Strategic Management: Analysis, Recommendations, and Change Factors

This report discusses the importance of strategic management in achieving business goals and provides analysis, recommendations, and change factors for Tesco. It covers the relation among various organisational strategies, application of strategic models, critical success factors, suitable strategic options, and change factors. The report also includes a reflection on the usefulness of change models.

STRATEGIC
MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
Critically analyse the relation among various organisational strategies................................1
Apply strategic models to recommend strategic options........................................................2
Evaluate critical success factors to underpin the strategic options.........................................3
Recommend and justify the suitable strategic option.............................................................4
Analyse the change factors by considering the force field analysis.......................................5
Identify the change agents and develop suitable structure.....................................................6
Create a resourced implementation plan for the strategy.......................................................7
Describe the potential risks during the implementation.........................................................8
TASK 3............................................................................................................................................8
Reflection on usefulness of change models............................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
Present report summarises that strategic management is the process of formulating
effective plan for betterment of business so that all the targets which are formed for long term
could be accomplished. While planning for the development of business it is essential for all the
companies to make sure that they pay attention towards strategies management. By focusing
upon it ways to enhance performance of business could be identified and implemented. This
report is mainly based upon Tesco which is one of the largest retailers of United Kingdom and
operating business all around the world (Alfonso-Robaina and et., al., 2020). It is very important
for the managers to make sure that they consider different elements when they are willing to
develop strategic plan for betterment of business. For this purpose, they have to link the plan
with organisational vision, mission, values etc. and aware all the staff regarding them. It will be
beneficial for enhancement in their involvement in the jobs that are allocated to them. In order to
make sure that the plan result positively it is essential for managers to evaluate key headline data.
It should include financial performance, profitability, market share, share price etc. By analysing
detailed information of all of them effective plan for future could be generated. If the top level
executives of an organisation are planning to analyse competitive position in the market then
they should assess all the forces which are available in macro environment and may affect the
business negatively. In order to develop strategic plan it is also very important for entities to
conduct SWOT analysis because it can help to assess all the strengths, weaknesses, opportunities
and threats.
Several elements which are needed to be focused by enterprises to deliver a perfect
strategic plan. These are analysis of relation between corporate, business and operational
strategies, strategic models and tools, success factors or assumptions, change factors etc. In order
to analyse the potential changes force field analysis is required to be conducted which will help
to make appropriate modifications. There are various risks which may take place while
implementing strategic plan (Bettis and Blettner, 2020). These are lack of funds, human resource
etc. Tesco is recommended to take effective and quick actions to determine and reduce such risks
which that may leave negative impact upon market share and profitability. The management is
also recommended to expand the Jack's Stores so that number of customers could be increased. It
will also be beneficial for the entity to strengthen customer base.
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INTRODUCTION
Strategic management is the study which defines the management of organisational
resources in order to achieve suitable goals and objectives. It involve setting objectives,
determination of competitive environment, analyse the strategies and make sure that
management implement the strategies across the organisation. It is useful in defining the
predetermined organisations clear mission, vision and purpose of their existence for which the
company wanted to be in future (Daniels, 2020). It is considered as an ongoing process which
describe planning, monitoring, analysing and so on which is important to meed to desired goals
and objectives.
For this, changes are important in business environment as it necessitate organisational
design which is useful in meeting the desired objectives. For this report, considered company is
TESCO which is British multinational grocery store and general merchandise headquarter in
England, UK. Moreover, this report is divided into three sections in which first one include
introduction of company, analysis of macro forces, competitive position and SWOT table. In
second part, relationship among the strategies of organisation is described, strategic model is
applied, critical success factor is used and change is introduced for the betterment of company.
At last reflective is done in which most appropriate model is described and effective leadership
and change agent skills is defined.
TASK 1
Covered in PPT
TASK 2
Critically analyse the relation among various organisational strategies
To run a business organisation in smooth manner it is classified into three categories to
develop suitable strategies by which organisation does not get confuse and in concern of this,
various departments are developed within an organisation (Drnevich, Mahoney and Schendel,
2020). It is somehow true that the structure of company is complex in the operational section but
for this, suitable hierarchy is developed. Various organisational strategies are discussed as under: Corporate strategies: It is considered under the highest strategic plan within the
organisation as it defines the corporate and overall goals which provide suitable direction
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to achieve goals and perform suitable objectives. This strategy is considered under the
long term which is useful in defining the vision and also provide suitable direction to
company. For example, expansion related decisions of TESCO are considered under the
corporate strategies. Business strategies: This strategy is termed as that strategy in which company take
suitable decisions regarding their business to achieve desired goals and objectives. This
strategy consider many factors such as profitability, sales, revenues and many more. For
instance, if TESCO wants to expand then it will describe the prominent medium which
helps in attracting customers such as differentiation, pricing and so on (Dyer and et. al.,
2020).
