Change Management: Leadership, Strategy, and Operations at Tesco

This report analyzes organizational change within Tesco, examining its impact on strategy and operations. It identifies drivers of change, such as political, economic, social, technological, legal, and environmental factors, and evaluates their influence on organizational behavior. The report also determines how barriers to change, like lack of clarity and ineffective communication, affect leadership decision-making. Various leadership approaches are considered for managing change effectively, including Kurt Lewin's model and transformational leadership. The analysis highlights the importance of a strong change management system for maintaining a competitive advantage and achieving long-term growth, emphasizing the need to overcome internal and external barriers through a positive and well-planned approach.

Understanding and leading
change

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Comparing ways through which changes impact organization strategy and its operations........3
Evaluating the influences that drivers of changes have on the organizational behaviour...........5
Determining how
barriers to change
influence leadership
decision-making..........................................................................................................................8
Leadership approach to deal with change in business:..............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Organizational change is very much important as it helps in maintaining the
competitive advantage and assure that set goals are achieved in timely manner. Also, present
report is based on the Tesco that is very well-known for conducting its operation on large
scale. Furthermore, study will compare ways through which change impacts the firm and will
also identify certain drivers for change that influences the decision-making. Moreover, certain
barriers to change will also be analysed that affects the decision-making of the firm on large
scale. Furthermore, through such analysis the firm would be able to deal with certain changes
within the workplace in the most efficient manner. Lastly, the study will apply the range of
leadership approaches so that change could be initiative within the workplace in smooth manner
in the future.
MAIN BODY
Comparing ways through which changes impact organization strategy and its operations
Tesco being the large organization has made several changes so that best business strategy
might be developed for future working of the business. Furthermore, latest trends an the
advancements in technologies has forced the business to implement certain changes so that
long term continuity and growth of the firm could be assured (O’Reilly and Chatman, 2020.).
Thus, using pestle analysis certain changes being occurred in the organization is been defined
as:
PESTLE analysis
Political factors: These consist of factors that affects the working of the business on
large scale and consist of various tax rates changes, new government rules and norms, tariff
rates, Brexit influences and much more. Thus, such factors mainly impacts the working of the
business and force them to bring new changes within the workplace.
Economical factor: Various factors like unemployment rate, demand and supply, market
expansions, trade tariff, economic recession etc. also affects the working of any retail firm on

large scale. Furthermore, analysing such factors is important for working in the dynamic
market.
Social factor: Due to changes in the social patterns, behaviour, taste and preferences etc.
company revenues could be impacted in much negative manner. Furthermore, in context of
Tesco such factors had to be analysed in detail so that consumers demand might be fulfilled
that will help in assuring long term profits. Moreover, Tesco has identified recently that
customers are more inclined towards buying the organic food items (Bonsu and Twum-Danso,
2018). Therefore, it has started the new product line of organic foods products so that
maximum demands could be fulfilled.
Technical factors: Recent trends and changes in the technology helps in limiting the
time of production and also helps in assuring maximum sales to the public. Furthermore, in
Tesco the technology are updated on regular basis so if nay change required than it could be
made quickly within the workplace without thinking much about it.
Legal factors: Factors like change in the government rules and laws such as minimum
wages, working hours, emergency leaves etc. affects the working of firm on large scale. For
instance : In Tesco it was found out that there was exploitation of the workers that are working
hard to achieve the goals of the firm. Thus, such kind of problem would create negative impact
on brand image of the firm and create ineffective within the working of the firm.
Environmental factors: In current time environment and its resources needs to be
protected by the firm so that cost of production might be reduced and also maximum efficiency
within the working might be gained.
Thus, with the growing market changes and customer demand the Tesco make sure that all such
factors are monitored on regular basis so that best business strategies and working might be
assured in long run.
Organisations Drivers of changes Impact on strategy Impact on operations
Tesco
The main driver of
change for Tesco is
change in government
rules, quality and
standards of product,
The company on
reducing the wastage
and becoming more
sustainable had
adopted the best
Due to changes now
the company
employees way of
working and the
operations methods

