Understanding and Leading Change: A Report on Tesco and Primark

This report provides a comprehensive analysis of change management strategies, focusing on a comparative study of Tesco and Primark. It delves into the impact of change on their operations and strategies, examining both internal and external factors that influence leadership, individual, and team behaviors. The report highlights measures taken to minimize the negative impact of changes, discusses barriers to change and their influence on leadership decision-making, and explores various leadership approaches to deal with change in the workplace. The analysis covers aspects such as technology adoption, competitive strategies, and the role of customer satisfaction and external factors like political and economic influences. The report also emphasizes communication, managing resistance to change, and training and development programs as key strategies for successful change implementation. Overall, the report offers valuable insights into the complexities of change management within the retail industry, providing a framework for understanding and leading organizational transformations.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparing two different companies and impact of change on their operations and strategy
.....................................................................................................................................................1
P2 Analysing of drivers of internal and external factors modifications which affect leadership,
individual and team behaviours within an company...................................................................3
P3 Measures taken to minimise negative impact of behaviours on companies changes............4
TASK2.............................................................................................................................................6
P4. Different barriers for change and the way they influence leadership decision making
process ......................................................................................................................................6
P5 Explain various leadership approaches to deal with change at work place ...............7
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Changes is a very import factor for an organisation. This is a process of causing a
function, activity or things to become different compare to present and past situation. Through
change, company has upgraded their performance and increase profitability for long period of
time. Today in the modern world, technology has rapidly changed with time and so, it is
necessary for a firm to adopt change at workplace. New technology innovation, deregulation of
market and demographical change are compulsory for an organisation that enhances leadership
qualities and skills so firm carry on their work in right direction. TESCO is a British
international retail firm with having its headquartering located in Welwyn Garden city, UK.
TESCO has 2500 stores in all over 12 countries (Bender, Mann and Olsen, 2011). Primark is a
retail store located in Dublin. They have run their business activities with 350 stores in all over
UK cities. Change is the process to enhance overall productivity of employees and gain
competitive advantage in market place. In this report, different strategies of change and various
leadership approaches are explained as well.
TASK 1
P1. Comparing two different companies and impact of change on their operations and strategy
Changes in an enterprise contains necessary procedure change, terms and policies, which
is require to face the competition by utilizing development opportunities of market. Many firms
and their team’s members are facing rapidly changes in whole operations of business because
opportunities of market had increased globalisation for their revenue and growth. Managers and
leaders of a firm are having abilities of managing changes and meeting shareholder’s needs.
TESCO is successful and its main target is to earn loyalty of customers by adding value.
Firm uses strategies to expand and drive growth in the market of international are, “strategies of
overseas are ambitious and services are delivered online successfully”. Competitor in this
domain is Primark which is having involvement on a same industry with a same product.
Primark main mission is to give rich and high clothes quality. Enterprise are using strategies for
securing its position in retail industry are, “determine product and cost leadership” (Brundrett
and Duncan, 2011).
TESCO and Primark are having their own strategies to affect their customers for being a
successful retailer of international market. The external factors are having impact on changed
strategies. The below table discussed about impact of change in both organisations as:
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STRATEGIES TESCO PRIMARK
Technology It has roll-out their technology
across estate is tap and tag for
customers to get their receipts
in a digital way as TESCO is
using a latest firm technologies
and promotional strategies for
products of markets.
They are using a store of
Newcastle for that they are
using a screens of video. This
company is not using their
technology advanced as having
a tool of promotional of their
services and product have
focus on its area.
Strategies of porter's
competitive
Competition market is very
intense which influence
industry of firm negatively, so
enterprise needs should focus
on its area for gaining an
advantage of competitive level
in an effective manner (By
and Burnes, 2013).
By cost leadership
implementation and strategies
differentiation of it will
provide an advantages of
competitive in a very effective
way.
Price Product price are offered by
firm are so low-priced and fair
to all middle level population.
Price of this firm are higher as
compared to others sectors of
retail because they are
providing quality of their
material at a high level for
their products.
Objectives of business Satisfaction of customers is an
important objectives of
TESCO.
For being in sustain in market
and profitable are having their
enterprise important
objectives.
Changes in external factors Firm’s management are doing
changes in their systems as per
government legislations.
This firm are bringing changes
only on bases of customers and
exception of their choices are
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not affected by the factors of
external.
Structural changes Workers of a firms are making
their structural changes by
transfer of workers in other
post (Dreher, Clinton and
Sperhac, 2014).
For expansion of their
industry, it has also adopt
enterprise structure
modifications as well.
P2 Analysing of drivers of internal and external factors modifications which affect leadership,
individual and team behaviours within an company
In present times companies are open systems and much dynamics so, it is necessary to
accept changes for maintaining its existence. Leaders and managers of every firm are facing
many factors which are require and recognize an response immediately. Factors such as internal
and external which help in modification of enterprise and forces that cause modifications. These
kinds of changes are important for organisation to adopt a leadership effectively for doing
arrangements of firms.
