Leadership and Change Management in TESCO and Sainsbury's: A Report

This report provides a detailed analysis of leadership and change management within two major UK retail organizations: TESCO and Sainsbury's. The report begins with an introduction to both companies, highlighting their market positions and operational structures. It then delves into a PEST (Political, Economic, Social, and Technological) analysis for each company, examining the external factors influencing their operations and strategies. The report further evaluates the drivers of change affecting both organizations, critically assessing the implications of these changes. Part 2 of the report focuses on force field analysis to understand how these factors impact decision-making within the companies. Finally, the report explores leadership concepts and techniques used at TESCO to overcome decision-making barriers, concluding with a summary of the key findings and recommendations. The report covers topics like organizational structure, market share, financial performance, and the impact of various external factors, such as Brexit, consumer trends, and technological advancements. The analysis provides valuable insights into how these companies navigate challenges and adapt to the dynamic retail landscape.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Company one: TESCO...........................................................................................................3
Company Two: Sainsbury's....................................................................................................5
Drivers of change affecting organisation...............................................................................6
Critical evaluation of implications of drivers of change in each organisation.......................7
PART 2............................................................................................................................................7
Force field analysis and how they affect the decision-making...............................................8
Leadership concepts along with techniques which is used at TESCO to overcome decision
making barriers.......................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The leadership present in an organisation play an important role in growth and
development of the organisation as they encourage employees to expand their skills, enhance
their performance and work diligently for the organisation. These efforts undertaken by the
leader directly affect overall output and quality of products offered by the organisation. In this
report TESCO and Sainsbury's have been selected which are leading members of the British
retail industry. TESCO was established by Jack Cohen in 1919 and has their base of operations
in Welwyn Garden city, UK. The organisation has expanded globally with annual revenue of £53
billion in 2019/2020 business year. The organisation has implemented policies to offer diverse
range of products and has financially benefited during the pandemic. Sainsbury's is second
largest retailer in Britain which was founded by John Jamesin 1869 (Cantarelli 2016). The
organisation follows competitive pricing strategy and provides personalised shopping
experience in order to attract consumers from their rivals. This report includes PEST analysis of
these organisation in order to identify outside forces which affect operations of these
corporations along with leadership barriers faced by leaders in the organisation. In addition this
report covers change in organisational structure of TESCO hierarchical structure to more flexible
organisational system.
PART 1
Company one: TESCO
TESCO is a retail organisation operating in 13 international market with headquarters in
UK and employees more than 420,000 workers globally. The organisation is largest grocery
retail brand in UK with market share of 25%. The company has hierarchical organisational
structure which gives maximum responsibility to employees at top of the hierarchy.
PEST analysis:
Political factors: The main political factor which impacts the organisation directly is the
impending Brexit deal in the UK parliament. This deal changes several aspects associated with
British corporations which affects retail chains across Europe (Kim and et. al., 2017).
Positive impact: The Brexit deal aims to prioritise UK based businesses over international
organisations expanding in Britain. The implementation of this law provides the respective

company benefits from the government and allows the organisation to gain competitive
advantage by favouring British market for their business.
Negative impact: This deal directly affects trade laws between Britain and EU which
impacts retail outlets of the organisation present in rest of the Europe. This policy will negatively
affect the organisations distribution channels across Europe as taxation laws will change.
Economical factors: As the respective company operates in various international markets
the daily operations of the company are affected by different trade barriers, corporate taxation
policies, growth rate, rate of inflation and others.
Positive impact: The international expansion provides the organisation various sources
for revenue generation in new consumers (Morkunas and et. al., 2019). TESCO needs to
implement organisational structure which motivates employees to work collaboratively, as in
foreign countries talented candidate prefer organisations with coordinated relationship between
employees at various positions.
Negative impact: The organisation has to invest high amounts of capital in order to
operate various stores across the globe with high risk attached to presence in global markets. The
hierarchical organisational structure adopted by the organisation decreases employee
engagement across their stores and reflects on their global performance as conflicts arise in such
organisational structure.
Social factors: TESCO is dependent on social elements such as preferences, consumer
lifestyle, and purchasing interest for securing profit. Recent trend in increase of single lifestyle
has a great impact on the company (Mostafa 2016Park 2016).
Positive impact: The trend of individual living has increased consumers for the company
as each individual purchases groceries for themselves and as a result purchases more produces
for individual use.
Negative impact: The single lifestyle of consumers has reduced the trend of buying
products in bulk and has negative impact on sales in retail stores. Single living consumers revisit
the stores after longer period of time compared to family consumers which affects the overall
sales of various products offered by TESCO.

