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Contemporary Strategic Issues

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Added on  2023-04-17

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This essay discusses the contemporary strategic issues faced by business organizations, using TESCO as a case study. It explores the challenges of globalization, intense competition, and the impact of recession on strategic administration. The essay also examines the ethical considerations and the importance of business theory, leadership, and management in addressing these issues.

Contemporary Strategic Issues

   Added on 2023-04-17

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Contemporary
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A strategic management of business is referred to be a foremost agenda of almost all
business organisations to deal within the pertaining challenges of today's globalised world. It is
where an active globalisation This in turn urges the organisations to accommodate themselves
within a dynamic operational structure that consequently benefit them to a great extent without
making a negative impact on their undertaken business practices (Grant, 2016). The present
essay has discoursed upon such challenging facet of today's business organisations that are
usually addressed as contemporary issues that duly influences their strategic administration of
work in a pessimistic manner. It is based upon a factual interpretation of a public sector
organisation named TESCO that is a famous retail based enterprise, headquartered in UK.
They have together dispersed their proposed goods and services all over the world and
have attained a global recognition. Such international orientation of business is however referred
to be a slight challenging consideration for the concerned officials of TESCO that has in turn
created several contemporary issues for an effective handling of their functional practices
(Rosenberg Hansen and Ferlie, 2016). It is also due to another most influential factor of
ferocious competition among the retail based organisations operating in UK. This has duly
necessitated the establishments like TESCO to opt for a strategic administration of their
resources. It indicates both personnel and manpower resources of TESCO along with their other
affiliated sources for a timely accomplishment of their targeted goals.
TESCO is however referred to be a leading player in the overall economic system of UK
with a leading contribution of their business in enhancing the profitability status of both their
domestic and international marketplaces. It is mainly due to a pivotal aim of their business where
they are chiefly intended to maintain a well-defined position in their market by duly fulfilling the
realistic needs and demands of their consumers. It however requires a prime identification of the
customer’s preferences that are presently prevailing in the market set in conformity to its
prevailing trends (Morris and et.al., 2015). Although, TESCO is largely impacted from an
existent occurrence of recession in the country that is in turn affecting their adopted practices by
together creating a pressurized state of work for them to contend in the market that comprises
with enormous number of rivals. It is where recession has clearly depicted a declined level of
profits for them where the customers are together apparent to make fewer spending of monetary
funds that in turn depicts a lessened state of sales by TESCO (Pugh and Duffy, 2013). This in
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turn postulates them to position themselves at a contending edge to successfully handle their
business operations by combating such challenging state.
It in turn enlightens the ideology of socialism for heading towards a prosperous business
with an affiliated concept of collective bargaining where the most contending constituent for
TESCO is their associated shareholders. It is where the solicitous bodies of the cited entity must
try to increase their profits at the rime of recession by completing the legal obligations towards
their shareholders (Weiss, 2014). This in turn propose them to align with a classical formulation
of Milton Friedman where increasing profits is referred to be a major consideration of almost all
sort of companies. It together corresponds to the leading business objective of the quoted firm
where they are operating with a rigorous intention of augmenting their marginal rates of profit to
meet the expectations of their shareholders.
However, to do so, TESCO is hereby referring to cut down the price of their offered
commodities to compete with some of their renowned rivals namely Sainsbury, Morrison's and
ASDA, etc. This is mainly due to a better composition of these contending bodies to combat the
state of recession with some improved policies to fetch a liable interest of the buyers in the
market as compared to TESCO (Weele and Raaij, 2014). It is thus to escalate the profit levels,
the concerned venture is more apparent to purchase inexpensive raw material from the suppliers
that is in turn reflecting several ethical concerns such as cheap labour policies, etc. this in turn
signifies an unethical practice where cheap labour are those who are creating goods by working
for long hours under fewer earnings.
It has therefore represented one of the most challenging phase for TESCO to undertake
certain ethical practices to serve their consumers by together considering about their other
stakeholders such as the employees and shareholders or investors, etc. (Vom Brocke and et. al.,
2014). Caux principle is thereby referred to be one such intellectual way to promptly handle all
their affiliated stakeholders with a balanced outlook to operate with them. For which, certain
ethical practices are required to be adopted by TESCO that in turn fulfils their such business
considerations where they are hereby required to do justice with that to such broad community of
young labours.
In the present scenario, major emphasis of firms is on running business operations in an
ethical manner as to stay in the market for longer span of time, it has become highly necessary.
The success of modern business is apparent however, as per today’s era of business, it is
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