Environment of internal are dealings with situations, structures, systems, events and
factors within a enterprise which are controllable by companies and external factors of firm are
uncontrollable by organisation which includes such as economy, technology, customers,
competitors and many more factors. For seeing all these factors affects on leaders and managers
are analysed to over see into inner inefficiencies and things that cause are not dependable of
firm. Required skills by leader in the qualities of leadership while having a time of changes
within an enterprise are depend on field activities, objectives, environment and structure of
company (Hayes, 2014).
Important driving forces of internal are culture of firm, management of finance, poor
delivery, workers morale and technologies capacity etc. For an TESCO organisation, changes of
enterprise are observed in three fields like company structure, technology and human factors. Changes in human factors: It is a major modification in behaviours and beliefs of an
firm which affects on modifications of knowledge, attitude and skills of employees
within correlation with new set of policies in management.
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 Organisational structure changes: It implies on regulations and redefinition of roles
of company and its relations. It make structure changes by using methods such as
choosing of central management, authority of determining of making decisions etc.
 Technologies changes: Its changes are speedily so, TESCO are adopting modifications
of technologies to raise production quality.
External factors are occurred outside the organisation which are not in control these
factor involves such as satisfaction of customers, competitors, technology, economy, political
influence etc (Jones and Harris, 2014). Satisfaction of customers: It is an one of an important factor which impact on leaders
roles within a organisation, for any industry customers are treated like a god. For
gaining customers satisfaction and loyalty of an customer are important objectives of
TESCO. Political influence: It directly give impact on the functions of business operations of an
firm and organisations of retailers by political legislation and democratic government. Economic: Rate of deflation and inflation, income and employment level, competitive
demand are some of an factors of economically which affects factors of industry and
others firms of united kingdom.
 Sociological: Customers preferences, taste, social, lifestyle and social interaction are
some of an factors of social which influence on organisation operations such as
TESCO.
On searching of all factors, in order to say that every modification lead to transaction.
These factors directs to modifications in objectives and strategies, culture, habits, technology and
structure and factor of human. For adopting all the modifications in TESCO successfully, firms
leaders search a compelling reason, employees work for an one goal, effective network of
communication, etc. they should give their employees training for motivating and preparing them
for accepting of changes easily (Kotb and Roberts, 2011).
P3 Measures taken to minimise negative impact of behaviours on companies changes
Modifications in operations and strategies of every industry is not so easy for managers,
team members and leaders works should be successfully implemented. While changes need
thinking in a new manner and doing a task. It gives a negative impact on organisation, employees
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may lose their security sense or reactions may be unpredictable and immense. For eliminating all
negative impact, TESCO mangers are taking these steps which are discussed below: Communication: Interaction between management and workers are clear then it will be
an company strength, input of workers will mainly affect in which manner they are
implementing changes at a level of department. So, they should make a communication
with their workers about new initiatives and changes. Manage resistance of change: It will help managers to decrease the changes resistance
which organisation want to introduce. For managers, origin of modifications doesn't
matter as it pop up at any point in firm, so it is an managers responsibility for
implementing all modification successfully. Managers should plan that how they will
introduce their changes to employees which are doing to establish within an organisation
(Krahmann, 2013). Link the changes with others problems that employees care about: By showing
employees that changes of industry operations and strategies of an firm are linked with
health, security of job and others things. It will help employees to grow career as it can
be a fresh market demand. Changes into workers desire to avoid loss: It is an fact within all human beings which
are more sensitive to loss when it will compare with a gain. By telling a changes in
motives of profit in enterprise to employees, tell them a negative impact which can done
on their career and job it will not accept changes. Marketing strategies in TESCO: They should market a fresh strategies of business to all
employees by explanations of new plans to every teams members in a way by which that
changes will make are work more easy and better. Training and development programme: Compulsory strategies changes will effect
whole system of working of all employees and business operations, they should give
them a proper programs of training and development of all employees to enhance their
knowledge and skills are required for changes implementation successfully.
 Measure employee performance: Organisation management have to tie compensation
and implementation successfully. Managers should measuring performance in whole
year and gives feedback to provide them promotions and rewards or providing bonus
(Maccoby, 2015).
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TASK2
P4. Different barriers for change and the way they influence leadership decision making process
Changes in organisation function and process are not easy. Company's management has
face many problem when they implementing changes at work place because employees are not
ready to change their work process. Changes are very from firm to firm reason some company
has innovative in nature and some are stuck in the same old patterns. It is very important for
company management that they have analysed barriers of change at work place, so that they
easily implemented change. Some most common barriers of change are as follows:
Resistance to change: People or employees are not ready to accept change easily. Person
may resist to change directly and indirectly, they think change is an ongoing process so that
make life worse. Some employees are accepting lower salaries and payment to get into company
those are stable. Internal and external environment are creating resistance to change at work
place. TESCO has analyse their work environment to find out the main reason for resistance to
change (MacKian and Simons, 2013). For this they may use PESTL analysis approaches to find
out change barriers in external environment and analysing employee's, competitors, suppliers etc.
for internal environment.
