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

This report delves into the complexities of understanding and leading change within organizations, using Tesco and Marks & Spencer as case studies. It examines the impact of various organizational strategies and operations, particularly in response to external factors like the COVID-19 pandemic and Brexit. The report analyzes different types of organizational change, including structural, strategic, people, and process changes. It explores the Kubler-Ross change curve model to understand employee emotional responses to change. The report further identifies internal and external drivers of change, such as political, economic, social, and technological factors, and how they influence Tesco and M&S. It also discusses strategies for minimizing the negative impacts of change, including addressing the psychological effects on employees and managing team dynamics. Various leadership styles are also considered in relation to change management and decision-making. The report highlights specific actions taken by both companies, such as Tesco's shift to a hierarchical structure and M&S's adoption of online sales, in response to changing market conditions. Finally, the report concludes with a discussion of how to initiate and implement change effectively within an organization.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
LO1..................................................................................................................................................4
Compare the impact of these organization strategies and operation............................................4
Type of organizational change.....................................................................................................5
Different drivers of change..........................................................................................................7
LO2..................................................................................................................................................8
Measure to minimize the negative impact of change...................................................................8
Recognizing and responding to drivers of change ......................................................................9
LO3................................................................................................................................................11
Force field analysis....................................................................................................................11
LO4................................................................................................................................................12
Different leadership style to deal with change...........................................................................12
CONCLUSIONS............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
The understanding and leading changes refers to development of experiences for the
people, the change in organization refers to process of growth with adopting the change and
transform accordingly. Every organization uses to change its method regularly as per the external
change to sustain in the competitive market. The Tesco and M&S are two different organization
in retail sector try to give quality of product and enhance the profitability. As the COVID-19
have influence all the companies to change their activities as per the impact due to pandemic
period (Bastos Lima and Persson, 2020). This report evaluates the different ways that change
influence on the following organization's strategies and particular operation. This will explain the
impacts of drivers of change have on the behaviour of Tesco and M&S. It will further determine
the hurdle that influence the leadership style and their decision-making and to initiating the
change the leadership approaches are to be applied.
MAIN BODY
LO1
Compare the impact of these organization strategies and operation
Change has become a necessity of every business because without change the organization can
not able to sustain in the market. As the change management has become most crucial factor
behind the sustainability and success of the organization (Blanco-Portela and et. al., 2017). In
today's world the change in businesses world is on rapid speed. If the company not able to grab
the change or delay in adopting the change then many opportunities are left behind by that
company.
Changes in business are those which help organization to reach where they want to reach
from the place where they are now (Gloss, 2019). Basically there are three types of changes in
business help businesses to sustain and grow with the change. Developmental, transformational
and transitional are the type of change which are mainly used by the businesses.
Impact of view of changes by management as well by employee
The changes come with various new methods and situation the employee role and its perception
may affect the view to the change and this influence the productivity as if the employee is
willing to do its responsibilities and have a positive vision to change then ultimately leads to

increase in outcomes and if the employee not committed with the work then they are less
effective to the business (Gräßler And et. al., 2019).
The management role and their perception also affects the organization revenue and its
growth. As the role of management to manage all the activities that duty has to followed by them
but is their perception is not according to the role then it affect the activities and function in
organization.
Type of organizational change
Organizational changes are those which lead to change in function and process of
company. Basically there are four type of change in organization. Structural change are those
spectacular change that any organization or industry brought by any development in economy.
Strategies change are those which is done by organization to reach somewhere better in its future
to get competitive advantages. People change refer to change the people as per the need of
organization and type of work they have in the functions. The process change is change that is
occurred in any organization when they introduce a new function in between the existing
functions.
The Tesco is a multinational company provides grocery have headquarter in Welwyn
garden city. The company has changed its strategies as per the need in pandemic situation of
COVID-19 the Tesco is using flat hierarchy to transfer the information and suggestion but after
the pandemic period the company have take strategic change to change flat structure to
hierarchy so that all the employee can not directly contact with the board members or managers
they have to report to their individual senior about the issues.
The Marks and Spencer British retailer brand having its headquarter in London the
company has made a change in the situation of COVID-19 earlier they are using only sale by
store but after the pandemic time the company has started selling its product by online process
this help company to enhance the sale. They made strategic change to reach its potential and new
customer.
Kubler ross change curve model
It is a change curve developed by kubler ross that explain the internal emotion of an
individual that travel its experience while dealing with a particular change. There are several

