Understanding and Leading Change: A Tesco Organizational Report

This report provides an in-depth analysis of Tesco's change management strategies and leadership approaches within the retail industry. It examines both internal and external drivers influencing Tesco's decision-making, including political, economic, social, legal, and technological factors. The report explores the impact of these drivers on Tesco and its competitor, Sainsbury's. It also delves into the significance of board of directors, customers, and suppliers in driving organizational change. The report highlights the application of Kotter's change model, discussing each stage from creating urgency to creating short-term wins. Furthermore, it identifies the barriers to change and suggests leadership styles Tesco should adopt to navigate the dynamic retail landscape, focusing on innovation and customer satisfaction. The report also discusses the impact of BREXIT and the COVID-19 pandemic on the retail business.

Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Part A...........................................................................................................................................3
Part B...........................................................................................................................................7
Task 2...............................................................................................................................................9
Determining barriers to change which influence leadership decision-making..........................9
Task 3.............................................................................................................................................11
Leadership approaches to change initiative...............................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Organizational change refers to the process in which a large company or organization
changes its working methods or aims (Anderson, 2019). Tesco is a British multinational
company of groceries and general merchandise retailer. The company has diversification in the
areas of retailing of books, clothing, electronics, furniture, financial services, telecom and
internet services etc. The following report will examine the barriers to change influencing
leadership decision – making and leadership approaches in detail concerning the leadership
styles Tesco should follow and along with a model that will explain different stages for the
changes in the organization.
MAIN BODY
TASK 1
Part A
Internal and External driver Impact on business and Change management
There are number of changes that are taking place in United Kingdom which impact retail
industry for example BREXIT increase raw material cost. It becomes important firm to adopt
change model management for tackling such types of difficult situation and increase profit share.
Tesco and Sainsbury are two firms that are working in retail sector of Britain and
impacted by various types of changes because of micro and macro environment (Rosenbaum,
More and Steane, 2018). This organisation makes quick changes in organisation culture and
leadership to gain competitive advantage. Information related internal and external drivers that
affect firm can easily available on online which help scholars in their research. It helps in
analysis way in which various types of situation can become opportunity and challenges for
example: new government policies for entrepreneur can affect Tesco as well as Sainsbury
situation.
External Driver
It emphasizes on factor that are external such as political, economical, social, legal and
technological which impact on strategies of Business and hence can create opportunities or
challenges for firm.
Political

After BREXIT, Government of Britain changes three times and hence creates void which
and very new ministry comes with new political approach which leads to changes in industrial
policy. European market for raw material totally changes with increasing cost of raw material
and hence highly affected retail business. COVID lockdown again fail various strategies that
organisation supposed to implement in grocery market and it become difficult to tackle
decreasing profit share as tourist totally lost which are one of main buyer’s of this sector.
However, new government is determined to quick changes in retail firms of Britain
Tesco” not depended on European market for raw material and hence do not affected
from BREXIT while it is continuously increasing suppliers from different part of world which
help in providing product as well as service on time (Al-Ali, and et.al., 2017). Organisation
supply chain management was highly effective and during pandemic able to reach customer.
Firm mainly focuses on domestic customers and hence decrease dependency on European tourist
doesn’t affect much.
Sainsbury is not big firm and dependent on European suppliers for raw material which
affected its business and hence decreases its profit share. Organisation tries to gain local
customer by managing in supply chain management to overcome pandemic barrier.
Economical
Because of BREXIT import cost of raw material increase in country which affected
Tesco as well as Sainsbury. However, Tesco less dependency on European supplier not affected
business while Sainsbury suffers from heavy losses. Former firm increase Asian suppliers for
intermediate goods from Asian countries. Sainsbury emphasizes on manipulating Europeans firm
to reduce cost of raw material which help in following competitive price strategy. Inflation and
unemployment rate continuously rises in country because of COVID and BREXIT which
decrease purchasing capacity of grocery customers. Tesco started providing products on credit
which help in overcoming this challenges while Sainsbury trying to break customer of other’s
firm by price war.
Technological
Britain has advance technology which increase quality, efficiency and productivity of
work. Tesco is one technological updated firm which increase performance of work and
increases customer satisfaction level. Training and development programs for such types of
changes take tm which gives other organisation opportunity to expand business with same

