Understanding and Leading Change: A Case Study of Tesco's Strategies

This report provides an analysis of Tesco's change management strategies, focusing on the impact of organizational changes on strategy and operations. It uses PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors influencing Tesco. The report also assesses how drivers of change affect organizational behavior, examining internal and external changes, their impact on leadership, individual behavior, and measures to minimize negative impacts. Key changes like the introduction of self-checkout points and the closure of meat and fish counters are discussed. The report further explores barriers to change, such as lack of clarity, ineffective communication, and cultural barriers, and how these influence leadership decision-making. Various leadership approaches, including transformational leadership, are considered to manage changes effectively. The analysis incorporates models like Lewin's change management model and force field theory to provide a comprehensive understanding of Tesco's approach to change.

Understanding and leading
change

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Understanding and leading change help for prepare participants to meet the problems that
come with the initiating and implementing change. During the program, participants it helps for
examine change process on the basis of political, psychological and organizational issue they
generate (Merritt and Zhao, 2021). Present report based on Tesco, that is one of the largest
multinational chain of retailing business of groceries, accessories, electronics and clothing. Also,
the report will also put focus on the barriers to change and how it will influence the leadership in
the decision -making process. Lastly, the report will outline the different leadership approaches
that will help the firm to manage with certain changes in the most efficient manner in the future.
Moreover, these will be evaluated through applying various models so that proper delivery of
goods could take place and there is the effective change management.
MAIN BODY
Comparing ways through which changes impact organization strategy and its operations
Tesco is largest organisation which can be made several changes in order to use best
business strategy that might be developed for future working of business. Company follow the
latest trend and advancements in technologies which help business to implement certain changes
in order to focus more on long term continuity and growth of firm that could be assured. Then,
with the help of PESTLE analysis there are certain changes will be discussed which can occur in
organisation by considering all the factors.
PESTLE analysis
Political factors: All the factor are considered which can be affect in working business
on large scale as well as it is related to change in tax rates, new government norms and rules,
tariff rates, Brexit influences and much more. All the factor impact in working of business and
force them to bring new changes within organization (Brock, Kemp and Williams, 2022).
Economical factor: In this factor all the aspect are included which are related to demand
and supply, trade tariff, market expansion, economic recession etc. also it helps by affects the
working of any retail firm on large scale. Furthermore, analysing such factors which is important
for working of any retail firm on large scale as well as it is necessary to analyses by
understanding the dynamic environment.
Social factor- by considering all the changes in social pattern, behaviour, taste and
preferences that impact on revenue of company as well as it can be impact negative also. Also, in

context of Tesco such factors that had to be analysed in detail in order to consumer demand
might be fulfilled in order to help by assuring long term profit. Further, Tesco has identified
recently that customers are more inclined towards buying organic items (Bentham, 2018). Then,
it has started the news product line of organic food products which has maximum demand that
could be filled.
Technical factors: In order to identify the changes in technology that help by limited
production which help in order to assure maximum sales to public. Also, in Tesco technology are
updated on regular basis so that it can change by required for quickly within workplace without
thinking much about it.
Legal factors- There are different types of factors which are change on the basis of
following situation such as minimum wages, emergency leaves etc. that can effect working of
firm on large scale (Monte, 2021). For example, in Tesco it has been analysed that there are
exploitation of workers which are working by hard to achieve goals of firm. Thus, such kinds of
problems cans create negative impact on brand image of firm create ineffective within working
of firm.
Environmental factors- According to this factor it has been identified that it is necessary
to focus more on protect the environment so that it help for work for improving maximum
efficiency within working might be gained. Then, for the growing market changes it help
customer to demand and Tesco is make sure about all the factors which are monitored on regular
basis and following best strategies and working might be assured in long term.
Organisations Drivers of changes Impact on strategy Impact on operations
Tesco
Tesco is considered as
main driver in order to
change government rules,
quality and standards of
products, physical and
economic changes which
help in to become better
force for making different
plan on the basis of the
In order to find the impact
of strategy it has been
analysed that it help by
reducing the wastage in
order to become
sustainable by adopting
the best strategy and
adopted various changes
(Soegoto, 2021).
In order to consider the
changes it has been
identified that working
and operations can be
important part of
business which can
demand of customers
that can be met
accordingly. Thus, such

