Change Management [Name of the Student] [Name of the … · 2020. 8. 15. · Title: Change Management Introduction: Company Profile-TESCO TESCO is supermarket retailer which provide

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Change Management

[Name of the Student]

[Name of the University]


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Contents

Introduction: Company Profile-TESCO ....................................................................................... 4

2. Three issues with Overall Operations Transfer process, logistics, Escalation ........................... 5

2.1Description of First Issue identified: Transfer Process .......................................................... 5

2..1.1 Why there is a need for improvement ........................................................................... 5

2.1.2 Benefits if improvement is made ................................................................................... 5

2.2Description of the Second Issue: Logistics ........................................................................ 6

2.2.1 Need of Improvement .................................................................................................... 6

2.2.2 Benefits of Improvement ............................................................................................... 6

2.3 Description of the Third Issue: Escalation ........................................................................ 6

2.3.1Need for Improvement .................................................................................................... 7

2.3.2 Benefits of Improvement ............................................................................................... 7

3 Literature Review: Project Appraisal and Methods ..................................................................... 7

3.1 Definition of Project and Project Appraisal .......................................................................... 7

3.1.1 Project Appraisal Method 1: Net Present value ............................................................. 8

3.1.2 Project Appraisal Method 2: Payback Method .................................................................. 8

3.1.3 Project Appraisal Method 3: Internal Rate of Return ........................................................ 8

3.1.4 Project Appraisal Method 4: Profitability .......................................................................... 9

3.2 Application of Project Appraisal Criteria and Method to improve the three identified issues

..................................................................................................................................................... 9


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3.2.1 Improvement on Transfer process with Net Present Value method ............................ 10

3.2.2 Improvement in Logistics with the help of Payback Method ...................................... 10

3.2.3 Improvement in Escalation issue with Profitability issue ............................................ 10

3.3 Selecting the Improvement issue to implement .................................................................. 11

4.0 Literature Review on Radical Change and Continuous Improvement ............................... 11

4.1 Literature Review of Radical Changes ............................................................................... 11

4.2 Literature Review for Continuous Improvement ................................................................ 11

4.3 Application of Continuous Improvement to Implement Changes is TESCO ..................... 12

5. Draft Project Plan Summary ..................................................................................................... 13

6 Literature Survey of Risk Management ..................................................................................... 13

6.1 Risk Criteria and Appropriate Evaluation Method ............................................................. 14

6.2 Continuous improvement and quality assurance risk ......................................................... 15

6.3 Qualitative Analysis ............................................................................................................ 15

7.0 Evaluation of Final Plan.......................................................................................................... 16

8.0 Conclusion .............................................................................................................................. 17

References ..................................................................................................................................... 18

Appendix ....................................................................................................................................... 21

Table 1Project Evaluation Table ................................................................................................... 10


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Table 2 Risk Management Analysis (Cho, 2016) ......................................................................... 16


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Title: Change Management

Introduction: Company Profile-TESCO

TESCO is supermarket retailer which provide products and services related to household

items. TESCO was founded in 1919when Jack Coheh started selling an extra number of

groceries to people in East London. This helped him to earn a profit one percent profit from

daily groceries sale. The Supermarket dealer was turned into a brand in 1924 (Lukic,

2016.).The initialproducts were launch in the form of supermarket chains and this business

started to grow for people.

TESCO Plc is the largest business retailer supermarket in the UK.It has more than 2291

stores and employees which are offered a job record to 580000.TESCO provide a range of

products and services. These include the food materials and groceries. Materials are packed

and stored in a clean environment to consumers (Müller, 2015). Other services include the

furniture deliverysystem. TESCO has managed to form a place in the business of Garden

furniture.

TESCO provides services related to Home electrical products in the UK.These are essential

for the consumers because few items remain on the expensive list. The toys and leisure

products are provided under the single hut of Tesco. In addition to the products TESCO also

provides mobile payment services to customers (Kukreja & Gupta, 2016). There are

additional setups added to the company for customers’ convenience.


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2.Three issues with Overall Operations Transfer process,logistics,Escalation

2.1Description of First Issue identified: Transfer Process

The first issue which is identified in TESCO is the transfer process of retail products to

customers. The system which is used in transfer management relies on the services of internet

applications.This produces a draw for company operations and daily practices are affected

(Touboulic & Walker, 2015). The competitors like ASDA,Morison finds its advantages and uses

the weakness in operation for their own product improvement.TESCO sales have been affected

by transfer process and work operation is limited to hours (Lindner, et al., 2014).

