Organisational Change and Leadership: Sainsbury Report

This report delves into the concept of organisational change, examining its significance and impact on businesses, using Sainsbury as a case study. It explores the drivers of change, both internal and external, and compares Sainsbury's approach to that of Tesco. The report evaluates the effects of these drivers, assesses measures to minimize negative impacts, and identifies barriers to change. Furthermore, it applies leadership approaches to facilitate change management within the organisation. The analysis covers factors such as customer needs, competition, and technological advancements, providing insights into how businesses can adapt and thrive in a dynamic environment. The report concludes with a comprehensive overview of the challenges and strategies associated with organisational change.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Compare different organisational examples.............................................................................................3
TASK 2.......................................................................................................................................................7
Evaluation of Internal and external drivers of change..............................................................................7
Evaluation of measures that can minimize negative impact of change....................................................9
TASK 3.....................................................................................................................................................13
Explanation of different barriers for change..........................................................................................13
TASK 4.....................................................................................................................................................15
Application of leadership approach.......................................................................................................15
CONCLUSION.........................................................................................................................................16
REFERENCES..........................................................................................................................................17

INTRODUCTION
Organisational change refers to the fluctuations in the business related to policies,
procedures, technologies, culture and several other factors. It reflects as a significant concept of
the organisation that helps the firm in fulfilling their goals and objectives in prominent and
effective manner. In this when business enterprise may face the failure at that time firm will
focus on rendering change for meeting the standards by continuous improvement within the
organisation. Organisational changes are occurred for a specific period of time so that companies
can sustain for a longer period of time(Bohman, 2019). In this several management theories are
related with the changes and changes are highly emphasis on attaining the short term and long
term goals without facing any complexities. This project report is prepared for understanding the
organisational change in context of Sainsbury. Sainsbury is one the largest supermarket store in
UK that deals in several type of products like food, clothing, home ware etc. that can shows their
presence in the global business industry. The main aim of developing their study is to understand
the concept of organisation al change so that business organisation can attain high benefits for
their business by overcoming the risk with effective implementing of change.
TASK 1
Compare different organisational examples
There are several factors which can influence the changes in the organisation that can be
explained below:
Drivers of change- It refers to that type of factors which influenced change in the organisation
by any form. It can be internal or external in nature. In case of Sainsbury it is very essential to
identify the changes so that decision can be taken effectively to gain long term objectives.
Impact of drivers of change- Drivers of change can impact highly on the company operations
and their functions. In this Sainsbury business model is highly affected by the drivers of change
and due to this firm needs major changes in their existing system to effectively gain the profits
and sustainability in marketplace(Chappell and et.al., 2016).

For growth of the organisation, business environment is very useful but at the same time it also
contains major risk. Business environment is reflecting positive and negative impact over the
organization. At that time it is the responsibility of manager to highly focus on external factor so
that needs of customers is to be satisfied. Sainsbury is the leading supermarket chain operated in
UK. Due to changing in the global business environment company may face the challenge in
several factors that affect the profitability of the business. These factors may also helps in
dealing with the competitors such as Tesco. In this company can modify the business processes
and advanced technology. It reflects the comparison between Tesco and Sainsbury in context of
changes:
Basis Sainsbury Tesco
Changes in
external factor
i.e. pestle
Business environment is interrelated
with several factors that may impact
the overall business operations and
strategy in direct and indirect
manner. There are several factors
such as tax rate, fluctuation in
exchange rate etc. As these factors is
very helpful in supporting the talent
and business operations. Business
operations are executed on large
scale for this firm needs more
amount of funds. Company can
highly focus on technological
changes as it is very advanced in
nature in all over the world. For
staying in the market firm is focus
on reducing the cost of production
so that high profits can be gained by
the company. In this legal factors
are also affected the operations and
Tesco is one of the largest supermarket in
the UK that deals in several range of
products such as clothing, home ware,
financial services etc. to attracts the large
base of customers and gain higher profits.
It is the global level companies that can
generate their operations in most of the
countries in the world having large
number of employees are working. In
order to give the effective and positive
response to the changes company can
highly focused on improving their
structures so that they can remove
complexities in it. In this they can highly
focus on technological factor because of
attracting large base of customers. For this
business may focus on adopting the latest
technology by reduction in defects so tat
profit margin is to be increased and firm
will sustain for longer time frame.

