Table of Contents INTRODUCTION...........................................................................................................................3 SECTION 1......................................................................................................................................3 Comparison based on strategy and operations............................................................................3 Company One: TESCO..............................................................................................................4 PEST analysis:............................................................................................................................4 SWOT analysis:.........................................................................................................................6 Recommendations:.....................................................................................................................7 Company Two: Sainsbury...........................................................................................................7 SWOT analysis............................................................................................................................8 PEST ANALYSIS :.....................................................................................................................9 Political Factor............................................................................................................................9 Economic Factor........................................................................................................................9 Sociological Factor....................................................................................................................10 Technological Factor.................................................................................................................10 Recommendations....................................................................................................................10 SECTION 2....................................................................................................................................11 Obstacles faced by TESCO when making leadership decisions...............................................11 Leadership concepts and techniques used at TESCO to overcome decision making barriers.12 Recommendations:....................................................................................................................12 CONCLUSION:.............................................................................................................................13 REFRENCES.................................................................................................................................14
INTRODUCTION Leaders are the key person of an organisation who are responsible to guide, lead as well as motivate employees to accomplish predefined business objectives(Amey, and et. al.,2018). As per the current trend, leaders are adopting new and evolve practices in order to manage work force in an efficient manner. In current report TESCO and Sainsbury has been taken into consideration which are retail giant based on UK. TESCO is a global brand which provides a range of groceriesand general items at global level. It is a multinational company has headquarters in England. It was founded in the year of 1919 by Jack Cohen. Sainsbury is also a renowned organisation of retail sector which owns several outlets in different countries. It deals in groceries and situated at London within UK. It is analysed that both of organisations undertake effective marketing and promotional strategies in order to attract more number of customers. In addition, they also undertake highly innovative and advanced approaches to survive at market place for longer run. In the following report PEST and SWOT analysis has been carried out in order to evaluate internal as well external factors that affects the performance of companies. In addition, it also discussed various constraints faced by leaders while guiding and motivating employees along with several advanced theories of leadership. SECTION 1 There are numerous factors of PEST analysis that affect the activities and behaviour of leaders, team & also individuals who are working within company. It can put negative as well as positive impact upon business operations. In addition different elements of SWOT analysis are also also included in report which affect leaders, teams and individuals behaviour in organisation (Dorac-Kakabadse,2017). Further a comparison has been also included in the report based on the strategies and operations of respective companies Comparison based on strategy and operations TESCOSainsbury Here,TESCOisprovidingproducts and services to customers at lower price inordertogainhighercompetitive Here, Sainsbury emphasis to provide better experience to customers that will help to retain them with company for
advantage.For this, it is associating with major suppliers to get necessary resources at minimum possible price. In addition, Company is using digital marketingapproachessuchassocial media, content marketing to enhance the market share of company at large level. TESCOuseseffectiveoperations managementthathelpstoeliminate wastageandunnecessaryactivities during production process tooperate business effectively. longer run. In addition, managers also usecompetitivepricingstrategiesto sustain at market place for longer run. Here, Sainsbury use effective SEO to improvetherankingofwebsitein various search engines such as Google, Yahoo and more. Here, it is analysed that Sainsbury uses Total quality management approach in order to develop high quality products to satisfy customers. Company One: TESCO TESCO is a multinational company which majorly deals in groceries and have outlets in different countries. It has nearly 7000 stores in various nations. It is a global brand which nearly working in 13 countries worldwide. There is higher competition is being faced by organisation at market place. It is analysed that entity has higher brand value which is helpful to attract more number of customers. PEST analysis: Political factors:It is an important factor which put a great impact on the behaviour and attitude of individuals who are working in company(Flanding and et. al.,2018). Here, TESCO is working at global level in different countries thus highly affected with changes in political conditions of various nations at global level. It is analysed that political environment of some countries are not stable which affects the strategies of company. It not only influence overall organisation but also people who are working within it. For instance, due to Brexit, managers also need to make necessary modifications in their existing policies and communicate it with employees.Positiveandnegativeimpactofabovestatedfactorsoverthebehaviourof individuals, teams and leaders are given as under:
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Positive impact:It helps to analyse current policies, changes and make modifications in the strategies and policies of company accordingly which is essential to manage the work force in an efficient manner. In addition, it also helps to minimize ambiguity and disputes arise at work place. Negative impact:Here, it is analysed that changes in existing government policy put a negative impact over the performance of individuals and teams. In addition, managers need to make necessary modifications in current policies which may oppose by subordinates. Economical:It comprises several elements such as demand, supply, profit, cost and more which put significantly affects overall business operations. In regards of TESCO, it is operating at global level in different countries(Franklin, and et. al., 2019). For this, managers need to aware about taxation policy, trade policies prevailing in different countries in order to undertake necessary changes. It is a analysed that TESCO is operating at global level thus operating cost of organisation is also high. In addition, economical factors also influence the performance of individuals, leaders which are discussed below: Positive impact:These factors helps to provide recent information about economic condition of country. With this, leaders of company are able to make effective strategies to face future circumstances that is essential to sustain for longer run. Negative impact: Here, leaders need to evaluate the current economical condition of country on continuous basis which is time taking process. In addition, they also need to make modifications in current strategies which will overburden employees and affect their performance. Social:Under this, several factors such as buying behaviour, attitude of customers, personality, perception are included(Gutierrez Jr, 2016). TESCO is highly affected with social factors as it need to adopt effective strategies in order to meet with the desires of customers. It is analysed that managers need to evaluate several factors in order to provide better products to consumers. Impact of these elements on the behaviour and performance of employees is given as under: Positive impact:It is essential to provide products and services to customers as per their requirement. It creates positive image of organisation at market place and give motivation to individuals and leaders to have association with such a renowned brand. This improves their future performance.
