Understanding and Leading Change: Tesco's Strategies and Leadership

This report provides an in-depth analysis of change management within Tesco, focusing on both internal and external drivers of change and their impacts on organizational strategies. It evaluates how these drivers affect leadership, team, and individual behaviors within the organization, while also considering measures to minimize negative impacts. The report examines various barriers to change, applies force field analysis, and explores different leadership approaches to effectively manage change. Furthermore, it assesses the extent to which these leadership approaches can deliver organizational change and evaluates the effectiveness of various change management models, providing recommendations for successful change implementation within Tesco.

UNIT 17 UNDERSTANDING
AND LEADING CHANGE

Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY (LO1 & LO2)...........................................................................................................3
Introduction to the drivers and impacts of change also evaluating it affects organizational
strategy by giving different organizations examples..................................................................3
Evaluating the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organization.......................................................................7
Evaluating measures for minimizing negative impacts of change on organizational behaviour
by applying theories...................................................................................................................10
CONCLUSION .............................................................................................................................12
LO3 & LO 4...................................................................................................................................13
INTRODUCTION ........................................................................................................................13
DIFFERENT BARRIERS FOR CHANGE ..................................................................................13
FORCE FIELD ANALYSIS ........................................................................................................14
APPLICATION OF FORCE FIELD ANALYSIS IN MEETING OBJECTIVES ......................15
DIFFERENT LEADERSHIP APPROACHES TO DEAL WITH CHANGE .............................15
EXTENT TO WHICH LEADERSHIP APPROACH CAN DELIVER ORGANIZATIONAL
CHANGE.......................................................................................................................................16
EFFECTIVENESS OF LEADERSHIP APPROACHES AND CHANGE MANAGEMENT
MODEL ........................................................................................................................................18
CONCLUSION .............................................................................................................................18
REFERENCES .............................................................................................................................19

INTRODUCTION
Organisational changes are described as various actions and movements taking place
from one place to another. Changes in organization helps in retaining and encourages employees
for working better and developing skills for leading better opportunities which helps in
improving staff morale. Leading change in company helps in retaining and better functioning in
organization by taking initiative for achieving success. Tesco operating as multinational national
retailer Selling different food and non-food products to large consumers. Company is offering
wide range of product portfolio to various consumers including fresh food items also various
grocery and household appliances, electronics. The main objective of company is to serve large
consumers with good quality of food products with establishing cost leadership by offering low
cost products for establishing competitive advantage in dynamic market. This report provide
details about analysing drivers of change and its impact on organisational strategies. Also,
evaluating influences that drivers of change on organizational behaviour evaluating external and
internal drivers effect leadership and teams. Applying theories and models and critically
evaluating organizational response.
MAIN BODY (LO1 & LO2)
Introduction to the drivers and impacts of change also evaluating it affects organizational
strategy by giving different organizations examples
Organizational changes are described as the forces which is improving and strengthening
progress. Changes in organization helps in increasing productivity and also helps increasing
profits in business. Drivers of changes are mainly external and internal drives which impacts the
internal operation of business also impacts in changing the external behaviours of Tesco's
operating in dynamic environments. Various drivers of changes includes :
Shifting of cultures : This internal driver of change , As by establishing new enterprise
in new global countries, also shifting culture in company changes interrelate operations
employees affecting business. As changes into working culture impact the business operations
positive and negative (Alnuaimi and et.al., 2021). Changes in culture occurs due to various
factors as of technical changes, economic changes, various new interventions. Example: Asda
shifting culture as for establishing open communication and treating all employees working in
company in flexible manner. For this company is surrounding and providing various incentives

to employees working in company for increasing productivity and gifting cards by recognising
employee achievements. Thus, Shifting culture help company in retaining employees of Asda
and achieving competitive advantages over others as by providing flexible working culture helps
in performing more efficiently. As shifting in culture impacted employees motivation and
retaining practices in company because as working environment changes due to cultural changes
in big companies.
Demand of consumers: Consumer behaviours changes products and services offered to
consumers. It is and external driver of changes which mainly aids in describing about the
changes in consumers preferences and demand impact company as with the covid impacted and
changes consumer demand as with preferring more organic and preferable goods. As with
consuming more packaged and organic food products which are healthier and promoting heathy
lifestyles (Brand and et.al., 2021). Changing demand of consumers impacted and drives changes
in company as by changing sales patterns also impacted with adopting continuous changing
needs as for surviving into dynamic global marketplace. Example: Sainsbury is answering all
consumer demand by offering convenient shopping experience. As by establishing the stores all
over the world by enabling the consumer market for driving sales online and fast tracking
consumer purchases. Also, considering consumer demand ass for lowering prices of products by
cutting down various operational cost of the company. Also, achieving the micro convenience by
establishing stores and establishing online business whereas selling and more organic food
products and making more convenient by offering and distributing range of products with
distributors while shopping online form mobile phone. With the change in demand as for
purchasing the organic and healthier products adopting this demand by selling more recycle food
packaging products and focusing on healthier food products.
Technological innovation: As with technological innovation, with the advent of digital
technological environment with the rapid growth in techniques used with latest adopting
technology helps in changing shopping pattens of consumers (Ford and et.al., 2021). This is the
external driver of changes which results in by shifting form offline to online stores with adopting
the latest technological trend help in providing more convenient products with shopping online
easily just by using mobile apps and ordering from website of stores. Example: Tesco,
Operating online store by using websites helps in easily changing price of various product
offered to consumer and also offering products with customization with changing dates

