Tesco Change Management

Table of contents

1. Executive summary................................................... 2

2. Company overview..................................................... 2

3. Need for change ....................................................... 3

4. Resources implication not responding to change.................3

5. Individual change model....................................................4

6. Team change model...................................................5

7. Organisation change model..........................................6

8. Evaluation of the model in current economic climate...........6

9. Strategic interventional techniques.................................7

10. Develop system to involve shareholders in change...............8

11. Evaluate the model....................................................10

12. Monitor the model of change.......................................12

13. Conclusion..............................................................13

Executive summary: - This report is about strategic change management. This report describes the change in strategy in Tesco, models of change, implementation of models and monitoring the change. The change is constant so this report covers the all aspects of strategy change at Tesco.

Company Overview:-Tesco is UK based company. Tesco is the largest retailer in the UK.

What does company do:-

 Tesco firmly focused on both grocery and non grocery items.

 Tesco deals in service sector including insurance, finance, and telecommunication and computer software.

 Tesco is entering in estate business as well; Tesco operates a website on which people can sell their homes privately and cut the estate agents out of equation.

 Tesco has set up a Twitter social networking group called fresh and easy in 2009.which helps to keep the customers up to date.

 Tesco's retailing brands are Tesco extra, Tesco supermarket, Tesco metro, Tesco one stop, Tesco home plus, Tesco.com

Competitive position in 2009

channel Value share Rank

Hypermarket 32.2% 2

supermarket 39.5% 1

Convinces stores 17.6% 2

Forecourt retailer 18.1% 1

Mixed Retailer 1.8% 12

Home and garden retailer 0.4% 15

Internet retailing 11.8% 1

Source:-euro monitor international from trade press, company report, trade interviews.

What is strategic change and what strategic has been changed in Tesco:-

Strategic helps to explain the activities that an organisation do. These activities are designed in order to fulfil certain purpose. They are created and changed in a variety of way. They all have life cycle and need to change.

Tesco as discussed earlier is well known retailer in UK. Some changes in their strategies can be seen time to time, and Hindustan service centre in Bangalore and outsourcing to India can be considered as positive change in strategiy in Tesco.

Need for strategic change in Tesco, why Tesco do outsource

Cost reduction is the major reason for what Tesco do outsource. Every business is run for profit, and profit can be high if company is able to reduce its cost. Tesco did the same. According to an article in Hindu Business line Tesco saves 30% by outsourcing to Indian arm, according to the article Tesco gets 30-40 percent cost reduction in the technology and business service by outsourcing from its Indian service global arm, Secondly now Tesco has diversified their business a lot, So outsourcing can remove a lot of headaches like logistic, training people, particularly from different cultures, so again it helps to reduce the cost in technology, training and logistic. Thirdly Tesco is growing and has grown enough. Tesco is expanding now. Tesco has to meet the new demands and requirements of new and existing customers while continuing current growth and it can be done by outsourcing as it allows Tesco to delegate on noncore activities and focus on core competencies. So we can say that outsourcing is a big and positive change in the strategy of Tesco.

Factors that drive the need for the change in Tesco, Why Tesco outsources to India.

There are several reasons for that why Tesco outsource to India or we can say that drivers which drive the needs to set up a service centre in Bangalore by the name of Hindustan Service centre. So we can say that there are main two drivers which drive Tesco's need to reduce the cost and outsource to India.

The two drivers are opportunities and resources.

Opportunities are called pull factors as they pull or attract any company to do the business and resources are called push factors. India is full of opportunities and resources which drive Tesco needs to change. The opportunities and resources are:-

 Competitive and talented workforce: - India's draw is its talented technical and moderate workforce.

 Ecosystem: - For many companies and Tesco Bangalore (India) is a safe because of its proven reputation says sandeep Dhār CEO of Tesco Hindustan.

 New development: - A lot of projects are underway for new developments in India.

 Diversity: - India has matured as an outsourcing hotspot. It offers talent, partnership opportunities, network of consultants and vendors.

Resources implication