Analyzing Change Management Strategies in Tesco, Asda, and Waitrose

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UNDERSTANDING AND LEADING
CHANGE

TABLE OF CONTENTS
LIST OF FIGURE........................................................................................................................ 3
INTRODUCTION.........................................................................................................................4
LO1............................................................................................................................................... 5
P1. IMPACT OF CHANGE ON ORGANIZATION’s OPERATIONS AND STRATEGY. 5
M1. DRIVERS FOR CHANGE AND THE TYPES OF ORGANIZATIONAL CHANGE
THEY HAVE AFFECTED.......................................................................................................7
LO2............................................................................................................................................. 10
P2. EVALUATING THE WAYS OF INTERNAL AND EXTERNAL DRIVERS AFFECT
THE LEADERSHIP, INDIVIDUAL BEHAVIOUR AND TEAM.........................................10
P3. EVALUATING THE MEASURES TO MINIMIZE THE NEGATIVE IMPACT OF
CHANGE ON THE ORGANIZATION.................................................................................12
M2. EVALUATING THE ORGANIZATIONAL RESPONSE TO CHANGE BY
APPLYING THEORIES AND MODELS.............................................................................14
D1. CONCLUSION AND RECOMMENDATIONS BY JUSTIFYING THE EFFECTIVE
PLAN FOR CHANGE............................................................................................................16
LO3............................................................................................................................................. 17
P4. EXPLAINING BARRIERS FOR CHANGE AND DETERMINING THEIR
INFLUENCES THE DECISION MAKING OF LEADERSHIP..........................................17
M3. USING FORCE FIELD ANALYSIS FOR ANALYSING THE DRIVING AND
RESISTING FORCES TO SHOW THEIR INFLUENCE ON DECISION MAKING.......18
D2. EVALUATING THE FORCE FIELD ANALYSIS TO MEET THE
ORGANIZATIONAL OBJECTIVES.....................................................................................20
LO4............................................................................................................................................. 21
P5. APPLYING LEADERSHIP APPROACHES TO DEAL WITH THE CHANGE IN
ORGANIZATION................................................................................................................... 21
M4. EVALUATING THE LEADERSHIP APPROACHES AND APPLYING THE MODELS AND
FRAMEWORKS THAT CAN DELIVER CHANGE IN ORGANIZATION.............................................22
D3. EVALUATING THE EFFECTIVENESS OF THE LEADERSHIP APPROACHES
AND MODELS OF CHANGE MANAGEMENT.................................................................25
CONCLUSION...........................................................................................................................26
REFERENCES.......................................................................................................................... 27

LIST OF FIGURE
Figure 1 BOHNER AND THE ARNOLD CHANGE MODEL..................................................6
Figure 3 CONTINUOUS IMPROVEMENT MODEL.............................................................12
Figure 4 BURKE LITWIN MODEL..........................................................................................13
Figure 2 TYPES AND DRIVERS OF CHANGE....................................................................14
Figure 5 FORCE FIELD MODEL............................................................................................18
Figure 6 LEWIN’S CHANGE MANAGEMENT MODEL.......................................................22
Figure 7 KOTTER’S CHANGE MANAGEMENT THEORY.................................................23

INTRODUCTION
This assignment examines the changes within the organization which impact on the
strategies and operation of Tesco plc and the two large scale organizations Asda and
Waitrose. Tesco Plc is a British multination company and a retailer which deals in
general merchandise and groceries. It is the public limited company which was founded
in 1919 by Jack Cohen and its headquarters is in Welwyn garden city, Hertfordshire
England UK, and serves its products in superstore, hypermarket, supermarket and
convenience shops. This assignment will lay emphasis on the change management by
evaluating the influence of the drivers by analyzing the internal and external drivers of
change which effect on the individual as well as the organizational behaviour.
This will also evaluate the measures for decreasing the impact of the change on the
organizational behaviour of Tesco by applying different leadership approaches and
models. This will also determine the influence of the change on the decision making of
the leadership by using the five forces field analysis. This assignment will also help
Tesco to deal with the change by applying the leadership approaches and evaluate
these approaches to deliver the change in Tesco by applying the models of change
management and frameworks effectively.

LO1
P1. IMPACT OF CHANGE ON ORGANIZATION’s OPERATIONS AND
STRATEGY
The change is very important for survival in life. Every organization faces many changes
within the workplace and the environment. The strategies and operations of Tesco by
taking the example of Asda and Waitrose that also get impacted by the change (Jones,
2015). The study of change is required when there are deviations in the external
environment that can effect on the strategy of the business. The change is required
when the need to change occurs in the policy of the business, mission, structure of the
organization and target market. In contrast to operations, the change occurs when there
is a need to change in the process of work, job rules and reporting structure (Jones,
2015).
The changes in the business of Asda and Waitrose with the effect on their operations
and strategies are as follows:
According to the current scenario, the external environment of Asda is in trouble and the
standards of living in the UK are reduced by the economic crises and also reduces the
disposable income of the target markets of Asda. The benefit for Asda is that it
produces low-cost products which altered the buying behaviour of the customers
(Jones, 2015). The operation management of Asda includes information technology
such as the devices to collect the data information of the store and the supply chain
management which facilitates and distributes the products gets impacted by the
change. The employees of the company adopted the changes and policies related to
changes (Jones, 2015).
The Waitrose followed the strategy of targeting the market with a wide range of fresh
and quality products to the customers. The change in the customers taste affect the
Waitrose and the company start putting more emphasis on the healthy and organic food
products with fresh quality (Jones, 2015). The change in the operations includes the
advancement of the technologies which impact on the business of Waitrose and for

accepting the change, the company start using the latest technology for offering the
online good cost-effective services to the customers. The employees of the company
adopted the change and work effectively for implementing the change in the strategies
and operations.
Figure 1 BOHNER AND THE ARNOLD CHANGE MODEL
(Source Jones, 2015)
This model is used for identifying the change and the impact of change as well as the
required modification for the accomplishment of the changes. Asda and Waitrose have
identified the scope of the changes and implemented the changes needed in the
organization and also measured the impact of the changes (Jones, 2015). The step was
taken by the Asda and Waitrose for the application of analyzing the change and to
implement the change, this model of change implemented successfully on the strategy
and operations of the companies (Jones, 2015).

