Tesco Change Management

Executive Summary

Tesco is reported as one of the top leading retail stores in UK with its business operations spread internationally across the borders. It has remained competitive and profitable since the very beginning of its business due to its effective change management policies through responding to the external factors in an effective manner. Due to globalization and increased number of warehouses operating overseas it have become very important for Tesco to respond to the external environmental changes in a timely manner and adhere to the laws and regulations of the country in which it is operating in addition to the local laws. With passing time retail industry has become very competitive and complicated which calls for effective change management strategy in the organization by keeping an eye on the adverse external factors and creating an environment and culture of continuous change and improvement in the organization. The report aims to analyze and study the external factors affecting the change management process at Tesco. It will also cover the advantage and disadvantages of change management in detail by driving important conclusions as to how manager can lead and drive the change process successfully in their organizations through implementing cultural changes and increasing acceptance level and reducing resistance.

Change Management at Tesco

Introduction

Tesco was established in the year 1924 and founded by Jack Cohen. He started off with a profit of 1UKP and total sales of 4 UKP. It was on the third number in world ranking of grocery retail business in terms of its sized while it business operations were spread in more than 14 different geographical locations. It first retail shop with name Tesco was opened in London while it was listed for the first time in London Stock Exchange in the year 1974. The main purpose of Tesco was to give value for price to the customers in order to retain and gain customer loyalty through building life long relationship with them. this marketing strategy of value creation was the main reason behind its success and profitability due to which it became among the leading retail stores in UK. It currently not only deals in foot items but also provide non foot items as an important part of their product category. Every organization in order to remain competitive in the 21st century must adapt to the changes and external factors affecting their business which is very important for maintaining competitive advantage and that is exactly what Tesco's management does (UK Essays).

These changes, which encompass any planned or unplanned response to internal and external forces, can be broad or narrow in scope. However, the process of implementing change can prove challenging; it has been estimated that one in three change initiatives in the retail industry fail to achieve all objectives of the change program.One of the reasons change programs fail is resistance on the part of organizational stakeholders, such as employees, customers, or important alumni or donors. As long as 500 years ago, philosopher Machiavelli stated, “There is nothing so despised as change” (Wilkin, ...