Unit 17: Understanding and Leading Change - Tesco Case Study

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Unit 17– Understanding and
Leading Change

Table of Contents
Introduction......................................................................................................................................3
PART 1............................................................................................................................................4
LO1 Compare ways in which change impacts on an organisation’s strategy and operations.....4
LO2 Evaluate the influences that drivers of change have on organisational behavior................4
PART 2............................................................................................................................................5
LO3 Determine how barriers to change influence leadership decision making................................5
LO4 Apply a range of leadership approaches to a change initiative................................................5
Conclusion:......................................................................................................................................5
References:......................................................................................................................................5

Introduction
Understanding and the process of leading changes includes the strategies that prepared the
participants to handles the issues and implementing changes according to the issues. The process
included the factors that examine the changes and organizational and political issues that created
issues in the Business organization. Tesco is the multinational organization of UK that is the
leading organization in the grocery and other shopping products. The organization includes an
effective organizational structure that introduced employee training and low-cost productivity to
enhance the productivity of Tesco. Pest analysis discussed the factor that affected the influence
of the business and identified the features which provide more opportunities for the Tesco in the
foreign marketplace. Team behavior and leadership style are the strategies that contained the
potential to gain the objective of the company with an effective and smooth way. The analysis of
force field discussed applications that support the changes and the competition of the
marketplace.

PART 1
LO1 Compare ways in which change impacts on an organisation’s strategy and operations
LO2 Evaluate the influences that drivers of change have on organisational behavior
Introduction
The report contains the impact and drivers of changes that affected the working of an
organization. The Overview of large organization Tesco described the effect of changes with
detailed knowledge. The factors like political, environmental and social are analyses to
understanding the changes in the operation and strategy that is used for the marketing. The report
also discussed the effective leadership that enhanced the working of the company and
implemented friendly and skilled employment for organization growth.
Impact of changes
The changes have affected the development of the organization in the term of extending the
business and capacities for growing performance in the future market. The drivers are external
and internal that support the changes in the Tesco or any organization.
External changes: The drivers included the condition, events, and factors which affected the
factors like environmental, economic, legal and technical factors. The market competition and
need of target market are also the external drives of business changes. External drives have
contained the requirement and taste of the user, the scope of the investor, the policies and laws of
local government and the new market competitors.
Internal drivers: internal change includes situations and environment that affected the working of
organization and workplace of the company. The divers are related to the new ideas and
marketing strategy of company to handle the competition in the market. The drivers are provided
with more new ideas and strategies that implemented organization growth relative design
(Dahlmann, et al., 2019).
The drives and changes influenced the working of the organization and provide more
opportunities for the business extension. For improving the market of the organization includes

new ideas that enhance the organization productivity in the local and global marketplace.
External and internal drivers are produced new ways to enhance the market and skilled
employees for quality manufacturing (Mak, & Chang, 2019).
Tesco
Tesco company is the multination organization of UK that is established as the high supermarket
in London. Organization includes low-cost supply and manufacturing to enhance organizational
productivity. The organization includes the functional decisions and need of users for the benefit
of company. Tesco applied the driver of change to include an effective marketing design to
developed the business. Tesco included the strategy to retain the customers that improve the
number of customers by including the approach of self-evaluation and new ideas of attraction.
The company work on the need for market and change the technique according to the demand of
marketplace to improve the efficiency of the service. The effective competitive strategy and low-
cost labor with the skilled program created an effective team that handles the pressure of the
market and included new ideas for the effective marketing (Ahmadi, et al., 2019).
Tesco includes organizational changes like identification of actions and resources that improve
the efficiency of the organization. and determined the leadership for the controlled team
management. The analysis of Tesco identified the changes in the management goals that are
included the cost-effective product, high sales of products and enhance the satisfaction of the
customers.
PEST analysis
The analysis includes the factors mentioned below for the understanding of the drivers in change.
Political factors: the political factors affected the business of organization. Improvement in the
numbers of factors related to political instability influenced the market of organization in the
global and domestic market. Government policies and political legislation are the factors which
generally affects the market of Tesco in the foreign market place.
Social factors: the taste of different market, family lifestyle and the norms and believes are
needed to include in the productivity of the Tesco. The factors enhance the value of Tesco and
provide a market for the global business.

