A Detailed Report on Understanding and Leading Change

This report delves into the critical aspects of change management within the context of two prominent retail giants, Tesco and Unilever. It begins by providing an overview of both companies, highlighting their positions in the UK and global retail industries. The core of the report examines the external environment of these businesses through PEST analysis, identifying key drivers of change. A comparative analysis of Tesco and Unilever is presented, evaluating the impact of these changes on their organizational operations and strategies. The report then explores how these changes affect leadership, individual behavior, and team dynamics, incorporating the force-field theory to understand these impacts. Furthermore, the report evaluates strategies to minimize the negative effects of change, suggesting appropriate models for efficient change processing. The report concludes by summarizing the findings and emphasizing the importance of adapting to the evolving business environment.

Understanding and leading
change

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of the case studies........................................................................................................3
Comparison of different organizations which has an impact on the organizational operations
and strategy .................................................................................................................................3
Impact of the change and the effects it is creating upon the organisation’s strategy and
operations.....................................................................................................................................5
Evaluating ways through which the changes have affected leadership, individuals and team
behaviour......................................................................................................................................7
Force-field theory.......................................................................................................................10
Evaluating how the impact of change can be minimised and the application of appropriate
models for processing change efficiently..................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Change is a significant process which has plays a vital role in the overall development of
organizations in the business environment. There are different factors in the business
environment which often leads towards changes in the business which is necessary for them to
grow and improve their position in the industry. By making certain changes in the way things are
being dealt in a business, the negative impact of several aspects can be mitigated by the business.
So, it is important for businesses to undergo changes in their business environment and enhance
their performance which is necessary for their sustainability in the industry. The current report is
based on Tesco and Unilever which are one of the most popular organizations in the retail
industry of UK. This report highlights the external environment of these businesses with the help
of PEST analysis which is essential to know the main drivers of change. It also includes an
appropriate analysis of the changes with the different ways which are essential to impact
individuals and behaviour of teams. At last, evaluation of appropriate models is undertaken
which are helpful or reducing the impact of these changes.
MAIN BODY
Overview of the case studies
Unilever is one of the most popular retail businesses in the UK as well as global industry. It
provides a wide range of products and services to their customers which has been beneficial for
its overall achievements in the business environment. Tesco is another strong firm in the retail
market which holds a significant position in industry (Brown and Nwagbara, 2021)
(Galli, 2018). These both organizations are core competitors of each other in the retail industry
as they have a major influence over customers with the help of their strong dominance in the
market. Although, it has been experienced those rapid changes in the business environment of
these organizations have had a major impact on its success in the industry.
Comparison of different organizations which has an impact on the organizational operations and
strategy
For evaluating drivers of change in Unilever and Tesco, a PEST analysis has been done which is
beneficial for identifying the key factors which acts as the drivers for change for this business.

The PEST analysis is effective in understanding the different changes which are crucial for the
businesses to adopt in order to enhance their overall performance in the industry.
PEST Analysis
Factors TESCO Unilever
Political
Factors
The political instability in the business
environment of UK may have a significant
influence on the overall performance of the
business. There are several changes in the
policies and procedures if government due to
political tensions which may create issues for
the company to grow in the industry
successfully. This creates restrictions for the
business to perform in the industry and gain
benefit which is necessary for them to
perform their operations.
There is a significant impact of the different
business frameworks in the global retail industry
which increases challenges for Unilever to sustain
in the competitive markets. There are several
changes on the basis of these differences in the
business environment of these nations on the
performance of the company.
Economic
Factors
The fluctuation in monetary and inflation
rates are certain factors which has a negative
influence on the overall performance of the
Tesco in the global business environment
(Ibeawuchi and et.al., 2021). Factors like
unemployment and lack of resources in the
market have increased the problems for the
business to gain better advantage in the
industry and increase their overall
sustainability.
The changes in the economic situations of
companies in different countries may have a
significant impact on the overall development of
the business in the industry. The economic
instability in the country may lead towards certain
hindrances in the overall flow of cash which is
inappropriate for the overall success of the
business in the industry.
Social
Factors
The global trends which may change in
relation with the new and attractive products
and services which are offered by the
businesses has a significant impact on the
overall profitability of the company.
Unilever is worldwide brand which is famous for
its quality and taste in the industry. The
organization has a strong social image which has
a positive impact on the overall sales of the
business. New and effective changes in the

