Leadership and Change Management - Essay Example

To overcome resistance to change, it is shown that Tesco’s management must ensure effective communication and education of employees on the proposed change. The final section focuses on the democratic leadership style as the most appropriate for change management at Tesco. It is thus considered that democratic leadership will see Tesco through a successful change process. The international presence of Tesco is still inadequate. To expand, Tesco will need heavy investment, which might increase the company’s debt.

Additionally, some of the countries that Tesco has expanded into may not be highly profitable. For instance, although Tesco expanded into Korea, the consumer spending of this country is low, hence this poses a high risk for Tesco. Opening stores in high risk areas jeopardises the financial health of the company (Tesco 2015). Before expanding, Tesco must evaluate its resources and the risk level of the host country. The industry in which Tesco operates is highly competitive, and this does not guarantee Tesco sustained profitability.

The major competitors of Tesco include ASDA Group Ltd, Safeway Inc., ALDI Group, Somerfield, Sainsbury plc and Morrison among others (Appendix 1). These existing competitors challenge Tesco in different areas, including pricing, among others. Tesco must differentiate itself and adopt an effective business model in order to overcome competition. The Sainsbury reduced its prices by 6% while Safeway is focused on lowering its prices as a strategy to continue is recovery process. Similarly, Asda is committed to retaining price leadership in the industry.

Tesco is also focused on price leadership, therefore, this implies that the industry experiences price war, and this might influence the profitability of the industry in an adverse manner (Data Monitor 2004). Tesco must adopt an effective pricing strategy to address the price war it is