2.1.1 Why there is a need for improvement

As the transfer process requires time in hours, TESCO customers have been affected.

Thecompany has faced the financial loss of 150000 dollars (Tesco, 2018). This also reduced the

daily supply of groceries to regular customs.There is a need for change because it will improve

the transfer process and allow the company to have increased in the number of sales from the

Supermarket utility.

2.1.2 Benefits if improvement is made

This improvement will create an increase in a number of jobs for TECO which at the present

state is declining to 9 percent (Altamony, et al., 2016). This will also increase the loyalty of

customer as the grocery purchase will become efficient and a good reputation will be made in the

retail sector. TESCO will attract chances of new investment and project and efficienttransfer

system will reduce the time-consuming operations.


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2.2Description of the Second Issue: Logistics

The current demand for business in retail requires Logistics. One of the key issues in the

operations management of TESCO is the logistics sector which is not incorporatedinto the other

managementdepartments (Dalton, 2017).This has created complexity in business process as the

stocks are not executed properly and the competitors use the advantage for Retail Market.

2.2.1 Need of Improvement

The logistics system is not capable to meet the requirement of groceriesstores. It requires

improvement in order to raise the profit of TESCO. In the modern world Groceries and food

items are transported according to the specifications of the product (Cook, 2017). TESCO needs

to manage its small sector as the there are frequentdiscontinuations to orders and the stock level

is declining.

2.2.2 Benefits of Improvement

TESCO will have a good position in the market as compared to the competitors like Wait rose

and Morrison. The UK market is competitive and by increasing the standard of logistics services

it will help TESCO to gain profit from the logisticstrategy (Venkatesh, 2016). It will also

improve the inventory system and warehousing. Material Handling will be improvingthrough

proper transportation routes and resources for import and export strategy will be optimized

2.3 Description of the ThirdIssue: Escalation

The TESCO operations have been unable to record escalation in terms of stocks and existing

market shares (Kelly, et al., 2016). This is due to the performance issues where the standards of

grocery products are not met in regard to the consistency. This effect the regular operation where


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the company has to resolve the issue of growth (Tesco, 2018). The recent situation of the

countrysuggests that due to less growth most of the people have lost their employment.

2.3.1Need for Improvement

TESCO operations need growth in all of the important sector.This is requirement off the

organization and it will change the number of employment standards (Morgan, 2015) (Fujita, et

al., 2017). The growth is required as its an important part of the change management and it

resides on the number of projects and their completion.

2.3.2 Benefits of Improvement

The growth will increase the number of projects for TESCO. The products quality and internal

environment will be enhanced. The loyalty of the customer will increase the existingreputation of

TESCO and it will affect the overall efficiency of Operations (Nishimura, 2016). The cost and

expenditure will also decline to the escalation of TESCO management.

3 Literature Review: Project Appraisal and Methods

3.1 Definition of Project and Project Appraisal

The project is defined as a set of activities which are given to an organization under the

completiontime. Theseactivities form a task which is required to be given at the desired

deadlines.This whole procedure will require planning and motivation because all the necessary

elements can be fulfilled with the help of specific cost and performance (Harrison, 2016). The

quality is made the first area for people in order to understand the nature of project appreciate

appraisal is taken out in support of the recent performance (Al-Ani, 2015). This performance is

assessed and returns are given in the form of financial statements. The four project appraisal

techniques which will be used under the contact of TESCO are Net Present Value, Payback,


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Internal rate of return and ProfitabilityIndex. These four elements will be compared with the

change management for T Organization (Bunyan, 2015).

3.1.1 Project Appraisal Method 1: Net Present value

The work of Ondrej shows the importance of Net present value approach which can be used in

projects like supermarkets (Zivalsky, 2014). This method basically focuses on the techniques

which can be used for true innovation of the project. This also provides benefits and advantages

of the technique.The innovation of organization and projects is required to be measured using

this criteria (Zokaei, et al., 2016). The first divisionremains under technical aspect ns second is

classified in term of economicssector.Net Present approach is related to the future cash flows.