strategy of the organisation. Because
changes in laws that are imposed by
government affect the Sainsbury. In
social factors customer perception
is highly impacted the Sainsbury
profitability. As customers demands
are changing very frequently and
needs innovative products and
services. So those companies need to
provide them for attracting high
profits.
Political factor also influence the changes
in the business entity because for gaining
high customer base and profitability firm
will emphasis on globalization and in this
several tax policy, government laws may
impacted(Eddy and Amey, 2018).
Drivers of
change
In Sainsbury, the drivers of change
can be reflected in several factors
that can shown below:
Technology is highly advanced in
UK and people are spending their
time on social media. This will
influence Sainsbury to focus on
change so that cost of production is
to be maintained profits is to be
maximized. In these budgets is to be
prepared for accommodating the
new technology. For gaining the
social factor manager can influence
their human resources, highly so
that they can connect with
customers and analyse the needs
and wants so that high profits can be
attained. For this they can comply
with rules due to this functions can
be done systematically.
In this, company can use several
software’s to enhance the organisational
performance. according to current
technological change firm will execute
several software’s such as performance
management software, budget maintaining
software etc. This will influence the high
sales by driving the change. By highly
focusing on the government policies and
rules related to foriegn trading company
can gain high benefits from it.

Impact on
strategy
The change within organisation
impact the company strategy in
positive and negative ways. In this
manager can highly focus on the
changes occur within business
environment effectively so that they
can achieve the long term strategy in
effective and positive way. but if
they cannot examine the changes
effectively than negative impact can
be occur in implementing strategy.
This also helps in beating the
competitors in marketplace(Glass
and Cook, 2016).
Changes in technological and political
factor highly emphasis the business
strategy. In this Tesco can develops the
business strategy according to the changes
occur in the external environment so that
it can be reflected effectively and on
achieving the goals for gaining profits and
customer satisfaction.
Impact on
operations
This represents as a process by
which employees and carries their
operations and changes to lead the
overall organisational system or
process. Implement the changes
within organisation according to the
business analysis factors impact the
operations of the business enterprise
in positive way and in this cost of
the company also saved.
To maintain the operations of the business
enterprise employees play a major role
and for this company can use the
technology so that operations can be
delivers effectively and it helps in
completing the task in appropriate
manner.
From the above explanation it is analyzed that there are several drivers of change such as
human resource, customers, technology, laws, competitors etc. that have impact the operations
and strategy of the business organisation. The company is highly focused for gaining higher
profits. In this Sainsbury can develop the strategy so that successfully adopts the changes that are
occur in business environment that are dynamic in nature. It will influence the working pattern of
the enterprise so that changes can be occur effectively and efficiently.

TASK 2
Evaluation of Internal and external drivers of change
A change reflects as something that causing the deviation from the comfort zone. In
current business environment each and every business organisation can speed up the changes for
sustaining in marketplace. It is very essential for the business entity to develops a required
organisational, operational and strategically change and aligned with trendy era so that high base
of customers can be attracted and firm will sustain for a longer period of time. it is reflected that
changes has impact the organisation in negative and positive way over the company financial
resources and the operations. Changes done in internal and external factor develops the
requirement to change in strategies and processes. The changes involve products, policies,
designs, operations and strategies. Several internal and external drivers of change can be shown
below:
 Customer Driver change- Needs of the customers are dynamic in nature and changes
very frequently as a time progresses. Each business enterprise has a mission to satisfy the
demands of customer in every possible way so it is very important to do changes in the
product strategies and innovations so that high base of custoiers is attracted and satisfies.
In this firm will make sure that they can follow the market trends effectively. Similar to
every other company Sainsbury can focus on drive their operations towards fulfilling the
needs of customers and capture the more new opportunities(Cruz Roche, Romero and
Sellers-Rubio, 2019).
 Competitor’s driver change- The major challenge that a company can face is to deal
with competitors that are present within market. Business entity like Sainsbury can
develops the new strategies so that they can deal with the rival firma such as Tesco. In
this Tesco is also planning to expand their market due to this Sainsbury can modify their
standards and policies for longer survival in competitor market.
 Technological driver change- With the rapidly growth economy changes can be occur
within business very prompt manner. Changes are resulting in adopting the advanced
technology that helps in gaining the high profits within the business. For gaining high
revenues Sainsbury can focus on adopting the advanced technology in their organisation
so that manger and leaders roles and responsibilities can be effectively improvised in