Introduction of useful offerings by the key
competitors is a negative factor which
creates difficulty for the business to grow in
the competitive business environment.
Promotion of the business on social media
platforms has been beneficial for the
company in order to generate awareness
among the customers. With the help of this
factor, the business may get better
opportunities to grow in the industry.
business environment of Unilever have been
beneficial for the company to attract more
customers and increase their overall interest
towards the success of the brand in the industry.
However, the changing trends create pressure on
the business to make effective changes in their
strategies in order to grow and sustain in the
business environment.
Technologic
al Factors
The development of online website of the
business has been a positive factor which
provides better support for the business to
expand their services successfully. The use
of the new and advanced technological tools
such as Big data and AI are crucial for
analysing the needs and preferences of the
customers and making effective changes in
the strategic development of the company for
better results.
The online presence of the Unilever on their
official website and social media channels has
been crucial for the company to gain better
advantage in the industry. With the help of this
aspect, the organization is able to enhance their
performances and generate better quality of
output which is crucial for their growth and
sustainability in the industry (Keiningham and
et.al., 2020). Although, better advanced solutions
need to be explored by the business to grow and
generate better quality of output in the business
environment.
Impact of the change and the effects it is creating upon the organisation’s strategy and
operations.
Drivers of change- It has been analysed with the help of the PEST analysis of both the
organizations that the external factors are the major drivers of change. These aspects have the
ability to create issues for the businesses to perform in the business environment and gain better
advantage successfully. The major fluctuations in these political, economic, technological, and
social factors leads towards changes in the decision-making process of the businesses which
creates a significant impact on the overall stability of the companies in the industry. The

digitalization of business processes and introduction of new and attractive to manage operations
are several factors which are considered as the major drivers for change in the business.
Impact on strategy- These changes in the business may lead towards significant changes in the
policy formulation and decision making of Tesco. The political environment of UK may face
changes due to certain differences with several nations where the organization is undertaking
their operations. This will be crucial for the business to analyse the situation and prepare better
solutions which can be effective for increasing the success of the business to gain better
advantage in the company successfully (Neumann, James and Vince, 2019). On the other hand,
the changes in trends are a major factor for Unilever to consider which can reduce the overall
performance of the business in the competitive business environment. This may lead towards the
business to form new promotional strategies which may have a positive impact on the success of
the business in the industry.
Impact on operations – The changes in the external business environment may have a major
influence on the overall performance of the companies in the industry. It is necessary for both of
these businesses to undergo changes in order to grow and achieve better quality of output in the
business environment successfully. Unless there can be major differences in the demands of
customers and the actual products or services which are offered by the business to satisfy their
needs successfully. With the help of these activities, the organization is able to grow and
generate better quality of output which is essential for the overall development of the business in
the industry.

Evaluating ways through which the changes have affected leadership, individuals and team
behaviour
Change Internal/
external
Impact on
leadership
behaviour
Impact on
team/
department
al
behaviour
Impact on
individual
behaviour
Measures to
minimize
negative
impacts
Digital
marketin
g
This is an
internal change
which is
helpful in
generating
awareness
about the
businesses with
the help of
digital channels
which are
popular among
the audience.
The overall
development
in marketing
of business
has a
positive
impact on
the overall
leadership
style of the
organization
.
The teams
are able to
analyse the
responses of
customers
and develop
better
strategies
which are
beneficial
for
increasing
the
opportunitie
s which are
available for
the business
to grow and
enhance
their
performance
.
The
individual
satisfaction
levels of
employees
have
increased
with the
help of this
change
which is
crucial for
the
employees
to grow and
achieve
better
success in
the industry.
Management of
content which is
posted on several
social media
platforms is
beneficial for
reducing the
negative impact
of issues and
challenges which
may have a
negative
influence on the
business.

KPIs This is an
effective tool
which is used
for measuring
the
performance of
the business
and reducing
the errors
which may
have a negative
influence on
the
organization.
The KPIs
are helpful
for leaders
to monitor
and control
their
performance
in the
business
environment
which is
necessary
for them to
enhance
their quality
of output.
It provides
convenience
to teams by
establishing
certain
measures
which are to
be met
ensuring a
proper
system in
the
organization.
This change
may create
pressure on
the
employees
to perform
well in order
to reduce the
chances of
problems in
their
business
environment
due to
several
changes in
the
organization
al
development
.
Appropriate KPIs
should be
established by
the business
which can
provide specific
information
about the
performance
unless it may
lead towards
wastage of time
and money by
the company.
Social
conscienc
e
This is the
changes which
is important to
control the
carbon
emissions by
Tesco in the
external
This change
can enhance
the
sustainabilit
y of Tesco
which may
have a
positive
This change
may have a
positive
impact on
the
departmental
behaviour
towards the
Social
conscience
may instil a
responsibilit
y ion the
workforce
of Tesco to
minimise
The organization
should develop a
better approach
towards their
carbon emissions
and use green
ways which are
helpful in

