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Leadership And Change Management In Tescos Zero Carbon Supermarket

Paper Type: Free Essay Subject: Business
Wordcount: 3424 words Published: 1st Jan 2015

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Over the years a lot has been written about the change. Some of which, is not appropriate and then uncontrolled change results in chaos.

Why do we or an organisation needs change? There are some points that are here written under.

Personally or as groups we need to evolve, equipments has to be replaced, new products need to be developed , business process need to be modified due the threat of opportunities, events, culture etc. In nut shell, he who wants to progress, success, and achievements needs change.

Change management means different things to different people and different companies.

Why organisations required changing

Various things cause companies change. These consist of:

Growth challenges, particularly worldwide markets

Economic challenges downturns and bitter trading circumstances

Strategy changes

hi-tech changes

economical and competitor pressures, together with mergers and acquisitions

client force, mainly changing markets

to learn new organisation performance and skills

Government law and legislation/initiatives.

The big impact of failures to introduce valuable alteration can also be high loss of marketplace situation such as elimination of senior supervision, loss of key employees, loss of stakeholder reliability. 

There are new theories regarding assured of these newer models, like effective and project based structures, permit enlarged litheness to react to change. Though such theories are not for all time introduced consistently, and in exercise frequently initiate other issues that also shock upon amend supervision, such as capacity to share information and to run efficiently. These may also impact usefulness of declaration or worker commitment, which themselves have suggestion for change usefulness. 

Obstacles in the way of change such as resistance to modify can be defined as a person or collection attractive in acts to block or else interrupt an attempt to commence change. so we can say that resistance itself can take many altered forms from subtle damage of change initiatives or custody of in order to active resistance, it can strike.

There are two types of resistance in broad sense:

That the resistance on the content like introduction of a particular reward system or a specific change in IT.

That the resistance in the process of change such as there are executive jobs re structure without prior conference to the effected employees.

I am going to select Tesco supermarket as an organisation that has recently implemented a major change project as the Tesco the United Kingdom largest supermarket has opened the world’s largest and first Zero Carbon Supermarket, before I discuss upon Zero Carbon I would like to discuss Tesco as a supermarket.

Tesco is the world third largest and the United Kingdom first biggest supermarket having around 2420 stores and employees over the 327000. TESCO is not operating in the UK but also in Asia and Europe. Through its subsidiary, Tesco.com, it provides the services through online. The company’s largest and biggest market is UK as here they are operating under four banners such as Superstore, Extra, Express and Metro,

Recently the UK largest supermarket has opened the World’s first Zero Carbon supermarket that big step towards an organisational change. That the store has no net Carbon foot print and exports any further electricity generated back to national grid.

This store is located in Ramsey, Cambridgeshire this Zero Carbon superstore boasts, recycle, eco friendly features that are here under:

That the store has a combined power and heat plant that runs on bio fuels from renewable sources.

There is the timber derived from sustainable source rather that steel its main and chief features is to reduce the carbon footprint of construction.

when the daylight increases then interior lighting dims and that time skylight s allow daylight on the sales floor

The Led that is the UK’s first Led lit parking lot and on the gas stations.

That the rainwater collection facilities on the roof that gives water for use of the flush for the store toilets and the car wash.

Heating, refrigerant gases in the fridges, air condition systems and ventilation systems that have in effect no impact on the environment.

That the crossing signals and solar powered.

There is additional energy efficient equipment, such as low energy bakery ovens.

The superstore that has been operating in the Ramsey’s town, Cambridgeshire, framed of timber rather than steel. It uses day lights from the sky and there are sun pipes to reduce the need for artificial lighting. That the store has also characteristics of combined power and heat plant by the renewable bio fuels that can export surplus electricity back to the national grid. That all the refrigerators those are notorious for the balck spots for retailers that are trying to boost their green credentials. Now they have doors to save energy and HFC the harmful hydro fluorocarbon refrigerant gases previously been used.

The professional people have significant role in management and development and have vital role to play in the process of change management

Tesco’s HR Involvement in various aspects through CIPD Research

It is reported in the research that Human Resource’s participation in a variety of aspects of the change can create the dissimilarity between successful and less successful project

Their contribution at the initial stage of the project team.

They can instruct to the project leaders in skill available in the business, recognize any training requirements, skill gaps, new practices new posts etc.

They can balance out the short term and narrow goals with the broader strategic need.

They assess the impact of change in one or more than one area , site, department of their organisation.

With the stakeholders, used to negotiating and engaging, and also concerns to anticipate the problems of the stakeholder.

Always helping the people with the change, motivation, and performance management.

Always understand the appropriate medium of communication to assess the various groups.

Tesco Hr team to face change management challenges after Leahy retirement

The HR of Tesco’s team has to face the important change management challenges following CEO’s leaving, according to experts.

