This report was submitted by Mario El Khoury to the University of Glasgow and shows the strategic changes done by Lidl to overcome Brexit effects, using different analytical models such as Intervention Strategy Model, PESTEL analysis, TROPIC, SWOT, Force Field Diagram, ADKAR, Fishbone diagram, and Key Performance Indicators.

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Managing Strategic Change- Engineering (MGT5216)
Final Assignment
Lidl GB Beyond Brexit
Prepared by: Mario El Khoury
ID: 2491130E
Word counts: 2745

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Executive summary
On 23rd June 2016, the United Kingdom voted to leave the European Union. A new phase
started with negotiations between the UK and the EU (Sandford, 2020). The World Trade
Organisation restrictions are threatening retailers’ business by adding more border tariffs
(Nazir, 2019). Therefore, this report reflects Lidl GB strategic changes using different analytical
models to critically analyse the:
1. Relaying on UK suppliers in the long term, which can benefit the overall economy but
might generate a shortage of products, due to the insufficient UK production
capabilities.
2. Opening of new customs department able to manage and store products.
3. Delivery Duty Paid (DDP) contracts with EU suppliers tending to force them to pay
border taxes, therefore Lidl might be able to sell at the same prices.

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Contents
Executive summary.......................................................................................................................................2
1-Introduction...............................................................................................................................................5
2- Intervention Strategy Model ....................................................................................................................6
2.1- Problem Initialisation.........................................................................................................................7
2.2-Definition............................................................................................................................................8
2.2.1-Identifying the Problem...............................................................................................................8
2.2.2- A. Lidl’s Success Criteria..............................................................................................................8
2.2.2- B. Tesco’s Success Criteria ..........................................................................................................9
2.3-Evaluation .........................................................................................................................................10
2.3.1 PESTEL Analysis..........................................................................................................................10
2.3.2-Influence Analysis ......................................................................................................................12
2.3.3-Force Field Diagram...................................................................................................................14
2.3.4-TROPIC Test................................................................................................................................15
2.4- Implementation...............................................................................................................................16
3- Theoretical considerations .....................................................................................................................18
4- Recommendations..................................................................................................................................20
4.1- Considerations.................................................................................................................................20
4.2-SWOT Analysis ..................................................................................................................................23
4.3-ADKAR Analysis.................................................................................................................................24
4.4-Fishbone Diagram.............................................................................................................................26
4.5- Lidl’s Key Performance Indicators (KPI)...........................................................................................27
Conclusion...................................................................................................................................................28
References ..................................................................................................................................................29

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Tables
Table 1: Analytical models ............................................................................................................................5
Table 2: Lidl's Success Criteria ......................................................................................................................8
Table 3: Tesco’s Success Criteria...................................................................................................................9
Table 4: Lidl PESTEL Analysis.......................................................................................................................10
Table 5: influencers.....................................................................................................................................13
Table 6: TROPIC Test For Lidl ......................................................................................................................15
Table 7: Analyse of TROPIC test..................................................................................................................16
Table 8: Lidl’s Success Factors.....................................................................................................................17
Table 9: Buchanan and McCalman’s model of perpetual transition management....................................18
Table 10: SWOT Analysis.............................................................................................................................23
Table 11: ADKAR Model..............................................................................................................................24
Table 12: Lidl's KPIs.....................................................................................................................................27
Figures
Figure 1: Lidl's ISM phases (McCalman, 2015a)............................................................................................6
Figure 2: Impact of quantity supplied on price (tutor2u, 2020) .................................................................7
Figure 3: Quantity Demanded vs Income (Economics help).......................................................................12
Figure 4: Influence Map..............................................................................................................................12
Figure 5: Lidl's Force Field Diagram ............................................................................................................14
Figure 6: Hard/Soft Change.........................................................................................................................15
Figure 7: Production process ......................................................................................................................19
Figure 8: Extreme Relying on UK Suppliers.................................................................................................20
Figure 9: Buying Behaviour Influences........................................................................................................21
Figure 10: Demand shift Leftward ..............................................................................................................22
Figure 11: Ajzen's model (Groeninckx, 2015) .............................................................................................25
Figure 12: Lidl's Fish Bone...........................................................................................................................26