 Operational strategies: It define those strategies or methods which is used by company
while developing its products as it is useful in examining and executing the effective
system by using suitable resources, personnels and working procedure. For example, if
company is expanding then this strategy is useful in describing the operation related
strategies which is useful in attracting customers towards it and helps in developing
sustainability of company.
For this, it is analysed that all the above discussed strategies are interlinked with each
other as TESCO want to expand its business and open its stores in new market area is considered
as corporate strategy but it remains incomplete till the business strategies are not determined and
for this, TESCO opt licensing to establish their business in new market area. Moreover, they also
develop suitable operational strategies as the they can opt self check out system to save the time
of their employees and for the expansion all of them are interlinked (Ecem Yildiz, Dikmen and
Talat Birgonul, 2020).
Apply strategic models to recommend strategic options
In order to analyse the suitable strategic option Ansoff matrix is used which is useful in
analysing the suitable plan and appropriate strategies regarding the growth. This matrix
represents four strategies which is useful for company to grow and determine the risk which is
concerned with each strategy. For this various strategies are discussed as under: Market penetration: It is considered as the less risky step as here existing products are
introduced in existing market by determining the resources and capabilities. By,
considering the growing market, company need to maintain its market share which results
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in the growth of company. If TESCO opt this strategy then it leads to limit the market
share and area of company. Product development: This strategy is quite appropriate as here new products are
introduces in existing market and for this company is more familiar with the demand and
preferences of customers. This strategy is only beneficial when the developed product is
targeted the existing market. As if TESCO open its new store in that area in which they
already operate their business like in UK (Hughes and Hodgkinson, 2020). Market development: In this strategy existing products are launched into new market as
it include pursuance of additional market segment. From the strategies, it is considered as
the best strategy as here core competencies are concerned with particular product and it is
based on the experience of company. But this, strategy is concerned with more risk as the
product is introduced in new area from which company is not much familiar.
 Diversification: It is termed as the most risky strategy from all the four strategies because
here fresh product is launched into the new market area and for this, company need to
conduct suitable research and develop prominent strategies to acquire new market area.
Moreover, it is considered as the most reasonable choice as if the high risk is
compensated by the possibility of high rate of return.
By considering the above analysis, it is analysed that market development is best for
company existing products are launched into new market and for this, company conduct research
in order to analyse the needs and preferences of customers. Here, risk factor is quite low as
compared to other strategies.
Evaluate critical success factors to underpin the strategic options
Critical success factor is the management term which is important for company to
achieve their vision and mission. In order to attain goals they need to be aware regarding the key
success factors and few variations among the keys and various roles of result area. Few success
factors which describe the strategic options are discussed as under: Profitability: This factor is useful in identifying the rate of earned profit which occurs
from market development strategies (Knight, Daymond and Paroutis, 2020). As while
launching the products in market place, TESCO firstly analyse the suitable profit which
occurs from their sale. This factor is useful in determining the earned profit which they
expect from their sale of product.
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 Industry factors: These factors are the result from the specific features of industry. For
this, it include many things which need to be considered and important to remain in the
competitive environment with in the sector. In relation with TESCO, while expanding its
products into new market place, company need to conduct proper research regarding the
influential factors of business environment.
 Environmental factors: These factors are the result which company get from external
environment as they impacts the functioning of company (Kor, Mahoney and Tan, 2020).
For this, few factors considered which are the business climate, economy, competitors
technological advancement and so on. In relation with TESCO, for their expansion of
products in new market they always examine this factor as it helps in improving the
image and reputation of company.
Recommend and justify the suitable strategic option
By considering the above discussed strategic model, it is analysed that Market
Development is best suited for company and their target market is “Siji”. As this strategy helps
in identifying and developing the new market area for existing product. This strategy is useful in
targeting the non buying customers as those who does not take interest in the offerings of
company and for this, company start targeting those areas in which new customers are targeted in
new market. In relation with TESCO, this strategy is useful in identifying the new market and
concerned opportunities of market as it helps in increasing the present customers usage which
leads to increase in the number and size of purchase, increases the rate of product degeneration,
also find unique way to use the product, provide incentives and advertise by using other
methods.