The is a measure of investment need for an organization (Nakamura & Suzuki, 2015).

Net present values are measured with the of the mathematicalequation where the organization

values domains in the Numerous and Overall cash generation and the discounted rate remains in

the denominator for summation (Johansson & Kriström, 2015).

3.1.2 Project Appraisal Method 2: Payback Method

The payback period can also have helped to manage the project appraisal techniques. The study

made by Mawih Kareem present a strong idea of Payback ratio method and its importance in

judging the criteria for project Appraisal (Al-Ani, 2015). One of the most importantconcepts for

project appraisal is the Payback method. It helps to evaluate the capital budgeting decision and

this technique is used in a variety of project for a number of years.

The variables in this technique are the profitability and profit. They are presented in the form of

uncertainty (Pellicer, et al., 2016).The payback period is calculated with the help of dividing the


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cost with the annual sales for the organization. Liquidity and Payback period prove an important

area for the organization.

3.1.3 Project Appraisal Method 3: Internal Rate of Return

The internal rate of return is also a technique used in project appraisal method (Zhou, et al.,

2015). This forms the area of change management where the rates are calculated based on the

fixed sales of the organization. According to D.Adrian. The Internal rate of return is linkedto the

budgeting techniques (D. Adrian Doss, 2010).There are wide varieties of project management

present for private projects. Is require the attention of new investment plan which hasan internal

rate of return. This method relies on the project appraisal and can provide guidance for the

investment decisions (Dalal-Clayton & Sadler, 2014).

3.1.4 Project Appraisal Method 4: Profitability

According to the studies of Jihane and Loubna, Profitability technique is used in projectappraisal

as it provides necessary information about performanceand requirements for the investor. It is a

reliable method which can be used to regulate all the risk for the project (Al-Qubatee, et al.,

2017). Measuring the profitability of project in terms of change management is

complexlyexercised (Santiago-Brown, et al., 2015).The criteria for the Project appraisal can be

used to monitor the particulars of each project and provide traditional methods for the

performance evaluation. This criterion is simple to use and it will deliver the required results

(Gharib & Benabbou, 2017).

3.2 Application of Project Appraisal Criteria and Method to improve the three identified issues

The table below evaluates the four project appraisal methods and their relationshipto the project.

All four methods are selected in regard to them to the application for the change. The areas


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which are highlighted for changes are evaluated for the basic concepts of project appraisal and

the check is made on the base of criteria is a useful method as it saves times and provides

instruction to implement form comparison of sources and changes proposed.

Author Method Three main criteria for Improvement

in the Transferprocess, Logistics,and

Escalation

Simple

Method

Concept

Easy to

Understand

Fast

Implementation

Jihane Gharib 2017 Net Present Value

OndĜej 2013 Payback

D. Adrian Doss,2010 The internal rate of return

Mawih Kareem Al-

Ani,2015

Profitability

Table 1Project Evaluation Table

3.2.1 Improvement on Transfer process with Net Present Value method

The improvement will be made by collecting the total value of the organization and dividing

with the present reserves. If the reserved are accounted for 200000 US dollars they will be

divided by shares of 5000 US dollars. This will reduce the time of product transfer for TESCO

and increase the project completion rate for the Supermarket company (Habib, 2016).


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3.2.2 Improvement in Logistics with the help of Payback Method

The project appraisal technique will calculate the total cost of logistics for the TESCO records of

six months to one year. This amount will be dividedby the per day loss of funds. The equation

will be made in such a way where total project funds will be divided by each day share of

logistics cost (Buchanan & Bastian, 2015).

3.2.3 Improvement in Escalation issue with Profitability issue

This growth will be adjusted with the help of assessment of total records. This forms the whole

area where change is required. TESCO main products are related to the supermarket supply. This

forms the changes in profitability as the sales are divided by the total profit (Norman & Kabwe,

2015).

3.3 Selecting the Improvement issue to implement

The logistics issue will be easier to implement because it will only require a change in

technology. This will be the core area for the net present value of TESCO. It will also ensure the

products are sold on equal time limits and there isan increase in the standard of service (Lakshmi

& Rao, 2017). The process requirement will be improved through payback method and growth

will be implemented with the help of profitability criteria.