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1-Introduction
Lidl was founded in Germany in 1973 and has grown to become one of the largest retailers in
Europe. The first Lidl GB shop was opened in 1994. Today, Lidl has more than 800 stores in
Great Britain to deliver groceries across the UK and employs around 22,000 employees. Lidl GB
ensures to offer the best quality products with the lowest price possible, where its products are
mostly imported from EU suppliers (Lidl, 2020).
To deal with the new Brexit regulations, Lidl aims to create a new customs department and
change its contract with suppliers to ensure that the imported products keep reaching the UK
shelves with low prices after Brexit (Farrell, 2019).
This report aims to discuss the change management strategies done by Lidl to overpass Brexit
effects. Therefore, by using analytical models, this report evaluates the change and its
implementation. Also, a comparison between Lidl and Tesco the largest retailer in the UK is
analysed in addition to some recommendation that might help Lidl in the future.
Table 1: Analytical models
1 Intervention Strategy Model (ISM) to analyse how Lidl’s change was evaluated and
implemented
2 PESTEL to analyse how external factors are affecting Lidl
3 TROPIC to analyse the impact and magnitude of Lidl’s impending changes
4 Force Field Diagram to study the driving and restraining forces affecting Lidl and decide
whether to change or not
5 SWOT to determine Lidl’s strength, weakness, opportunities, threats and recommend how
to use the strengths and improve weakness to succeed
6 ADKAR to recommend how to implement Lidl’s change successfully
7 Ajzen's model to recommend how to ensure Lidl’s employees’ willingness to work
8 Fishbone diagram to identify the cause of Lidl’s problems

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2- Intervention Strategy Model
This is an analytical model that shows the steps needed to implement a change effectively, by
initialising the problem and defining the change itself then evaluating using managerial tools.
The system has a feedback loop which maintains communication and monitoring. In other
words, any problem that appeared while implementing will be defined and evaluated
(McCalman, 2015a).
Figure 1: Lidl's ISM phases (McCalman, 2015a)

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2.1- Problem Initialisation
The Brexit is a problem on Lidl GB which supply the majority of the products from European
suppliers. Lidl expected that the lack of products due to the waiting of trucks on boarders and
the additional tariffs can increase its prices, which threats its long-term sustainability (Farrell,
2019). In other words, Lidl's sales can be decreased due to the low supply and to the increase in
prices, which will affect the market equilibrium. Figure 2 shows the direct relationship between
the market supply and the price of a Coffee. It is clear that when the quantity supplied decrease
from Qe to Q2, the price increase from Pe to P2, this is the effect of shortage in products.
Figure 2: Impact of quantity supplied on price (tutor2u, 2020)

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2.2-Definition
2.2.1-Identifying the Problem
Identifying the problem is the core of the definition phase (McCalman, 2015), after voting for
separating the UK from the EU. Brexit started to affect all UK retailers by disrupting the UK’s
supply chains which will lead to seeing empty supermarket shelves (McKevitt and Gaul, 2020).
These external driving forces affecting Lidl GB are pushing it to change and adapt a new
strategy to get ready for the Brexit. According to Rushton (2019), Lidl GB is not only working on
itself but also it is working to ensure that its valued suppliers are also prepared.
2.2.2- A. Lidl’s Success Criteria
Lidl is taking some steps to prevent Brexit effects on its business and sustainability:
Table 2: Lidl's Success Criteria
1 Working with external consultants and holding several workshops with suppliers to ensure
their sustainable supply chain and prevent any disruption (Rushton, 2019)
2 Changing its suppliers’ contract to DDP contracts. DDP is a delivery agreement that forces
the supplier to pay border costs and take all responsibilities, risks and deliver products to
the destination place (Rushton, 2019). In other words, Lidl is securing its supply chain from
additional border fees and ensuring to keep selling at the same prices, which means
ensuring high demand and customers’ sustainability
3 Shifting to buy more from UK suppliers to get rid of border tariffs (Rushton, 2019)
4 Creating a customs department at south-west London responsible for ensuring imported
products still reach UK shelves after Brexit (Farrell, 2019)