Economic: the rate of taxes and interest are the factors that affected the investment of the
company against the outcome. The level of income and employment skills are the factors that
influence the economic growth of the company. Tesco applied effective programs to enhance the
skill of staff and seminar that identified the potential of employees that needed for the company
growth.
Technological analysis: Tesco includes online marketing and feedback for the productivity for
the manufacturing of the organization that introduced high customer satisfaction for the company
products. The changes include skilled employees and effective transportation for organizational
growth (Desai, 2019).
SWOT analysis
Strength:
Tesco won numerous awards for the excellence retailing and customer satisfaction. The company
includes the cost-effective production and global recognition for the company strength.
Weakness:
The latest credit crisis and low-profit margin affect the company profit. The low buying
productivity and high investment for the revenue are the main weak factors of the Taco that
influence work of company.
Opportunities:
Local employees and online shopping sites are factors that provide more opportunities to Tesco
and established the organization as a global and multinational organization.
Threats:
The economic Recessions are reduced the number of purchasing and customers. The competitive
market threads also improve the cost of supply that enhanced the cost of production (Saeidi, et
al., 2019).
Organization changes and the effect of changes in the organization
The changes are required for the transition of organization form the current stage to the effective
future. The organizational changes included the implementation and planning for minimizing the

resistance of employees and enhanced the changing effort. The organization changes contain the
area of leadership and team management that build a growing business design for company. The
changes are included in the current marketing strategy of Tesco, Future vison for company
growth and the setting of new opportunities with the current business design.
According to the analysis of Tesco, the effect of organizational changes is identified in the term
of quality understanding of issues that affected the productivity and return of the company. The
organization changes provided effective leadership and decision making that handled the issue of
the organization and effectively managed the value of Tesco. The Human resource team provides
quality and skilled training for the current employees for the future vision of Tesco and appoint
new employees according to the qualification that is essential for the post. Tesco provides
education and employees communicate with the customers and the higher management that
affected the workplace and supports the organizational changes in a positive way (Lundgren‐
Resenterra, & Kahn, 2019).
The organization changes affected the individuals, team behavior and leadership style of the
company.
Individual changes: The changes affect the understanding of individual that provides effective
changes for the company vision. The individual changing style includes motivation theory and
effective communication to support the changes in the organization. The individual has the
potential to accept the changes and skill that included the changes for the company benefit.
Changes are demonstrating the ability of individual for the growth of company and the
knowledge to handle the barrier of the company.
Leadership: The changes are required a quality leadership that motivate the staff for the changes
and managed the member of company. Leadership accept the change with the positive and
motivate the staff for the changes and includes the strategy that reduced any doubts of employees
and provided satisfaction regarding the organization growth.
Team behavior: Changes have influenced the behavior of team so the team leader needed to
create communication among the staff to support the changes. The changes are required more
potential so the team required training and communication to support the changes. The effective

communication and team relation are required for the future vision and support the goal of
organization (Mao, et al., 2019).
The McKinney 7S model provides the appropriate design for the changes in the strategies. The
model includes the Stages like: Effective framework for the business plan and includes
developed structure. The model analyzed the system of company and provides the factors of
company value. The model also discussed the style of business and the number of workforces in
the organization. The skills of the staff are also essential for business growth.
Kotter management theory: the theory is providing an effective plan for changes in marketing.
The theory includes the effective team and vision-based goal for the company growth. The
theory may contain strong communication and focused team for achieving the goal of the
company. The theory provided the potential and motivation for high performance and provides
incorporate changes (Kim, et al., 2019).
Conclusion:
The report described the information related to the changes that are required for the effective
organizational structure. Tesco includes the customer satisfaction and skilled program to
motivate the team and support the organizational changes for the clear vision. The changes affect
the leadership and team behavior that wants to support the changes for company growth. The
model and theory include design the business plan for the company growth and includes the
changes in a positive way.

PART 2
LO3 Determine how barriers to change influence leadership decision making.
LO4 Apply a range of leadership approaches to a change initiative
Introduction:
Tesco is a leading organization in the field of retailing products and grocery. The leadership is
responsible for the growth of Tesco. Tesco transformation guarantees for their leadership that
making an effective decision for the organization growth. The changes are needed strong
leadership that supports the vision of the company and provides employee satisfaction. The
barrier includes the resistance of employees and issue related to their job security. Tesco
organization effectively managed the changes in the organization and introduced appropriated
leadership to includes improved decision making.
Force field analysis:
The model ensures the business responds for the strategic management of the project. It included
the result of changes for performance and objective achievement. The model provided more
alternative to developed a clear goal for the organization. The model designed effective strategy
to handle the barrier of opposition and includes more opportunities.
The model investigates balance sheet of the company and identified the issues and also
determined the issues related to the stakeholders. The model provides the influence of target and
also discussed the opposition market plan for effective marketing. The model discussed the
understanding of the better marketplace and measured the performance of company. Higher cost
products and greater competition need development of a business plan that includes new ideas
and advertisement to control the competition of market. The analysis of model has described the
low communication and less information is introduced barrier for business growth. The model
identified the issue of fear and low communication in the company that affected the company
business (Baka, et al., 2019).