information on addressing the latest website feature with adopting the technology. Thus,
technical innovation helps in changing various online also offline operation in Tesco company.
Strategy changes: Changes in strategy is considered as an internal driver of change in
various companies. As strategy changes as for changing and boosting competitiveness and
increasing market share in the dynamic market (Holtström, 2021). Forming various strategies as
for increasing profits and achieving more target market changes the internal operating and
working pattens for achieving objectives. Example : In Morrison changes occurs due to
adopting New card option strategy, card option is introduced for purchasing products from
supermarket stores. As any shoppers whose card is lost and damages, affecting its shopping
experience in Morrison. This current target schemes is adapted for giving five points and
vouchers to consumers for achieving competitive advantage and loyal consumers market for the
company.
Introduction of new products and services: Introducing new products and service into
market changes companies policies and strategy. As introducing new product in market is
external driver of changes, it is necessary as by considering various needs and wants of
consumers. New product helps in grasping new market share and support in targetting consumers
with offering new product ranges as for retaining consumers in target market (Frasquet, Ieva and
Ziliani, 2021). This changes various approaches and policies for distributing and marketing of
products in market. Example: Asda introducing new product store as by establishing new
sustainability store for reducing plastic and opting greener options for providing sustainability
services. As by encouraging consumer for not paying for purchasing greener options. The main
aim of establishing and introducing sustainability store helps in reducing plastic usage by
packaging and protecting the planet. Also, reducing the plastic pollution with adopting various
innovative approaches help in scheduling and shifting from single usage of plastics with
adopting more organic food and recyclable packaging products.
Growth opportunities: Growth opportunities is considered as main external driver of
changes in company. As various new opportunities available in market place as for achieving
and growing business operation's. As for introducing of new product and operating into new
market operations the growth opportunities available for company impact and influence to
change its internal policies for growing and achieving success into dynamic marketplace (Khan,
2021). Example: Morrison is expanding its market by adapting various growth opportunities to

grow market share in business. As by partnering with the Ocado, for grasping significant
opportunities as for offering various online food products for improving the customer insights
and growing target area. Also partnering with wholesalers as with amazon as for meeting target
turnover of company by grasping and targeting amazon consumers for improving shopping
experience by providing home delivery of various products to consumer. Thus, by partnering
helps in grasping various growth opportunities for company and helps in changing the operations
by satisfying consumers of both existing and partnering company.
Internal driver of change  Shifting of culture
 Strategy changes
External driver of change
 Growth opportunities
 Introduction of new products and
services
 Technological innovation
 Demand of consumers
The main internal driver of change are as follows : The shifting of culture and the change
in strategy and policies of the company impacts the leadership and teams and individual
behaviour. The culture followed in the Tesco impacts the leadership behaviour which influences
the employee’s behaviour for working and serving the company for achieving the objectives. As
changes in the culture impacts and influence the behaviour , as the leaders of the company
mainly shapes the business practices which mainly moulds the attitude of team members for
achieving the Tesco's aims. Also the changes in the strategy impacts the leader and employees
working because these changes aids in providing the vision and directs the employees for
acquiring the new achievements.
Recommendation:
 As adopting and planning for changes is necessary in for this different organization must
plan and devise policies for implementing changes successfully in company.
 Motivating employees and educating properly for adopting changes in company helps in
increasing productivity and engaging employees for accepting changes in fruitful manner.