stages in this model that identify various levels that explain the changes management and
adoption or change by Tesco and M&S (Juntunen, Ahokangas and Nguyen, 2018).
Shock: Tesco is earlier following the flat structure for completing its functions and the mangers
change the communication system to hierarchy in the pandemic time shock all the employees.
So, it can be stated that firstly the employees are not able to adjust according to the change as
they are somewhat shocked.
M&S has faced shock when the COVID-19 comes and the functions are totally disturbed
in the organization. Due to international lock down the company can not able to sale its product
physically as the government restrict the physical touch and the customer can not travel in this
situation. In this starting the employees of M&S get shock and not able to understand the change.
Denial: The employees of Tesco disbelief to the change of structure and looking for the
evidence. As per them the flat structure is efficient to perform their activities and transfer the
information in the company.
The M&S are denial to the change of selling their products by online method according
to the employees the stores are good to sell their products. So they use to look for an evidence
that proof this method is more efficient.
Blame and anger: The employees of Tesco blame each other when they not able to complete the
task with this. Then the employees may get anger and tries to blame others.
The M&S employees also get anger due the change in distribution of products (Kord
Toudeshki, Seyyedi and Salajegheh, 2020). COVID-19 has lead to lock-down and by that store
are close and people can not buy the needed products so when the manager inform employee to
sell product online.
Bargaining: Tesco people waste lots of time in anger then when the employee bargaining in this
the employees find the way to resolve the issues with the best possible manner.
The employees of M&S bargain and find the best way to sell its product efficiently.
Depression: After finding the way the stage of depression comes in that employees of Tesco get
depressed but its stage is not for long time. They are not in mood to adopt the change and fill
depressed.
The M&S employees are depressed with the change and not in mood to adopt the change.

Acceptance: Employees of Tesco rapidly accept the change and try to learn the way of working
in changing situation with a positive attitude towards the work (Kord Toudeshki, Seyyedi and
Salajegheh, 2020).
Whereas M&S is not able to accept rapidly but later on they understood the change and
tries to overcome to the situation.
Problem-solving: Tesco employees are further accepted with the change in structure and the
problem which are being arrived in the changing situation.
M&S has also accepts the change and the change problem is resolved in the company.
Different drivers of change
There are different type of drivers of change that can be explained through internal and
external factors:
Factor Tesco M&S
Political
factor
Tesco operates its business in Britain
market and recently government has
implemented Brexit so manager has
decided to make change in its
organization structure. With an
objective that information can easily
transfer from top to bottom and several
activities can be easily complete in limit
time.
The M&S is also faced the issue of
Brexit that resulted in decrease in
overall sales volume of company.
Therefore, the company has decided to
sell its product by digital technology so
that potential customers can easily buy
their needed products.
Economical
factor
In this time of pandemic and Brexit
situation the Tesco profit ratio has been
decreased so the company has change
its organisational structure for better
outcome.
The M&S have affected by the inflation
in the economy as people are not have
that much of money to invest on the
products offered by company.
Therefore by making use of online
selling the cost has been reduce and the

customers can easily buy its products.
Social factor The people of Tesco are confused as
they not have particular order to follow
so to solve this company has change its
structure to hierarchy so that every
employee have a particular person to
report.
With covid-19 most of the people in
society preferring to have online
shopping so Marks and spencer has
decided to make use of digital
technology in order to satisfied needs of
customers in better manner.
Technology
factor
With development of technology and
change customer preference Tesco has
decided to make necessary change in its
organizational structure. Thus it
contributed in meeting customers
expectancy.
M&S is changed its technology by
selling its products by online way this
help the company to adopt the
opportunity.
As per the analysis the main changing drivers for Tesco is the social factors because the
employees are now following hierarchy on the other hand M&S technology is the main changing
driver.
Strategies related to dealing with change: Tesco has change its communication channel
because earlier all the employees are directly reaching to manger even for small issues, so they
shift to hierarchy system that help to avoid the informal manner of information. M&S has change
its technology for get competitive advantage for that they have created website that attract the
customer.
LO2
Measure to minimize the negative impact of change
Psychological impact of change on people: The management of Barclay bank is trying
to take steps to manage the change as if the change comes then the bank management can easily

