Organizational Change and Leadership: TESCO and Primark Strategies

This report offers a comparative analysis of TESCO and Primark, focusing on how they navigate organizational change and leadership strategies. The report examines the impact of internal and external factors on both companies, including technological advancements, market competition, pricing st...Read More

Understanding
and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Comparison between two different companies and impact of modification.....................1
P2 Analysing of drivers of internal and external factors modifications which affect leadership,
individual and team behaviours within an company..............................................................4
TASK2.............................................................................................................................................7
P3 Analysis the impact of change on employees behaviours.................................................7
P4. Explain barriers for change and analyse the way they influence leadership decision.....8
P5 State several leadership approaches ...............................................................................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................12

INTRODUCTION
Change is a process of modification in existing product and operations activities with in
an organisation in order to produce innovative product and services or effective employees
performance. It is a act to do something different which are can not do before. Organisation
change is a framework of entire organisation activities for managing effect of new working
process with in work place. It is a help to modify structure of enterprises according to needs.
Change has provide various benefits to organisation like personal growth, flexibility,
improvement, opportunities, progress, new beginning and many more. In this report TESCO are
select to know impact of change on organisation performance. It is British retail organisation that
run their business activities at multinational level (Bender, Mann and Olsen, 2011). It is a biggest
retail firm in the world on the basis of profits. TESCO has established in the year of 1919 by
Jack Cohen. In this report covers comparison between Primark and TESCO strategies and
analysis driving factors for internal as well as external environmental elements which create
impact on change with in an organisation. It also covers different barriers of change and several
leadership approaches in order to analysis impact of modification on company performance.
TASK1
P1 Comparison between two different companies and impact of modification
Modification in is a one of important tool for organisation in order to rise quality of
product and services. Management of an organisation implementing change, for this they have
contain necessary policies, rule, terms etc. which help to face competition by proper utilisation of
available opportunities at market place. In current business environment, technology has changed
rapidly that affect firm operations process positivity as well as negatively. It develop
opportunities of globalisation of product and services. Trough this, firm are selling their goods at
international level with lot of possibility that provide higher profitability in long period of time.
For this, manager of company develop strategies in order to achieve goals and objectives.
Leaders executing change at work place to run whole business activities effectively (Brundrett
and Duncan, 2011). HR executing of the firm has conducting training program to improve skills,
abilities, capabilities and knowledge of staff members in order to improve performance or
productivity. Thus increase quality of good as well as services which create positive impact on
customer's satisfaction.
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Management of TESCO focus on developing loyalty among potential clients by adding
value in their existing commodities on continuous basis. Firm has develop plan to expand their
market at international level through effective online services and ambitions. Primark is a one of
the biggest competitors of TESCO at global market. They are produce same kind of product and
services with almost same places. The main aim of primark is offer rich and high quality of
clothes. Enterprise are using strategies like cost leadership, superior goods etc. in order to secure
their position in retail industry (By and Burnes, 2013). Both Primark and TESCO have their own
plan of action to attract large number of clients for being successful business at international
market. Some external factor are affect both organisation positively as well as negatively which
create impact on changes implementation with in and out side the company. Some strategies
which create impact on both firm are explain are as follows:
STRATEGIES TESCO PRIMARK
Technology Management of TESCO are
used latest technology in order
to gain high customer's
satisfaction as well as profits.
They are develop promotional
plan for their product and
services to attract large number
of customers toward goods
(Dreher, Clinton and Sperhac,
2014). Through this, they sell
more commodities and build
positive brand image in client's
mind.
They are using Newcastle for
that use video screens. Primark
can not use latest technology at
their work place that is why
they are weak in global
presences. They promoting
their product and services
without using advanced
technology thus create
negative impact on
performance as well as
productivity. But they used
focus strategy in order to
attract large number of
customers toward firm goods.
Strategies of porter's
competitive
Current market is a highly
competitive in nature which
Management of an
organisation has used cost
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create negative impact on
organisation performance. So
that, management of TESCO
has focus on development of
core competences which help
to produce differentiate goods
as compare to their
competitors at market in order
achieve competitive
advantages effectively. It
provide high profits as well as
long term sustainability in
retail industry.
leadership strategies that help
to gain high market share as
compare to others. Thus, plan
attract large number of
customers toward firm product
and services which create
positive impact on their
performance as well as
productivity (Hayes, 2014).
Primark are also used
differentiate strategies, in this
provide specific product which
can not available at another
store, thus create high
competitive benefits form
them. That is why without
latest technology firm are able
to gain higher profitability as
compare to others.
