Understanding and Leading Change: Impact on Business Strategy

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This report analyzes change leadership within Unilever, Tesco, and Morrisons, focusing on the drivers and impacts of change on business strategies. It includes a PESTLE analysis for each organization to identify key factors driving change. The report evaluates the impact of change on organizational operations, strategies, leadership, teamwork, and individual behavior. It also assesses methods for reducing the negative impacts of change and the application of change management models, such as Lewin's theory, for effective implementation. The analysis covers specific changes like Brexit, inflation, evolving customer preferences, and technological investments, detailing their effects on company performance and strategic decision-making. The report concludes by summarizing the intended changes, their drivers, and their desired impacts on the selected companies.
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UNDERSTANDING AND
LEADING
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Table of Contents
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................5
LO 1 : PEST analysis regarding given firms to identify main drivers.........................................5
2. Introducing impacts regarding change plus drivers including how it affects organizational
strategy.........................................................................................................................................8
LO 2...............................................................................................................................................13
Evaluating the ways through which change management will impact leadership, individuals
and team behaviour....................................................................................................................13
LO 3...............................................................................................................................................16
Brief discussion of the force field theory...................................................................................16
Examples of real changes that are being introduced by Morrison’s..........................................16
Discussion of all resisting and driving forces for the change and numbering it from 1 to 5
depends on the strength of the forces.........................................................................................17
Ways through which Morrison can reduce its resisting forces or barriers.................................18
Achievement of Morrison objective by barrier reduction and change implementation............18
LO 4...............................................................................................................................................19
Discussion on intended change in Morrison, drivers for change, its impact on company and
desired impact............................................................................................................................19
Implementation of these changes using Lewin theory...............................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................21
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INTRODUCTION
Understanding along with leading change seems to generally prepare participants
particularly for meeting issue including problems that generally come with beginning in
conjunction with implementation change. Change is vital for success in an organization in case
it leads or understand in appropriate manner. The organization should try changing instead
having fear of change. This change in a business generally implies the modification along with
remodelling that occurs within total working zone. There are multiple resources due to which
such change happens in a business organization like change within structure, people, aspects and
technology alterations etc. Unilever is a multinational firm located within London. Tesco plc is
again a multinational organization located in the Welwyn Garden City of England. Morrisons is
4th largest retail chain in UK ( (Neumann, James and Vince, 2019)).
Following report comprises an introduction for drivers and effects of change including
how it generally impacts the business strategies. Along with it a brief of chosen organizations
like Unilever, Tesco plus Morrisons is also given. It also comprises PESTLE analyses regarding
each organization to identify their key drivers pertaining change. Furthermore, report also has
evaluation of mentioned business on effect of change with its impact on business organization's
operations plus strategies. It also highlights whether change will impact the leadership,
teamwork behaviour plus individuals. Lastly, the report also assesses how impact regardin
change is reduced and application of models generally work efficiently.
MAIN BODY
LO 1 : PEST analysis regarding given firms to identify main drivers
PEST analysis forms part of PESTLE assessment tool that helps the firms recognize their
external surrounding and analyse factors that disrupt functioning of operations. The Pest analysis
will highlight the political, economical, sociological and technological aspects of Morrisons,
Tesco and Unilever (Christodoulou and Cullinane, 2019).
Dimensions Morrisons TESCO Unilever
Political ï‚· Brexit led to ï‚· China plus ï‚· European
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the most
challenging
political
environment
that not only
influenced the
organizations
rather the entire
country.
ï‚· Political
regulations also
immensely
impacted
Morrison.
Asia's import
activities
affected its
exports in
another nations
also.
ï‚· Substantial
taxes on
supermarket-
chains in UK,
led Tesco to
augment its
prices
regarding
goods.
commission's
rules and FDA
administration
is needed to be
adhered by
Unilever.
ï‚· Substantial
restrictions
imposed on the
export and
import can
obstruct
smooth
functioning in
Unilever and
could affect
company's
success.
Economic ï‚· Complex
budgets and
contributions
of customers
are
consequences
of increase
within Oil
prices that has
limited sales of
this company.
ï‚· Alterations in
labour costs of
this retailer and
setting
regarding
standard wage
rates for
labourers has
affected in
ultimate
growth in the
ï‚· Serving the
country with
qualitative
goods and
cheaper and
reasonable
goods forms a
set-priority and
methodology of
this company.
ï‚· High inflation
in UK economy
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ï‚· A great
fluctuation in
currency of UK
since Brexit
has impacted
the consumers
purchasing
power.
company.
ï‚· Cost, profit
margins and
price-structures
are other
aspects that
come under
mentioned
factors.
has huge
impact upon
Unilever and
it's also
affecting its
sales in
Unilever and
hampering its
growth.
Socio-cultural ï‚· Customers are
becoming
largely health-
conscious and
preference of
Morrisons'
consumers are
increasingly
changing.
ï‚· Rising rate of
elder
population is
generating
huge scope
regarding the
company.
ï‚· TESCO could
consider
changing the
patterns
regarding
consumer
lifestyles plus
offer them
healthy
products.
ï‚· Tesco's fast
deliveries and
profitable
return policies
might lead to
increase
within
company's
revenue.
