Analysis of Change Management and Leadership at Tesco (Module Report)

This report provides a comprehensive analysis of change management and leadership within Tesco, a major UK retail company. It begins by comparing Tesco's organizational changes to those of Aldi, focusing on technology, structural adjustments, cultural shifts, and strategic realignments. The report then delves into the internal and external factors, using SWOT and PESTLE analyses, that influence leadership, team dynamics, and individual behavior within the organization. It explores the strengths, weaknesses, opportunities, and threats facing Tesco, as well as the political, economic, social, technological, environmental, and legislative factors impacting its operations. Furthermore, the report examines measures to mitigate the negative effects of change, identifies various barriers to change and their impact on leadership decision-making, and concludes by evaluating leadership approaches to manage change effectively. The analysis provides insights into Tesco's strategies for adapting to a dynamic environment and maintaining its competitive edge in the retail industry.

Understanding and
Leading Change

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations...............................................................................3
P2 Evaluation of internal and external factors that affect leadership, team and behaviour of
individual................................................................................................................................5
P3 Measures that can be taken to reduce negative effect of change on behaviour of
organisation............................................................................................................................8
P4 Various barriers to change and how they impact leadership decision making.................9
P5 Leadership Approach to manage change in the organisation..........................................11
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Every organisation and management team has to face lots of challenges to maintain
productivity and profitability of company. There are micro and macro environmental component
that affect decision and operations of company. Evaluation of these changes helps in establishing
long and short term goal of an organisation. The change management is the approach by which
company can identify need, how they influence and how to react towards environmental
changes. The chosen organisation in this report is Tesco. This is one of the largest competitive
company of UK that mainly deals in retail industry. It was established in 1991 by Jack Cohen.
They has expanded their business market and operations across worldwide. This report discuss
impact of change in organisation's strategy and operations. This also analysis internal and
external factors that influence individual or team leadership. It also evaluate measures for
negative impact on organisation behaviour. This report explain barriers and influence in
leadership style. It applies various model of leadership to deliver effective organisation change.
This will help in achieving mission and vision of a company.
TASK 1
P1 Compare different organisational examples where there has been an impact of change on an
organisation’s strategy and operations
Change plays major role in growth and development of company. It influence efficiency
and effectiveness of enterprise. In context of business change mainly refers to the process of
change in order for the implantation of development change to accomplish overall aim of
company. Most of the changes occurs in strategic, process, people, structural, planned as well as
emergent changes. These changes affect overall operations and performance of employee as well
as progress of company. This aids in achieving organisation goal at particular period of time.
Various enterprise executed these changes for improving culture and environment of industry
that automatically enhance profitability and productivity of company (Change management
strategies for leaders, 2019). Organisational change help in achieving benefits of competitive
advantages. It helps in identifying opportunity, where they are lacking and where they can
improve their performance. Through these changes company can improves their costumer base
(Al-Ali 2017). Here is the detail comparison of Tesco and Aldi's organisational change that
influence its operations and strategy.

Emergent Change Tesco Aldi
Technology The major technology change
of Tesco is online marketing.
They attract potential
costumer by using their own
mobile app. This is the major
change of Tesco in terms of
technology that improve
delivery system of its product
and services. Through online
portals and websites
consumer can purchase
product from their home at
their own convenience. This
increase costumer base of
company.
The major technology change
is faced by Aldi is online
marketing while promoting its
products like social media
marketing. It is essential to
enhance efficiency in its
operations (How to be a
successful manager, 2021). It
also influence performance of
company. They have to adopt
these changes in order to
increase costumer base. By
online or social media
marketing they can deliver its
product at affordable price in
short time.
Structural The structural change occur
in hierarchy structure and job
stricture. These changes
directly influence operations
and strategies of business.
This also influence efficiency
and effectiveness of company
in the market. This structural
change is very effective as
they provide suitable salary
package to their employee as
per their performance
Structural change in this
company is related with
command of administrative.
Top managers provides
information to middle
managers and middle
managers provide information
to lower mangers. This will
synchronise their efforts and
efficiency to attract potential
consumer
Culture Cultural change of Tesco is
effective as they value their
There cultural change of this
company involves

