Drivers of Change: A Comparative Analysis of Tesco and Marks & Spencer

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This report provides a detailed analysis of change management at Tesco and Marks & Spencer, examining the types of organizational changes they underwent, including organization-wide and unplanned changes. It uses PESTLE and SWOT analyses to identify external and internal drivers of change, such as Brexit's impact on Tesco's supply chain and COVID-19's effect on Marks & Spencer's workforce and customer base. The report compares the drivers of change affecting each organization, evaluates the long-term implications, and recommends actions for effective change planning. Furthermore, it includes a force field analysis to determine driving and resisting forces, recommends courses of action to meet organizational objectives, and critically evaluates different leadership approaches and change management models to deal with change effectively. The report concludes by highlighting the importance of adapting to change for sustained competitiveness and growth.
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Understanding
and
Leading Change
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................4
PART - 1..........................................................................................................................................4
Discussing overview of each organisation and the type of change they went through...............4
Discussing PESTLE and SWOT analysis to identify the external and internal drivers of
change.........................................................................................................................................6
Comparison of The Drivers of Change Affecting Each Organisation and Its Leadership and
Behaviours...................................................................................................................................8
Evaluation of Long Term Implications of Drivers of Change...................................................9
Recommendations to Aid Effective Planning For Change and Its Application........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
INTRODUCTION.........................................................................................................................13
MAIN BODY.................................................................................................................................13
PART – 2 ......................................................................................................................................13
Brief introduction of the case study of the organisation...........................................................13
Discussing and implementing force field analysis to determine both drivers and resistance
forces and how they influence decision making.......................................................................13
Recommending course of action in to meet organizational objectives. ...................................15
Critical evaluation of different leadership approaches and models of change management to
deal with change........................................................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
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INTRODUCTION
Organisational change refers to the overall actions initiated by a business in order to alter
its major components such as its culture, the underlying technology or its infrastructure in its
operations along with its internal process. In order to deal with change business's focused on
organisational management with consists of various methods that help the business to leverage
changes in order to ensure that there is successful resolution. For the following report TESCO
along with Marks & Spencer are taken into consideration. The following report will consist of
the overview of the chosen organisations and discussing the overall impact of changes on its
strategies and operations. In addition to this the report will evaluate the drivers of change that the
affected organisation behaviour.
MAINBODY
PART - 1
Discussing overview of each organisation and the type of change they went through.
Types of organisational change:
There are various types of changes that an organisation implements relative to the
situation they encounter. These changes are necessary for the business in order to be competitive
ion the market and ensure long-term growth (Adyana and Hanani., 2020). Given below are some
types of organisational changes that business adopt to in order to introduce changes in the
organisation:
Organization wide change:
This type of change refers to when an organisation wants to implements changes at a
large scale which affect the whole organisation. The changes can include overall alteration is
business strategies, introduction of new policies and implementation of new technology.
Transformational change:
This type of change if focused on a specific organisational strategy. Companies that are
best suited to withstand rapid changes in their particular industry are adaptable and prepared to
transform their overall game plan when need arises.
Unplanned change:
This type of changes is defined as a crucial step that an organisation has to implement in
order to deal with sudden and uncertain situations. These changes refer to steps that are triggered
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by certain events and make it vital for the organisation to introduce important changes in order to
survive in the market.
Overview of TESOC:
TESCO is a British multinational groceries and general merchandise retailer
headquartered in Welwyn Garden City, UK. The organisation is the world's third largest retailer
in the terms of gross revenue. In addition to this is is the ninth largest in the world in the measure
by revenue. The organisation has shops in over five countries and is considered a leading brand
in the European market relative to groceries with a market share of over 28%. the situation of
Brexit had a great impact on the operations of the business. The situation caused negative impact
on the supply chain process of the organisation. The negative impact forced the organisation to
make necessary changes within its operations in order to stay competitive in the market and
maintain its market position. Given below are the impact of Brexit on TESCO relative to
changes:
Disrupted supply chain: The situation of Brexit had a great impact on the supply chain strategy
of the organisation due to changes in trade tariffs. This resulted in constricted supply of products
and service to the organisation negatively impacting its business strategy.
Increased prices: The situation of Brexit resulted in attaining supplies for other supplier
resulting in increased operation cost. This impacted the overall pricing strategy of the
organisation as they had to increase the process of their products to be competitive in the market.
The organisation of TESCO went under the change type of organisational wide change as
they implemented various new policies along with introduction new technology in order to keep
the prices of their products low and be completive in the market.
Overview of Marks & Spencer:
Marks & Spencer is a major British multinational retailer with headquartered in London,
UK. The organisation specializes in selling clothes, home products along with food products.
