Report: Kotter's Change Management and PESTLE Analysis of Sainsbury's

This report provides a comprehensive analysis of Sainsbury's, a major supermarket chain, focusing on two key aspects: Kotter's change management model and a PESTLE analysis of its macro-environment. The report begins with an introduction to Sainsbury's and an overview of Kotter's eight-step change management model, detailing each step and its application within the company. It explains how Sainsbury's utilizes this model to adapt to market trends and maintain its competitive edge, emphasizing the importance of creating a sense of urgency, building a guiding coalition, and enlisting a volunteer army, among other steps. The second part of the report applies a PESTLE analysis to Sainsbury's, examining the political, economic, social, technological, legal, and environmental factors affecting its operations. It discusses the impact of political instability due to Brexit, changing customer preferences, and environmental practices, as well as relevant legal considerations. The report concludes by summarizing the key findings and highlighting the significance of change management and environmental analysis for Sainsbury's continued success in a dynamic market.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
TASK 2............................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Sainsbury plc is one of the second largest chain of the supermarket that has its
headquartered in London. The company simply founded in 1869 and the owners are John James
Sainsbury. The discussion includes description based on chosen organisation, commonly known
as Sainsbury plc. A description on the basis of best suitable management model that highlight
several theories, proponents of the theories and some unique characteristics of that particular
management model (Rajan and Ganesan, 2017). In addition to this, the report also includes an
analysis of the macro environment factor of its operations, in which there is at least three
acronyms and some practical example based on the three acronyms.
TASK 1
Kotter's change management model is one of the popular and the most adopted one
model for every organisation as well. This eight step process of the leading change simply
cultivated from almost four decades. Dr Kotter's observation trying to transform or executing of
the various strategies. The identification and extracted success factors combined into the most
effective and a great technology in 8-step process of the leading change. The model simply has
eight stages and each of them has an effective and appropriate role which is executed by assigned
party. Sainsbury is a global organisation which is having high end presence in global market so
the company is required to inculcate change management system so that to acquire high edge
market prominence and to deal with complexities as well. Change management is one essential
concept which is adopted by businesses so that to lead the market and deal with their rivals and
market trends in such a way that it could lead in inhaling smooth working within organisation.
In this context Sainsbury is adopting Kotter's change model so as to understand market trends
and to acquire high edge business prominence as well (Odor, 2018). The roles mentioned in this
change model is helpful for the organisation to deal with any upcoming complexities in easy
manner so that self-sufficiency can be enhanced along with attaining market edge as well. This
model helps in managing leadership style in a way that in decision making process leader can
perform in extra ordinary manner which leads in converting decisions into high edge benefits for
whole the organisation. Besides this the model is associated with dealing with changing needs of
customer in such a way that it could align with business working and helps the business to
sustain for longer time. Sainsbury is a retail organisation which proves to be a customer driven
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organisation and for them this is necessary that they inhale changes in such a manner that they
could maintain their market position for longer time. In this regard as the company is using
Kotter's change model which is elaborated as under:
1. Create a sense of urgency: For implementing any change this is required to inhale sense
of urgency so that to attain changes in prominent manner. This way associated party of
the organisation may stay updated and motivated due to which market competition can be
tackled in appropriate manner. Under this process manager and leaders are responsible
for involving everyone so that opportunities for organisational growth can be attained in
full fledged manner. Under this step manager and leader of Sainsbury is trying to aware
their team for existing market condition so that opportunities and threat over the business
can be enlightened effectively (Kophuting and Mutshewa, 2017).
2. Build a guiding coalition: Under this leader and manager comes up with responsibility
of conveying people importance and significance of change. Leadership style is playing
prominent role in managing people in such a way that visible support over business
management can be seen. Change coalition is defined as managing team and creating
urgency so that change can be adopted in clear manner. Under this manager of Sainsbury
is trying to analyse weak areas of their teams so that ensure good mix of people which are
working in varied department.
3. Form a strategic vision and initiatives: In the process of change the major needs is to
inculcate emerging ideas so that to attain appropriate vision which could be helpful in
solving floating ideas and challenges of the organisation. In this step all the ideas are
required to be aligned with organisational vision so that to grab easy solution for adapting
change. With the help of providing clear vision individual get assistance in understanding
change in premium manner. In the context of Sainsbury under this step managers are
trying to provide value in order to acquire change management system more
appropriately.
4. Enlist a volunteer army: Under this step the vision of the organisation is being provided
to a team which could lead in business succession. In current time market has fierce
competition so the businesses are requisite to prepare such team which is having higher
capabilities and laced with prominent skills. Under this step manager and leader of
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Sainsbury is communicating their vision with their teams so that to help them in making
appropriate path through which change management can be adopted in way better way.
5. Enable action by removing barriers: Under this step proper communication channels are
established due to which vision of proper communication can be maintained. This is the
way in which changes are being responded by organisation in a way that self-sufficiency
can be attained. Under this manager of Sainsbury is calling continuous meetings in order
to demonstrate behaviour of other so that to deal with change management in easy
manner. There are varied operations which are required to be followed by manager and in
this context anxiety of people are addressed in honest manner so that concept of change
management can be utilised in early manner (Nakhoda and Esmaili Givi, 2016).
