Contemporary Issues in Strategic Management Assignment - Tesco
Added on 2020-01-28
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ContemporaryStrategicIssues
A strategic management of business refers to be the leading agenda of almost all businessorganisations to deal with theaffecting challenges due to the recent trend of globalisation. It iswhere an active globalisation in turn urges the organisations to accommodate themselves withina dynamic operational structure. This consequently benefit them to a great extent without makinga negative impact on their undertaken business practices (Grant, 2016). The present essay hasdiscoursed upon such challenging facet of today's business organisations that are usuallyaddressed as contemporary issues and duly influences their strategic administration of work in anegative manner. It is based upon a factual interpretation of a public sector organisation namedTESCO that is a famous retail based enterprise, headquartered in UK.They are also circulating their proposed goods and services all over the world and haveattained a global recognition through it. Such international orientation of business is howeverreferring to a slight challenging concern for the associatedbodies of TESCO that has in turncreated several contemporary issues constantlydeterring into their functional practices bymaking them unable to handle those effectively (Rosenberg Hansen and Ferlie, 2016). It is alsodue to another most influential factor of aggressive competition among retail based organisationsoperating in UK. This has duly necessitated the establishments like TESCO to opt for a strategicadministration of their resources. It indicates the involvement of both personnel and manpowerresources of TESCO along with their other affiliated sources for a timely accomplishment oftheir targeted goals.TESCO is however a leading player in the overall economic system of UK. It is mainlydue to a leading contribution of their enhanced profitability status backing up its domesticmarketplace, which is UK. Along with which, it has together benefited the economic status of itsinternational marketplaces as well. It is mainly due to a pivotal aim of their business where theyhave primarily intended to maintain a well-defined position in their marketplace by dulyfulfilling the realistic needs and demands of their consumers. It however requires a primeidentification of the customer’s preferences that are presently prevailing in the market and arebeing set in conformity to its prevalent trends (Morris and et.al., 2015). Although, TESCO islargely impacted from a present state of recession in the country which is in turn affecting theiradopted practices. It has together created a pressurized state of work on them to contend in themarket that comprises with enormous number of rivals. It is where recession has clearly resultedin a declined level of profits for them where the customers are together apparent to make a little2
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 successfullyhandle their business operations by combating such challenging situation.It in turn enlightens the ideology of socialism for heading towards a prosperous businesswith an affiliated concept of collective bargaining where the most challengingfactor for TESCOis to collaborate with their associated shareholders. It is where the concerned bodies of the citedentity must try to increase their profits at the time of recession by complying to legal obligationstowards their shareholders (Weiss, 2014). This in turn suggest them to align with a classicalinvention of Milton Friedman where enhancing profits refers to a major consideration of almostall sort of companies. It together corresponds to the leading business objective of the quoted firmwhere they are operating with a rigidintent of augmenting their marginal rates of profit to meetthe expectations of their shareholders.However, to do so, TESCO is hereby referring to cut down the price of their offeredcommodities to compete with some of their renowned rivals named Sainsbury, Morrison's andASDA, etc. This is mainly due to a better composition of these contending bodies to combat thestate of recession with some improved policies to fetch a liable interest of buyers in the market ascompared to TESCO (Weele and Raaij, 2014). It escalates profit levels by which the concernedventure is more apparent to purchase inexpensive raw material from suppliers that in turn hasreflected several ethical concerns such as cheap labour policies. This in turn signifies anunethical practice where cheap labours are those who are creating goods by working for longhours under fewer earnings. It has therefore represented one of the most challenging stage for TESCO to undertakecertain ethical practices to serve their consumers by together considering about their otherstakeholders 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 handlingall their affiliated stakeholders with a balanced outlook to operate with them. With a similarconsideration to it, certain ethical practices are required to be adopted by TESCO that in turnfulfils their business concerns where they are hereby required to do justice with a broadcommunity of young labours.In the present scenario, major emphasis of firms is on running business operations in anethical manner as to stay in the market for longer span of time, it has become highly necessary.3
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