Negative impact:Here, individuals working in company are required to undertake extensive market research in order to meet with demand arise at market place in an efficient manner. This is time taking and also affect the performance level of leaders and individuals within entity. Technological:It refers to adopt new and advance techniques, methods to perform various business task in an efficient manner. It is monitored that TESCO is using digital marketing approaches such as social media, seo and more in order to attract more number of customers. For this company is adopting automation and soft wares to sustain in market for longer period of time. It influence current working environment of organisation which affect the performance of employees(Hart, and rt. al., 2019). Positive impact:New and evolve techniques are helpful and will provide competitive advantage to organisation. In addition, it will also help to improve the productivity and efficiency of subordinates. Negative impact:Here company is planning to use automation and robotics which may reduce the requirement of employees within company. Further, it may oppose by employees as due to this they may loss their job. From above discussion, it is analysed that are related to external environment and put substantial impact on performance of individuals and teams of organisation. These factors put negative as well as positive impact on leaders and employees which need to be evaluate on continuous basis. SWOT analysis: It refers to the internal analysis that comprises strengths which differentiate company from others along with weak points that need to be improved(Hislop,and et. al., 2018). In addition, it also comprises several opportunities that is essential for future growth and success along with threats that may restrict its performance. SWOT analysis of TESCO along with its negatively and positivev impact over employees and leaders is given as under: Strengths:It is analysed that TESCO is a global brand which has higher brand value at market place. In addition, it owns higher market share at international market which is essential to earn higher profit margin. Leaders and employees of company are able to get higher pay due to huge profitability of organisation which motivates them to work hard. Further, sometime, they
become careless and do not put more attention over business due to its higher growth and succes rate. Weakness:To stay in competition, TESCO provides quality products at affordable price range which increase its overall cost of production. In addition, organisation also faced several controversies in US and China market which affect its existing brand image. It is analysed that these points give motivation to employees to work with their full efficiency to ensure future growth and success of company. Further, it also de-motivates them and reduce productivity and outcome. Opportunities:There are several opportunities present at market place for future growth and success of company. TESCO can expand business in emerging markets such as Asia and more. Currently, it is only working in 13 countries and have the opportunity to explore operations in more nations. It will provide great opportunity to employees to explore in their career and undertake various functions in an efficient manner. Here, leaders and individuals need to prepare effective strategies and put more efforts for the betterment of whole organisation. Threats:Here, several threats are faced by company which creates constraint in its growth and success. TESCO has great threat from competitors and rival firms which are providing productsand servicesat relativelylower price. It inspiresleaders, teamand individuals to work effectively for growth of entity. Here, it also creates a hectic environment at work place and put a lot of work pressure on employees. Recommendations: On the basis of above discussion, following suggestion can be opt by company for improvements: Here, managers need to evaluate the external factors on continuous basis in order to improve policies and strategies of company and communicate it with employees on regular basis in order to get their support. It is analysed that subordinates generally oppose changes for this leaders need to arrange proper training and development program in order to make them familiar with changes and create positive environment at work place. Company Two: Sainsbury Introduction
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
SWOT analysis and PEST analysis is a framework of how internal and external factors may affect the working or decision of an organisation . SWOT stands for Strength , Weakness , Opportunity , Threats . PEST stands for Political , Economical , Social , Technological factors . Project management . Sainsbury's is an UK based organisation which is the second largest chain of supermarket in United Kingdom . It is having 16% share in supermarket sector in United Kingdom . It also provide financial services through Sainsbury's Bank . The PEST and SWOT analysis of Sainsbury revolves around the factors whichmay affect the working of the company . SWOT analysis SWOT analysis give us the insight about what all internal factors might affect our organisation . Strength 1.Theyarea150yearsoldbusiness enterprise so they are having a lot of loyal customers. 2.They are able to give their customers high quality products at low cost which helped them in retaining old customers andaddingnewcustomers(Hobbs, 2018). 3.The promotion strategies that they use are also innovative and eye catching , this gives them an upper hand over their competitors. Weakness 1. Like all other established retail brand they also have a problem with retaining customer who are switching brand . 2. With increase in competition they reduce their margins to attract customers which will not let them sustain for longer period . 3.Theyarealsonotsotechnologically advanced because of which their customers find it difficult to shop . Opportunities 1. Sainsbury's can expand its reach by online collaboration , Joint ventures , partnership etc. Threat 1.They are having a very stiff competition within every segment of retail sector .