Moreover, it is useful in attracting competitors by developing and making difference
among them as it helps in increasing the efforts of advertisement and so on to differentiate
TESCO from other companies (Kozhevina and et., al., 2020). It is a procedure which is done by
offering the trial service of products and also adjust the prices according to their promotion
which is useful in attracting customers. Moreover, geographic expansion is considered in order
to set up new business. For this, TESCO has many options like other regions, nationally or
internationally.
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Analyse the change factors by considering the force field analysis
By considering the current change with the compansijiey it is analysed that there are
many forces which drive and restrain the changes within an organisation (Kryscynski and
Morris, 2020). As these forces are introduces in order to bring change and determine the forces
for change and resisting change. For this, few forces are discussed as under:
Illustration 1: Lewin's Force Field Model (Change Management)
Forces for change: Changing nature of workforce: While implementing change, it becomes the duty and
responsibility of leaders and managers to bring change in an effective manner as due to
this, nature of workforce does not get change towards their roles and responsibilities. For
this, they need to make sure and observe the behaviour and personality of individuals and
describe them prominent benefits to bring change within the company.
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 Uncertain economic conditions: Change is implemented because of uncertain economic
conditions and for this, TESCO firstly determine the suitable conditions which demand
probable change within the working conditions of company (Met and et., al., 2020) .
After analysing the change, company develop suitable strategy and change which is
useful for the success and growth of both employees and organisation and change is
useful in fostering the performance of company.
Forces resisting change: Miscommunication or inappropriate information: While developing change,
communication is important and for this, somehow miscommunication and
misunderstanding takes place regarding the implementation of change. As many of the
times suitable information is not given to employees and it leads to hinder the
performance of employees.
 Sense of insecurity: In this factor, employees resist regarding the implementation of
change as most of the employees want change but few of them does not want change and
resist regarding the implementation and introduction of change. Resistance of employees
is related to their insecurity of job and their working conditions.
Therefore, while implementing change TESCO need to consider many factors which can
hinder and foster the performance of company and because of this, change is implemented and
somehow this factor can also leads to influence the working conditions of company.
Identify the change agents and develop suitable structure
In an organisation there are many change agents which bring change within an
organisation and these can be either employees, managers, leaders and many more who can bring
effective change within the company (Ongaro and Ferlie, 2020). In order to analyse suitable
change, probable structure is developed which is useful in implementing change are as follows: Clearly define the change: This factor depicts that while implementing change it is
important for the leaders of TESCO to clearly identify and describe the change within an
organisation. Clear communication is useful in aligning to the suitable goals and
objectives of company as it helps in ensuing the change which is useful in carrying out
the business activities and suitable directions of company. Determine the impacts: After defining the change, its impact is analysed which is useful
in achieving the goals and objectives and examine the impact of change to different
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organisational level. This information is useful in providing the blueprint from where the
training is useful in supporting the needs and also mitigate the impacts. Develop a communication strategy: While implementing change it is important to
clearly explain and describe goals to employees as what is expected from them. This
determination is considered as the most effective way to communicate for group as it
bring them on board. It is the probable strategy which include communication of change,
key messages and communication channels (Pedersen, Ritter and Andersen, 2020) . Provide effective training: After communicating change to employees, it becomes the
duty of the leaders of TESCO to provide prominent training and development programme
to the as it is useful in enhancing their overall performance and make them efficient and
effective to achieve desired goals and objectives. Implement a support structure: This factor describe that offering and providing suitable
support structure to employees in order to work in changed working conditions as it helps
them making them stable regarding the change and develop proficiency among them and
their behaviour as it is useful attaining desired result and change.
 Measure the change process: While implementing change, suitable structure is described
which put appropriate place to measure and analyse the impact of business and make sure
the continuous reinforcement opportunities which is used to develop proficiencies.
Create a resourced implementation plan for the strategy
To implement and develop suitable strategy within an organisation few resources are
analysed which is useful in determining the scope and opportunity of company. For this suitable
resources are discussed as under: Technological resources: These resources are useful in identifying the technological
resources which are available for company in order to develop and formulate new
strategies and for this, analysis of technical factors are important. In terms of TESCO,
while expanding their business they should determine the availability of technical
resources which is required in their expansion. Human resources: While implementing change, human resources plays an important
role which is useful in determining the availability required manpower in their stores and
business areas. For this, skilled and knowledgable human resources are required which is
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useful in bringing and implementing change as they plays an important role in the
implementation and execution of strategy in effective manner.