Price TESCO use low pricing
strategies in order to sale
goods in high volume. That
provide low margin but overall
profits is very high. They also
explain this strategies in their
aim, provide commodities
which are affordable by middle
level income group (Jones and
Harris, 2014). So that,
accordingly company are
completing their whole task in
Primark used high pricing
strategies in order to earn
higher profits as compare to
their competitors of same
industry because firm are offer
higher quality product and
services as well as specific
goods which build positive
brand image as well as its high
value.
3

an effective manner.
Objectives of business Management of TESCO has
focus on hire customer's
satisfaction in order to build
strong positive brand image as
well as goodwill in potential
customer's mind. Thus increase
over all firm wealth or value.
So that main objectives of this
organisation is clients
satisfaction.
The main objectives of
Primark is gain higher profits
with low operations activities
or market share in order to
gain sustainability. They are
focus on their segments.
Changes in external factors Management of TESCO are
implementing all government
legislation in order to manage
change in an effective ways.
Management of the company
implementing change their
work process only according to
customer's needs, preferences,
demand, expectation etc. as
well as they so the same as per
their choice (Kotb, A. and
Roberts, 2011). It can not
affect by environmental
external factors.
Structural changes Employees with in
organisation making structural
change by promoting as well
as transferring staff members
one place to another.
Company are also modify their
structure on time to time basis
in order to expand their
business activities across the
boarder.
P2 Analysing of drivers of internal and external factors modifications which affect leadership,
individual and team behaviours within an company
In present business environment, firm are using open system which are high dynamic in
nature, so that it is necessary to executing change at work place in order to run whole business
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task effectively. Manager are facing various kind of issues related to external or internal
environment factors, so that enterprise are able to modify their operations process according to
clients needs and wants in order to achieve higher customer's satisfaction and profits. These type
of plan of action is important for the company to adopt strong, effective leadership style to
complete entire work.
Internal environment of firm has includes culture, systems, structures, conditions,
program and other various factors with in work place thus affect employee's performance and
productivity in long period of time. These all element may controlled by enterprises
administration, but is a not easy task for them (Krahmann, 2013). External business environment
has includes several factors like economical, political, legal, social, technological,
environmental, clients, competitors etc. All these element can not controlled by management, so
that firm want to preprepared to face these issues in their future business. Future are uncertain
and company can not able to control that, management of an organisation develop plan of action
in order manage future uncertainty at effective manner. For seeing to all internal as well as
external element affect on manager, firm are analysis things which are dependable on business
and inner inefficiencies. Enterprises want to hire skilled and capable leaders for their work and
they analysis firm internal situations in order to implementing change which are depend on
objectives, structure, field, environment, activities of the company. Essentials driving forces of
organisation internal culture are technology, finance, capabilities, poor services and product
delivery, employee's morale and many more. For TESCO, modification are required in three area
human resources, company structure and technology. Modification in human factors: It is one of the important change in which firm are
enhance their employees behaviours and beliefs. They are organising training event to
improve skills, knowledge, attitude, interpersonal capabilities etc. which affect
execution of modification with in the company (Maccoby, 2015). Management of an
organisation set new polices and regulations to help implementation process. Organisational structure changes: Management make strong organisation structure
which are implies on redefinition and regulations of policies of rule. They are divided
all departments according to their needs and wants or select best method of choosing
authority, management, middle level managers, leaders, subordinates and many more.
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 Technologies changes: Current market environment, technology are rapidly modify
which affect performance of an organisation at market. Latest technology may help to
provide high quality product and services to clients which are enhance firm market
position as well as profits. TESCO has adopting change with in organisation to rise
quality of services and its delivery.
External elements can not control by organisation, so that they are prepare plan in order
to manage future uncertainty in an effective ways. These factors are covers customers,
technology, economy, competitors, political etc. Satisfaction of customers: Each and every firm want higher customer's satisfaction in
order to gain high profits and long term sustainability. That create impact on leaders
role with in the company (MacKian and Simons, 2013). The main objective of TESCO
has gain higher customer's loyalty and satisfaction accordingly they develop strategies
in order to achieve goals in an effective ways in limited period of time. Political influence: It directly create impact on entire business operations of firm
positively as well as negatively. In positive ways, their international trade polices
provide opportunities to run business activities across the boarder with minimum
barriers. In negative ways, some time they create pressure on management of take
decision accordingly which affect organisation performance. They are also develop
legislation that Compulsive to implement at work place. Economic: Various economical factors are income, demand and supply, employment
level, inflation, interest rate, exchange charge etc. All these element may affect retail
sector and other organisation of United Kingdom. Management want to consider all
these factor in order to run business effectively.
