Strategic Change Management: Tesco Case Study on Leadership Approaches

This report provides an analysis of change management within organizations, using Tesco as a case study. It examines how change impacts an organization's strategy and operations, evaluates the influences of change drivers on organizational behavior, determines how barriers to change influence leadership decision-making, and applies a range of leadership approaches to a change initiative. The report includes a SWOT and PESTLE analysis of Tesco, highlighting the internal and external factors affecting the company. Furthermore, it discusses measures, such as the PDCA cycle, to minimize negative impacts of change on the organization. The document is available on Desklib, a platform offering a range of study tools and resources for students.

Understanding and
leading change

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO1 Compare ways in which change impacts on an organisation’s strategy and operations 3
LO2. Evaluate the influences that drivers of change have on organisational behaviour.......5
LO3 Determine how barriers to change influence leadership decision-making....................9
LO4 Apply a range of leadership approaches to a change initiative....................................11
CONCLUSION .............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
Changes are considered to the procedure which brings positive and negative
challenges for running an organisation. It is describes as that challenge which could
create impact on the present as well as on the future. For this, they need to implement
some change for their long term benefits. These changes could lead to a big challenge
for the organisation and this would lead to drawbacks on their revenue. Changes are
challenging , yet they are crucial as it assists organisation in reaching to their goals and
objectives. Tesco is taken as base company. Tesco is a British multinational groceries
and retail organisation which was established by Jack Cohen in 1919 in UK. This
organisation is specialised in selling products from diverse area of industries such as
clothing, software, financial services and many more. In this report, it covers the ways in
which changes impact the organisation's strategy and operation as well as the
influences that drivers of change have on the organisational behaviour. Along with this,
barriers to change which influence leadership decision making and range of leadership
approaches to change initiative are mentioned.
LO1 Compare ways in which change impacts on an organisation’s strategy
and operations
Change is a continuous process for an organisation to grow. As there are many
companies which are operating in the same area and earn a huge income. In order to
be a successful organisation, the companies are required to plan strategies which could
be implement a significant and a positive change in the organisation. When an
organisation will change their policies and procedures, they would be able to elevate
their productivity as well as profitability (Li and et. al., 2020.). There is always a need of
change in every organisation. It outlines the several factors that has its contribution in
the need for change in Tesco and Sainsbury. There are many changes that organisation
could make policies, strategies, rules and legislations.
Organisation Changes-
PEST/SWOT
Drivers of
change
Impact on
strategy
Impact of
operations
Tesco One of the major
change for the
organisation is
that, they have its
own e-commerce
platform which
helps the
organisation in
surviving the
COVID 19
pandemic (Leavy.,
2019.). Through e-
commerce, they
were able to
perform well in
The changes
takes due to
external
factor that is
COVID 19
pandemic.
Due to this,
people were
not allow to
visit their
store.
Regarding
this, they hire
more number
of people for
As the
organisation
was highly
reliable on
their e-
commerce
site in the
lock down,
they need to
make sure
that all the
products are
available
(Modiba and
Stewart.,
Due to their e-
commerce
channel, the
organisation has
hire more
number of
people in which
the existing
employees has
to make sure
that the new
hired individual
would be able to
understand their
working and

terms of
profitability the
outbreak when
other industries
where shutting
down. Along with
this, it also
increases the
employment rate
as the
organisation has
hired many
individuals in the
lock down as they
are planning to
hire 16000
individuals more
(Schäfer and et.
al., 2021.).
their smooth
operations
and
functioning of
the
organisation.
2018). The
organisation
was able to
cater all the
people and
serve their
services
which in
result
benefits the
organisation
in terms of
their
revenue. For
serving to
the
customers in
lock down,
the
organisation
hired many
people
(Semann.,
2018.). Also,
they are
planning to
hire more
number of
individuals
for the
organisation
as this could
benefit the
organisation
in the long
run.
culture of the
organisation.
Also, the IT
department has
to make sure
that they must
optimise their
website so that
the site could
not crash
because of
heavy traffic. All
workers were
serving the
customers into
their home in the
lock down time
period.
Sainsbury Sainsbury uses
social media
heavily such as
Facebook,
YouTube,
Instagram and
many more. They
are their major
strength for
promoting their
The change
is that, they
could able to
promote itself
in an
effective
manner (Wee
and et. al.,
2020.).
This create
brand
reputation in
the market.
It helps in
gaining of
more
number of
customers
as well as
Due to this
promotion, the
organisation is
able to cater
more number of
people by their
products. As
compared to
Tesco, they
were not able to

