Managing Innovation in Business

Managing Innovation in
Business

EXECUTIVE SUMMARY
With the help of this report, it can be summarised that innovation plays a crucial role in
making an organisation successful. It is important for the organisation to manage innovation
effectively so that they can improve their productivity, efficiency and profitability. In this report,
Tesco is taken into consideration. On the basis of the history of innovation of Tesco, it can be
analysed that there focus on innovation is since they came into existence. Due to this, they have
the capabilities of introducing new innovation in the future effectively coping up with
competition and improving customer satisfaction. In this report, various factors determine that
leads to Innovation and has an impact on innovation. Such factors can be analysed with the help
of SWOT analysis.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Overview of the organisation and history of innovation........................................................4
Performance of existing innovation and capabilities of Tesco Plc.........................................6
Industry in 2020......................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is the practice with the help of which creative and unique ideas are developed by
the organisation for improving the customer’s experience (Dewick and Foster, 2018). It provides
various better solutions to the problems so faced by the individuals or the unmet need of the
customers. Innovation can be introduced by the organisations in the products and services so
offered by them, technologies that businesses uses, processes that are undertaken by the
companies etc. This report is prepared with the aim of developing an understanding of the
concept of innovation and the ways of managing it. For this report the company that is taken into
consideration is Tesco Plc. which is a supermarket chain. In this report the innovations history of
the company is discussed along with analysis of their capabilities. Apart from this the innovation
that can be adopted by the company in future are taken into consideration.
MAIN BODY
Overview of the organisation and history of innovation
Tesco is a multinational general merchandise retailer whose headquarters are in Welwyn
Garden City, Hertfordshire, England, United Kingdom. It was founded in the year 1919 as a
group of stalls in a market. They are operating in various countries across Asia and Europe.
Tesco has adopted various innovations in their operations from time to time so that they can
make their customers happy. The two most crucial drivers of the introducing innovation in Tesco
are the need of the customers and various market forces (Tesco Plc, 2018).
Tesco has always into the list of the companies who adopts innovation consistently since
they have come into existence. The history of innovation in Tesco is discussed below:
 In the year 1956, a self services supermarket was established with the name Tesco with
the help of which the customers can pick products as per their need. Also this reduced the
cost of employees as self service supermarket reduces the requirement of the employees
(Nenonen and Storbacka, 2018).
 In the year 1995, a clubcard customer reward scheme was launched by the company
which was as innovative at that time as it engaged the customers with the supermarket.
This gradually increased their sales and thus the profitability of the company.
 In the year 2000, the company went online. This innovative move of entering into the
digital market facilitated them in taking competitive advantage. With the help of this