BUSI1702 ORGANISATIONAL DECISION MAKING SUMMATIVE ASSESSMENT
1. Introduction
Organisational decision making process broadly controls multiple or individual across decisions that manage continuous relationships for the purpose of effectiveness. The purpose of this study is to evaluate the business decision making process for Tesco in maintaining stakeholder relation and overall business operations accurately. Tesco is one of the British multinational organisations based on IT, and retail service that was founded in 1990 by Jack Cohen, and this business opened their first stores in 1929 (Investopedia, 2023). The headquarter of this business is present in Welwyn Garden City, England And these businesses are one of the largest retail businesses in the UK. “Total employees as of the year of 20321 in Tesco Plc is 3,67,321 that provides help to continue their business has increased” (Statista, 2022). This UK supermarket bus business also increased their revenue by 6% that is £61.3bm in the year of 2022 that has increased from 2021 (Retail-insight-network, 2022). This process mainly includes a course of action between alternatives in Managing business school that has often been the case of Tesco Plc.
Tesco businesses are focusing on online and physical store based product selling processes in managing their position in the market. In the year of 2022 overall market share of Tesco includes 27.3%that helps to manage their long term partnership with suppliers as well as likely aid to manage resilience in supply chain issues (Assosia, 2023). However these businesses are presently focusing on store changes processes that provide effect in managing overall business growth. On the other hand, Supplies in issues and cost of Labour Increment are major issues faced by Tesco plc in maintaining their business approach and decisions that are needed to maintain (Arokodare et al. 2019). Utilisation of long term business strategy and successful planning can develop appropriate decisions to maintain overall business growth and sustainability.
2. Stakeholder analysis
Stakeholder analysis is a procedure of collecting data about any person that provides impact in managing the overall project that helps to identify all stakeholders and their needs and expectations. As inspired by Heslinga et al. (2021), these stakeholders are based on two types including internal stakeholders such as employees, leaders, management team, board of directors. Another type of stakeholder type includes external stakeholders that involve customers, investors, community, governments and others. Stakeholder salience framework is an effective framework that helps business managers in prioritisation and identifies stakeholder with the basis of assessment of three attributes such as legitimacy, power, and urgency (Best et al. 2019). In this context, business can develop communication planning that provides indication of stakeholder and needs to manage their priority in handling stakeholder relationships within business that generate overall business sustainability. For managing Tesco business, these factors are needed to consider for each stakeholder that help to manage their important evolution process and managing strategic role to manage overall business activity for competitors. Business organisation and managing decisions are also possible to handle along with consideration of stakeholder salience framework.
Employees of Tesco
Employees are an important stakeholder that include Lulu power with high interest that I needed to manage within Tesco plc in handling their business operation. There have been 345,000 Employees of Tesco business that help to manage their human resources activity and operational process of business (Tesco, 2023). However, Tesco businesses needed to include appropriate employee satisfaction management that helps to manage their overall business performance and activity accurately. This business also needed to manage a global range of strategies in maintaining legitimacy within team members that help to manage the overall response of employees (Wood et al. 2019). It can be said that employees are dependent on stakeholders as the stakeholder lacks power with appropriate urgency and legitimacy attributes.
Tesco Broad
Tesco broad consists of chairman, chief, financial officer, chief executive, and a number of non-executive directors who are very powerful and extremely important for managing organisational activity. Gerry Murphy is the chairperson of this organisation who plays an important role in managing decisions of this organisation. On the other hand, Key Murphy and Imran Nawaz are the chief executive, and Chief Financial Officer who are also placed in an effective role in managing their power, and urgency (Tesco, 2023). For these members, it is seen that the legitimate Attribute for director and management board are lower where the power and urgency is higher that provide an impact in handling their decisions related to managing organisational decisions.
