders of Tesco and Marks & Spencer firm
adjust their leadership style according to situation. Some components of situational leadership
styles given below as above:
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Feeling- In this, leader understand feelings and sentiments of all team members and
provide them guidance or see them right path for doing business activities in a better and
effective manner.
Selling- Under this, leader is included in daily activities in company and decisions are
still lie with leader but the request is input from staff members before executed any decisions at
workplace.
Participating- This type of leadership pass their responsibilities to staff members. While
leader gives guidance and direction so that decisions can be taken by firm in a better manner.
Delegating- Under this leaders is included in decisions and responsibilities as well as
processes had passed to group and an individual which are capable. But leader is included to to
monitor the whole progress.
Hersey and Blanchard theory- Right style of leadership will based on group or individual
being led. In order to doing or performing task, there is a need to increase skills as well as
competencies to team members in a better manner. This theory has two main pillars and these are
maturity level and leadership style. Under maturity level four levels are included:
 M-1: Basic incompetence in doing activities
 M-2: Inability for doing activities but willing perform
 M-3: Competent to perform task but not think they can
 M-4: Group or individual is willing,ready and also able to do given task
Under leadership four behaviours are included which are given below:
 S-1 Selling
 S-2 Delegating
 S-3 Participating
 S-4 Telling
M4 Leadership approaches can deliver organisational change
There are different kinds of leadership styles which are used in Tesco business in order to
improving business as well as staff members performance level for accomplishing aims and
goals. The different approaches of leadership are transformational, democratic, autocratic etc. All
are very effective in making business successful and managing change in business. It will be
helpful in increasing productivity and effectiveness of staff members.
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CONCLUSION
It has been concluded from the given business report that change is necessary in making
business successful. Organisations use various tactics as well as strategies in order to increase
development and also profit level of an organisation. In this given report mentions about various
leadership approaches for dealing with the change in an effective manner. Leaders guide their
employees and provide them right direction, so that employees can work better. Under given
report studied about the external and also internal change drivers which impact on individual
behaviour, team and also leadership.
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