physical and economic
changes and much
more that force the
business to make
plans according to
latest changes so that
more profits could be
earned (Roşca , 2020).
strategy and adopted
various changes within
the workplace.
have been totally
changed so that
demand of the
consumers could be
met in best way.
Sainbury
The main driver of the
changes in the
Sainsbury is closing of
the fish and meat
product line as
demand has ben
dropped on huge scale
The changes in the
Sainsbury mainly
impacted the strategy
as there was
complete change in
the distribution
strategy and also
proper costing plans
of the firm had also
been identified.
The company
operation focused
more on selling
vegetarian products
through both online
and offline means so
that more revenues are
generated in the future.
Evaluating the influences that drivers of changes have on the organizational behaviour
Drivers of change are defined as groups of external or internal factors that intends to
bring changes within the current operation and strategies of the firm. Also, such kind of drivers
might create both positive and negative impact depending upon how the organization looks at it.
Furthermore, the change might be in context of new equipments, changes in staff members,
change in customer demands and services and much more (Hofmann, 2019). Also, the change
driver influences the company to look within the existing systems and identify what are the
appropriate changes that might be undertaken so that looses within the company might be
minimized and also higher amount of revenues might be generated in due course of time within
business . Below is the detailed impact of the change and measure through which such changes
could be minimized to large extent.

Changes
Internal and
external
drivers
Impact on the
leadership
behaviours
Impact on the
team
development
Impact on the
individual
behaviour
Measures to
minimize the
impacts of the
changes
Change in the
Tesco due to
changes in
overall
demand of the
products.
(Tesco
announces major
change to how
many shoppers
pay for goods,
2022) Thus,
the company
now has aimed
for
introduction of
self checkout
points to
provide more
ease.
This particular
kind of change
is due to the
external driver
as in recent
time of
pandemic the
demand of
various
products have
been fallen
short off that
impacted
much of the
business
This kind of
external driver
change had
impacted the
working of the
firm and
leadership as
now the
consumers
have the right
to operate
their carts and
doing easy
shopping.
Also, the
customer
would seek
assistance
from Tesco
supervisor
only when
needed thus
minimising the
overall
workplace and
leadership
within the
For bringing
the change in
terms of self
checkout
points the
company
needs to build
the strong
network of
team that
would be
responsible for
handling the
customer
queries in
most effective
way.
Furthermore,
team
development
would be
done through
conducting
various
training
programs so
that certain
The new
change within
the workplace
would mean
that there
would b
positive
working
environment
and also
employees
would be
motivated to
give their best.
Furthermore,
through this
change
productivity
would be
enhanced and
also higher
efficiency
would be
gained through
carrying out
various task at
the workplace
Adopting to
the changes in
the most
efficient
manner is very
much
necessary so
that there are
not many
difficulties
faced in
carrying out
various
operations.
Also, change
within the
Tesco would
be managed
through
applying the
Kurt Lewin
model that will
help in
providing
better
understanding
to the

workplace.
Furthermore,
leadership
behaviours
tends to
develop
positivity and
ensures higher
level of
collaboration
among the
team members
so that more
positive
outcomes
might be
gained in the
end
competencies
and skills are
developed in
right manner.
furthermore,
if change is
been explained
to the
employees in
right way than
it would result
in maximum
efficiency and
would help in
building the
self-
confidence so
that
challenging
tasks within
the firm could
be solved in
right manner
employees and
would help in
creating
systems and
rewards so that
employees
would remain
motivated to
carry out the
task as it has
been identified
(Muldoon,
2020).
Furthermore,
the force
filed theory
would also be
used to
implement
change within
the firm so
that positive
and negative
forces might
be identified
and also
certain
initiative
might be taken
so that
success could