to enter in new market . 2.Theyalreadyhaveanestablishedbrand namewhichhelpstheminattracting investments based on their equity . 3. As it's an already established brand name so its easy for them to enter a new market as they already having a loyal customer base . 2.Theirmaximumcompetitorsoperate themselvesthroughonlineportalwhichis convenient for the customers . 3.Thenewstart-upsareprovidingtheir products at a very attractive price range and with a lot of attracting benefits . PEST ANALYSIS : PEST Analysis is explained as the business tool to analyse the business opportunities and threats in the external environment. PEST analysis includes different external factors like Political, Economic, Sociological and Technological. Political Factor Political factor in PEST describes about the political framework which includes tax policy, tax reforms and restrictions, environment regulations, tariffs, political stability etc. The political environment can affect the business in terms of new policies introduced by government or new rules and regulation introduced by the government(Hosking, D.M. and et. al., 2018). Sainsbury business have the opportunity to expand it's business in the environment of UK by increasing international trade agreements and also Sainsbury can minimize the impact of the guidelineswhich includesthe accessibilityand affordabilityof the consumers. Sainsbury business can grow more in the UK environment because of the political stability of the government. Economic Factor Economic factor in PEST describes about the economic framework which includes economic growth/decline, interest rate, exchange rate, inflation rate, cost of living etc. These factor have impact on the economy and performance which results in the impact on the organization and it's profitability. Economic environment of UK can affect the Sainsbury business in terms of growth because UK economy is a developed economy which can help the Sainsbury business to grow slow and stable. Sainsbury business in UK environment also posses a threat due to the rapid growth of developing countries. The economical factor which works in the
favour of Sainsbury is that the inflation rate in UK is 0.7% that is very low in comparison to inflation rate of other countries like USA where inflation rate is 1.2% whereas the inflation rate of China is 2.1% . Sociological Factor Sociological factor in PEST focus on the social environment and emerging trends. It helps to understand the customers needs and wants(Kumar,2019). Factors include cultural barriers, lifestyle attitudes, population growth rate, family demographics etc. Sainsbury in UK environment arises the opportunity to grow due to the busy lifestyle and schedule of people which encourages them to buy groceries in easy and fast way. Sainsbury has the opportunity to sell the products to satisfy consumer preference in the market. The healthy lifestyle trend is a opportunity for the Sainsbury as it encourages the organization to sell healthy products but it also creates an opportunity to include the healthy product in it's product range. Technological Factor Technological factor in PEST focus on the technological innovation and development that could affect a market or industry. It includes changes in digital technology, automation research and development etc(Maheshkar, and et. al., 2018). It also determines the affect of new technologyontheproductandservices.Sainsburybusinesscanachievethecompetitor advantage over their competitors because these resources are available in abundance inthe UK environment which can help them toincrease it's research and development investments which can help their business to be effective and efficient. As UK is one of the developed country and also a developed economy it makes them technologically advanced country so it gives Sainsbury to achieve competitor advantage over their competitors in terms of technology. Recommendations On the basis of PEST analysis and SWOT analysis Sainsbury have to work on their strategy formulation regarding their product range. Sainsbury can expand their business by focusing on the revenue generation and focusing on promoting the brand at big level. This can help Sainsbury to achieve it's goals and objectives and also helps in expansion of their business in other countries also the Sainsbury can generate higher revenue by providing best quality products to the consumers and at affordable prices. The Sainsbury has to deal with the fierce
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
competition and with the higher customer expectations the brand has to implement the effective and efficient strategy. SECTION 2 INTRODUCTION Out of the two organisations described in section one, the company that is discussed below is the British retail corporate TESCO. TESCO is one of the largest retail brand of UK and has outlets across 14 countries. Various obstacles faced by the corporate while making decisions related to leadership along with the use of models such as Schein's organisational culture model to face these challenges. Obstacles faced by TESCO when making leadership decisions Reduced employee engagement:Effective employee engagement is crucial to positive and healthy work environment. This engagement drives employees to work more efficiently as they feel more connected to the organisation(Pruzan, and et. al., 2017). Depressed employee engagement gives the company a disadvantage in the form of unmotivated employees. The retail sector is considered to be a sector with low career growth, TESCO has not implemented any measures to change this