The organisation was established in the year of 1884 and since then that currently established
over 900 stores across UK. The organisation focuses upon selling its food products through its
well structured advertising and asserts is exclusive nature along with luxury in its food and
beverage products. The organisation had to introduce various changes in its overall business
process due to the Situation of COVID – 19 as it impacted the overall workforce of the
organisation. This situation impacted various departments of the business and disrupted their
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functioning. Given below are the impact of COVID – 19 that caused changes in the organisation
of Marks & Spencer:
Disrupted workforce: The situation of COVID – 19 and the restriction that came with it cased
disruption in the workforce of the organisation and negatively impacted its human resource
strategy. This is due to government restriction along with loss of life in COVID – 19 pandemic.
Loss of customer base: The organisation had a negative impact of COVID – 19 on its business
strategy as the restriction of the pandemic saw decreased in customer base resulting in low
generation of sale for the organisation.
The organisation of Marks & Spencer had unplanned type of change as it was impacted
by a unseen event of COVID – 19 pandemic and had to makes sudden changes to their
organisation culture as well as strategies in order to survive the situation and be competitive in
the market.
Discussing PESTLE and SWOT analysis to identify the external and internal drivers of change.
It is crucial of an organisation to understand its internal as well as external business
environment in order to identify various changes that can impact the organisation. Framework
such as PESTLE analysis allow and organisation to understand various external factors that can
influence the operations of the business. In addition to this organisations can utilize SWOT
analyses to identity internal factors that provide insight upon the overall strengths and weakness
of the organisation along with its threats and opportunities (Desai., 2019). The utilization of
these analysis are vital especially during changes in an organization in order to be effective in
implement g necessary changes and ensure they are effective in their overall purpose. Given
below are the PESTLE and SWOT analysis of TESCO along with Marks & Spencer:
PESTLE analysis:
Political: The organisation of TESCO was greatly impacted by the political driver as due to the
situation of Brexit new trade tariffs were implement. These new tariffs cased disruption in the
supply chain of the organisation. For the organisation of Marks & Spencer the key political drive
were the government rules and regulation implement by the government resulting in loss of
customer base as well as negatively impacting the workforce of the organisation (Prurapark and
Asavaritikrai., 2020).
Economical: The key driver for change relative to the economical factor for TESCO was
increase in the overall price of products due to disrupted supply chain cased by the situation of
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Brexit. For the organisation of Marks & Spencer the key drive of change was loss of customers
as well as the decrease in the overall purchasing power of customers as a negative impact of
COVID – 19 situation.
Social: In the social factor of the external environment decrease in the satisfaction level of
customers was a key driver of change for the organisation of TESCO due to Brexit. This is due
to the organisation not being able to provide products and services at low cost. For the
organisation of Marks & Spencer key driver of change in COVID – 19 situation was decrease in
the overall customers base due to pandemic restrictions.
Technological: The key technological change for the organisation of TESCO was establishing
new supply chain which is effective and efficient in its overall process. For the organisation of
Marks & Spencer the key driver of change was ineffective communication with its workforce
due to COVID – 19 pandemic restriction (Helmold., 2020).
Legal: The organisation of TESCO had various key change due to legal factors such as
development of its policies relative to the new laws due to Brexit and ensuing all laws are
implemented. For the organisation of Marks & Spencer the key driver of changes focused upon
ensuring all legal requirements are being met relative to employee welfares and safety in the
situation of COVID – 19 pandemic.
Environmental: The organisation of TESCO had key drives of changes in its environmental
factor due to the situation of Brexit as the organisation has to ensuring implementation of specify
environmental law in order to run its business operations. For the organisation of Marks &
Spencer the COVID – 19 situation brought in the key driver of change for the business relative to
ensuing its employees are safe from the external factors that can negatively impacts is workforce
(Wu., 2020).
SWOT analysis:
TESCO
Strength Weakness
The organisation has a large market
share that enable them to withstand
uncertain situations effectively.
The organisation has loyal customer
base that allow the business to attract
The organist has a weak supply chain
which is easily affected by external
business environment changes.
The price of its products and service are
easy affected through unseen situation
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customers in an optimal fashion. reducing the profitability of the
company.
Opportunity Threats
The organisation can focus on
implementing new advance technology
in order to have effective production of
product in order to reduce cost.
It can focus on establishing new
relations with reliable suppliers.
The organisation has a constant threat
of dynamic external environment.
The existing competition is the market
is a threat for the organization.
Marks & Spencer
Strength Weakness
The brand image of the organisation is
positive enabling them to attract large
number of customers.
The organisation has a effective supply
chain improving their productivity.