 Creating roadmap by being transparent and adopting various actions by clearly defining
change helps in determining impacts and changes in business. Training employees
working in company for adopting various changes .
 Planning and identifying need for changes as for improving and achieving competitive
advantages in operating supermarket.
 Providing training to employees working and helps in mastering various skills and
abilities helps in adapting changes in Tesco.
Evaluating the ways in which internal and external drivers of change affect leadership, team and
individual behaviours within an organization
Internal analysis by using swot model and external analysis by using pestle model helps
in evaluating the drivers of changes which impacts company leadership and team behaviours
consisting in company while operating business.
SWOT ANALYSIS
Strengths
 The Tesco's is recognized as biggest
grocery store having efficient supplier
and operating as the highest market
share globally.
 Diversified business into many
countries operating with multiple
cultures and supplying products in
large consumers in global markets.
 Using advanced packaging techniques
differentiation the competitors helps in
achieving competitive advantages.
 Focusing on digital market strategy
helps in marketing and achieving
competitive advantage to Tesco (SWOT
Analysis of TESCO, 2022).
Weakness
 Legal laws and various switching from
club card option impact and change
company policies.
 Operating with low cost leadership
strategy aids in providing various
product at low cost with minimizing
and less earning profit for Tesco's.
 Selling lower quality of food products
as for maintaining low prices aids in
reducing target market and loyal
consumers.
 Selling unsafe and shortage of products
is leading company by reducing the
prices also shortage of food products
due to restriction of Brexit impact
company and drives changes.

Opportunities
 Adopting new technical ways as for
producing and packaging food products
in market helps in grasping
opportunities by adopting new
digitalizing techniques for providing
convenient food products by offering
online at Tesco website.
 Investing into new emerging markets
helps in expanding target market and
increased profits of company.
 Expanding Tesco stores by venturing
and partnerships with other companies
and in other countries helps in grasping
and growing business.
 Adopting and introducing new range of
products as of vegetarian and adopting
suitable and unique packing aid in
changing strategies of Tesco and
recognised as driver of changes.
Threats
 Various competitors of impacts Tesco
supermarkets and its market share by
providing similar products to large
consumers.
 Brexit deal impacted business as major
imports from EU restriction impacted
various fresh food selling products and
leads towards shortages food products.
 Political rules and regulations as of
restriction due to Brexit impacts
company operations as for operating
business online due to covid and
taxation policies changes and reduces
profits and revenues of Tesco.
PEST ANALYSIS
Political factors
Various rules and regulations by government impacting the company. Taxing rates,
political instability environment, also import duties and producing various goods with complying
the safety and security of various food products aids in recognizing as driver of change. As due
to Brexit various restriction on importing of goods from the EU aids in changing the companies
polices and various strategies by operating with new regulations and importing duties. Also,
offering safety products changes Tesco policies and various rules for adopting and operating
with all safety regulations as for producing and providing various products to large consumers.

Thus, level of political stability and riles and regulations impacts internal policies of Tesco
related to production and distribution of various food products in dynamic market.
Economic factors
Various economic factors impact company and aid in recognizing as driver of changes.
The covid pandemic impacted business as resulted on shifting form offline to online store as for
supplying goods to large consumers as for sustaining into the pandemic market. Also, expanding
market of the Tesco impacts and influenced for adopting as driver of changes. Company is
expanding its market as for achieving and growing business in global market. As various
taxation policies as for expanding its market operations into the other global countries impacts
tesco revenues earning capacity and internal operation (PESTLE Analysis of TESCO, 2022). As
various changes in policy at economic level impact and regarded as external driver of changes
for Tesco.
Social factors
Social factors impacting Tesco operations are recognized as driver of changes. Various
consumer trends and preferences impact company production operations in market. Also, various
local and social preferences impacts the company as vegan trend of consuming the vegetarian
and purchasing more sustainable products from the supermarkets. Furthermore, of consuming
more plant based products is recognized as driver of change. Also, various employment
opportunities and level of labour market available for Working in company impacts the day to
day operations of business. Which is impacting Tesco various strategies and policies for
sustaining into the current market.
Technological factors
Recent technological advancement as for shifting the offline to online store by making
more convenient purchases for consumer impacted tesco. Using technology as for producing
consumer goods and adopting various new methods of payment, also by adopting online
payments and adopting various new barcode options with new scanning systems. As transferring
offline stores as e-commerce platform for supplying during pandemic impacts the Tesco.
Furthermore, as for transferring business online is the main driver of changes in company which
has impacted the whole business by shifting from offline to online stores. Also, the cash less
billing options help in saving time and helps in reducing queuing line in supermarket. So various
new technical adopting drives changes in business as by adopting scan as you shop in the