assumption when considering their employees. This along with non transparent structure for promotion is the reason for reduced employee engagement and high absence. Absence of proper communication:Communication plays a crucial role in construction of a well managed workplace. The absence of communication or the presence of incomplete or improper communication can create new obstacles for the organisation instead of solving previous problems. TESCO has faced many obstacles during the pandemic due to absence of proper and efficient communication at all levels of the organisation. Absence of complete agreement:The presence of total agreement regarding any decision about the operations of the organisation plays a crucial role in effective leadership judgement making. If the team members do not completely agree on the execution of the tasks they are about to perform, chance of formation of various conflicts increases. This can impact the organisation and cause serious disruptions in the successful implementation of the task at hand. TESCO has faced the results of this barrier as they do not involve every employee when making
important decisions, this lack of employee participation results in some employees disagreeing with the leadership and administrative decisions Cultural Differences:The existence of diversified workplace requires the leadership to manage the viewpoints of the employees from different cultures in a way that they impact the business positively. TESCO has faced allegations of treating their employees on the basis of race recently and this has shown a lack of effective cultural management decisions taken by the leadership(Van Wart, 2017). Leadership concepts and techniques used at TESCO to overcome decision making barriers Schein's model of organisational structure: According to this model an organisation has three levels of culture which are Artefacts:These are the visible factors belonging to the culture of an organisation such as technology, language and ambiance of the workplace. This level of culture is easily understood by external people. Values:The common opinions and beliefs held by every employee are the values of that organisation and form the cultural environment of the organisation. These values help the employees in determining the correct paths and strategies for any given operation held at the organisation . Assumptions:This involves the part of the cultural environment of the organisation which is synonymous to rules of the organisation. These assumptions include relations and executionofvarioustaskscompletedbytheemployeesendingstrugglesandleadership procedures. Recommendations: On the basis of above report, it is analysed that further improvements are need to be done for further improvements: There is a requirement of proper communication between leaders and subordinates in order to create positive environment at work place. In addition, appropriate methods need to be use by leaders and managers after evaluating their benefits and drawbacks in order to guide and lead subordinates in an effective manner.
CONCLUSION: With above discussion, it is monitored that leaders are crucialpart of a company and play a great role in motivating and inspiring employees. There are different tools such as PEST and SWOT analysis which also put significant impact on overall performance of employees, leaders, teams of organisation. Here, several advance techniques and approaches are used by leaders in order to guide ad lead employees in better manner. Discussion has been carried out about various leadership methods such as lewin; s three step model and more.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
REFRENCES Books and Journals Amey, M.J. and Eddy, P.L., 2018. Leading in the middle.Understanding community colleges, pp.203-226. Dorac-Kakabadse, A., 2017.Creating Futures: Leading Change Through Information Systems: Leading Change Through Information Systems. Routledge. Flanding, J.P., Grabman, G.M., Cox, S.Q., Flanding, J.P., Grabman, G.M. and Cox, S.Q., 2018. Leading Change in the Digital Era', The Technology Takers. Franklin, D. and Marshall, R., 2019. Adding co-creation as an antecedent condition leading to trustinbusiness-to-businessrelationships.IndustrialMarketingManagement,77, pp.170-181. Gutierrez Jr, G., 2016. INFLUENCER: THE SCIENCE OF LEADING CHANGE.The Journal of Applied Christian Leadership,10(2), pp.96-98. Hart, P.T. and Tummers, L., 2019.Understanding public leadership. Red Globe Press. Hislop, D., Bosua, R. and Helms, R., 2018.Knowledge management in organizations: A critical introduction. Oxford university press. Hobbs, B., 2018.The Relationship between a Pastor's Perception of Credibility, Focus, and Church's Organizational Crisis and the Process of Leading Change within the First Five Years of His Tenure(Doctoral dissertation, Southeastern Baptist Theological Seminary). Hosking,D.M.andAnderson,N.eds.,2018.Organizationalchangeandinnovation: Psychological perspectives and practices in Europe. Routledge. Kumar, K.B.S., 2019. Leading Through Disruption.Effective Executive,22(1), pp.5-6. Maheshkar, C. and Sharma, V., 2018. Cross-Cultural Business Education: Leading Businesses AcrosstheCultures.InHandbookofResearchonCross-CulturalBusiness Education(pp. 1-35). IGI Global. Pruzan, P., Pruzan-Mikkelsen, K., Miller, D. and Miller, W., 2017.Leading with wisdom: Spiritual-based leadership in business. Routledge. VanWart,M.,2017.Leadershipinpublicorganizations:Anintroduction.Taylor& Francis.Kelley, B., 2016. Leading Change. InCharting Change(pp. 159-170). Palgrave Macmillan, New York.