Collective Strategy Development: Tesco plc Case Study Analysis

This report provides a comprehensive analysis of collective strategy development, using Tesco plc as a case study. It explores the political, social, ethical, and operational needs for common strategies between organizations and administrations, identifying methodologies for internal and international collaborative strategy development. The report examines key policy and strategy issues, the influence of various factors on collective strategy, and the resolution of tensions between organizational cultures and ethics. It also evaluates the use of strategic intelligence and contributes original thinking to the formulation of collective strategy. Furthermore, the analysis differentiates between individual organizational strategy and collective strategy, examining the links between aspirations of collective strategy and the ethical, cultural, and operational objectives of stakeholders. Finally, it provides a critical understanding of different organizational and methodological approaches to organizational and collective change, offering insights into how organizations can improve their impact on component organizations, administrations, and stakeholders.

Collective Strategy Development

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1. Political, social, ethical and operational needs for common strategies between
organisations and administrations..........................................................................................1
1.2. Identification of methodologies through which collective strategy is developed internally
within each organisation and externally international collaborative basis.............................3
1.3 Identification of opportunities for future development of collective strategies to improve
the impact on component organisations, administrations & stakeholders.............................5
TASK 2............................................................................................................................................7
2.1 Define collective strategy and consider how it is formed from the policies of the
component organisations, administrations and key stakeholders...........................................7
2.2 Identify the key policy and strategy issues which influence collective strategy..............8
2.3 Explain how collective strategy is influenced by the reality of factors – political, global,
public interest, media impact, and social, cultural, religious.................................................9
TASK 3..........................................................................................................................................11
3.1 Assess how to resolve the tensions between the cultures and ethics of contributing
organisations, administrations and key stakeholders............................................................11
3.2 Evaluate how strategic intelligence is used in the development and formulation of strategy
..............................................................................................................................................12
3.3 Contribute original knowledge and thinking to the formulation and development of
collective strategy.................................................................................................................13
TASK 4..........................................................................................................................................14
4.1 Analyse the differences between the aims and purposes of individual organisational
strategy and collective strategy............................................................................................14
4.2 Links between aspirations of collective strategy and ethical, cultural and operational
objectives of contributing organisations, administrations and stakeholders........................15
4.3 Critical understanding of different organisational, philosophical and methodological
approaches to organisational strategy affects organisational and collective change............17
CONCLUSION..............................................................................................................................18

REFERENCES..............................................................................................................................19

INTRODUCTION
Collective Strategy is being considered as an attempt of companies to maintain inter-
dependencies through substituting contractual for competitive interconnections with the help of
social environment. This is being considered as an essential component which plays a crucial
role within an organisations that are doing business at both domestic and international level.
Under inter-organisational strategic activity, it is required for organisation's directors, senior
managers to carry good strategic leadership skills. In this report, company which has been
chosen i.e. Tesco plc. It was found in 1919 and its headquarter is at Welwyn Garden
City, Hertfordshire, England, United Kingdom (Armstrong and Taylor, 2014). In present, Tesco
plc is the third largest retailer on the basis of revenues and having around 6,500 stores all over
the world. It's founder is Jack Cohen. In 2017, net income which was made by this organisation
was £54 million.
Assignment is going to include analysis of different factors like political, social, ethical
and operational needs related to strategies among organisations and administrators. It will also
put light over methodologies of collective strategy which is being developed internally under
organisation and externally international collaborative basis. On the other hand, it will also focus
over different key policies along with strategical issues which influence collective schemes.
Away with this, assessment will show links in between aspirations of collective strategy and
ethical, cultural and operational objectives of contributing organisations, administrations and
stakeholders. Lastly, an analysis has been done in differences among aims and purposes of
individual organisational strategy and collective schemes (Axelsson and Easton, 2016). It will
help organisations in making better collective strategies through which they can develop
themselves over international market.
TASK 1
1.1. Political, social, ethical and operational needs for common strategies between organisations
and administrations
According to Astley and Fombrun, (1983), collective strategy can be defined as an
analysis framework which helps in identifying collaborative strategies that is being developed by
company with partners including rivals. It can be said that collective strategy plays a crucial role
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in strategical management particularly when it is desired to attain goals and objectives in
competitive business environment.
Apart from this, it is being analysed that there are various factors like political, social,
ethical which may affect operational needs of organisations that have collaborated with each
other. Both of the organisations Tesco plc and Sainsbury's done collaboration with each other
and set a common strategy i.e. to fix prices of commodities so that their sales do not get
decreases. But, it is being found that there is a need of political, ethical and social elements while
setting over common strategy. With the help of these factors, Tesco plc and Sainsbury's can
influence their stakeholders to accept the changes or strategies that are being made by them.