4.0 Literature Review on Radical Change and Continuous Improvement

4.1 Literature Review of Radical Changes

Radical change is defined a restructuring process for the traditional concepts of changes.

According to Rodney Mc Adams, this change is quite wide and it is important to understand the

basics of radical change for an organization (McAdam, 2003). He developed a conceptual model

which is a suitable way of using this approach.The change management’s concept of Business


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process reengineering can be used for this method. This will help to reveal the methodologies

whichareoutlinedin conceptualmodel. According to Haydn, outcomes of radical changes are

related to the public-sectoragency (Bennett, et al., 2018). There is a difference between outcomes

perceived. TheBusiness research is an important area and it can be correlated for undergoing

radical changes (Engen & Holen, 2014).

4.2 Literature Review for Continuous Improvement

Continuous improvement remains the first side of the change as there have been three decades

for continuous improvement. According to Lidia, this improvement is related to the evolution of

different fields and it combines the quantitative as well as the qualitativeprocess (Sanchez &

Blanco, 2014). They were the resistance of continuouslyimproving for survey and research

methodologies by the mainfocus remain on the survey tools. The studies of Jagdeep Singh also

highlights the importance of continuousdevelopmentbecause ofanother extensive amount of

research present in this change tool. This methodologyis implemented in the literature with the

help of solid practices (Singh & Singh, 2015).

4.3 Application of Continuous Improvement to Implement Changes is TESCO

The continuous development tool will be used to implement final changes to the setup of

TESCO. The factors which led to this decision are a changerequired for the supermarket are not

technical and will be resolved by the software improvement.2) Thistechnique has less installation

cost and better productivity3) Economics are resolved 4) There are issues related to

communication to operation department. The reason why Continuous development was choosing

depend upon the techniques. In this case, it was linked with the context of TESCO.


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Author RC CI Beneficial For Issue

Rodney McAdam

Fundamental concept

Business

reengineering

Marit Engen (2014) Comparison of

Methodologies

LyndiaSanchez

(2014)

Three Decades of

Continuous

Improvement

Jagdeep Singh (2015) Continuous

Improvement

Philosophy

5.Draft Project Plan Summary

The Draft plan will use the 50 Task and develop a timescale for all the activities.The first area

will be related to planning and second will be related to check the approach. In companies

related to supermarket and grocery, there iscontinuous improvement available for all the

operations project. Thecontinuous improvements will be made through the concept of Lindia

where the three decades of improvement were used, the project plan will of less than five months

and it will start for June 1,2018, to November 1st,2017.


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The initial step will be planning made by the TESCO teams. This will use the whole logistic

services where customer support services and product deliveryservices will be targeted. Then a

software will be developed and all the necessary changes will be implemented in the final area of

the plan.

6 Literature Survey of Risk Management

Mostafa provided an overview of the risk identification between projects. Riskidentification is

carried out with the help of effective techniques. The probability of risk is present in all the

projects. Thisuncertaintycannot be avoided (Kotb & Ghattas, 2017). These risks are identified

with the help of root causes of risk. Edward Cho has discussed the prevalence of risk in projects

like supermarkets. These barriers need to explore with the help of proper risk framework (Cho,

2016).

Risk management and planning are areaswhich can in any project facility. It is necessary to

mitigate the effects of potential problems. A risk in any uncertain even willdepend on the nature

of the project.There are no guarantees present in the project guidelines (Marcelino-Sádaba, et al.,

2014).

The studies made by Ajay also help to explain the barriers which are present in the changing

world in regard to risk option. Herethe focus was on the developed countries where risk is also

present for the construction projects (Gajanan.Bhave, et al., 2014).

Author Risk

Management

Process

Description Methods


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Mostafa (2017) Risk Planning Risk

Identification

barriers

PMI

STANDARDS

Edward Cho

(2016)

Risk

Management

Risk

Management

Framework

Ajay Gajnan

(2016)

Risk

Management

Opportunities

and approaches

Surveys,

information

collection

Byrne Risk

Management

Planning SWOT analysis,

Surveys

6.1 Risk Criteria and Appropriate Evaluation Method

Performance Cost Time

Problems may occur for the

process design

Technical people More time will be required

Technology limitations Company products Lengthy practices

Logistics issues Miss communication Materials will be required

Section risk Poor understanding of

Profitability

Pending tasks


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6.2 Continuousimprovement and quality assurance risk

There is risk associated with the quality of products and safe warehousing. The first area is the

human resource and storage capabilities for TESCO. The reduction of a number of skilled people

will provide a threat to changes. Change can also be reduced with the implementation of unions

and groups present in TESCO. The systems and technical requirements can also impede

improvement.