Suppliers
Business suppliers or Tesco businesses provide high quality material and ready products in managing this business reputation and handling overall sales activity. This business works with excellent quality sustainable and healthy products with thousands of suppliers and producers to meet their customer needs. These suppliers, and producers provide required products and also help to reduce food waste that help to manage sustainable innovation and managing business reputation in global range. On the other hand, suppliers can claim physical risk and material risk for contributing to the supply of different products such as clothing, food items and others (Strong et al. 2022). This is based on a legitimate claim within legal and social structure that are needed to consider for any certain or uncertain condition. Apart from this, suppliers have urgency as their claim for working conditions and wellbeing are critical. For the delay in response can cause immediate harm that also includes urgency. It can be said that suppliers are important stakeholders for Tesco business who have both urgency, power, and legitimacy in managing their claim.
Shareholders
Shareholders are a very important stakeholder of Tesco business, which business includes several shareholders such as “BlackRock, Inc.”, “Norges Bank”, “Fidelity International”, and “Schroders plc” (Tesco, 2023). It is seen that this business faced issues of Shareholder revolt over executive pay that are needed to maintain along with managing proper commitment with stakeholders. Shareholders have high material power as they can also provide influence on strategic options that are needed to maintain. Shareholders also have legitimacy and urgency as they are needed to take any risks which provide high importance to these stakeholders.
Customers
Customers are taking their purchasing decision for an organisation along with handling different factors such as product quality, sustainable initiatives, and others who are Tesco business are needed to maintain their customer satisfaction question. Customers are also an important stakeholders, where it is needed to manage ethical sustainability and cost of living crisis based issue considerations in maintaining overall customer motivation (Kahupi et al. 2021). Customer power for Tesco business is relatively low as this business has a good position and high quality product. The customer claim is urgent and considered as critical that is possible to manage along with managing appropriate importance. Further, the legitimacy is also low that provides an impact in maintaining overall business opportunities for Tesco plc.
3. Decision evaluation
Decision evaluation focuses upon gathering all essential information along with insights in informing the decision. This aids in the analysing potential results and risks for each option. In the case of Tesco, it has been identified that with the introduction of new shift leader roles along with realignment of managerial roles, the business has undertaken a difficult decision to reduce the number of lead as well as team managers in the large store. This in turn would certainly impact around 1,750 colleagues. This in turn has emerged as a potential management change signified by Tesco.
Stakeholder Evidence
Stakeholder evidence is identified as the individuals along with group members who might be impacted by the decisions along with consequences levied by the firm. Hamlet et al. (2021) stated that stakeholders of a business firm within a business firm aid in representing the interconnected relationship between all parties which are impacted by decisions laid by the organisation. The stakeholder analysis approach of Tesco aids in focusing upon initiating potential differences for customers, communities along with the planet. This in turn aids in guiding through the help of a strong governance framework. For instance, employees in Tesco are found to be the significant stakeholders who aids in managing the business operation. Around 345,0000 workers of Tesco are identified to manage their respective human resource activities along with the operational process of business (TESCO, 2023). In addition to this, the business has further updated their materiality analysis with inputs determined from the senior leaders along with insights from the customers as well as stakeholders. This in turn aids in validation of focus, making key decisions and ensuring production of a materiality matrix. In addition to this, based on the stakeholder evidence, it can aid in enhancement of traceability along with environmental sustainability thereby steering a potential competitive edge.
Organisational Evidence
Organisational Evidence is considered as the data as well as information which are generated from the operational activities. De Sousa Jabbour et al. (2019) inferred that a resilient organisation focuses upon the matched job demands with job resources which aids in creating a potential culture of connection. As per reports, over the last couple of years, Tesco has rolled out a new structure of management in around 350 of the smaller superstores (TESCO, 2023). This aids in potential reflection of the needs of the stores. Tesco has further focused upon incorporating decisions to extend the structure across all the large superstores along with extra stores. Tesco would further realign the managerial roles for the purpose of determining equal size along with complexities. This aids in focusing upon the overall store performance along with supporting the colleagues for serving customers and communities. In terms of introduction of new shift leader roles along with realignment of management roles, the business entity has incorporated a complex decision in reducing the number of leads along with team managers in the large stores. In addition to this, TESCO further initiates the option to move into shift leader vacancies with financial support and reduce any kind of redundancies.