environment
which leads
towards a
negative
promotion of
the business in
the industry.
influence on
the overall
satisfaction
levels of the
leader to
ensure the
success of
the business
in the
industry.
environment
which is
important in
order to
control the
carbon
footprint
which
degrades the
quality of
the external
environment
.
their
wastage
which can
have a
positive
influence on
the overall
sustainabilit
y of the
business in
the industry.
increasing the
quality of output
which is
generated by it
for the business.
Self-scan
checkouts
The self-
checkout
machines are a
new way to
complete the
transactions of
the customers
at the stores of
Tesco. This
will be
beneficial for
increasing the
interest of the
customers
The leader is
able to have
a better
control over
their
transaction
after the
digitalisatio
n of
payment
processes
which can
be helpful
for taking
The team
members
will be able
to focus on
their other
duties such
as
arrangement
and
decoration
of the
physical
stores and
their
The
introduction
of self-
checkout
machines
may have a
negative
impact on
the overall
satisfaction
level of the
individual
employees
as many of
The set-up of
professional
machines and
technology
which are trusted
in the market is
necessary for the
business to
experience
desirable results
which may have
a positive impact
on their
sustainability in

towards the
organization.
immediate
action
against any
inconvenien
ce.
workload
will get
reduced with
the help of
this change.
them may
loose their
jobs due to
this change
in the
business
environment
.
the industry.
Force-field theory
Force-field analysis is a tool which is helpful for interpretation of the methodological
approach which is undertaken for management of the changes which are made for development
of business organizations. Change management is important for business in order to have a
control over the different side-effects which may take place due to the changes that are essential
for the business (Rosdiana and Aslami, 2022). It is necessary for business organizations to adopt
the change management process in order to grow and generate better quality of output while
going through a situation of change in their business environment. With the help of this
approach, the organization is able to grow and enhance their overall performances in the business
environment successfully.
There have been different changes in the environment of Tesco which created issues for
the company to have a control over their performance in the industry. It has been crucial for the
organization to evaluate these aspects and develop a suitable strategy which can provide better
convenience for the organization to grow and generate better quality of output successfully. It
will be essential for ensuring a better response towards the development of the company in the
industry successfully.
Pushing factor

 A good market share in the industry is a major pushing factor for Tesco which motivates
the business to expand and undertake risks which can be beneficial for them in the future.
 Tesco has highly professional and experienced candidates which contributes towards the
overall development of the business in the competitive industry.
 Tesco has a strong brand image among their customers which is helpful for its promotion
in external markets and provides better assistance for the organization to grow and
increase their reach.
 A significant competitive advantage has been gained by the organization in the business
environment which is helpful for increasing its performance in the industry.
 Performance of the business in different conditions has been effective and the company
have given better results which is pushing factor for the business.
Resisting factors
 Availability of key competitors in the business environment may impose serious pressure
on the company which restricts its growth and sustainability in the business environment.
 The difference in the business environment of various countries where Tesco undertake
their operations is a major resisting factor for the business (Seipp Jr, 2019).
 Failures of business to gain benefit from their previous changes is another factor which
reduces the confidence of management to take risks and make effective changes in the
business environment.
 Lack of training and knowledge about the use of new and advanced technological tools
acts a resisting force and creates pressure on the business to grow in the industry.
 Lack of communication among employees which leads towards conflicts while initiating
changes leading towards an inappropriate environment for the business to gain benefit
and enhance their growth opportunities.

 Disapproval or less interest of the key stakeholders of the company in decisions taken by
the business to initiate changes may have a significant impact on its overall development
in the industry.
Ways to reduce resisting forces
Unilever can reduce the intensity of the impact of resisting factor with the help of
technology with the adoption of information system and data mining. Implementation of
information system can help the organization to analyse various elements of the market and can
be predicted. These are the tools which can be used to collect and analyse the information
regarding the internal and external factors of the business surrounding. Outcomes of the data can
be determined by the data mining technology. Decision making and strategical process is
influenced by these outcomes as it gives insight on the basis of facts and figures (He and et.al.,
2019). Moreover, higher accuracy in the outcomes of the analysis can be gained with the
implementation of Artificial intelligence in the data mining process which includes every aspect
regarding the data and the possibility of errors is reduced as it contain alignment of algorithms by
which the information goes through in the process of evaluation.
Methods to achieve objectives
For achieving the organizational objectives of Unilever it is necessary to evaluate the
factors that act as barrier to success of the firm. Effective strategy formulation is essential to
manage the effectiveness of business operation which may get disturbed by the evaluated factors.
Strategical implementation can provide aid to the negative effect of the influential factors on
success. Smooth flow of communication in the organization is necessary to avoid the confusion
that misleads the employees which eventually affects their work. Alignment of authorities can
help to maintain a smooth flow in the organizational communication which can help in proper
delivery of message to the staff (Khazzaka, 2019). Further on, feedback from employees can be
collected to determine their satisfaction level to know their dedication towards the organizational
goals.
Evaluating how the impact of change can be minimised and the application of appropriate
models for processing change efficiently.
Organization is concern with the major change in the digital technology which is highly
preferred these days. It effects various aspect of business organization which impacts the