A Business Analysis Report: Organizational Change Strategies at Tesco

This report provides a comprehensive analysis of organizational change strategies at Tesco, a multinational retail giant. The report begins with an introduction to organizational change and its impact on business operations. It then delves into Tesco's organizational structure, culture, and various metaphors used within the company. The core of the report examines the types of changes implemented at Tesco, including strategic transformational, people-centric, structural, and remedial changes, along with the application of Kotter’s change model. The report further explores the strategies employed by Tesco to implement these changes, such as careful planning, effective communication, and employee training, while also highlighting the barriers faced during implementation, like limited understanding and employee resistance. Finally, the report discusses methods to overcome these barriers, emphasizing leadership, clear communication, and employee involvement.

Organizational change
strategy

Contents
INTRODUCTION...........................................................................................................................3
Determine the changes in an organization:..................................................................................4
Strategies for implementing change in the organization or to meet the challenge......................6
Barriers in implementing changes in the organization................................................................7
Personal skills needed to be effective in change.........................................................................8
Identify the various positions of power within the organisation and how these may be utilized
as a part of the change strategy....................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Organizational change is defined as the process that significantly impacts whole organizational
activities and performance as well. There are various changes are happening in the organisation
according to current requirements that are related to the organisational goals, operations, and
services(Arnold, M., 2017). An organisation must analyze all current marketing trends and
implement effective changes in organisational structure, policies, and objectives that enhance the
overall performance of an organisation. There are various strategies are executed by the
organisation to implement all changes in an effective manner so the organisation gets advantages
of them. In this report, the chosen organisation is Tesco which is a multinational organisation in
the United Kingdom. I have worked in the organisation as a business analysis to analyze all
organizations' changes and implement them in an effective manner. in this report, various
changes in the organisation that affect the business operation and functions in an effective
manner, organisational change strategies as well as various barriers are covered in this project
report.
Overview of organization:
In this report chosen organisation is Tesco which is a British multinational, grocery as well as
general retailing organisation. The respective organization is founded in 1919 by Jack Cohen.
The headquarter of the respective organization is situated in Hackney, London, England, United
Kingdom. Tesco is the third-largest retaining organization in the world according to gross
revenue. It provides its products and services in the five countries in Europe such as United
Kingdom, Ireland, Hungary, Czech Republic, and Slovakia. It is the part FTSE 100 Index
component. The respective organization has 7,005 shops in different locations.
Organizational structure: As Tesco is the largest groceries merchandise multinational
organization that deals in groceries products and services. It follows the hierarchical
organisational structure in which all positions, as well as obligations, are divides into various
hierarchical parts to ensure that all defined work is done in an effective and smooth manner. All
roles and responsibilities are defined inappropriate manner (Burgstaller, 2020). The one who is
in the top position of the hierarchy has maximum power and responsibilities. The structure of

Tesco is constructed in five levels. The board of directors consists of 10 members and four
executive directors.
Organizational metaphor: There is various metaphor such as operational performance,
cost, and other factors are included that help in attaining all goals and objectives in an effective
manner.
Organizational culture: As organizational culture is defined as the pattern of behaviour of
respective people who are working in an organization. Organizational culture help employees to
work in the most effective and efficient manner. There are various organizational cultures is
adopted by Tesco such as power culture, role culture, task culture, and person culture. Tesco
separates all work into employees by dividing them into various groups such as marketing, sales,
and customer services that help in attaining all organizational goals and objectives in an effective
manner. The respective organization maintains positive working culture and environment that
motivates employees to perform all tasks properly.
Determine the changes in an organization:
Changes are determined as the area of improvement that affects the overall performance of an
organization. It is necessary for the growth of an organization to implement all required changes
according to requirements (Cinite and Duxbury, 2018). Some organisation takes changes as a
challenge as it required lots of investment, training to employees and changes in organisational
structure that affect organisational profitability. On the other hand, some organization takes it as
the opportunities that improve overall organizational performance and productivity such as
improvement in technologies, hiring new employees and automation are some factors that help in
organizational growth and development. Tesco takes all changes as the opportunity for
development while some change impacts it. All these organizational changes are discussed
below:
Strategic transformational changes: Tesco modifies its working procedure, tools, and
policies that impact the overall organisation but these changes do not affect the whole
organization's activities. On the other hand, high-level changes have the power to transform the
whole organisation ineffective manner that depends upon the strategies that are used to
implement the changes. Tesco, first of all, identifies all goals and objectives of the organization
then the appropriate plan is designed to attain defined goals in an effective manner (Genus and