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2.2.2- B. Tesco’s Success Criteria
Comparing Lidl success criteria to Tesco the largest retailer in the UK, there is a similarity in
both objectives; both seek market sustainability by ensuring that the food will remain on the
stores’ shelves at low prices. Tesco’s success criteria are formed from:
Table 3: Tesco’s Success Criteria
1 Shifting to buy more from UK suppliers. This step is helping Tesco to get rid of tariffs and
ensuring that the shelves will not be empty (Weinberg, 2017)
2 Increasing the in-store promotions to create an allusion of low cost and high-value
products since consumers are expecting to see high prices after Brexit (Weinberg, 2017)
3 Stockpiling long-life products in its warehouses and dealing with its suppliers to ensure
the supply of fresh food which is hardly stored (Partridge, 2020). Stockpiling long-life
products protect Tesco’s supply chain and prevent disruption
4 Stop selling Unilever products after raising prices. Unilever is a UK food manufacturer but
produce the majority of its products outside the UK (BBC, 2016) therefore Unilever was
forced to increase its prices.
5 Cancelling secondary brands for the short term and focusing only on the main brands
(Quinn, 2019). This cancellation gives Tesco enough places to store the main brands which
are highly demanded

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2.3-Evaluation
2.3.1 PESTEL Analysis
PESTEL is an analysis to determine the external change drivers that shape the organisation’s
competitive position and affect its performance, also adopting PESTEL helps to identify any
macro-environment forces that may change in the future (Yüksel,2012).
Table 4: Lidl PESTEL Analysis
Factor Example Evaluation The impact from 1-10
Political
Trade Union
Government salaries
policies
Political instability
Labours’ rights
Threat
Opportunity
Threat
Threat
7
6
9
7
Economic
Pounds rate
Tax rate
20% poverty rate
Threat
Threat
Opportunity
9
7
5
Social
Change in customers’
desires
Customers’ satisfaction
Opportunity
Threat
5
8
Technological
E-commerce
Technology incentive
Opportunity
Opportunity
6
6
Environmental
Pressures to go green
Climate change
Threat
Opportunity
6
5
Legal
Suppliers’ contract
Employment law
Threat
Opportunity
6
5

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Table 4 shows several external factors that are affecting Lidl stores, some with a high threat
such as political instability. It is proven by Alesina et al. (1996) that political instability affects
investors by obliging them to postpone investment. In addition, the economic factors such as
Pound’s rate affects Lidl prices immediately, since Lidl is paying to its international or EU
suppliers in Dollar or Euro (The Irish Times, 2016), which force Lidl to increase its prices in case
of a drop in pounds rate.
Moreover, customer satisfaction is becoming harder nowadays due to the high number of
competitors who are trying to meet customers’ desires (Fawcett et al., 2000). Also, Lidl lost its
case against GMB union’s, after considering that giving employees organisational support only
is enough, and engaging them in unions is unnecessary. Lidl was forced to gives hundreds of
workers their right to union representation (Gaskell, 2017).
In contrast, some factors are considered as an opportunity or low threat, it is shown that the
poverty rate is not a high threat, Lidl is mostly selling essential and normal goods which are not
highly affected by the poverty rate and minimum wage. In other words, it was proven by
Francois (1996) that customers will remain to buy essential goods such as groceries, no matter
how their salaries dropped.
It is shown in the figure below that the demand for a normal good is tending to be vertical,
which prove that any change in income has not a significant impact on the quantity demanded
of necessities goods which will decrease by 100 after a decrease in salary by 200 £, the demand
is inelastic. In contrast, the luxury demand line tends to be horizontal, which means that a small
change in income has a significant impact on luxuries’ quantity demanded which will decrease
by 100 after a decrease in salary by 50 £, the demand is elastic.

