Report on Understanding and Leading Change: Tesco, M&S Analysis

This report delves into the critical aspects of understanding and leading change within organizations, using Tesco Plc, Nokia, and Marks & Spencer as case studies. It explores the impact of change on business strategy and operations, comparing the organizational structures, strategies, and operational approaches of Tesco and M&S. The report examines both internal and external drivers of change, such as technological advancements, government policies, and shifts in consumer behavior, and assesses their effects on leadership, team dynamics, and individual behaviors. It also identifies measurements to mitigate the negative impacts of change, analyzes barriers to change, and evaluates the influence of these barriers on leadership decision-making. Furthermore, the report utilizes force field analysis to examine driving and resisting forces in organizational contexts and evaluates various leadership approaches for effectively managing and delivering organizational change. Finally, the report concludes with a discussion of the long-term implications of these changes.

UNDERSTANDING
AND LEADING
CHANGE

INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
ACTIVITY 1....................................................................................................................................2
LO1..................................................................................................................................................2
P1 Compare different organization where impact of change will affect the business strategy &
operations.....................................................................................................................................2
M1. asses the different drivers for change in each of the given examples and the type of
organisational change they have affected........................................................................................4
LO2..................................................................................................................................................4
P2. Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours ...........................................................................................................4
P3. Identify the measurements that minimise the impact of changes in the organization ..........6
M2. Critically evaluate the long term implications of internal and external drivers of change
within an organisation..................................................................................................................7
ACTIVITY 2....................................................................................................................................7
LO 3.................................................................................................................................................7
P4. Different barriers for change and how they impact the leadership decision-making............7
M3. Use force field analysis to analyse both driving and resisting forces to show how they
influence decision making in a given organisational context....................................................10
LO 4...............................................................................................................................................11
P5. Application of different leadership approaches to deal with changes.................................11
M4. Evaluate that which leadership approaches can deliver organisational change effectively
applying appropriate models and frameworks...........................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................14
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INTRODUCTION
Understanding and leading change is very relevant for an organisation where people are
active in finding issues and adopting different changes to take action (Burke, 2017). Changes in
process, processes and results will continue to promote about a transition in the company that
increases efficiency and profitability. Tesco Plc, Nokia and Marks & Spencer have chosen the
company to further underscore this definition. This study addresses a number of topics, such as
the organisation's comparison and the execution of improvements in terms of strategic strategies
and operations. In addition, this report provides metrics that mitigate the negative effects of
change, multiple obstacles to change and how it affects the decision-making process. Consider
the various leadership approaches needed to handle organisational changes.
MAIN BODY
ACTIVITY 1
LO1
P1 Compare different organization where impact of change will affect the business strategy &
operations
The driver of change is an internal or external force that changes the shape of an
organisation. This requires improvements to policies, plans, designs, goods, facilities and
operations. The following are some common type of change drivers, starting with internal drivers
and moving to external factors.
In relation to Marks & Spencer, the four drivers are technology change, government
policy, social impact or economic change (Byers, 2017). These drivers of change affect the
overall production as well as profitability margin. M&S rivals focus in niche markets and the
attention of customers to provide greater customer satisfaction. The proposal of the European
Committee to allow free trade between themselves and other nations under foreign trade
legislation makes it possible for employees to import their goods over period than before. The
concept of customers on the consumer has changed; they do not believe that British goods are of
high quality. Social networking played a vital role in communicating new fashions to consumers.
In context of Tesco Plc, there are some drivers such as change in marketing method,
customer behaviour, technology and environmental changes. It has modified its
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marketing approach by addressing the challenges that its consumers face nearly every day. It
noticed that consumers no longer reacted to mass marketing promotions full of 'Buy One Get
One Free' deals or discounts. It stared through the eyes of customers at its own company and
marketing. Customers' demands changed and Tesco supply non-food goods such as clothing,
electronics, cell phones, etc., offering customers with easy shopping (Coghlan and Shani, 2015).
Technology is the greatest force of progress for all businesses because of new technologies. The
consumer base would grow as they are happy and attracted. Less resource use, less production
waste and less damage to the environment are the concerns that lead the Tesco to adapt
accordingly.
Comparison of organizations:
Basis M&S Tesco
Structure This organization follows the flat
organizational structure. It has restricted
management positions between operational
and front-line personnel. This system is
followed in the company to enable workers
to take further decisions.
