Understanding and Leading Change: Business Strategy Analysis Report

This report delves into the complexities of leading organizational change, using Sainsbury and Aldi as case studies to illustrate the impact of change on business operations and strategy. It begins by comparing the two companies, highlighting how they adapted their strategies in response to external pressures, particularly during the COVID-19 pandemic. The report then explores how internal and external drivers of change influence team dynamics, individual behaviors, and leadership within organizations, emphasizing the importance of understanding these forces to navigate change successfully. It examines the ways in which internal and external drivers of change influence team, individual behaviours and leadership within Organisation. Different measures to reduce the impact of change on organizational behavior are evaluated. The report also examines the barriers to change and how they affect leadership decision-making, using Sainsbury as an example, and suggests various leadership approaches to effectively manage change. The analysis incorporates Kotter's Eight-Step Change Management Model to provide a structured framework for understanding and implementing organizational change.

Understanding and Leading
Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparison of two businesses where there has been impact of change on Company’s
operation and strategy.............................................................................................................3
TASK 2............................................................................................................................................6
P2 Evaluate the ways in which Internal and External drivers of change influences team,
individual behaviours and leadership within Organisation....................................................6
P3 What are the different measures that could reduce the impact of change on Organisational
Behaviour and evaluate them.................................................................................................9
TASK 3..........................................................................................................................................10
P4 Explain different barriers to change and determine how they affect leadership decision
making in Sainsbury.............................................................................................................10
TASK 4..........................................................................................................................................12
P5 Using different leadership approaches to deal with changes in Sainsbury.....................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Organisational Change occurs when Company alter their few components in order to gain
better results that helps in getting more success in Business Market. The Firm can make changes
in their structure, procedures, culture, policies, technology and strategy. The Change is important
for the Organisation as it helps to grow and succeed. With the help of change management,
company can successfully adopt the change process within Business. The Change process creates
a negative as well as positive impact on the Firm and its employees. Some staff members think
that change can increase their standard of living and some feel that it can affect the job position
and salary (Cat and Carroll, 2019). The negative impacts on employees are cut in their salary,
downgrading the job position, relocating to other city or country, loss of benefits and job loss.
Through changes, Organisation can learn something new no matter if they face good or bad time.
As, COVID 19 occurs which creates a huge impact on the businesses and people. Organisations
are changing their strategy and way of running the business due to sustain in Market (Clack,
2020). The report is based on an understanding and leading change in which the comparison of
two organisations stating the impact of change on its strategy and operations is explained, the
ways through which Internal and external drivers of change can influence team, leadership and
individual behaviour of businesses, measures to be taken to reduce the negative effect of change
on Organisational behaviour, barriers to change and using different leadership approaches in
order to deal with changes in Businesses.
TASK 1
P1 Comparison of two businesses where there has been impact of change on Company’s
operation and strategy.
The Organisation changes in their functioning of business activities when they face any
crisis, performance gaps, identification of opportunities or reaction to internal and external
pressure. Businesses can make changes in their mission, vision, technology, strategy, human
behavioural changes, Organisational structure, culture and task job design (Dudar, Scott and
Scott, 2017). COVID 19 enable the businesses to make the changes and perform their business
activities in different ways that helps organisation and customers as people are not allow to go
market and purchase their required items. So, due to the change in operation and strategy of
Organisation, customers can buy their products and fulfil their needs and requirements. As due to