technology. However, Firm only adopt technology changes which can work for longer period
and support sustainable development and prepare employees for that. Because of low financial
capabilities Sainsbury stuck to same business and make very few changes for technological
advancement in firma which effect on its growth. However, it emphasizes on increasing
efficiency with same system by proper training programs for employees (Altamony and et.al.,
2016).
Social
Taste and trend of buyer’s in Britain continuously changes which gives opportunity to
new product and firm in the country. Tesco’s has to make quick changes in business for it which
decrease financial capacity of firm for example: new product effect on stock of old ones which
are produce in bulk. However, organisation is now focusing on sustainable product & services
such as invested in organic product which highly impact on growth of firm. On the contrary only
provides goods which are in demand and in limited range which help in finishing its stock
timely. Organisation less visionary approach might impact on its future business and need to
develop product that are in high demand.
Legal
There are number of new legislation introduce by British government in order to public
as well employees by various firms. Employment and wages act, anti discrimination policies etc.
are example of laws that parliament use to protect employees. Tesco implemented majority of
legislation in organisation policies but effected on financial stability of country for example: fix
time for work and overtime extra money and other facilities for employees increase monetary
burden on firm. However, it helps firm in gaining loyalty of employees which increase
efficiency, quality and productivity of work. Sainsbury on the contrary implemented these
changes but because of loops in policies employees takes advantage and file cases in court.
Company has recently decrease void and effective launch laws so that no one can make wrong
allegation and also it support good workers rights.
Internal Driver
Internet drivers highly impact on organisation performance and also responsible for
making changes in strategies and planning. It includes new board of director, suppliers,
customers, investors and partners (Van der and Vermeeren, 2017). Replacement of any one of
them may to effect on growth of firm.

Board of Director
Board of director plays important role in framing goals and objectives of firm. In Tesco
there are very few time when BOD replaced old new one included. However, new young leaders
required for changing business which firm unable to meet and can effect on innovation and
creativity which are necessary for sustainable business. Organisation trying to add few youngster
in Board of director and also give opportunity to young employees for suggesting new ideas
which improve quality as well as productivity and hence increase customer satisfaction level.
Sainsbury has most of youngster in BOD which always give ideas of innovation and creativity
and hence support in growth of firm. However, because of less experience and evolution of
strategy by them affected business of firm. Firm including mentors which retired and have idea
about the field and hence contribute in growth of firm.
Customers
Customers’ plays important role in any business as ultimate profit depend on purchasing
capacity of them and hence firm try to influence them by various methods. Tesco’s buyers are
very loyal to firm as it offer variety of product at one place and support one stop habit of British
customers (Morozov and et.al I., 2017). However, changing taste and trend of customer highly
impacted on firm’s business and old stock has to sell on low prices which decreases profit share
of firm. Tesco influencing British citizens by organic product as after COVID people become
health conscious and hence support growth of firm. On the contrary Sainsbury customers are not
loyal because of limited range of product and it become difficult for firm to increase revenue and
expand business. Organisation is focusing on all form of marketing to influence British citizens
such as Facebook, You Tube, Newspaper, Radio etc. and it helping firm in gaining buyer’s for
goods and hence contribute in growth of organisation.
Suppliers
Organisation for expanding business requires raw material on time with quality and on
cheap prices and hence role of suppliers plays important role in business. Tesco has large number
of suppliers from Asian countries which decrease its dependency on European market after
BREXIT and hence firm able to increase profit share. Asian supplier remains unaltered to prices
and again after COVID, supply chain management become ineffective and hence become a
major challenge for firm (Cameron and Green, 2019). However, Tesco has European supplier too
in list which are willing to work and provide product on time which help in fulfilling immediate