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Figure 3: Quantity Demanded vs Income (Economics help)
2.3.2-Influence Analysis
Lidl’s new strategy is influenced by different external and internal factors (figure 4). It was
proved by Zinovieva et al. (2016) that these factors affect the stability of an organisation.
Figure 4: Influence Map

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Table 5: influencers
Lidl’s
Influencers
Influence
Direction
Analyse
Competitors External Aldi and others are fighting hard on price against Lidl (Springer, 2018). The
main core of competition is the price, this competition is shaping Lidl's
prices and customers’ satisfaction who search for the lowest prices.
Stakeholders Internal A stakeholder might be any individual who has an interest or affects Lidl’s
business eg. investors, contractors, owners. According to Bourne et al.
(2005), It is important to form a stakeholders map to determine the
influence of each stakeholder and to form an effective communication plan
Government External After Brexit, Lidl is forced to deal with new governments and law policies
which affecting the way Lidl operates. According to Revoredo-Giha et al.
(2018) government policies such as taxes on food which encourage obesity,
are impacting retailers by decreasing the demand on these products
Customers External According to Vandermerwe and Oliff (1990), customers are shaping the
way that the organisation works, eg. many customers tend to buy from eco-
green shops. Lidl stopped colourful products and is currently Increasing the
transparency of animal welfare standards which is very important to many
consumers, also Lidl is decreasing sugar in food by 20% to support
childhood obesity plan, in addition to a 20% reduction of carbon emission
by 2025 (Lidl, 2018)
Suppliers External In the case of no-deal between Lidl and its suppliers, Lidl will be forced to
pay extra fees which will increase its prices and affect its sustainability. Lidl
is trying to protect its sustainability by DDP contracts, also in relying on UK
suppliers as maximum as possible (Rushton, 2019).
Partners Internal Saxton (1997) found that partners have an internal direct negative or
positive impact organisational business. Lidl’s partners are influencing its
strategy and image. eg. Red Tractor is one of Lidl’s partners and it is
ensuring to provide Lidl with fresh high-quality products (Lidl, 2019). Any

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issue in Red Tractor food will impact Lidl’s image.
2.3.3-Force Field Diagram
By applying a force field diagram, Lidl’s change manager can identify the magnitude of each
driving and restraining force affecting its organisation (McCalman, 2015a). Lidl’s driving forces
forced the company to change to adapt to the new Brexit regulations (figure 5).
The limited resources issue appear in every organisation, however, what matter is that Lidl
recruited specialist employees and external consultancy to implement new changes. Weeks et
al. (2004) agree that the fear of change is always present among managers, in this case, the fear
is seen in both driving and restraining forces, but the fear of lack in food is everybody's fear
(Lidl’s managers and customers) while the fear of change is confined between some managers
and it is recommended not to affect the change in such sensible situation.
Figure 5: Lidl's Force Field Diagram

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2.3.4-TROPIC Test
The TROPIC test is a tool to identify the impact and magnitude of an impending change and to
identify the best change method (McCalman, 2015).
Table 6: TROPIC Test For Lidl
TROPIC
Factors
Description Solution
Methodology
Timescale
Clearly defined Hard
Resources
Unclear and variable Soft
Objectives
Objective and quantifiable Hard
Perceptions
Shared by those affected Hard
Interest
Limited and well defined Hard
Control
Management group and external consultancy Hard
Source
Originates internally Hard
Figure 6: Hard/Soft Change
Hard
• System Based
• Simple Solution Methodology
Soft
• People Centered
• Complex Solution Methodology

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Table 7: Analyse of TROPIC test
TROPIC
Factors
Analysis
Timescale
Lidl started to think about the change after the UK voting in 2016 and has
enough time to plan for it (Farrell, 2019)
Resources
The resources are not clear in this case due to the new Brexit regulations,
suppliers may not accept Lidl DDP contract which will force Lidl to search for
other suppliers and tends to rely on UK suppliers. Lidl has also enhanced its
resources by recruiting new employees to work in the new customs department
(Farrell, 2019)
Objectives
Ensure a sustainable supply chain with the minimum price possible (Rushton,
2019)
Perceptions
Well defined
Interest
Lidl is considered cheaper than Tesco and Aldi and interested to remain on its
low prices (Borland, 2020)
Control
The control of this change is handled by Lidl’s managers and external
consultancy who are dealing with suppliers to find a way to satisfy everyone
(Rushton, 2019)
Source
The change decision is internal and led by Lidl head office and was taken to
ensure Lidl’s sustainability, in the presence of the external factor which is Brexit
(Rushton, 2019).
The above table shows the importance of TROPIC in identifying the most suitable change
management methods to manage the new change.
2.4- Implementation
According to McCalman (2015), after defining the problem and evaluating it with managerial
tools, the system becomes understood and the foundation for the change is ready. The next
step is to introduce the change to the system. At this point, managers identify the efficiency of