product and
services to a large
number of
prospects and
consumers.
prospects. generate profit
in COVID 19
pandemic as
Tesco does
(Zastrow and et.
al., 2019.).
LO2. Evaluate the influences that drivers of change have on organisational behaviour
SWOT analysis
SWOT analysis is a tool which is used to analyse organisation's competitive position as
well as developing strategic planning.
Strength: One of the major strength of Tesco is that, they were able to perform
well in the COVID-19 pandemic with the help of their e-commerce platform. Also, the
government has imposed lock down where people were not for a physical gathering in
the pandemic. Tesco was able to take quick action and increase their online delivery
services. The organisation also serves a wide range of products to various nations
which includes financial services, clothing, home ware items and many more.
Weaknesses: Tesco offers a wide range of food products to their customers.
The organisation claims that they follow the standard food safety protocol but it come
out to be false. For illustration, the products of Tesco was unsafe that could risks the
lives of the customers. In t his regard, the organisation has to recall all the defective
products (Colebrook and et. al., 2020.). Along with this, it was also found that some of
the product were passed the expiration date and the employees did not replace them.
This results in paying a heavy amount of 175000 pounds. Moreover, they have also
encountered with an issue of product shortage in the COVID 19 pandemic and in this
regard, they were giving false hopes to the consumers.
Opportunities: Tesco has an opportunity to utilise machine learning and artificial
intelligence as this would assists the organisation in planning. Many people have
switched to plant based food which has increased by 4.1 billion pounds. Along with this,
the rate of unemployment is increasing between the demographics of age 16 to 24
which represents a good opportunity for Tesco to hire them. Owing to the COVID 19
pandemic, there was much more income generated by providing home delivery services
as they have their e-commerce platform. For this, the organisation has elevated their
workforce and also they are planning to hire 16000 people.
Threats: Tesco is an alone competitor in the markets of UK and after Walmart is
sold to Mohsin and Zubair Issa, ASDA is planning to return into the market which could
be major threat to the selected organisation (Robinson, Randall and Barrett., 2018.).
Due to COVID 19 pandemic, though the organisation is able to survive because of its e-
commerce channel, they had 533 million pounds as precautionary expense which has
lead a major shift in the business.
PEST analysis
PESTLE analysis is considered as a tool which is utilised by the organisation for
identifying the macro environmental factors which could create impact on the

