Leading Change in Tesco and Aldi: A Comparative Analysis

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Running head: LEADING CHANGE
Leading Change
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LEADING CHANGE
Table of Contents
1. Introduction................................................................................................................................3
Task 1 Managing the Impact of Change........................................................................................4
Part A: Responding to Change......................................................................................................4
2. Compare different organisational examples where there has been an impact of change on an
organisation strategy and operations............................................................................................4
Technology.................................................................................................................................4
Company factors........................................................................................................................5
Strategy......................................................................................................................................5
Part B: The Impact of Change.......................................................................................................7
3. Evaluate the ways in which internal and external drivers of change affect leadership team and
individual behaviour within an organisation...................................................................................7
Internal drivers...........................................................................................................................7
External drivers:.........................................................................................................................9
4. Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour.............................................................................................................11
Task 2 Leadership Decision Making............................................................................................13
5. Explain different barriers for change and determine how they influence leadership decision
making in a given organisational context.....................................................................................13
Barriers to change:...................................................................................................................14
Task 3 Leading Change..............................................................................................................16
6. Apply different leadership approaches to dealing with change in a range of organisational
contexts.......................................................................................................................................16
7. Conclusion...............................................................................................................................18
8. Reference List:.........................................................................................................................19

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Introduction
Leading change helps to earn growth and something unconventional that can help the business
to excel in the market. Change can be interpreted as a certain level of transmutation and
interjection of the new manoeuvrings so that the company can intensify productivity and
profitability, and harmonise the fundamentals of the market and the consumers. Leading a
change will change the process of administration and the activities implemented will play a
crucial role in the transformation of the business (Kezar 2018). The understanding and the urge
of the employees, the managers and leaders of the company is very much crucial to continue
with the change, and the administrators will have to supervise the workers at all times to make
the transmutation victorious.
Tesco and Aldi will be taken into consideration, as they are one of the topmost retail brands in
the world and is likely to introduce several changes in their operations. This assignment will
focus on the impact of change on the operations and strategy of the company and will help to
conjuncture the internal and external drivers that are associated with the change and the way in
which it affects leadership and individual behaviour within an organisation. The different barriers
to change will be highlighted and leadership approaches will be rendered so that the company
can amplify profits because of the transmutation and the removal of the barriers can be done to
introduce the change.

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Task 1 Managing the Impact of Change
Part A: Responding to Change
Compare different organisational examples where there has been an impact of
change on an organisation strategy and operations
Both of the organisations have implemented several changes in the market so that they can
increase their productivity and their competitive advantage to an extensive level.
Technology
Most of the advancement has been done in the technological components, and the companies
believe that the improvement of technology can influence the production and the efficiency, and
will help to understand the demand, which can be easily fulfilled after the implementation of the
change (Hawkridge et al. 2018). Changes have been made according to the requirements, taste
and preferences of the customers in different segments and the companies had to invest
unconventionally for different groups.
Tesco has been able to change a lot and one of the well-known technologies introduced is the
RFID enabled tags, which has been a very useful technology in the utopia. This technology is
responsible for the counting of inventory, classifying automated tasks and achieving the reliable
perception of the customers (Kezar 2018). This technology is used to scan the products and
automatically change the point of sale and the stock levels. It also helps the customer to know
about the details of the products and help in the complete calculation of the inventory, even
maintaining the process of reordering commodities. This saves a lot of time and the company
can focus on other aspects as well.
The introduction of artificial intelligence has helped the companies to influence innovation and
transformed the ideas of the customers, increasing efficiency of the activities at all times. A new
digital platform known as the IIFTTT has been used by the company Aldi, and is being started
by Tesco, to amalgamate different applications so that they can automate the experience of the
customers and implement internet of things-associated-technologies for prognosticating the
perception of online shopping and the potential of the consumers (Hayes 2018). Both of the
companies have allowed BYOD and have allowed the employees to be resilient inside the