latest changes in order
getting more profit and
help to achieve goal of the
organisation.
kinds of problems cans
create negative impact
on brand image of firm
create ineffective within
working of firm.
Sainsbury
The responsibility of
changing in Sainsbury is
related to closing of fish
and meat product line on
the basis of demand that
has been drop on huge
scale. That is why people
who are looking for non-
veg food from sainsbury
were not able to buy that
kind of products (Mariam-
Fatima and Shalini,
2021).
All the changes seen in
sainsbury are mainly
impact on strategy that
effect not completed
change in distribution the
distribution strategy and
also proper costing plans
of the firm had also been
identified.
In order to analyse
impact of operation it
has been analysed that it
is 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
There are various drivers of change that could impact the firms operations on the large
scale. Also, such changes might create both positive and negative impact on the firm depending
upon the level of efficiency in firms operation and way of handling certain things in life.
Moreover, change within the firm could be seen in the form of changed equipments, new
technologies, changes in staff members, fluctuation in customer demands and services and
much more(Ali and Anwar, 2021). For instance: Recently within Tesco it was found out that
whole management team was focused in providing quality services to large number of
customers through installing new processes within the existing system so that more revenues

might be generated in the end. Moreover, change analysis had to be done in right way so that
better plan and policies might be developed for the future working of the firm. Also, below is
the detailed description of the change and its measures 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 within
the firm like
Tesco is due
to continuous
changes within
the demand of
variety of
products
(Tesco
announces major
change to how
many shoppers
pay for goods,
2022)
Moreover, the
firm has
brought the
new change
of opening the
self checkout
points that
would help the
The change
that is been
found within
the
organization
currently is
due to the
external driver
that has
impacted
working of the
firm in
negative
manner. Also,
due to the
pandemic
demand of the
products has
been fallen
short that has
impacted the
business on
This kind of
change had
impacted the
leadership and
working of the
firm as now
very less
supervision is
required to
monitor
various
activities
within the
workplace.
Also, through
creating the
self checkout
points the firm
needs to
worry less
about
supervising
For current
change within
Tesco like
introduction of
self checkout
points the
firm would be
requiring best
team that
would be
efficient
enough to
handle all
kinds of
customer
queries and
problems.
Moreover, the
company
needs to build
the strong
network that
The current
new change
within the firm
would help in
creating the
positive work
culture as each
individual
would be
motivated
enough to
perform best
for the
company
growth and
success.
Moreover, it
has been
explained to
employees that
they need to
be efficient
Adopting the
change within
the workplace
in positive
manner is very
much
important as it
would reduce
the level of
difficulties
within the
workplace.
Also, Tesco
current change
within the firm
would be
managed
through using
the Kurt
Lewin model
that focusses
on creating

firm to
generate more
revenues
large scale. the outlets
activities on
daily basis.
Thus, the
leadership
approach is
more
participative
rather than
autocratic.
would be
competent
enough to
handle all the
tasks in well-
defined
manner .
enough so that
all the
challenging
tasks are
completed
through
positive
approach
without
creating much
of resistance
and self-doubt
at any point of
time
better reward
systems within
the workplace
so that better
understanding
might be
provided to the
employees.
Also, this
model would
help the
employees to
remain
motivated in
achieving
certain goals
of the firm.
Also, the force
field theory
will also be
used so that all
kinds of
positive and
negative
forces that
impacts the
firm might be
identified and
better thing
could be
planned in the