6.3 Qualitative Analysis

The qualitative analysis will be based on the risk associated with the Supermarkets. The high

level of risk will be related to operations management.Low and medium level risk will be

identified with the failure analysis as all the weak areas will be removed and a proper change

will be implemented.


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Table 2 Risk Management Analysis (Cho, 2016)

7.0 Evaluation of Final Plan

The final plan is made on the basis of risk assessment criteria. The radical and continuous

changes philosophies are implanted and the final guidelines for risk are carefully prepared to

support the draft. The final form is free from errors and mistakes.


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8.0 Conclusion

This report was constructed to analyze a company situation of change management and propose

a thorough analysis of the desiredorganization. Three changes were investigated in the TESCO

organization and a proper evaluation was given for the project appraisal techniques. Appraisal

techniques were applied to evaluate the change management and finally, the critical review of

radical changes and continuous changes were applied. In the end,the riskwas analyzed with the

help of literature and project framework. The project plan ensured that risk is present in every

part of an organization. It is required to have basic criteria of risk analysis and evaluation. The

change was brought in three areas of operation. The final form will help project manager of

TESCO to apply these changes again a net profit for escalation.


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Appendix

ID DepartmenTask Duration Start Finish Predecessor Total Slack Cost Resource Name

1 Delievery Plan: Define the change to be implemented for TESCO using continuous Improvement. Do check the a 60 Tue1/5/2018 1/6/2018 32.964 days Tesco manager

2 Delievery Devlop draft project plan ti improve process and submit for delievery lead approval 1 1/5/2018 2/5/2018 122.94 days $8.00 TESCO project Manger 1

3 Delievery Devlop SOP for current process 2 3/5/2018 5/5/2018 119 days $2.20 TESCO project Manger 2

4 Sales Sales lead receives contract known as request for servcie fro UKB and assings to technical support 1 6/5/2018 7/5/2018 58.06 days 821.92 TESCO Sales lead

5 Techical technical team to advise consutant 2 8/5/2018 9/5/2018 5 58.06 420.2 TESCO techical

6 Sales Sales support for technical contact on commerical lead 1 10/5/2018 10/5/2018 4 56.08 200 TESCO sales support

7 sales Commerical lead updates TESCO accounts and create invoce for the Administration 5 11/5/2018 16/5/2018 6 58.06 400 TESCO commercial lead

8 CommericaReevenue collection department controls the operation system 1 17/05/2018 17/05/2018 7 58.06 200 TESCO rfs ad

9 CommericaWhen the Inputs are received the RFS add to Vendor Response 1 18/05/2018 18/05/2018 8 58.06 215 TESCO rfs ad

10 CommericaRevenue deaprtment for TESCO adds to sales approaval for supermarket 1 19/05/2018 19/05/2018 9 58.06 215 TESCO rfs ad

11 CommericaNew request is sens to commerical service of supermarket 1 20/05/2018 20/05/2018 10 58.06 215 TESCO rfs ad

12 sales The sales resposne to TESCO is followed by the bank approval 1 21/05/2018 21/05/2018 11 58.06 820.42 TESCO Sales lead

13 Delievery Delivery to the project manager 3 22/05/2018 25/05/2018 12 58.06 1800TESCO Project manager lead

14 PMO PMO creates information on timesheetand creates folder to add the Revenue and share point 1 26/5/2018 26/5/2018 13 100 200 TESCO Admin

15 Delievery The logistics process is transformed 1 27/5/2018 27/5/2018 98 400TESCO Project manager lead

16 Delievery The assigned PM checks that TESCO check the existing sites and countries for draft project plan 1 28/5/2018 28/5/2018 14 98 420 TESCo Project Manager

