Understanding and Leading Change: Tesco vs Sainsbury Report

This report provides a comparative analysis of change management strategies employed by Tesco and Sainsbury, two leading supermarkets in the UK. The report examines the types of changes each company has undergone, including structural and technological shifts. A SWOT analysis is used to identify internal and external drivers of change, comparing their impact on each company's leadership, organizational behavior, and operational efficiency. The long-term implications of these forces are critically evaluated. The report also applies force field analysis to Sainsbury to identify resisting and driving factors, and evaluates various leadership approaches and change management models. The conclusion offers recommendations for effective change planning and implementation, including suggestions for minimizing negative impacts and leveraging opportunities for growth. This includes the use of training and development programs.

Understanding and Leading
Change
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Overview of each company and form of change they went through......................................3
SWOT analysis to determine external and internal drivers of change...................................3
Compare how drivers of change impact each company.........................................................6
Critical evaluation based on long term implication of forces of change within each firm....7
Conclusion and suggestions with justification.......................................................................8
PART 2............................................................................................................................................9
Overview of company............................................................................................................9
Application of force field analysis to identify both resisting and driving factors..................9
Critical examination of varied leadership approaches and theory of change management. . .9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Change can be defined act of moving business from where it is now to where it needs to
be in the future. It is key element of success and great growth of companies which make a firm
able to grab accessible opportunities, while operate its venture within specific industry. The
current assignment will be based on TESCO and Sainsbury’s, which falls under category of
leading supermarkets in the United Kingdom. This study will explain type of change companies
went through, PEST framework to determine external & internal forces of modification and will
also define implications of elements of change within each firm. Furthermore, this report will
describe appropriate suggestions in context of planning for change and implementing its impact
analysis. It will justify force field analysis implication in regard to company and then
recommendation that could help to meet objectives of firm. Moreover, this study will clarify
critical evaluation of varied approaches relate to leadership and models of change management
to handle with modification.
PART 1
Overview of each company and form of change they went through
TESCO is well known brand in retail industry, UK; because it offer affordable services
and products to local people (Rosnizam and et.al., 2020). Company has sells approximately
40,000 food items in its supermarkets. In additional, it provides apparel and other non food
category products to customers, which is quite beneficial for firm in term of increasing its sales.
Supermarket and its management go through specific form of change and that is changing needs
of buyer.
Furthermore, Sainsbury is another chosen company that has also sustained its business
within similar sector where above firm has operated with skilled workforce. It sells excellent
quality of items to consumers in exchange of money. Supermarket utilizes cookies to aid
individual consumer the excellent experience on official site (Hertz and Halkier, 2017). Its
management source more than 12,000 branded items from over 70 nations. Firm offer groceries
and other services to people in effective and systematic manner. Technology change is one of the
types of changes Sainsbury went through it.
SWOT analysis to determine external and internal drivers of change
SWOT analysis TESCO Sainsbury
Strengths  Good financial performance  Creative promotion
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or turnaround is the key
strength of company and also
consider as internal drive of
change which make firm able
to take further decision in
context of implementing new
technologies (Xie and et.al.,
2019).
 Skilled and talented
applicants are second
strength of TESCO, which
allow management to gain
competition advantages. It
can be recognize as external
driver of change.
tactics is external drive of
change within Sainsbury
that help management in
term of increasing
customer’s base and
profitability even better
than its rivals.
 Motivated employees
help firm to adopt change
and implement in order to
sustain for longer period
of time.
Weaknesses  Poor operational
performance of company in
specific markets is another
internal drive of change that
decrease sales and
profitability of business. It
has been analysed that few
outlets and grocery stores of
chosen brand are not
working effectively in
certain nations.
 Lack of management is one
of its weaknesses that impact
employees and business
performance in negative
manner, this driver of change
 The biggest weakness of
this supermarket is its
business limitation that
means firm is able to
manage its venture only
in UK, which unable
company to grab chances
while being operated at
global level.
 because of growing
competition in retail
industry Sainsbury has
attempt to cut down costs
and keep price low which
is one of its biggest weak
point that can drive its
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influence overall practices of
venture.
business towards failure.
Opportunities  Technology advancement is
external driver of change that
impact upon success and
growth factors of TESCO in
positive manner.
 Emerging markets is another
opportunity that TESCO can
garb along with above one in
order to boost up its strong
brand image in market. It is
an external drive that allow
firm to make further changes
according to situation.
 Accessibility of different
routes relate to
internationalization is
excellent opportunity that
Sainsbury can grab in
form of external drive of
change.
 Development of e-
commerce is another
chance that this firm can
gain and attract current
generation consumers
towards purchase.
Threats  Political influence is one of
the biggest threats that can
posse challenging situation
in context of TESCO
success. For example,
change in tax rate directly
impact financial performance
and decision making of
organization.
 Intense competition is
external driver of change that
affects overall business
practices and processes
negatively (Benetton, 2017).
 Globalization is external
driver of change that
posses threat for
Sainsbury in term of
affecting its current
practices and driving
company to adopt new
policies in context of
trading procedure.