adopt the change. As whenever the change comes the people and customer are shock, and they
need to be informed about the change (Watts and et. al., 2018).
Positive: As the change will lead to growth of bank because if the bank not change as per the
situation then they will not able to sustain in the market for long period. Barclay bank have to
adopt the change as if the Brexit situation arise and bank management not change its policies
according then people not have interest in the bank and ultimately bank will not sustain in the
competitive environment. The managers of Barclays are taking measure by motivating the
employees on regular basis as employees need and the change have different negative impact so
a good leadership assist in minimizing the effect of change in Barclay. The managers of Barclay
not let its employees in dark they just communicate all the necessary information to them.
Negative: The employees have to come out from their comfort zone because if the change comes
then people don't have idea, and they faced issue in adopting that and have to make lot of affords
in that so the employee have to make comfort to adopt the change so that it can sustain in the
market.
Impact on team dynamic
As the change comes in environment than the Barclay bank employees team influenced
by the change the activities which they perform previously will change totally. The team in
Barclay bank is are not doing work jointly as after the change they started working
together.
The managers and leaders are using various leadership style to lead and manage the
employees of Barclays bank (Turesky and Peabody, 2018). The managers are trying to manage
the work of employees on regular basis so that they can check whether the change is adopted by
them or not. Leaders are using efficient leadership style that is democratic and transformation
style will help to lead employees of Barclays bank with the democratic style leadership the lead
take opinion of the employees so that they get motivated and perform the activities more
efficiently. The transformational leadership help to improve perform of Barclays bank so that
they can achieve the goal and objectives.
Recognizing and responding to drivers of change
There are various drivers that influence company to bring change in the organisation so
that it can retained its positioning in external environment (Goodrich, Udas and Larrington-

Spencer, 2019). Likewise, Barclays bank has decided to bring changes related to upgrade its App
so tat more facilities can be provided to customers. Such as the company has change its
application to operate the account for its potential and new customer. They have upgrade the
function and features that provide more conveniences to people to take various services and
satisfied their respective needs (Fattore, Iacovone and Steccolini, 2018). Burke Litwin model is
used to understand drivers of changes such as:
External environment: There are numerous changes in external environment that affects
business operations such as with development in technology Barclays bank has decided to
upgraded its application.
Mission and strategy: Barclays bank mission is to provide better experience to customers so it
has planned to upgrade application for better outcome.
Leadership: The leaders of company has also enforced company to bring necessary changes that
can be beneficial for organization.
Organization culture: Barclays bank has friendly and innovative culture that drive it to bring
new changes so that needs of customers can be fulfilled.
Structure: Appropriate organization structure of company also act as driving factors as it helps
in effective implementation of change.
System: Rules, procedure and effective policies, system has contributed in making updatation in
application for customers satisfaction.
Management practice: Manager has followed transformation practices thus it is interested to
bring new changes in the organization.
Working climate: Innovative working climate also act as driver of change to add more features
and facilities in the application for achievement of end goals of firm.
Task and skills: Barclays bank has skill or employees that are talented to develop new
application that can provide more ease to customers.
Individual values and needs: Manager of bank value and satisfied needs of each individual that
contributed in making changes in the organization.
Motivational level: All employees are highly motivated to adapt to change that are fruitful for
organisation.

Individual and organizational performance: Highly skilled, qualified and experienced
employees helps company in influencing to make necessary changes in application so that needs
of customers can be fulfilled in the best possible manner.
LO3
Force field analysis
The force field analysis assist in development of social science factors. It looks to the
forces that help to find the drivers of change and there resistance (Stone and et. al., 2018).
Selfridges is an departmental store in the market of Britain while making a change there are
different drivers who are influencing the change. Force field analysis have following element:
DRIVING FORCES OF CHANGE
There are different drivers of change which lead Selfridges to make change.
Technology: As the technology is rapidly changing people are preferring latest and updated so
the Selfridges is influencing the company to upgrade its technology on regular basis. Therefore,
the company is upgraded it technology by planning to make use of digital technology to attract
maximum number of customers.
Customer preference: The customer are preferring good quality of product so that company
have to maintain its products quality so that potential customer will loyal towards the brand and
new customers also will attract towards the brand. Therefore changes in taste and preferences of
customers has motivated company to bring change for better outcome or achievement of end
goals.
BARRIERS OF CHANGE
As when company make change there are different hurdle while making any kind
of change those are called Barriers of change (Kahunyo and Waithaka, 2019). The employees
and managers of Selfridges are facing issues which can be explained as follows:
Awareness and knowledge: Employees are not aware of the change that company is planning to
bring such as use of digital technology to generate awareness among customers. Therefore, the
employees should be aware of all the information related to change so that they can put
necessary efforts for bringing change.