COVID 19, Sainsbury and Aldi have change in their strategy and operation as there is rise in
online groceries orders.
Comparison of Sainsbury and Aldi
Basis Sainsbury Aldi
Company Description Sainsbury is one of the largest
supermarkets in UK; it was
founded in 1869 and situated in
London. The Company changed its
slogan with an aim to convey
message of value and quality, the
slogan is Live Well For Less. The
Target customers of Sainsbury is
Family unit, they mainly focus on
mothers. By using different
marketing mix to grab an attention
of Mothers. The Competitors of
Sainsbury are Asda, Tesco, Boots,
Aldi and Walmart.
Aldi is a supermarket chain
which was founded by two
brothers in 1946. The Company
follow the principle which says
great quality cannot come in
great price; the great quality
comes with lowering the price
every day. The Organisation is
known for the discount provider
as the cost of the products and
services provided by Aldi is low
as compare to most of the
Supermarket. The supermarket
has no frills store designs and
offer product at low price which
attracts customers to buy the
product and increase their loyalty
towards the brand. Aldi target
middle class people as their main
focus is on price.
Strategy The Strategy of Sainsbury is to
build strong brand reputation and
heritage for innovation, quality
and range and delivering more
value to people by making
shopping confinement and easy.
The Company has changed their
The Strategy of Aldi is to
provide products which
customers buy regularly and
make sure that the product must
be of high quality with low price.
Through this strategy, company
attracts large number of people

strategy by making changes that
helps customers through COVID
19 pandemic. Sainsbury is
focusing on simplifying their
operations and making changes in
cost saving programmes in order
to invest more in choice, lowering
price, innovation and food quality
for their customers.
towards the Supermarket as they
focus on providing products at
low cost. The Organisation
follow few principles that helps
in making business successful
they are huge saving, excellent
quality, Outstanding value,
Superb special buys and buy
with confidence.
Changes takes place The Organisation has made
various changes in its operating
activities so that they can protect
their customers and employees
from the disease. They are
providing doorstep delivery to
their customers for online orders.
The product will be delivering to
customers with safety and securely
by maintaining a proper social
distancing and getting into contact
of people. Sainsbury has expanded
its services in order to help
customers in tough time of
pandemic,
In COVID 19, the Supermarket
had make some changes in their
business activities and strategies
to make their employees and
customers healthy and safe. The
Company has supported the
community by maintain and
providing the products to their
customers. They maintained the
stocks of the product which is
frequently ordered so that the
customers may not face any
problem. The Startegy of the
Organisation is to offer goods
and services at low price but in
the time of COVID 19, company
provides free services to the
people who are in need of
products and services.
Due to COVID 19, Sainsbury and Aldi had faced loss as people are not allowed to buy the
products and services from store (Eisler and et. al., 2016). But, Despite of loss both the company
plays important role towards the community, Sainsbury provide an online product delivery to

their customers by ensuring that customers get the product with safety and securely. Sainsbury
and Aldi is a supermarket chain store, both have their unique principle and strategy which they
follow in making their business successful in Market.
TASK 2
P2 Evaluate the ways in which Internal and External drivers of change influences team,
individual behaviours and leadership within Organisation.
It is important to understand the driving forces of change if Organisation wants to create
better future and get succeed in Market. The Changes can create an impact on leaders, team
member and behaviours of the individual if company don’t have an understanding of forces of
change (Glow, Kershaw and Reason, 2021). A good change in Company can increase its
profitability and growth whereas if change doesn’t take place effectively and efficiently it can
influence the performance and profitability of business. So, it is necessary to understand the
driving forces of Change in order to run the business efficiently.
External Forces:
External forces of change can be very challenging even the company think twice before
making any changes in these forces. These forces are not in the control of Organisations, they
usually occur from outside the business that creates an impact on its growth and productivity.
The External driving forces include Changes in technology, Customer requirements, political
factors, competition, sourcing instability and supplier moves. These forces affect the team,
individual behaviour and leadership within Company as team member must know the reason
behind the changes in businesses, if they do not know the reason behind the changes it become
difficult for the Organisation to implement the change process (Hersted, 2020). The team
members must know the process of change as it can create an impact on their job position, salary
and location. The leaders also get influences with external changes as they have to lead the team
and provide them instruction regarding the change process; they are responsible to handle the
queries and doubt of employees in order to make them satisfied with the change process.
Individual behaviour also gets affected by the External forces of change as the employees have
fear and doubt if their job position in Company. For example, implementing new technologies in
Organisation can reduce the number of workforce which develops a fear among employees
regarding the job loss and salary reduction.

