Understanding & Leading Change: Tesco's Strategies and Operations

This report provides a comprehensive analysis of change management within Tesco, a multinational retailer. It begins by comparing Tesco's strategies and operations with Marks & Spencer, highlighting the impact of change on both organizations. The report then delves into the internal and external drivers of change, evaluating their effects on leadership, team dynamics, and individual behaviors, utilizing SWOT and PESTLE analyses. It examines effective measures to mitigate the negative impacts of change on organizational behavior, and explores the barriers to change within Tesco, analyzing their influence on leadership decision-making. Finally, the report applies various leadership and change management models, specifically Kotter's 8-Step Model and Lewin's Change Management Model, to address change within Tesco, offering practical insights and recommendations for successful change implementation.

Understanding &
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Compare different organisational examples where there has been an impact of change on
an organisation’s strategy and operations...............................................................................1
P2 Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours within an organisation..................................................................2
P3 Effective measures taken by the firm to minimise the negative impacts of change occur on
organisational behaviour........................................................................................................7
P4 Explain different barriers to change and determine how they influence decision-making of
leadership in Tesco.................................................................................................................8
P5 Apply various leadership and change management model to dealing with change in a
Tesco.....................................................................................................................................10
Kottler's 8-Step Model..........................................................................................................10
Lewin's Change Management Model...................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
An organisational change is an opportunity by which a firm can adapt changes in their
operations, ideas, planning and functioning. It is an opportunity for a company to grow its people
by making them learn new skills, knowledge, techniques so that they can perform effectively and
efficiently(Adamyk, 2019). A change in an organisation will leads to the firm towards a growth
and success as change provides new strategies for development of a firm. The company which is
taken to perform this study is Tesco, It is one of the biggest retailer and supermarket chain that is
working in different parts of the world, including UK, China, India, Hungary etc. This company
has diversified products assortments and varieties and provide greater customer service which
gives the company a competitive advantage for this reason this is the leading retailer in U.K.
This study is going to analyse the impact of change on strategies and operations of Tesco and
Marks and Spencer's along with the internal and external analysis of these two comparatively.
The following report also includes the measures that can be taken to minimise negative impacts
of change on organisational behaviour. This study also includes an explanation of the different
barriers to change and how they influenced decision making and leadership(Alanzi, 2018). This
above report also cover the different leadership approaches to dealing with change in
organizations.
MAIN BODY
P1 Compare different organisational examples where there has been an impact of change
on an organisation’s strategy and operations.
Tesco:-
Tesco Plc is a multinational retailer of general products and goods and has business presence in
united kingdom along with various countries like, China, India, Hungary etc. Tesco is
headquartered in Welwyn Garden City, Greater London, the UK. The firm perform its business
through various formats by both online and offline store(Aldemir, 2019). Tesco provides a wide
range of products of both food and non food items, fresh food, grocery, drinks, bakery, baby
products, clothing, frozen food, household appliances, pets, health and beauty products, electrical
goods, home and entertainment products, etc. Tesco operates its marts in several forms divided
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by range of products and size of stores. It also provides retail banking, consultancy and insurance
services through Tesco Bank in the United kingdom. Tesco plans between now and 2025 to
include a new facilities of formulation to improve the healthiness of products and a expansion of
Tesco's market-leading plant-based ranges, with new products that will make a positive change
in market.
Marks & Spencer Group Plc:-
Marks & Spencer Group Plc is a British multinational retailer holds business of clothes, food,
and home products. The brand was founded by Michael Marks and Thomas Spencer in 1884
headquartered in Paddington, London, the United Kingdom. The company operates through UK
and have franchises around the Europe and Asia. M&S bringing quality, great value food,
clothing and homeware to millions of customers around the world. M&S has said to preserve the
“pace of change” this year even with occurring pressures from inflation, the cost of living
calamity, after providing a successful first half of its five-year transformation plan. M&S will
perform with the fire power for the future positive impact of change, in second half of the
transformation of M&S is its “shaping the future” stage, with the tag line of “We’ve fixed the
basics, now let’s shape the business “ M&S said to offer new style in clothing, home appliances
and beauty products, healthy change and great taste in food items. M&S believes in quality and
innovation of products in up coming era of market(Sirisukha, 2020).
P2 Evaluate the ways in which internal and external drivers of change affect leadership,
team and individual behaviours within an organisation.
SWOT Analysis of Tesco:-
Strengths:-
Tech Advantage:- Tesco is moving towards a
new technology in M-commerce field where it
provides advanced featured mobile app for
online customers, along with RFID barcode
which counts the products of the customers
automatically(BelSmirnov and Wait, 2018).
Variety of products in diverse market:-
Tesco offers diverse and variety of products
Weaknesses:-
Weak operating profit:- The operational
performance of several stores of Tesco in some
countries not generating profit, which shows
that the marketing department is not
performing proper ground research before
opening up stores.