future business
activities.
Thus, from the above that above table analysis it can be said that Tesco is the fastest
growing company and therefore it has adopted various techniques so that it is able to cope up
with various other changes in the most effective manner. Moreover, the company had adopted
the transformational leadership styles so that all the employees working at different levels are
able to understand main motive of the change and the estimated benefits it would provide to the
business in due course of time (Alqatawenah, 2018). 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
Change is important component for any business as it helps the company to stay
relevant in different markets. Also, the change within any organization is dependent on various
factors and therefore these can act as the barriers in effective decision-making within the
business (Dzwigol, Vinichenko and Vasiuta, 2019). For instance: In Tesco currently major
change that is been brought up is closure of various meat and fish outlets as they seem to be the
major loss making units after the pandemic. Moreover, some barriers to change are been briefly
described as follows:
Lack of clarity: This is one of major barrier to change is not having adequate clarity
about various things that are happening around the workplace. Moreover, these led to
assumptions that create more problems and conflicts within the workplace. Also, lack of clarity
is the major reason due to which decision-making power is weak and there is lot of the negative
outcomes of the changes that only create wastage of resources and unnecessary conflicts at the
workplace (Galli, 2018). For instance: If the self checkout points decision is been made within
the Tesco and there is lack of adequate clarity than it would simply means that there is some
kind of gap which would force the employees to wok in the independent manner rather than
working in collaborative approach.
Ineffective communication: This is also one of possible barrier of change that is found
within the firm where there are high problems of understanding among the people. Moreover,
due to lack of proper communication channels the firm would not be able to convey certain
important elements easily to people in daily routine working. Furthermore, in recent reports it

was analysed that Tesco was having bad employer employee relations at the workplace due to
the misinterpretation of certain information that is not good for working of the firm on large
level.
Cultural barrier: This is another barrier that would have caused the firm in creating
more of the conflicting opinions and huge problem in the end. Also, due to cultural differences
the company would not be able to develop the teamwork and ensure long term organizational
success in the future (Chavan and Bhattacharya, 2022). For example: If Tesco is operating on
large scale and in different regions than it is likely to happen that there are variety of job roles
and responsibilities of employees. Thus, having vast cultural differences the firm would not be
able to bring any kind of innovative processes within the workplace easily.
Lack of governance : It is also one of major barrier that does not allow the employees
to accept the change within the firm easily. Also, there is sought of competitive pressure among
the people that force them unwillingly carried out things against their own wishes. Moreover,
it is been reported that investment in change is very expensive and to some organization it
might sound very costly affair.
Thus, from the above it can be said that change management problems would be solved
through force field analysis that if any firm wants to bring change within the firm than it has
to analysis the four main elements such as the driving forces, restraining forces, forces of
change and resisting change. Furthermore, all such changes have to be analysed deeply by the
firm so that there are least possible chances that any change would create problems in the daily
working of the firm (Chiwawa, Wissink and Fox,2021). Also, through using force field analysis,
Tesco would be able to implement best techniques and make the efficient decisions for long
term working of the firm in different regions. Furthermore, in context of Tesco, company would
be able to identify negative forces in so that proper corrective action plans might be developed
in advance (Dumas and Beinecke, 2018). Also, based on the above analysis resisting forces
changing would include employees, lower level staffs, customers, supplier and much more in
the case of Tesco where there would be closure of various meat and fish outlets in the future.
Furthermore, driving forces of change would include growing competition within the market,
upcoming of new technologies, changes in demand the external environment and much more.
Hence, all such kind of barriers described and stated above could be reduced by the firm through
revising the existing policies, communicating the employees personally through conduct of