The human resource function of the
organisation are weak resulting in low
level of performance.
The organisation has ineffective
communication channels that resulting
in miscommunication of information.
Opportunity Threats
The company can use advance
technology in order to improve its
communication with employee.
The organisation can focuses on
enhancing its online market.
Exiting competition in the market are a
constant threat for the company.
Unsatisfied employees can cause a
thereat of increase in turnover.
Comparison of The Drivers of Change Affecting Each Organisation and Its Leadership and
Behaviours
Since the start of the pandemic, the lives of people as well as the organisations has
changed, and same is the case with Marks and Spenser. The corona virus pandemic has placed
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the businesses and their owners in the immense need for changes. The massive, unpredictable
and quick outbreak of this has put fear among the employees as well as the shareholders and
made it challenging for the leaders to respond (Downey, 2021). An unexpected sequential
outbreak of this pandemic in a enormous area and with sentient speed has resulted in
disorientation and loosing of control of management and activities of Mark and Spenser. This
also brought up a strong emotional and social disturbance in the lives of people and the
employees who has faith on the organisation. During this pandemic the predetermined and
forecasted sets to tackle challenges may fail, as this pandemic required the leaders to response
quickly with wide range of continuous actions (Blair And et. al., 2020). The leader's behaviours
was changed beyond the regular continuous actions such as adoption of new policies such as
'work from home', adopting new tools to aid 'strategic collaboration' and many other changes to
tackle the situation.
Whereas, the UK based retails were left bare hand to scramble their profits leaving
countless management teams with no choice but only rethinking their supply chains. Same thing
happened to TESCO, it needed to change according to the expected changing and further
increasing costs of supply chain. The company needed to change according to the changes in
trade policies, consumer behaviour, changing competitors policies, fluctuating wholesale
demands along with maintaining its profits. TESCO leaders has to manage the change to keep up
with their overall profits and have access to the supply chain continuously with the rise in prices
due to inflation. The main challenge for the company leaders was to keep the prices of the
products stable even in the scenario of the inflationary conditions due to Brexit (Muldowney,
Brown and Bradley, 2020). TESCO smartly observes and carefully monitored these changes in
the trends and habits, in order to negotiate with the suppliers to traitor procurement of the most
essential products. They should also explore increasing in-store promotions and create alluring
low value bundles in high vales, this helped them to persuade customers to purchase these
products and create healthy margin.
Evaluation of Long Term Implications of Drivers of Change
The crisis illustrated the need for immediate changes and improvement in the slow
changing retail industry (Girrell, 2021). The changes has positive as well as negative impacts on
the business.
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Positive Impacts that can be seen were -
Management became more effective
Swiftness in Decision Making
Advantages of Strategic Relationship
Reinvented Shopping
Improvement in Consumer Services
Negative Impacts that aroused were -
Hindrance in Regular Activities
Fall in Overall Outputs and Profits
Employee Turnovers
Increase in overall Costs
Lowering of Supply Chain Efficiency
Decline in flexibility of operations
The management delegated the authority and responsibility among smaller teams to
create bigger actions and decisions helped to manage bring swiftness through delegation of work.
The effective planning and strategic relations with Microsoft has enhanced the working and
support of the organisation. Social distancing lead to shift in the ways of shopping and the
company moved towards digital marketing and increase turnover enormous.
Impacts of Brexit on the retail business of TESCO were also many that affected the
overall business activities and management. The reactions to the changes of Brexit by the
company were the indicators of company's resilience and ability to rebound in the mid of strong
headwinds imposed by Brexit (Salinitri, 2020). These impacts of Brexit on TESCO are listed
below:
Tariffs and Distractions
Inflationary Conditions
Breaking down of Supply Chain
Recommendations to Aid Effective Planning For Change and Its Application
The Marks and Spenser could use wholistic change management approach, with the best
practices from varied sectors to address the short term needs of facing and tackling the
unanimous situations. Organisations leaders need to actively coach their workforces through the
stages of the curve and pull them form the valley of disappointed to improve their morale and
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productivity during COVID. The organisation needed to show and produce changes in their
practices for planning the changing scenario, which is given below:
Bringing Resilient Leadership in Action
Central Response Office Activation
Partnering with Strategic Alliances
Communicate Frequently
Blend Learning Strategies and Opportunities for Their Employees
Bring New Innovations in Working Such as Digitalisation
Particularly, Brexit has caused massive difficulties to retail industry and retailer's
business operations in many ways. The company has seen a drop of approx 23 percent sin the
corporation's profit after the full indecent of Brexit To tackle the challenges of Brexit TESCO
could consider using Kotter's 8 steps model of change. This will help TESCO to adapt quickly to
the changes and industrial fluctuations that were continuously formulated by Brexit. The steps to
win in the situation of Brexit are increase urgency, build guidance teams, develop vision,
communicate buy-in, empower action, create short term plan, don't let-up, make changes
permanent(Standing, 2021).