Political : Government plays a crucial role when companies develops a strategy. It is
mandatory for Tesco plc and Sainsbury's to look at the laws that have already been made by
them on set strategy. For an example: government fixed price of a product around £25, then both
of the companies have to follow it. On the other hand, it is also essential for organisation's
management so that they may manage their operations as per given rules and regulations.
Common strategies will be used by both Sainsbury and Tesco regarding political changes made
by government. For an example, pricing strategy will be same for both companies if the prices of
products are same fixed by local government in both nation.
Social : Trends and needs of customers gets changes on a regular basis. Therefore,
demand of a particular commodity or a whole segment of products can get reduced due to
alterations among consumer's needs (Balogun and et. al., 2014). Therefore, social element is
being considered as another need for both of the organisations to understand it and make changes
as per the requirements. Apart from this, administrators in present context may take different
initiatives so that they meet the requirements of consumers. People have their own choices,
preferences and tastes that both Tesco and Sainsbury should analysed social trends of that
particular nation where they are operating in order to meet customer requirements. This will also
help to know which product is demanding within nation.
Ethical : Both of the companies (Tesco plc and Sainsbury's) are having good name in all
over world. Therefore, it is required to follow business ethics of different countries in which they
are doing business. Collaborative approach may aid both of business firms in making each other
stronger through supporting over weak points. For an example: Sainsbury's is out of funding to
implement common strategy in which they have agreed on. Here, Tesco Plc may support them
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over. Therefore, it can be taken as a need of ethical considerations which will help both of
companies in adopting common strategy. Apart from this, administrators may go into meetings
with company they have done collaboration with so that to imply plan in correct time. Ethics
provides a reflection of contribution of business to the well fare of society. Ethics are also related
to the contribution of ideas concerning management roles and responsibilities. Common
strategies are affected by ethics of people living in different countries that Tesco and Sainsbury
should follow ethics on individual level.
Operational needs: Every single business firm carries some sort of gaps in their
operations which needed to be filled right on time. Therefore, collaborative strategy may aid both
of companies Tesco plc and Sainsbury's in grabbing good position in short period of time and
remove those gaps with the help of each other. Operational needs are different for both firms that
market segment is different as well as operational needs accordingly. Tesco and Sainsbury
should evaluate their operational needs in order to achieve objectives. For an example, resources,
personnel and work progress.
Henceforth, if Tesco Plc and Sainsbury's consider above discussed elements while setting
a common strategy then it may aid them in reaching to desired goals and objectives. Through
this, both of organisations can influence their key stakeholders in taking right decisions related to
choosing correct product with quality.
1.2. Identification of methodologies through which collective strategy is developed internally
within each organisation and externally international collaborative basis.
Organisations or partners that have collaborated may set common goals and aims. In
order to attain those goals and objectives, it becomes vital for them to have collective strategy. It
is being analysed that for success of a company, it is necessary to collaborate with stakeholders
or with their partners so that no issue come across while executing a plan. It is also required for
companies that have collaborated and are doing business at international level to adopt collective
strategies so that to earn profit or to attain all the business concerns in successful manner.
There are many methodologies/approaches present in world through which collective
strategies can get successfully adopted within each company that have collaborated or among
partners & stakeholders (Bangs and MacBeath, 2012). Both Tesco plc and Sainsbury's if wants
to collaborate than they may use different methods/approaches in which collective strategy can
easily be adopted which are given beneath:
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 Setting up for success: Agreeing on goals and objectives of a group with in an
organisation can help in pulling out favourable outcomes. Communication plays a crucial
role in this approach. If communication gap among stakeholders and organisations will
be zero than it may aid company in making right decisions. For an example : Tesco plc,
focused over improving their sales up-to 2% within 3 months. Therefore, it is required for
them to make modifications in their grocery products and then promote them over
different media. Decision was made by group of seniors of Tesco plc. This activity
requires high amount of funding. Thus, informing stakeholders about plan can help Tesco
plc in making modifications in manufacturing process as per requirements. This can be
considered as a clear instance of evolvement and development of collective strategy. Action Planning: This is being considered as another approach through which
development or evolvement can be done of collective strategy among organisations that
have made collaboration at international level. This type of planning is much complex in
nature because two corporation's objectives do not match with each other. It is required
for both of firms to agree over one objective. This can only be done through effective
communication or relation among board of directors of two organisations that have
collaborated. For an example: Tesco Plc and Sainsbury's who collaborated and have
agreed over changing technology at their manufacturing area so that to improve quality of
products. They both have used different effective action tools so that to facilitate
collective thinking and planning.