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all previous analysis and tests done. To ensure a successful change implementation, Lidl has
met all of McCalman’s success factors (Table 8).
Table 8: Lidl’s Success Factors
Success Factors Lidl’s actions
A comprehensive
definition of the
change situation
A days after the announcement of Brexit, Lidl’s former bosses warned that Brexit
will hit their shops hard and started to find a change solution (Lidl, 2016).
Include every
individual that may
affect the change
Lidl ensured to negotiate with its EU suppliers as they are affected by new
regulations and due to their high influence on Lidl’s sustainability as it is discussed
in the previous part. Also, Lidl is investing £15bn in its British suppliers to ensure
its stability (Hart, 2019).
Change calls upon a
wide range of
competencies to be
employed.
According to Farrell (2019), Lidl recruited a pioneer of customs and imports to
deal with the new Brexit strategy. Also, Lidl recruited around 5000 employees and
ensured to have a Brexit team that able to deliver high-quality tasks to implement
the change successfully.
Visible and tangible
senior management
support
Lidl is supporting its employees by evaluating their skills and ideas and by
breaking diversity barriers, as well as providing a good work environment to
ensure customers safety (Lidl, 2019). A good work environment helps employees
to be more productive and this was proved by Massoudi et al. (2017) analysis.
High team
communication
Lidl has an internal communication platform to ensure high communication
between employees and break barriers between them (V+O Communication,
2020). According to Darling et al. (2003), communication is an essential element
in the workplace. Also, he insisted that communication is not only lending an ear
but also collaboration. Thus, high communication will keep on workplace
harmony and encourage people to collaborate more and increase their
productivity to increase organisational profit.
Success in providing
resources
As is mentioned before, Lidl is negotiating with EU suppliers and investing £15bn
in British business to ensure its grocery resources.

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3- Theoretical considerations
Lidl used Buchanan and McCalman’s model of perpetual transition management to recognise
the need for change and to be able to deal with it.
Table 9: Buchanan and McCalman’s model of perpetual transition management
The trigger layer According to Buchanan and McCalman’s (1989) the need for change
should be seen as an opportunity and not a threat. In Lidl's case, Brexit
offered the chance to UK retailers to supply more from UK wholesalers
and food manufacturers. It is proved by Almasifard and Khorasani (2017)
that the production in a country affects the purchasing power of its
society. Lidl’s opportunity to enhance the production in the UK, which
decreases the unemployment and poverty rates and increase purchasing
power, which benefits retailers (Figure 7)
The vision layer Lidl’s new strategy is tending to focus more on UK suppliers (Rushton,
2019)
The conversion layer Investing more in the UK and recruiting new employees who are able to
manage the change (Lidl, 2019)
The maintenance
and renewal layer
Maintaining a sustainable supply chain with low prices (Farrell, 2019)

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Figure 7: Production process

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4- Recommendations
4.1- Considerations
1. An extreme relying on UK suppliers can cause a new issue that Lidl should be aware of in
the future. Brasca (2011) agrees that if suppliers don’t have high capabilities to deal with
high demand, this can lead to a shortage in products and an increase in prices which will
disrupt the retailers' supply chain (Figure 8). This issue returns Lidl to the same scenario
which Lidl is trying to avoid. Therefore, it is recommended to have a balance between UK
and EU suppliers.
Figure 8: Extreme Relying on UK Suppliers
2. In the case of EU suppliers who are not willing to change contract into DDP, Zolkiewski et
al. (2006) recommend ending the unprofitable business relationship. However, Atkin
(2006) suggest keeping on communication with this type of suppliers is essential. Lidl
might use later on these suppliers especially if the UK suppliers were not able to feed the
market and the scenario of figure 8 happens.
In contrast, Ogbonna (1996) agree that the breaking of relationships with suppliers who
are not willing to collaborate shows the power of the retailer which is Lidl, this influence
other suppliers and make them believe that Lidl will break off the relationship with any
supplier who raises the price. Therefore this will make them collaborate more and study
any price raise idea.
It is recommended that Lidl influence its EU suppliers by showing them that Before a
break of relationship, Lidl’s direct customers are indirectly considered as EU customers.
in contrast, after the break of relationship, Lidl’s costumers will keep buying from Lidl but
High
Demand on
UK
suppliers
Not enough
resources to
produce
Shortage in
products
Quantity
Demanded
higher than
quantity
supplied
Increase in
prices and
disruption
in market
equilibrium