be gained in
well-defined
manner in the
future
Thus, in the end it can be said that changes are the part of any organizational system and
therefore company needs to be well planned before only so that not many difficulties are faced
in the end. Also, for above stated change and various others too, Tesco management would
adopt the transformation leadership styles so that employees are able to understand the motive of
the change and the benefits that it would provide in the end (Hendrikz and Engelbrecht, 2019).
Furthermore, for having the best growth in long run it is been required that change management
system within the firm is very strong so that all the internal and external barriers are overcome
through the positive approach. Also, through adopting certain changes the firm would be able to
maintain competitive advantage and assure best returns to the future.
Determining how
barriers to change
influence leadership
decision-making
There are various internal and external barriers that affects the working of the firm on
large scale. Also, it has been known that to overcome such barriers proper leadership nd
decisions making is been required so that right kind of goals are achieved on right time.
Furthermore, below are various list of barriers that affects the decision-making of the firm and
some of them are been described as follows:
Lack of clarity: this is one of the major barrier that forces any business to implement
any kind of change in the easier manner. Also, in context of Tesco if the firm is unclear about
the change than overall objectives of implementing the change would be lost. Furthermore, the
management need to be very sure about what are the possible outcomes of the changes and how
it will affect the currents working of the business (Bentham, 2018). Also, lack of clarity would
only create wastage of resources and creates unnecessary conflicts at the workplace.
Furthermore, lack of clarity would simply mean that there is some kind of gap which would
force the employees to work in independent manner and not take additional responsibilities

within the workplace that is essential for the growth and success of the organization in different
regions. Also, it is seen that if there is no clarity there would less of the informed decisions and
more of what is being heard from certain kind of groups or public.
Ineffective communication: This is another major barrier that causes problems in
understanding and implementing change within the firm in long run. Also, communication is the
main element through which various types of problems could be solved in the most effective
manner. Also, it is very essential that when implementing any change on large level it is
properly communicated to each and every people involved so that all the queries are solved
earlier without creating any kind of disturbances in daily routine working (Gomes, 2020).
Furthermore, it is been seen that communicating within the groups when change is been
implemented also create barriers so other employees feel not being valued and also there are
cases of misrepresentation's of the information that is not good for working of the firm on large
level.
Cultural barrier: It is another most common problem which is often seen in
organization where there are conflicting opinions among the people about certain things that
creates huge problem in the end. Furthermore, it is often seen that when any change is been
proposed within the firm than there are people that disagrees on statement that is not good for
long term organizational success in the future. For instance: Tesco is operating on large scale
that has variety of employees working on different roles and posts. However, due to cultural
differences the organization is not able to bring innovative processes within the workplace easily
thus creating more problems in the future .
Change resistant culture: Also, it has been seen that organizations that are developing
on large scale tends to have employees that resist to accept any kind of change within the
workplace. Also, the change resistant culture is been due to the fact that employees don not
feel comfortable in accepting new changes within the workplace easily. Furthermore, employees
resist because they have problems in learning and adapting to completely new environment that
would bring lot of new opportunities and challenges along with it. For instance: In Tesco the
employees that are working in different parts of regions often resist when any new policies or
systems are been implemented within the workplace as it could be seen in time of pandemic
when the working methods were completely changed. Thus, such kind of changes would often

make the employees resists as it consumes lot of time and energy to learn things in new
environment and system.
Lack of governance : This is also one of the major barrier that would impact the success
of the firm in long run as it would not allow the organization to implement any kind of change
easily. Furthermore, it is known that investment in change is very expensive and to some
organization it might sound very costly affair (Chiwawa, Wissink and Fox, 2021). Also, it is
barriers as the firm need to carry out the whole management program through which proper
steps of working and processes could be clearly stated to all the employees that are part of the
new change. However, it is often seen that it is very complex process and there are maximum
chances that due to lack of proper governance there are high chances of major complexities
within the existing working of the firm.
Thus, from the above it can be said that there are list of the barriers that might affect the
overall Tesco efficiency in carrying out various business tasks. Also, it can be said that such
change management problems of the firm would be solved in the most effective manner through
applying the force field analysis that states that in nay firm that wants to bring any kind of
change within the firm have the major four elements that are taken into consideration such as
driving forces, restraining forces, forces of change and resisting change. Thus, when all these
elements are analysed and evaluated completely by the firm than there are least possible chances
that any big or small change which tends to be implemented would create problem for the firm
in the future. Moreover, through suing such type of analysis the firm would be able to
implement the best techniques and made the best decisions for the overall working of the firm
in long run. Furthermore, firm like Tesco would be able to identify and analysis negative forces
in advance so that proper corrective action plans might be developed in advance.
Leadership approach to deal with change in business:
In a business an effective leadership is required which can support the change which are
going on n the business. It is the leadership which depicts the direction of changes that are going
within the business. Change management backs the sustainability of the change which has been
adapted by the business as employees in the organization goes through various stages before
making the change stable (Galli, 2018). A business needs various sustainable approaches that
manages the flexibility and adaptability to support the changes within the business.

