Strategic Change Leadership: Analysis of Tesco and Sainsbury's PLC

This report provides an analysis of understanding and leading change within organizations, focusing on Tesco and Sainsbury's as case studies. It examines internal and external drivers of change using SWOT and PESTLE analyses, explores different leadership styles, and identifies barriers to change that influence decision-making. The report also discusses team development strategies and the effectiveness of various leadership approaches, including Lewin's model and force field theory. Key areas covered include the impact of technological advancements, organizational culture, and structure on team behavior and individual performance. The analysis further delves into resistance to change, such as job security concerns and fear of failure, and suggests strategies for managers to mitigate these barriers and enhance organizational performance. Desklib offers this report as part of its collection of study resources, providing students with valuable insights and solved assignments.

Understanding and leading change

Table of Contents
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
LO1....................................................................................................................................3
LO2....................................................................................................................................3
Internal and external drivers..........................................................................................3
LO3....................................................................................................................................6
Different barriers for change..........................................................................................6
Force field theory...........................................................................................................8
LO4....................................................................................................................................8
Lewin’s model................................................................................................................8
Leadership approaches.................................................................................................9
CONCLUSION.................................................................................................................10
REFRENCES...................................................................................................................11

INTRODUCTION
Understanding and leading change refers to preparing employees to meet problems
or face challenges. In an organisation there are many changes in policies and
managers implement change so that they can generate more profit (Nelson‐Brantley
and Ford, 2017). Tesco is a public company founded in the year 1919. It is supermarket
where all type of products is available. Sainsbury is a public company which is founded
in 1869 and provides different product. The report examines, SWOT and PESTLE
analysis is discussed. Internal and external drivers of organisations, leadership style
used in company and team development strategy is described. Barriers to change
which influence leadership decision making and effectiveness of leadership approaches
is discussed.
MAIN BODY
LO1
It is important for every organisation to make strategies better than competitors to
gain competitive advantage in market and build good image in minds of customers.
Strategy helps in accomplishing goals and objectives of organisation. It is the
responsibility of managers to identify factors that can affect performance of employees
and find different ways to solve problem to run business smoothly. For development of
company, managers should conduct market survey and determine strategies which is
beneficial for growth of Tesco organisation.
Organisation Pest analysis Drivers of
change
Impact on
strategy
Impact of
operations
Tesco company Political factor
affect working
of Tesco
company i.e., in
different
countries rules
vary. Economic
There are some
drivers for
change in
Tesco company
are, human
resources,
customers,
Pest analysis
has positive as
well as
negative impact
on strategy. It
facilitates
understanding
Pest analysis
help
organisation in
identifying
factors that
may affect
working of

factor affect
revenue, sales,
profit of
company. It
includes pricing
of the product.
Social factor
refers to
change in
choice of
customers,
trends are
changing. This
affect sales and
profit of
company
(Christodoulou
and Cullinane,
2019).
Technological
factor means
change in
technology, it is
difficult for
managers to
implement
latest
technology.
changes in
legislation,
rules and
regulations are
changed,
expansion of
business in
other country,
changes in
technology. For
achieving goals
and objectives
it is important to
make
improvements
in plans or
strategies. It is
essential to
identify drivers
for change so
that better
plans can be
made.
of business
environment. It
encourages
development of
external factor
and strategy
can be made
according to
that. Negative
impact of Pest
analysis on
strategy is that
after analysing
external factors
changes are
made in
strategies so
that targets can
be
accomplished.
company and
better decision
can be taken
for achieving
goals and
objectives. For
successful
business
operation it is
important to
determine
political,
economic,
social and
technological
factors. This
helps in
accomplishing
targets and
good decision
can be taken.
Proper Pest
analysis is
beneficial for
growth and
development of
firm. It also
helps in
identifying
factors which
could change in

future.
Sainsbury
company
Pest analysis of
Sainsbury
company,
political factor
includes
change in
government
policies, rules
and
regulations.
Economic
factor means
economic rate,
inflation,
interest rate
etc. Managers
of Sainsbury
company
should
determine
these factors.
Social factor
refers to
change in
trends and
choice of
customers is
changing
(Thompson and
McLarney,
Drivers for
change are,
business
growth, key
performance
indicators,
competitors,
changes in
rules and
regulations,
technology
development. It
is essential to
make changes
in plans or
strategies so
that targets can
be
accomplished.
For growth and
development of
organisation
better plans
should be
made and there
are some
drivers for
change.
Pest analysis
has impact on
strategy made
by managers of
Sainsbury
company.
When
managers
make plan to
expand
business in
other countries
the there are
some
challenges
which they
have to face.
Before
expanding
business
market survey
is done and
then changes
are made
accordingly.
This help in
achieving goals
& objectives of
company.
Pest analysis
helps in
determining
factors that
may affect
performance of
company. It is
the
responsibility of
managers to
identify external
factors and
make strategies
according to
that. This helps
in achieving
targets and
better plans
can be made.