 Financial resources: This factor is useful in identifying the availability of finance and
funds for the development of product and expansion of business services. For this,
company make probable budget which is useful in identifying and analysing the
availability of funds in required manner (Pröllochs and Feuerriegel, 2020).
Describe the potential risks during the implementation
By determining the implementation of strategy, various risks are concerned with it and
few of them are discussed as under: Resistance: Resistance is commonly introduced while implementing change as it is
considered as the most common factor and for this, people usually set their own ways and
become reluctant to accept new changes and suitable procedures. In this context,
subordinates always remember previous unsuccessful changes which are implemented
within an organisation while taking suitable initiatives. For this, change include many
new process including the automation and information system.
 Leadership: in order to implement change within an organisation effective and
appropriate leadership is required which is useful in guiding and directing the employees
of TESCO. For this, managers provide training to those departments who cannot handle
the requirements of change. Moreover, management need to put emphasis on the
inevitable factors and events during the execution process(Wooldridge and Cowden,
2020).
TASK 3
Reflection on usefulness of change models
In my opinion there are various types of change models which could be used by
organisations while planning to implement change at workplace. These are Lewin, Mc Kinsey's
7s, Kotter etc. I think that the major two models which are mainly used for the purpose of
analysing and implementing change. In order to make sure that all the modifications are made
properly then it is very important for all the managers to have detailed knowledge about them.
Lewin's model of change was developed by Kurt Lewin which is having three different
stages. These are unfreeze, change and refreeze. While implementing change or desired
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modification it is very important for management to make sure that they aware all is staff
regarding these stages. Unfreezing is the first step of change in which managers of companies try
to spread awareness regarding benefits of change (Whittington, Ludlow and Mantere, 2020) . It
will help to change the resisting behaviour of staff and influence them to adapt the change.
Second stage is related to implementation of modification where practical execution of plans is
done. Here, main responsibility of a manager is to make sure that all the staff members accept
the change and working accordingly. At this stage workforce start to learn new things and their
skills get developed which are used by them to perform all the tasks properly that are allocated to
them (Wood, Coe and Wrigley, 2016). The last stage of this model is refreeze in which changes
are made in the operational activities, organisational procedures etc. Here, staff adapts all the
modifications and execute operations systematically. In my opinion it is one of the major steps
which should be focused by all the managers as it guides them to make sure that change is
implemented properly or not.
Second model of change is Kotter Model which are developed by John Kotter in year
1995 in his book leading change. There are eight different stages of it which are required to be
focused by organisations while implementing it. First step is create urgency where need of
change is identified in the organisational process for attaining success. Afterwards a powerful
coalition is formulated which helps direct others who are involved in the process. Right after it
vision is created by managers so that they can motivate staff to work accordingly
(Suriyankietkaew and Petison, 2020). When vision is formulated then it is the main
responsibility of a manager to communicate it with staff so that they can perform effectively. At
fifth stage strategies for removing obstacles are required to be removed so that procedures of
implementing change could be performed smoothly. Sixth stage is related to the short term
winnings in which manager is required to aware staff regarding advantages of change.
Afterwards, the management is required to make sure that the plan which is formed by them is
highly sustainable and effective. The last stage is related to the adaptation of change by
workforce in which all the employees try to work effectively (Wood, Wrigley and Coe, 2017).
From both the described models of change the managers of Tesco are recommended to
adopt the Kotter model for the purpose of adopting the strategic option of market development in
which it is planning to expand its business in Fiji. It is recommended to the organisation because
with the help of it the managers will be able to perform all the tasks properly and meet the goals
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of entity which are related to the change. It will help workforce to analyse details about changes
and work accordingly.
CONCLUSION
Thus, it is concluded that strategic management is useful in providing suitable direction
to company as it include development of policies and plans and after allocating the resources to
execute the plans. Strategic management include various strategies such as corporate, business
and operational and for this, management theory and practice helps in making difference among
the strategic and operational which is useful in enhancing and improving the efficiency and cost
of strategy. Here, change is introduced which is useful for company to achieve desired goals and
objectives and for this, suitable plans are discussed and developed to determine the probable and
concerned risk which is associated with change.
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