Lack of resources: Less resources in the organisation is also an barrier in the implementation of
change. Such as Selfridge while making change does not enough amount of financial and others
resources that could contribute in smooth operation of business. Thus, lack of resources acts as a
barrier to adaptation to change.
RESISTANCE TO CHANGE
There are various individuals that resist to accept change due to lack of confidence and
fear of losing comfort zone. So, the resistance of change for Selfridges can be stated as follows:
Lack of confidence: There are various employees in the firm that does not have confidence level
that they are able to put their effort as well as time to make updatation in application so that more
ease and comfort can be provided to customer's. Therefore, manager has tried to build
confidences by providing appropriate guidelines and support so that they can easily complete the
task.
Fear of losing comfort: Another resistance of change is that most of the individual fear of losing
their comfort zone thus create resistances in adapting the change. Therefore, manager of
Selfridges has tried to make use of motivation and effective communication in order to remove
fear of individual to losing their comfort zone and trying new and new method to complete the
task. Thus, it has contributed in achievement of end goals.
LO4
Different leadership style to deal with change
The leader is a person who lead and guide the group of people in organization so that
they get motivated towards the work and perform better (Kark, Van Dijk and Vashdi, 2018). The
leader in Tesco uses different leadership style to deal with the change that arrived in the
company. The change can be managed by different leadership styles that are:
Situational leadership style: The leader use situational leadership style to deal with the change
as leader in this lead the employees as per the situation. This leadership style is flexible with its
nature as wherever change comes in environment the leaders guide its subordinates to make
change accordingly (Huang and et. al., 2017). Tesco is an international company the managers
and leaders of company are have to deal with different situation so with the help of situational
leadership the leader can easily move insistently to another leadership style as per the situation.

When the lock-down occurs Tesco have change therefore, with situation analysis the leaders
guide the employee to retain with the organization as people thought their job is not permanent in
Tesco.
Transformational leadership style: This leadership style assist to identify the change that is
needed for the company and develop a clear vision to guide the change. With the help of this
leadership style leaders in Tesco will inspire the employees so that they can think innovative
while dealing with the change (Lemkul and MacKerell., 2017). In the change of lock down the
companies employees are disturbed and not able to perform their best in their task for this Tesco
leaders can use the transformational leadership to inspire and motivate its employees so that they
can easily adopt the change and also assist in growth.
Lewin's three steps model
It is change model that specify about the way company has effectively manage or
minimise the negative impact of the change for smooth operations of business external
environment (Sriyakul and et. al., 2019). Such as:
Unfreeze: It is stage at which most of the employees are not ready to accept changes due to lack
of confidences, motivation, skills and capabilities to take action related to updation of
application. So, leaders of Barclays Bank have provided necessary information to employees so
that they are to adapt change for growth of firm.
Change: It is another stage in which company plans to bring change that is related to
upgradation of application so that more facilities and conveniences can be provided to customers.
In this stage leader’s rewards and recognized employees to motivate them to accept new method
of delivering services to customers so that company can retain its market share for longer time
frame. Furthermore, it by openly and clearly communicating employees about the change is able
to get maximum outcome.
Refreeze: In this stages, manager of Barclays Bank has put efforts that employees does not
refreeze to their old method to do particular task. So, it continuously monitors performance of
individuals in order to find that change is stable and contributed in achievement of company
goals.

CONCLUSIONS
This file concludes that leading change refers to how to understand the change and taking
respective action. The change is very necessary without making change the company can not
sustain in long-term the company make change so that business can achieve its goal. Their are
different organisation change have direct impact on the company. Tesco and M&S have two
different organisation which have made a change as per the external change of Brexit and
COVID-19 to sustain in the market. As with the help of Kubler ross change curve the companies
can know when they are able to adopt and retain with the change. The changing driver of Tesco
is organisation structure and M&S changing driver is selling its product by digital technology. At
last it can be concluded that leader by effective managing several changes is able to promote
growth and success of organisation.
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