Iskandarova, 2020). proper management is necessary for implementing changes efficiently.
There are various examples of strategic transformational changes are discussed below:
 Tesco updates all missions and goals that affect the whole organisation so, effective
strategies are implemented to execute these changes in an effective manner.
 New technologies are introduced in the organization that affects overall working
procedure so, proper training regarding technologies is given to employees to use it in the
proper manner.
 Proper training and development programs are provided to employees in order to retain
them with the organization for a long period of time.
People-centric organisational change: All changes that are happened in the organisation
affect people or organisational employees in an effective manner, so it is very important for
Tesco to adopt the people-centric organisational change to hire new and skilled employees. As
organizational employees opposed such changes because if new employees or fresh blood enter
an organization then it decreases the value of old staff (Howieson, Burnes and Summers, 2019).
But all these emotional factors are handled by proper management. Some examples are discussed
below:
 Tesco hires new employees, onboarding as well as train them affects the new and existing
employees. So, the management department communicates with them to resolve all
issues in an effective manner.
 Tesco change all role and responsibilities of employees according to requirement so,
proper training is provided to employees so they can perform all task inefficient manner.
 Tesco changes all organisational policies in order to attain all organisational goals and
objectives in an effective manner. So, all these changes are properly communicated to
employees in order to enhance their knowledge about organisational policies in an
effective manner.
Structural changes: There are various structural changes that happen in an organisation that
is related to tram organisation, management hierarchy, and responsibilities are attributed to
department, employees, and teams (Kitchin, 2017). Tesco changes the organisational structure
appropriately in order to gain all organisational goals and objectives inefficient manner. There
are some examples are discussed below:

 Merger and acquisition is the most common cause of structural changes. So, after the
merger and acquisition appropriate organizational structure is maintained that helps the
business to run in an inefficient manner.
 When a new department is being created in the organisation then it is required to change
organisational structure accordingly.
Remedial changes: Remedial changes are defined as reactionary actions. All these
changes are implemented when problems are properly identified and effective solutions need to
be implemented at the proper time. Tesco implements these changes to address the issues
effectively and execute immediate actions as well (Lampaki and Papadakis, 2018). As these
changes are quick and simple so, organizations prefer them to attain all goals and objectives
inefficient manner. Some examples are discussed below:
It helps businesses to deal with losing organisational talent in an effective manner by providing
them proper training and development programs.
Tesco organisation provides proper training programs to the newly hired employees so they
perform all operations and functions in an effective manner.
Kotter’s change model:
 In the first step, organisation create urgency through developing new ideas for attaining
success for business.
 Then effective and powerful coalition is developed
 In next step, effective vision is created for inspiring changes in organisation.
 In this step all information about vision and changes are communicates in business.
 In next step, all obstacles and barriers are removed
 There are various short-term goals and objectives are formulated
 In this step, organisation shout sustain for changes for long period of time
 The changes become the part of business to have lasting effects.
Strategies for implementing change in the organization or to meet the challenge
As in organisation various changes are happened in a respective organisation to attain all
competitive advantages as well as for surviving in the competitive environment. These changes
bring various challenges for the organization such as employees mot support changes, it requires
lots of investment and technological factors. So, proper strategies are used by Tesco to

implement all respective changes in order to meet all challenges in an effective manner. All these
strategies are discussed below:
Plan carefully: Tesco creates effective planning before proposed any changes within an
organization. Plans are clear with having all information that ensures proper implementation of
changes in order to attain all defined goals and objectives effectively. All factors are clear that
why the organization implementing changes and what are the advantages of it (Land, 2018).
Create effective road-map and communicate: A appropriate roadmap is prepared by the
Tesco that guide employees and other organisational member to implement all changes as well as
meet all challenges in an effective manner. All strategies and plans are communicated to the
employees that motivated them to perform all tasks in an efficient manner as well as include
them in the decision-making process because they are included in actual work and provide the
most effective suggestions. Team meetings and conferences have been arranged that help to
communicates all strategies of change in order to achieve organisational goals in an effective
manner.
Provide training and monitor performance: Tesco provide effective training programs
to employees for technologies and process so, employee perform all function and activities in an
effective manner. All training programs must be related to the organizational changes as well as
programs enhance the skills and experience so, they perform the task efficiently. When changes
are implemented by the employees all actions are monitored and measured that ensures the
proper execution of challenges effectively (Leu and Lee, 2017).
All these strategies help businesses to accomplish all organisational changes in an effective
manner as well as these planning help them to meet all challenges that help Tesco to maintain
effective positioning than others and facilitate to gain various competitive advantages.
Barriers in implementing changes in the organization
There are various challenges and barriers are faced by Tesco to implement changes in
organisational structure. The respective organisation identifies all potential barriers that help
businesses to formulate various approaches in order to overcome all difficulties and hurdles in
the process of business transformation. There are some barriers that are faced by the organization
are discussed below:
 Limited understanding of organisational changes and challenges, as well as their impacts,
are the biggest barriers that are faced by Tesco.