Low cost technique:- Tesco performs low cost
business strategy to attract more customers but
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like telephonic and financial services, clothes
and school uniforms, home and ware
items, rental DVDs and cotton trade business
worldwide.
this strategy doesn't generate more profit which
affects the business directly.
Opportunities:-
Online shopping store:- Tesco has a online
shopping app for customer who prefer online
shopping more, and Tesco can add up more
new features like home delivery to attract
customers towards Tesco.
Alliance with other brands:- Tesco has been
pairing up with other brands to achieve more
growth. The objective of adapting this
techniques is to provide better products and
services to attract more customers.
Threats:-
Supermarket Competitors:- Tesco has a wide
competition available in the market like
Walmart, Sainsbury's, Marks and Spencer
ASDA and Morrisons.
National economic crises:- National economic
factors like government rules, taxations, credit
and regulations are some of the serious threat
to the growth and performance of Tesco. The
company should be very innovative to deal
with such threats.
SWOT Analysis of Marks and Spencer:-
Strengths:-
1-Well-Experienced:- Marks & Spencer has
been in the market since 136 years. It’s one of
the leading retail businesses in the UK. The
firm has 1463 outlets across the worldwide and
out of which 1035 are there in the United
Kingdom.
2-Recognized brand:- Marks and Spencer is
famous for providing quality goods to its
consumers. M&S focus mainly on customer
satisfaction so that they will prefer M&S over
Weaknesses:-
1- Declining sales:- the sale in some of the
stores of marks and spencers is declining
because of non availability of products and
poor supply chain, the firm is not able to fulfil
the demand of the customers, which effects the
image of company(Burnes, 2020).
2-Perception of public:- there is a wave
flowing in the market that marks and spencers
doesn't provide clothes for young and teenagers
and only supplies older people clothes
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its competitors, which will leads to the grown
and profit earning of the firm.
meanwhile this perception is completely wrong
as it provides clothes for all age groups.
Opportunities:-
1- Online store:- marks and spencer has online
stores but they can grow their business more at
online platform like amazon and eBay by
providing new trendy items or clothes
according to the trends, fashion and demand of
the market.
2-Market Segmentation:- marks and spencers
is following market segmentation by opening
mega stores at different areas based on the
demand of the customers and mini stores
according to such areas where the demand is
neither high nor low.
Threats:-
1-Competition:-M&S has huge competition in
the market and the main competitors of Marks
& Spencer are John Lewis, Gap, Zara, United
colours of Benetton, Debenhams, Tommy
Hilfiger and Sports Direct.
2-Change in government:- as the government
change the policies rules and regulations also
change which affects the company's business
directly so firms should be ready for upcoming
changes of the markets to not face the
challenges directly.
PESTLE Analysis
Factors TESCO Plc Marks and Spencer
Political Governme
nt policies
Government policies effect
Tesco as importing of materials
from other countries become
easy and low rates for Tesco
which decrease the cost and
increase the profit of the
firm(Caulfield and Brenner,
2020).
If government increase the tax
rate then M&S also increase the
prices of its products which
leads to decreasing of sales of
the products.
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Internal
political
issues and
trends
Internal political issues
decrease the income of
business by impacting various
levels of firm. leaders of Tesco
often make decisions that
impact education, labour laws,
taxes and transportation.
Internal political issues and
trends effects marks and
spencers by decreasing the
efficiency of work, emerging
conflicts at workplace between
the people of the organisation.
Economical Interest
rate:-
2 Economic
growth and
developme
nt-
The liquidity of cash is affected
by the interest rate of
economical factor, when
investments increases then the
cash flow of the firm decreases
which results in reduction of
Tesco's liquidity.
2- Tesco need to grab the
demand of the market to work
smoothly in the market with
good economic growth and
development. It is the
important element that affect
the success of the business.
The higher return on investment
attract more investors, so as the
cash flow of marks and spencer
decrease because of the interest
rate on load increase then the
liquidity of the firm decrease.
2- Economic growth and
development plays an important
role for developing a business as
when firm provides new
products in the market then there
will be an automatic
development of that organisation
and also growth of economy.
Social Buying
habits
Tesco should focus on the
buying habits of the customers
as which product customer
demand more and also focus on
those products which needs to
be improved so that they can
also be in demand of the
customers.
Marks ans Spencer should look
for providing clothes according
to the buying habits and demand
of the customer so that the
customer satisfaction should be
on top because of availability of
product and also the profit of the
form increase accordingly(El-
Amin and George, 2020).
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Technological Adaptation
of new
technology
The adaptation of new
technology in business will
develop the productivity of
business. Tesco provides online
delivery of products to their
customer to provide more
services to build good customer
relation to develop customer
loyalty.
Technological change can bring
so many advantages in the firm,
Marks and Spencer provide
online shopping app to their
customer like amazon where
they also provide various
discounts and offers to grab the
customer attraction to gain more
profit.
Legal Consumer
law
This law is formed to save
customers from frauds done by
the companies. This law
provide guidelines to the Tesco
to not sell products which
comes under prohibited
products, their should be proper
expiry dates and manufacturing
dates on the food items, should
not sell more than price of
product and so on.