appropriate manner. In this proper training are to be offered to the leaders and managers
so that they cannot face the issues at the time of adopting the change(Bogue, 2019).
How organization changes impact the several terms:
Leadership behavior Team behavior Individual behavior
Within Sainsbury the role of a
leader are changes by changes
adopted in the organisation. In
this leaders are focused on
following best methods and
practices so that high results
can be achieves.
When the changes occur
within organisation plan and
policies are also change. In
this teams are required to
adopts the changes in effective
and efficient manner so that
they can appropriately
motivate their team mates.
In this according to changes
guidelines are to be transferred
by the superiors to their
subordinates so that they
individually understand it and
work according to the
changes. By integrating the
internal and external factors
changes are exhibited in the
organisation.
SWOT Analysis
STRENGTH WEAKNESSES
 High customer base is the major
strength of Sainsbury as it also
develops brand image.
 Sainsbury offers the quality goods and
services that helps in developing the
goodwill in positive manner within
marketplace.
 The major weakness of Sainsbury is the
bad behavior of staff members with the
customers.
 Sainsbury can face major competition
from their rivals that impact negatively
on the operations of company(Schell,
2019).
OPPORTUNITIES THREATS
 Expansion in the global markets helps
the Sainsbury to enhance the profits
and sales.
 By adopting the high technology
 New policy related to tax affect the
Sainsbury profits in highest manner.
That reflects as a major threat.
 High competition within marketplace

Sainsbury can reduce their cost and
gain the competitive advantage.
can affect the company profits and
revenues.
PESTLE Analysis
 Political factor- This factor includes government stability, policy etc. Sainsbury can face
the high implications because of Brexit occur in the UK due to this many problems can
be arise for the organisation. In this for doing the global business policies of other
countries are also creates problems due to this changes gives positive and negative
implication in the business organisation.
 Economic factor- This factor includes economic growth, exchange rates etc. In this
Sainsbury can face the high economic regulations due to which profit ratio is to be
affected negatively. In this firm also face the issue of current fluctuations.
 Social factor- It can relates to customer preference, age distribution, values etc. of people
within society. In present time customers preferences are changes very frequently that
creates the problem for Sainsbury to adopt change very quickly and in systematic
manner(Policy, 2018).
 Technological factor- It includes adoption of new and advanced technology as per
demand of the market. In this Sainsbury can adopts the latest technology within their
operation for communicating and selling their products to the market. This will helps in
higher profits and revenues but also enhances the overall cost.
 Legal factor- It involves consumer laws, employee related laws that are imposed by the
government of the country. In this Sainsbury overall cost is to be affected because
implementing the laws beneficial for employees and consumers are containing high cost.
 Environmental factor- It includes environmental policies, climate change etc. It will
impact the Sainsbury because of this factor modes of functioning can be changed.
Evaluation of measures that can minimize negative impact of change
Business environment involves the several activities that are implementing within the
company. These activities are performed for gaining higher profits and the execution of this can
includes the changes that are highly beneficial for the management team and sustainability of a
business enterprise. In case of Sainsbury, it is very essential for the manager and leader to
identifying the impact of change and also focus on reducing the negative impact that is related to

