Business Strategies for Competitive Advantage
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This assignment examines the business strategies used by a prominent UK retail company, analyzing how they effectively compete within the market. The report delves into the company's operational plans and their impact on profitability and success. It concludes by highlighting the company's position as a major player in both domestic and international retail sectors.
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 Kind of organisation..............................................................................................................1
1.2 Different structures of the companies...................................................................................1
1.3 Impact of local, national, global economic environment on enterprises performance.........2
TASK2.............................................................................................................................................3
2.1 Importance of accounting with in an organisation................................................................3
5.1 Various function of human resources department................................................................3
5.2 Key feature of employees legislation....................................................................................4
TASK3.............................................................................................................................................4
3.1 Profits and loss account of TESCO.......................................................................................4
TASK4.............................................................................................................................................5
4.1 Others as well as own role in group......................................................................................5
4.2 Team development plan........................................................................................................5
TASK5.............................................................................................................................................6
6.1 Effect of buyers services of enterprises success...................................................................6
6.2 Benefits of customer's services ...........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 Kind of organisation..............................................................................................................1
1.2 Different structures of the companies...................................................................................1
1.3 Impact of local, national, global economic environment on enterprises performance.........2
TASK2.............................................................................................................................................3
2.1 Importance of accounting with in an organisation................................................................3
5.1 Various function of human resources department................................................................3
5.2 Key feature of employees legislation....................................................................................4
TASK3.............................................................................................................................................4
3.1 Profits and loss account of TESCO.......................................................................................4
TASK4.............................................................................................................................................5
4.1 Others as well as own role in group......................................................................................5
4.2 Team development plan........................................................................................................5
TASK5.............................................................................................................................................6
6.1 Effect of buyers services of enterprises success...................................................................6
6.2 Benefits of customer's services ...........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION
Business operation is a one of the of critical process with in an organisation. In United
Kingdom competition in retail sector is very high so that each one firm has develop strategies to
compete competitors at market. In this report, TESCO are choose to know the impact of
operations activities on firm performance, productivity. In this, approx 476000 employees have
worked with almost 6553 store in the year of 2017 (Adjei, and et. al., 2014). TESCO has
established in 1919 by Jack Cohen at London, England. In this assignment covers kind of
business, different structure of several organisation and impact of local, national, global
economic environment on performance.
TASK1
1.1 Kind of organisation
Current business environment is highly competitive in nature so that each and every
organisation has want to make their own vision as well as mission in order to run enterprises
effectively. On this basis of this, business are divided into two type private and public. In private
organisation, the main objectives of running operation is a profits. But in public company the
main aim is full fill needs and wants to the society in order to provide high growth opportunity in
nation economy. One of the major difference between both are government are retain share of
public enterprises to save right of common people, but not the same for private institute (Amit
and Zott, 2015). On the basis of size system are divided into four type micro, small, medium,
large. This show which organisation has how many market share as compare to their competitors
in same industry.
1.2 Different structures of the companies
Structures of company mean how many people are working here and level of operational
activities. In current market environment of UK, there are five different kind of firm structures
are explain as below:
General partnership: Partnership means two or more people are work together and
achieve common aim in an effective manner in given time frame. United Kingdom government
allows minimum two as well as maximum fifty partners to make partnership firm. In this type of
company role are responsibilities are divided in equal proportion.
Business operation is a one of the of critical process with in an organisation. In United
Kingdom competition in retail sector is very high so that each one firm has develop strategies to
compete competitors at market. In this report, TESCO are choose to know the impact of
operations activities on firm performance, productivity. In this, approx 476000 employees have
worked with almost 6553 store in the year of 2017 (Adjei, and et. al., 2014). TESCO has
established in 1919 by Jack Cohen at London, England. In this assignment covers kind of
business, different structure of several organisation and impact of local, national, global
economic environment on performance.
TASK1
1.1 Kind of organisation
Current business environment is highly competitive in nature so that each and every
organisation has want to make their own vision as well as mission in order to run enterprises
effectively. On this basis of this, business are divided into two type private and public. In private
organisation, the main objectives of running operation is a profits. But in public company the
main aim is full fill needs and wants to the society in order to provide high growth opportunity in
nation economy. One of the major difference between both are government are retain share of
public enterprises to save right of common people, but not the same for private institute (Amit
and Zott, 2015). On the basis of size system are divided into four type micro, small, medium,
large. This show which organisation has how many market share as compare to their competitors
in same industry.