Practitioner Evidence
Practitioner evidence is considered as a professional judgement which is identified on the basis of high expertise level. Based on the practitioner’s evidence, materiality helps in the identification and prioritisation of challenges which matters most to Tesco as well as the stakeholders. However, in terms of managerial changes, this can lead to decrease in productivity along with job satisfaction among the employees (Anwar and Abdullah, 2021). It often leads to challenges for the business firms such as Tesco. As per the reports, Jason Tarry, CEO of Tesco, claimed that the decisions taken regarding the management are certainly difficult but they are essential for ensuring that values are delivered and colleagues are being supported. In accordance with Ingram et al. (2019), change management aids in blending with the real life best practices and also focuses on the significance of employing certain sales practices. In the case of Tesco, the following managerial change would be helpful in engulfing excellent opportunities and making comprehensive analysis. This would also help in investigating strategic decisions and also evaluate the key areas of motivation as well as reward systems thereby covering critical areas of decision making and also facilitate proper process of learning as well as development.
Scientific Evidence
Scientific evidence focuses upon the evidence which serves either to support or to counter a theory as well as hypothesis acting as a representative of typical experiences. Van Looy (2021) stated that 17 out of 403 surveyed organisations are found to incorporate one new technology to initiate proper change management. Major forms of technologies which have been used were “cloud solutions (73.7 %), mobile technologies (65.5 %), social media (62.3 %), big data and business intelligence (50.9 %), IoT and smart devices (48.9 %).” This has been underpinned as the potential way to focus on the context of organisational decisions and also identify links to the innovation process.
Normative Decision Making Theory
Normative decision theory is being intended as an assistance to determine the optimum amount of time along with group input which is required for being committed to a decision. Packard and Clark (2020) assessed that normative decision theory is considered as a procedural fairness which aids in predicting effectiveness as well as evaluating the extent of team involvement. Application of Normative Decision Making Theory can offer prescriptive pragmatics which can ensure proper maximisation of the utility of options. It can also offer rational standards for the cultural attributes thereby yielding benefits of a well executed aspect.
4. Conclusion and Recommendation
This study has provided knowledge based on strategic decisions for Tesco organisation in maintaining their present business situation and stakeholder activity. This business focuses on value and quality based products which help to manage competition in the market by providing discounts. Inclusion of Salience stakeholder model helped to manage overview of stakeholders in a business such as the case of Tesco. Tesco businesses are needed to evaluate stakeholders, and their power with the basis of salience model that help to manage overall stakeholder management and generate long term relationship with stakeholders. Apart from this, organisational evidence and management of proper practice are also effective in managing business situations that are also needed to maintain in the developing decision making process of Tesco plc. It can be concluded that along with managing strategic decision and business operations it is possible to manage business growth and sustainability for Tesco plc that generates better customer satisfaction. Evidences accounted are a technique of empirical techniques which focuses upon acquiring knowledge which are being characterised through the development of insights. Normative Decision Making Theory can help the leaders within Tesco to evaluate and acknowledge the extent to which they can involve other team members to make decisions. It also focuses upon the aspect of developing proper relationships with the followers thereby leading to optimal outcome.
The Tesco business major relies on promotional offers to attract and return customers that regularly provides “buy one get one offers” and discounts in online sales which help to manage overall customer purchasing decisions. For loyal customers, This business also provides the facility of availing a club card that is a loyalty programme key part of their marketing strategy which can provide positive influence for store change based activity handling. Inclusion of technology and innovation along with utilisation of AI, machine learning, and others are effective in managing the promotional strategy which can further develop business action and customer purchasing process. It helps in managing understanding about their influence and provides valuable information to maintain business strategy.
Tesco plc business are needed to manage local support in managing appropriate planning that help to manage better customer reach and develop decision making processes related to business locations and strategy. Along with the development of store design change, It is possible to manage customer retention that generates effective ways in handling their loyalty and develop sustainability. On the other hand, this retail business has potential in managing their market position along with identifying issues that have been obtained on the basis of store changes for Tesco (Theguardian, 2023). Team innovation and managing collaboration are also effective in managing store activity which can help to maintain this present situation and generate more strategic decisions.
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