various interviews and developing the best feedback channels so that all the queries could be
addressed and doubts could be resolved in the most efficient manner.
Furthermore, the organization would be able to achieve the objectives when the barriers
of change are overcome within the firm through the positive approach. Also, it is duty of top
management to ensure that change within the firm is brought through the systematic approach
and not all of a sudden so that certain preventive measures might be taken on time to make
everyone happy within the firm (Gomes, 2020). Moreover, implementing change within the firm
is the group efforts and hence it is not individual task that could be achieved all of a sudden.
Also, the change needs to be implemented in best manner through identifying the barriers and
through planning the best strategies so that maximum risk could be avoided in due course of
time
Applying range of leadership approaches and model to have the change initiative
Leadership approaches are very much important as it helps the firm to achieve the greater
organizational success in short duration. Also, in context of Tesco it can be said that they need
to adopt the best leadership approaches so that better changes in the market could be coped up
with. Thus, below are some kind of leadership approaches that are explained in detail as follows:
Transformational leadership: It is one where the leaders used to bring some kind of
transformation within the existing workplace. Also, under this kind of leadership the manager
used to set the basic tasks and goals that is continuously monitored through planning best
supervision (Hendrikz and Engelbrecht, 2019). Moreover, this type of approach is been used to
inspire the team members to work in more collaborative manner and bring creative ideas at the
workplace. Thus, through this the company would be able to remain updated with different
market processes and systems.
Laissez- Faire approach: It is type of approach where leaders give the full right to
employees to participate in certain activities and share various ideas openly so that better
decision-making might be made. Furthermore, this method would help to motivate the
employees and allow in implement the change within the firm easily. Also, here under this
strategy the leader is used to create very relaxed culture so that more creative ideas could flow
within the business whenever required (Laig and Abocejo, 2021). Furthermore, this strategy is
helpful in time when any new product line or design had to be launched within the market by
Tesco.

Transactional leadership: this is type of leaderships that is been adopted by the firm so
that there is better workplace. Also, under this kind of leadership the firm the leaders rewards
the employees so that required motivation and satisfaction is been maintained. Further, the
employees would be able to grown in the market in the most efficient manner.
Thus, from the above leaderships styles the one that would be selected for this given
organization would be laissez- faire leadership approach as it would help the firm to move in
the right direction and remain competitive while carrying out the operations in different places.
Also, it is basically one of the style that would help Tesco to bring any kind of change within
the workplace in easier manner as employees would remain creative and innovative while
carrying out various operations.
Type of Change Current impact on the
company
Desired impact
Change in the complete
working policies and
procedures of the business
This change would help the
firm to look around the loop
holes within the workplace and
make improvement plan so
that work could be carried out
in smoother manner.
This change would help in
increasing the overall
productivity of the company
and its employees working
at different levels.
Model for implementing the change in Sainsbury: Kurt Lewin Model of change-
This model is been used so that better implementation and various changes within the
market could be identified easily. Furthermore, this model consists of three stages that are been
discussed as follows:
Unfreeze: This is the stage where the company would identify and look at various old
policies and procedures. Also, once identified the cited firm would unfreeze the old methods so
that new systems could be developed for the future working of the business.
Change: This is stage where the company would look actually bring the chge within the
firm based on the current requirements and needs of the firm. Furthermore, the change would
be brought either through introducing the new product line or through planning to bring the
innovative processes so that maximum venues might be generated in the future. Also, the
change would be brought through building new teams and developing the best reward systems
so that required level of motivation is been maintained (Muldoon, 2020). Also, the change had

to be implemented through using the best systems so that there are minimum amounts of
conflicts and more collaboration among the teams
Refreeze: this is last stage that is been followed within this model where the
implement the changes and refreeze the older ones if required. Thus, through following such
kind of approaches the company would be able to grow in most effective way. Moreover, this
method is usually followed when the company needs higher productivity within its workplace
and also requires that each work is carried out in best possible manner.
Thus, based on the above model it can be said that company needs to look at certain
activities that are taken place within the organization so that revised plans could be made and
the better opportunities might be grabbed to get success in target markets. Also, through
devising the best incentives and rewards programs the company would be able to provide
highest level of customer satisfaction and maintain good customer loyalty while carrying out
various business activities on regular basis (Roşca, 2020). Moreover, through better production
and growth units the company would be able to achieve the highest level of excellence and
allow employees to remain motivated so that future challenges are overcome through keeping
the positive approach.
CONCLUSION
It has been concluded that understanding and leading change on the of management
practice as well as it help for increasing the profitability with business. Report discussed on
Pestle and Swot analysis of Tesco and how it can be impact on strategy and operation of
company. Then, leadership approaches were discussed in order to consider the change model.
Also, barriers are understood in order to focus on implementing change in order to understand
the negative impact on business. Further, study elaborated several restraining and driving forces
which help company in order to implement change with follow restrict company in for making
changes in Tesco.