1.2 Different structures of the companies
Structures of company mean how many people are working here and level of operational
activities. In current market environment of UK, there are five different kind of firm structures
are explain as below:
General partnership: Partnership means two or more people are work together and
achieve common aim in an effective manner in given time frame. United Kingdom government
allows minimum two as well as maximum fifty partners to make partnership firm. In this type of
company role are responsibilities are divided in equal proportion.
Limited partnership: In this, partners are share their liability. It is also called limited
liabilities organisation. Management of firm has make partnership deed and mention all role,
duty of each partners with in work place. In this liability, functions are distribute on agreed ratio
or by proportion of investment or in the business operation.
Sole proprietorship: In this type of enterprises, whole business activities are run by single
person and they are fully responsible for profits as well as loss. Mostly, this type of institute
operate at small level in order to achieve their goals, aim effectively in limited period of time.
Non profits Organisation: The vision of this kid of firm has enhance overall social living
Stansted as well as provide equal opportunity to each one (Doppelt, 2017). They are gather fund
form various institute in order to provide facilitie4s like food, clothes, house, drinking water,
education etc. to poor person those have can not able to purchase their necessary product which
help to survive life effectively.
Corporations: It mean one organisation run several subsidiary companies to operate
business activities appropriately. TESCO has also came under this section and running work at
global level.
1.3 Impact of local, national, global economic environment on enterprises performance
Economic environment has change in different location and it create positive as well as
negative impact on organisation performance in long period of time. It is management
responsibilities to develop strategies which help to gain competitive advantage at various nation.
Impact of local, national, international on institute are explain as follows:
Local: In this, social cultural environment of city or town may affect firm performance in two
type which are explain as follow:
Positive: Management are consider some economical factor like per person earning
capacity, growth, disposable income etc. through this they are able to produce product
accordingly in order to gain sustainability at market place (Bernstein, 2015).
Negative: Several micro as well as small institute are already work there and they have
strong personal relationship with clients that affect firm sales volume as well as
profitability.
National: Overall country economy has create both form of effect positive, negative on
enterprises presentation that are explain below:
liabilities organisation. Management of firm has make partnership deed and mention all role,
duty of each partners with in work place. In this liability, functions are distribute on agreed ratio
or by proportion of investment or in the business operation.
Sole proprietorship: In this type of enterprises, whole business activities are run by single
person and they are fully responsible for profits as well as loss. Mostly, this type of institute
operate at small level in order to achieve their goals, aim effectively in limited period of time.
Non profits Organisation: The vision of this kid of firm has enhance overall social living
Stansted as well as provide equal opportunity to each one (Doppelt, 2017). They are gather fund
form various institute in order to provide facilitie4s like food, clothes, house, drinking water,
education etc. to poor person those have can not able to purchase their necessary product which
help to survive life effectively.
Corporations: It mean one organisation run several subsidiary companies to operate
business activities appropriately. TESCO has also came under this section and running work at
global level.
1.3 Impact of local, national, global economic environment on enterprises performance
Economic environment has change in different location and it create positive as well as
negative impact on organisation performance in long period of time. It is management
responsibilities to develop strategies which help to gain competitive advantage at various nation.
Impact of local, national, international on institute are explain as follows:
Local: In this, social cultural environment of city or town may affect firm performance in two
type which are explain as follow:
Positive: Management are consider some economical factor like per person earning
capacity, growth, disposable income etc. through this they are able to produce product
accordingly in order to gain sustainability at market place (Bernstein, 2015).
Negative: Several micro as well as small institute are already work there and they have
strong personal relationship with clients that affect firm sales volume as well as
profitability.
National: Overall country economy has create both form of effect positive, negative on
enterprises presentation that are explain below:
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Positive: High competition has create lot of opportunity for organisation, in UK retail
sector have highly competitive in nature so that TESCO has sell their product at
economic price all other competitors are do the same thus help to achieve goals and
objectives by their core competences at market.
Negative: Low economic growth rate, less employment opportunity, low disposable
income etc. has create negative impact on institution execution of task in long period of
time.
Global: At international level, most of the company has conducting research to know different
nation client's needs, wants and accordingly develop product to sell in several location.
Positive: Large number of customers are available at market place and firm has
opportunity to gain higher profitability, sustainability and market share.
Negative: Home company has receive some benefits form their government like taxation,
investment etc. which create negative impact on global enterprises presentation
(Dunning, 2014).