Consumer law provides benefits
and rights to the customer like if
company doesn't provide bill
after purchasing, or not
exchanging defective clothes
then customer can take legal
action against that company.
Marks and Spencer follows the
consumer law guidelines as they
believe in providing good
quality of products to the
customers.
Environment
al
Environme
nt-related
laws
Government has made several
environmental laws to protect
the environment and company
must follow those regulations
to save the environment. Tesco
follow reduce, reuse and
recycle strategy to help the
environment.
Marks and Spencer provides
their products in cloth bags
instead of paper and polythenes
to save the environment. They
also uses various techniques to
reduce the source of damaging
environment and also provides
environmental friendly products
to save the nature.
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P3 Effective measures taken by the firm to minimise the negative impacts of change occur
on organisational behaviour.
 Effective communication:- there should be a proper communication between the people
of the organisation their must be a clear transparency between everyone with full
openness so that every individual can discuss about the changes they should perform to
overcome the negative impact of change on organisational behaviour.
 Training and development program:- An organisation should arrange time to time
training and development programs for employees so that skills and knowledge of
employees can be improved and they give effective performance and increase
productivity which will help in overcome the impact of change(Galli, 2018).
 Hire new effective workers:- when things are not going in favour of the company then
an organisation should hire new effective workers and replace them with lazy and
unproductive workers so that there should be more efficient team can be made to solve
the conflicts occur because of change .
 Adapting new technology:- A firm should adopt new technologies and machines in the
workforce which will helps the employees to work more effectively and efficiently. New
technology helps the organisation to grow and grab the market over their competitors and
resolves all the emerging issues because of change occur in organisation.
 Research and development:- Company should focus on researching a proper and
effective solutions of problems occur because of the change adapting by the firm. An
organisation should research about the market and various techniques available to solve
the conflicts of the firm and should develop accordingly(Roşca, 2020).
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P4 Explain different barriers to change and determine how they influence decision-making
of leadership in Tesco.
Force Field analysis:- It is a basic tool which help in identifying the root cause and
provides a proper action guidance to overcome or solve that conflict. It helps in identifying the
negative impact of changes taken in the firm and provides a effective decision to analyse and
resolve the issue.
Supporting Factors Resisting Factors
 Changing technologies
 New trends in the market
 Effective staff
 Declining team morale and motivation
 Outdated machinery
 Habit of Employees
 Fear of failure
 Organisational politics
 Living in comfortable zone
 Organizational culture
Forces for change:-
 Changing technologies:- Technologies are changing rapidly so a firm should flow with
the new technologies otherwise they will lack behind and not able to upgrade according
to the world. Company should update themselves according to the new technology as it is
necessary to develop the resources to increase the productivity and grab the market.
 New trends in the market:- trends never remain constant it always change accordingly
so company should perform day to day research to identify the new trends coming in the
market. An organisation should adapt according to the new trends to attract the customers
and go ahead from their competitors so that they will capture the market easily(Grenway,
2021).
 Effective staff:- An effective employee is the base of an effective team and an effective
team means a productive team, a company must focus on hiring new effective employees
so that they will perform with full efficiency and effectiveness which will helps the
organisation to become more productive and m ore successful in the market.
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 Declining team morale and motivation:- In an organisation team is the basic source of
effective working so the team should be well motivate to give their full performance to
the company. Leaders should looks for the employees that if they are declining in their
team morale and focusing on individuality then leader should guide their employees to
work according to the demand of company to give their best outcome(Reed and et.al.,
2021).
 Outdated machinery:- Outdated equipment needs to be changed as they result in waste
of time and decrease in productivity. Machines keep production running but if machines
are not up to the mark then they will cost in repairing and enable to provide the out
source appropriately.
Forces against change:-
 Habit of Employees:- old habit of employees were not allow employees to adapt new
changes in their working because they prefer easy working and if new changes were
made then they have to do work with other several techniques. Employees are habitual of
doing their work with same techniques so they resist to change.
 Fear of failure:- changes on the job can cause employees to doubt their capabilities as
they will be able to adapt the changes or not, they will know the new techniques and
technology or not, so on. New changes in an organisation build fear of failure among the
employees like will they able to succeed or not(HAYES, 2021).
 Organisational politics:- people of the organisation play politics in a firm to prove that
the decision of change is wrong, they resist change to show their leaders decision-making
is not appropriate and some of them resist change so that they not loose their authority in
the organisation.
 Living in comfortable zone:- employees of the organisation are living in their
comfortable zone they don't want to adapt the changes as they prefer to work with their
same techniques and technologies. Employees are more comfortable without changes in
the organisation that's why they resit to change.
 Organizational culture:- The culture of the organisation resist to change as the
employees prefer to work in their homely environment change in culture means change in
technology, strategy, productivity, marketing strategies and other techniques so
employees prefer same culture of the organisation rather than changing culture of a firm.
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