Understanding and Leading Change: UK Retail Sector Report

This report delves into the critical concept of understanding and leading change within organizations, particularly focusing on the UK retail sector. It begins by examining the impact of change on the strategies and operations of prominent retailers such as Tesco, Sainsbury, and Unilever, utilizing PEST analysis to identify key drivers in political, economic, social, and technological environments. The report then evaluates how these changes affect leadership, individual behavior, and team dynamics within these organizations. Furthermore, it explores the application of the force field theory to understand the forces driving and resisting change, proposing strategies to mitigate barriers. Finally, the report discusses the implementation of intended changes, analyzing how change models can be used to achieve organizational objectives, and concludes with a summary of the key findings and implications for effective change management in the retail industry.

Understanding and leading
change

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 .................................................................................................................................................3
Comparing the ways in which change impacts UK retailer’s strategy and operations................3
Conducting PEST analysis for each case study to identify key drivers:......................................3
LO2................................................................................................................................................11
The evaluation of the ways in which change will impact leadership, individuals and team
behaviour....................................................................................................................................11
LO3................................................................................................................................................14
Brief discussion of the force field theory...................................................................................14
Examples of real changes that are being introduced by the organisation..................................15
Explaining the resisting forces (barriers) and also the driving forces for the change and giving
numbers from 1-5 depending on the strengths of the forces......................................................15
Discussing ways by which the company can reduce the resisting forces/barriers.....................15
Illustrating that organization can achieve their objectives as the barriers are reduced and
change is implemented...............................................................................................................16
LO4................................................................................................................................................16
Discussing the intended change and drivers for the change and discussing how this change will
help the company.......................................................................................................................16
Performing the change model to understand how the change will implement and help the firm
....................................................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES................................................................................................................................1

INTRODUCTION
Understanding and leading change is the concept of updating the functioning of the
organizations according to the new demand, new technology and the new world. The world
today is completely different when compared to the times, earlier. So to update the functioning
has also become one important thing as it is the only thing through which, the organization can
be successful. With the evolution of time, every other thing that used to exit on the globe is
exiting in a much different manner now. But as the changes have taken place, it is very important
to first understand the change, what kind of changes should be made, where the changes should
be made and then the changes must be implemented in the organization, in order to get a good
result. To understand and to lead change it involves 6 steps namely: preparing the organization
towards the change, crafting a vision for the change, planning the steps to be taken,
implementing them, embed the changes in the culture of the organization and lastly reviewing
them. Here, in this report different organizations from the retail sector is taken for example:
Unilever, it is an international organization of London, Tesco, a multinational company of
England and Sainsbury, an organization of London. The following report will present changes
that have taken place in the political, social, economic and technological environment, the
implications of these changes on the organization's strategies and operations, the impact of these
factors on the teams and leaderships of the organizations, force field theory and the discussion of
how these changes can be implemented in the chosen organization.
LO1
Comparing the ways in which change impacts UK retailer’s strategy and operations
Organization selection: The total value of retail outlets in the UK in the year 2021 is £421
billion. Hence, the selected organizations are from retailer industry of UK such as Tesco Plc,
Sainsbury and Unilever. In order to identify the key drivers for change that is occurred within
different organization of retail industry, the PEST analysis is one of the best way (Neumann,
James and Vince, 2019).
Conducting PEST analysis for each case study to identify key drivers:
PEST analysis is a management model or framework which specify the political,
economic, social and technological external factors and their impact over the organization
performance. With the help of PEST analysis, the organizations able to analyse the factor which

are creating opportunities and possess threat for them. This also benefited the company to assess
those changes impact over business (Wolberger and Goldman Schuyler, 2018). If the change
impact is positive than it should be capitalize and if there is negative change than it would be
minimized via appropriate strategy adoption. The PEST analysis of Tesco Plc, Sainsbury and
Unilever Plc are as follows:
Factors Tesco Plc Sainsbury Unilever Plc
Political
factor
 The import duties
have increased
due to Brexit.
The impact of
which Tesco face
difficulty in
exporting goods
to another
country.
 The unstable
taxation has
further enhanced
the cost price as
well as selling
price of Tesco
products
(Wolberger and
Goldman
Schuyler, 2018).
 The Brexit has
created more
challenge for the
supermarket such
as Sainsbury to
import products
from foreign
market.
 During covid-19,
strict rules and
temporary
restriction has
poses treat for
Sainsbury sales &
profit.
 Because of
Brexit, the
different rules
and regulations
of all countries
are required to
be followed by
Unilever.
 The restriction
on import and
export is one of
the key
political factor
that affect the
organization
overall
performance.
Economical
factor
 The profitability
of Tesco Plc
during Covid-19
situation has
reduced by 5% as
compared to past
 The rise in the fuel
cost has poses treat
for the company in
term of increased
transportation cost.
 During Covid-19,
 Due to change
spending
pattern of
customer
during Covid-
19 towards low