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environment. Both of the companies have introduced mobile payments online and have
introduced loyalty schemes like NFC and Clubcard. Both companies have introduced customer
analytics technologies to increase the number of stores and surveillance for the safety of the
customers (Rosenbaum et al. 2018). Tesco has introduced scan-as-you-go technology, which
has introduced a brand-new digital in-store experience, and both the companies have
introduced self-checkout stations, which has decreased the stress among the employees and
has enhanced the experiences of the customers. Broccoli cameras have been introduced to
automatically replenish the food department and the new ERP systems have helped to maintain
the automatic stock level. The mobile applications have been introduced and the companies are
accepting online payments.
Company factors
Changes in demand for both the companies will change the requirements of the market and the
company will likewise have to invest in different kind of strategies so that the changes can be
adopted and the demands of the customers can be fulfilled. The customers of the modern day
world prefer to have a very comfortable shopping experience with a large number of facilities,
decreasing the work for every individual. This is why both the companies, especially Aldi have
introduced home delivery options and have as a provision to deliver the customers with the
fresh produce without having to leave their residence (Charter and Tischner 2017). Fresh
deliveries are made every day and the companies use specialised refrigerators to provide the
customers with the best quality products possible. Tesco has introduced a technology called
data spectrum, which has helped the company to understand the feedback of the customers,
analyse the demographics and investigate the demands of the customers, everything available
on a specialised smartphone (Northouse 2017). The companies have introduced the change in
their supply chain, however, the change of Tesco is quite noticeable and most of the stores
have been upgraded to suit the experiences of the customers. Tesco has introduced a system
in which there will be a product automatically replaced after any customer purchase a product
and will be automatically updated on the order list, which will be delivered next day.
Strategy
Innovation has been one of the major changes that have taken place in both the companies and
Tesco has been able to engage in different methodologies so that they can focus on having an

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increase competitive advantage over its competitors. Both the companies have started to
penetrate the market by using low pricing policies so that it can bring out the change and focus
on attracting more customers, building a good relationship with them (Waddock and Bodwell
2017). Aldi as mostly focused on customer retention and loyalty policies so that they can
enhance the customer base and has introduced feedback sessions among the stakeholders so
that the ideas can be used for a change. Both the companies have introduced technological
experimentation and development for increasing knowledge, speculation and trial settlements,
and Tesco has conducted several activities on corporate social responsibility, which is also
increasing awareness among the customers (Niforos 2017). Both companies have started
online shopping and provided customers with discounts. Aldi has started strategic alliances to
equate price and quality.

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Part B: The Impact of Change
Evaluate the ways in which internal and external drivers of change affect
leadership team and individual behaviour within an organisation
Different external and internal factors affect the operations of any companies in the market, and
for Tesco and Aldi, the companies faces a different type of enigma in different markets around
the world.
Internal drivers
Human resource
One of the influential authorities of a company is the human resource of the organisation and
this department is responsible for arranging the new employees, training and development and
understanding the problems of the people so that change can be made properly and according
to the specifications of the market. The different audiences of the company are the ones who
influence the decision of the operations and the Human Resource Department will have to
implement a diverse brand of representations and strategies to make the change (Kovač 2017).
The Human Resource Department will have to go on with the indispensable role of executing
the strategies and in introducing the change, for the betterment of the organisation.
Financial resources
Different kind of financial resources will help the company to speculate and estimate the market
of the organisation and also help to control critically the implementation of the change and the
way in which it can be used for the betterment of the company. The company will have to allow
the finance department to create budgets and findings so that different kind of changes can be
implemented in the organisation and different technologies and strategies can be used for faster
and efficient operations (Anderson and Sun 2017). The funding process will help to invest in
these strategies and change the way in which the new modification can transform the
organisation.
Mission and communication

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The companies like Tesco will have to have a clear sense of vision and mission, which will
highlight the primary goal of the company and the short-term and long-term objectives that will
have to be completed within stipulated budget and time. Therefore, the operations of the
company and the strategies implemented will be based on the vision and mission and hence,
the implementation of change will be for the ultimate purpose or for fulfilling the primary goal of
the company (Bakari et al. 2017). In this case, communication is vital so that the operations can
be conducted properly and feedback can flow from the other end, which can help in the
improvement of the results. Two-way communication will also help to create a strong
relationship among the employees and will increase productivity, seemingly making the
company successful.
SWOT
Strengths:
 Customers have a good shopping
experience
 Extremely good customer service
 Highly profitable Supermarket
 A huge amount of funding
 Very high revenue
 Good quality
 Brand equity (Beckford 2016)
 Increased use of technology
 A large number of stores
Weaknesses
 Large pressure from the competitors
 Prices wars
 The increased cost of inventory
 Concentrated operations in UK market
Subsidiaries are not working properly
 Lacking profits (Anderson and Sun
2017)
 Infringement controversies
Opportunities
 Chances of strategic alliances
 Changing taste and preferences of
the customers
 Joint ventures
 Increase in online shopping
 Good opportunities for the retail
companies (Rosenbaum et al.
Threats
 High inflation
 Labour rates are high
 Aggressive competition
 Oil and gas risks (Bakari et al. 2017)
 Seasonal variations
 Economic recession