need of consumers. Sainsbury supplier limited to Europe which support fulfilling immediate
customers need and hence satisfaction level. But cost of raw material is high which increase
prices of product as well as services. Organisation is trying to make connection with Asian
market which can provide product at low prices and hence it can effectively win in price war
between different firms in UK.
Part B
Kotter’s change Model
It helps organisation make changes in organisation strategy, culture and leadership so that
effectively reach to customer and increase profit share in changing business. Tesco and
Sainsbury use this model in organisation to overcome from internal as well as external drivers.
Create Urgency
Tesco facing challenges in advancing technology and hence management conversion in
staff can be highly profitable in overcoming of challenged. Leadership style also need to change
as employees needed more autonomy as well as support from employees in terms of personal as
well as professional growth (Hayes, 2018). Sainsbury also needed to overcome from external
derivers such as decreasing dependency on European market for raw material which are very
costly. It also needed more senior leaders in Board of director which have great experience in
same field and contribute in growth of firm. Organisation also has to focus on sustainable
product introduction in firm so that it can gain competitive advantage in changing business.
Form a Powerful Coalition
Organisation has chosen transformative leaders which can influence stakeholders for
implementation of changes in organisation such as creating new strategy to attract customers for
example use various types of promotional channels to attract customers and break loyal buyer’s
of other firm. Tesco and Sainsbury take confidence of all stakeholders before making strategy or
any changes and hence joint contribution help in success of it. Effective Team are constructed
with the help of it and help firm in gaining competitive advantage in changing business. It
improves innovation and creativity skills which are necessary in time of globalization.
Create a Vision for change
In this stage organisation focuses on creating a vision which can be acceptable by all
such as sustainable production inclusion and make product that are unique in nature. Tesco
vision is to increase investment organic product and make firm one of pioneer of variety of

organic product (Binci, Cerruti and Braganza, 2016). Sainsbury focusing on building online
market which are future of business as routine life effected shopping habit and people now move
towards online stores which decrease time as well as cost.
Communicate the Vision
Tesco and Sainsbury continuously in remain touch with employees and use effective
communication channels to understand problems and resolve it quickly which increase
efficiency, quality and productivity of work. Leaders explain the need of change for vision and
the way in which it contribute in growth of firm in changing business.
Remove Obstacles
Organisation has to overcome from barrier with the help of leaders as they can easily
influence employees which are resisting changing. Organisation culture must be develop
diversify so that innovation and creativity can be increased. Personal growth of employees must
be focused by company so that they remain charge and devoted for work which help firm in
gaining competitive advantage in changing business.
Create Short-Term Wins
Organisation has to set short team goals which can impact on its growth and can easily be
accomplished rather than focusing on long term achievement. Rewarding employees which
achieve target can also influence other for work and hence impact on growth.
Build on the Change
After achievement of every goals, leaders must analyse the way in which it can be
improves or make changes in future goals so that right process can be implement in firm.
Continuous improvement model can become beneficial firm such as Kaizen, JIT etc. It helps
firm in making quick changes effectively.
Anchor the Changes in Corporate Culture
Telling success stories and recognizing people who help in achieving goals can be highly
beneficial for firm. Change in ideals and values while recruiting new people can become
beneficial for firm. Creating new plans and strategy from old lesson can highly contribute in
achieving goals.

Task 2
Determining barriers to change which influence leadership decision-making
Organizational change is the process in which an organization changes its structure,
strategies operational methods, technologies or organizational culture to affect change within the
organization and the effects of these changes on the organization (Rosenbaum, More and Steane,
2018).
There are different barriers to change which influence leadership decision-making with reference
to Tesco organization are as follows -
Lack of Employee involvement – This is the most common barrier to change. Employees of
Tesco always have the fear of change. They restrain themselves towards any change that help the
company's growth and is progressive towards the goal. Therefore, they involve less with any of
the change that is initiated.
Lack of Effective Communication Strategy – Tesco has an ineffective communication process
and in such situation the top leaders assume that once they announce the change people will
adjust and be ready to get started with the new development. Hence, this is one of the drawbacks
of the company.
Bad Culture Shift Planning – The planning team of Tesco fails to make decisions based on
feelings and intuitions of the employees. This not only affects the decision power of the leaders
but also impacts the employees performance and thus the barrier to change factor takes place
which results in bad planning.
Unknown current state - Leader tries to introduce and implement change fail to recognize the
current state of the company and are more concerned towards any of the change that takes place
during that period which affects the position and employees therefore creating barrier to change.
For this, the company should recognize and analyse the internal aspects by communicating with
the employees so that this barrier does not restrain them rather drives them to achieve goals and
initiates them towards development of the organization.
Organization Complexity – Being such big organization , Tesco develops and goes for making
various complex decision which leads them to higher achievable goals but this decreases
employees engagement and employees contribution towards the company lowers as they loose
interest in working towards the change. The complexities include complex processes, products
and systems all which contribute to change barriers.