years because of
poor spending
pattern of
customer.
 The increase
inflation rate
after pandemic
has work as an
opportunity for
Tesco because
the company is
focused on value
brand rather than
selling luxurious
items.
the sales revenue of
Sainsbury Plc has
reduced by 3.2% in
the year 2020 as
compared to
previous year
(Yrjölä and et.al.,
2019).
cost products is
an opportunity
for company.
 The cash flow
and profits of
Unilever are
negatively
impacted
because of the
various
Social factor  The continuous
change in the
trend and
preference of
customer has also
affected Tesco
Plc.
 Because of the
Covid-19 situation,
the eating habit of
the customer has
shift to healthy
foods. This is an
opportunity for
Sainsbury as the
company provide
healthy foods to its
customer.
 The fair trade
movement possess
threat for company.
 Many products
of Unilever is
based on
personal care
and well-being.
This is an
opportunity for
company.
Technological  The customer of  The technological  The online

factor UK has moved
towards the bulk
shopping which
is an opportunity
for Tesco to offer
discount on bulk
sales.
 Self-delivery
service and
automatic scan,
pack and pay
option.
innovation and
continuous increase
in demand of online
shopping is an
opportunity for
Sainsbury,
 Technological
advancement in
analytics is also an
opportunity for
Sainsbury
selling of new
and unique
products and its
marketing on
social media is
another factor
which has
affected Tesco
Plc. This is
basically
consider as
opportunity
(Yrjölä and
et.al., 2019).

On the basis of the pest analysis of each retail organization, the following drivers of
change and its impact on the organization strategy and operations have been identified:
Organisation Changes Drivers of
change
Impact on strategy Impact of
operations
Tesco Plc
1. Scan, pack and
pay is a
technological
change which
have occurred
within the
Tesco Plc. This
is a part of
digital
transformation
change.
The driver of
this change
within Tesco Plc
is continuous
advancement of
technology in
the recent
world.
The impact of these
change over company
strategy is that their
customer base enhanced
and employee retention
rate increases (Tai and
Kareem, 2018).
The impact of
this change over
Tesco operation
is that the
company sales
revenue after
Covid-19 has
again come on
track.
2. Remote
working is a
another social
change
implemented
by Tesco within
their
organization.
The key driver
of this change is
Covid-19
pandemic
situation and the
government
regulation on
social distancing
as well as
business closer.
The impact of these over
Tesco strategy is that it
has provide expansion
benefit to company.
The increased
profitability and
motivated
employees are
the example of
impact of these
change over
company
operations (Tai
and Kareem,
2018).
3. Incorporating
leadership
The key drivers
of these change
It has impacted the
company strategy in term
The morale of
employee and its

management is
another change
which has been
occurred within
Tesco Plc
because of the
external factors.
on Tesco Plc is
social and
technological
factor.
of diversification,
increased employee
retention etc.
enthusiasm is
also increased
because of these
change. This is
an example of
impact on
operations.
4. Social media
marketing is
also a change
which is
implemented
by Tesco at the
workplace.
The key drivers
of these change
is social,
political as well
as technological
factor (Pantano
and Vannucci,
2019).
It has impacted the
product portfolio and
diversification strategy of
Tesco in positive way.
It has helped
company to
expand its
operation in more
than 13 countries
all over the
world.
Organisation Changes Drivers of
change
Impact on
strategy
Impact of
operations
Sainsbury plc.
1 Self-service
checkouts in the
supermarkets.
The organization
has been the first
one in entire
Europe to install
this technology.
Over the time it
found that there is
need of installing
such mechanism
where self-
service checkouts
should be there. It
was experienced
that there must be
a system so
This strategy
attracted more
customers. They
got inclined to
make frequent
visit to the stores.
It was giving
them ease to
make their buying
process more
In term of
organizational
operations it
was proven as a
great change in
operations. As
now over 1000
stores are
serving more
than 22 million