Company adopted
hierarchical organizational
structure where each and
every person divided with
their roles and responsibility
and have to report their
superior after every task.
Strategy Mostly, it sells high price products and
services. This should decrease the cost that
consumers want to buy products at a low
price due to a downturn. The
business strategy applied by M&S protects
broader market share (De Sousa Jabbour,
2015).
It aims to become a zero-
carbon company by 2050. Its
continued outcome relies on
rethinking and developing
consistent business strategies.
It seeks to boost consumer
loyalty.
Operations M&S operates in more than 50 territories
globally and hires nearly 82,000 people.
Staying faithful to our core principles of
quality, value, service, creativity and trust.
They are working hard to make sure that
their offer continues to be important to our
The company has extended
its Dotcom distribution
system to respond to rising
online ordering in UK by its
consumers. The company
also operates a 120,000
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customers. By diversifying our shops,
platforms and product lines, they are
reducing reliance on the UK and widening
our international emphasis.
square foot fulfilment centre
in Enfield, England.
M1. asses the different drivers for change in each of the given examples and the type of
organisational change they have affected
By undertaking the above discussion, it is analysed that environmental factor become the
effective driver for the change undertaking the impact on respective company in terms of
offering same products within the same climate for the organisation which is quite cost effective
and qualitative. For this, company also tend to impact for the social factors for the new
customers in terms of making more aware regarding the health issues. It also leads to undertake
suitable habits for the change and the bulk shopping for company as in relation with this,
company tends to accommodate demand for the suitable products undertaking the availability of
products.
LO2
P2. Evaluate the ways in which internal and external drivers of change affect leadership, team
and individual behaviours
Internal or external drivers can be identified with the help of SWOT and PESTEL analysis
which further allow managers of Tesco to evaluate that how these changes can affect team,
leadership and individual behaviour. These are discussed below:
SWOT analysis:
Strengths Weakness
It is UK's largest grocery store which has
higher profits or sales in comparison to the
other supermarket business.
The business has a highest market share and is
dominated other UK businesses with
around market share of 4%.
The company has faced a situation such as a
fraud trial and an accounting scandal that
threatens the company's image.
As a result of their accounting scandal, net
profit was decreased by 9% as well as caused
by poor results.
Opportunities Threats
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Tesco Plc has recently opened its latest
discount store, Jack. This is supporting
substantial growth.
A joint venture is indeed a great opportunity to
reach a growing industry because it can help to
evaluate the society, value or mentality of a
specific nation.
"Brexit referendum" in which Britain is no
more member of the EU. It will have an effect
on the trade agreements and will have an
impact on the costs and that becomes
a threat for business.
Economic collapse and credit crunches would
have an effect on both company productivity
and profitability.
PEST analysis:
Political: This includes tax rates, political stability, interest rate, etc. It plays an
essential role in the economy by creating job opportunities throughout the home market that raise
the productivity of employees and demand for goods among the consumers (Fatricia, 2017).
Attributed to the dominance of the political element on the organisation, managers should adopt
an efficient leadership style that increases both person and team success and their organisational
behaviour.
Economic: A large portion of business is entirely reliant on UK market, as 30% of the
retail market share would fall under the control of Tesco Plc. The economic effect on the
viability of enterprise is that the manager must create an option that will help the organisation
thrive. But in the crisis, economic benefit has been diminished which causes conditions where
people lose their jobs. This aspect also influences people who work inside the organisation and
has an effect on the managerial leadership style.
Social: Because of the high demand for clothing items or psychological impact change
the customer buying pattern, the company is raising its clothing in its store and retaining the
interest of its customers in the market. These aspects have an effect on the management style
because they'll have to work according to business or consumer requirements. In order to
enhance customer satisfaction, the leader must lead their team appropriately.
Technology: Change in technological advances allows the company to capture the
potential and achieve fast market growth. For example, the R&D team at Tesco focuses primarily
on creativity or trendy items that significantly improve product demand or allow the company to
achieve its business goals and objectives (Iles, 2017). Change in technology would entail a
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change throughout the leadership style of management, whereby they advise their members of
the team or any person about any change in business and work.
P3. Identify the measurements that minimise the impact of changes in the organization
There are some common measurements which are used to minimise the impact of changes
within Tesco Plc. These are as follow:
Engage employees in the conversation: The performance management environment is
evolving, enabling for more genuine, regular and less structured conversations. Whenever it
comes to performance problems, under-performing workers are over a long period of time
decreases self-confidence and growth. Whenever possible, explore methods to help the employee
boost efficiency or participate in a conversation that involves breaking up and deciding on a plan
of action.