He has been the wheel of the UK’s largest market chain more than 13 years and was the organizer behind its rise to own a 30%of the UK market. He will retire in March 2011 at the age of 55 and be successful by present head of international operation. Philip Clark (Beth Holmes 09 June 2010)

Clark will carry his own product of leadership to the 500,000 staff international, with 250,000 in the UK across approximately 25000 stores.

Tesco, which made a pre-tax profit of 3.2bn pound in its last financial year.

There are various organisation theories and models which all supermarkets are using to make change, their development and performance like TESCO SUPEMERKET big achievement on the first Zero Carbon supermarket that is boasting these changes and it the big step in the organisational change by using these organisational theories such as:

The EFQM excellence model

EFQM model was initiated at the commencement of the 1992 as the structure for Measure Company for the European Quality Award. This for the all organisations that is regardless of sector, stricter or maturity, size and need to be successful to the establish an appropriate management frame work. Now it is the most broadly used organisational frame work not only in the Europe but also in UK, US, and rest of the countries and we may say like this that it is the foundation for the majority of regional and national Quality Award.

In the way to benchmark with other organisations inn change management.

It can also use for the self assessment as the Tesco market made a change in the organisation that totally separated from the other organisations.

There is complete guide for the areas for the improvement.

And the main the structure for the organisation’s management system as from there all changes starts

For the basis of an organisation’s common vocabulary and their way of thinking.

There some valuable aspects that can narrate from the above given model these aspects of the model are very important for not only Tesco super market change but also for any organisation change and performance.

Organisational Leadership

For any organisational change is depends upon their leadership because it’s the leader who expands and facilitates the attainment of the mission and vision. They increase the values of the organisation and it s required system for the sustainable achievement and realize these through their activities and behaviours. While the change is in progress they maintain a constancy of aim, such leaders are being able for the change direction of the organisation.



Strategy and polices

Outstanding organisations put into practice their task and idea by budding a stakeholder purposeful approach that takes explanation of the marketplace, division in which it operates. Strategy, Policies, aims and processes are developed and deployed to convey organisation polices.




Brilliant organisations administer, expand, free the full possible of their people at an person, team-based and organisational level. They support justice and sameness and engage and sanction their persons. They heed for, commune, recompense and discriminate, in a method that motivates employees and construct promise to by earnings of their skills and information for the advantage of the organisation.



Resources And Partnership among the Oraginsation or people

Superb organisations graph to manage exterior partnership, suppliers and domestic possessions in order to hold up strategy and scheme and the useful operation of process. Through development and though managing partnerships and property, they balance the current and prospect needs of the government, the district, and the surroundings.


Execelent Process

Admirable organisations plan, run and get better process in instruct to completely suit, and produce rising worth for, consumers and other stakeholders.


 Results from the customers

Outstanding organisations carefully calculate and attain exceptional grades with respect to their consumers.


Results from the people

Exceptional organisations carefully determine and get wonderful results with admiration to their people.



Result from the society

Admirable organisations methodically calculate and attain exceptional result with high opinion to society.


Performance result

Brilliant organisations methodically determine and attain exceptional results with esteem to the key factor of their plan and policy.

Choices for Change

The Change Kaleidoscope

Design Choices

After the significant contextual characteristics are recognized, the design choices have to be set for the change process. Many alternatives are strong-minded by the contextual quality.

1.Change path

2.Change start point

3.Change style

4.Change target

5.Change roles



To identify change choice open to leaders.

To identify a range of tools and models that add further

Clarity or perspective to the options that faces leaders when planning implementation of their proposed changed.

Five Design Choices: Contextual features of the change situation should be considered before a change approach is selected.

Change Path: This is driven by the extent of change and the speed of the change that need to be undertaken for the required change outcome to be delivered. the change path option seems to be between Revolutionary or Evolutionary. Leader may have little choice but to enforce may have little choice but to enforce change from the top using whatever tools, incentives are available:

The need is pressing and there is no alternative.

The cultural web

Cultural web elements

The Cultural Web recognize six joined basics which help to build up what Johnson and Scholes recognize the ‘paradigm’ the representation or mould of the job environment. You can start to see the advanced representation of your culture that running and that is not functioning, what needs to be changed.

Stories: – The earliest times actions and people discussed about inside and external the company. By choosing what and who the business chooses to commemorate says a great arrangement about what it principles and perceives as vast performance. 

Rituals and Routines: – Day today performance and activities of people that signal satisfactory actions. This verifies what is going to happen in given conditions, and what is appreciated by management. 

Symbols: – The company logos, how plush the offices are and the dress codes.

Organizational Structure: – This contains both the organisation structure described by the organization chart, and the unwritten lines of authority and power that specify whose assistance are most valued. 