Technological factors: The daily activities of TESCO are impacted by change in
technology as consumers prefer technologically advanced establishment. Consumers prefer
online orders over visit to the market and technological dependence on online business channels
has increased (Rolnick and et. al., 2019).
Positive impact: Technological advancements adopted by TESCO in the field of
navigation technology for faster delivery of products gives the organisation advantage over their
rivals as consumers prefer organisations which provide quick delivery service.
Negative impact: The organisation does not have easily accessible online presence which
affects online sale of their products. As the organisations structure puts highest responsibility on
employees at higher position, effective management of online orders by coordination between all
employees is not possible.
Recommendation
As per above discussion, there are some of the suggestions which can be opted by the
company for the improvements which can leads to higher productivity and the profitability.
Here, the manager of the company needs to evaluate the external factors which can be
done on continuous or regular basis in order to improve strategies along with policies and there is
need to improve the communication with their employees or getting their support along with
increase the job performance. This can help the company to get benefit in the long term by using
such recommendations (Setó-Pamies and et. al., 2016).
There is also an analysis which shows that whenever there is change in the organisation
there is oppose comes through subordinates where it need to develop some of proper trainng for
such change which can help in to be familiar and can help in to create the positive environment
at their work place.
Company Two: Sainsbury's
Sainsbury's is a UK based retail organisation with market share of 16% and more than
1400 stores in UK. The organisation also provides personalised financial services to their
consumers by their subsidiaries Sainsbury's Bank and Sainsbury's Home retail group (Symeou
2018).
Political factors: The main political factor affecting the company is political relationship
between UK and Qatar as SWF of Qatar government is one of the biggest share holders of the

organisation, so any political instability between these countries impacts the operations of the
organisation. The current political environment of Britain has helped the company expand their
outlets across the country.
Economical factors: The British economy has not developed from decline in
employment rates and disposable income of the consumers due to the 2008 recession, as the
organisation is dependent on British market for profit this affects the organisation in negative
way (Gutierrez Jr, 2016).
Social factors: The organisation generates most of their profits through the sale of fast
food products and the increase in social trend towards maintaining a healthy lifestyle has affected
the sale of such products. Various practices followed by the organisation to become sustainable
retail chain has attracted consumers with environment friendly nature. The history of this
organisation in Britain associated with this company helps the company gain consumers.
Technological factors: The technology adopted by the organisation to provide each
individual customer personalised shopping experience has helped the company increase brand
equity by enhancing consumer satisfaction. The organisation has gathered huge amount of
consumer data through strong online presence which has helped the company modify products
and services according to needs and interests of consumer.
Recommendation
According to the PEST analysis, Sainsbury needs to work on their strategy formulation
which is related with the range of their products. Company is bale to expand its business which is
by focusing on generation of revenue along with focusing the promotion of their brand at high
level. This one can be able to help Sainsbury for expanding along with achieving the objectives
and the short term goal in other countries. This can help in generation in higher revenue which is
by providing the high quality products for their customer at the affordable price range. There is
need for the price competition for which they need to have some of the best strategies. This can
help the company to get the high benefits for the company.
Drivers of change affecting organisation
From the analysis, there are many rules and regulations which has been formulated which
is by the higher authorities who are able to affect the performance of the brand. The change in
the structure of the TESCO can help in getting higher level of management which is there in

relation to the Sainsbury there is less number of authority which are able to manage all the
business functions of the organisation. In addition, there are some of the predefined laws which
are there related with rewards along with incentives which are crucial for following up for
maintaining positive environment which is at the workplace (Hobbs, 2018).
Critical evaluation of implications of drivers of change in each organisation
In Tesco, there is change in the structure of the organisation which is there can be the
cause of the change in the work performance which is due to not adaption the change by the
employees of the company which effect the job performance. This change in the performance is
directly affecting the productivity of the company along with the profitability.
In Sainsbury, there is the effort of the change in the comparably which is there causing
the different issues along with advantages which are there majorly comes to the advantages in
the organisation and are able to give benefits in long term as the increase in the productivity
along with the profitability.
PART 2
INTRODUCTION
Leaders are the major person of an firm who is taking all responsibilities for team and
role pursue by their team member. They lead their team as well as task which is provided and
completed by team to achieve the goal of organisation. This task performance of members is
based on motivation and a leader who provide path to achieve the desire task. In which overall
leaders are great decision maker in organisation in such a way their they can achieve the success.
To manage the work force in effective manner. In present report TESCO and Sainsbury both are
most popular retail store in UK. TESCO is brand which have wide range of product and service
and they expand up to global level. Sainsbury also a multinational retail store which have various
sector and various outlets in UK. As per this, TESCO enter in digital marketing field. During this
present situation they raise their sale and create margins of profit. In the addition of this TESCO
also working in finance field which help him to create huge customer base and growth. As per
the context with Sainsbury (Kuhl, 2019). They work in competition pricing and provide the
quality of product and services in low cost to customer's. In which both the company enhance
their product revenue and out take the new strategies and new plan and implement in such a way
to gain maximum profit. Their is some consideration of changes are occur in organisation and

