Critical Examination of the change management implications the Essay

Critical Examination of the change management implications the retirement of Terry Leahy's (Chief Executive) will have on Tesco - Essay Example Since its conception, Tesco has taken advantage and tackled major changes which have contributed to its success. Many changes facing the organization involve entrance of more women in the workplace, big disposable income, advent of weekly shop and the cheap food policy which was adopted in Britain after Second World War. The Origins and Development of Change in Financial Management The change in the financial growth of Tesco originates from e-commerce business activities which started in 2000 according to Finch (p184). Tesco concentrated more on its non-food business including the e-commerce business. Since then the company’s market shares have rapidly and impressively improved in the twenty first century. The management of Tesco since in history has been using technology for effective change. Tesco came up with a project known as Prospect to establish the areas in which technology could improve operational performance. The supermarket has indulged in a store-opening programme r for maintaining its position as the leading supermarket in the UK. The departure of a chief executive from any company attracts huge expectations in as far as changes in management are concerned as suggested by Toni and Tonchia (p947). The change can positive or even unsetting one depending on the leaving chief executive influence. The retired chief executive officer of Tesco spent his career developing the organization to be the biggest grocer in Britain. However his successor Phillip Clarke, will face the challenge of either maintaining the position or braking the company. The retailer has a wide range of products ranging from food to furniture as well mortgages and motor scooters. It has several outlets including its headquarters in Cheshunt and its branches in china. Tesco customers include buyers of high-quality goods and of low-cost goods while stores range from mega-stores to corner shops. One of the major changes that have been encountered by the retailer since the retirem ent of Leahy is the financial management. Since the set up of a joint venture with Royal bank which was done Leahy’s predecessor, Tesco has been offering financial services. According to Anon (69), this section has rapidly grown offering services such as loans, insurance and credit cards. One of the financial changes includes the now fully owned Tesco Bank which is aiming at becoming a great competitor to other banks. So far Tesco is selling its financial products to almost six million customers. Last year, the retailer launched a range of mortgages and savings account while in the current year Tesco is planning to launch a current account. The retail organization also intends to capitalize the discontent of customers through their current jobs. A focus by Liz Hartley who is principle consultant indicates that Tesco Bank will be among the top ten best banks in the country within the next five years. However the growth of the bank is likely to cause more changes in the organiz ation since banks are valued in a very different way compared to retailer. Key Implications of the Change to the Organization The change in financial management of Tesco has brought with it different implications. These implications include: The implication of balancing the current cost of managerial time with the new suppliers benefits as well as how to cope with the existing suppliers. With the retirement of Leahy, Tesco financial managem