company helps consumers in quickly purchasing and saving time for standing in queuing line for
billing.
Effect on leadership and team behaviour:
Various changes in the company as of political changes, technical changes, also
economical nd social changes impact leadership and various team of individual working in
company. As leaders play important role in managing changes in Tesco. As by creating mission,
vision and objectives for achieving and attaining profits the main role of leaders is for guiding
business operation. The leaders in company effectively communicate and managing changes
effectively in company. As all internal and external drivers of changes impact the leadership, as
leaders in tesco helps in engaging and guiding employees for adapting changes effective. As
leadership of Tesco is affected by political factors as of employees expecting transparency from
leaders as for communicating and positively working in company (Tate and et.al ., 2022). Also,
the decision-making procedures impacts employees working in team with other team members.
Furthermore, with various rules and regulations changes and with increasing into competition
level in the economy impacts leadership as it requires advancements and quick developments for
bossing and achieving primary goals with enhancing productivity and workforce planning.
Furthermore, with expanding supermarket stores of Tesco globally and working with all
diversifies worked in company, leader are impacted as for adopting the diversifying procedures
and adopting decision-making processes with considering culture, mission and vision of
company. Also, accepting various level of individuals and team members opinions by taking
decisions of business. Furthermore, managing new cultures, technologically adaptions, new
taxation policies and various other changes impact leaders in taking various decision of Tesco.
Evaluating measures for minimizing negative impacts of change on organizational behaviour by
applying theories
Adopting various measures as for minimizing negative impact of changes on
organizational behaviour in company are as follows:
Clearly defining the changes with aligning business goal : As by clearly defining goals
to employees and defining changes to employees helps in mitigating negative impacts on the
behaviour. As by adopting this helps in changing and improving behaviour of workers because it
aids in better understanding goals and helps in adopting change in positive manner. Furthermore,
this leads to positive impact by resulting in adopting changes easily in Tesco's.

Communication openly with all employees: Communicating openly with employees
helps in adopting changes and mitigating negative impacts on the behaviour of various
individuals. Also, by developing communication strategy helps in reducing negative impact of
changes on employees working in company. As various drivers of changes on working methods,
for this management mus communicate openly to all employees as by defining the impact of
changes in workplace (Siders, 2019). As for instance changing culture and adopting the latest
technology helps in gaining better competitive advantage to business. Thus, by adopting and
developing proper communication channel in Tesco helps to achieve and adopting changes by
employees and aid In moulding behaviour of employees for adopting changes in positive
manner.
Training employees : Training employees for adopting changes inTesco helps in
adapting occurrence by acquiring various skills and abilities for working in company. As training
employees support personnels and changes behaviours (Pathiranage, 2019). As by continuing
learning and training employees helps in adopting changes and moulding behaviour supports in
learning and accommodating various cultures, in positive manner as by improving skills and
working methods.
Implementing supportive structure and culture: Implementing supportive structure
helps in moulding and changing behaviours of employees. As it aid in supporting employees by
building more proficiency and technical skills as for working in tesco. Restructuring Tesco aid in
supporting employees for adopting changes in positive manner (Hurdubei and Profiroiu, 2019.).
Proper mentoring employees for adapting changes supports in moulding behaviour and reducing
negative impact to changes in company.
Team working and adaptiveness to change: As by encouraging team working in
company and adaptiveness helps in adjusting changes easily. Moreover, adaptiveness and team
working ability gives positive impact and motivates employees for working better by positively
adopting changes as by establishing positive working environment.
Furthermore, by using Stage theory by Kurt Lewin, this theory helps in adapting and
taking various steps for adopting changes by responding with positive manner. This theory is
based on main idea as company passes with series of steps with adopting changes. The main four
steps of adopting changes in Tesco comprises as firstly, awareness of problems and possible
solutions. As by being aware of problems and changes in company and finding possible solutions

helps in moulding and adopting change in positive manner. Further, by implementing changes as
by redefining problems and innovation or changes in company also accommodating proper
structure for adapting changes and moulding behaviour. The last step explains about the changes
are part of organization and helps in innovating and achieving success with operating into
dynamic surroundings. Thus, by applying this theory helps in moulding behaviour by
understanding changes as it is essential part for achieving success for operating in dynamic
surroundings.
CONCLUSION
From the above report it can be concluded that changes in environment affects company
operation as of internally and externally. For sustaining into current competitive environment
adopting changes existing into the external and internal environment as for growing the business
is necessary. Tesco operating as multinational retailer serving large number of consumers in
dynamic environment by establishing store offline and online with using websites. Various
drivers of changes are compromising of changes due to culture, demand technological changes,
consumer demands, various new growth opportunities also introducing new product and services
in market changes various different organizational strategies and approaches and working
methods for producing and manufacturing the products. Also, with swot and pestle analysis aids
in impacting the company’s operations. Also, adopting various measures for minimizing the
engage impacts of organizational changes.