Organizational Change Management at Tesco: Case Study Analysis

This report provides a comprehensive analysis of organizational change management within Tesco, a leading British retailer. It begins with an overview of Tesco's history, company profile, and current market position, followed by a case study highlighting the challenges and changes faced by the company. The report employs various analytical tools, including PESTLE and SWOT analyses, to assess the external and internal factors influencing Tesco's operations. A Force Field Analysis is also conducted to evaluate the driving and restraining forces related to change. Based on these analyses, the report offers specific recommendations for Tesco to improve its change management strategies, address market competitiveness, adapt to technological advancements, and meet evolving customer demands. The report emphasizes the importance of management support, infrastructure adaptability, and employee engagement in successful organizational change. Finally, the report concludes by summarizing key findings and emphasizing the significance of proactive change management in ensuring Tesco's continued success in the competitive retail market.

Running head: MANAGING ORGANIZATIONAL CHANGE
MANAGING ORGANIZATIONAL CHANGE
Name of the Student:
Name of University:
Author Note

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Table of Contents
Introduction......................................................................................................................................3
Company Overview.........................................................................................................................3
Case..............................................................................................................................................4
Pestle............................................................................................................................................4
SWOT..........................................................................................................................................7
Force Field Analysis....................................................................................................................8
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
Organizational change management can be referred to as the framework which brings
effective management in a business process. The change can be based on many aspects such as
culture for the organizational structure within the company. A company can also change the
operational methods and strategies which are employed to suit the business. The effect of these
changes are intended to bring positive results (Hayes 2018). These create a significant impact on
the in which work is done and the responses of the staffs who are responsible to contribute to the
process of growth of the company through their performance. Organizational change can be
required to suit the changing scenario of the market or because of the limitations which exist
within the company itself. The changes which will be brought to a company are solely based on
its own company specifications such as size of the company, workforce and the kind of work it
socializes in (Kaplan and Norton 2006). The company will be able to become sustainable by
following effective strategies and evolve to be better than it is today (Doppelt 2017). The paper
will focus on the change which happen to be necessary in Tesco.
Company Overview
Tesco is one of the largest British retailer who also happens to have the largest grocery
outlets which are played over across Asia Europe and USA. The business was initiated by Jack
Cohen in 1919 who sold groceries in a small stall located in in the east of London (Tesco.com
2020). It is a general merchandise retailer now which is measured to have the ninth largest
revenue collection of retailers across the world. Tesco has grown over the years in the expansion
process has been intensification of the equations it made of new stores and catering to the needs
of the customers by adapting and understanding their demands. Tesco’s goal is to serve the

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customer. Customers, with their maid happy will return, which has been correctly understood by
Tesco and remained as one of its primary am to satisfy them. This process has been more
effective for Tesco than acquiring new ones. Despite global turndown, Tesco was able to yield to
record breaking sales and even enhanced profits made annually in 2010.
Case
Tesco has grown up to become of the giants in the retailing sector, especially in UK.
However, it is facing disadvantages and challenges internally as well as externally. There has
been rise in competition in the market which is a long term threat to the company. This suggests
that change should be brought which will allow effectiveness (Matos Marques Simoes. and
Esposito 2014). The company has been posed with challenges to maintain low cost after Brexit
Referendum, whereas, similar issues can be on the rise anytime later causing serious challenges
and setbacks for the company. This should be dealt with, by paying attention to the cause. There
have also been issues related to the zero hour contracts which the company has with its work
force. It should be assessed whether the company has healthy management. Organization
excellence can be achieved with the help of organizational change, which can be change of
structure workforce or operative methods (Goetsch and Davis 2014). The company has reliance
on historical infrastructure which has become a liability now. The twenty four hour services
which are provided by the company has been posing challenges in the low cost venues.
Pestle
Pestle Analysis will help in the process of analysis of the external challenges which exist
and Tesco operates in (Cadle, Paul and Turner 2014).
Political
Factors
 The company operates in many countries which makes it vulnerable
to different political situations and events.

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 Factors such as political stability and instability affects its operation.
 There can be regulations on goods which are imported from outside
countries.
 EU Referendum affected the company because several companies
went through hard times because of the turmoil.
Economic
Factors
 The cost of labor is a significant issue which can effect Tesco’s
market.
 The minimum wage rate in UK increased by a few percent in 2018
which Tesco had to bear and made the company bear millions of
pounds.
 The cost prices and profits are other factors which effect Tesco and
its financial stability in the market.
Social Factors  Trends of shoppers is an important factor, which should be paid
close attention to, by Tesco.
 The demands which are created for services and goods, is based on
the attitudes and beliefs which people have (Rastogi and Trivedi
2016). Understanding those is the key to success and stability for
companies.
 There has been increase in demand for healthy choices, for which,
Tesco might be immensely benefitted by introducing organic ranges
for the customers.
Technological
Factors
 Technological advancements have brought opportunities and
challenges for the company.

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 Technological advancements allow companies to provide customer
satisfaction through facilities and features which are accessible and
adaptable.
 The RFID technology has helped Tesco enhance customer
experiences even in stores which keeps account of the sales and
stock.
 Scan and Shop options has added enough convenience to the
shoppers which have been possible because of technology.
Environmental
Factors
 Environmental issues are rising because of the pressure coming from
government and other agencies who monitor the effects/
 Tesco encourages its buyers to shop from their website which makes
the buyers contribute to the cause by saving resources and
accumulation of products such as plastic bags.
 Tesco is dedicated to renewable processes which they are intending
to channelize 100% of its electricity by 2030. They also aim to bring
down carbon footprint by 50% by the end of 2020.
Legal Factors  Business regulations can be disadvantageous for the company and
the actualization of its objectives and performances.
 Legal actions which are taken for fraudulence should be close
attention to, in order to avoid such charges.
 Tesco should take note of the codes of practices which are laid out
by Food Retailing commission and conduct its business operations.