6. Generate short-term wins: Under this step manager and leader of the organisation
initiates to build up change process in the organisation so that to remove obstacles which
are arising during path of implementing change. Besides this under this stage leader puts
an appropriate path which can be followed by their executive in order to implement
change in defined manner and to attain short terms goals as well. In the context of
Sainsbury the company is highly active in managing changes in their organisation as the
company is undertaking all the market fluctuations so this is imperative for them that hire
people with prominent skills and identifying those people who are creating resistance for
change in the organisation.
7. Sustain acceleration: In this step leaders and managers try to accelerate system of
victory so that to acquire long term change in business. As this is the opinion that quick
success are leading in inhaling changes and for this success opportunities are required to
be seen by organisation. In the context of Sainsbury as the company is having their own
plans to attain success so this step is denoted as acceleration of opportunities of
sustaining.
8. Institute change: Under this step change is fully implemented in such a way that goals
can be aligned in clear manner. This step is the most crucial in which managers of
Sainsbury is implementing and supporting changes within their organisation so as to
recognise change coalition and contribution as well.
In terms of unique characteristics Kotter's change model is associated with whole the
organisation and in this way higher inclusion of workforce is seen in this which leads in
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managing the whole business in prominent way. Besides this, the model may helps in dealing
with organisational culture in effective way.
TASK 2
Macro environmental analysis
Sainsbury is one of the biggest supermarket chain in UK which is operating their
business in global level. The company is facing fierce competition from their varied competitors
in terms of management and product diversification as well (Zahari and Romli, 2019). In this
context as the company is planning to expand their business in various market so this is required
by them that they examine external market condition so as to enhance opportunities to sustain.
PESTLE analysis is one of the prominent tool which can be used by businesses in order to deal
external market scenarios. For the major purpose of identifying conditions in which business
may enhance their survival opportunities, PESTLE analysis is playing vital role (Blomqvist,
2017). In this regard this is prominent for Sainsbury that they examine external market
conditions so that to deal with those threat which may arise during their business expansion. In
the context of Sainsbury PESTLE analysis is elaborated as under:
Political factors: In terms of political factors UK is facing high political instability due to Brexit
implications and this provides fluctuations in the business of Sainsbury. In this situation this is
difficult for Sainsbury to process their imports from other nations. This is leading the
organisation to face higher cost of foreign products which increases overall costing for the
organisation. This may lessen consumer buying capacity and their purchasing power as well.
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This may lead the organisation to loss their customer due to which their profitability get
hampered.
Social factors: This factor is associated with needs and preferences of customer in which the
company is required to change their offerings. In current time needs of customers are emerging
and in this businesses are required to align their offerings in such a manner that it would lead the
company to acquire more customers. In the context of Sainsbury the company is having global
operations and this is very difficult for them to manage demands of their global customers. In
this manner Sainsbury is adding more options of products in their portfolio which enables them
to deal with changing needs of customers (Nandonde, 2019). Besides this these factors are
related with concern of people in such a way that high edge prominence can be attained. As
Sainsbury is customer driven organisation in which the company is required to associate
behaviour of their customer in their offerings so as to deal with market complexities and to
acquire high edge in competitive market.
Environmental factors: These factors are related with those practices which could be helpful
for environment and in which harm to environment can be avoided. Adoption of these practices
may lead the organisation to enhance their goodwill and market share as well. In this context
Sainsbury is using various practices through which they are avoiding harm provided to
environment. In this respect Sainsbury is using sustainable practices in their business through
which they are focused on minimising wastages in their industrial processes. On the other hand
the company is using recycling process which could help them to minimise their cost and deal
with their rivals in effective way.
Legal factors: These factors are associated with abiding laws and legal binding within
organisational working so that to avoid any legal proceedings which could lead in decrement of
overall market image of the organisation. In this context Sainsbury is abided to various laws and
regulations. Such as the company is utilising employment laws in their organisation due to which
they are leading path of attaining employee satisfaction which helps them to manage business
functions in effective manner (Hopkin, 2018).
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CONCLUSION
From the above report this can be concluded that change management is one of the
essential aspect of the business which is helpful for the organisation in order to acquire change in
appropriate manner and deal with the same. This manner business can align their goals and
objectives as per market needs. For applying change management in prominent manner Kotter's
8 step model is playing essential role as this involves whole the organisation in the process of
decision making which enables the organisation to attain high edge prominence and efficacy.
Besides this PESTLE analysis is one of the useful tool which can be helpful for the business to
examine those external environment factors which are providing direct implication to the
business. By this modifications can easily be rendered to the business and market succession can
be inhaled as well.
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REFERENCES
books and journals
Blomqvist, D., 2017. An examination of change management models for successful execution of
a change initiative.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Kophuting, T.W. and Mutshewa, A., 2017. Analyzing critical incidents stories to understand
change management process in the adoption of e-resources at the university of
Botswana library. International Information & Library Review. 49(4). pp.249-265.
Nakhoda, M. and Esmaili Givi, M.R., 2016. Expanding a change management framework for
Iranian information services centers: Applying fuzzy MADM techniques. Journal of
Librarianship and Information Science. 48(4). pp.322-339.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Odor, H.O., 2018. Organisational Change and Development. European Journal of Business
Management. 10(7). pp.58-66.
Rajan, R. and Ganesan, R., 2017. A critical analysis of John P. Kotter's change management
framework. Asian Journal of Research in Business Economics and Management. 7(7).
pp.181-203.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using PESTLE.
Journal of Atmospheric and Solar-Terrestrial Physics, 192, p.104901.
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