ï‚· With regard the
sociological
considerations
taken within
this company,
Unilever has
generated a
very solid
brand image.
ï‚· Unilever is
concerned with
the expectation
of people to
fee and look
better. The firm
wishes to
accomplish
these desires
through coming
up with
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products.
Technological ï‚· Investing for
adoption of
technologies
has assisted
Morrisons for
becoming even
more
efficacious in
its
functionalities
as compared
with
previously.
ï‚· The company
could invest in
the research &
development
department for
improving its
operations even
more through
building
different
software
systems.
ï‚· Launching of
RFID
technologies
within Tesco
has augmented
the customer
experience
during
shopping.
ï‚· The firm seems
to come up
along with its
individual
system of
cellular
payment, also
termed as
PayQwid. It is
another techno-
innovation
which has
raised its
consumers'
experience.
ï‚· Unilever firm
has emphasized
upon
developing the
unique methods
regarding
advertising plus
marketing (in
terms regarding
digital aspect)
that can benefit
this company in
coming or near
future.
ï‚· It has a goal of
becoming the
market ruler,
through
utilizing great
automations for
the proper
competition in
its best
probable way.
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2. Introducing impacts regarding change plus drivers including how it affects organizational
strategy
Organisatio
n
Changes Drivers of
change
Impact on strategy Impact of
operations
Tesco
1 Large taxes on retail
chains of UK, led
Tesco to increase its
costs of the
products.
Government is
driver to
balance the
supply-chain of
money within
the nation.
The main strategy
regarding Tesco is
offering the goods at
an affordable pricing
and adhering cost
leadership for
obtaining maximum
product with
maximizing its sales
through serving the
country with
affordable charges.
But its has affected
strategy of this
company adversely
and also raised its
costing, minimizing
its margin of profits
and sales both
(Adamyk, 2019).
The firm's
operations seem
all disturb
pertaining tax
increment and
organization is
not capable to
produce goods as
effectively as was
doing previously.
2 Modification in the
labour-related
costing of this
company and
Administration
for avoiding
severe kind of
Tesco's every strategy
focuses on cutting
short its costing of
company and
Because of this,
the company
seems not able in
managing large
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establishing of
standard pay rate for
its labourers has
affected in ultimate
growth regarding the
company.
labour abuse. presently the high
worker rate is
hampering its strategy.
numbers of
workers as it will
have to bear
expenses which is
affecting the
efficacy of this
company.
3 Tesco's swift
deliveries and
beneficial return
policies might lead
to increase in
company's
profitability.
Alterations in
consuming
behaviour and
habits.
The exchanging and
return policies at
times also cost incur
prices for the
company and is
dissolving the strategy
regarding making
great revenue/great
profits.
It has created
good demand of
talented
workforce which
can manage all
these upcoming
facilities
effectively.
4 The firm has
surfaced with its
individual system
concerning online
payment, termed as
PayQwid. It is
another techno-
product which has
augmented the
buyer's experience.
Customer's
satisfaction
It has called for
changed functions and
has improvised the
organization's
strategies of five
billing stations.
It has enhanced
firm's base of
customers
offering a solid
experience and
seems to keep
interest of the
consumer base
aligned.
Organisation Changes Drivers of Impact on strategy Impact of
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change operations
Morrisons
1 Brexit resulted
in one most
challenging
political
environment
that not only
impacted
several
organizations
rather even the
entire nation.
Setting anti-
establishment
politics.
It impacts positively
upon Morrisons. The
firm holds greater
share within the market
along with a clearly
defined focus.
This specific
change has
increased this
company's
efficacy along
with its
profitability.
2 Regulated
budgets and
influencing of
customers count
as consequences
of rise in oil
prices that has
limited sales of
company.
Inflation in
UK economy
because of
Covid-19
This company
strategies majorly
influence affiliated
sales of company, but
due to high prices the
firm's strategies are
gaining no good.
As its result the
yearly turnover
of company gets
highly affected
plus the
company isn't
able for
performing its
operations
smoothly.
3 Customers are
getting more
health inclined
and the favour
of consumers
are swiftly
changing(Muma
Altering
trends and
firm's thinking
pattern.
It enables the
organization to make
strategic decisions
related to
manufacturing of
hygienic food products
and beverages.
It has led to a
great demand of
hygienic
products and its
operations
related with
manufacturing
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ni, Stone and
Wang, 2018).
are mainly
performed
keeping within
mind the
hygiene
conscious
environment.
4 Investing for the
adoption of
technologies
has assisted
Morrisons to get
even more
efficacious in its
functionality
than it
previously was
(Gao, Meng and
Meng, 2020).
High
competition.
It has held good for
this company's strategy
since the firm is now
capable to maintain
pace with the
manufacturing and is
even able to get the
customers' access
efficiently (Vallati and
Grassi, 2019).
It has
improvised plus
changed its
operations of
this company as
its operations
performed
within the
manufacturing
for the accurate
billing
procedures seem
completely
evolved.
Organisation Changes Drivers of
change
Impact on
strategy
Impact of
operations
Unilever
1 Numerous Fiscal laws This casts a poor It has impacted
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