employee and costumer. They
support, recognised and
reward their employee that
puts greater efforts in
understanding the needs of
costumer. It enhance
employee and costumer
relations with
company.
development of individual
goal along with organisational
goal to achieve objective of
company. They follow lean
structure in order to improve
mutual respect within
employee and costumer. This
improve profitability of
industry.
Strategic The strategy change occurs
whew they introduce self
services to satisfy consumer
need and their experience. It
aids in maintaining
competitive advantage. This
increase revenue of company.
They focus on price strategy,
by delivering limited selected
product at low price. They
provide branded goods at
affordable price. This
improve efficiency in their
operations and generate more
revenue.
People Tesco delivers more value to
their employee and staff who
provide competitive benefit.
In Aldi they keep on regular
training secession so that
employee is most important
component who satisfy
demand of target audience.
Process They adopted just in time
process methodology that
eliminates waste metrical
and degrade cost operation.
It increase profitability of
company.
In Aldi company process of
business operation involves
lots of complexities so in
order to eliminate
complexities they focus on
simplified method of
business process.

P2 Evaluation of internal and external factors that affect leadership, team and behaviour
of individual.
The change driver facilitate change of shape in respect of internal or external pressure
within organisation. The changes combines of strategy, plan, goods, servives, design and
opaertions. Internal drivers or factors refers to things, situation or events which happen
within enterprise. These forces can be manage and controlled by industry itself. Where as
external drivers happen outside the enterprise. These drivers can not be controlled by
enterprise (Bolden, Gulati and Edwards, 2019). It affect the overall performance and
operations of company. Both the forces influence leadership, team and individual
behaviour in the industry. The internal factors can be identify and controlled by SWOT
Analysis where as external forces can identify and controlled by PESTLE Analysis. The
internal drivers of change also combines of staff, company culture, process, employee
expectations, change in climate situation etc that affect the performance as well as progress
of company. Example when staff or company culture change then it automatically affect
perspective of employee performance. Each staff has different background and has
different style of understanding any of operations.
SWOT Analysis- It combines of strength, weakness, opportunity and threat of company.
Through this model company can drive conclusion where it is in the position of strengthen or
weakness. It also aids organisation in identifying its opportunity or threat areas. This can
improve behaviour or performance of individual employee or team members (How to be a
successful manager, 2021). It also helps in decision making or developing strategies of company.
 Strength- Tesco holds biggest market share of UK, mainly dealing in retail segment.
They maintain dominator position in the market. In terms of financial ground, annual
report is in profitable situation. Even in pandemic time through online, they generate
maximum revenue from its competitors. They increase their delivery capacity through
online rather than in store purchase. The reason behind these strength is their effective
management and employees that adapt all the changes as per environment.
 Weakness- Company faces leadership change which was not an easy task for them to
manage online sale. They fail to carry off their quality control and disappoint their
costumer. They have to face shortage of goods due to its inefficient leadership style and

operations. They fail to manage inventory as their employee provide expiry date
products.
 Opportunity- The major opportunity grab by them is online presence. To prevent from
covid 19, people does not move out of their house. At that pandemic time they deliver
online products to their potential costumer for their convenience. Unemployment rate is
increasing day by day. Super market is one of the place that provide employment to
needy candidate (Bresciani, Ferraris and Del Giudice, 2018). Tesco hire skilled and
qualified candidate for their business and operations. The management team utilise AI
and machine learning in their operations to improves profitability and productivity of
company.
 Threat- The increase in competition level is the biggest threat of Tesco. Their
competitors join partnership and explore bigger market share collectively to compete.
Economic recession affect the purchasing power of buyers that automatically affect the
performance of company. The relation of UK-EU influence operation activities of
company (Clifton, 2017). They have to follow new rules and legislation in their process
like additional tariff, custom checks etc.
The strength of company are specific where as their weakness are common in this
industry. Therefore Tesco can take competitive benefit and improve its leadership and
management practices. To overcome from their challenges they started online grocery store to
attract more costumer.
PESTLE Analysis- It combines of political, economical, social, technological,
environmental, legislative factors. All of these are external factor that influence performance of
individual or team from outside the organisation. It is essential to analyse this model to modify
or upgrade the performance of industry.
 Political Factors- The political factor greatly influence productivity of their team
because it operates globally or worldwide. This consist of tax rate, course of legislation
and stability condition of company in which they operates their business activity. The
relation of political parties with company influence the performance of company
(Endrejat, Baumgarten and Kauffeld, 2017). Good relation with political parties generate
positive impact towards Tesco performance. This will aids in effective flow of operations
in the enterprise.