 Maintenance and Growth: Modern world is filled with high competition. Therefore, it is
required for companies to take over small or collaborate with similar type of
organisations so that to gain competitive advantages. Maintenance and growth can also
be considered as an effective method through which Collective strategy can evolved or
developed. Strengthening a partnership may aid in taking use of collective strategy
among Tesco plc and Sainsbury's (Bird and Barnes, 2014) On the other hand, it is
required for collaborative companies like Tesco plc & Sainsbury's to look into different
aspects through which they can strengthen their partnership. For an example: Looking
into weak points of each other and telling about the areas where they are lacking can help
both collaborated business firms to develop effective relationship or strengthen the
partnership.
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In addition to this, Internal factors include different practices such as human resource
management, sales, marketing and operational activities. On the other hand, external factors on
the basis of national and international collaborative basis may encompass political, social, legal,
environment factors. Taking help from both internal and external factors will help to make
unanimous decisions regarding developing a collective strategy. Value chain analysis is a useful
methodology can be used by both firms. PESTLE analysis is also useful to develop collective
strategy. It is nothing but de ned as a framework that supports in understanding various activities
through which the business attain competitive advantages in comparison with the other rivalry
firms in the market effectively. Value chain analysis increase shareholders values. Primary
activities such as inbound and outbound logistics, services and operations and sales and
marketing. In addition, supporting activities such as technological development, procurement,
infrastructure and human resorce management. Cost leadership strategy will also faciliate
effective information technology system within firms.
1.3 Identification of opportunities for future development of collective strategies to improve the
impact on component organisations, administrations & stakeholders
In business world, every single organisation wants to have a secured future looks to have
stronger sustainability. Collective strategies can help companies to manage their inter-
dependence at social environment and can create high number of opportunities as well. Both
administrators and stakeholders are being considered as major components of an organisation
and they also plays an important role for business firms and impact over them. Some of
opportunities that can give Tesco Plc and other companies with the help of collective strategies
are given below: Entering new geographical markets (developing countries) : Launching business in a
whole new country who are already having a stronger economy can be taken as an
opportunity for Tesco plc. It will majorly impact over stakeholders, administrators as
well as on company. Here, interdependency of collective strategy will help Tesco plc in
taking different initiatives. Entering a new market with products will help company in
giving high amount of returns over investments that has been made by key stakeholders
of Tesco. For an example : Tesco Plc has made their objective to launch its stores in
India. Civilians of India majorly follows various cultures (Bisbe and Malagueño, 2012).
Therefore, if Tesco plc understands that what exactly people with distinctive culture are
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looking for than it will help them in making modifications in grocery products as per the
requirements. This will develop their right opportunities. Focusing on a larger elderly population with greater spending power : This is being
considered as another opportunity that may brought by collective strategy for
organisations. If Tesco plc, keeps its focus over targeting elderly people who are mostly
retired or stays at their home in high numbers then it can be said that company may
improve its sales and attain specific goals and objectives as well. For an example: Tesco
plc keeps its focus on women who have high spending power and developing right
products for them as per the required prices. It can be taken as an effective collective
strategy that may impact positively over management, stakeholders and over company as
well. For an example: targeting women and men with age over 35 as they majorly carries
high spending power of money than segment of demographic. This will help Tesco Plc
in giving good training to staff members so that they can deliver right service with
relevant resources. Online marketing : This is being taken as an effective opportunity that can be given by
collective strategy which can impact over Tesco plc and its stakeholders as well.
Therefore, it can be considered as an effective approach through which company may
improve profit margins. On the other hand, if organisation will focus over online
marketing than it is may be possible that their sales will directly improve. Through this,
Tesco Plc may secure its future. For an example: Using right social media tools like
Facebook putting some ads over there will directly grab attention of customers. This is
being taken as a good instance of direct communication where company is delivering
information to consumers of what they are selling. It will majorly impact over sales of
company and will help Tesco plc in giving good rate of returns to its key stakeholders.
