Business Integration and Strategic Leadership Analysis: Tesco Report

This report provides a detailed analysis of Tesco's business integration strategies, focusing on its evolution over the past decade. It begins with an overview of Tesco, a British multinational retail company, highlighting its market position and organizational structure. The report then delves into an internal and external environmental analysis, including a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It examines Tesco's strategic leadership, including expansion strategies, promotional tactics, and changes in leadership style. The report also considers the role of various business functions in Tesco's success, such as human resources and marketing. The analysis covers how Tesco has adapted to changes in the market, customer preferences, and technological advancements, and how these changes have impacted its business culture and structure. The conclusion summarizes the key findings and provides insights into Tesco's strategic direction.

Integrating Business
Functions

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Over view of company:...............................................................................................................1
Analysis of internal and external environment...........................................................................3
Strategies leadership:..................................................................................................................4
Promotional strategy:..................................................................................................................4
Business functions.......................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Business integration is an effective strategy which is used by business organizations to
synchronize technology with culture and objectives of business. Main focus of this is to align
technology with final goals of company. It defines many implementation of culture, objectives
and various align technologies to attain the profitability of the business in systematic manner. In
this, information technologies help in improving the business functions to maintain sustainability
(Baker and Niederman, 2014). One of the main aim of integration business is to capture large
market share by using innovative technologies in their operational process. It is an effective
process which is used to cross train management in order to reduce the supplier cost and
ineffective communication in appropriate manner. Present report is based on Tesco which is a
British multinational retail company that provides grocery products to their customers in order to
achieve their satisfaction level in an effective manner. In this essay, it defines changes of strategy
and strategic direction in previous 10 years. It also defines the relation of changes with strategic
leadership, culture, structure and environment. Along with this, it also considered role of
business function in this report.
Main body
Tesco is a British multinational retail company in the UK. It is the third biggest retail
company in the world in terms of profit and as per their revenue, it is at the position in all over
the world. They operate their business activities in 12 countries and it is also grocery market
leader in UK.
Over view of company:
Main aim of Tesco is to capture large market share by providing high quality services to their
customers and also, get higher satisfaction towards the products. Basically, it is public limited
company which was found by Jack Cohen in 1919 in the UK. The headquartering of Tesco is in
England. They include skilled and experienced employees within their business activities.
Approx 476000+ number of employees work in this company to generate high revenue. They
operate their business across 6553 stores in which they deliver high quality services as well as
products to their customers (Cretu, 2014). Supermarkets, hypermarkets and super stores are the
the part of tasco, which they provide variety of products under one roof so that large numbers of
customers buy this products and increase their profitability in appropriate manner. The operating
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income of company is £1,280 million which is defined as the best position in market. Revenue of
company is £55,917 million so that they would take ninth position in retain business over the
world. It is largest business that provide quality services to their customers in order to attain the
higher profitability in systematic manner. The main reason behind Tesco success is their
organizational structure (Dey and Sircar, 2012). With the help of this they operate their
operational activities in order to formulate their business process in appropriate manner. They
use hierarchical structure in their business which set with five committees. In this 11 members
are executive committee which is led by the chief executive. They manage all these process of
the company and use effective structure for it wide scope of the business. It has tall structure
which defines multiple layers that helps in operating all kind of activities which support in the
organizational success. With the help of organizational structure position and various obligation
are divided in several categories in which they complete their all type of work effectively. As per
their structure, top level management has various responsibilities which aids in managing all the
process of business with more effectiveness by providing the best direction to their lower
management. The board of director includes 10 members which defines significant changes that
take place in financial year 2014/2015. As per organizational structure of Tesco evaluate wide
scope of the business. It also define the corporate governance structure chart in which 5
committees are reporting to Board. In this they show effective way in which they complete all
the business activities in appropriate manner. They include various and effective technologies in
their operational process which reduce the human error and maintain their sustainability within
the process and develop their performance at market place. tesco given more attention and
opportunities to their staff members to serving better services to their target customers so that
they provide better services in order to get their higher satisfaction in appropriate manner. Along
with this, the culture is also an important for the company to run their business smoothly. It made
up by the values, beliefs, assumption, behaviours and attitude of the employees within the
organization. It is formulation by interaction activity of the employee which define their routines,
rituals, systems in effective way (El Azami, Malki and Tahon, 2012). Tesco has supporting
approach in which all the staff behave effectively as well as friendly with each other in order to
maintain then healthy work environment so that all the employees effectively works together
and get positive results.
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Analysis of internal and external environment
Internal analysis
Swot analysis of Tesco
Strength Weaknesses
 Tesco having strong brand image in
over the world.
 Higher proportion of products helps in
achieving better efficiency.
 Use of innovative and advanced
technologies helps in taking
competitive place in the market.
 Skilled and experienced employees also
a positive aspect for the company
which lead in achieving better goals
and objectives.
 Subsidiary of Tecso is one of the
biggest weaknesses because it does not
work well.
 Competitors is also a negative aspect
which leads in decreasing overall
profitability of the company.
 Weak presence is also a weakness for
the company.
Opportunities Threats
 Diversification of strategies is best
opportunities for the company for
example, tecso bank.