TASK2
2.1 Importance of accounting with in an organisation
Accounting is an importance department within firm which help management to take
decision in a appropriate manner. It is accountant responsibility to manage all cash inflow,
outflow information and prepare financial statements that includes profits & loss account,
balance sheet, training report etc. Some other benefits of accounting are provide several ratio like
equity, turnover, current etc.; prepare budget, statutory complaints, forecasting of sales, profits,
production, loss, expenses and many more.
5.1 Various function of human resources department
Human resources department has play vital role with in the company which help to
enhance productivity of all staff members. Through this, enterprises are able to achieve aim,
mission effectively in given time frame (Gassmann, Frankenberger and Csik, 2014). Major
function of HR manager are detail as follows:
Training and development program: Human resources manager are analysis needs,
want of all staff members and accordingly develop training events in order to enhance skills,
knowledge which improve productivity as well as performance of employees.
sector have highly competitive in nature so that TESCO has sell their product at
economic price all other competitors are do the same thus help to achieve goals and
objectives by their core competences at market.
Negative: Low economic growth rate, less employment opportunity, low disposable
income etc. has create negative impact on institution execution of task in long period of
time.
Global: At international level, most of the company has conducting research to know different
nation client's needs, wants and accordingly develop product to sell in several location.
Positive: Large number of customers are available at market place and firm has
opportunity to gain higher profitability, sustainability and market share.
Negative: Home company has receive some benefits form their government like taxation,
investment etc. which create negative impact on global enterprises presentation
(Dunning, 2014).
TASK2
2.1 Importance of accounting with in an organisation
Accounting is an importance department within firm which help management to take
decision in a appropriate manner. It is accountant responsibility to manage all cash inflow,
outflow information and prepare financial statements that includes profits & loss account,
balance sheet, training report etc. Some other benefits of accounting are provide several ratio like
equity, turnover, current etc.; prepare budget, statutory complaints, forecasting of sales, profits,
production, loss, expenses and many more.
5.1 Various function of human resources department
Human resources department has play vital role with in the company which help to
enhance productivity of all staff members. Through this, enterprises are able to achieve aim,
mission effectively in given time frame (Gassmann, Frankenberger and Csik, 2014). Major
function of HR manager are detail as follows:
Training and development program: Human resources manager are analysis needs,
want of all staff members and accordingly develop training events in order to enhance skills,
knowledge which improve productivity as well as performance of employees.
Recruitment and selection: Recruitment and selection is a main work of HR executive
of TESCO. Two kind of hiring sources internal or external are available at market. Human
resources assistant of select internal recruitment method, in this they are use promotion, transfer,
old employees strategies to hire workers.
Appraisal: They ask all staff members to full fill feedback form related to individual
performance. That help to provide compensation, benefits, higher salary, promotion, transfer etc.
facilities to higher presentation workers with in an organisation.
5.2 Key feature of employees legislation
Government has make staff members legislation and save their right at working place. It
is a management responsibilities to implementing all laws at firm in order to enhance motivation,
productivity, performance, self confidence etc. of individuals. Some important legislation are:
Discrimination rule: management of the company can not create discrimination on the
basis of colour, age, education, gender and many more (Omar, Leach and March, 2014).
Equality act: It is a administration responsibility to provide equal right like promotion,
salary, employment opportunity etc. to all staff members.
Minimum wages rule: Government of UK has make regulation in this they mention that
all firms has provide some minimum salary amount to their all employees in return of their work.
It is a individuals basic right and each one enterprises including TESCO has execute in rule in
their firm.
TASK3
3.1 Profits and loss account of TESCO
P&L account of TESCO has explain as follow:
Profits and loss account Year 2017
Total Revenue 55295000
Cost of Revenue 52932000
Gross Profit 2363000
Selling General and Administrative 1190000
Total Operating Expenses 54122000
Operating Income or Loss 1173000
Income from Continuing Operations
of TESCO. Two kind of hiring sources internal or external are available at market. Human
resources assistant of select internal recruitment method, in this they are use promotion, transfer,
old employees strategies to hire workers.
Appraisal: They ask all staff members to full fill feedback form related to individual
performance. That help to provide compensation, benefits, higher salary, promotion, transfer etc.
facilities to higher presentation workers with in an organisation.
5.2 Key feature of employees legislation
Government has make staff members legislation and save their right at working place. It
is a management responsibilities to implementing all laws at firm in order to enhance motivation,
productivity, performance, self confidence etc. of individuals. Some important legislation are:
Discrimination rule: management of the company can not create discrimination on the
basis of colour, age, education, gender and many more (Omar, Leach and March, 2014).
Equality act: It is a administration responsibility to provide equal right like promotion,
salary, employment opportunity etc. to all staff members.
