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Tesco's Digital Transformation Strategy

   

Added on  2020-02-17

8 Pages2588 Words710 Views
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STRATEGICMANAGEMENT
Tesco's Digital Transformation Strategy_1

TABLE OF CONTENTINTRODUCTION ...............................................................................................................................3TRANSFORMATION STRATEGY FOR TESCO .............................................................................3Tesco McKinsey 7S Model..............................................................................................................3TESCO's Digital transformation......................................................................................................6CONCLUSION....................................................................................................................................7REFERENCES.....................................................................................................................................8
Tesco's Digital Transformation Strategy_2

INTRODUCTION Strategic management acts as the backbone for the growth and development of the company.Planning and implementing strategies according to the needs and demands of the market andconsumers enhances the functionality of the company. The report has discussed the differenttransformational strategies used by the organisations to improve the performances. The report hasbeen drawn in context to TESCO, a leading retailer company. The company has successfullyembedded its roots as leaders in local and international markets. The supermarket chains of thecompany has adopted digital transformations and 7S McKinsey model which has been described inthe report (MINI, 2015). Better understanding of turnaround strategies adopted by TESCO havebeen briefly discussed in the report.TRANSFORMATION STRATEGY FOR TESCOTesco McKinsey 7S ModelThis model describes the interlinking of different business elements which in turn increasesthe overall efficiency. The model illustrates seven business elements. In accordance to the modelbusiness consists of hard elements and soft elements. Hard elements include company's strategies,structures ans systems. Soft elements consists of skills, staff members, shared values and style.Shared values are the resultant of the interaction of all the business elements which have directimpact upon the performance and behaviour of the workers of the company. The seven elements aredescribed as follows -1.Strategy – Strategies made in the business model describes the methodologies used by thecompany in order to meet its desired goals and objectives. TESCO basically applies thestrategy of Balance Scoreboard (BSC) to accomplish its targets. The company carries themarketing message that every little helps which means small efforts and small steps can alsolead to a big difference and help the organisation to fulfil its goals. It has also adopted thebusiness strategy of cost leadership for the communicating their message. The organisationhas sustained this strategy because of its bargaining power with its suppliers to get reducedpurchasing costs and taking advantage of economies of scale (Hill Jones and Schilling,2014). Presently the main challenges dealt by the cited company are restoration of trust ofconsumers in the company. Profit account scams, delays in payment of the suppliers and reductionin sales due to these incidents are some major challenges faced by the company. The cited company
Tesco's Digital Transformation Strategy_3

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