Lewin's Force Field Model is an important contribution to the theory of change
management for the organization (Al-Ali and et. al., 2017). It provides an overview of the
change problems that need to be tackled by a business, splitting factors into forces for and
against change. This model consists of two main factors, that are forces driving the change and
forces restraining it which are explained below in reference to Tesco company -
Driving Forces - Driving forces are defined as push to influence a situation in a
particular direction. They work to support a stated goal or objective (Shafiq, M. and et. al.,
2018).
New personnel management of the company drives the employees to work for their
betterment and contribute to the growth with other factors which progress in the company's
structural formation by involvement in the changing market structure and develops on new
measure of expansion of the organization (Altamony, H. and et. al., 2016). Tesco being such
large company on international and national scales of market is driven more towards the
technology which initiates the improvement in the new working patterns of the organization and
is affordable for them. This increases the competition with other companies among which
Sainsbury comes first. Pressure from the management also increases the quality of work on
employees' performance, and they provide them with incentives, thus contributing to the
driving force(Matthews, J. and et. al., 2018). Competition among the two drives Tesco to
enhance more in the market and generate higher results of excellence in the business form. By
concerning all these aspects Tesco comes up with all the drivers which not only engages it in
progressing towards the goal but also carries the internal and external factors which develops
with employees engagement and creates interest in them to grow along with the changes and the
processes that the company follows various other strategies alongside.
Restraining Forces - Restraining forces are the forces which block or counter progress
towards a goal or objective. They tend to limit or decrease the driving forces of the organization
(Van der Voet and Vermeeren, 2017). Two main aspects of restraining forces which gives the
overall analysis of the Tesco company are as follows -
Individual resistance to change – Tesco company faces this major barrier to change with the
security issues in which jobs are lost and safety is threatened along with the economic factors
consisting of lowering of income of the employees and uncertainty at performing new jobs. This

increases the fear of unknown and so the employees face selective information process in which
they hear what they want to hear and ignore information that challenges their world. Employees
of the company restrict themselves to the changes which disturbs their monotonous work. They
are more inclined towards how they have been working rather than any changes which takes
place not in accordance to their expected behaviour. Thus, they become more of self – restricted
perception rather than openly welcoming the changes that takes place.
Organizational resistance to change – The company's built – in stability is threatened so inertia
is a counterbalance to change. Limited changes in sub – systems are often nullified by the larger
systems of the company. There is a threat to expertise where decentralization occurs to the
established power relationships where supervisors and middle managers may no longer be the
main decision makers. Also, it increases the threat to resources allocated. Other reasons for
resiting change includes lack of trust, employees believe that change is unnecessary and not
feasible, relative high cost, employees feel resentment of interference, and they feel fear of
personal failure towards their performance demoralization in their values and ideals, increase in
low self-esteem, low tolerance of ambiguity and low tolerance for risk. Tesco restrict themselves
to internal and external changes which results in no growth or no development base.
Employees of the company do not understand the purpose or even the need for change. As a
result Tesco gets affected by the restraint to change and overall development factor is restricted
in the process.
Task 3
Leadership approaches to change initiative
Leadership is the ability of an individual or a group of individuals to influence and guide
followers or other members of an organization. A leader inspires other to act while
simultaneously directing the way that they act (Stouten, Rousseau and De Cremer, 2018). There
are different approaches to leadership with reference to Tesco company which are explained as
below -
Autocratic Leadership – Tesco can follow autocratic leadership also known as authoritarian
leadership characterized by individual control over all decisions and little input from group
members. Company's leaders typically make choices based on their ideas and judgements and
rarely accept advice from followers. It involves absolute, authoritarian control over a group.

