Unit 17 - Leadership and Change Management Report on Tesco

This report provides a comprehensive analysis of Tesco's change management strategies, focusing on the drivers of change and their impact on the organization. The report begins with an overview of Tesco's operations and change processes, followed by a SWOT analysis to identify key drivers of change. It then evaluates how these drivers have affected Tesco's strategy and operations, including the implementation of self-checkout systems. The report also examines the effects of change on leadership styles, individual and team behavior, and how Tesco minimized the negative impacts through the application of models such as Lewin's change management model. Furthermore, the report critically evaluates the long-term implications of these changes, offering recommendations for effective planning and managing change, including change impact analysis to identify potential risks. The report highlights key elements such as customer satisfaction, increased sales, and technological innovation as key drivers of change and analyzes the effect of these factors on Tesco's strategic changes and overall performance. The analysis also considers the impact on leadership styles, employee engagement, and the application of various change management models to ensure a smooth transition and minimize potential negative consequences, concluding with recommendations for future change management practices.

Unit Number and Title Unit 17 – Understanding & Leading Change
Project Title Drivers of Change and Organisational Impact (Part 1)
Leadership and Change Management (Part 2)

Table of Content
Assessment Part 1
1.0 Introduction p
2.0 An overview of the organisation and it’s change processes p
3.0 A PEST/SWOT analysis to be undertaken to identify drivers of change
p
4.1 An evaluation of the drivers and impacts of change and how they have
affected organisational strategy p
4.2 Comparing the impacts of change and the effect they have had upon the
organisation’s strategy and operations p
5.0 Evaluation of how change will have affected leadership, individuals and
team behaviour p
6.0 An evaluation of how the impact of change was minimised and the
application of appropriate models applied to plan for and process change
efficiently p
7.0 Critical evaluation of the long- term implications of change to inform
conclusions and recommendations for minimising affects of change through
effective planning and managing change, including change impact analysis to
identify potential risks of change p
8.0 Conclusion p
References p

1.0 Introduction
Change within the organization can be arises either from the internal factor or external
factor but the most significant is understanding and leading change by the management of
organization. The present report will be based on Tesco Plc that have not only understand the
internal as well as external market forces or driver of change but also has implement it within the
organization successfully (Dzwigol, 2019). The assessment one will compare the ways in which
change impact on Tesco strategy and operations. Further, the assessment will also evaluate the
influences that drivers of change have on the organization behaviour of Tesco plc.
2.0 An overview of the organisation and it’s change processes
Tesco Plc is a UK based multinational retailer that have its operation in more than 13
countries all over the world. It is one of the leading and second largest retail business in UK and
ninth largest business all over the world. The major or large-scale change adopted by Tesco
company in the year 2015 is introducing and implementing a self-service check out system
throughout its network (Galli, 2018). This is basically a new payment system which is
implemented by Tesco Plc after analysing the changing demand of customer and continuous
technological innovation. The implementation of this system is a strategic plan change for the
company. The purpose of Tesco behind the introduction as well as the implementation of this
change is enhancing customer service. This system does not require any cashier and customer
can scan, pack and pay for their goods. The impact of which customer waiting time has reduced
and improved customer flow.
3.0 A PEST/SWOT analysis to be undertaken to identify drivers of change
SWOT Analysis of Tesco Plc: In order to identify the drivers of change within Tesco Plc, the
swot model is used which are as follows:

Strength: The strength basically arises because of the internal environment of the
company. The strength of Tesco plc is that it is biggest grocery retailer in the UK. The growing
number of stores and diversified stores is also strength of Tesco. Efficient supply chain as well as
the online shopping channel is also a biggest strength of company that made Tesco UK second
largest retailer.
Weakness: The weakness is the internal that affect the business capabilities and
performance. The weaknesses of Tesco Plc failed operation in US, low-cost strategy, high cost of
labour, poor customer base as well as the increase in the level of competition which has affected
performance of Tesco many times (Shafiq and et.al., 2018).
Opportunity: There are external factors which create opportunity for the company to gain
competitive advantage. The various factors which have created opportunity for Tesco Plc is
technological innovation and creative of value for customer. The company have grasped this
factor within the business to bring changes and gain competitive advantage. The cash less stores
is also an opportunity for the company.
Threat: This are the factors of the model which create threat for the company and the
organization should avoid this by enhancing and using their strength. For example, fake farm
legal threat, 2014 accounting scandal, rising cost of material is a threat for the company which
has been address by the company (Morin, 2018).
4.1 An evaluation of the drivers and impacts of change and how they have
affected organisational strategy
The main drivers of change are social as consumer taste and preferences changes with
business environment and it wants product according to current market trend. Along with this,
another factor is technology as most of the organization is making use of SMM in order to
increase awareness in the market (Stouten, Rousseau and De Cremer, 2018). Furthermore,
environmental also influence change as natural disaster can create barriers in growth of
company. Politics have foundational influence on supply chain and government regulations like
restriction on trade affects profitability of the business. Basically, the key driver and its
impact on change and organization strategy are as follows:

Customer satisfaction: This is one of the key driver identified from above SWOT
analysis which indicate the company such as Tesco Plc to make change within the organization.
In order to increase the satisfaction level of its customer, Tesco Plc have launch self-check-out
system. The impact of which the company customer satisfaction has increase. This driver has
affected the strategic change within the company.
Increase in sales: This is also one of the key driver of change which is identified from
swot analysis that indicate that Tesco plc need to enhance its sales level and it is possible only
with the strategic change within the company (Cameron and Green, 2019). The effect of this
driver over the organization strategy is that Tesco able to control its unnecessary cost and
enhance the profitability of business.
Customer Base: The customer base is one of the driver to change which leads to strategic
change within Tesco Plc. In order to enhance the customer base of company, the management of
Tesco Plc have introduced self-checkout system as it is one of the best way to track and manage
customer payment quickly. The impact of change over the company leads to increase in the
targeted customer by 15% in the six month of launch.
Innovation: Innovation is also one of the key drivers of change which is identified from
above internal environment analysis of Tesco. This driver has forced the management of
company to implement strategic change within the company and its effect on strategic
organization strategy is that Tesco has achieved its objective of becoming second largest retailer
of UK (Alqatawenh, 2018).
4.2 Comparing the impacts of change and the effect they have had upon the
organisation’s strategy and operations
The social factor affects changes in negative way as customer take decision by seeing the
business environment and leader of the company can make use of effective strategy so the
changes can be met in right manner (Jayatilleke and Lai, 2018). Along with this, economic factor
of the country need to be consider as it affects sustainability of the company. Moreover, if
Tesco make use of good technology than it operation sector will be smooth and customer will be

able to achieve company goals through attracting large customer. In addition to this, political
factor may impact negatively such as increase in the tax will affect purchasing scale of company.
On the other hand, one of the significant positive impact of this change over the Tesco is
that the company have become second largest retailer of UK and ninth largest retailer of world.
Not only that, the effect of strategic change of introducing self-checkout system within the
organization over the Tesco is increase in sales revenue, reduction in cost of sales, increase
profitability as well as high market share due to competitive advantage gain. But this has also
leads to some difficulty to Tesco in the term of lack of employee involvement and finance. It
means the company do not have enough fund as well as motivated & encouraged workforce that
helps the company to successfully implement this change on the company (Dumas and Beinecke,
2018). The impact was positive as it has helped in increasing the growth rate in affecting
manner and dealing with company performance.
5.0 Evaluation of how change will have affected leadership,
individuals and team behaviour
The strategic change of introducing and implementing self-checkout system within Tesco
organization has affected the leadership of the company in such a manner that the company need
to change its leadership style. Before this change, Tesco follow autocratic leadership style but
after this change the company have change its leadership style to participative or democratic.
This is done in order to keep employees engaged in the change process of the company and keep
them motivated (Oreg and Berson, 2019).
Team can react to change negatively due to poor culture in company and it may feel
helpless and despair to different corresponding human to emotion with their team. Thus, team
poor performance will affect company profitability. Due to this change, the teams of Tesco Plc
unable to manage their staff as employees have restrict them to change. But with the help of
participative leadership style the company have easily solved this issue.
It has affect individual both negatively and positively as it can affect their attitude
towards job loyalty and teams lack of confidence in the management team (Makate and et.al.,
2019). Furthermore, leadership also affect as positive change will allow company to improve the
overall productivity of firm. The individuals are highly demotivated by company as this change
leads to the reduction in the number of jobs in the company because of system introduction. The