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Compare how drivers of change impact each company
A business environment comprises different types of drivers of change either external or
internal that directly influence or impact leadership, organizational behaviour and operational
efficiency of a company. Here, comparison between two companies TESCO and Sainsbury can
be define based on in what manner drivers of change impact brands and practices related to
them.
Structural change is key driver that put positive impact on TESCO and its leadership as
well as behaviour of management at workplace is strong financial performance (Yang and Lin,
2020). For example, when company is change its organizational structure, it could enable them
to make plan for achieving further goals and increasing its productivity level, which in return
provide several benefits in term of increasing sales, revenue and enhancing operational
efficiencies even better. This driver of change strengthens management and company to grab
current market opportunities, which is quite beneficial for firm in term of boosting brand image
in retail sector. It also put positive effect on leadership and behaviour of manager, for example
structure change allow leader to influence new and existing people to work hard and even better
than last few months.
Structure change also put similar impact on behaviour of administration as it help
manager to develop strategies through which he or she can change overall structure of TESCO
by considering needs of each applicant. This type of modification is quite beneficial for company
as it allow firm to grab further opportunities and gain competitive advantages. While it can put
negative impact as well upon leadership style of leader and management behaviour, because
when company decide to change its current structure it bring a lot of challenges for leader and
manager in term of increasing high pressure for improving and managing performance of staff
who are not been able to except change and work with it for longer.
As compare to structural change, technology change put excellent impact on sales and
service level of Sainsbury, because it allow firm to gain attention of new customers successfully
(Schwarzmüller and et.al., 2018). When management decide to change existing technologies
with current one it increases ability of marketing team to attract people by developing effective
strategies in context of promotion. Along with this advantage, technology change boost
productivity of brand and increase its sales after success of marketing plan and tactic. For
instance, Sainsbury is the first supermarket that trail new pay, scan and go tech which make
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consumers able to pay for items in outlet by using his or her smart phone (Advantages of
technology in business, 2018). It gives each customer the best experience and option to grab
groceries without carrying much cash in valet.
Critical evaluation based on long term implication of forces of change within each firm
From above analysis, it has been analysed that structural change put positive impact on
leadership, behaviour and overall practices of TESCO. For example, this driver of change
comprise different benefits as it allow management to take faster and better decision by making
group discussion & meeting with new and existing workers. When firm switch to hierarchy
structure from flat it increase operational efficiency and increase performance level of workers
because wide area where people work could permit them to understand role and accountability.
On the other hand, structure change influence leadership and current practices of manager in
negative manner because few people could not be able to work with new things at workplace as
it can impact his or her performance and productivity level negatively. It requires a lot of hard
work and attempts to make each worker ready to except change and retain them for longer.
Implication of this drive is quite challenging and beneficial as well.
As discussed above, technology change is useful when Sainsbury adopt it and implement
at workplace to boost performance and productivity of its business. Because of the latest
technological development, company can have excellent option for effective communication, to
save business prices by automating procedure and operations of venture and ways to maximize
productivity (Brussevich and et.al., 2018). For instance pay and go technology allow consumers
of supermarket to receive great experience while shopping from Sainsbury outlets as it permit
people to enter into store without having excess of cash in his or her pocket, it give benefit to
purchase grocery and pay for it by using smart mobile phones without standing in long queue.
When firm implement this drive of change at workplace for longer period of time, it could give
benefits to manager in term of saving time from counting money, because of this technology
people can directly pay account to account. On the other side, it could impact negatively when
system or technology does not work systematically due to some technical issues.
People after implementing any technology at work area, make they dependable upon it;
they never attempt to work without it. In that case, when machines or programmes get damage it
increase pressure level of workers to count money or to perform.
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Conclusion and suggestions with justification
From above discussion, it has been analysed that TESCO and Sainsbury went through
different type of change that has affect its leadership, management, behaviour and overall
performance in positive as well as negative manner. By guiding workers and conducting flexible
practices, leader and manager have boost productivity of both supermarkets. By considering
appropriate techniques the negative impact of technology and structure change can be minimized
which is quite useful and beneficial for both firms in term of increasing morale of applicants.
There are varied methods available in the business world that supermarkets can use to develop
plan for change.
Recommendation-
 Structure change is important by its negative impact can decrease motivation of
employees and productivity of TESCO. Management can do effective things in context of
this situation. For example, they should conduct a meeting at workplace where all
applicants would invite to make important discussion base on importance of structure
change in company. It is one of the best measure that manage will take and implement as
it allow administration to create an effective plan and tactic for change.
 Furthermore, Sainsbury would also grab current and further opportunities and minimize
negative impact of change by developing training and development plan because it help
leader to train workers. This process will effectively enable candidate to work with
change and also strength to solve technical issues when it occur with further technology
through which he or she can serve its customers satisfactory services and deliver
products.
 With this suggestion management should develop training programme that will give
people chance to learn new skills and gain knowledge about solving technical problems.
Furthermore, during this session leader will also train existing and new staff members
that who to manage work with and without technology use.