17 Delievery PM organizes office and email the bank 5 29/5/2018 3/6/2018 15 93 2000 UCB Project Man

18 Delievery PM updates the process 5 4/6/2018 9/6/2018 82 1000 UCB Network

19 UCB Bank provides appraoval for TESCO 2 10/6/2018 12/6/2018 20 80 1000 Admin

20 UCB TESCO configuration is achieved 3 13/6/2018 16/6/2018 20 70 2000 Network

21 Outsource Vpaper work process 2 17/06/2018 19/06/2018 23 62 1000 Project Manager

22 Outsource Vadd certifacation for the retail process 5 20/06/2018 26/06/2018 56 2000 Network

23 Delievery Make deleivery 4 27/06/2018 1/7/2018 25 51 1600 TESCO PROJECT manager

24 UCB Conduct testing 1 2/7/2018 2/7/2018 28 46 200 TESCO Project admin

25 ManagemeSend email to the delievery system 3 3/7/2018 06/07/2018 37 1200 TESCO project manager

26 ManagemeChecklist for the delivery 1 7/7/2018 Sat07/07/18 22 30 400 TESCO Project Manager

27 Delievery When confirmed report goes from Banl to the PM. 3 8/8/2018 Wed11/07/07 33 32 200 TESCO Project Manager 2

28 Delievery Conduct analysis of the report 1 12/7/2018 Tue 12/07/18 11 100 TESCO Project Manager

29 PMO Document project plan and workshop 1 13/07/2018 Wed13/07/18 30 100 TESCO PROJECT Manager

30 Delievery Conduct analysis of the report 3 14/07/2018 Sun17/07/18 0 1200 UCB project Manager

31 Delievery Communicate the CI approved project for TESCO delevery 1 18/07/2018 Mon18/07/18 0 218 Network

32 Delievery Organize and facilitate presentation 1 19/07/2018 tue 19/07/18 0 200 TESCO project manager

33 Delievery Organizte a final communication 1 20/07/2018 Wed20/07/18 0 100 Project Manager

34 Delievery record risk 1 21/07/2018 Thu21/07/18 0 100 TESCOproject manger 3

35 Delievery Communicate to TESCO 1 22/07/2018 Fri22/05/18 0 2400 Tesco Project manager 2

36 UCB Compelte the process of change 2 23/07/2018 Mon25/07/18 5000 TESCO Project Manager 2

37 ManagemePaper work 1 24/07/2018 Sun24/07/18 45 200 TESCO Project Manager 3

38 Delievery paper work process 3 25/07/2018 Thu28/07/18 47 400 TESCO Project Manager 4

39 ManagemePaper work and email 2 29/07/2018 Sun31/07/18 50 200 TESCO Project Manager 5

40 Delievery Deliery to the schedule 1 1/8/202018 Mon1/08/18 51 100 TESCO Project Manager 6

41 PMO Billing and delivery 3 2/8/2018 Fri5/08/18 52 200 TESCO project Manager 2

42 Delievery Final lesson for the document 2 6/08/2018 Mon08/08/18 0 100 TESCO project Manager 3

43 ManagemeDelivery Approval 1 09/08/2018 Tue09/08/18 0 400 TESCO project Manager 4

44 Delievery Organise project 2 10/8/2018 Fri12/08/18 0 200 TESCO project Manager 5

45 ManagemeMangement appraoval from the administration 1 13/08/2018 Thu13/08/18 1200 TESCO project Manager 6

46 ManagemeOrganisation and hands all meeting 4 14/07/2018 Tue18/08/18 2400 TESCO project Manager 7

47 Delievery Finalize project 5 19/08/2018 Mon24/08/18 100 TESCO PMO Admin

48 PMO Organise the meeting 6 25/08/2018 Mon31/08/18 150 TESCO PMO Admin

49 share point for the pacakge 1 1/09/2018 Tue1/09/18 120 TESCO PMO Admin

50 Closure of the project 2 2/9/2018 Fri04/09/18 110 TESCO PMO Admin

51 Apply the CI System 3 5/9/2018 Tue08/09/18 100 TESCO project

52 Maintain the diversity 4 9/9/2018 Sun13/09/18 400.42 TESCO project

53 Maintin the risk 5 14/09/2018 19/09/18 200.02 TESCO project

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Documents

Change Management [Name of the Student] [Name of the … · 2020. 8. 15. · Title: Change Management Introduction: Company Profile-TESCO TESCO is supermarket retailer which provide