 Ineffective communication to employees and resistance of employees regarding changes
in the effective barrier that affect the proper implementation of changes within Tesco
(Neumann, Robson and Sloan, 2018).
 Lake of commitment and management support to changes in the barrier that affects the
Tesco to implement changes in an effective manner.
 Improper and inadequate resources, as well as the budget of the organisation, creates the
barrier that affects the implementation of changes.
 Individual is the effective barrier that affect the change process. As in the starting
employees resist changes because they are not familiar with that process and activities
that impacts on overall business performance. implement changes also affect employees
performance and productivity.
Overcoming barrier to organizational changes:
There are various methods and policies that help Tesco to overcome the barrier of
organisational changes in an effective manner that are discussed below:
 Tesco leads all staff in an effective manner and communicates all changes as well as
policies that are applicable to overcome barriers.
 Help employees to understand all changes and their impact of changes on the
organization that facilitates to overcome barriers.
 Tesco involves all organisational staff in changing process in order to boost the morale of
employees to overcome challenges in an effective manner.
Skills needed to be effective in change
As an employee of Tesco, there are various skills and competencies are required to implement
change in respective organisation in an effective manner (Stenvall and Virtanen, 2017). As a
change agent of organisation, I evaluate all changes, communicate them to other organisational
employees and develop strategies to implement changes in organisation to attain defined goals
and objectives effectively. Effective communication is required to change in strategy. Some
skills are discussed below:
 Effective communication skills are very important to implement change in the
organization. It facilitates maintaining effective relationships with other employees.
Proper communication plan is prepared that help to implement all changes all
organizational level of Tesco.

 Strong and effective research skills help to analyse all information and evaluate it in order
to perform all activities and function in an effective manner.
 Strategic and critical thinking that facilitates employees to evaluate all factors in order to
communicate all strategy in order to implement it to attain all organisational goals and
objectives in an effective manner.
 There are various soft skills are required to implement all organisational changes in an
effective manner that includes the ability to influence others, educational as well as
training skills, problem-solving and team spirit are some skills that help in executing all
changes within an organisation in an effective manner.
Internal changes: When organizations implement changes in their strategies and structure then
various changes are occurring in the business internal environment that must be communicated
to a human resource so, they react positively towards changes and execute them the appropriate
manner in order to take competitive advantages than other competitors. There is requirement of
various changes in organisation that facilitates to attain all desirable outcomes. Changes in
business process and operations are necessary to implement changes effectively.
Identify the various positions of power within the organisation and how these may be
utilized as a part of the change strategy
In Tesco, a defined hierarchical structure is maintained in which various positions are determined
and their power, as well as responsibilities, are delegated in order to implement all organisational
change strategies in an effective manner (Tõnnisson, 2017). There are various powers are
provided at every position that are discussed below:
 Legitimate power: This is the power that is related to take certain actions in an effective
manner. For example, managers have power over their employees in specific areas. It is
described as the formal authority so it is created, granted as well as withdrawal by the
formal organization. In this stage, all policies and plans are formulated for change
strategies.
 Informative power: There is various information that is operated to implement change
Tesco in an effective manner. The organizational department communicates all
information to all other departments and employees in an effective manner. These help to
implement all change strategies efficiently and effectively in the respective organisation.

 Reward power: Organisational executives and authorities have the power to provide
rewards and recognition in order to motivate them to implement all changes in an
effective manner. there are various promotions, pay raises and benefits are provides that
lead towards attaining high work performance.
All above the various position of power in organisation such as legitimate, reward as well as
informative power that plays important role in change strategy. All powers collectively analyse
the situation and communicate all estimates changes and communicate them to business
employees and provides various awards to adopt changes and implement effectively to gain
objectives.
The human resources of an organization play a very important role in the success and
development of a business. The respective organization provides various training and motivation
so, they can easily adapt to changes and perform in a well-defined manner in order to attain all
defined goals and objectives. Support of employees is important for the business to gain
sustainable competitive advantages.
CONCLUSION
As per the above report, it can be concluded that organisational changes are required to fulfill all
needs and demands of the organisation in order to attain all goals and objectives in an effective
manner. There are various strategies are followed by the organisation to implement all changes
in an effective manner. Organizational changes are very important for the success of an
organisation in order to gain sustainable competitive advantages in an effective manner than
other competitors such as new employees are hired, new technologies are adopted that enhance
organisational performance and productivity

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