performance of the organisation. In context to Tesco, PESTLE analysis is mentioned
below:
Political factors: Tesco is a multinational organisation which has its presence in
various countries. As government and political regulations vary from nations, they have
to make sure that they follow all the legislation in different nations. Also, the Brexit deal
has developed an environment of uncertainty that have increases their tariff free trade.
Economic factors: The COVID 19 pandemic has created a major impact on
various industries. As people were not allowed to step of their houses as government
imposed lock down which it was implemented across the globe. This lead to shutting
down many industries. Tesco was able to survive as they were able to fulfil the
demands of customers by their e-commerce platform (Hayes., 2018.).
Social factors: Tesco follows all the local social and cultural trends of distinct
communities and then caters them accordingly. The selected organisation make sure
that they offer Halal meat to Muslim customers in UK. The company has has its own
production of halal meat which leads in Thailand and Malaysia. Along with this, they are
also serving plant based vegetarian food as many people are switching towards plat
based food and veganism. This trend is going between individuals in the Western as
well as European markets.
Technological factors: Tesco has its own e-commerce site which was utilised
by many individuals for ordering of various goods. The organisation was able survive
the pandemic and also lead organisation to avoid infection which is COVO 19. Also,
Tesco has partnership with Amazon Go for developing cashier-less billing technology.
This would allows consumers to pay using their wallet or cards.
Change Internal/
external
Impact on
leadership
behaviour
Impact on
team/
department
al behaviour
Impact on
individual
behaviour
Measures
to minimise
negative
impacts
Technological
change
Internal The
increase in
online sales
leads
leaders to
provide
training
remotely.
Due to this,
many
individuals
were not
able to
cope up as
well as
leaders
were not
As there
was rapid
increase in
online sales,
the HR
department
has to hire
more
employees
in order to
operate in
the
organisation
and fulfil the
demand of
the
customers
Due to
sudden
increase in
sales, the
individual
has to work
in more
active
manner
which led to
the
decrease in
their
performanc
e level.
In order to
minimise
the
negative
impact, the
leaders
could take
more
meetings in
order to
interact with
people.
Along with
this, the
organisatio
n could
distribute

able to
track and
monitor the
performanc
e of the
employees.
(Luand et.
al., 2020,
December.).
This drastic
change
creates
impact on
the over all
productivity
and
profitability
of the
organisation
but in a
positive
manner.
The
negative is
that, as the
lock down
was
imposed,
many
industries
were
shutdown
and due to
this, the
products
gets out of
stock and
the
organisation
has to give
false hope
to the
customers.
the work
among
each other
so that they
could
corporate
well.
Social change External The leaders
would
having the
responsibilit
y to train
the
employees
regarding
halal meat
By bringing
this change,
the
manufacturi
ng
department
has to make
that they are
able
The
individuals
has to
make sure
that they
have the
knowledge
about the
cultural
In order to
minimise
the impact,
the
organisatio
n could
provide a
proper
training on

and
methods to
prepare
vegetarian
meals. One
of the major
impact is
that, the
leader
would be
having
pressure to
resolve the
conflicts as
halal is the
cultural
belief of
Muslim and
other
culture
people
could
create a
conflict
regarding
this.
produce
halal meat
so that they
cannot get
any false
allegation.
belief of
Muslim and
the
veganism.
various
cultures
and their
dishes
which the
organisatio
n is
manufacturi
ng so that
they could
have the
knowledge.
Explain measures that can be used (discuss theories) to minimise negative impacts on
the organisation.
PDCA cycle
The plan, do, check and act cycle is an iterative technique for a constant
improvement of the procedures, commodities or services and it is considered to be a
major component of lean management.
Plan: At this stage, the organisation would plan what is needed to be done. One
of the major change was the increased sales on e-commerce platform in which many
individuals were hired and in order to work, they needed to be trained. For this, the
organisation will provide training to them and also make sure that they could interact to
each and every individual. Also, the organisation could provide training on various
cultural beliefs and their dishes so that individuals would not create conflict on the topic
of culture difference.
Do: This stage would be implementing the plan but on small scale and most
preferably in controlled environment so that they would be able to evaluate the
outcome.
Check: In this stage, the organisation would review the results from the do stage.
This stage is vital as this allows them to analyse the solution which is implemented to a

