MD3415 - Evaluating Strategic Change Management at Tesco

This essay examines the strategic change management process within organizations, using Tesco as a prominent case study. It delves into the importance of change management, particularly in response to market competition and technological advancements. The essay analyzes Tesco's implementation of self-checkout systems, exploring its strategic benefits, such as improved customer satisfaction and operational efficiency. It also addresses the challenges, including employee resistance to change. The analysis incorporates relevant academic theories and models, such as Lewin’s Force Field Model, to evaluate the effectiveness of the change management strategies. Recommendations are provided to enhance future change initiatives, emphasizing the importance of employee training and customer service. The essay concludes by highlighting the significance of strategic change management for organizational growth and competitiveness.

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Introduction
The essay throws light on analysing the importance and the entire process of
successfully implementing the change management aspect in the organizations. In the current
scenario, the different organizations face different kinds of changes such as restructuring of
the organization or launching of new product. As commented by Boyd et al. (2017), in such
scenario, the strategic change management is defined as the process of managing the different
changes in structured and thoughtful manner which will be helpful in meeting the
organizational objectives, goals as well as missions. The change is one of the most necessary
objectives for the different organizations to continue towards thriving and meet along with
exceeding the competition of the different industry competitors in the market (Burnes and
Cooke 2018).
For instance- If the Mary’s markers are making the different kinds of permanent
markers, however on the other hand, the top competitor Wally’s writing Utensils will be
selling both permanent and temporary dry-erase markers. From the respective example, it can
be analyzed that in order to beat the different competitors, Mary requires to lead the company
through inclusion of change of selling the dry erase markers to remain competitive.
Overview of Tesco
Tesco Plc is one of the British multinational groceries along with general merchandise
retailer which is headquartered in the United Kingdom. In the year 2008, Tesco became the
fourth largest retailer in the entire world in comparison to the competitors through selling and
specializing in drinks and food related items (Tesco.com 2019). Moreover, the company was
found in the year 1919 and the founder of the company is Jack Cohen and the number of
locations wherein the company has their presence is 6563 stores. Furthermore, the revenue

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which has been earned by the company is £57,491 million till the year 2018 and the number
of employees working in the organization is 460000 till the year 2017.
Impact of Change Management in Organizations
There are different organizations which are able to compete successfully in the
competitive business environment that is properly characterized through globalization of the
economy, exploding of the information technological aspects, restructuring as well as new
employee-employer relationships which will be making significant changes in the way the
companies operate. In the current complex business environment, the different companies
face various kinds of challenges which can affect their approach in managing the operations.
As opined by Cameron and Green (2015), changes can be realized in number of areas which
can be inclusive of the technological change which is systematic and it is defined as the
integrated approach.
Furthermore, as opined by Cummings, Bridgman and Brown (2016), with the help of
the strategic change, the different organizations obtain different benefits which helps the
company along with the employees to adjust with the respective change and gain profitability
in the market as well. However, in the present scenario, Hornstein (2015), has opined that the
main challenge which is being faced by the managers is to manage the change successfully.
In order to stay competitive in the businesses environment which is complex, the different
companies need to assume the compound changes with the increased speed as well as
effectiveness.
Moreover, as opined by Doppelt (2017), the motivation for change stems from the
respective fact that the something is not working such as continuance negative feedback from
the customers or reduction in the profitability of the organization or other related pressures.
As commented by Kazmi and Naarananoja (2017), for few organizations, the crisis is defined

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as the catalyst of the change and the crisis may be sufficient in initiating the change. In
addition, the different managers must have proper as well as extensive knowledge of the
overall marketplace, along with competing in the market to make the company successful in
the competitive business environment (Pugh 2016).
Significant Strategic Change at Tesco
As analyzed from FinancialTimes.com (2019), the organizational change is defined as
the ability in adopting the different transformations in the organizations suffered by the
environment both outside or inside through learning. In analysing the respective scenario, the
respective organization Tesco has come across a significant kind of change in the terms of
introduction as well as implementation of the self-check out system throughout the network.
It has introduced the new payment method which will be beneficial in attracting more
customers towards the recent change and meet the different expectations appropriately.
It is considered to be one of the most strategic planned change which has been able to
improve the brand image of Tesco in an appropriate manner. The main reason was that self-
check out system is the new type of system which differs from the normal or the traditional
payment systems in terms of carrying out the various transactions of the customers who
have visited Tesco (Gorelick and Zheng 2015). The cash payment which was followed by
Tesco required operating the same through teller, however the self-check out system does not
require any cashier in carrying out the different transactions. The self-check-out system is
helpful for the company as well as employees in bringing out the new kind of procedure
which will be beneficial in facilitating the different customers and improve their experience
(Harding 2017).
The usage and implementation of the new self-check out system helps Tesco in
serving the different customers in a better manner without having to spend more money in the

