Business Strategy & Analysis

This assignment delves into the realm of contemporary business strategy, examining key concepts, theories, and their practical applications. Students are required to analyze a range of strategic management topics, including psychological foundations of dynamic capabilities, international politics in business, ecosystem services, business models, public sector strategies, talent management, marketing strategy, business process management, purchasing and supply chain management, and business ethics. The assignment necessitates critical thinking, application of theoretical frameworks, and a clear understanding of contemporary business challenges.

Contemporary
Strategic Issues

A strategic management of business refers to be the leading agenda of almost all business
organisations to deal with the affecting challenges due to the recent trend of globalisation. It is
where an active globalisation in turn urges the organisations to accommodate themselves within
a dynamic operational structure. This 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 and duly influences their strategic administration of work in a
negative 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 are also circulating their proposed goods and services all over the world and have
attained a global recognition through it. Such international orientation of business is however
referring to a slight challenging concern for the associated bodies of TESCO that has in turn
created several contemporary issues constantly deterring into their functional practices by
making them unable to handle those effectively (Rosenberg Hansen and Ferlie, 2016). It is also
due to another most influential factor of aggressive competition among 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 the involvement of both personnel and manpower
resources of TESCO along with their other affiliated sources for a timely accomplishment of
their targeted goals.
TESCO is however a leading player in the overall economic system of UK. It is mainly
due to a leading contribution of their enhanced profitability status backing up its domestic
marketplace, which is UK. Along with which, it has together benefited the economic status of its
international marketplaces as well. It is mainly due to a pivotal aim of their business where they
have primarily intended to maintain a well-defined position in their marketplace 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 and are
being set in conformity to its prevalent trends (Morris and et.al., 2015). Although, TESCO is
largely impacted from a present state of recession in the country which is in turn affecting their
adopted practices. It has together created a pressurized state of work on them to contend in the
market that comprises with enormous number of rivals. It is where recession has clearly resulted
in a declined level of profits for them where the customers are together apparent to make a little
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spending of monetary funds that resulted in lessening the sales by TESCO (Pugh and Duffy,
2013). This has necessitated them to position themselves at a contending edge to successfully
handle their business operations by combating such challenging situation.
It in turn enlightens the ideology of socialism for heading towards a prosperous business
with an affiliated concept of collective bargaining where the most challenging factor for TESCO
is to collaborate with their associated shareholders. It is where the concerned bodies of the cited
entity must try to increase their profits at the time of recession by complying to legal obligations
towards their shareholders (Weiss, 2014). This in turn suggest them to align with a classical
invention of Milton Friedman where enhancing profits refers to 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 rigid intent 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 named 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 buyers in the market as
compared to TESCO (Weele and Raaij, 2014). It escalates profit levels by which the concerned
venture is more apparent to purchase inexpensive raw material from suppliers that in turn has
reflected several ethical concerns such as cheap labour policies. This in turn signifies an
unethical practice where cheap labours are those who are creating goods by working for long
hours under fewer earnings.
It has therefore represented one of the most challenging stage 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 (Vom Brocke and et. al.,
2014). Caux principle is thereby referred to be one such intellectual way for promptly handling
all their affiliated stakeholders with a balanced outlook to operate with them. With a similar
consideration to it, certain ethical practices are required to be adopted by TESCO that in turn
fulfils their business concerns where they are hereby required to do justice with a 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.
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The success of modern business is apparent however, as per today’s era of business, it is
significant to perform operations in such a way that society’s interest can be effectually fulfilled.
Now-a-days, it is vital to concern about the society before launching any product or service in
the market and according to their actual needs and expectations, all efforts should be made.
Tesco is following business ethics to a high extent as well as fulfilling the corporate social
responsibilities so as to keep all stakeholders satisfied and loyal towards the firm (Svanberg,
2013). Being in the retail sector, to survive with sustainability for longer span of time, it is
important for Tesco to comply with business ethics and perform CSR activities effectually in the
market.
In terms of business theory adopted by Tesco, company wants a highly motivated
workforce who can lead the firm to attain higher growth and success in the market. Tesco at
present is the market leader in retail sector of UK with earning profits around £3.4 billion which
is making it the largest British retailer across the world. Currently, the firm is having the
workforce of 468,000 employees working in the organisation from worldwide. Business theory
of Tesco is to grow by making the workforce highly motivated, flexible and well-trained. For
