Unit 17: Leading Change: Tesco Strategy and Operations Analysis

This report provides a comprehensive analysis of change management within Tesco, a multinational grocery and general merchandise retailer. It begins by comparing Tesco's strategic and operational adaptations to change with those of Ocado, highlighting the impact of technology and consumer demand. The report then evaluates internal and external drivers of change, including political, economic, social, and technological factors, alongside a SWOT analysis of Tesco. It explores measures for implementing change, referencing Lewin's change management model. The report also discusses barriers to change and different leadership approaches. The analysis emphasizes the importance of understanding market dynamics and implementing strategies to ensure business growth and success. The report underscores the need for organizations to adapt to technological advancements and consumer preferences to maintain a competitive edge.

Unit 17
Understanding And Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations....................................................................................1
TASK 2 ...........................................................................................................................................3
P 2 Evaluate internal and external drivers ..................................................................................3
P 3 Evaluate measures that can be taken ....................................................................................5
TASK 3 ...........................................................................................................................................6
P4 Explain different barriers for change......................................................................................6
P 5 Different different leadership approaches ............................................................................8
CONCLUSION ...............................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Understanding and leading change prepares participants to meet the problems that come
with initiating & implementing change. As the business environment is dynamic so it is
important to understand the market conditions and based on it required changes are needed to be
implemented so that business can grow and get success. To better understand this concept Tesco
has been chosen which is a British Multinational groceries & general merchandise retailer .
There are various topics are covered in this report such as: to compare ways in which change
impacts on corporation's strategy & operations, to analyse the influences that drivers of change
have on organisational behaviour and to determine barriers to change influence leadership
decision making. Apart from this it discusses about to apply range of leadership approaches to a
change initiative.
TASK 1
P1 Compare different organisational examples
Organisational strategy is made in order to achieve the business objectives and it is
important for the firms to make an effective plan as per the requirement of operations so that
work can be done as per the requirement. To survive in dynamic environment, it is important to
analyse the demand and preferences so that better policies can prepare which support the growth
of corporation. Business operations may vary as per the nature, size, industry and type of
business. It is required to investigate the factors that change and affect the company’s strategy
and operations to sustain in external environment.
As technology is changing or updating frequently and consumer’s needs innovative
things in order to fulfil their demand. It is require for Tesco to analyse the change in the market
and on the basis of it strategies can be implemented which support the growth of business
operations. It is important for the organisation to identify the needs of consumers and try to
provide quality products and services to meet the requirements of customers. If company adopt
the changes than it can positively affect the organisation and its operations will be smoother and
it helps the firm to achieve predetermined goals and objective. As corporation can earn higher
profits which is beneficial in the growth of business.
The significant changes which are adopted by Tesco in comparison of other organisations:
Basis of difference Tesco Ocado
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Strategy As it is require for the
organisation to analyse the
changes and on the basis of it
specific strategy can be
implemented. For Tesco it is
require using better strategy
and make online delivery.
There are various stores of
company in different nations
so it is important for
corporation to launch an app
and with the help of this
consumers can place online
orders. saw due to presence of
driver like technology
So this strategy is beneficial
for the firm to maximize its
sales and grab more market
share. As a result, profitability
of organisation will increase.
Ocado is famous for online
delivery and it has no chain of
stores and it deliver the
products from the warehouse.
For that purpose, company can
make warehouse in those areas
in which they get maximum
number of orders from
consumers. So that
transportation can will be
minimise and profits can be
maximize. Due to the demand
of consumer needed to open
physical stores. It is considered
as change and then needed to
analyse the impact upon
strategy and operation This
strategy is beneficial for the
growth of business.
Operation Impact of change in operations
can be positive as because
company has multiple stores in
the country and consumers can
visit and purchase the
products. For that purpose, it
must maintain large stock in
the stores and from warehouse
goods reach to the store. It
involves huge transportation
cost and warehouse cost and
As the operations of company
are effective because it
supplies the goods directly
from the warehouse. For that
purpose, it must maintain stock
in the warehouse so that it can
deliver the order as per the
requirement of consumers. But
it can improve its supply chain
management and does not
make huge inventory in the
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sometime due to transportation
strike products does not reach
to stores within stipulated time
period and it affects the
business operations. So, it is
essential that warehouse does
not located far from the stores
and it is beneficial to minimise
transportation cost and
delivery of time. As a result,
business operations will not
affect and corporation can earn
higher profits. The changes
were mainly adopted due to
sales and delivery
enhancement.
warehouse because it will
increase the warehouse cost.
For that purpose, company can
contact the suppliers and
instruct them that while
receiving the order from
consumers it will inform the
suppliers and they can pack the
products and deliver to the
warehouse and from
warehouse goods will be
deliver to the consumers. As a
result, Ocado does not need to
maintain huge inventory in the
warehouse. It is beneficial for
the organisation to maximize
the profits.
As it has been analyse that there is a comparison has made among the two organisations
which are Tesco and Ocado and for that purpose operations and strategies has been compared
and on the basis of it further decision can be taken for the improvement.