No surprises please: Employees feel at home whenever there is uncertainty in the sector,
specifically when it comes to change and job cuts. Transparency and transparent and truthful
communication try to build trust among management and the employees. Advanced signalling
that progress would be in the air would give staff the opportunity to adjust psychologically and
emotionally for change and a healthier forum to rotate and step forward after the changes took
place.
Create a culture of learning: Job security is not the only things that any employer can
guarantee, but developing a learning atmosphere where employees can bring in new obstacles
and deliver their operational and leadership abilities will set themselves up for potential success
with their next workplace.
Provide career transition support: For the most successful, optimistic and skilled
professionals, unforeseen job losses are a traumatic, overwhelming and challenging life
experience. Working with such a career coach offers individuals the ability to focus on their
strengths, to articulate their priorities and to build a plan that can help them arrive in a very well-
aligned job faster.
Consider notice: Working notices can help promote a seamless transition both for the
company and employees. It is founded on the fundamental principle that when faith and
reverence are extended, it is often restored. In order for this structure to be effective, close
supervision and clear interaction among HR, manager and employee are required. This
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framework provides staff, where possible, time to accustom to news, complete tasks, and start
planning for their job quest.
M2. Critically evaluate the long term implications of internal and external drivers of change
within an organisation
It depict the prominent factors that leads to impact the functioning of company. It also
represent that company undertake effective solutions by identifying the suitable benefits and also
come up with effective solution. For this, environment also leads to give fresh mode in terms of
working with company. Moreover, external factors also depict the effective opportunities to their
competitors considering the changes in various factors for effective production and collaboration.
It also depict the suitable issues as company does not do nothing which undertake several factors
like, political, environmental, social, technological, legal and so on.
ACTIVITY 2
LO 3
P4. Different barriers for change and how they impact the leadership decision-making
Change is important within an organisation in terms of dealing with complex situation as
it is useful to create effective strategies to accomplish prominent goals and objectives for
company. In terms of surviving in the competitive business environment, company need to opt
prominent changes that leads to enable them in terms of surviving and sustaining for the long
period of time (Croft, 2017). Along with this, it also tends to influence in both negative and
positive way to those barriers in terms of achieving prominent change in company. In regard of
Nokia, who deals with effective and high quality of clothes, home and food products. For this,
effective barriers that are faced by company are mentioned as:
Ineffective communication: At the time of introducing change in company, it is
significant to communicate effectively regarding the execution of change in terms of earning
effective profitability without any conflict. For this, ineffective communication tends to develop
lot of problems such as dissatisfaction, conflicts and so on among employees that tends to impact
the decision making of employees (Ngamchuea, Batchelor-McAuley and Compton, 2018).
Furthermore, it also leads to influence the productivity and sales of an organisation in terms of
tackling the prominent barriers and for this, a leader must have effective and good
communication skill which is useful in maintaining transparency and clear information regarding
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the change which is introduced in an organisation in terms of maintaining healthy working
environment for Nokia.
Lack of employee engagement: It is undertaken as the common issue for the change
management as it leads to include fear of employees and dissatisfaction and many more which is
useful in resisting to opt prominent changes in company and also not much beneficial for the
good terms because of loyal workforce in terms of refusing the change (Wells and Xenias,
2015). In terms of Nokia, it leads to include that employees undertake effective change process
for eliminating barriers of change within an organisation by involving them towards the decision
making and also undertaking the significant opinions to make sure for the prominent change
which is reliable for them.
Resistance to change: This factor tends to oppose for effective struggle and also acquire
the significant transformation in company in terms of overcoming the prominent barrier of
change. For this, workforce is more convenient to carry forward for the significant organising as
it leads to resist the change factor. In terms of Nokia, company find prominent difficulty to
execute suitable and productive decision making. For this, change tends to face prominent
resistance and for this, company leads to help to their employees in terms of engaging towards
employees which is against the change as it leads to develop positive among employees
regarding change. Therefore, it leads to attain effective profitability and productivity within an
organisation.
Hence, it leads to undertake effective barriers of change that has huge impact on Nokia,
by considering their leaders in terms of taking decision regarding the accomplishment of
effective goals of company. With the help of force field analysis, company leads to make sure
the prominent identification of challenge which is useful for them to execute the significant
decisions by examining the significant forces for and against the change.
