BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE
1. Introduction
Tesco is one of the topmost international groceries that have been ranked 2nd in the UK for revenue and 3rd for its profit. Tesco has emerged with a smart strategy in PESTLE analysis to sustain itself in this competitive market.
Tesco is supposed to observe and respond to incorrigible impacts that have included six factors such as legal, political, environmental, socio-cultural, economic, and technological.
The application of the club card strategy is beneficial for the company to be viable in a global environment. The aim of this study is to forecast the strategic management model of Tesco by elaborating on all the pros and cons related to its business model.
2. Main Body
2.1 Strategic decisions of TESCO
Tesco has been influenced to a great extent by PESTLE analysis that has included political, legal, environmental, socio-cultural, economic, and technological factors of a particular country.
These factors have helped Tesco to secure its market sustainability with greater success in domestic as well as international competitive markets. Tesco has been provided with a friendly and motivating business atmosphere in these countries; therefore, the political environment has played one of the most vital roles (Awadari and Kanwal, 2019).http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE Consumer requirements, cost, and value of the proposed products have influenced the economic factor.
Based on the previous cases of this heritage retail company in the UK such as Tesco, it has greatly expanded into the area of the international business market. This necessary consequence is the potential to measure through the great involvement of sustainable strategic management in the core business operation of Tesco.
According to Finlay (2001), the previous case study of this company can analyze that, Tesco has potentially impacted the factor of several product purchasing to a reliable extent. Besides that, the entire globe has suffered from a huge rate of economic decline.
In order to the context of previous analyses, it can be identified that the price level of the UK is moderately reduced in the year 2010 by nearly about 2.2%. Tesco has suffered by reduced sales numbers of their manufacturing goods and products in the UK (Doherty & Horne, 2013).http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE
An increased population of the UK, especially in towns, big cities and urban areas has provided Tesco with a large market. In terms of conserving the environment, Tesco has focussed in working with recyclable and reusable scrap products (Solutions and Belt, 2017).http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE
Figure 1: Tesco’s share price and business advancement
(Source: Tesco.com, 2020)
Tesco has obeyed the business law of the UK regarding food and beverages safety law, as mentioned in Health and Safety Law Act 1974 (Utami, 2018).http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE
Tesco has developed its technological advancements by implementing Artificial intelligence, and blockchain to ensure the guarantee the quality of their food and beverage items.
2.2 Role of organizational stakeholders, structures and processes of TESCO
The organizational structure of Tesco has reflected its large as well as highly hierarchical structure. Tesco has been recognized for its cost leadership management that has focussed on its accessibility, span, and consumer service (Woohyoung, Hyun, and Hwang, 2020). http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE
Low economic performance has arisen due to several scandals along with retail overload. As per Jonah (2018), the supply network has demanded a payout of GBP 1 million from L’Orial, and that has caused reduced business income by Tesco.
Figure 2: Organizational structure of Tesco
(Source: Tesco.com, 2020)
Tesco aims to make revenue for investment along with the trade of quality products. It has products such as food, toys, gift items, garden items, furniture, jewelry, clothes, electronic items, and other most required items by the customers.
Tesco has maintained a good relationship with its supplier in quality, along with price scaleJonah (2018). http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLETesco has upheld projects on food processing in this organization Providing a healthy atmosphere and protection.
Contingency Management Theory
Figure 3: Contingency Management Theory
(Source: Doherty & Horne, 2013)
This specific management theory is act as a beneficial compound to greatly explore the potential areas that are highly essential to stabilize the empire of strategic management.
The retail organization is enough motivated through getting several consequences of the theoretical knowledge that is extracted from this choosing theory. As suggested by Mintzberg & Quinn (2003), the organization of Tesco is potentially using the remarkable approach as it greatly suggests the reliable and appropriate style of management to operate the type of business operation.
Besides that, the manager of strategic management of Tesco can moderately identify the critical conditions regarding a task as well as fulfill any area of requirement in the context of management. In order to use this concept of this remarkable theory, the entire group of strategic management can make a reliable decision in a critical situation.
2.3 Principles of strategic management of TESCO
Tesco has used the Total Quality Management technique to ensure the quality of goods and services they have provided to their customers.
Upgradation of leadership strategy, cross-training, and brainstorming of the employees, and upgradation of supplier standards have helped Tesco in the execution of TQM techniques (Xinyun, 2018). http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLETQM techniques have been used for correct and error-free services to meet their customer’s ultimate satisfaction level.
Figure 4: TQM
(Source: Tesco.com, 2020)
Based on the recent approach of the strategic management of Tesco, it can be analyzed that, the Club card strategy is introduced by the management of Tesco. As opined by Haberberg & Rieple (2001), it acts as a great as well as a sustainable strategy for retain their valuable consumers all over the globe.
Besides that, Tesco is recently retaining its consumer base by meeting the changing consumer demand at a very low price.
