Change Management, its Factors and Effects, in Tesco PLC

Change Management, its Factors and Effects, in Tesco PLCTESCO started its business and opened its first shop in the category 1919 by Mr Jack Cohen. He sold surplus groceries from a st any in the East End of London. The brand TESCO came after 5 courses in the year 1924 when he bought a shipment of tea from a Mr. T. E Stockwell and initial letters of the name were combined to name TESCO and in the year 1929 retentiveness was opened in Burnt Oak, North London by Mr. Cohen. In 1930 Mr. Cohen built a headquaters and w behouse in north London and in 1932 privatization was d bingle and Tesco became underc all over ltd company and the company was listed in the stock market in the year 1974.In the year 1950 need of expansion was enquireed and as a result rime of stores were bought by retailer. (70 Williams stores and 200 Harrow stores, followed by 97 Charles Philips stores) and finally in the year 1968 the first superstore was opened in west Sussex. moving further Tesco diversify and j umped to petrol retailing sector in 1974.to over earn the rivals Tesco adopt the c argonn in the strategy and launched the club card in 1995 following which in 1996 Tesco announced 24 hours facility to its customers. Retailer launched tesco.com in 2000 to expand further with which it included various products like electronics, clothes and entered in broadband market etc .as a major announcement Tesco plans to open a stores in USA under the name Fresh and Easy.Need for a transport at TescoTesco has adopted many alterations in its business since the time it has started.tesco has been changing its strategies as and when time passes for the following reasons.(I)To win competitive advantageTesco endlessly wanted to create more nourish from resourcefulnesss over early(a) companies like Sainsbury which led tesco to come up with new stores in variant places.(ii)Core competencesCore competences ar means the businesses must acquire something that customers uniquely value if compan ies wants to earn healthy profits. For instance tesco provides club card facility to its customer to retain the customers.(iii)Need for capturing MarketTesco wanted to capture the whole retail market which back up the company to come up with aggressive strategies and occupy the number of places of UK markets.(iv)To create efficiency, swiftness, and innovationFor creating efficiency tesco provides a online shopping facility along with that it has made all the stores 24 hours avail fitting.Facrors Driving limiting in the TescoT here argon two types of factors which force any organization to adopt the alter for the betterment of the organization. External factors and midland factors.External Factors conservative spends,Following ar the external factors using PESTEL analysisPolitical FactorsTescos performance is rattling much controlled by political situations of the countries .traditional stores argon constrained to cut the cost where as big stores often provides job opportunitie s and government encourages retailers to create job opportunities hence opening new stores is because of the political impact also. sparing FactorsEconomic factors vex direct relation with profits which is one of the virtually important factor leading changes in an plaque.the blue rate of unemployment increases chances of reduced demand for goods so tesco is creating employment with the help new stores.Social Factors removeCustomers demands towards mass shopping have led tesco to provide non pabulum items also like clothes, elctronics,mobiles etc providing customers the at ease shopping.Technological FactorsTechnology is a biggest factor driving all the companies to adopt the change because of new inventions of it.customer base entrust increase if they are satisfied and they pay off attracted. To do the same tesco has adopted self check out system, electronic shelf labelling etc.Environmental FactorsLess consumption of resources, less wa deliver of production and least envir onmental damage are the anaesthetizes leading tesco to change accordingly.Legal factorsGovernment policies affect the Tesco organisation for instance licensing, monopoly policy, pricing policy.Internal Factors refinement of the businessExpansion of the business brings the opportunities for the product development and companies growth.Earning ProfitsThe major motive for any organisation is to make profit which leads tesco also for the expansion and diversification of the business.Cut throat CompetitionTesco has many Competitors like ASDA and Sainsbury. To survive in this cut throat competition is very necessary to come up with new ideas and technology.Resource conditional relation of the organisation not responding to changeThere are various resources which so-and-so be resistant against the change and cause the failure to the change project. Following are the resourcesPeopleThe main part of the change is people who are going to execute the change and they can not change overnight . people who are soaked and resistant towards the change .if they dont respond and not agreed to shoot the change change procedure impart lead to failure.Money one of the different most important resources is Money which has a baron to make the change successful by providing all other resources available.for instance with the help of existing money resource tesco is going to open new Fresh and Easy stores in usa without which it was not possible.Material proper material like all the previous details, take stock report, company data and market requirments are very important absence of the same brings the failure of the change for instance in the case of tesco absence of the congruous market analysis would have not brought tesco to capure the UK market.StakeholdersStakeholders are the very important parts of the change.suppliers are the internal stakeholders. The