Force Field Analysis:
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Illustration 1: Definition of Force Field Analysis
(Source: Definition of Force Field Analysis)
Force field analysis is categorize into two effective factors including driving force and
restraining force. In terms of executing the change in an organisation, driving force need to
exceed towards the restraining force. In terms of Nokia, they tends to introduce technological
change for the significant transformation plan that leads to deliver efficiency and responsibilities
to its technological services. Its prominent forces are mentioned as underneath:
Driving forces for Nokia
New technology: Technology plays a significant role regarding the growth and success of
company as it leads to survive for the longer period of time. In terms of Nokia, the prominent
changes within the technology leads to interact with customers and company leads to opt various
unique technology in terms of improving its efficiency in terms of meeting with the efficiency of
customers (Sayal and et. al., 2016). Along with this, technology which is opted by Nokia, tends
to introduce in terms of making mobile phones more reliable and worthy that leads to provide
proper satisfaction to customers. With the time of change, they leads to enhance the quality of
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service, in terms of gaining competition benefits and effective performance for employees that
leads to resist change due to the cost and culture of company.
Proper customer support services: Respective company is more concerned regarding the
effective relationship with customers in terms of accomplishing competitive advantage. In terms
of achieving effective productivity, company prominently need to update its system and software
by fulfilling significant gap among CSS and also exist in information system. For this, company
tends to serve to eliminate intermediaries and offer reliable services as per the need of customers.
Restraining forces for Nokia
Cost: By opting reliable and effective technology company need effective and large
amount that tends to impact the business and its overall productivity. For this, cost restrict tends
to analyse the overall competitive market and for this, managers does not offer reliable training
to employees in terms of eliminating their efficiency in their overall work.
Organisational culture: In this, organisation reaches towards the prominent point in
which they need to develop complex procedure in terms of introducing change. For this,
complexity involve the overall system and prominent barriers within the challenging
environment in front of employees (Rees and French, 2016). By this, Nokia tends to face less
participation of employees that negatively influence the success of company.
Therefore, from the above discussion, it is identified that force field in the significant
management tool which is useful for Nokia, to identify prominent challenges in terms of making
the decision making quite effective and tends to reduce the irrelevant forces from external
environment.
M3. Use force field analysis to analyse both driving and resisting forces to show how they
influence decision making in a given organisational context
By considering the above discussion, it is identified that it is helpful to put emphasis on
the force field analysis as it is useful to recognise the factors which are in favour to the change
and somehow also resist changes. For this, customers and technology both are considered as the
essential factors that impact the change and overall scenario of company by which employees are
involved for the cost that resist the change and also useful for the leaders to take prominent
decisions that support effective profitability and productivity.
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LO 4
P5. Application of different leadership approaches to deal with changes
 Situational Leadership:
It is defined as theory that the best leadership style needs to be change from situation to
situations depends upon circumstances occurring in an organization. For the most effective
leadership, leader must know the adaptation of different styles of leadership so as to handle the
diversified situations in a firm.
In context of Nokia, it is the large organization with different branches internationally so
situations can be diversified in the firm. Only one consistent style cannot be sufficient for
operations. Because some employees feels much better under the leadership style of autocratic or
directive. And other employees feels more comfort in the style of democratic or laissez faire in
which they want their own involvement in decision making and carrying out the plans without
leader's direct involvement (Uohara and et. al., 2019). So it is important for every leader to
understand the circumstances and then choose the style they can adopt for the specific situations
in the firm.
 Transformational Leadership:
It is defined as theory of leadership where leader identifies the change with their team
that is needed in an organisation. Making plans that how it can be implemented and finally
executing it with it's team. It mainly consist of four stages that are inspirational motivation,
intellectual simulation, idealized influence and individualized consideration.
In context of Nokia, it is telecom firm where innovations, technology and changes needed
every time to attract the customers. So transformational leadership is highly required in the firm.
And this can be attained through four major steps: firstly, by inspirational motivation where
leader motivates their teammates for a changing environment (Kniffin, Detert and Leroy, 2019).
Secondly, by intellectual simulation where leader introduces it's teammates to the change and
encourages them to participate in giving ideas and decision-making. Thirdly, by idealized
influence where leader plans to start implementing their ideas for change. And finally, by
individualized consideration where leader rewards it's teammates for successfully
implementation of their ideas and took the change in a positive way. So for the great change in
an organization, leader must adopt this style of leadership.
 Kurt Lewin's Change Model:
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