REFERENCES
Books and Journals
Ali, B. J. and Anwar, G., 2021. The mediation role of change management in employee
development. Ali, BJ, & Anwar, G.(2021). The Mediation Role of Change Management
in Employee Development. International Journal of English Literature and Social
Sciences. 6(2). pp.361-374.
Alqatawenah, A. S., 2018. Transformational leadership style and its relationship with change
management. Verslas: Teorija Ir Praktika/Business: Theory and Practice. 19. pp.17-24.
Bentham, J., 2018. Business and Economics in the News–Sainsbury's and Asda-the decade's
mega-merger. Teaching Business & Economics, 22(3), pp.11-12.
Brock, A., Kemp, S. and Williams, I.D., 2022. Personal Carbon Budgets: A Pestle
Review. Sustainability, 14(15), p.9238.
Chavan, S. and Bhattacharya, S., 2022. Study of employees' behavior during organizational
change: effects of business theatre on Kübler-Ross model. Cardiometry, (22).
Chiwawa, N., Wissink, H. and Fox, W., 2021. Strategic management practices in organisations
with specific reference to the public sector. Africa’s Public Service Delivery &
Performance Review. 9(1). p.9.
Dumas, C. and Beinecke, R. H., 2018. Change leadership in the 21st century. Journal of
Organizational Change Management. 31(4). pp.867-876.
Dzwigol, H., Vinichenko, O. and Vasiuta, V., 2019. Formation of strategic change management
system at an enterprise. Academy of Strategic Management Journal. 18. pp.1-8.
Galli, B. J., 2018. Change management models: A comparative analysis and concerns. IEEE
Engineering Management Review. 46(3). pp.124-132.
Gomes, E., 2020. Mergers, acquisitions, and strategic alliances as collaborative methods of
strategic development and change. Strategic Change. 29(2). pp.145-148.
Hendrikz, K. and Engelbrecht, A.S., 2019. The principled leadership scale: An integration of
value-based leadership. SA Journal of Industrial Psychology, 45(1), pp.1-10.
Laig, R. B. D. and Abocejo, F. T., 2021. Change Management Process in a Mining Company:
Kotter’s 8-Step Change Model. Organization. 5(3). pp.31-50.
Mariam-Fatima, A. and Shalini, A.A., 2021. Thin layer chromatography identification of
flavoprotein compounds in crude local spinach extract. International Journal of Medical
Toxicology & Legal Medicine, 24(3and4), pp.216-223.
Merritt, K. and Zhao, S., 2021. An innovative reflection based on critically applying ux design
principles. Journal of Open Innovation: Technology, Market, and Complexity, 7(2),
p.129.
Monte, A., 2021. A study of value chain reconfiguration processes under Covid-19 pressures: the
case of Tesco PLC in the United Kingdom.
Muldoon, J., 2020. Kurt Lewin: Organizational Change. The Palgrave Handbook of
Management History, pp.615-632.
Roşca, V. I., 2020. Implications of Lewin’s field theory on social change. In Proceedings of the
International Conference on Business Excellence (Vol. 14, No. 1, pp. 617-625).
Soegoto, F.A., 2021. Product development using SWOT analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH), 1, pp.1-10.
Online

Tesco announces major change to how many shoppers pay for goods. 2022. [Online]. Available
through:<https://www.nottinghampost.com/news/local-news/tesco-announces-major-
change-how-7461818>

3