change. In this several relevant techniques are helping the changes in positive way. Such
techniques in case of Sainsbury can be shown below:
 Creation of pathways- This determinant is adopted by the management team of
Sainsbury that helps the manager and leader to develops the action plan that includes all
policies and procedures which are helpful for employees in attaining the task. Action plan
is to be helpful for employees because it increases the knowledge for achieving goals in
effective and efficient manner. This technique is also very attractive to generate the
interest of employees in implementing the change. Due to these employees can accept the
changes effectively and work according to that so that task can be gained in specified
period of time(Hickman and Silva, 2018).
 Discuss plan with employees- This technique is adopted by the leaders for conveying
the plans to their team mates so that is it can be formulated effectively over particular
rules. In this advice is to be given to Sainsbury so that work can be done in systematic
and effective manner. In this regular feedbacks are to be taken by the leader to their
employees so that modification can do according to that requirement. It also helps in
realizing the employees that they are valuable to the company and due to this they can
perform better and appropriately.
Bruke Litwin model
This model refers to a vital approach that is adopted by the human resource manager of
the organisation to a high extent. In this manager can identify the workforce related to some
specific task and offers some condition to get the effective results that can be achieved by using
this theory. It also helps in displaying the heterogeneous change and measuring needs for the
trade that can be examined through the importance of organisation which is applied within the
activities. It involves the several factors that can influence the business like external
environment, strategy, leadership and several other factors. These factors can helpful in dealing
with distinct aspects and in their growth and sustainability. In case of Sainsbury several factors
can be shown below:
 External environment- As per this model, it reflects the external change that are
essential for taking care in managing the organisation operations. In this management of

Sainsbury can take some necessary steps to minimize the negative impact on their
business(Phadermrod, Crowder and Wills, 2019).
 Mission and strategy- This factor is used to explain the goals, mission and strategy of
the business. In this Sainsbury manager can set the goals as per the priority so that
negative impact can be minimize at the time of implement change.
 Leadership- It includes the arrangement of responsibility within company. In case of
Sainsbury leaders need to display effective style of leadership so that negative impact can
be minimized.
 Organizational culture- This factor is very beneficial for minimize the negative impact
on the organisation at the time of implementing change. In this Sainsbury can develops
the best friendly culture so that changes can done effectively.
 Structure- In implementing change structure play an essential role in this manager of
Sainsbury can simplify their structure so that negative impact can be eliminates
effectively.
 System- The organization can highly focus on managing the system so that negativity
can be eliminated in this. In case of Sainsbury, management can focus on implementing
changes in their system so that the task can be done effectively and efficiently(Bratasanu,
2018).
 Management practice- In this Sainsbury can highly focus on changing their
management practice as per situation occurs so that negative impact can be eliminated.
 Working climate- By implementing change Sainsbury can improvised their working
climate so that task can be done smoothly and due to this negative impact can be
minimized.
 Task and skills- In this manager of Sainsbury can focus on allocating task as per the
employees skills so that they can work according to changes occur and negative impact
can be removed.
 Motivational level- In this manager of Sainsbury can offer rewards and other benefits to
their employees so that they are encouraged towards attain the task as per the changes.
This will helps in minimizing the negative effect of organisation by implementing
change.

Evaluation organisational response to change
Models and techniques like Burke Litwin change can be effectively applied in the
Sainsbury. It helps the organisation in developing the strategies effectively that helps in
minimizing the negative impact on the organisation so that high profits can be gained. These
techniques and models help the management to take decisions so that resources can be sued
optimally and functions can be done smoothly. This helps in implementing the changes
successfully that can occur because of business environment.
Conclusion and recommendations
Organisational factors possess the significant power to influence the overall business
environment in effective manner. This helps organisation to undertake the effective use of
strategies for dealing with challenges that are present within business. Changes affect the growth
and success of the company. Thus it is recommended for Sainsbury to use the Bruke Litwin
model to effectively overcome the issues so that negative impact can be minimized effectively.
This several aspects are included that helps in managing and organizing the whole functions and
activities so that high profits and revenues can be enjoyed by the firm in their long survival. in
this they can implement the strategies effectively to deal in the competitive marketplace.