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they will not be considered as EU customers anymore, as they will be buying UK
products.
3. According to Quinn (2019), Tesco increased its in-store promotion and it is
recommended that Lidl follow this step as this supports consumers and influence their
buying behaviours by creating an allusion of high-value and low prices. A study
conducted by Khanfar (2016), conclude that promotion about low price and high values
affects consumers buying decisions (figure 9).
Figure 9: Buying Behaviour Influences
4. It is favoured to cancel second brands in case of no storage space, as Tesco cancelled and
postponed secondary brands and prioritized its suppliers (Quinn, 2019). This cancellation
caused by the lack of storage places supposed to be short term, as Lidl has high
investment capabilities and Porter (1997) suggests using this strength in investing in new
storage centres able to handle a diversity of products that will give the organisation more
competitiveness.
The diversity of products helps to remain on a sustainable business while meeting all
consumers' desires. It is approved by Tjahjaningsih, Ningsih and Utomo (2020, p488) that
“the higher the service quality and products diversity, the more positive impact it would
Buying
Behavior
High-value
Low Prices Promotion
Store
Environement

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have on the customer satisfaction level”. It means that Lidl’s requires to remain on the
diversity of its products to satisfy its consumers in a business full of competitors.
5. It is recommended to focus on a sustainable supply of complement goods because the
disruption in the supply of a product affects the demand on its complement (Rousou et
al., 2008). E.g. Serial and milk are two complement products, the lack of supply of milk
coming from EU affect the demand on cereal at Lidl’s shops, causing the demand line to
shift leftward which means that the decrease in quantity demanded is not caused by an
increase in the price of the product, but caused by another effect, which is in this case
lack of supply of a complement product.
Figure 10 shows that the demand has decreased by 100 while the price was stable, which
shifted the demand line leftward. This is what Lidl expect to see in the future in case of
shortage in one of the complement goods. Therefore, it is recommended to supplement
a good and its complement at the same time to satisfy consumers and ensure high sales.
Figure 10: Demand shift Leftward

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4.2-SWOT Analysis
SWOT analysis is an effective tool to analyse an organization's strengths, weaknesses,
opportunities, and threats. This analysis helps managers to use strength and prevent weakness
to remain on a successful change McCalma (2015).
Table 10: SWOT Analysis
S
Strengths
W
Weaknesses
O
Opportunities
T
Threats
• Cheapest
grocery in the
UK (Patel, 2020)
• High capability
in investment
(Clark, 2020)
• Strong brand
image in Europe
(Hammett,
2019)
• “Lidl has lost
about half a
billion euro to a
failed SAP
project”
(Bosteels, 2018)
• According to
(2018) Lidl US
failed in 53
stores
• Online
shopping
• Business
expansion
• High
competition
(Springer,
2018)
• High customs
due to Brexit
• Pounds rate
(The Irish
Times, 2016)
Based on the SWOT analysis above and according to Borland and Patel (2020), Lidl is considered
the cheapest grocery retailer in the UK and a major strength, becoming entrenched in
customer’s mind through the promotion. Moreover, Lidl has a high capability in investment
which helps to expand more and open new storage places to deal with Brexit. In contrast, high
competition is threatening Lidl’s business and this can be seen in the failure of Lidl in the US.