 Opportunities which might open up due to legislation changes or political changes :
There are many countries that are having good economy in which Tesco Plc is not doing
business. This is being taken as an effective collective strategy which can positively
impact over company, administers and its stakeholders. Slight change in legislations can
help organisation in generating good revenue (Biscop, 2016). For an example : Location
like India's economy is rapidly growing and have made liberalised policies for
organisations that are looking for business expansion. Using right resources like perfect
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budget may aid company in grabbing a good position and would not cost much to both
Tesco plc and do its stakeholders as well.
As the market is increasing for both Tesco and Sainsbury, different strategies are required
to extend the global reach and also there are chances in which company may face challenges in
terms of legislation, competition and many other cultural and non-cultural factors. By entering in
markets of developed countries is also a strategic approach to expand business and operational
activities. The focus should be on larger elderly population with effective spending power.
Online marketing is also an approach that it helps to reach number of customers all around the
world. This will help to compete others in the market by enhancing market share. Political
changes and legislation changes can be an opportunity for businesses if used and followed
accurately and properly.
TASK 2
2.1 Define collective strategy and consider how it is formed from the policies of the component
organisations, administrations and key stakeholders
Collective strategy can be understood as a collaborative effort which has been done by a
group of people, partners or organisation so that to meet the requirements or aid in attaining
specific goals and objectives. It can be said that majorly there are two factors that may majorly
impacts over formulation of collective strategy and these are internal and external. In present
context, Tesco plc have focused over making collective strategy with Sainsbury's. Some of its
internal factors like: Human resource management, health and safety and inner environment may
help company in formulating collective strategy (Booth and Cammack, 2013).
On the other hand, some of external factors like political, social, technology, economy,
legal, exterior environment which may majorly influence over collective strategies of Tesco Plc
and Sainsbury's. Away with this, it has been evaluated that majorly there are many policies
related to organisation, administrators and key stakeholders which may aid Sainsbury's & Tesco
plc in developing the collective strategy.
Organisation: Vision of Tesco plc is “We make what matters better, together.” and have
adopted a policy named as protector line which helps in protecting staff members, suppliers and
their partners from wrongdoings. Therefore, this policy can be helpful in removing all the issues
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and aid company in making or formulating the collective strategy with Sainsbury's which is
doing business in the same field.
Administrators: One of the policy of Tesco plc that has been made by management is
that working environment of workstation and of shops should stay much healthy and positive.
Thus, it can be helpful in making collective strategy. This can be understood with an example: At
the time of collaboration of Tesco Plc and Sainsbury's, in meetings seniors of Tesco listens to all
the suggestions that are being given by their subordinates and then only make decisions which is
a good point through which it may aid in making or formulating the collective strategy.
Key stakeholders: Tesco plc, takes CSR activities into the action or in considerations in
every quarter of a year. It can be taken as an activity related to stakeholders and have decided to
use 10% of profit to spend over improvising the environment and living standards of social
people (Buller and McEvoy, 2012). This can be adopted by Sainsbury's as well and help in
forming out collective strategy to gain many competitive advantages.\
Two levels of strategic planning is cricual for businesses in terms of collective strategies.
Such as business strategies and corporate strategies. Corporate strategies have broader focus
towards setting business. Collective strategy is nothing but a systematic approach by
collaborating organizations with a view to deal with the variation in their inter-organizational
environment. Such strategies may be proactive, forestalling unpredictable behaviour by business.
2.2 Identify the key policy and strategy issues which influence collective strategy
Tesco plc which is doing business at international level and have around 6500 stores.
Thus, it is being analysed that there are ample number of policies that have been made by Tesco
plc so that they do not get into trouble while doing business. Some of policies related to human
resource management, manufacturing process and quality are made by Tesco Plc which may
impact over collective strategy. Collaboration with Sainbury's of Tesco plc may aid both of them
in hitting their targets or attaining goals and objectives.
Since, both of business firms are doing business at international level, therefore it can be
said that there are many legal and ethical issues which are being faced by this company. Further,
Tesco plc is also required to comply with the Canadian, US and European laws in relation with
the international business transactions (Chan and Hui, E .S. I., 2014). The most important policy
under the international business policy is “International Bribery Legislation”. Canadian as well
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as United States has various laws that prohibit the local organizations to engage into illegal and
corrupt practices at the time of dealing with the foreign government. When speaking in relation
with Canada, this type of law is popularly known as “Corruption of foreign public official act”
and equivalent to this, in US, it is being famous by the name “Foreign corrupt practices act”.
Under this law, offering gift, bribe, payment or any other benefit for the purpose of having some
business advantage is considered as a great offence. In addition to this, companies or individual
found engaging into these practices that will be liable for various penalties, which may include
personal as well as corporate fines or imprisonment of individuals.