demand of the suppliers for cutting down in prices of food in tesco are major concern for adopting new changes.Clima te (season)Climate is a resource which is unexpected which sometimes causes a failure to change adopted by an organisation.Q D) Models of changeADKAR Individual put down of changeIn an organisation whenever any change takes place it is not organisation which changes but the individuals of the organisation.ADKAR model helps private instructor to find out the behaviour of the individual and find outPeople resistance to change,Help employess to move ahead with the change processTo provide a plan for a personal and professional draw near for individuals.To study the ADKAR model we will visit at the diagram below which says whenver in an organisation change takes place that is two ways one is from the business aspect and from the people side. Change takes place only when both the side change is applied successfully. work changeBusiness change needs knowing the opportunitiesScope and objectives of the business and projectKnowledge of complete business processProper change slayingPeo ple/Employee changeFor the successful change manager should follow 5 key objectives based on ADKAR model.Awareness of the need to changeDesire to recruit and support thechangeKnowledge of how to change (and what the change looks like)Ability to apply the changeReinforcement to retain the change for the time periodLewins 3 stage Organisational Model of changehttp//www.lmcuk.com/management-tool/lewins-3-stage-modelThe model speaks about the one organisational change. it says that organisation travel from one stagnant change to another. It has three steps for an organisation to come crossways (i) Unfreeze (ii) Change and (iii) Refreeze, as mentioned in above picture.(i)UnfreezeIn this state an organisation has to make employees believe that change is going to be for the betterment. on that point are people who doesnt want to come out of their comfort zone and advantageously accept the change hence unfreeze is a stage where managers will have to create motivation to the employees to come out of the stagnant phase and unfreeze them to move towards the new change.(ii) ChangeIt is a stage which creates many doubts for the organisation. Employees have knowledge of old system and adopting a new a new change will take some time to increase their efficiency. At this stage it is very important for the managers to provide motivation to its employees at the same time leave behind proper training and moral support to build a confidence to accept the change.RefreezeThe motive of this stage is to let people get comfortable to their working environment again to increase efficiency.Bruce Tuckmans model of Team changeMr Bruce Tuckman came up with this model in the year 1965 with 4 stages and last 5th stage Adjourning was added by him later in the year 1970s. According to him as the group builds maturity and ability, the hold fast of the team takes place.in this stage a leader directs, guide, participates and deligates finally.at this time team will produce a next capable leader. in this leader gives situation to the team and reduces the control.the main aim is to action the lofty performance by changing leadership styles.Following are the 4 stages and activities of the leaderStagesActivitiesFormingDirect team and set goals clearly. Discussing goals with team will be the helpful.StormingEstablishment of structure, building good relationship in team, Giving moral support, being firm and positive. make people understand why conflicts happens by assertiveness.NormingTaking responsibility towards objectives, building scenting of togetherness in team.PerformingDividing/delegating the task so that can concentrate on other priorities.AdjournigIf the team come to an end working together celebrating the success.Relevance of the models in the rate of flow economic climateCurrently looking at the UK economy-2010 the major issue faced by the country is Recession and Unemployment which goes hand in hand. boldnessing at these issues lets see the relevance of the following models with these two factors.Models of changeRelevance with current economic climateADKAR Model of individual changeAwareness government should know the factors driving inlet and unemployment.Desire desire to come over.Knowledge Proper knowledge how to overcome the recession.AbilityAbility to apply solutions/change to remove the recession.Reinforcement to retain the change or solutions interpreted to get rid of recession and unemployment.Lewins 3 stage Organisational Model of changeIn the 2nd step of the model we can find the relevance to current situation.Change adopting a change for example government has announced cut backs because of which people that were enjoying the benefits are also now searching for job which is increasing the rate of employment.Bruce Tuckmans model of Team changeIn this we can find a relevance with the stage storming which talks about the activities like establishing structure which means government should set such a rule to avoid recessio n and unemployment like the economy of the some of the European countries (like irland and Romania) are not much developed and people of those economy are migrating here because of which unemployment rate increases. survey of STRATEGIC INTERVENTIONS techniques in the change processWhat is strategic intervention?Whenever there is change taking plan in an organisation there are resistant towards it. Strategic intervention techniques are made to solve the caper occurring during the change process.Following are the intervention techniques and their valueRole performingRole playing is a type of training which guides practical situation. it is method to prepare a team to perform on their own without the help of the their employers.Value this technique is valuable because if the proper training is