 Sociological: Some social factors are consumers lifestyle, taste, perception, attitude,
behaviours, learning style and many more may affect company performance positively
as well as negatively. Management of TESCO are implementing change at work place
to influence operational activities.
These all element are affect internal as well as external business environment of an
organisation. This direct implementing change in firm goals, objectives, habits, structure,
strategies, culture, technology and human factors (Malone, 2013). Administration of TESCO has
develop strong communication among all employees that reduce conflicts as well as negative
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impact of internal factors. They provide training to them in order to improve all staff members
performance and productivity in long period of time. It help to motivating workers for accepting
changes in an effective ways or easily.
TASK2
P3 Analysis the impact of change on employees behaviours
For the companies like TESCO their are many tactics recommended for them by
managers to handling resistance to change in an effective ways.
 Education and communication:- Resistance can be minimized by communication with
workers to and clear company agenda s behind change. The source of resistance comes
with manipulation or poor communication. Full facts clear up misunderstanding. One on
one discussion,reports, memos, mutual trust, credibility and group presentation help
overcome impedance.
 Participation:- It is challenging for employee to resist a change judgement in which they
actively take part (Miller and et. al., 2013). In company, assuming that the participation
can make meaningful clarification and employees involvement can reduce barriers for
change.
 Facilitation and support:- In an organization where employee anxiety and fear are
higher -worker's guidance and therapy, new skills training or short paid leave of obscene
may facilitate improvement but this tactics is expensive, time consuming and offer no
assurance of success.
 Negotiation:- This method may be essential when resistivity come from a almighty
group . The risk behind this is that once a change representative negotiates with one
organization to avoid barriers during change, he is unfastened to take chances of being
blackmailed by other individuals those position are in power. Manipulation and co-optation:
1. Manipulation :-Refers to determinative attempts, falsification as well as distort
facts to make them happen, more lucrative, subtraction adverse content, creating
mendacious rumours to get employee to accept change in an specific period of
time (Ryan, 2013).
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2. Co-optation:- refers to both manipulation and participation in change process.
Both these methods are not expensive and easily to increase support of
individuals, but it may adverse if the target became cognizant then they are being
tricked in order to achieve their goals and an effective ways.
 Coercion: This is the method which includes of direct threats or force upon the resistance
during change process for eg. threats of transfer employee, negative performance
appraisal and job loss etc. The advantage and disadvantage of coercion are the same as
those of manipulation and co-optation.
 The “A VICTORY” Model:-
The acronym “A VICTORY” focus on factors important to successful implementation of
change and serves as a review of the ideas behind change.
 Ability:- what major abilities and weakness of the company and its members with
related to change? are the essential resources and ability are available.
 V- Value – how compatible are administration attitudes and activity with the firm
as well as employee's values, cultural norms are requires by changes in order to
manage all workers in an effective ways.
 I-Idea information- Complex information related to proposed change with in
enterprises should be provided as simply as possible so that firm are able to gain
higher profits (Wellman, Jeffries and Hagan, P., 2016). The explanation and needs
for change should be understand by all employees with in an organisation.
 C-Circumstances- Various kind of factors with in the company may affect the
acceptance as well as execution of change among all staff members.
 T-Timing- Management has proposed business active to implementing proposal
of change related to time.
 O-Obligation- manager take relevant decision in order to perceived need for
change and also analysis that they ready for this or not.
 R-Resistance- Management of an organisation are find out the level of resistance
to change and prepare to overcome from this in an effective manner.
 Y-Yield- company are find benefits of the change for their business activities.
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P4. Explain barriers for change and analyse the way they influence leadership decision
Organizational change and dew efforts are typically associated with a variety of goal,
philosophies and terminology of top management of the company. The change process can be
introduced into a department, segment or entire organization any numbers of ways. Leaders aim
to at making the employee of the company more adaptable to the anticipated or present
environment (Whitney and Cooperrider, 2011). There are following barriers which occurs during
implement change process.
 Resistance to change: Single sources of opposition to change reside some basic human
characteristics like perception, attribute, security, economic factors etc. so person may
resists to change directly and indirectly manner. In this process there are numbers of
external and internal factors which create barriers in change process. TESCO company
top management may use PESTEL analysis approaches to identify the actual factors
which employees considers as barriers at there workplace.
 Fear of unknown: Changes substitute of ambiguity and uncertainty with in enterprises.
Workers in an organization hold disfavour uncertainty due to technological change
employee can lose their job and they will have to learn new skills and how can employee
fit in changeable environment. In this leaders will play an important role to build
confidence in employee through communication and participation at various level
decision making.