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2018)
External drivers:
PEST
Political There is an increase in the number of job opportunities for skilled labours
and the taxes has been affecting the profitability of the organisation as it is
increasing day by day. There is complete stability of the country and the
political condition is allowing smooth operation. The financial stability of the
country is increasing the facilities for the business and is allowing business
operations to be completed properly (Kezar 2018). There has been changed
in the government regulations, which has helped to diversify workplace and
increase regulations for the company, positively affecting the profit.
However, on the contrary, there has been a change in the regulation of the
industry, which is affecting the productivity negatively and is stopping the
company to operate in international markets at large (Kovač 2017).
Economic There has been an increase in the employment levels due to the economic
recession in the country but it has also hampered adversely the operations
of the international business. The decrease in financial rates has helped the
company to become steady in its operations and has allowed the company
to invest in different kind of technologies and strategies. There is a lack of
financial stability in the country and this is affecting the demand of the
customers, especially for the high price products. The dependency on the
market of UK has increased (Northouse 2017). Internationalisation and
diversification have increased the revenue of the company. The disposable
income of the country has deteriorated and the advertising costs have
increased obliquely.
Social There has been a considerable change in the demographics of the country

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and the ageing population is affecting the demand of the company. There
has been a change in the preferences of the customers and people have
started to consume healthy products and relatively reduced demand for junk
foods to an extensive level (Hawkridge et al. 2018). People have been
consuming less, which has also reduced the demand for the food items. The
company has invested in different kind of strategies and there has been an
increase in the automation, making every service fast and reliable.
Technological The company has been able to invest in the online shopping process as
most of the customers are using the online shopping facility. The company
has used automation in its operations and checkouts, which has developed
the experiences of the customers and this process has decreased the
hassles for the company (Waddock and Bodwell 2017). Increase in the
energy efficient products has also helped the company to look after the
environment, and the introduction of technologies like the cloud systems and
the ERP has helped the company to introduce them in its operations making
the outcome fast and efficient.
Customer pressure and industry regulation
The main motive of the company is to make the customers happy and that is why the company
offers the customers with different kind of options. Sometimes, customer pressure can affect
the behaviour of the company in the market and the way of implementing change. Companies
like Tesco in the markets of the United Kingdom and the United States and encounter several
problems due to the new rules and regulations of the government and with the changing
demands of the customers, which is likely to affect the transformation and transmutation
implemented by the company (Jing and Avery 2016).
Competition
Competition is one of the major factors affecting the behaviour of the organisations in the
market, and Tesco has a large number of competitors, which is likely to decrease the profits and
increase aggressiveness in the market (Storey 2016). If the other companies have a good
competitive advantage, then the company Tesco may lose a lot of market share, which can

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result in the loss of the company, and not only that, this can lead to insolvency at some point of
time.
Technology
Introduction of different kind of technologies can help the company to embrace the operations in
such a way that it becomes efficient and the final product is much better. This will also help to
reduce the overall cost of the production and operation. Technology is very important in the
digitalized world as it helps the company to market its products and services and meet the
demands of the customers (Northouse 2017).
Evaluate measures that can be taken to minimise negative impacts of change on
organisational behaviour
Effective measures that can be taken by Aldi and Tesco for the minimization of the negative
impact on organisational behaviour and these are as follows.
The company will have to introduce a two-way communication process so that every employee
can focus on delegating the message properly as well as getting feedback in return which is
likely to help in the betterment of the operations. Communication should also flow based on
hierarchy, as this helps to you understand the changes to be made and the way in which the
operation has to be continued (Burnes et al. 2016).
The different kind of theories like the cognitive behavioural theory can be used for
understanding the psychology of the employees and the way in which the change can be
implemented. Proper communication will have to be introduced at all times so that it becomes
easy for the companies, Tesco and Aldi to administer and manage the operations as well as
develop a relation between the managers, leaders, customer and the employees of the
company.
The company will have to focus on reducing the fear among the employees and in implementing
the change within the organisation. The company will have to focus on defining the reason for
which the change has been implemented in the organisation and training and development
sessions have to be provided to the employees so that they can adapt to the new technologies
or the change and excel in the operations.

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It is important for the human resource department of the companies to look after the needs and
preferences of the employees as well as train and develop them periodically so that the
requirements of the market can be made and the changes can be adopted without a problem
(Maccoby 2015). When there is a situation of continuous change in the preferences of the
customers, the human resource department will have to train them properly and eradicate the
fear of implementing the change or technology for that reason.
It is important for companies to breakdown the goal into several objectives and allows the
management to create strategies based on those objectives. The objective will have to be
created in such a way that it should align with the primary goal of the company and the
managers will have to focus on creating a positive consequence using these strategies.