 They wants to operate and well as grow
their business in online.
 They also focus on private label for
their growth.
 Increasing raw material cost is big
threat for the company because it
directly impact on its profitability level.
 Number of competitors is also a threat
for the company.
External environment
External environment is that aspect which can affect positive or negative impact on
business performance of TESCO. Mainly it includes political, social, economical and
technological factors. It is huge responsibility of its managers to make any important decision to
consider all these forces because all these components influence impact on its growth in different
manner. In present time, UK government has increased the tax measure which is influencing
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negative impact on this company. Economic conditions of UK is continuously improving which
will result in increment in customer buying behaviour, this will influence positive impact on
TESCO. Change of UK people are continuously changing which can provide great opportunity
to this company. By taking help of digital technology, this organisation can improve its current
business performance.
Strategies leadership:
In 2007, Tesco enter in US and announce to open hundred more stores. For this they
adopt expansion strategy to achieve its target as well as objectives. In this they set their groups of
employees who work for the expansion of the business by evaluating their rivals strategies and
set their policies and process accordingly to increase their profitability. After doing this process
they easily reached their target and open their various stores for delivering their products in front
of audience.
In 2009, Tecso launched a Bank in which they required skilled and experienced
employees for operate their banking activities in effective manner (Künzle, Weber and Reichert,
2011). For this they set best recruitment and selection strategy for hire best employees within the
organization. In this human resource department play important role and set their hiring activities
in systematic manner. Before doing this they promote their information in wide range areas and
attract more candidates so that they select the best for their operating activities. Tesco always
tries to turnaround their business performance over the world for this they done significant
changes in their structure and activities to take strong position at the market place.
In 2010 Tesco, they develop their value and variety of products in one shop to increase
their profitability level. For maintain this process they promote their business in wide rage
market in which they focus on those customers who wants to use grocery products for satisfy
their needs. Over the last 10 years Tesco done various changes to improve their performance in
order to achieve higher competitor place at the market place and also capture the large market.
Promotional strategy:
They use aggressive promotional tools to invite large number of customers toward their
products and services. In this they undertake research to evaluate as well as find out the taste and
preferences of the customers. For this they determine their rivals strategies and set their policies
according to them in order to improve their services. They used to implement traditional
methods within their workplace but at present time they are use innovative technologies to
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develop their performance by attracting more and more customers. Along with this Tesco use
various promotional activities such as advertising, sales promotion and many more in which they
promote better services in front of customers in order to invite them and improve their overall
sales. All these helps in achieving competitive advantage in most effective manner from its
rivals.
Tesco having various features of their organizational structure in which they include
geographical based structure in which they formulate their activities in all the department in
which they deal and offer as well as add value products for their services users. They also share
friendly culture so that all the workers share their all the opinion, views and ideas to implement
the best activities to attain the customers and market place. These chances also affect the
business culture and structure. So that it is important for the company to promote better values
and beliefs to develop he positive work environment at the working place (Lee and Wang,
2013).
They also make flexible environment in which they easily adopt all the changes and also
implement effectively. With the help of sharing values and beliefs, Tesco increase employees
loyalty about the organization which improve the overall performance of the employees on
appropriate manner. In this inflexible as well as rigid culture reduce the performance level and
also create more problem in organizational growth so that it is important for the company to
make flexible culture in effective manner. It is also benefits for the company that if they share
beliefs and culture so that employees easily able to understand the customers taste and
preferences (Lee, 2014). Along with this, proper inter departmental coordination also improve
the organizational structure and employees productivity towards the company. By implementing
the changes Tesco expanding their products by setting effective distribution channels in order to
improve their profitability level and also get larger market share for achieving the competitive
advantage from its rivals. They also change in leadership style as per their employees
performance. It is important for the company to maintain their sustainability within their
organization process because they follows their traditional style for leading their employees. In
today's modern time this approach is not applicable and fails to motivating their employees
toward the works so that they use modern and innovative process to develop their performance.
They provide best facilities to their workforce such as monetary and non monetary items which
improve their overall performance level in appropriate manner. Tesco focus on producing quality
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services in order to achieve customers satisfaction by delivering them according to the customers
demand.