 Complexity: Employee's think that change is a complex process . Quality of change is
consider as important barrier of accepting modification in work process with in the
company. Managers decision has influenced by complexity of alteration. When
management develop strategies and plan related to change then leaders face complexity
to execution of change within team members. Management of TESCO may used
proactive approach to develop change policy in order to reduce complexity of alteration.
So that, for this they have involved all employees in implementation process of
modification and consider their thoughts while take decision with in limited period of
time.
 Competitive Forces: Competitive forces refer as driving forces which force firm to adapt
change in dynamic environment these factors are economical, technological, social,
political, legal and structural changes etc. Those factors arise anxiety and uncertainty
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among employee due to job security and their rigidity to adapt and learn new things. At
this level top management of company detailed analysis the SWOT factors of the
company.
 Integration: In large organization management of change is more complex as compare to
small level. Every organization want to accept modification at work place to sustain at
competitive era. When occurrence needs of change in the company then modification are
happen in business structure then behaviour of employee's towards it they resist to
change. Enterprises are utilizing long run change at work place which provide
combination of all point which resulted to failure. TESCO are examine all integrated
elements, so that they overcome form obstacle of modification at work place.
After formulating the change process strategy at the time of implementation
administration aim to motivate and make the individual ready to adapt change. They lead to
breaking down of folkways, custom and traditions and the old ways to doing things so that
individual are ready to accept new alternation.
P5 State several leadership approaches
Different organization applied different leadership approaches to adapt and manage
change in organization. This process vary from one organization to other due to different
internal and external factors (By and Burnes, 2013). At every level of organization requirement
of leadership are different so that enterprise's strategist may use various kind of leadership model
for according to current environment. Important leadership approaches are explain as follows:-
 Trait leadership approach:- It is known as systematic formulation of leadership with in
an organisation. According to situation requirement company management identify
leadership traits so that firm has used trait for executing change at work place. This
attribute has constitutional attributes of leaders to deal with modification and achieve
target. Some important leaders traits is manage alteration of role and responsibility of
employees at work place. It is a good intra-personal and communication skills, self
confidence, cognitive ability, knowledge about current position of the company, honesty
or integrity etc. Accordingly change requirement at work place TESCO examine their
leaders attribute traits at every level of organization and they organising training and
development events for managers in order to build important traits to executing
modification and focus on those factor which identify important during this process.
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 Situational leadership approach:- Leadership style is vary from one situation to other.
In this competitive environment where change is unavoidable management must keep an
eye on those factors (opportunity and threats) which can use as weapon to achieve goal
and build an image like brand. Condition of the business environment has five elements
which are related to structure of social relationship among employees, characteristics of
team or group environment, perceptual content with abstraction and between its members
etc. Company's management are developing and implementing modification plan of
action accordingly to market situation (Brundrett and Duncan, 2011). This approach are
divided into four style:
 High directive-low supportive
 High directive – high supportive
 Low directive – high supportive
 Low directive – low supportive
From above, management of TESCO has used low directive – high supportive as well as
high directive – high supportive leadership style in a given situation. So that leaders easily adopt
changes and give a correct path to the company.
 Transactional leadership approach:- In year 1947 Max Weber has given this approach.
In this manager focus on function or role like short term planning , organizing, directing
and controlling. In this leaders motivate and direct their staff members with own self
interest which enhance productivity and performance. According to this, leaders have
some followers and they influenced their behaviours, all staff members are obey their
instruction if direction do not follow a punishment will be given (Bender, Mann and
Olsen, 2011). So that, in this model leaders can not do large effort to enhance creativity
and generation of new as well as innovative ideas that help to achieve competitive
advantage as compare to their competitors at market place. TESCO has used transactional
approach for lower level employees with in firm.
 Transformational leadership:- According to this approach top management of
enterprises has communicate information related to vision, mission, goals and objectives
11

and purpose behind present change process with their employees so that achieve
objectives effectively.
Transformational leaders are able to change system they learn from their experience, face
challenge and believe in innovation and creativity and they build confidence in employee to
adapt change. For TESCO Company this is best leadership approach to manage change in
organization from their out of box thinking.
CONCLUSION
From the above report it is concluded that change is a one of the most important tool for
organisation to run whole business activities in an effective ways. Through this, BBC as well as
Primark both are face problem of implementing technology at work place which affect their
performance. Management of BBC has established strong communication process with in an
organisation so that internal elements are easily manage. Transactional leadership approach is a
most important tool to executing change with in work place.
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