Internal Forces:
Internal forces of Change can also be a challenging but it can be controllable by the
Organisation. The Changes in Company can push to get out from comfort zone and work
differently with new strategies and policies. Internal driving forces occur within the Organisation
that affects the business in positive as well as negative way. The Internal Forces of Changes
includes Strategic, structure, process oriented, employee morale and technological changes.
These forces affect the team members, individual behaviour and leadership as the employees
have a right to know about the changes which company is going to take place in order to improve
their performance and profitability (Jalagat Jr, 2017). If staff members are satisfied with the
changes in Company, it can be implemented easily whereas if they dissatisfied with the change
process it become difficult for the firm to implement the change. The Organisation must provide
benefits to leaders and team members so that they get satisfied with the changes which are going
to take place within business. The leaders must also know what the changes are, how it must be
implemented, what are the benefits and consequences of changes within Firm. Through this
information, leaders can influence the decision of the employees and make them aware about the
benefits which are provided by the Organisation through Change process.
Kotter's Eight step Change Management Model
The Kotter’s Eight Step Change Management Model was developed after observing
leaders and companies through their change process journey. The Model includes the following
change management steps they are:
Establish a sense of Urgency
The First step of model conveys that a sense of need for change must be developed in
order to make changes in the business activities. The Employees and leaders must come out of
their comfort zone and understand the need of change.
Form a guiding coalition
In the second step leaders have to make a team of people that has understood the need for
change within business (Johnson, 2020). As, employer alone cannot implement the change
process they require a proper team to manage the entire process. The Organisation needs a
coalition of effective team members that can help in transforming the Change process.
Develop a Strategic Vision and Initiatives

The Organisation must develop a strategic vision as it helps in understanding why they
are implementing the change process. The employees can also easily understand the reason
behind the change process.
Convey the Vision for Buy-in
When Company defined the vision, it must be communicate with employees and leaders.
The Vision must be effectively communicated to the team members in order to make them
accept and support the change initiative.
Empower others to enact action
The Fifth step of model states that company must empower their employees by removing
obstacles. Leader and staff members must work collectively to remove the obstacles which arises
and blocks the journey of the Organisation towards Success.
Generate Short term wins
Firm must generate short term wins for their employees in order to motivate them and
make them feel the taste of success. The Company must focus on short term goals rather than
focusing on long term goals as it will be easy for the employees to accomplish it with effective
and efficient manner.
Sustain acceleration
To sustain the acceleration company must set goals and monitor the progress frequently.
It is the responsibility of Organisation to ensure that employees and leaders must work towards
accomplishing organisational change (Kroll, Kelly and Rates, 2019).
Incorporate change into the Culture
The Organisation must incorporate the changes into Culture by connecting the change with
performance results and integrate improvement into the process.
Critical Evaluation
The Company must implement the external and internal forces of change in order to increase
their growth and profit. The positive change in Organisation increases the morale and motivation
among the employees to give their best in making the business successful in Market. Through
applying Kotter’s Change management model, company can provide clear description regarding
the change process. The Model also helps in involving the employees for getting the success in
Overall process. Implementing the model in company requires a lot of time and also dissatisfied
the employees if their needs and requirements are not fulfilled.