company can make use of Kotter leadership model that will help the organization in meeting up
with the changes. The advantage of this model is to overcome the obstacles and help the
company in achieving growth
6.0 An evaluation of how the impact of change was minimised and the
application of appropriate models applied to plan for and process change
efficiently
The company in order to deal with technological change has come up with the idea of
digital pay as well as it has meet up with social change also by fulfilling the needs of customer
and market trend. In addition to this, it is also following all the political rules and regulation so
that there is no intervention of government (Bousquet and et.al.,.2019). In order to minimise the
negative impact of change over the company strategy, the management of Tesco Plc have
adopted participative leadership style model. It helps the company to keep employees engaged
and motivated. Also, the finance manager of Tesco has acquired money from the market via
issuing debts as well as share to implement the self-checkout system in all their 6849 stores all
over the world in the year 2015. This has also helped the company to minimize the negative
impact or lack of finance issue in their change process.
Further, it is also analysed from the research that Tesco Plc has applied Lewin’s change
management model in order to plan as well as process this strategic change efficiently. As per
this model, Tesco Plc have first unfrozen its current process of manual bill payment at stores.
After that, the management of Tesco Plc have implement the self-checkout system within the
organization under change step of model (Hayes, 2022). Lastly, the company management
solidify the new change with the employee and customer feedback.
7.0 Critical evaluation of the long- term implications of change to inform
conclusions and recommendations for minimising affects of change through
effective planning and managing change, including change impact analysis to
identify potential risks of change

The company can make use of effective communication so that there is transparency
between stakeholders and everyone can be involved in group work and they are committed
towards goals. Along with this, train new hires so that it can easily deal with any kind of cultural
as well as minor issues related to people. The long term implication of this strategic change of
Tesco over the company is that their performance has enhanced. This change has leads to the
increase in market share, sales increment and reduction in the cost of the company. Not only that,
the introduction of self-checkout system has helped the company to gain the competitive
advantage in the market as at that time no competitor of Tesco such as M&S, Sainsbury are using
self-checkout system at their stores (Weintraub and McKee, 2019). However, the lack of
employee supports and low knowledge is act as a biggest issue for Tesco Plc in their effective
planning and managing change. So, in order to successfully deal with this issue, the two strategy
action taken by Tesco is open communication and training to employees.
The management of Tesco Plc have provided proper training and development session to
its employees regarding how to use these systems in order to quickly process payment at the
store. The waiting time of customer has reduced to this which ultimately leads to increase in
sales of the company. The employees are encouraged with the training and ready to adapt change
within the organization. The open communication has also helped in motivating the employees
of the company.
8.0 Conclusion
From the above report it has been concluded that change management is one of the most
crucial part of the organization and it is impacted through various factors present in macro and
micro environment. The present report has concluded the previous change process of Tesco Plc.
The change process of Tesco Plc includes the introduction and implementation of self-checkout
system within the organization in order to reduce the waiting time of customer and enhance the
customer base as well as sales of company. This change was successfully implement by the
company despite of various issues and challenges of lack of finance, lack of employee support
and low knowledge of system. For this, the management of Tesco Plc have adopted the various
strategy such as issue of shares, open communication and training to employees etc. The
application of Lewis change management model has helped the company to implement this
strategic change in successful manner.