given and employees are able to work on their own so they will face less problem while adopting a change.Team BuildingIt is technique developing a maturity to work as a group and efficiency. T he main reasons for this technique are to set objectives, to check how the work is performed in a group and to see the bonding between team members.Value in the change process the one of the important things is team bonding as whenever change takes place in an organisation team has to perform together for the success.Survey FeedbackProper feedback and survey reports are to be given to the employees regarding the change to let them involve in the change processValue by getting the feedback organisation can know what employees feel about the change and what difficulties they face to help them which help the change process to success.Inter-Group Problem-SolvingWhenever there are conflicts in two different groups, for the settlement joint meetings are held in which members are allowed to present their views and the outcome of the meeting should be the result that holds them together.Value all the teams work towards the one goal i.e. change process, if they are having the differences the n the goals batch will be blurred. So this technique helps to improve the bonding which will improve the work efficiency.Management By Objective ApproachIt encourages employees to involve in decision making process to make sure the system works smoothly.Value technique to involve employees will earn the interest of them and will lead to successful change.Qg) development of Change management strategy with stakeholders for tescoStakeholders are the group of people who have interest in company business. There are many types of stakeholders like government, employees, customers, suppliers, board memebres, funders, which are part of internal and external stakeholders. According to tesco understanding the needs and demands of the stakeholders is very important. there are various strategies to let stakeholders involve in the change process.i)Having beneficial discussion with shareholders to make sure that tesco looks after and understands the load towards stakeholders.ii)The preparation of investor relation report both year by the board members is a part of their strategy stating the feedback of the stakeholders ,which involves them to towards the change.iii)They make sure that each(prenominal) and every stakeholder should get the full annual report at the end of the year apart from publishing in news papers.Systems to Involve stakeholdersThere are many systems available to involve potential stakeholders in the planning of the change.Stakeholders mappingStakeholders matrixStakeholders engagementStakeholders identificationStakeholders mappingStakeholders mapping is one the systems to involve stakeholders in the business .in stakeholders mapping has two axis. One speaks about the interest of the each stakeholder and other speaks about the power on stakeholders.ththe thStakeholder Mapping and CommunicationThere are essentially 4 categories in based on their power and interest,low interest/low powerhigh interest/low powerlow interest/high powerhigh interest/high po werThe company needs very less attention on this group. The stakeholders create no danger because of any interest and power.This group has a high interest but very less power and they are maintained by keeping them informed about company information.This group has high power because of which they must be taken care off and kept satisfied because their low interest can cause a trouble.They must be always satisfied because they have high power and high interest as well.Stakeholders matrixThis is one the common methods use to know about the stakeholder analysis. The object is to give clear understanding of the stakeholder and let the company know what the best way to involve them is. This system is used at early stage to develop the stakeholder plan.this sytem is used for developing a action plan.Stakeholder identificationIn this company needs to find out its potential stakeholders company needs to do all the backing regarding their interest, involvement, their power, and strategies t aken by the company.There are three steps smell i) identify the potential customer and related date to themStep ii) identify the each stakeholders power and interestStep iii) assess the stakeholders response.Stakeholder engagement (On TESCO)Stakeholders are the people who have direct relation with our business and can affected easily, but at the same time they have impact on business as well. This is a reason why organisation needs to involve stakeholders and know their views. basically it is all about maintaining relationship with the help of regular communication from both the sides.Stakeholders engagement system has become a commonly used practice in business.According to tesco stakeholder engegement helps them to know the risk and opportunities.Following are the methods of doing the sameMeetings/Discussing issuesWebsitesQuestionnairesEventsBeing strategic about stakeholder engagementTesco believes in solving issues by discussing it with stakeholders.for instance for year 2009-20 10 meeting was held in the month of February to discuss the issues concerning about the board plans, control and business development by the chairman.Websites are made to keep in tactual sensation with stakeholders and engage them and to keep them aware of new updates abot the company along with the annual reports. tesco has it site in which they have all the details for stakeholders(www.tescoplc.com) .Investor relaton teams are hired to take care of stakeholders in tesco to be in touch with them on regular basis.because details on websites are limited and shareholders can ask any questions via emails.For stakholders tesco keeps events for them to be interactive and to engage them.Stakeholders engagement