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PART 2
Overview of company
TESCO has sustained its venture by balancing healthiest position in market up to four big
supermarkets with yearly sales approx 2.2%, which means market leader outperformed
Morrison, Sainsbury and ASDA. It has been analysed that supermarket market share after
conducting effective practices and serving consumers stood at 27% from last twelve weeks in
2019 (Grocery market share year-on-year in Great Britain (UK), 2019). Firm work according to
its set aims and objectives and that is to stay at leading position and provide satisfactory products
& services to customers. They want to cater electronics, apparel, groceries and other products to
customers.
Application of force field analysis to identify both resisting and driving factors
Force field analysis is strategic framework that provides clear description about forces
that could impact a business and its management practices (Sharma, Singh and Matai, 2018).
Here, it is utilized in context of TESCO to determine and then discuss factors that oppose or
support a change initiative.
Figure 1: Force Field Analysis
(Source: Force Field Analysis, 2020)
Forces for change-
Customers need new items-
When consumers demand for new products it drive management towards change in term
of manufacture and produce new goods that people like the most. It influence decision making of
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manager in form of conducting market research and determine what customer want in form of
size, taste, structure and price.
Improve productivity speed-
It can be analysed that when productivity of TESCO is improve it allow management
towards change like technology change and fulfil changing needs of buyers. It influences
judgement of manager in positive manner in form of developing strategies to train people.
Forces against change-
Lack of motivation-
There are some forces or factors accessible in corporate world that can work against
change, for example, demotivated employees could accept any type of change and work with
new modification (Arnett, 2019). This force influence decision making of administration in
negative manner like increase pressure to motivate staff.
Increasing operational cost-
When management decided to implement technology or structure change at workplace it
can increase operations cost which directly influence manager decision making.
Recommendation based on force field analysis outcomes-
 It suggests to TESCO manager that they should use ranges of motivational approaches
and method in term of motivating people who work for its business. It increases
motivation and then productivity of applicants as well as supermarket.
 Furthermore, management must implement technology that is cost effective and require
gaining competitive edge for chosen supermarket. Before making any plan firm should
develop budget and then take further actions as it save cost and effort as well.
 All these recommendation allow manager and leader to achieve objectives of company
like gain competitive advantages.
Critical evaluation of chosen model in regard to meet TESCO objectives-
It can be critically analysed that Force field analysis is beneficial in context of meeting
objectives of chosen supermarket, because it present negatives and positive of change so
manager are easily compare it and take further actions to minimize negative aspects of forces. On
the other hand, it can create challenge in front of administration because this framework need full
participation of every worker which is not possible as few people resist for change.
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Critical examination of varied leadership approaches and theory of change management
Lewin’s change management model-
This model of change management helps TESCO manager and leader to deal with
resistance for structure or technology change (Galli, 2018). It comprises three different stages;
Unfreeze-
According to this phase, manager can identify what need to modify and then allow
workers to understand its importance at workplace by informing all of them. Leader could
inform his or her applicant about change and make them ready to contribute in overall procedure
by arranging small gate to gather.
Change-
After passing above stage, leader and manager came to second one and that is change
where planning for implementing new technology or structure could be done by providing entire
information to staff members. Leader by communicating with all applicants encourage them to
except and understand needs for change in company.
Refreeze-
Furthermore, management deal with overall procedure such as technology change in
supermarket by taking above actions. They can overcome further situation like current one by
determining barriers to sustain modification.
Situational leadership approach-
Along with above change management model, TESCO can use specific leadership
approach that also help and support to deal change and implement it successfully at workplace.
Situational leadership methods is the best and most effective technique that leader in chosen
supermarket could utilize (Kozachuk and Conley, 2020). For example, it strengthens them to
take action and decision after analysing overall situation. When workers would not work with
advanced technology and resist implementing at workplace, at that time leader can identify
reason behind this type of nature and behaviour of applicant. It helps to take further act in
systematic manner. Leader after doing this could communicate with employees and allow them
to ask question about technology change in firm, as it build trust and understanding level even
better. Furthermore, by considering needs and reason behind resistance to change, leader can
solve and handle situation as it also allow them to achieve objectives of company with entire
workforce.
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Critical analysis-
It can be said that situational leadership approach is quite beneficial in term of handling
different situations and obtaining desire outcomes like gaining competitive edge in context of
TESCO. But on the other hand, it does not work on every condition and strict leader with
specific style.
CONCLUSION
By summing up above discussion, it has been concluded that TESCO has successfully
managed its business growth and boost operational efficiency by taking right decision and
developing plans to overcome the negative impact of drivers of change. Organization has
achieved its set objectives and aims by using suitable and relevant leadership approaches which
bring a lot of benefits for companies like TESCO and Sainsbury. Furthermore, from above
analysis it has been identified that leader by taking appropriate actions in term of guiding
workers reduce negative effect of external and internal drivers of change upon individual and
team behaviours. It has been summarized that management and leaders by considering the
relevant measures and develop effective strategies minimize negative aspect of change upon
overall business practices. It has been determined that leader by using situational leadership and
system leadership approaches effectively deal with change and obtain desire outcomes.
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