having a skilled and knowledgeable workforce, Tesco organises various training and
development sessions so that the desired outcomes can be gained out of them (Jervis and Art,
2015). Apart from that, at the time of recruitment and selection, company gives due
consideration on selecting right person at the right position so as to run operations in a systematic
and effectual manner. Main aim of business theory of Tesco is to satisfy the customers in such a
way that they would stay with business in the long run and provide their loyalty and trust to
company.
On the other hand, ethical theory says about the way in which Tesco is carrying out all its
operations in the market and keeping stakeholders satisfied in the long run. Main consideration
of firm with respect to run business ethically is to provide products and services with high
quality and at reasonable cost. Company is charging a fair price from customers for the purpose
of retaining them for longer span of time. Also, firm is communicating only fair and transparent
information regarding business and not making any effort for misleading the customers. Apart
from that, it is offering high value to the target people in return of what they are spending while
purchasing the products of Tesco (Pugh and Duffy, 2013). In addition to this, organisation is
offering superior quality products to the end users and not cheating on the basis of worth
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provided with respect to the goods and services of company. In this way, Tesco is following its
ethical theory and keeping the stakeholders highly satisfied.
Moreover, as per social theory followed by the firm, it can be said that company is
performing various corporate social responsibilities with an aim to keep the society satisfied with
business performed by Tesco. It helps in making the firm able to make a strong and effective
position in the market that is providing a competitive edge over others in the retail sector of UK
(Varadarajan, 2010). Apart from that, CSR activities performed by Tesco are for all its
stakeholders whether they are employees or customers as they want to satisfy them all. Company
understands the fact that to be in the competition with gaining sustainability, Tesco requires to
perform CSR activities in a effectual manner that would make the stakeholders feel satisfied and
remain in the competition in the long run (Baylis, Wirtz and Gray, 2016). This is the reason; for
this firm, welfare of society is one of the major objectives.
In Tesco, leadership plays a significant role to make it successful as being the large
organisation, it is important for the firm to have effective leaders so that operation and other
functions can be effectually managed. Along with that, it is also significant to have proper
business management so as to make the firm successful by attaining all targets on time and in an
efficient manner. However, as per the views of Hodgkinson and Healey, (2011) leadership can
only be called as effective when the leaders and managers are honest as well as have the skill of
integrity. According to him, leaders can be great only when they are able to build the
organisational culture in which there is honesty as well as integrity. They must be able to make
employees understand the value of same and perform all activities with the help of these only.
The authors believe that without having honesty and integrity as fundamental cornerstones of an
organization, to become successful in the long run can only be possible when these qualities will
be there in the leader.
On the contrary, according to Sparrow, Scullion and Tarique, (2014) courage and
communication skills to be in the leaders in Tesco are more important being in the retail sector.
As in the retail industry, people require to communicate with the customers face to face, it is
significant for employees to have strong and effective communication skills. In addition to this,
if anything goes wrong then the leader must be able to rectify the same with courage. Also, the
most important skill which is required in the leader of Tesco is team building and company
assigns many projects that have to be completed by a team within stipulated time period. So, it
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can be said that without having team working skills, employees cannot perform their work in the
teams for which leaders need to be a team leader. On the other hand, it can be critically analysed
in accordance with Ferlie and Ongaro, (2015) that along with leadership, business management
is equally important for Tesco as if managers and leaders would not be able to effectually
manage the business, attaining results in the desired way and within specific duration of time
would not be possible. For leading a business, first it has to be effectually managed as without
proper management, achieving the results is not possible for Tesco (6 Fundamentals of Business
Management, 2016). It is highly important to delegate the work among employees in a
systematic and equal manner so that everyone would be having the work as per his/her area of
interest and the capability to perform.
Therefore, it can be concluded that Tesco is facing some contemporary issues like
handling the workforce as company is operating in different nations and thus, there is diversity
among employees. So, for the same, company needs to keep the workforce highly motivated
through effective leadership and management. Apart from that, to stay in the competition and
gain a competitive edge over others, it is following the business, ethical and social theory in such
a way that firm is attaining all its set goals and objectives on time. This is the reason; company is
having a large customer base with high goodwill in the market (Miara and et.al., 2013). Tesco is
keeping all its stakeholders highly satisfied by which it is gaining higher profits as well as the
market share in the retail sector of UK. Thus, company is maintaining a strong and leading
position in the market with gaining sustainability.
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Svanberg, J., 2013. Business Ethics and Corporate Social Responsibility. [PDF]. Available
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