Table of Contents
2.0 Analyze the recent history of Tesco and explain how changes in the external environment including the COVID-19 pandemic have impacted Tesco business.
2.1 Analyze the recent history of Tesco.
2.2 Explain how changes in the external environment including the COVID-19 pandemic have impacted Tesco business.
3.0 Develop a model for change, incorporating issues related to strategic change in Tesco including how the change was managed and the leadership style.
3.1 Force field Analysis.
3.2 How the changes were mind in Tesco’s business.
3.3 Resistance to change.
3.4 Tesco leadership style in its current change management
3.4 Develop a model for changes.
4.0 Evaluate the impact of organizational culture on the change management program and develop a suitable change management plan for the future.
4.1 Impact of Tesco organizational culture on its current change management program.
4.2 Develop a suitable change management plan for the future of Tesco.
Management can be regarded as the most vital part of every business organization because an effective management process can help to bring the discipline and success of the business firm (Fisk, 2019). Subramanyam and Halsey (2017) stated that environmental change of the organization indicates the change in the working environment, culture, HR process, production process and distribution process. According to Scholtens (2018), Organizational capability indicates the capacity of an organization to control and manage its human, financial and other resources. The organizational capability also depends on the capability to fulfill the demand of the customers. Bumbac (2016) noted that workplace changing indicates the change in the working system, culture, and production and distribution process. This report focuses the leading and implementing working change for a well-renowned company named Tesco.
Tesco plc is operating a business in several countries specially focused on UK market with headquarters in Welwyn Garden City, Hertfordshire. It is the largest retailer and it has earned revenue of £63.911 billion, operating income of £2.206 billion, net income of £1.320 billion in 2019 (Tesco, 2020). This retailer has 450,000 employees to serve customers around Europe and Asia. It was launched its functions in 1919 with one store but at present, it has 6,800 stores in several countries (Tesco Financial report, 2020). But the present situation is not favorable for this company because of COVID-19. For this reason, a change in the working process is required to run a business in this pandemic situation. Firstly, this report evaluates the recent history of Tesco and explains the effects of the COVID-19 pandemic and other external environmental factors on Tesco’s business. Secondly, it develops a model for change for Tesco with the management process of change and the leadership style. Finally, it presents the impact of organizational culture on the change management program and develops a suitable change management plan for the future.
2.0 Analyze the recent history of Tesco and explain how changes in the external environment including the COVID-19 pandemic have impacted Tesco business
2.1 Analyze the recent history of Tesco
Journey of Tesco
Tesco plc is operating a business in several countries specially focused on UK market with headquarters in Welwyn Garden City, Hertfordshire. It was established by Jack Cohen in 1919. This operation was started from the East End of London. Ward (2019) noted that Tesco was regarded as a brand in 1924 and this company was launched 100 stores in several locations in London within 1930. It was purchasing a few amounts of groceries and offering to the customers. After 1960, Tesco was initiating to increase its business in several regions with more product segmentation (Stevens, 2020). At present, it has 6800 shops around the world. This company also has a great contribution to removing the unemployment problem and this company has 450,000 employees to serve the customers around Europe and Asia (Tesco, 2020).
After the year 1990, Tesco had started to bring more change and expansion of the business. Firstly, Tesco provided the Clubcard facility for the customers in 1995. In this Clubcard, Tesco added 5 million card users in 1996. Tesco has developed its website in 2000 (Tesco Plc, 2020). The website of Tesco was very well decorated and 2 million potential customers have visited this website every month (Ward, 2019). Then, Tesco was starting to provide various offers to their customers in the online method of purchasing. After that, Tesco has started an F&F system for the customers to provide fashion-related products. This was Tesco’s first major push into fashion retailing. Tesco has started its activities in the USA market in 2007 by offering Fresh & Easy shopping for the customers. Tesco had started banking activities in 2009 that title was the Tesco Bank. After launching Clubcard, the number of customers of Tesco was doubled in 2010.
This year, Tesco launched a store with zero carbon. This year also was remarkable for Tesco because this company was developed an app of Clubcard for the customers (Tesco Plc, 2020). From the year 2012, the value of Tesco was increased due to its better quality of products and services. After this year, Tesco has opened a dot-com store in Erith. This store was the turning point for Tesco’s online business. Due to the huge demand of customers, Tesco increased its products range and added 400 new products with a good packaging system in 2013. Tesco developed its products for ensuring the healthy life of the customers in 2014 (Tesco Plc, 2020). From 2015, Tesco used environment support poly bags to save the environment from pollution. Tesco had created an opportunity for children to get free fruit from their shop in 2016. Tesco also did a merger with Wholesaler Booker Group for establishing a large business all over the UK in 2018.
In 2020, the world economy is facing lots of problems due to the spread of Covid-19. Barker (2020) stated that Tesco is also facing serious problems to run its offline as well as online stores. For this reason, Tesco is changing its online shopping system because of COVID-19. The prices of products, delivery time and delivery costs are changing by Tesco for this pandemic situation. Tesco is charging £4.50 or £5.50 for each delivery from August 5. This company is charged a flat rate of £1.50 for click & collects (Tesco Plc, 2020). Tesco is developing a Delivery Saver plan for customers to create opportunities for free delivery to the customers. These changes bring outstanding outcomes for the online business of Tesco in this lockdown situation (Tesco Plc, 2020). Tesco is getting more orders in the online platforms and the staffs of Tesco are very serious about the smooth delivery of the products to the customers. In addition, Tesco is launching a home delivery system to customers who regularly purchase products from online shops. Tesco has also updated the maximum item restriction. It was 80 items but it is now 85 items (Tesco Plc, 2020). However, some customers also face negative experiences and share their negative views on social media……………………
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