2017).
Technological
change refers
to change in
technology so
that better
plans can be
made.
LO2
Internal and external drivers
There are some internal and external drivers which affect performance of
employees and organisation. It is important to identify internal and external factors in
market so that better plans can be made and good decisions can be taken for
development of organisation. Nowadays, competition is increasing so managers have to
make good plans to gain competitive advantage and to generate more revenue.
Change Internal/
external
Impact on
leadership
behaviour
Impact on team/
departmental
behaviour
Impact on
individual
behaviour
Measure
minimise
negative
impacts
Technological
change
It is an
internal
change which
affect
performance
of employees.
Due to
change in
technology
overall
efficiency of
Technological
change has
positive
impact on
leadership
behaviour
because
leaders can
identify
performance
of team
Impact of
technological
change on team
behaviour is that
they have to
make plans and
procedures again
because
technology is
changed. It has
positive as well
With the help of
increasing
technological
tools and
techniques,
communication
can be done
properly and it
lead to
accomplishing
goals and
Some
measures
minimise
negative
impact
technologica
change
organisation
that, bef
making pla
market surv

organisation
will be
increased
(Metcalfe,
2018). This
change affect
performance
in both the
organisations
and
necessary
steps should
be taken by
managers so
that goals and
objectives of
company can
be achieved.
members and
better
decisions can
be taken for
accomplishing
targets. It has
negative
impact also as
due to change
in technology
leaders has to
make
changes in
plans
accordingly.
as negative
impact on
organisation.
Positive impact is
that they can
work efficiently
and negative
impact is that
team members
has to make
improvements in
strategies.
objectives.
Technology helps
in increasing
efficiency of
employees and
good decisions
can be taken.
should
conducted
managers.
Implement
new
technology
before mak
any strate
so that th
will be
issue a
goals can
accomplishe
There must
minimum u
of technolo
so t
employees
not complet
dependent
technology.
Organisational
culture
This is an
internal driver
which is
present within
the
organisation
and it may
affect
performance
of employees.
Organisational
culture has
positive
impact on
leadership
behaviour as
it helps in job
satisfaction
and boost
confidence of
Organisational
culture has
impact on team
behaviour as if
culture of
company is good
then employees
feel motivated.
Culture of Tesco
and Sainsbury
Culture has
impact on
individual
behaviour as
employees want
safe and healthy
working
environment so
that they can
focus on their
Measures
minimise
negative
impact are,
analyse ne
of employe
and accord
to t
facilities
should

This lead to
decrease in
overall
efficiency of
company and
managers has
to face
challenges.
employees
(Martínez-
Caro, E.,
Cegarra-
Navarro and
Alfonso-Ruiz,
2020). When
culture of
company is
good then it
helps in
boosting
morale of
workers and
they will work
efficiently to
accomplish
goals and
objectives.
company is good
and employees
are satisfied.
They are
focusing on
accomplishing
targets.
work and better
products can be
made. In Tesco
and Sainsbury
company
employees are
getting good
working
environment
which helps in
increasing their
efficiency.
provided.
Make so
rules a
regulations
that work c
be prope
and to av
conflicts.
Organisational
structure
Organisational
structure is
present within
the company
and managers
should make
plans or
strategies so
that goals can
be
accomplished.
Structure may
Organisational
structure has
impact on
leadership
behaviour
because all
workers have
to work
according to
structure
made.
Leaders have
Structure of
company helps in
achieving goals
and objectives. In
Tesco and
Sainsbury
company
managers has
made
organisational
structure which
clearly defines
In Tesco company
divisional
structure is
applied which is
beneficial in
satisfying needs
of individual
person. In
Sainsbury
company,
functional
structure is
Measures
minimise
negative
impact
organisation
structure is
apply b
structure
which ro
and
responsibilit
of ev

affect working
of employees
and lead to
conflict among
employees. It
is important to
make proper
structure so
that work can
be done
efficiently and
there will be
less chances
of mistakes.
to give
instruction on
the basis of
organisational
structure so
that goals and
objectives can
be achieved.
Leaders are
giving
guidance to
team
members for
how they have
to complete
work.
targets and better
plans can be
made (Sangvikar,
Kolte and Pawar,
2019). Leaders
have to give
instructions
according to
structure so that
there will be no
confusion or
misunderstanding
among
employees.
applied which
helps in
accomplishing
targets and it
reduces conflicts
among
employees.
Structure defines
roles and
responsibilities of
individual person
to avoid
misunderstanding.
employee
defined so t
there will
no confus
and work c
be comple
on tim
Managers
responsible
satisfying
needs
employees
and solve
the issu
within
workplace.
LO3
Different barriers for change
There are different barriers of change such as, driving force and resisting forces. It
is important for managers to make plans and strategies so that goals and objectives of
organisation can be achieved.
Driving forces Customer preference- It means that changes are made in plans or strategies
because customer preference is changing and to satisfy needs of customers it is
essential to make products according to their choice. Manager make changes in
plans before manufacturing any product and try to provide good quality products
to customers (Neill, 2018). This helps in generating more revenue and helps in
gaining competitive advantage in market. This is also beneficial in attracting more
people and increase sales of Tesco and Sainsbury company.

