Leading Change in Tesco and Asda: Strategies and Challenges

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UNDERSTANDING AND LEADING CHANGE
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Contents
INTRODUCTION...........................................................................................................................................2
P1............................................................................................................................................................4
P2 &M1...................................................................................................................................................6
P3..............................................................................................................................................................11
M2.........................................................................................................................................................13
P4...........................................................................................................................................................16
M3.........................................................................................................................................................17
Conclusion.................................................................................................................................................18
P5...........................................................................................................................................................18
CONCLUSION.............................................................................................................................................25
REFERENCES..............................................................................................................................................26
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INTRODUCTION
In today’s fast growing world there has been many changes made on a regular basis ,in such
situation the person who is able to adapt the change and live according to it serves to be the
happy living person and the person who is unwilling to accept the change will be unable to enjoy
the life to the fullest in same way there has been changes made in the organizational sector and in
order to work with full accuracy it is necessary to understand the change and work according to
that change (Hayes, 2018), in an Organizational sector the changes can be in any aspect like
there may be change in the way of communication, there may be change in the techniques and
theories which have been applied .The main idea deals with ability to work by understanding the
cause of change and accepting it as a challenge which leads to the increase in performance
(Hayes, 2018).
There have been many sectors within which change serves as the important factor in deciding the
growth and the career of any organization. The two organizations belonging to the same
background than in such a case the consistency of both organizations can be made stable only
when the organization manages to produce the solutions for the recent problems faced by the
people in many countries. The effect of change can be understood more clearly on going in the
depth of such topics defined (Hayes, 2018).
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P1
In case of the business or an organizational sector change can be elaborated in terms of the
product, environment, rapid change in the technology etc.
ORGANIZATIONAL
CHANGE
TESCO ASDA
MISSION AND
STRATEGY
Its mission is to construct a
sensible difference in the lives
of the every individual
working here, with the
strategy of achieving the
leadership; leading to the
achievement of growth .It
mainly follows the Seven part
strategy (Hayes, 2018).
Its mission is to provide good
quality of products, with the
reduction in price, with
strategy classified as the
sustainable strategy resulting
in the impact on the nature as
well as cost of operating
(Hayes, 2018).
PARTNERSHIPS Tesco has the partnership with
British Red Cross over the
years, in which Tesco acts as a
founding member of Disaster
Relief Alliance (DRA).It also
has a partnership with British
Heart Foundation and
Diabetes UK (Epstein, 2018).
ASDA is the company
purchased by the Wal-Mart in
the year 1999. It has the
partnerships with various
firms such as Fare Share,
Royal Voluntary Service,
Active Communities Network
etc. (Epstein, 2018).
PEOPLE AND CULTURE With the aim to make the
work accurate, Tesco has
made a culture having clean,
safe and peaceful environment
which results in innovative
thinking of employee. People
in Tesco work with full
dedication (Epstein, 2018).
Asda basically follows the
organizational culture with the
motive to provide the best
service facilities to the people
living inside and outside the
organization. People in Asda
have respect for each other
and they also motivate each
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other to achieve the desired
task (Epstein, 2018)..
MARKETING AND
CUSTOMER
RELATIONSHIPS
The marketing strategy of the
Tesco is purely based on the
customer’s psychology. The
Tesco maintains a healthy
relationship with its customers
in order to improve the work
according to the customer’s
need (Epstein, 2018).
In terms of marketing, Asda is
recognized as the Britain’s
second largest supermarket .It
maintains the satisfactory
relationship with its customer
with the aim to serve best to
its customers (Epstein, 2018).
TECHNOLOGY It provides both online and
offline shopping for its
customers leading to the
establishment of new
technological tools such as
Stock Counter, BYOD
integration, Advanced M-
Commerce etc. (Epstein,
2018).
Asda uses the electronic
commerce like B2B, B2C.The
company has also developed
Data Mining and Electronic
Point of Sale ( EPOS) system.
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P2 &M1
The ways in which the internal and external drivers effect the change in leadership in the TESCO
and ASDA are:
Effect of physical change on people: The aim of achieving the targeted goal in the Companies
such as TESCO and ASDA can be achieved when the employees of the company work in an
effective manner. In case of TESCO, more emphasis is done on the work environment provided
to the employee that helps in achieving the desired goal. There has been many changes made in
terms of the technology and environment (Epstein, 2018), in such cases the leaders of the both
companies suffers the task of motivating the employee towards the positive impacts of the
changes.
In TESCO when the continuous changes were brought within the company than tit resulted to a
great loss in the market for the company, the same situation was suffered by the ASDA
Company (Epstein, 2018).
Impact of change in positive and negative way over the organization, team and individuals:
When any change has been made in the organization than it may lead either to the positive way
or to the negative way depending on how the people belonging to the company take the change.
INTERNAL DRIVER
OF CHANGE
TESCO ASDA
STRENGTH Since it is known that
Tesco is itself a big
name within the Britain,
the popularity of the
Tesco helps in
expanding the business
all over the country
(Epstein, 2018).
The main emphasis in
Tesco is done on the
food sales; it maintains
Its main strength
is to focus on the
selling of the
large brands
such as Cadbury,
Nestle, and
Unilever etc.
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the constant taste of the
food which results in
establishing the long
term relationship with
the customer.
It is the company
having the high
profit margin
along with
efficient
procurement
system (Epstein,
2018).