is not process to be built in weeks. Company need to do it right from beginning and thats what tesco has been doing right from beginning.Q I) increment and implementation of model of change on tescoWhenever company need to progress can adopt a change whether small or big .in organ isation usually they know about the change but dont know how to actually apply it. For which there are many models stating how to apply change. Following are the models which tesco can apply to build a self check out machines.Kotters 8-Step Change ModelFollowing are the 8 steps to lead towards the changeStep i) create urgencyTalking about urgency of adopting a change will help organisation to move further towards change. Because only showing proportionality sheet company can not convince others to adopt the change.How to do?a)Tesco will have to analyse its potential risksand will have to prove the senario that in absence of self check machines can cause lot of queue in the shop and will cause delay in time.b)Tesco will have to show the benefits that customer can take from self check out machines.Step ii) Form a Powerful associationWhenever company needs to go through a change it has to supporters for the change having leaderships qualities to convince that change is for good.What i s to be done?Tesco should identify true leaders in an organisationMake commitmentWork on team buildingTesco will have to make sure that it has good mixture of people that will help at different levels.Step iii) Create a Vision for ChangeTesco should have a clear vision about the change and should be able to show others that visionWhat to doTesco will have to set the important value change.Make a short one or two sentence vision record like tesco has a vision direction that is every little helpsMake a plan to implement that vision.Step iv) Communicate the VisionThe vision statement is what you do and you have strong competition in the market.so tesco will have to make sure that it communicate in such a manner that will be able survive in that competition.What to doTesco should keep talking about its vision.Tesco should clearly deal with peoples apprehension and worry.Tesco should Appl all its vision to all aspects of operations from training to performance reviews.Step v) Remove O bstaclesAfter following the above steps and if change process had taken place then tesco needs to look at the resistant of the change if yes then tesco will have to remove it by doing so change process will move further.What to doTesco should hire, change leaders to deliver the change.By looking at the structure of the organisation tesco will have to decide uponTesco should encourage people by giving reenforce to people for supporting change.At the same time tesco should know people who are resisting the change, and try to convert them into supporters.Tesco should act quickly against obstacles.Step vi) Create short-term WinsTo encourage change tesco should create small competition to motivate employees towards adopting the change. By creating short term goals tesco can earn more supporters for the new change.What to doTesco should Look for sure-change that can be implemented without help from any strong critics of the change.Tesco should not expensive targets.Tesco needs to see pro perly the potential pros and cons of its achievements.Give deserving awards to those who achieve targets.Step vii) Build on the ChangeTesco should not declare the change too early.rea l change goes in deep.What to doTesco should analyse after every win, that what went right and what needs improving.Tesco should learn to the idea of continuous development.Tesco need to keep changing the the change agents timely to change associationStep viii) Anchor the Changes in Corporate CultureTesco needs to make sure that change should be visible in each and every aspect which will help the change to occupy a strong place in an organisation.What to doTesco need to talk about the success stories as and when get the chance.Tesco should embrace the change principles and morality when hiring and training new staff.Measures to monitor progress of the change processThere are various ways adopted by the companies to measure the performance and the progress of the change adopted.there is many tools lik e performance forefinger, feedback control system, marketing mix etc to know about the peformance of the company.tesco has not adopted particular method to measure the progress.following are the ways tesco should adoptedFeedbackTesco should take timely and duely feedback by the customers who are using self check out machine.feedback form should clearly be able to check the questions about the weakness and usefulness of the self check out machine. Feedback form should be easy to understand and must be written in easily understandable language by the customers.the most important point is feedback form should be able to answer the % of customer satisfaction.SurveysTesco should conduct surveys regarding by the general customary asking what do think about self check machine. For people with a proper communication must be hired to be able to ask questions from public.Website Tesco should operate one website having online feedback asking close ended question regarding the perfomance of the machine and improvements to be made.Performance indicator toolTesco should use the performance indicator tool for the measurment of progress.it will tell the tesco about the improvements made and what are the results of the same.performance indicator cover cover the following other indicators Quantitative indicators based on song achieved.Practical indicators based on current companys process.Directional indicators based on data specifying the companys performance whether getting better or not.Actionable indicators are taken to control which will affect the change.Financial indicators used in perfomance measurment.