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SWOT
Strengths
1. Tesco has established itself as the biggest grocery retailer in United Kingdom and have
bigger sales and revenue collection if compared to other supermarket chains which are to
be found in Britain.
2. The score dominates the grocery market in UK why almost 27%. The company has been
able to add another feather to the hat by becoming the most popular supermarket in
Ireland.
3. Tesco is located across the globe with almost 6800 stores which makes it geographically
diversified.
Weaknesses
1. Even though Tesco has been able to establish itself as a leader in the UK market. The
strategy of low cost which has been followed has decreased profit margins for the
company (Bull et al. 2016).
2. Tesco has poor operational performance in some of the markets, specially few outlets and
stores.
3. They have been rise in the competitive pressures which exist in the market which is
brought down the profit margin of Tesco.
Opportunities

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1. The company has showed significant growth in the market with the introduction of the
new discount store Jacks. The strategy will help Tesco flourish even more in the market
and can competitive advantage over its low cost rivals such as Aldi (Gürel and Tat 2017).
2. Tesco will be able to upgrade its system by enhancing online shopping experiences and
grow in the market.
3. The company can develop alliances and partnerships with other recognized and reputed
brands in the market which will help them grow in the market and attract more buyers.
Threats
1. One of the alarming threats for Tesco is the growing competition in the market and
dominance of rival services Walmart and Aldi. If they continue to remain the dominating
forces in the market, Tesco's market position can be threatened.
2. The Brexit Referendum has been a great setback for Tesco as the cosmetics and trade
deals have been put at stake.
3. Economic crisis and regulations put by the government can affect the performance and
efficiency of the company in many regions because of the economic tensions which are
created.
Force Field Analysis
Force Field Analysis will help in the process of assessing of the factors which imply that the
change is required and should be brought and the factors which might pose challenges (Swanson
and Creed 2014).

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Forces FOR Change Score Change Proposal Score Forces AGAINST Change
Market
Competitiveness
4  The market
competitiveness
is increasing,
which suggest
that the Tesco
should aim at
gaining
competitive
advantage by
employing
strategies such
as Jacks and
online quick
services.
 There can be
unwillingness
among
employees
which should
be managed
with effective
communication
and integration
of ideas.
3 Employee Unwillingness
Technological
Advancements
5  Tesco’s
initiative
should be to
incorporate
innovative
features and
techniques
which will
provide quality
experiences of
the customers.
 Management
should be
supportive of
the changes,
without which,
it will be
difficult to
bring changes.
1 Lack of Management
Support

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Customer Demands 5  The demands of
the customers
should be
understood,
which will
allow them to
be ahead of the
companies who
pose big
competition in
the market.
 Budget
constraints can
pose
challenges,
which should
be paid
attention to,
while
incorporating
change.
2 Budget Constraints
Tesco’s Reducing
Market Share
4  Reducing
market share
denote that
there should be
a change which
should be
brought by
developing
effective
measures.
 Changing
regulations may
pose challenges
but should be
followed to
avoid risks.
2 Changing Regulations and
Laws.
TOTAL
18 8
TOTAL
Recommendation

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1. The company should ensure that there is management support to introduce the changes
which are required in the company.
2. The reliance on the historical infrastructure should be reduced and a more adaptable
infrastructure should be followed by the company.
3. The company should provide online services and one day delivery options which will be
convenient for the buyers rather than providing twenty four hours services in all the
stores.
4. The employee management should be enhanced by dividing shift hours according to the
operation hours in the outlets.
5. Tesco should aim at understanding trends in the market which will reinstate them as the
market giants despite the pressures which are asserted by rivals to maintain low cost.
6. Apart from low cost ventures, the company may introduce specialized ranges which are
customized to suit the needs of people who are willing to invest in goods and services.
Conclusion
It can be thus concluded by saying that Tesco has been one of the largest influences in the
retail markets. There have also been challenges and limitations which are faced by the company
externally as well as internally which can be managed by employing effective management
initiatives to introduce the changes which are required for the company to sustain the market.
There might be challenges in the form of unwillingness among employees and constraints in the
budget. However, these can be managed with effective communication, participation and
adaptable strategies.

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References
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Cadle, J., Paul, D. and Turner, P., 2014. Business analysis techniques. Chartered Institute for IT.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical review. Journal of International
Social Research, 10(51).
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Kaplan, R.S. and Norton, D.P., 2006. How to implement a new strategy without disrupting your
organization. Harvard business review, 84(3), p.100.
Matos Marques Simoes, P. and Esposito, M., 2014. Improving change management: How
communication nature influences resistance to change. Journal of Management
Development, 33(4), pp.324-341.

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Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and Technology
(IRJET), 3(1), pp.384-388.
Swanson, D.J. and Creed, A.S., 2014. Sharpening the focus of force field analysis. Journal of
change management, 14(1), pp.28-47.
Tesco.com (2020). Tesco - Supermarkets | Online Groceries, Clubcard & Recipes. [online]
Tesco.com. Available at: https://www.tesco.com/ [Accessed 16 Jan. 2020].