Control Systems: – The traditions that the business is controlled. These consist of economic systems, quality systems and rewards.

Power Structures: – The people who are holding the real power in the business. This may engage some key senior executives, a whole group of senior managers, or even a section. The main thing is that these people have the most amount of power on decisions, operations, and planned direction.

Every business has selected a dissimilar way of achieving competitive advantage in a packed marketplace.

 Michael Porter, 1985 in his book Competitive Advantage, Creating and Sustaining Superior Performance. Says the generic strategies “Cost Leadership” (no frills), “Differentiation” and “Focus” (present a particular service in a niche marketplace). He then subdivided the ‘Focus’ strategy into two parts: “Cost Focus” and “Differentiation Focus”. 

The Cost Leadership Strategy,

Porter’s generic strategies are paths of acquisition competitive advantage, in other language, creating the “edge” that gets you the trade and takes it left from your challengers. There are two main paths of attain this within a Cost Leadership strategy:

Rising profits by dropping costs though charging industry-average prices.

Growing market share during charging lower prices, at the same time as still making a logical profit on each business because you have decrease costs.

For that reason need to be sure that you can attain and uphold the number one place before selecting the Cost Leadership path. Businesses that are victorious in attaining Cost Leadership typically have,

Entry to the capital essential to spend in technology that will bring costs down.

Well-organized logistics.

A small cost base (labour, materials, and facilities) and a way of sustainably reducing costs under those of other competitive businesses.

The Differentiation Strategy,

This involves making your goods or services diverse from and better-looking those of your challengers. How you going to do this is depends on the nature of your business and of the goods and services themselves, but will characteristically involve durability, features, support, functionality and also image of the brand that your customers worth.

To make a achievement of a Differentiation scheme organizations need,

High-quality investigates expansion and novelty.

The capacity to supply goods or services.

Successful trades and promotion therefore the market get to know the advantages obtainable by the differentiated contributions.

Big businesses follow a differentiation strategy require continuing with their new product development processes. Or else they risk assault on several fronts by contestant follow ‘Focus Differentiation’ strategies in diverse market sections.

The Focus Strategy,

Businesses that use ‘Focus strategies’ focus on exacting niche marketplaces and by consideration of dynamics of that marketplace and the exclusive needs of buyers within it, expand uniquely reduced value or well-specified goods for the marketplace. Since they treat their buyers in their market exclusively well, they tend to put up tough brand loyalty among their buyers. This creates their exacting market section less attractive to challengers.

The porter’s five forces model

Porter’s five forces analysis suppose that there are five significant forces that decide the power of competition in a business condition. These are,

Supplier Bargaining Power: – This force you measure how simple it is for providers to raise up prices. This is handling by the amount of providers of each key input the individuality of their product/service, their power and control above you, the fee of switching from one to a new product and so on. The supplier selections you have and the extra you need provider’s help, the more authoritative your suppliers are.

There are lot of suggestions for Tesco. Than smaller supermarkets Tesco has an advantage like they can dictate the amount the Tesco pay for their suppliers. If that provider did not support for that price they will be left much smaller markets for their goods.

1. Buyer’s Bargaining Power: – In this force ask from you how simple it is for purchasers to run prices down. Once more, this is carrying by the amount of buyers, the significance of each person to your business, the charge to them of switching from one product and service to another and so on. If you handle with few authoritative purchasers, then they are frequently able to say terms to you.

As an example If Tesco’s beans price is high customers will switched to Sainsbury or Asda

Competitive Rivalry: – The importance here is the amount and ability of your challengers. If you comprise with many challengers, and they propose evenly good-looking products and services, then you’ll mainly like to have little authority in the circumstances, because providers and purchasers will go somewhere else if they do not get a high-quality contract from you. Another thing is if anyone can’t do what you do, then you can frequently have marvellous power.

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Threat of Substitution: – This happens due to the facility of your buyers to find a dissimilar way of undertaking what you do – as an example if you deliver a unique software product that computerize an essential procedure persons may replacement by doing the procedure by hand or by outsourcing it. If replacement product is easy and substitution is feasible then these weaken your power.

Threat of New Entry: – Here it says authority is also affected by the capability of people to come in your marketplace. If it charge little in time or money to come in to your market and struggle successfully, if there are few financial systems of scale in marketplace, or if you have tiny security for your main technologies, then new challengers can speedily come in to your market and reduce the power of your position. If you have tough and strong barriers to entry then you can protect a favourable location and take reasonable benefit of it.

Other supermarkets give good challenge to Tesco plc. Tesco plc might have area the market place for some assured products; the new superstores will not be capable to find low-priced, dependable suppliers. Also Tesco has the benefit of economies of scale. The sum it pays to provider’s per-item is a bunch less than the small shop. 


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