Therefore, this great strategic decision is played through the entire group of strategic management to deliver their manufacturing goods and services through experimental consumer service (Tesco.com, 2020).http://BU7405 STRATEGIC MANAGEMENT ASSIGNMENT SAMPLE It can help for promoting the ultimate brand image of Tesco to own the effective level of brand efficiency.
The primary goal of Tesco is the ultimate satisfaction of its consumers. Tesco has held a series of quality checks since its main intention is to provide its consumers with defect-free quality products.
From manufacturing to product delivery in different outlets, Tesco has continuously monitored the entire supply chain to ensure the customer’s value for money.
3. Conclusions
It can be concluded from this study that Tesco is a global retailer that follows better strategic business aspects to increase its business reputation as well as revenue in a competitive market.
This company follows TQM (Total Quality Management) strategy to be a market leader among all the UK-based grocery stores. The organizational structure of Tesco is suitable to develop business prospects in a true form, and future stability of business can be possible due to this.
Relationships with all the stakeholders are proper for Tesco, and this is responsible for gaining competitive advantages without any error.
References
Alzoubi, A. (2020). CORPORATE AGGRESSION: A COMPREHENSIVE REVIEW OF PRICE WAR. European Journal of Business and Strategic Management, 5(2), 50-63. Retrieved from: https://iprjb.org/journals/index.php/EJBSM/article/download/1155/1275
Awadari, A. C., & Kanwal, S. (2019). Employee participation in organizational change: A case of Tesco PLC. International Journal of Financial, Accounting, and Management, 1(2), 91-99. Retrieved from: https://pdfs.semanticscholar.org/364d/9816796406a5aab798b7155ed0be5dd2d680.pdf
Doherty, T., & Horne, T. (2013). Managing Public Services: Implementing Changes – a Thoughtful Approach to the practice of management. (2nd ed.). London, UK: Routledge. Retrieved from: https://www.taylorfrancis.com/books/mono/10.4324/9781315887432/managing-public-services-implementing-changes-tony-doherty-terry-horne-simon-wootton
Finlay, P. (2000). Strategic Management: an Introduction to Business and Corporate Strategy. London, UK: FT Prentice Hall. Retrieved from: http://www.aiu.edu/applications/DocumentLibraryManager/upload/Leadership%20and%20Strategic%20Management_Gono.pdf
Haberberg, A., & Rieple, A. (2001). The Strategic Management of Organisations. London, UK: FT Prentice Hall. Retrieved from: https://westminsterresearch.westminster.ac.uk/item/94130/the-strategic-management-of-organisations
Jonah, U. I. (2018). The Influence of Transaction Costs on the Business Performances of Tesco Supermarket. International Journal of Business and Social Science, 9(5). Retrieved from: http://ijbssnet.com/journals/Vol_9_No_5_May_2018/9.pdf
Mintzberg, H., & Quinn, J. B. (2003). The Strategy Process. (4th ed.). Harlow, UK: Pearson Education. Retrieved from: https://www.academia.edu/download/44947588/Manville_et_al_2012_Critical_success_factors_for_LeanSixSigma.pdf
Solutions, I., & Belt, G. B. (2017). THE IMPACT OF STRATEGIC MANAGEMENT AND STRATEGIC THINKING APPROACHES ON BUSINESS PERFORMANCE OF COMPANIES OPERATING IN THE RETAIL INDUSTRY. Retrieved from: http://media.epmj.org/2017/12/Loncar-85-98.pdf
Utami, M. W. (2018). THE ROLE OF NATIONAL CULTURE IN THE EMERGENCE OF FINANCIAL STATEMENT FRAUD: COMPARISON OF JAPANESE AND BRITISH CULTURE IN THE CASES OF OLYMPUS AND TESCO. Retrieved from: https://dspace.uii.ac.id/bitstream/handle/123456789/10063/THE%20ROLE%20OF%20NATIONAL%20CULTURE%20IN%20THE%20EMERGENCE%20OF%20FINANCIAL%20STATEMENT%20FRAUD%20COMPARISON%20OF%20JAPANESE%20AND%20BRITISH%20CULT-91LRAIRV.pdf?sequence=1
Woohyoung, K., Hyun, K., & Hwang, J. (2020). Transnational Corporation’s Failure in China: Focus on Tesco. Sustainability, 12(17), 7170. Retrieved from: https://www.mdpi.com/2071-1050/12/17/7170/pdf
Xinyun, T. (2018, December). A Multimodal Critical Analysis in Business Discourse: the Case of the Corporate Annual Report of Tesco. In 5th International Conference on Education, Language, Art and Inter-cultural Communication (ICELAIC 2018). Atlantis Press. Retrieved from: https://download.atlantis-press.com/article/55910349.pdf
Website
Tesco.com, 2020. About, Retrieved from: www.tesco.com. [Retrieved on: 10.11.2020]
