TESCO Change Management Case Study 

Change is the key element for the growth and success of businesses and organizations, but it is challenging to successfully implement the changes. UK’s retail brand Tesco faced various issues and challenges while implementing and executing changes. Today, we’ll discuss the TESCO change management case study.

Some of the key brands of TESCO are as follows;

  • Premier
  • Makro
  • Booker
  • F&F
  • One Shop

Tesco’s main business products and services are as follows;

  • Convenience Shop
  • Superstore
  • Hypermarket
  • Supermarkets

Some of the key Business Divisions of Tesco are as follows;

  • Booker Group
  • Spenhill
  • Dunnhumby
  • Tesco Family Dining
  • Ireland Tesco
  • Mobile Tesco
  • Bank Tesco
  • Tesco Stores Ltd

Historical Background of TESCO

  • 1919 – Jack Cohen laid the foundation of Tesco in Hackney, London, England, UK
  • 1924 – The Retail Company first gained exposure and its initial name was TES (Thomas Edward Stockwell); CO is from his family name Cohen
  • 1931 – Tesco launched its first shop in Watling Street, Edgware, and Middlesex
  • 1947 – Retail brand floated its business on the stock exchange and became the public company
  • 1960s – Tesco diversified its business into various categories like Telecom, Financial Services, Software, Petrol, Toys, Furniture, Electronics, Clothing, and Books
  • 1970s – Tesco achieved the status of becoming the largest retail chain supermarket in the UK
  • 1980s – Retail Company expanded its product portfolio in order to amplify its sales and customer loyalty
  • 1990s – The retail brand went global and expanded its operations in 11 other countries across the world; Tesco changed its position and became the low-cost retailer  
  • 2000s – Tesco faced some challenges like the uncertain economy, consumer preferences, and high competition; it badly impacted the company’s sales and growth rate
  • 2022 – The company has a network of 4573 stores in various countries across the world; approximately 354,744 employees are working for the company to manage its operations

Factors Compelled TESCO to Change – Top Reasons 

Some of the top reasons and factors that compelled the retail chain brand in the TESCO change management case study are as follows;

Internal Conflicts

The global expansion of Tesco was a great move strategically. But it slowed down the company’s decision-making process and complicated the organizational structure and hierarchy. Employee engagement and employee morale were some of the internal conflicts, and they badly influenced the company’s capability to offer quality services to its customers.

Unstable Economy

In the early and late 2000s, the worldwide economic recession greatly reduced the financial growth and progress of the company to a great extent. Uncertain economic conditions like high inflation rates and low buying power made the customer market highly price cautious; it imposed significant pressure on the retailers to cut down their prices.

Shifting Customer Trends

The customer market trends were transforming from fast-food to healthy and organic food. The shifting customer trends and the company’s limited response to the changes resulted in the form of decreasing customer loyalty and the company’s sales.

Highly Competitive

The growth of retail brands like Lidl and Aldi made the retail market highly competitive, and it dropped Tesco’s sales and profitability to a great extent. Customers’ attention to Tesco’s stores has declined to a great extent in the presence of other competitive discount stores.

TESCO Implementation of Change Management 

The leadership of TESCO was aware of the significance of the change management that would help the retail chain company to maintain its market leadership position. Some of the key changes Tesco implemented in the TESCO change management case study are as follows;

Customer Focused

While implementing the change management program, Tesco shifted its focus on customers by taking the following steps;

  • Personalized marketing
  • High customer engagement
  • Introducing loyalty programs
  • Better in-store experience
  • Offering High-quality products

Low Cost

In order to amplify Tesco’s profitability and efficiency, the company needed to decrease the cost to amplify by achieving operational efficiency. Some of the cost reduction steps the retail brand took are as follows;

  • Streamlining various supply chain processes
  • Renegotiating the deals with suppliers and vendors
  • Decreasing product lines

Open Communication

Tesco launched a well-detailed communication strategy to make sure employees, team members, and stakeholders comprehend the change program. For the purpose of open communication, the company offers them regular updates by conducting the following;

  • Training session
  • Town hall meetings

Committed Leadership

Senior leadership and executives of Tesco showed and proved a strong commitment to the change management project by offering the following;

  • Support and guidelines throughout the process
  • Clear vision and direction

Feedback & Measurement

In order to measure the growth and success rate of Tesco’s change management program, the company has developed standards and a set of criteria for employees. It helps the company in the following ways;

  • Recognizing the key areas for improvement
  • Collecting feedback from employees

Adapting Technology

In order to amplify customer experience and improve the efficiency of its processes, Tesco invested a significant amount of resources in its development. The investment in technology comprises various areas;

  • Online shopping platforms
  • Mobile payment system
  • Self-checkout machines
  • Self-serving mechanism

Employee Engagement

Tesco was familiar with the significance of providing high-quality service to customers and employee engagement. In order to boost the morale and confidence level of employees, the company took the following steps;

  • Better working conditions
  • Identifying opportunities and strategies
  • Conducting training programs

Results of TESCO Change Management Plan 

Some of the key results TESCO achieved from the implementation of the change management are as follows;

High Financial Growth

The change management initiative and its successful implementation allowed Tesco to achieve financial performance in terms of high market share and sales. Resultantly, the retail brand recovered from the declining phase of the economic recession and limited growth and sales.

Efficient Operations

The focus of Tesco is decreasing complications, improving efficiency, and making things simpler and easier. Resultantly, the decision-making process of the company speed up and its product lines increased.

Employee Engagement

The change program of Tesco has amplified the employee motivation level, and it boosts their morale and confidence level. That’s why the retail chain brand has achieved the status of becoming the UK’s top employer of 2019.

Better Customer Experience

Tesco has taken various steps like high-quality products and better in-store layout, and it improved the customer satisfaction level.

Revenue Increment

The revenue and profitability of Tesco have increased significantly, and it helped the company to take on new projects and expand its business operations.

Conclusion: TESCO Change Management Case Study 

After an in-depth study of the TESCO change management case study; we have realized that Tesco has successfully implemented the changes. If you are learning how Tesco has launched the change program, then you should keep in mind the abovementioned tips and guidelines.

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