 Economical Factors- These factors play crucial role in the productivity of company as
these factors directly influence operation cost, demand and price of product. Company is
very attentive towards changes in taxation policy or other policy related with finance.
Due to decrease in income level of costumer, they mainly focus on promotional activities
of their products rather than branded product (Organisational change management, 2021).
This strategy provides positive growth towards company because they will target low to
premium costumer.
 Social Factors- The various changes in social trend handle by this company. They offer
varieties of non food items. The goods or services that are demand by their potential
costumer are based on their believe and perception of society condition. Society are
moving towards trend of organic goods or services (Escrig-Tena, and 2018). To adapt
these changes they are trying to develop the process of organic food or services as per the
demand of costumer. Company gets affected lot by these social factors but they try hard
to improve their services by providing organic product.
 Technological Factor- The up-gradation in technology brings benefits to enterprise.
Company invested huge amount of money in efficient energy project that aids in
achieving long term goal of management team along with goal of employee. They
execute self service system for convenience of potential costumer that also decrease cost
of labour. Impact of technological factors comes in favour of company as they develop
there own website and provide products to their costumer at their own convenience. This
technological advancement help company in increasing their potential costumer base.
 Environmental Factor- Company is very concern about environmental factors, they are
strictly committed to decrease their carbon waste. Through enhancing social conscience ,
they always try to decrease waste in their stores. They ensure safety and security of their
employee. This motivates employee and push their efforts in company betterment. Due
to pandemic company faces lots of health issues in their workforce. This affect
production and distribution process of company. To overcome this issue they practice
and follow all safety guidelines as per regulation of government.
 Legislative Factors- The legislation and policy of government influence performance of
industry in larger context. They have to practice all the legislation as per the government
law (Gentle and Clifton 2017). If they fail to implement changes as per law then they

have to be pay some penalties. Example- FOOD RETAILING COMMISSION imposed
practice that modify price and demand of suppliers payment. As per the changes
organisation decreases cost of the product that leads to the increase in their purchase.
So company must keep on evaluating and identifying these internal and external drivers
that influence performance of organisation and directly or indirectly affect the behaviour of
individual employee or management team. This will aids in rising efficiency and effectiveness of
entity. The internal and external drivers affect the performance or company in context of
leadership, team, and behaviour of Tesco. The leadership style gets affects by these internal
drivers along with team behaviour in order to achieve futuristic vision of the company.
P3 Measures that can be taken to reduce negative effect of change on behaviour of
organisation.
The biggest challenges or negative change faced by the Tesco is implementation of
transformational change in a successful manner. If organisational change is implemented poorly
then it will definitely affect the behaviour of employee or management team. The positive
change in Tesco aids in improving brand name and successfully gains competitive benefit.
Positive change is to provide value to their employee by training, education, promotion. Satisfied
employee delivers productive services to consumer. This can influence quality of work,
productivity, mental health and satisfaction of job (Hallinger, 2018). However there are various
measures to reduce negative impact of change in the behaviour of team members and employees
of Tesco. By applying this company minimised its negative effect.
Leadership- Change management is not an easy task, sometimes it leads to confusion in
management operations. Company outsource the change management from expert consultant, so
it is hard for them to understand employee or company culture. It is better to strengthen
manager's ability and skills of leadership rather than outsourcing expert consultant. Managers
have better understanding of employee capabilities and they can be accountable for their process.
They can clearly define roles and responsibility of individual and provide guidance in achieving
organisation goal. It will reduce negative impact of change on enterprise.
Advantage – This will provide appropriate guidance for successful implementation of
organisational change
Disadvantage – lack of confidence will leads towards inappropriate flow of direction towards
organisational change.

Set realistic time- Company want changes to implement as fast as possible, but in reality
it does not happen because work in reality have to go through from lots of process. Company
must prepare a road map as per resource and existing work capability of employee. So that
realistic goal set aids in enhancing performance of team members or employee. It motivates
employee to be more committed towards company betterment and eliminates negative influence
of change management.
Advantages- This will help Tesco in achieving long term goal on time due to realistic
predetermine time.
Disadvantage- There is no such as harm effect of this component that affect organisational and
leadership change.
Communication strategy- By developing strong communication channel within
employee and management will leads to proper flow of change management or information
within organisation (Kalendra and Cook, 2017). This system enhance operations of organisation
and productivity of company. This build strong relationship within enterprise and provide proper
direction to the company. This help in improving negative impact of change in industry.
Employee participation- Company must facilitate employee for participate in
organisation activity. Employee get frustrated with company due to lack of employee
engagement. Therefore company must ensure involvement of each employee in business
decision or change management so that employee get familiar with changing process.
Effective Training- Proper training among employee and management team reduce
negative impact of change on organisation behaviour. Through training employee will get proper
guidance and direction towards the change in organisation. If employee get influence by change
management they will not perform in appropriate manner and get frustrated. But training will
enhance skills and knowledge of employee.
Tesco adopted Kaizen model for continues development as well as for proactive effective
change of plan. as per this model some ongoing changes implemented for improvement of
business process. This model facilitates cooperation and commitment in order to top- down
changes so that company will achieve transformation. Apart from this Tesco uses Bruke litwen
model for successful implementation of effective as well as efficient change. This model ensures
changes that occurs in workplace and provide direction for continues flow of actions at several