References
Bousquet, J. and et.al.,.2019 Allergic Rhinitis and its Impact on Asthma (ARIA) Phase 4 (2018):
Change management in allergic rhinitis and asthma multimorbidity using mobile
technology. Journal of Allergy and Clinical Immunology. 143(3). pp.864-879.
Galli, B. J., 2018. Change management models: A comparative analysis and concerns. IEEE
Engineering Management Review. 46(3). pp.124-132.
Jayatilleke, S. and Lai, R., 2018. A systematic review of requirements change
management. Information and Software Technology. 93. pp.163-185.
Shafiq, M. and et.al., 2018. Effect of project management in requirements engineering and
requirements change management processes for global software development. IEEE
Access, 6, pp.25747-25763.
Stouten, J., Rousseau, D.M. and De Cremer, D., 2018. Successful organizational change:
Integrating the management practice and scholarly literatures. Academy of Management
Annals. 12(2).pp.752-788.
Dzwigol, H., et al. 2019. Formation of strategic change management system at an
enterprise. Academy of Strategic Management Journal,18. pp.1-8.
Morin, J., 2018. Leadership and change management. Scientific e-Resources.
Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Alqatawenh, A. S., 2018. Transformational leadership style and its relationship with change
management. Verslas: teorija ir praktika, 19(1). pp.17-24.
Dumas, C. and Beinecke, R. H., 2018. Change leadership in the 21st century. Journal of
Organizational Change Management. 31(4). pp.867-876.
Oreg, S. and Berson, Y., 2019. Leaders’ impact on organizational change: Bridging theoretical
and methodological chasms. Academy of Management Annals. 13(1). pp.272-307.
Hayes, J., 2022. The theory and practice of change management. Bloomsbury Publishing.
Weintraub, P. and McKee, M., 2019. Leadership for innovation in healthcare: an
exploration. International journal of health policy and management. 8(3). p.138.

Table of Content
Assessment Part 2
1.0 Introduction p
2.0 Application of force field analysis to determine opposition and
support for change p
3.0 Use of force field analysis to make valid recommendations for
meeting the organisation’s objectives p
4.0 An explanation of the different barriers to change and how they
influenced decision making and leadership p
5.0 How was change accomplished and how successful was it? p
5. Advantages and disadvantages of different leadership approaches
to dealing with change, illustrated by application to a range of
examples p
6. Critical evaluation of different leadership approaches and models
of change management p
1.0 Introduction

The present report will discuss about force field analysis and barriers present in change
management process. Moreover, the present report was based on Tesco and it has discussed
about the way company has implemented the change as well as leadership style which has been
adopted by Tesco in order to manage employees.
2.0 Application of force field analysis to determine opposition and
support for change
The force field analysis is a widely used change management model and it works as diagnostic
tool and it is powerful decision making that help in making changes. Moreover, it helps in
identifying map as well as driving and restraining force that leverage innovative factor which
helps in reducing the unfavourable items as well as successful implementation of the change
plan. Moreover, the force field tool was introducing as change management model by Kurt
Lewin. The idea behind this tool is to analysis particular situation that occur due to counter
balance between forces and also because of equilibrium between them that influence and oppose
change. In order to promote change driving forces should be strengthened or the resisting force
will be weakened (Murray, Woodside and Braunscheidel, 2020).
This tools helps in dealing with the overall changes in the company and allow them to come
with innovative idea to reduce the negative impact of work. A force can either aid achieving the
main objectives or block the achievement of the hindrance force. According to Kurt Lewin
company will make use of dynamic and interactive forces that work in opposite direction as well
as for any successful change to occur the driving force must outdo the hindering forces.
Moreover, company can apply this by organizing meetings which involve all the important
stakeholders of the project that helps in generating idea for all force and impact on the project.
3.0 Use of force field analysis to make valid recommendations for
meeting the organisation’s objectives
The force field has been used by Tesco so that change can be meet properly and it helps in
improving the growth in competitive market area. In addition to this, Tesco first has analysed
the various factor that have impacted performance of company such as drastic shift of customer
towards technology and high competition. Moreover, there is increase in demand of technology