CONCLUSION
In the following report it has been a comparison of two organisations that went through
different changes. On the one hand, where an company went through the changes due to Brexit
has been analysed with the analysis tools Pestle and Swot. Whereas the another company that
faced the challenges was analysed with the same analysis methods. Both the organisations were
affected by the changes caused de to the specific problems arisen. In this report it has been also
understood that how the leadership and management of this organisation has been affected by the
various situations. Moreover it has been understood that company needs to make changes in its
policies and behaviour to tackle these situations. For the purpose of solving these problems and
improving efficiency the organisations, Kotter's Change model and wholistic approach of
management are being understood in the report.
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REFERENCES
Books & Journals:
Adyana, A. A. and Hanani, A. D., 2020, September. SBH strategic planning of new business
development. In Contemporary Research on Business and Management: Proceedings of
the International Seminar of Contemporary Research on Business and Management
(ISCRBM 2019), 27-29 November, 2019, Jakarta, Indonesia (p. 32). CRC Press.
Blair, S.W. And et. al., 2020. 'Breathing Space'-Concept Note 2 on the Effect of the 2020
Pandemic on Commercial Contracts. Available at SSRN 3612937.\
Desai, C., 2019. Strategy and strategic management. In Management for Scientists. Emerald
Publishing Limited.
Downey, M., 2021. Extraordinary Circumstances and Extraordinary Writs: Equitable Tolling
during the COVID-19 Pandemic and Beyond. Available at SSRN 3892830.
Girrell, R.J., 2021. No Longer Servants, but Friends: Toward a Relational Approach to Spiritual
Leadership Development (Doctoral dissertation, Garrett-Evangelical Theological
Seminary).
Helmold, M., 2020. Lean Management as Part of the Corporate Strategy. In Lean Management
and Kaizen (pp. 45-55). Springer, Cham.
Muldowney, S., Brown, R. and Bradley, J., 2020. Leading lights. Create, 6(2).
Prurapark, R. and Asavaritikrai, P., 2020. SWOT Analysis. In Assessing Coal Use in Thailand:
Current and Future Trends (pp. 83-92). Springer, Singapore.
Salinitri, G., 2020. LEADing From Behind: Exploring the Leadership Styles of Effective
Teachers. In Handbook of Research on Leadership Experience for Academic Direction
(LEAD) Programs for Student Success (pp. 405-422). IGI Global.
Standing, G., 2021. The corruption of capitalism: Why rentiers thrive and work does not pay.
Biteback Publishing.
Wu, Y., 2020, February. The Marketing Strategies of IKEA in China Using Tools of PESTEL,
Five Forces Model and SWOT Analysis. In International Academic Conference on
Frontiers in Social Sciences and Management Innovation (IAFSM 2019) (pp. 348-355).
Atlantis Press.
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INTRODUCTION
Leadership refers to the ability of an individual or a group of individuals to influence
others and guide them by providing effective and efficient directions and methods. Leadership is
crucial for an organisation when implementing changes as effective leadership allows an
organisation to minimize factors that can negatively impact the overall operation of the business.
The following report will focus on the case study of Marks and Spencer. In addition to this it will
include different barriers for changes and how they influence leadership decision along with the
utilization of force field analysis to analyse the drivers and resisting forces. Moreover, the
following report will consist of different leadership approaches and how they deal with change.
MAIN BODY
PART – 2
Brief introduction of the case study of the organisation.
The organisation of Marks & Spencer had to implement various changes within their
organisation due to the situation of COVID – 19 pandemic. These changes have had a massive
impact on the overall operation of the organisation which have altered how their business
activities are performance. In addition to this the pandemic situation has negatively impacted
their market positing due to decrease in customers base as well as probability.
Discussing and implementing force field analysis to determine both drivers and resistance forces
and how they influence decision making.
There are various barriers to change that an organisation has to encounter. These barriers
can cause hindrances in the operations of the business. These barriers influence on the overall
decision making of leadership (Chukwusa., 2018). In context to Marks and Spencer, the situation
of COVID – 19 introduced various barriers to change relative to the employees of the
organisation. Some of these barriers are mentioned below and how they influenced the decision
making of the leadership.
Negative employee attitudes:
The management of Marks & Spencer faced negative employee attitudes when
implementation strategies relative to work from home in order to follow COVID 19
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