level within organisation. This Bruke litwen model help them in improving efficiency and
effectiveness in the process of change.
P4 Various barriers to change and how they impact leadership decision making.
Barriers always generate gap in existing practice and this will automatically influence
leadership decision making within enterprise. Here are various barriers to change that
management or leadership face in production and productivity as well as implementing any
change within Tesco.
Lack of employee involvement- Sometimes employee set themselves into their comfort
zone, they started fear of change. Employee do not want to participate in the process of change.
They are not comfortable to adjust towards the new change or development in entity. Leaders
should make some efforts to introduce change in employee (Koontz,Weihrich and Cannice,
2020). Managers or leaders should ask view point of employee, this leads towards understanding
of employee perception. It makes employee to push them towards organisational change. Only
loyal employee try to resist the change. Industry must provide all the information or resources to
drive workers towards change so that they will try to come out of there comfort zone.
Lack of effective communication- Sometimes leaders and management team thought
after announcing change, employee will adjust according to the change or new development. But
in reality it is not that much easy task for them. This will impact overall decision making of
company. It is not an appropriate way of introducing change. Worker do not only necessity to
know about change they also need to know about affect and how they will adapt those changes in
their operations or process (Kouzes and Posner, 2019). So there is a need of effective
communication system between employee and leaders that provide appropriate information
which help in decision making.
Poor culture shift planning- Poor management and leadership has no proper idea of that
how change influence employee and their decision making. Poor planning team fail appropriate
decision in respect of employee perception. The overlook of employee work, capability, reason ,
perception act as barrier to change. That is why leaders or management should be attentive
towards critical thinking in decision making, it is essential to understand employee sentiments to
overcome from this barrier. It is the only method to avoid barrier, planning team have to
understand that company must pay attention towards employee feeling and sentiments.

Lack of current state- It is not easy for organisation to implement change management.
Before implementation of change management company should know about its current state. The
deficiency of current state idea act as barrier of change management. If management or
leadership introduce changes without assessment of current situation then change will turn into
failure implementation (Langford, Dougall, and Parkes, 2017). Sometime industry do not
analyse existing situation and introduce change in the hope. To overcome from this barrier
leaders or managers should go through program and analyse how effective change will impact in
decision making of long or short term goal.
Organisation complexity- Some times company started to create complex process in
planning of decision making, this will make complex for organisation in introducing change.
This will leads to complexities in system, process, product and in decision making. It act as a
barrier for industry and influence organisation behaviour. Employee found difficulties in
understanding change due to complexities. It is essential for enterprise to introduce skilful
methodology to handle complexities in organisation decision making. Industry can remove this
barrier by hiring qualified and skilful employee. However it is good for the company to introduce
some less complexities to organisation. Complex change must be introduced within organisation
as per the capabilities and skills of employee.
Managing multiple teams- Managing multiple team at same time is one of the difficult
task for company. Managers must implement changes according to the particular team members
capabilities (Lee, 2020). Each team has their own set of limitations and skill. It is not necessary
that multiple teams have same capability to adjust change or new development. Managing
different team is a bigger challenge for company.
Poor cross functional team work- Company has various inter department and they
perform different set of operations. The lack of cross functional teamwork leads towards barriers
in introducing change at each level of cross functional department. Leaders need to motivate and
push efforts of each functional department to remove this barrier.
Lack of senior management framework- Most of the time management itself get
threatened by change. They try to avoid implementation of change to rescue their position. This
blocked the flow of proper instructions. This leads towards confusion creation in an organisation.
Assuming easy implementation- Senior leaders or managers some times underestimate
the impact of change within enterprise. They do not prepare any layout for resource optimization