Minimum wages rule: Government of UK has make regulation in this they mention that
all firms has provide some minimum salary amount to their all employees in return of their work.
It is a individuals basic right and each one enterprises including TESCO has execute in rule in
their firm.
TASK3
3.1 Profits and loss account of TESCO
P&L account of TESCO has explain as follow:
Profits and loss account Year 2017
Total Revenue 55295000
Cost of Revenue 52932000
Gross Profit 2363000
Selling General and Administrative 1190000
Total Operating Expenses 54122000
Operating Income or Loss 1173000
Income from Continuing Operations
Total Other Income/Expenses Net -1028000
Earnings Before Interest and Taxes 1173000
Interest Expense -513000
Income Before Tax 145000
Income Tax Expense 87000
Minority Interest -24000
Net Income From Continuing Ops 58000
Non-recurring Events
Discontinued Operations -112000
Net Income
Net Income -40000
Net Income Applicable To Common Shares -40000
Interpretation: TESCO has earn net gross profit of 2363000 £ with net expenses of – 1028000,
it shows organisation has earn double amount as compare to their cost. In the last they earn
negative income -40000 £.
TASK4
4.1 Others as well as own role in group
With in a team, various type of individuals are work together in order to achieve common
goals in limited period of time. The main objectives group members are follow larders direction,
share all relevant information with other group members, effort to win target and many more. As
a team leaders my role and responsibilities toward group is more then other some are controlling
all employees, manage them, motivation, increase learning, reduce conflict, share experience etc.
All these activities has help to workers to completing task in an effective manner.
4.2 Team development plan
Human resources manager organising training to improve employees skills, knowledges
which help to achieve goals and objectives in given time frame. For this, HR executive are know
workers role as well as responsibilities and accordingly make plan (Palattella and et. al., 2016).
There are several step to develop team are explain as follows:
Earnings Before Interest and Taxes 1173000
Interest Expense -513000
Income Before Tax 145000
Income Tax Expense 87000
Minority Interest -24000
Net Income From Continuing Ops 58000
Non-recurring Events
Discontinued Operations -112000
Net Income
Net Income -40000
Net Income Applicable To Common Shares -40000
Interpretation: TESCO has earn net gross profit of 2363000 £ with net expenses of – 1028000,
it shows organisation has earn double amount as compare to their cost. In the last they earn
negative income -40000 £.
TASK4
4.1 Others as well as own role in group
With in a team, various type of individuals are work together in order to achieve common
goals in limited period of time. The main objectives group members are follow larders direction,
share all relevant information with other group members, effort to win target and many more. As
a team leaders my role and responsibilities toward group is more then other some are controlling
all employees, manage them, motivation, increase learning, reduce conflict, share experience etc.
All these activities has help to workers to completing task in an effective manner.
4.2 Team development plan
Human resources manager organising training to improve employees skills, knowledges
which help to achieve goals and objectives in given time frame. For this, HR executive are know
workers role as well as responsibilities and accordingly make plan (Palattella and et. al., 2016).
There are several step to develop team are explain as follows:
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Forming: In this stage, administration has make team as per requirement and they have
analyse all staff members capabilities, skills. Manager match their all requirement with workers
abilities and develop group accordingly.
Storming: Management of the company has executing brainstorming activities for
individuals to improve skills as well as performance that help to achieve aim, objectives
appropriately in limited period of time.
Norming: Manager of TESCO has develop strategies to build positive relationship
among all employees with in working place that reduce conflicts.
Performing: It is a final step of developing team, leaders provide directions to members
in order to complete task effectively.
Motivation theory:
Maslow hierarchy need theory: Maslow has find out four kind of needs and says human
needs are going on systematic manner. It arrange into sequence like psychological, social
cultural, self esteem, self actualisation (Petro and Gardiner, 2015). In psychological needs, daily
necessary product food, water, clothes, etc. In second, relationship, emotional support etc. In
third, achieve goals, objectives etc. In last self actualisation cover prestige and many more.
Herzberg's theory: It includes two factor hygiene and motivation. Management of firm
says some motivational elements are existing in working environment thus create positive affect
on performance. They are also develop strategies to enhance motivation among employees.
Leadership style:
Autocratic style: Management can not involve staff members in organisation decision -
making process. Their power are centralise in nature.
Democratic style: Administration of the company motivating workers to take
participation in firm decision making process. Though this, they are able to take effective action
with lot of new ideas.