small scale group or entity as well as revising the plan if necessary (Lea, Hall and
Lawrence., 2020.).
Act: At the final stage, the organisation would be implementing the plan. This
plan would help in interaction as well as keeping record about employee performance,
reducing the conflicts, giving knowledge about the culture belief and on veganism.
LO3 Determine how barriers to change influence leadership decision-making
Force field model
Force field analysis is a framework which helps the company in analysing the
driving and the restraining forces that can impact the decisions of the company. It is
important for the company to make sue that the decisions they have taken regarding the
change in the workings or the management of the company is accepted by all the
factors that are going to be affected by the decision. It is not possible that all the people
in the management agrees to the decision and their are some factors that still resist
change in the organisation (Wallensteen., 2018.). If the company wants to bring
effective changes in the organisation it is important for the company to address the
restricting forces only in that way the company will be able to implement the change
effectively and efficiently. Before implementing the change in any organisation it is
important for the company to implement force field framework so the the company have
an idea about the restraining force and the company can find solutions for these
restraining forces.
Changes being introduced by the companies
Changes ate an important factor that are needed to be considered by the
company from time to time as it will help the company in coping with the dynamic
environment of the industry. In case of Tesco, the company is in the retail business and
it is important for the company to make sure that they are making effective changes
time to time so that they can improve their performance and can also have competitors
advantage in the market.
The first change that Tesco is thinking about implementing is technological
change. The company is thinking about bring artificial intelligence technology in the
workings of the company. It will help the company in reducing the working time and will
also make sure that the company is working effectively and efficiently (Turner., 2019.).
The company will be able to do worker faster and with low probability of mistakes.
The second change that the company tanvi.sis trying to bring in the business is
of contact less services for the customers of the company. The company strongly feels
the need of these types of machines which can provide contactless services to the
customers. In recent times the company is in need of this service not just because of
the safety concerns of customers but also because of safety of staff members of the
company.
Discuss driving as well as resisting forces of change and give number from 1 to 5
The company is thinking about bringing artificial intelligence in the workings of the
company and the company is also upgrading the technological systems of the company
in order to increase the efficiency and effectiveness of the company. The driving forces
as well as the restraining forces that can have a severe impact on the change decision
of the company are given below:
Driving forces:

 Improve in response time: the company will be able to resolve the issues of the
customers more efficiently and the response time will also be reduced
(Mahoney., 2019.). It is important for the company to make sure that the issuers
of the customers are getting resolved in real time so that the customer can feel
satisfied and the trust of customers will also increase on the company. The rating
for this factor will be 3
 Improved access: The access of the customers towards the products and
services of the company will be increased. The customers will be able to reach
the offering of the company faster which will definitely increase the sales and the
profitability of the company. The improved access will also enhance the
experience of the customers which is extremely beneficial for the company. The
rating for this factor will be 2
 Low cost: The company will be able to save huge amount of cost and will also
be able to achieve the optimum efficiency and effective management of the
company (Frongillo and et. al., 2021.). Up gradation in the technology will make
sure that the company is on the right path and is able to manage properly. The
rating for this factor will be 3
Restraining forces:
 Employees fear of change: Human resource is one of the most important
resource of the company and it is important for the company to make sure that
employees of the company are not against the decisions of the company. The
issues that are faced by the employees must be resolved as soon as possible
because the work of the company may suffer and the productivity of the
employee may get reduced. The rating for this factor will be 5
 Disruption in businesses: The change that the company is trying to bring in the
organisation may disrupt the businesses of the company as the employees may
take time to get used to the technology that the company wants to bring in the
organisation (Knights., 2018.). The rating for this factor will be 3
 Mismanagement for few days: The new technology is coming in the company
and it is obvious that the management of the company will get disturbed. Their
are a a lot of new things that the employees and the management will get to
know. The rating for this factor will be 4
 The total rating of driving forces is 8 whereas the total forces of restraining forces
are 12.
Ways in which company can reduce resisting forces impact
The most important way in which the company can reduce the restraining forces
is communication. Communication is the key to success and it is important for the
company to make sure that the company is listening to the problems of the employees
carefully and providing them the information so that the employees will be able to
understand the view point of the company (Frederico and et. al., 2018.). The company
must make sure that before implementing the change in the organisation the company
must make sure that all the queries of the employees are resolved and the issues are
no longer affecting the change.
How objectives can be achieved if barriers are reduced and change is
implemented.