M1. DRIVERS FOR CHANGE AND THE TYPES OF ORGANIZATIONAL
CHANGE THEY HAVE AFFECTED
There are some other types of changes in Asda and Waitrose which also affect their
business. The different drivers which affected the different types of organizational
changes are:
Internal environment
The internal factors are the assets of the company which are cultivated for the company
culture of success and hard work as the standards. The internal environment of the
companies gets affected by the changes happens within the organization due to internal
factors (Zinovieva et al., 2016).
SWOT ANALYSIS of ASDA
Strengths Weaknesses
 Asda has varieties of products
includes financial services
 It connects with its customers
through servicing online
 It is responsible socially by
Corporate Social Responsibility
initiatives
 It has limited global presence as
compared to the few competitors
 The ability to sell products on less
cost has restricted their entry in a
few markets
 Fear of competition with the local
vendors
Opportunities Threats
 The company can expand in new
areas of jewellery, pharmacies and
photo department
 Acquisition with small companies
helps in growth of Asda
 Venturing into the growing markets
like China, India etc.
 The company faces a price war with
the other chain of retail brands
 Change in policies of the central
government
 Pressure to maintain low rate can
limit of Asda (Zinovieva et al., 2016)

SWOT ANALYSIS of WAITROSE
Strengths Weaknesses
 Market share in the UK over 300+
stores
 It is sponsoring a cricket team to
build up brand identity
 Advertising efforts are famous
among the country people
 Competition in price so has lesser
margins
 Social media reaction regarding
publishing an article of Waitrose
kitchen (Zinovieva et al., 2016)
Opportunities Threats
 The success of the company's white
based packaging
 To gain more market shares in
coming time
 Building a rich image and expand
into the markets (Zinovieva et al.,
2016)
 Lagging behind the local and global
competition
 In the UK situation of the poor
economy can hurt the company
 Increasing competition from
websites of e-commerce business
External environment
The external factors are the factors which impact the company such as political, social,
legal, economic, environmental and technological changes (Zinovieva et al., 2016). The
companies get affected by the external factors are analyzed below:
PESTEL ANALYSIS of ASDA
Political factors Economic factors Social factors

The company gets impacted
by these factors such as EU
regulations, employment,
consumer rights, taxes,
legislation etc. (Zinovieva et
al., 2016)
The company considered
some economic factors of
cost credit, labour demand
and supply, competitive
pressures etc. effects on
change of Asda.
These include the ageing
population, health and
lifestyle, celebrity
following etc. effects on
change of Asda.
Technological factors Environmental factors Legal factors
The technology is growing
faster like the speed of
broadband and apps in
mobile influence the Asda in
changing the business
environment.
The factors like pollution,
green economy, hazardous
waste, organic food etc. are
the reasons for implementing
the change in the company
(Zinovieva et al., 2016).
The company follows the
laws, rules and
regulations of paying
employee equally and
inefficient manner.
PESTEL ANALYSIS of WAITROSE
Political factors Economic factors Social factors
The company gets affected
by the political factors like
the stability of the
government as the
permission was hard to get
of doing the business
outside.
It decides the development
of the company. The
customers loved the
company’s products due to
their availability and then
quality. They will not accept
the change.
The company includes
healthy eating products this
is the reason for buying
more products from the
customers. They will not
accept the change in the
company.
Technological factors Environmental factors Legal factors
The company has the
technological power as it is
already dealing online with
the customers (Zinovieva et
al., 2016).
The factors which impact
on the company are the
climate and the trend which
is dynamic in nature and
cannot be controlled by
The factors related to
employment law and
customer rights are to be
followed by the Waitrose in
adopting the change.

personal.

LO2
P2. EVALUATING THE WAYS OF INTERNAL AND EXTERNAL DRIVERS
AFFECT THE LEADERSHIP, INDIVIDUAL BEHAVIOUR AND TEAM
There are several drivers in the organization to change have affected on the individual
behaviour, team and leadership and these include 2 types of drivers for change:
INTERNAL DRIVERS TO CHANGE
These changes help Asda and Waitrose to increase the profit and these changes help
in modifying the system, structure and policies of the business which results in the
removal of the unwanted things (Král and Králová, 2016). The internal driving forces are
the things, events and the situations happened in the businesses which are under
control of the organization. The internal drivers are:
Technological capacity: It is an important aspect as it gives shape to the operations of
the business. Companies cannot run without modern technologies and the new
technologies obsolete the old one (Král and Králová, 2016).
Organizational culture: This is the systematic study of the attitude and behaviour of
the individual or group within a business. The businesses are risk taker also complete
their work effectively (Král and Králová, 2016). The production of the organization gets
negatively affected and to fight with the competitive world of business it is necessary to
build coordination with the employees to increase the business turnover.
Financial management: Money is the main factor of the business and there is a direct
relationship between the business and money. Financial management role is important
in every organization as it involves raw materials, proper fund distribution and
introduces new assets etc. so it is the powerful stand in the business (Král and Králová,
2016).