The force field model explained the requirement of changes and provided proper information for
the sources needed for supporting the changes in the organization. The model provides
knowledge about the factors that are caused by the failure of the initiatives. For the support of
changes, the model described the solution that includes strong team management and created
employee’s relation. The main feature for support the changes contained the staff training and
negotiate the support of staff. The analysis provides the strong factors that support the changes
with the better future of the organization and reduced the risk of failure in the company.
The model includes the stages for analysis that are like Defined changes and record the forces to
improve the opposition. The model evaluates the changes and reviewed them with the
appropriate strategy. And the last step of the model is including the action for supporting the
changes in the company.
Kotter’s 8 models:
The model includes the urgency of sense and created a strong team that guided the employee for
powerful business guidance. The model develops a clear vision for the company goal and
increased the sale of the organization. The next stage of the model provides proper action to
creating short wins. The model provided a strategy for effective motivation and includes changes
in the company (Das, 2019).
Tesco includes the model for the growth of the organization and includes the changes for the
future vision. The organization identifies the threats of organization and opportunities that
enhance the company business. Tesco builds effective leadership that introduced strong
communication among the staff to develop a goal for the organization. Tesco includes the
effective employees’ skills and organizational structure that provides support for the changes
with the organizational structure.
Lewin’s change model:
The model is focused on the modification on the people taste according to the taste and need of
the customer requirement. The model is based on the stages of understanding the emotional and
experience of existing customer and apply changes according to the analysis. The model focused
on communication and relation with old customers to enhance quality. The next stage of the

model has implemented the changes in the growth of the organization. The last stage of the
model is modifying the changes according to the further requirement.
Tesco analyses the need of customer and includes the doorstep delivery with the expected time
and introduced extra benefits for the customer to enhance the communication with the customers
that created strong communication. Tesco also provides training to staff to improve the
efficiency of the company growth (Fuller, 2019).
Different barriers:
The organization faced the various barriers in the organization like the lack of involvement of
employees in the organization. The employees are always having the fear of performance and
changes. The other barrier like less effective communication skills and customer relationship is
the cause of low performance. Unhealthy workplace and bad planning of culture-shifting are the
barriers faced by the organization.
To overcome the issues of barrier Tesco introduced changes with the organization structure of
the company. CEO provides skill seminar and training to improve communication among the
employees and enhance the ability of the employees. The organization includes Leadership that
engaged the employees and create a strong relationship among them. Tesco introduced effective
communication and teamwork to provide customer satisfaction and includes the individual’s
ideas for company growth (Moswela, & Kgosidialwa, 2019).
The barriers have affected the working of company and need to accept the changes for the
effective working of the organization. The poor changes management is enhanced the wasted of
time, miss opportunities and faced the issues of staff morale. The barrier is influenced the
decision making. Leader introduced a program to enhance the communication and provided
different task to improve the relation of the employees and motivate them for the changes.
The autocratic leadership approach discussed the style that focused on the individual in this
approach individuals make decision for the organization. For example, of Tesco, the CEO
provides the decision for the skilled employee's programs and cost of the service. The
transformation leadership established confidence and motivation for the employees to achieve
the objective of company.

HBSC organizations provide a free working environment for the employee to effective service.
The organization includes the ideas of each member to improve the management of organization.
The company includes the transformation leadership in which the CEO takes the management
command and provides motivation for employees to work with the changes and achieve the goals
(Boland, et al., 2019).
The effective leadership approach includes effective decision making that applied the changes
with the appropriate way for quality service. The leadership approach enhances the team
communication and relation of staff for organizational growth. The leadership style reduced the
fear of employees and motivate them for their work.
Advantage of Leadership style:
The leadership style manages the crisis in the organization and effectively controlled less
effective communication and unexpected violence. The leadership analysis the performance of
individual and motivate them for their quality work
Tesco includes the extra benefit program and skill training for efficient quality and enhances the
performance of the company (Curry, & Holter, 2019).
Disadvantage of leadership:
The frequent changes in the workplace and policies make the employees fear and confused about
their job security. The autocratic leadership is based on individual decision that some time the
cause of decision failure.
The Shell organization faced the issue of financial crisis due to the autocratic leadership and get
lost in the investment (Salisbury, et al., 2019).
Conclusion: the report includes the analysis of force field for the changes and supported the
organizational changes for effective company growth. The knowledge of barrier and the strong
relation and decision making reduced the barrier. Different leadership approaches are discussed
with the advantage of disadvantage of it. Leadership style supports the communication of staff
for reducing the stress of employees and includes motivation for the staff.