WEAKNESS Since tesco focuses
mainly on the foods
and drinks, it has
expanded its business
in field of mobiles
and insurance market
which serves
unsuccessful due to
unavailable
experience (Epstein,
2018).
To expand the
business in every part
of the world turns
into insufficient
There are
differences
between the
ranges of the
products of
the company,
giving the
chance to new
company to
establish their
market.
The profitable
ratio and Net
Contribution
% of ASDA is
below the
industry
average
(Epstein,
2018).
OPPORTUNITY TESCO offers the business
environment full of opportunities; it
ASDA provides the freedom
to do the best. It provides
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has been constantly improving in
the new technologies having the
Tesco Express Store and the
customer experience center
(Epstein, 2018).
great respect to every
employee working for it. It
also provides the training to
the new employees and
helps in personal
development of employee
(Epstein, 2018).
THREATS As the TESCO is the leading firm
in UK, it has many strong
competitors; in order to be the first
it is necessary to keep upgrading
the technologies rapidly.
Since ASDA is the part of
Wal-Mart, it faces the
competitors such as small
retailers like Lidl and Aldi.
EXTERNAL DRIVERS OF CHANGE ARE:
EXTERNAL DRIVERS OF
CHANGE
TESCO ASDA
POLITICAL TESCO has to fulfill the
criteria in case of the food
supply defined by the
government of UK as well as
by the World Trade
Organization.
ASDA has to fulfill the rules
and regulations defined by the
UK government. It defines the
consistent environment in the
field of politics.
ECONOMIC TESCO mainly focuses on the
sales growth, avoiding the
effect of the rise in the prices
of the products.
ASDA includes the economic
factors such as cost of credit,
pay level, resources,
availability of the employees
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etc.
SOCIAL As TESCO has been
elaborating its offices all over
the world, the social factor
which could affect the
organization is difference of
religion among the employees
working for the company. For
the handicapped employees
they should be sure that things
are easily accessible to them
(Epstein, 2018).
The social change faces by
ASDA mainly includes the
factors like age gaps among
the employees, differentiation
in the way of living among the
employees, helping to
versatile thinking of the
employee in every field
(Epstein, 2018).
TECHNOLOGICAL Many new technologies have
been introduced in TESCO
which enables the easy access
of various superstores which
are geographically on different
land.
Along with the rapid changing
world, technology serves the
important issue, in order to
move along with the changing
technology, ASDA has
established superfast
broadband and mobile
applications.
LEGAL In order to be successful
TESCO has to follow the laws
denied by acts such as Safety
at work Act 1974, National
Minimum Wage Act 1998,
Sex Discrimination Act 1975
(Epstein, 2018).
ENVIRONMENTAL In TESCO with the rapid
growth, proper measures have
been taken to prevent the
harmful effects of the
The proper steps have been
taken in the ASDA to
maintain the pollution, organic
wastes, green economy which
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technology over the
environment.
makes its costumers satisfied
in case of environment safe
company (Epstein, 2018).
Figure 1: Pie Chart UK
Source: (Epstein, 2018).
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P3
In TESCO and ASDA when any change is made in any sector than it demotivates the employees
on moving along with the change, generating the fear of unsuccessful completion of the task
which could lead to loosing of the job permanently, thus decreasing the profit rate of the both
companies (Slack, 2017).
The occurrence of change may also generate the stress within the employee, resulting in the loss
of honesty leading to the high turnover rate. The change done in an organization can lead to the
cause of instability in the financial as well as the social loss of the companies like TESCO and
ASDA.
The positive effects of change within the companies like TESCO and ASDA can be defined
through the speed of progress within the market, where TESCO is ranked as the largest grocery
superstore and ASDA is defined as the fast emerging company as compared to the other middle
level companies like Lidli. This rapid progress has been made by the company only when people
of the companies took the change in the positive way and tried their best to work according to the
change thus resulted in great success for both the companies (Slack, 2017).
In case of TESCO when biofuel was introduced in the fuel, which was the major change in the
company but people took this change in positive way, leading to the decrease in the use of fuel,
which increased the productivity of the goods in low cost, due to which it opened the first new
format environment store in Cheetham Hills ,saving about 60%of the energy per day. ASDA has
also introduced many new technologies in past years, one major change it brought was
introducing the first parcel tower in UK, which provided the customers to define the way of
collecting their goods in just 60 seconds and it also introduced voice activated shopping by
Google Home which made ASDA the rapid growing company after TESCO (Slack, 2017).
MEASURES TAKEN TO MINIMISE NEGATIVE IMPACT OF CHANGE
In TESCO, there were major two changes to be brought one was the introduction of the new
payment system and another was the globalization of the company, these two changes served as
the negative impact upon the employees of the company as the major task was to learn the new
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technology as well as to learn the new culture of different countries. In order to overcome this
change leaders took the training sessions of the employees for teaching them the new culture and
the new technology as the result of which today there has been many offices of the TESCO all
over the world and the new self-service-check-out system has increased the profit of the
company (Slack, 2017).
In ASDA, the company has been going through the many changes in many different sectors such
as the company has introduced the new products which were unknown to many employees
working within the company, due to which the awareness programs were defined by the
company leaders to spread the awareness of the products among the employees, as the result of
which ASDA was rewarded has the ‘Community Retailer of the Year’ in 2014. ASDA also
increased the number of technology which helped in making the shopping more easily for the
customers (Slack, 2017).
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