Leadership and change Management

1)   Read the following case study and questions.
2)   You will need to provide evidence of your research to support your arguments, (you should avoid using mainly internet sites such as mindtools.com and businessballs.com)
3)   It will not be sufficient to just write a descriptive report, no matter how good an account you provide. It is important, therefore, that you draw on and refer to appropriate theory for your critique.
4)   Please ensure that you use feedback from your formative assessments as this will aid you in the completion of this assessment.
2.a.   Questions
PART A: Written assignment submission (Total marks = 100; Weightage = 100%)

1. What are the current challenges facing Tesco? You will need to analyse the internal and external forces for change, this may include economic conditions, competitors etc.

3. Critically discuss the most appropriate leadership style for Dave Lewis to adopt in this time of change. Justify your answers with evidence from the literature.

2.b. Case Study – Tesco – New Leadership, Can the Soap Man Save Tesco? – Jim Riley, October 2014.
This will be a dynamic business story that will be essential for business students to follow closely over the coming months. Tesco has announced the appointment of Dave Lewis to replace Philip Clarke as CEO with effect from 1 October 2014.
This decision is significant for many reasons, not the least that Dave Lewis has never been a retailer, nor has he ever been a CEO. Nevertheless, Lewis was the man that Tesco wanted (he was headhunted) and he has a superb track record at Unilever, one of the world’s leading multinationals in the FMCG sector (“fast-moving consumer goods”).
Lewis will start work at the beginning of October 2014 and his first task will be to undertake a thorough strategic review for Tesco. He replaces Philip Clarke who has struggled throughout his three year tenure as CEO following the retirement of Sir Terry Leahy. The Chairman of Tesco has asked Lewis to think “laterally and broadly” in identifying the new strategic direction for Tesco. Lewis’s background as a strong marketer at Unilever (with superb international experience too) suggests that Tesco shareholders and stakeholders might be in for an interesting future!
In addition to his impeccable track record at Unilever (he was considered a likely successor to CEO Paul Polman), Lewis has two other key background strengths: he is a Yorkshire man, and he studied Business Studies at university!
Lewis is Tesco’s first external appointment as CEO. All the previous CEO’s had worked their way through the Tesco management structure – they were Tesco born and bred! Lewis has only worked for Unilever, although as a major supplier to Tesco, he is well known to the business.
Where does Lewis start with Tesco’s strategy?
There has been plenty of media commentary on the strategic challenges facing Tesco. Some point to the rapid growth of the German discount retail chains Aldi and Lidl which continue to take market share from Tesco. Others point to the excess space and costs of Tesco’s supermarket portfolio, which it has tried to address by cutting back on spending in new locations and providing other retail brands in the spare space.
This article in Management Today provides an accessible analysis of six key issues facing Tesco.
This “shopping list” of strategic choices from the Telegraph, based on discussions with retail analysts, is also an interesting example of the varied options facing Dave Lewis. Here are the suggestions.
1. Rebrand Tesco stores as Tesco Value, Tesco Finest stores, and midmarket
2. Cut prices
3. Consider scrapping Clubcard
4. Take the Tesco brand back to basics
5. Negotiate better deals with suppliers
6. Develop Tesco’s online operations
7. Revamp the senior management team
8. Reposition out-of-town supermarkets
9. Sell underperforming international businesses
10. Reduce the margin below 5pc and cut costs
In my view, the most important challenge for Lewis is to define and communicate what Tesco stands for. Is it a low-cost retailer? Can it differentiate the shopping experience in another way that builds and sustains customer loyalty? And what kind of organisational culture does Tesco need to be able to deliver on this vision?
One thing is for sure, though. Dave Lewis is about to undertake a significant change programme at Tesco
Guidance
There will be a summative assessment briefing in class in teaching week 6.

1. What are the current challenges facing Tesco? You will need to analyse the internal and external forces for change, this may include economic conditions, competitors etc. You will also need to use models such as PESTLE, SWOT and Force Field Analysis to support your answers.

2. As a large organisation, Tesco is about to undergo a major change programme, it is very likely that there will be resistance to change from employees. What recommendations would you provide to Dave Lewis (new CEO) to manage resistance to change within Tesco? For this answer you will need to look at some of the ways in which resistance to change can be managed, for example good communication and why this is important. You will need to use evidence from the literature to support this.

3.   Critically discuss the most appropriate leadership style for Dave Lewis to adopt in this time of change. Justify your answers with evidence from the literature. For this answer you will need to critically discuss the different leadership styles such as Democratic and Autocratic and provide evidence from the literature to support your answer.
2.c.   Assessment submission structure
The assignment must, at the minimum, include:
•   Cover page (including SRN and word count)
•   A title page
•   Contents page
•   An introduction (summary of task, background information and short outline of the structure of the paper)
•   Answer to questions
•   References
•   Appendices (if required)
The references should include academic, web-based and professional sources. It is important to show that you understand the limitations of the web sources and appreciate the significance of the professional and academic ones. This is reflected on the number and the quality of the used sources. For this level, a minimum of 12-15 references is required as evidence of broader reading. References must be cited using the Harvard Referencing Style.
Any figures or graphs used in the report must have captions and, wherever needed, be properly referenced. All other instructions in general assessment guidance need to be followed.

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