apply the force filed analysis to and discuss the change which occur by decision making context.
Their are various factor which affect decision in which some of internal organisation changes
that carry number of factors. In the context with TESCO, they must changes in their firm for
better smoothing of work and provide smooth functioning to organisation.
Force field analysis and how they affect the decision-making
Force field analysis is development is associated with social science. This defined that
those factor which affect or influence a situation, originally social situations. It look at forces
with driving forces or occurrence towards objective. The principle, develop significant total
contribution to the field of social sciences, psychological approaches and whatever. This factor is
applied in any organisation the changes which occur it may be show negative impact or positive
impact in various organisation, the changes are mandatory. The changes are taken with this
prospect to smooth function and various operation in an organisation. Recently TESCO also
changes their some forces. TESCO follow a hierarchical organisational structure. In this
structure, position are divided in various categories to ensure the work movement in effective
and efficient way. In any organisation the business pyramid is established in such a way which
have maximum responsibilities and authority to mange the organisation and employee and focus
them with policies and regulation. TESCO organisational structure is maintained in such a way
there is five committee member which are responsible for the work and and reporting to TESCO
PLC board. Eleven member of TESCO executive committee are drive by group chief executive.
TESCO organisational structure chart is maintained in very hierarchical which show the wide
range of business scope and nature. This scope and plan with aspect with TESCO is
multidimensional phenomena which require by selected firm to make the various function and
operation in coordinated way. Where the number of department are connected and originate a
valuable decision while brain storming. This creation phenomena help the organisation for
proper running and well established system of working (Moore, 2020).
TESCO board of directors are having ten members and significant to take many of
changes on the board during their financial years it may be 2014 or 2015. These changes are
occur which is welled by numeric data and conversion occur by John Allan which is appointed as
chairman of member of board. On that time assigned company executive officer is Dave Lewis,
Alan Stewards is to make changes in quarter and name as chief financial officers. And there are
four non- executive director which are on position to retire. The new non-executive director are

three in number which handle the situation and organisation decision-making. There are
hierarchical changes in organisation is being in such a way which create impact on firm for
productive essentials. It show the four layer management structure within outlet store which can
generate annoying bureaucracy with bad impact on communication and coordination. Thus, this
also disturb the collaboration with managers. So, it is recommendation that reducing layer in
structure is helpful for the management (Reeves, 2018). Management must create more flexible
and faster flow of information which fix their function in organisation. In this, the hierarchical
approach is under drive such as regional manager, store manager, then food trading manager,
non food trading manager, personnel manager and then fresh food section manager, ambient
food manager, electrical section manager and personnel manager and then clothing manager.
Recommendation
On the above discussion, it is observed that the further improvement is need to be drive in
organisation to create valuable flow of work environment which is accessible and help to create
smooth functions.
There is requirement of changes the hierarchical structure for clear communication and
coordination which is happen between leader to manager and their subordinates, this approach
helps organisation to formulate positive environment at their workplace and employee are
motivated towards works.
Moreover, this method helps the leader and manager to get benefits for task and guide
other to make coordination that help the firm in effective manner.
Leadership concepts along with techniques which is used at TESCO to overcome decision
making barriers.
There are many leadership concepts which is along with the techniques which are there
can be used at TESCO, which can help in getting overcome from such decision making barriers
and can help in running the business smoothly and effectively (Trimm, 2017).
Lewin change model
Unfreezing- This one is first step of this model where the company spread awarenesses
which is regarding the change in the company. So this can help the employees to get the
information about the changes which can help in coordination. For this, managers need to
arrange some of there proper induction which can help the employee of the organisation to know
about the changes for the cooperation.

Changing- After getting the changes then the employees are able to get adopt of it. In this
stage the change is applied with proper management which can help in running the business
effectively. In respect to the TESCO, managers need to provide some of the important
motivations to their subordinates for getting their full support.
Refreezing- This is the stage, in which company needs to get insure that people should
not revert back to their old method which they used previously. There should use the rewards
which should provide to the employees which can motivate them to stay with this new
approaches. Here, managers need to coordinate and communicate well for getting the positive
outcomes.
Advantages- This can help the organisation fro bringing some new and advanced
practices at their workplace which are there essential to get the competitive edge at marketplace.
This can help the managers to get support from their employees which is during the changes in
the organisational function.
Disadvantage- in this, managers needs to analyse about the performance which is of their
subordinates on the regular basis. This take high costs which will reduce the overall profit of the
company.
Schein's model of organisational structure
This model says about the different levels of culture in the organisation which is going to
be discussed further.
Artefacts- This is the level in which external people are easily able to understand. There
are many of the visible factors which are belonging to the organisational like language, ambiance
related to workplace and technology.
Values- This is one common opinion along with belief which is there by each and every
employee about the values of such organisation which are able to form the cultural environment
in organisation. Such values are able for providing the correct strategies and paths which is
related with given operations which is held at the organisations.
Assumptions- This is the one in which involves some of the part of the cultural
environments which is related with the company where it is synonymous for rule in company.
Such assumptions execution and relations of different tasks which can be completed by the
employees for ending leadership procedures and struggles.

CONCLUSION
As per the above discussion, leader is major part of any organisation which play vital role
in organisation in decision-making and also motivate employee for their work and inspired them.
The various tool are applied like PEST and SWOT analysis which create impact in overall
performance of employee leadership and team of organisation. There are number of techniques
and tool are used to lead the employee in better manners. This discussion is also carried changes
and their effect on organisation.

REFERENCES
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