The objective of the company is to achieve efficiency and effectiveness in the
management of the company which can increase the profitability of the company. The
barriers if reduced and if the technological change is implemented then the company
will be able to increase the productivity and will also be able to enhance the workings of
the company. It will help the company in getting competitor advantage in the market. In
case of Tesco, the company will be able to serve more customers which will enhance
the profitability of the company. Also the company will be able to increase the efficiency
of the company as well as the employees which will help in achieving accuracy in the
workings of the company.
LO4 Apply a range of leadership approaches to a change initiative
Intended change in organisational
The intended change in the organisation is the technological change which can
provide benefits to the company. It is important for the company to bring technological
changes in the management of the company (Herrington and et. al., 2020.). The
dynamic environment of the industry creates a need for change and it is important for
the company to bring change as this factor will help the company in having competitors
advantage in the market.
Reasons for change
 Higher profit margins: In order to increase the profit margins, the company may
try to bring changes in the workings of the company. It is important for the
company to make sure that they are earning sufficient profits and it will only be
possible if the company bring new changes. In case of Tesco, these changes will
enhance the workings of the company which will be beneficial for the company.
 Decrease employee turnover: The changes in the organisation is for the benefit
of the overall stakeholders of the company and when the company will be able to
provide high benefits then the employees will be more likely to be satisfied with
the workings of the company (Mifflin and et. al., 2021.). In case of Tesco, It will
not only be beneficial for the workings of the company but will also enhance the
credibility and brand image of the company.
 Competitors advantage: By implementing changes in the management the
company will be able to increase the efficiency and effectiveness of the
company. In case of Tesco, the company will be able to reduce the cost of the
workings in that way the company will be able to have competitors advantage in
the market which is the utmost benefit that a company can have in the market.
Change lewin's model
The Lewin's change model represents three simple step which can help the company in
implementing change in the management effectively and efficiently. It helps the
company in understanding the change process and also help them in implementing
change. The three steps that are involved in the Lewin's change model are given
below:
 Unfreezing: It refers to the stage where the company must try to spread
awareness about the upcoming changes. The company must give reasons and
listen to the issues in the management that can be a potential barrier for change.
It is important for the company to make sure that all the issues are resolved
before that starting stage of change implementation.

 Change: This stage refers to the stage where the company must start
implementing change in the management of the company (Cadmus and et. al.,
2018.). It is a process in which initially the company starts to bring slight
changes in the management of the company.
 Refreezing: It is the last step in the change process where the company starts to
refreeze the area where changes has bring benefits to the company and are
aligning perfectly with the management of the company. Another thing that the
company must focus is to bring changes in the strategies which are not aligning
or are not fitting in the management of the company.
How change will be implemented
Type of Change
Current impact on the
company
Desired impact
Technological changes in
the management of the
company.
Currently the employees are
resisting to change as they
have a fear of job loss or they
might have to learn new skills
in order to cope with the
technology effectively. The up
gradation of technology is also
taking time which is reducing
the working time of the
employees which is a loss for
the company.
It the up gradation of the
technology is successfully
implemented in the
management of the
company then company will
surely get competitors
advantage in the market
(Grice., 2019.). It will also
help the company in
reducing the cost and will
make sure that the
accuracy of work is also
increased
CONCLUSION
From the above discussion, it can be concluded that changes are essential for
organisation in order to stay in the industry. These changes could be challenging for the
organisation but these are also beneficial for them. The changes in the organisation
could lead in elevating the profitability in the competitive market and it could also affect
the capabilities, cultural values, people and many more. When change are
implemented, the enterprise could encounter with several challenges to gain
competitive edge. In this report, it includes SWOT analysis and PEST analysis for
identifying the change. It also includes PDCA cycle for minimising the negative impact
on the firm. Along with this, barriers to change and different leadership approaches are
mentioned.