TASK 2
P 2 Evaluate internal and external drivers
External factors: These are those factors which operates outside the business environment
and corporation does not have control it. There are various elements of external factors which
can affect leadership, team & individual behaviours with the company (Gaubatz and Ensminger,
2017).
Political: To investigate this factor is important for the organisation and it involves laws
and legislations, consumer right, taxes policy etc. As an instance, import duty on goods can
affect Tesco business reason being it imports some inventory form outside United Kingdom such
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as: East Asia and Chain. So, it is important for management team and leaders to analyse this
factors so that it does not affect the behaviour of individuals with the organisation.
Economic: Economic factors involve disposal income, demand & supply, inflation and
deflation rate etc. As an example, if inflation rate is increasing and team members & individuals
does not analyse this factor than prices of products will rise and consumers will not show their
willingness to purchase the products.
Social: This factor involves culture, lifestyle, preferences and attitude of people who
lives in the society. As an example, if food habits, demand and preferences of consumers are
have change and management team of Tesco does not consider these things than individual
behaviours will affect because they will not purchase the products of company.
Technology: As the people of UK are more concern about innovative technology and if
team members does not know how to use the digital technology than business of Tesco will
affect. It shows that leadership is not effective because leaders are not providing training to the
workers about the uses of technology (Foltin and Keller, 2012).
Internal factor: These are those factors with are associated with internal business
environment and can affect leadership, teamwork and behaviour of individuals and there are
various elements of it which are as mention below:
SWOT analysis of Tesco
Strength:
Tesco is the leading grocery retailer and
number one supermarket in UK because it can
satisfy the needs of consumers. This is the year
2018 operating profits of company will
increase by 28%.
Business of Tesco is diversified in more than
14 countries and it has more than 6800 stores
across the globe. As a result, it is earning more
profits and have more market share.
Weakness:
Due to the ineffective management and
operations, its stores have been closed in
American and Japanese market and through its
market image has been affected and profits has
been reduced.
Competitive pressure has led to price wars that
have eroded some of the retailer's profit margin
while company should have been focused on
other ways to gain competitive advantage.
Opportunities:
Tesco has great opportunity to promote online
Threat:
The competitors like WalMart, Carrefour and
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shopping and provide the services of home
delivery to more areas.
To enhance market share it can make strategy
alliances with other brand so that profits will
maximize.
Aldi can impact the business operations of
Tesco because they have good market image
and market share (Feldman and Milosevic,
2017).
Currency fluctuation in international market.
As six box organisational model is helpful for Tesco to accurately assess the functioning
of the business and the main advantage of this model is its ability to adapt to just business which
happens to be in. This model has emphasis towrads six factors which are purpose, structure,
relationship reward, leadership and helpful mechanism and it is important to consider for the
organisational growth.
P 3 Evaluate measures that can be taken
It is vital for a company to adopt changes like use of innovative technology in order to
get competitive advantage from rivalries. To enhance the business performance, it is required to
implement necessary changes so that business can grow and get success. For that purpose, it is
required for Tesco to make better strategy for employer and employee both as a result workers
will encourage to accomplish the goals of organisation. As corporation has adopted Lewin's
change management model that is mention as below:
Lewin's change model:
This model has been developed by the Kurt Lewin's which states that to implement
changes is normally completed procedure and it is not easy. To adopt changes, it is require for
Tesco to make effective strategy so that business of company can grow. It has mainly three
elements which are as mention below:
Unfreeze stage: Under this stage staffs become familiar with the company & adopt the
changes to conduct business activities. For that purpose, role of management is to support the
employees and describe the advantage to adopt changes which is related to using innovative
technology. As a result willingness of workers will increase towards their work and they perform
better in order to achieve objectives of Tesco.
Change stage: In this stage management of organisation implement the changes in very
short period of time. As because company does not want workers get back to their old habits of
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doing work as they are more comfortable in old rituals. However, the corporation's culture
should be cooperative as transition from unfreezing to change stage requires time as it let the
staffs to move new direction.
Refreeze stage: Under this stage the changes adopted by organisation are solidified &
workers are less likely to get back to old habits. For that purpose, manager monitor the activities
of staffs and guide them to perform in right direction, even workers realize that they can not get
back to old habits due to which they face the new changes effectively.
So these steps are helpful for the workers to adopt new changes as perform as per the
requirement of organisation (Espedal, 2017).
SWOT analysis
Strength:
Leading grocery retailer and number one
supermarket in UK
Weakness:
Price wars that have eroded some of the
retailer's profit margin
Opportunities:
To grab more market share where it is not
operating currently.
Threat
WalMart, Carrefour and Aldi are the
competitors which can affect the profitability
of Tesco.
TASK 3
P4 Explain different barriers for change
As the main barrier which is faced by the company is lack of involvement of the workers
to adopt new changes and it affect the decision-making process. As the need of changes are
uncertain but it is the responsibility of leader to motivate staff in order to adopt changes by
providing right direction. Force field analysis is being used to overcome the berries for changes
while determining its influences on leadership decision making for the benefit of organisation.