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store. The shopping experience of the different customers of Tesco has helped in shopping
and gaining excellent experience which helped in increasing the overall productivity and the
profitability of the organization in a positive manner. The respective approach was
undertaken by Tesco in making the customers feel that they are the most essential part of the
company and the different customers in the store will be selecting the shopping from the
respective shelves and move to the self-checkout, scan themselves and pay for the different
products which have been bought by them. The intended effect of the same is the actual
synergy of both the self-check-out along with cashier checkout (Hayes 2018).
Impact of Change Management in Tesco
Moreover, in the present scenario, Tesco has confronted substantial change which has
been able to improve the satisfaction among the customers. Due to the strategic change of
self-check-out system, it can be identified that it was a significant and creative approach
which helped the customers and it satisfied the different needs of the customers in an
appropriate manner. The customers were happy with the change as they did not have to wait
in the queues for the different kinds of purchase of the products from Tesco stores (Vaghefi et
al. 2015).
However, on the other hand, due to the rapid strategic change which took place at
Tesco, affected the different employees as there was resistance to change among the
different employees which affected the overall productivity of the organization negatively. It
was noticed that higher management of Tesco did not inform the employees regarding the
respective change which affected the morale of employees and they did not perform
effectively as well (Wirtz et al. 2016). The workers were affected due to the lower level of
the job satisfaction and they did not perform well in the different tasks which were assigned
to them as well.

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On the other hand, there has been increase in the overall sales of the company Tesco
as the main focus of the company is the customers and Tesco being the leading international
retailers, the company has currently 3000 self-check outs in more than 750 stores. It is one of
the great improvements since the implementation of the self-checkout option in the company
and it attracted more customers in the market as well. Moreover, the other factor which has
been successful in case of self-check-out system is that the good customer satisfaction and
service that has helped them in improving upon satisfaction and gain competitive advantage
in the market (Wojciechowski et al. 2016).
On the contrary, in case of the employees working in the organization, it can be
identified that they were not aware about the entire process of the self-check-out system that
affected their morale and it decreased the overall productivity negatively as well. Due to such
issues, there has been resistance to change among employees that affected the profitability of
the company negatively and the employees could not accept the respective change open
heartedly as well. In such scenario, Tesco could have implemented the change management
model which will play a major role in improving the overall scenario and the employees
could have felt motivated.
With the implementation of Lewin’s Force Field Model, it will be beneficial for Tesco
to manage the strategic change process appropriately along with including the employees in
the process of change as well. During the decision-making aspect, the viewpoints of the
employees are required to be considered as they can be beneficial in improving the different
aspects and it will be appropriate for the overall change management process in an accurate
manner (Wojciechowski et al. 2016). As per the respective model, the equilibrium is required
to be balanced and planned in an even manner to bring out the change. It can be done and
performed through strengthening the force to change or weakening the forces against the
change. Lewin helps in postulating a model which includes the following aspects:

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Firstly, Unfreeze is the aspect wherein the process will be beneficial in awakening the
need for the required change and it can be done through informing the different employees
working in the organization which will help the company in including all employees in the
process and make the process effective in nature as well (Vaghefi et al. 2015).
Furthermore, change is the aspect wherein the proper development of the new
responses is properly based on the new information and it is helpful in making the employees
feel that they are the part of the process. In such scenario, the change process will be
informed to the management officials in the organization.
Lastly, refreeze is the other aspect wherein the change will be stabilized and it will be
accepted by the employees working in the organization who will be providing their opinions
regarding the entire process of change and it will be helpful for the higher authorities to
understand the loopholes and they can improve the same effectively.
Therefore, with the help of the respective model of Lewin’s Change Management, it
can be helpful and beneficial for the company Tesco in implementing the change and there
will be no such resistance to change among the employees which plays a major role in
improving the overall scenario in a positive manner.
Recommendations
Therefore, from the above analysis of the strategic change management of Tesco, it
can be analyzed that strategic change management is one of the most essential processes
which will be beneficial in bringing changes which will be successful for growth of company.
The different recommendations which can be provided to Tesco includes that after the
introduction of the self-check-out system, the company needs to appoint officials who will be
available in solving the different queries of the customers while check out and it can be

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beneficial in improving the overall system and make it more effective in nature as well (Pugh
2016). There should be inclusion of upgradation of the system that will be beneficial in
improving the overall scenario and the strategic change management process will be more
successful in the future time frame as well. Moreover, the employees are required to be
trained in such a manner that will be beneficial for handling the queries of the different
clients and provide them with positive services which will be of huge success for the growth
of the firm.
Conclusion
Therefore, from the above analysis of change management process of Tesco, it can be
identified that the self-check-out system has been well-received by the different retailers
along with the customers present in the market, it can be concluded that the strategic change
management process is of great help for the customers and it helped them in improving the
overall scenario in a positive manner. On the contrary, there are different difficulties which
are being faced by the employees working in the organization as there are different kinds of
resistance to change among employees wherein it affected the morale of employees and it
affected the overall productivity negatively. With the inclusion of different recommendations,
it will be helpful for Tesco to successfully implement changes and improve the scenario in a
positive manner.

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