P3 What are the different measures that could reduce the impact of change on Organisational
Behaviour and evaluate them.
Don’t keep employees in Dark
The Organisation must ensure that their employees must not be in a dark position; they
must get the true and genuine information regarding the change management process. The
Manager of the Organisation must communicate the change process clearly and ensure that it
must be understood by the employees. The miscommunication and negative gossips spreads
among staff members if in organisation there is lack of clear and regular communication
regarding the change process (Lewis, Williams and Baker, 2020). The Company must use the
effective communication strategy to make their workforce aware about the change process. Firm
must take feedbacks from their staff members related to the change management process in terms
of quizzes, surveys and polls.
Develop effective communication strategy
It is the responsibility of Company to create an effective communication strategy to make
understood and explain the change process easily to employees. Through effective
communication strategy, Manager can provide detailed information related to the change
management process and also inform about the benefits which employees can avail from the
change process. The Communication tool must ebb effective that makes staff members to
understand the reason behind the change process easily and effectively. The strategy must
include all the points which is necessary to discuss with the employees. It is necessary to
influence the staff members regarding the change process as if they are dissatisfied with the
change process it can create a huge impact on the profitability and growth of business.
Discuss the impact of Change
The Change management process cannot be implemented successfully if company do not
discuss the impact of change to their employees. The Manager must ensure that their staff
members must know the impact of change whether it would be positive or negative doesn’t
matter (Marsh, Waniganayake and De Nobile, 2016). The Workers have a right to avail the
information regarding the impact of Change process. If they get to know the impact of change
after implementing, company may face huge problem which can also create an impact on its
growth and profitability. If the change creates a positive impact on staff members they can give
their best efforts in achieving the goals and objectives of Organisation.

Organise training Programs
The Organisation must organise training programs for their employees in order to make
them feel comfortable with new technologies, processes and concepts. If the staff members get
training of adopting new technologies and process they can work efficiently and effectively and
also understand how it works. Through training employees can avail the information and learn
how to use the latest technology, it increases their knowledge, abilities and skills to accomplish
the task in effective manner. The training programs boost the morale and develop motivation
among workers to conduct the task with different way.
TASK 3
P4 Explain different barriers to change and determine how they affect leadership decision
making in Sainsbury.
The Organisation must make changes timely to sustain in competitive Market, changes
bring negative as well as positive affects that can help in increasing its growth and development.
Due to Coronavirus, Sainsbury has changed its strategy and operation in order to adopt the
environment and keep their more focus on online marketing. To determine the barriers to change
and its impact on leadership decision, a force field analysis must be used as it helps in taking the
action once the problem is identified by an individual (Peters, 2019). Through force field
analysis, Sainsbury can look out the factors that could affect the situation. With the help of the
tool, Company can identify, discuss and document the factors that affect or support the change
initiative. The barriers to change process and their influence on leadership decision making
process in Sainsbury are as follows:
No Effective Communication
No effective communication is the biggest reason for the failure of implementing
successful change management process. If Company fails to address the information related to
the change process effectively they can face severe los which can create a negative impact on the
business and also reduces their profitability. Sainsbury must ensure that there must be effective
communication between the manager and employees so that they can clearly explain the change
process and the reason behind implementing the changes. It is the responsibility of Leaders to
influence the staff members and make them aware about the change process so that they can also
be the part of implementing the changes.

Lack of Change management skills and knowledge
The Organisation may also face the failure when they don’t have proper and adequate
knowledge of change management which can influences the decision making of leaders. The
Leaders convey message to employees, they are responsible to involve them and keep providing
the information related to current situation. Sainsbury must focus more on short term goals to
encourage the employee engagement and make them feel valuable part of Business. They should
take advice and suggestion from employees so that they can avail new ideas to develop business
during COVID 19.
Implementing Latest technology
Implementing latest technology in the Organisation can also be the barrier of change
according to the force field analysis. The new technology can create an impact on the
performance and job position of employees. The new technology also influence the decision of
leaders they have to convince the staff members to adopt the new technology as it helps in
increasing the profitability and growth of business. The leader can take decision using forced
fields analysis as it helps in taking the action easily.
Schlesinger’s model
Schlesinger's model is used by the company to overcome the barriers to change and it
includes six change approaches which has supported the company in implementing it and getting
accident with the change management. education and communication is the first approach which
means that the company has educated their employees and communicated well with them so that
the good interaction flow can be performed within the organization. participation and
involvement is the second approach which means that they have encourage the employees to
participate in decision making and involved in the activities so that they can be motivated
towards change. Facilitation and support is the third approach which means that the company has
provided the good facilities and good help along with the support to help them in adopting the
change for better management. Negotiation and agreement is the fourth approach which means
that they have documented their agreements and negotiation in a proper way so that any ethical
or legal formalities cannot be left out. Manipulation and cooperation is the fifth approach which
means that the company has worked upon the manipulation strategy towards the employees so
that they can understand the benefits of change management and can perform their roles and
responsibilities in a potential manner. Explicit and implicit question is the sixth approach which