Force field analysis: Kurt Lewin has introduced this model which is helpful to take
better decisions which support the growth of company. It develops equilibrium among the forces
which incite and required for the organisation to adopt changes whereas resisting forces restrict
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the organisation to adopt the changes. As an example, consumers of Tesco want that organisation
serve wide range of products by adding more items. On the other hand, government of United
Kingdom has restricted the size of retail store because organisation face difficulty to wider its
product range which is an element of resisting factor. As there are various elements of forces
field analysis which are as:
Change substance: In this stage, management of Tesco can analyse what changes are
require in order to get the advantage of competitiveness (Edwards Groves and Rönnerman,
2013).
Identification of change force: Before adopting any changes, it is require for the
manager of Tesco to analyse the risk which is associated with it and after that changes are
needed to be implemented. So, this is beneficial for the organisation to develop better strategy.
Identification of force against direction: As the management of Tesco analyse distinct
alternatives which help the organisation to get more advantage so that it can sustain for a long
term.
Score assign: As Tesco provides the score in order to make changes so that it can get
maximum benefit from it.
Evaluate as well as executive: Under this stage, management of organisation analyse
and evaluate the required changes which are implemented by organisation in order to execution
of plan so that firm can achieve its objectives.
Driving forces of Tesco
 Consumers want that organisation add some new food products so that product line can
be wider and they get different variety of products.
 Tesco wants to remain ahead of competitors by using innovative technology so that it can
earn higher profits by satisfying desires of consumers.
Resisting Forces of Tesco
To implement innovative technology is require heavy investment which minimize the
liquidity in corporation. Apart from this company have to provide training to the workers to use
innovative technology.
Due to the lack of workers involvement regarding adoption of changes that influence the
relationship among management and staff (Diaz-Rainey and Wilson, 2017).
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Barriers of change: Barriers can restrict the changes within the company and these are
as mention below:
Lack of effective communication: For a corporation it is require maintaining healthy
communication so that work can be done effectively. On the other side, if organisation is lacking
in developing better communication regarding adoption of changes will cause the resistance from
staffs because they are not aware about the requirement and need of changes. So it is necessary
for Tesco to take corrective actions in order to enhance the communication so that leadership
decisions do not get influence.
Employees resistance towards change: Generally, workers does not accept the changes
because they are habitual of old working style. For that purpose, it is require for the leader to use
effective leadership style and realise the employees about the importance of changes and motive
them to perform as per the requirement of firm.
Driving & resistance forces influencing leadership decision making process:
As Driving forces are external force which appears because of changes in technology or
the demand of consumers. However, this situation make pressure upon the organisation to
implement new changes by using better strategies and it can motivate the staffs to adopt such
changes in order to achieve the objectives. Apart from this, resistance force will restrict the
workers to engage in the work of company. So these are the main barriers for changes and for
that purpose leader is responsible to take better decisions by using the leadership skills so that
employees will get motivated to adopt the changes (Coghlan and Shani, 2015).
Competitors are the main barriers which can hamper the organisational strategies and its
performance and it involves: Carrefour and Aldi.
P 5 Different leadership approaches
There are different types of leadership approaches which can use by the company while
dealing with change and these are as mention below:
Situation leadership approach: Under this approach of leadership, leader takes the
decisions based on situations which arises in the organisation. As an example, if Tesco get more
number of food order in a day and it does not have sufficient raw material. In this situation leader
of Tesco can purchase raw material form local market in order to fulfil the requirement of orders
which company gets by consumers. As the main benefit of this approach is that business
operations do not get affected by taking effective decisions as per the need of situation.
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Democratic leadership approach: Under this approach leader support the employees
and take their suggestions in decisions making process. As an example, if Tesco wants to
implement new technology than leader can involve the employees in decision making process
and realise the importance of and benefits of using innovative technology. As a result, workers
will take the decisions that they will use the new technology in their day to day business
operations. So this approach of leadership gives positive impact of change.
Behavioural approach of leadership: This approach of leadership is emphasis towards
the behaviour of individuals. As because employees come from different backgrounds and they
have its own working style and attitude. It is the behaviour of staffs that they does not adopt the
new changes easily and in this regard it is the duty of leader to motivate the workers so that they
think positive and ready to accept the changes in order to achieve the objectives of Tesco (Cassel
and Lee, 2012).
These are the approaches and leadership practices which are needed to be consider and it
is helpful in context to the business growth of Tesco.
CONCLUSION
As from the above report, it has been concluded that it is important for the organisation to
adopt the changes as per the need so that business can grow and it can earn more profits. As the
manager is responsible to make effective organisational strategy which support the changes. It is
important to evaluate internal & external drivers of change so that business of organisation does
not get affect. With the help of better leadership decision barriers can be identify which restrict
the changes. There are various leadership approaches which are used by the company in order to
deal with the changes. So it is important for the organisation to understand the change and on the
basis of it strategies should be made and it is helpful for the corporation to achieve its objectives.
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