customers can
manage their
queue time.
customized. customers a
week.
2 It has taken an
initiative in term
of “The fair-trade
movement”. This
expedition was
upheld by the
entity.
Since the
changing social
proprieties and
inclination
toward fresh
items surged the
need.
It changed the
customer
motivation and
belief in the
organization.
In term of
operations a
better
escalation was
experienced. It
changed the
perspective to
carry out daily
operations.
3 Instilling waste
management
policy in the retail
sector. As it has
claimed to be the
first retailer to
grab zero waste to
the nature by the
year 2030. This
change was
installed to make
the operations
more economical
in nature.
Keeping the
prevailing
environmental
crisis into
consideration it
has taken this
action and made
better green
policy.
It brought greater
strategic
superiority to the
organization. It
helped in
becoming
paradigm among
customers.
It paved the
way for better
operations.
Now the entity
is imparting
kind of eco-
friendly
operational
practises. It
reduced overall
cost and hiked
economical.
4 Drastic CSR
policy to be more
enthusiastic in
term of political
The political and
legal drivers have
been there which
surged need to
It made
organization
strategically
stronger. And
The operations
are now more
aligning with
social norms

notions. have such CSR
regimes.
fulfilment of
political
expectations.
and fulfilling
political needs.
Organisation Changes Drivers of
change
Impact on
strategy
Impact of
operations
Unilever plc.
1 Introduction of
“Stricter trade
reforms”. It has
been a radical
change instilled
by the entity.
In USA the
government
became quite
restricted which
somehow led to
this change.
This helped in
making
organization more
viable in the
prevailing
economy. So this
economic change
brought better
strategic changes.
The
organizational
operations
became barrier-
less due to
abiding with
the
requirement.
2 “Recycle sachets”
was developed by
Unilever.
This technology
was installed by
the drivers such
as environmental
forces.
On the strategic
level it brought
higher efficiency
and led to achieve
the aim of hyper
technological
organization.
The operations
are now more
smoother. The
entity is able to
carry out them
with better
efficiency.
3 Elimination of
carbon emission
by the year 2030.
This change came
due to social need
of being more
aligned with
environment. The
environmental
It helped to
achieve the
strategic aim
which is to be
number one in the
retail sector.
With the help
of this change
now the entity
is more likely
to make its
operations

drivers led to this
change.
inclined to
environment.
4 Covid-19 actions
were taken. Some
favourable
changes were
made.
This came due to
economic drivers.
Since after hit of
pandemics the
economy became
more
The installed
change has
fetched strategical
superiority and in
keeping its
customers
sustained.
The operations
have been
remained alive.
The operations
or the entity
were kept
progressive due
to the installed
change.
LO2
The evaluation of the ways in which change will impact leadership, individuals and team
behaviour.
Changes in the world has a direct impact on the organizations. And when those changes
are implemented in an organization, there are number of ways in which those changes affect the
functioning of the organization. Specifically speaking, the human resource are the most
important factor of an organization and is also the one thing that gets affected the most when
anything new happens or when anything new is implemented in an organization. Here is how the
human resource (leaderships, teams and individuals) gets affected:
Tesco
Changes
Scan,
pack and
pay is a
technolo
gical
Internal
/
external
Internal
change
Impact on leadership
behaviour
Leadership is an
essential thing of any
place as it is the
main thing that run
the team, the
Impact on
team/
departmental
behaviour
The
departments
of the
company
hold good
Impact on
individual
behaviour
Every individual
of the company
is completely
satisfied with the
transformation as
measures
to minimise
negative
impacts
Proper
training is
given to the
employees
to keep

change
which
have
occurred
within
the
Tesco
Plc. This
is a part
of
digital
transfor
mation
change.
business or the
company. Only an
effective leadership
can lead an
organization towards
the success
(Seethamraju and
Diatha, 2019).
Here it is one thing
that handles the
overall operations
and the functioning
of an organization.
So if the leadership
is not flexible
enough towards the
changes and restricts
the changes then, it
becomes very
difficult for an
organization to
grow. As per the
technological change
in the company, the
leadership was
positively impacted
as the leadership is
now able to function
in a much efficient
manner and also
conducted training
programmes for the
employees to teach
them the use of
technologies.
towards the
digital
transformatio
n, as the
procedures
were now
cut short.
it relieves the
burden from the
individuals.
their
interest
associated
with the
digital
transformati
on of the
company.
Sainsbury
Changes
Waste
Internal
/
external
Impact on leadership
behaviour
A leadership is the
Impact on
team/
departmental
behaviour
This lead to a
Impact on
individual
behaviour
Waste
measures
to minimise
negative
impacts
Motivation