Company can rely on this approach heavily and is seen that the leaders of the company are more
bossy and dictator like which results that this control has benefits and be useful in certain
situations. If Tesco tend to utilize this type of leadership with a group, and the situation in which
the style is more effective can be useful for the company as a little control over the employees is
necessary for the performance to be proven better in the external environment. Tesco will be
more directed towards the points which will provide them direction, will relieve pressure, will
provide the company proper organizational structures.
Democratic Leadership - Democratic leadership also known as participative leadership or
shared leadership is a type of leadership style in which the members of the group take a more
participative role in the decision-making process. Tesco can apply this type of leadership
approach for making the process of the work smoother and communicative rather than restricted
to self. While democratic approach tend to focus on group equality and the free flow of ideas,
the leader of the group is still there to offer guidance. Thus democratic styles is one of the most
effective type and leads to higher productivity, better contributions from group members and
increased group morale.
Laissez – Faire Leadership – This leadership approach also known as delegation approach, is a
type of leadership style in which leaders are hands – off and allow group members to make the
decisions. This approach to leadership requires a great deal of trust. Tesco must apply this type
of leadership so that creativity and innovative ideas of performing a task or the work comes out
in well refined manner as all the group members and the team members participate equally and
they take decisions accordingly.
Task - Oriented Leadership and Relationship oriented Leadership – Task oriented
leadership is a behavioural approach in which the leader focuses on the tasks that need to be
performed in order to meet certain goals or to achieve a certain performance standard. Tesco can
apply this type of leadership approach for the development of the organization by performing
according to desired goals and results which help in the overall analysation of the work criteria
and the effectiveness and efficiency of the employees can be measured. Relationship oriented
leadership is a behavioural approach in which the leader focuses on the satisfaction, motivation
and the general well-being of the team members. This approach will have the company to know
their employees more closely and identify their problems or any difficulties if they face during

the work they perform. This will also increase the trust of employees on the leaders that they are
concerned about them and will enhance in good cordial relationships.
Paternalistic Leadership - It is defined as the managerial approach that entails leader's
dominant authoritative personality who acts as a matriarch or patriarch and treats its employees
just like they are members of large extended families. Tesco should apply this type of leadership
style in which the leader considers all the employees as one family and works accordingly. This
process will enhance the behavioural patterns each one in the company follow and will be able
to know each other in consideration as the family members by taking care of the employees in
their personal and professional matters.
Kubler – Ross proposed five stages of this change management model which are
explained with reference to Tesco company as -
Stage 1 – Denial – It is usually a temporary defence that gives time to absorb any change that
happens in the surroundings before moving on to other stages (Morozov and et. al., 2017).
Tesco applies this factor as the changes in the organization takes place and to react towards any
change in the management will come across through denial. Thus, the company should be more
adaptable according to the changes that take place.
Stage 2 – Anger – After realizing that the denial occurs on the change, next the company will
face is the anger behaviour will result in the low performances of the employees and will degrade
their position (Domingues and et. al., 2019). This should not be the cause for the decrease in the
growth of company because the company runs on the employees' behaviour basis so this should
be taken care of when and where what steps to be taken to not reach in such situations.
Stage 3 – Bargaining – This stage consist of the natural reaction towards the two stages
previously mentioned. It is an attempt to postpone what is inevitable. Bargaining factor is the
stage which Tesco moves forward with considering the before effects the company has measured
and gone through the period.
Stage 4 – Depression – This stage is often noticeable at the workplace where there is change and
feel employees trouble in working for the longer time. This should be the prime solving matter
because this affects the employees overall behaviour and the internal environment of the
company is also affected.
Stage – 4 – Acceptance – As employees of the company realize that these stages will not work
as per their thought then the final stage comes which mentions that acceptance is the key.

(Bousquet and et. al., 2019). And this will be the main and foremost point in which the
employees of the company will work on their achievements and improve themselves for the
benefit of the organization as whole.

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Online
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