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4.3-ADKAR Analysis
The ADKAR Model is an effective tool for planning change management activities, and increase
the likelihood of successful change implementation, and supporting your employees
throughout the change (Hiatt, 2006).
Table 11: ADKAR Model
A
Awareness
D
Desires
K
Knowledge
A
Ability
R
Reinforcement
Raising awareness in
Lidl helps employees
to get engaged
(McIlwraith, 2006).
The more the
employees know
about the reasons
for change, the more
they will be able to
accept it
The willingness to
adapt to new changes
is explained in Ajzen’s
model (figure 11) that
highlights the three
essential factors of
employees’ intention
Groeninckx (2015).
Applying This model in
Lidl’s change can
ensure that everybody
wants, have to, and can
change because this
change benefits Lidl to
remain on sustainable
supply chain
It is approved by
Stensaker and Meyer
(2011) that highly
experienced and well-
trained employees can
adapt to the change
quickly. Therefore Lidl’s
employees must be
well trained before
implementing the
change as this process
prevent issues and
failures
This step refers to
turning knowledge
into actions.
According to Ajzen’s
model, employees
must have the ability
to go for this change
and in case of lack of
employees’
experience, Lidl has
to recruit specialists
to help the company
to change or adapt a
Human Resource
Development to
develop employees
skills and talents
Budiwati et al.
(2013) suggest
identifying the
internal and
external factors
that shape the
organisation.
Therefore after
identifying Lidl’s
change factors,
managers can know
how to react to
them

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Figure 11: Ajzen's model (Groeninckx, 2015)

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4.4-Fishbone Diagram
This analysis identifies the major issues disrupting Lidl’s supply chain and customers’
satisfaction (figure 12).
Figure 12: Lidl's Fish Bone
Disruption in
supply chain
and
customers'
satisfaction
Quality
problems
Inadequate
suppliers
Low suppliers'
capabilities
Poor process
control
Delay on
borders
affecting fresh
food
No stock
available
Delay on
Borders
Problem with
EU suppliers
Poor
Comunication
Inadequate
contracts
No space to
store
High prices
Border taxes
New customs
after Brexit
Pounds Rate
Economic
instability
Governement
issues
Poliical
instability

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4.5- Lidl’s Key Performance Indicators (KPI)
The Brexit effects are long term and to remain on a successful change, it is recommended that
Lidl measure its long-term performances using KPIs. The KPI should always be related to the
organisational goal, it should also provide answers to all important questions.
Table 12: Lidl's KPIs
KPIs Benefits
Weekly supply report Helps to identify any issue in the supply chain (Nah et al. 2003)
Monthly change process
report
A successful change is done by monitoring and comparing the
change success with milestones (Aladwani, 2001)
Successful Training for new
employees
Successful training through human resource development
guarantees employees’ high performance and engagement
which increase their productivity (Bartel, 1994).
Storage places ready Helping in providing customers with all desirables products
Contract issue successfully
resolved and turned to be
DDP contract
Ensure that EU suppliers will pay customs and border fees and
Lidl will remain to sell at low prices
Shelves are fully loaded with
all types of products
Ensure customers satisfaction and high sales (Tjahjaningsih et
al., 2020)
Dealing with UK suppliers Helps in having different suppliers who can provide Lidl with
different types of products. Berger et al. (2004) agree that this
diversity in suppliers ensures a sustainable supply chain. In
other words, the same product can be bought from different
suppliers, this will decrease the monopoly and increase
competitiveness.

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28
Conclusion
The Brexit was unpredicted and its ramifications keep affecting the way retailers work. Lidl as
others are trying to survive by changing the operation way, turning EU contracts into DDP,
relying more on UK suppliers and storing more products.
this report has argued that the high relying on UK suppliers can lead to two different scenarios.
Firstly, UK manufacturers may increase their capabilities to meet the high demand, which
increases UK production and is positive on the overall economy. Secondly, the high relaying on
UK manufacturers may generate a shortage of products due to the low production capabilities,
which will put Lidl in an embarrassing situation and disrupt its supply chain. Therefore, it is
recommended to keep a balance between EU and UK suppliers.
This report also showed a comparison between Lidl and Tesco. At some point, Lidl can follow
Tesco’s strategies, such as instore promotion and breaking off business relationships with
suppliers who are not willing to collaborate. However, this report has critically analysed that
the breaking of a business relationship with a supplier, may deterrent other suppliers from
raising the prices.
The recommendation section of this report showed different analysis and considerations that
might help Lidl in the future to remain on a successful change, as the importance is not only
changing but also handling the success of the change, by monitoring and preventing future
issues.

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29
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