Unknown current state: Many time employees or people can renovate their work
process without seeing at the existing blueprints. So that some time person has not aware about
current situation and take action according to their way. In result organisation has face many
problem regarding their existing blueprints and current states. TESCO has renew their blueprints
on time to time bases. So that they can easily handle current situation. They have make strategies
according to needs and wants.
Integration: Management of change at large organisation has more complicated compare
to small companies. Every organisation are accepting change at work place for achieving
particular goals and objectives. When change happen in business structure then employee's
turnover will occur parallel. Firm are implementing long run change at work place that have
integration of all point which result to failure prone. TESCO are analysing all integrated factor so
that they overcome form barriers of change at work place (Malone, 2013).
Lack of employee's involvement: Organisation has implementing change at work place
and employee's are not ready to accept this change and they can not participate in firm change
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planing and strategies. That is the firm responsibilities to save interest of workers ny listening
their opinion and thought. TESCO has involve their employees in their decision on change at
work place. Through this activities they motivating workers which enhance employee's
performance and productivity.
Competitive forces: Many common external forces like technological change,
innovation, economical and social culture factor, external scourge, market conditions are drive
organisation change. When competitor has introduced new innovative product at market place
then its create high risk for the firm. TESCO may use PESTL analysis approaches to find out
change barriers in external environment and analysing employee's, competitors, suppliers and
over all market conditions.
Complexity: Complexity of change is a fundamental barrier of accepting change at work
place. Through implementing change at work place many complexity related to work process
and employee's behaviour are arises. Employee's or person think that change is a complex
process or system. Leaders decision has influenced by complexity of change. When management
make or plan change strategies then leaders face complexity to implementing change with in
team. TESCO may use easy change policy at work place for reducing complexity of change. So
that for this they have involve all team leaders in decision making process of change (Miller,
2013.).
P5 Explain various leadership approaches to deal with change at work place
Organisation has use leadership approaches for dealing with change at work place. Every
team leader has know their team members behaviours toward change to that accordingly
company are selecting leadership model. Requirement of leadership are different at every level
of organisation so that company's management may use several leadership model for every level
of organisation. Some important leadership approaches are as follows:
Trait leadership approach: It is a systematic approach of leadership. Company may
identify leadership traits according to situation requirement, so that firm has use this traits for
implementing change. This traits has inherent quality of leaders in order to deal with situation.
Some important leaders traits for executing change at work place are provide motivation, good
communication skills, cognitive ability, self confidence, knowledges about business activities,
honesty or integrity etc. TESCO analysing their leaders personality traits at every level of
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organisation and accordingly they execute change at work place. They conduct training and
development program for leaders for build some important traits to implementing change (Ryan,
2013).
Situational leadership approach: Different situation demand different leadership style.
Situation has generally five elements structure of interpersonal relationship, characteristics of
groups or group environment, perceptual representation with group and among its members etc.
Company's management are planing change strategies accordingly to market conditions.
Through which Organisation are able to manufacturing goods and services for full fill customers
needs and wants. Leaders should have complete knowledges about employee's professional skills
and behaviours towards change. Management has communicate all situations to employee's in
order to modify work process and required change. This approach are classifies leadership into
four style:
 High directive-low supportive
 High directive – high supportive
 Low directive – high supportive
 Low directive – low supportive
TESCO has use High directive – high supportive and low directive – high supportive
leadership style in a given situation. So that they have easily motive their employee's toward
change.
Transactional leadership approach: This approach has introduced by Max Weber in
the year 1947. This model may focus on manager function or role like controlling, organizing
and short term planning. Accordingly to theory leaders motivating and directing to their
employee's with their own self interest. Leaders have some followers and they obey instruction
if he does not go as per leaders direction, a punishment will follow. In this model they do not
make effort to enhance creativity and generation of new ideas. TESCO has use this approach for
empowered leaders so that leaders give reward to their member according to performance in term
of money as well as punishment (Wellman, Jeffries and Hagan, 2016).
Transformational leadership: According to this approach company's manageable has
inform their employee's about vision, mission, goals and objectives. So that every leaders has
done their work according to current situational requirement in order to gain firm goals and
objectives. Transformational leadership are also called quiet leaders. Their style tent to use
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kinship, inspiration and empathy to engage followers as well as employee's. Transformational
leaders are ability to change system, love to face challenges and learn form their experience,
increasing their team members ability and capacities. TESCO has build transformation
leadership model in their leaders for increase their team performance and productivity in order to
achieve organisation goals and objectives.
CONCLUSION
That is concluded when change are implementing at work place its create impact on
organisation strategies and operations. TESCO and Primark both has face this problem,
technology are important factor those create high impact on both companies strategies and
operation. So that TESCO may establish good communicate network for minimising negative
impact of change on organisation behaviours. Its concluded that leaders decision-making are
influenced by market situation. Company's management has analysing their internal and external
environment factor to overcome form barrier of change. For implementation of change they have
analysing requirement of leadership style. Transactional leadership approach are most
appropriate for execution of change at work place. TESCO has use this approach most of the
time for executing change in order to gains pre determine goals and objectives. So that change
are very important for an organisation to gain long term profitability and provide latest
technology or innovative product to their customer in economic price. For this they have
manager change in their work environment.
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