First Tesco offer its services to customers with the help of retail outlets. This was very
costly and time consuming as this require lot of human resources to manage the activities of store
outlets. But at present TESCO encourage online selling of its products this method is so
effective. As this save both time and cost of firm and require little human resource to manage all
this (Lin, 2014). Give opportunity to customers to evaluate the features of product before
making decision of purchase. It helps in fast delivering process of the products and services in
front of the customers so that they easily satisfy their needs. With this help of this Tesco
implement their purchasing activities in effective manner as compare to older methods. So that
they increase their efficiency and reduce overall cost of the operation. Online selling is one of the
best methods which is used by the company to increase their overall productivity as well as
goodwill at the market place which helps in inviting large number of customers toward the
products. In this the customers evaluate the features of the products and also give them feedback
according to their services. With the help of review of the customers they also improve their
present methods as per customers requirements (Österle, Fleisch and Alt, 2011). For this they
also include information technologies to generate more and more revenue in effective way. They
also increase their revenue by selling their South Korea stores because they think that in
upcoming time this business reached decline stage. With the help of this they reduce their bad
debts and improve their financial position at market place. Online marketing helps in increasings
the innovative technologies so that they it develop digital marketing that improve their goodwill
at market place and also take competitive place in effective way (Panayiotou, Gayialis and
Evangelopoulos, 2011). This process helps in improving the purchasing process because in
older time they use physical stores which requires more man power that is done by the fund. But
now they use IT technologies to maintain their process and also increase their profitability level
by delivering quality services to their customers. Over the part 10 years Tesco face less
profitability in their organization because the government reduce the subsidiary cost of the
farmers and they are important for the company because they provide them raw material. So that
in this case farmers was reduce their qualities of the raw material which directly impact on the
organization performance. That is why because Tesco use raw material which is not good in the
quality so that they also produces less quality products which decrees the number of customers
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towards the company and its products. All these are changes which affect the company
performance and also affect on the organization environment and culture. For reduce the
negative impact of the changes they use quality methods and various process in their
organizational activities to improve their performance and take competitive place at market
place. In this context there are various roles of business function which should be consider by the
Tesco to achieve their organizational success in systematic manner.
Business functions
Marketing function: Marketing play an important role in Tesco business because it helps in
increasing the profitability and also increase the awareness of the customers towards the products
and services. It also define the better relation between customers and the company that offering
to the market for achieving the profitability in effective manner. It is also related to the branding
and advertising of the products and services of the company in the market. With the help of this
Tesco established their brand image by promoting their services in front of large number of
audience. In Tesco, the marketing department is also important which helps in promoting the
mission of the company at market and also serve their products and services to the customers for
achieving their higher success (Romberg, Fennema and Carpenter, 2012). The main function of
marketing department is to reach their target customers and investors to create the brand image
in the market. Marketing department responsibility for the establishing the strong relationship
with their customers in order to achieve their loyalty toward the company (Ross, 2016). Tesco
having better marketing function which leads in increase their brand image at market place. They
also use promotional activities to promote their production features in front of customers. The
main aim of market is to attract large number of customers and also create their interest to buy
the company products for fulfilling their needs and wants and also get satisfaction level in
effective manner.
Operations management: It is more important for the company to bring together the raw
materials in order to make the final products which is used by the customers as per their
requirements. It also helps in sharing their ideas and opinion to improve their operational
activities to reduce the overall production cost in effective manner. It play important role in
managing all the production process of goods and services in effective manner. It define
planning, organising, coordinating and controlling all the activities which helps in producing the
quality products to the customers in order to gain their faith which increase overall performance
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of the company at market place. This department set the effective schedule in which they
maintain their planing process of producing the quality products. One of the main aim of
operation management is to convert the raw material into finished goods which is offering by
the Tesco to its customers in order to achieve their satisfaction level. If manager of the company
manage their operations function then they easily reach their target and also take competitive
place in the market. With the help of designing, planning, managing and coordinating Tesco
easily capture larger market share and also improve their performance level at market place
(Yuan, Bao and Verbeke, 2011).
Human resource management: It is more important function for the Tesco because human
resource management helps in managing all the activities which perform in the business
organization to achieve their target. For this they also select skilled and experienced employee
within their activities so that they effectively perform their job responsibilities. It aid in defining
the needs of the customers in order to get their satisfaction level in effective manner. Ne of the
main responsibility of the HR team is to managing all the people who work within the
organization. It also include recruiting and hiring employees which helps in achieving the
organizational goals and objective in appropriate time period (Song, 2013). They also provide
better training and development programs to their employees as per their requirements so that
they improve their efficiency towards the work and also put their best efforts to achieve its target
in less time period. It also contribute in increasing the employees performance which directly
impact on the company image at market place.
Finance management: This function as well as department pay important role in Tesco company
because it provide proper fund to the company for operating their activities in order to achieve
their target. In this the finance department make all the records of financial activities because it
helps in evaluating the actual performance of the company (Winnard and et. al., 2014). For this,
manager of the company make a team in which they provide all the financial activities to manage
it effectively. It help to the management in taking financial decision. Which directly impact of
organizational goals and objectives. In this the manager also set their financial goals in order to
maximizing the profitability which aid in minimizing the express with the organization. With the
helps of better management of financial activities company easily capture market share from its
rivals.
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CONCLUSION
From the above mentioned essay, it can be concluded that business integration is one of
the best strategy for company to achieve its goals and objectives in systematic manner. It is
related to information technologies to improve their company performance at market place. This
essay summarized that Tesco is biggest retain store in which they deliver quality services to their
customers in order to achieve better profitability in appropriate manner. In this it also concluded
that it recent time they expand their business in various countries by implementing effective and
best methods as well as policies. They also use online process for selling their products in front
of large number of audience which helps in improving the overall performance as well as
profitability. In this various roles of business function is also helps in achieving the success at the
market place.
REFERENCES
Books and journals
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Online
Tesco SWOT Analysis. 2017. [Online]. Available
through.<http://www.learnmarketing.net/SWOTTesco.html>.
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