Under the context of transformational leadership, this leadership style assist in
developing the employee's motivation and morale. As improving the morale and motivation
leads to an improved productivity and performance of the employees in the organization. This
leadership style enables business to encourage critical thinking process as it consist of business
visionaries and also helps in bring the innovation in the organization de to the highly motivated
staff.
The democratic leadership style enables effective business management with the help
of traditional top down approach. It establishes the concept of employees being the stakeholder
of the business and hence they must be allowed to take p;art in the decision-making. Business
must involve them in the process of decision-making in the organization, encouraging the
participative leadership style.
As per the autocratic leadership style, each individual has the power to take control of
the decision-making process and the power to manage the subordinates. Leaders create structures
and rigid environment which directs their teams with the processes and methods (Alqatawenah,
2018).
Leadership approach effectiveness: for encouraging the sustainable changes in Tesco
technological innovation helps in improving the performance of the business regarding the
profitability and productivity. As it will help in improving, the customer experience by adapting
various technological advancements in the business. Tesco will get help from democratic
leadership approach in order toe enhance employee's involvement and create a business
environment which makes teams and manage the changes efficiently (Dumas and Beinecke,
2018).
Model of change management: various change management models can be adapted by the
company which will deal with the changes in the organization. Kotter step changes management
and kubler-ross change management curve can be good approaches for Tesco in order to deal
with the changes.
Kotter's step change management model: this model focuses more on people in the
organization's involvement in the change processes rather than focusing less on the changes.
With the assistance of transparency, team work and trust, this model will be extremely helpful in
dealing with the participants facing resistance to change. There are 8 steps which are followed
under this model to deal with the changes. Such as creating the sense of urgency, guiding the

team, developing the vision, communicating for the buy-in, empowering the actions, building
short term wins, do not let up and make the changes stick (Laig and Abocejo, 2021). This model
provides a clear guidance throughout the process of change in the business which makes it easy
to implement. It emphasis on involvement and acceptability of staff for the success in overall
process. The crucial element here which is emphasized on is the building and preparing the aura
for acceptability of the change.
Kubler-ross change management: this theory focuses on the individual experiences which
people go through while incorporating the changes in the organization. It determines the
emotional reaction of the people towards the change. It has various stages such as anger, denial,
depression, bargaining and acceptance.
This model will help Tesco to analyse the reaction of the workers in the company which
will help the organization in managing the same in advance for the better change
implementation. Employees are the centre to the changes happening in the organization if they
are not happy ad acceptable of the changes the business will not accelerate in its practices to
achieve the desired goals and objectives. Hence, this model appropriately focuses on the
requirement to understand the behaviour of employees towards the change and stages that
employee goes through (Chavan and Bhattacharya, 2022).
Effectiveness of change management model: this model helps in dealing with the
organizational changes in the business. The kubler change management curve enables business
to foresee the staff's reaction as well as allow the organization known in beforehand the biggest
problems and helps also resist more. Kubler's change management allows the business to make
the employees in the organization understand the importance if the changes to the business and
teams. If they understand the need for changes it will be easy for them to accept it. Also, the
importance of change management must be made ware of to the staff as they are crucial part and
it is their shoulders on which company's operations stand.
It is vital for the Tesco to use different models of change management and leadership
approaches in order to deal with the changes in the business effectively. As these models and
leadership styles help business deal with the employee's resistance and various organizational
barriers which hinder the implementation of the change within the business. The kubler Ross
model moreover helps in identifying how each individual deals and reacts to the change however
it lacks proper evidence to support the evidence of behaviour of the individual which are driven