means that the company has forced the employees in a positive manner internally as well as
externally to perform their functions in an appropriate manner for better operations and
Management in the organization.
Force field analysis
It is used by the company to identify that how and what they can reduce in order to
barriers to change such that this analysis is divided into two groups that is forces for change and
forces against change in which the forces for change includes the and analysis of customers
wanting new products and improved production speed along with the reduced training time and
low maintenance cost. Forces against change includes the loss of staff overtime and staff fearful
of new technology along with the impact on environment and cost which is followed by the
disruption. All such forces depend upon the current situation in the organization.
TASK 4
P5 Using different leadership approaches to deal with changes in Sainsbury
Leadership is a process through which an individual get motivated to achieve the goals and
objectives of Organisation (Turner and et. al., 2019). The leaders provide guidance, inspire
people and influence them to follow their career path in order to become successful person. The
leadership approaches that helps in dealing with changes in Sainsbury are:
Participative leadership approach-
It is an approach through which Sainsbury can deal with changes as it helps in involving
employees in all the decision and they are treated as a valuable part of the Organisation. The
participative leadership approach encourages the employees to participate in decision making
process and inform tem the true situation of the change process whether good or bad. The leaders
in participative approach is approachable they maintain a strong relationship with their staff
members and also build trust among them.
Autocratic Leadership approach-
Sainsbury can also follow the autocratic leadership in which the leader have all the
control of making the effective decision and employees have to follow the instructions given by
leaders. In this approach, the staff members contribute very little input in making the decision
but it depends on the leaders whether they have to accept the suggestion (Waterhouse and Mann,

2021). Through autocratic approach, Sainsbury can deal with changes in Organisation as workers
have to follow the instructions no matter whether they get benefit from the changes or not.
Sainsbury must follow the Participative leadership approach as this approach is effective
in making the best decision which will be beneficial for employees, employer and customers.
Through this approach, company can avail different ideas to expand their business and provide
more services to people who are in need during COVID 19.
Bureaucratic Leadership approach-
Organization can apply the bureaucratic style of leadership which is defined as the
organizational leadership which is highly formalized in terms of procedures and the structures
which includes the rules and regulations along with the set of expectations and the particular
chain of command. this can help the company in getting all the work done on time with good
strictness of norms without any delays and particular functions for specific goals and objectives.
It removes the favoritism in the company along with the promotion of higher levels of creativity
which creates the strongest level of job security and centralizers duties within a team which
results in seeking the creation of best practices.
Lewin's Change Management Model
Unfreezing-
This is the first stage of Lewin’s change management model, in this stage company
influence their staff members to accept the changes effectively and come out from their comfort
zone to different situation. Sainsbury must ensure that their employees must take initiative for
the change process it can be possible by providing them valid information and ensuring that their
standard of living will also be raised by adopting new changes in Organisation.
Change-
The change stage is the second step in change management model that makes staff
members to accept and give their efforts in implementing the change process. The Employees
must participate and get involved in endorsing the change. The change stage is difficult as
workers have more concern about the uncertainties and they also have fear of adopting change
process.
Refreeze-
Refreeze is the third stage of Lewin’s change management model, in this stage employees
get stable with the change process and accept the new ways of working. The leader of Sainsbury

must ensure that employees must feel comfortable and confident while working with new
process and ways due to COVID 19.
CONCLUSION
It is being concluded from the above information that to get successful in this competitive
market it is important to make the changes which increases profitability and growth of the
Organisation. The Company must know consequences and benefits while implementing the
change process; they should collect information related to the things which is required to
improve the performance and productivity of business. There are various barriers of change
which can be overcome by applying different leadership theories.

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