TASK5
6.1 Effect of buyers services of enterprises success
High quality services provide success to organisation through higher profits, strong brand
image, satisfy clients have provide positive mouth publicity which increase goodwill, enhance
market position, increase sales and many more. Management required to make all task
analyse all staff members capabilities, skills. Manager match their all requirement with workers
abilities and develop group accordingly.
Storming: Management of the company has executing brainstorming activities for
individuals to improve skills as well as performance that help to achieve aim, objectives
appropriately in limited period of time.
Norming: Manager of TESCO has develop strategies to build positive relationship
among all employees with in working place that reduce conflicts.
Performing: It is a final step of developing team, leaders provide directions to members
in order to complete task effectively.
Motivation theory:
Maslow hierarchy need theory: Maslow has find out four kind of needs and says human
needs are going on systematic manner. It arrange into sequence like psychological, social
cultural, self esteem, self actualisation (Petro and Gardiner, 2015). In psychological needs, daily
necessary product food, water, clothes, etc. In second, relationship, emotional support etc. In
third, achieve goals, objectives etc. In last self actualisation cover prestige and many more.
Herzberg's theory: It includes two factor hygiene and motivation. Management of firm
says some motivational elements are existing in working environment thus create positive affect
on performance. They are also develop strategies to enhance motivation among employees.
Leadership style:
Autocratic style: Management can not involve staff members in organisation decision -
making process. Their power are centralise in nature.
Democratic style: Administration of the company motivating workers to take
participation in firm decision making process. Though this, they are able to take effective action
with lot of new ideas.
TASK5
6.1 Effect of buyers services of enterprises success
High quality services provide success to organisation through higher profits, strong brand
image, satisfy clients have provide positive mouth publicity which increase goodwill, enhance
market position, increase sales and many more. Management required to make all task
appropriately so that staff members are able to deliver goods as well as services according to
needs of potential customers in industry (Reim, Parida and Örtqvist, 2015). Through this,
TESCO has capable to achieve attention of large number of clients that enhance profitability
sales in long period of time.
6.2 Benefits of customer's services
There are several benefits of clients services which are offer by organisation in order to
increase customer's satisfaction as well as build positive brand image in consumer's mind.
Through this, firms have capable to achieve higher profitability and sustainability in long period
of time. In highly competitive environment, enterprises has develop effective buyers service
strategies to complete competitors at market place appropriately.
CONCLUSION
From the above report it is concluded that management of the company has develop plan
in order to run all business operation in appropriate way. Through this, enterprises are able to
achieve aim as well as objectives in limited period of time. It is a UK third largest retail
company which run their business work at international level through this firm are gain higher
profitability in long period of time.
needs of potential customers in industry (Reim, Parida and Örtqvist, 2015). Through this,
TESCO has capable to achieve attention of large number of clients that enhance profitability
sales in long period of time.
6.2 Benefits of customer's services
There are several benefits of clients services which are offer by organisation in order to
increase customer's satisfaction as well as build positive brand image in consumer's mind.
Through this, firms have capable to achieve higher profitability and sustainability in long period
of time. In highly competitive environment, enterprises has develop effective buyers service
strategies to complete competitors at market place appropriately.
CONCLUSION
From the above report it is concluded that management of the company has develop plan
in order to run all business operation in appropriate way. Through this, enterprises are able to
achieve aim as well as objectives in limited period of time. It is a UK third largest retail
company which run their business work at international level through this firm are gain higher
profitability in long period of time.
REFERENCES
Books and Journals
Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4). pp.36-47.
Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model
design. Strategic Entrepreneurship Journal. 9(4). pp.331-350.
Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University
Press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Dunning, J. H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Routledge.
economies. Routledge.
Gassmann, O., Frankenberger, K. and Csik, M., 2014. The business model navigator: 55 models
that will revolutionise your business. Pearson UK.
Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
pp.657-678.
Palattella, M. R., and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-
527.
Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on
project portfolio success, effectiveness and business efficiency for project-based
organizations. International Journal of Project Management. 33(8). pp.1717-1729.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Books and Journals
Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4). pp.36-47.
Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model
design. Strategic Entrepreneurship Journal. 9(4). pp.331-350.
Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University
Press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Dunning, J. H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the
1990s. Routledge.
economies. Routledge.
Gassmann, O., Frankenberger, K. and Csik, M., 2014. The business model navigator: 55 models
that will revolutionise your business. Pearson UK.
Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
pp.657-678.
Palattella, M. R., and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-
527.
Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on
project portfolio success, effectiveness and business efficiency for project-based
organizations. International Journal of Project Management. 33(8). pp.1717-1729.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
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