 Competitor moves- Another barrier for change is competitor moves. There are
many companies making similar type of products so, managers should identify
strategies which is made by competitors and make changes in plans accordingly
so that goals can be accomplished. Tesco and Sainsbury both companies are
providing good quality products to customers and they are competitors.
Managers make changes after determining strategy used by competitors so that
they can perform better than competitors.
 Technology – Technology is another barrier for change because nowadays,
there is rapid change in technology and to make good quality products it is
essential to use machines. This helps in increasing efficiency of employees and
they are able to focus on accomplishing targets (Klein, Oschinsky and Rubens,
2021). Managers should apply best technology so that more revenue can be
generated and it help in fulfilling targets.
Resisting forces Job security – This is a barrier for change i.e., job security. Employees are not
satisfied by the facilities provided by company. This is the reason why people
resist change and it is an issue because employees want job security. It is the
responsibility of managers to provide safe and healthy environment to employees
and satisfy their needs so that they can work efficiently. Fear of failure – In some organisations, employees are having fear of failure and
due to that they are not able to perform well. This is a barrier for change,
managers should provide training to employees and take necessary steps so that
work can be completed on time and there should be no mistake. Employees
should not think about failure, they should only focus on achieving targets and
find different ways to complete the given task (Zea-Reyes, Olivotto and Bergh,
2021).
These are some barriers which is faced by organisations and it should be solved by
managers so that task can be completed on time and targets can be achieved. There
are some ways to reduce barriers for change such as, alternatives should be find out so
that performance of employees did not get affected. Some rights should be given to
employees to boost their confidence and to increase efficiency (Pavlista, Angerer and

Diebig, 2021). In Tesco company, these barriers affect decision of managers because it
is difficult to manage employees and satisfy their needs. Managers have to take
decision after analysing market situation to gain competitive advantage and to earn
more revenue.
Force field theory
Force field theory refers to theory which helps in identifying result of any situation.
This technique helps in finding result for and against current state. Force field theory is
beneficial because it provides clear analysis which help in taking good decision and
better plans can be made for growth and development of company. This theory
identifies negative forces which should be eliminated to ensure successful
implementation of change. It is important to identify forces which are not useful and it
should be removed so that goals and objectives of organisation can be achieved ( Yang
and et.al., 2021). Force field analysis is a fair analysis which allows every company to
identify their positive and negative points so that better plans can be made and they can
gain competitive advantage in market. This theory can be used as a group or individual.
Force field theory is beneficial for growth of Tesco company and managers can make
better plans so that targets can be achieved. Force field theory has disadvantage i.e.; it
is time consuming. This theory needs time to develop and it is difficult to quantify
external factors. This theory can be applied in starting so that better results can be
collected and help in accomplishing targets.
LO4
Lewin’s model
Lewin’s model refers to a three stage model such as, unfreeze, change process
and refreeze. It is important to apply this model because it is easy to implement and
helps in encouraging lasting change. In the first stage of this model, it includes
determining what needs to change, ensuring support from management and creating a
need for change. The second stage is change which includes sharing information and
leadership (Burnes, 2020). During this stage manager should ensure that there is
proper communication between employees, promote and empower action, involve more
employees. After this stage, next is refreeze, in this companies implement new changes
into culture, develop and promote different ways to sustain change, offer training and

apply new methods for growth of Tesco organisation. It is important to apply this model
so that better plans or strategies can be implemented and goals of organisation can be
accomplished.
Unfreeze Change Refreeze
Communication Proper structure should be
made in which
communication process is
defined like, which
employee has to
communicate to whom.
This help in reducing
conflict or
misunderstanding among
employees and improve
relationship among
employees. This also help
in reducing chances of
duplicate work.
Rewards Rewards should be given
according to the
performance of an
individual employee so that
there will be no partiality
and employees will work
efficiently to achieve
targets.
When rewards are given
according to performance
of employees then it helps
in satisfying needs of
employees and boost their
confidence so that targets
can be achieved.
It is important for managers of Tesco company to apply Lewin’s model because it is
easy to implement and help in determining different ways which can be applied to
improve overall performance of employees as well as of company. For growth and
development of firm, it is essential to apply this model and boost confidence of
employees.
Leadership approaches Autocratic leadership approach– Autocratic leadership is an approach which
means that leader is having all the powers and rights. In this leadership
approach, team members are not having right to take decision or work according
to their choice. Benefit of this approach is that it helps in reducing conflict or
misunderstanding among members because they have to work according to the