Henceforth, this can be taken as an issue for Tesco plc at the time of developing
collective strategy and it may also impact over funding that has been made by organisations in
order to collaborate with one another. Therefore, it is required for both of the organisations to
consider all the factors through collective strategy can be developed amongst Tesco Plc and
Sainsbury's.
2.3 Explain how collective strategy is influenced by the reality of factors – political, global,
public interest, media impact, and social, cultural, religious
Collective strategies of a company can be influenced by many factors like global
political, public media interest, religious, social, and cultural. All of these factors and their
impact over collective strategies are given beneath:
Global: This factor is mostly concerned with external environment. Thus, this element
can be taken as something which may impact over collective strategy and over organisation as
well. It is much necessary for Tesco plc to understand this factor so that it do not impact over
developing collective strategy with Sainsbury's. Doing business at international level is not an
easy task as firms have to follow all the rules and regulations that are being made by parliament
of different countries (Cornwall, 2011). For an example, if the government has imposed high
regulation and law in relation with conducting a business in the domestic as well as international
market, than there are more likely chances that the frequency of pairs wise cooperative behaviour
of all business will work in the same industry be very low. Further, if government imposed
moderate laws regarding trade than the frequency of collective behaviour will be high.
Political: It relates with all the laws and policies that has been made by government.
Slight change in policy can impact over collective strategies which is being made by group of
people in order to attain a goal or by company so that to enhance sales or reputation among
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competitive market. For an example :- Change in taxation rate in United Kingdom may impact
over Collective strategy among Tesco plc and Sainsbury's in terms of ther collective behaviour
which can be low or high as per the rules and regulations imposed by government.
Public interest: It is being taken as another crucial factor which may put impact over
collective strategy which is being made by Tesco plc. Thus, it is required for company to focus
over different perspectives of public and of others as well. With the help of this, organisation
may determine whether the collaboration with Sainsbury's or not. For an example, Different
firms such as Sainsbury and Asda are offering junk foods and products which are not relevant for
public but it is difficult to make collective strategy in this type of situation as they have heir own.
Media: This is another element that have impacted over collective strategy which is
being made by Tesco Plc with Sainsbury's. Media plays a vital role in promoting products and
services over different areas. Social media tools and other related digital technology tools may
aid Tesco plc in making promotion that they have taken over Sainsbury's or collaborated with
them. For an example media have power to influence collective or inter-organisational strategies
of business in terms of providing right or wrong information regarding products and services
sold by companies in the market towards customers.
Religious: It is being considered as one of the crucial factor that may influence collective
strategy. Therefore, it is required for Tesco plc to focus over this element so that to imply
collective strategy in much effective manner. With the help of this, Tesco plc needs to
understand the concept which is related to religion and do not take any decision related to against
the religions that has been followed by targeted customers. For an example, related to an
overseas partner organisation in the middle east, India or China religious has a great impact on
business that people have various religious and concepts which should be followed by firm in
order to remain effective in the market.
Social: Trends majorly gets changes as per the needs and wants of customers at
international level. Therefore, it is being analysed that small changes among trends may affect
collective strategy. Both Tesco plc and Sainsbury's needs to look into every single aspect related
to social factor which is related to adopted policies by both of organisations and make
modifications as per needs so that collaboration can get done in much effective manner.
Cultural: Tesco and Sainsbury's both are famous brands and are doing business in
international level. Thus, it can be said that companies may face number of differences among
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different nations. Thus, it may influence both organisations through adopting right collective
strategy which may become beneficial for both of them (Crass, 2013).
In addition to this, cultural and social factors also have an impact on formulation and
development of collective strategy. The business is operating in grocery and food department
that many other eatables in different part of the world. Asda and Sainsbury which are similar like
Tesco offers same food which is unhealthy and junk food. Thus, it is hard to formulate a
collective strategy as they have their own.
TASK 3
3.1 Assess how to resolve the tensions between the cultures and ethics of contributing
organisations, administrations and key stakeholders
In order to attain success along with growth in today's dynamic business environment it is
much required for company to focus over number of factors like political, environmental,
economical, social and many more while developing right collective strategy. Process of this
type of strategy is enclosed with number of procedures and steps. It is required to look for the
company with which it can collaborate so that to improve profit margins. Apart from this, it is
being analysed that culture and ethics are the two main factors at international level may bring
various number of tensions among organisations, administrations and stakeholders as well.
Both of the business firms like Tesco plc and Sainsbury's typically face many challenges
in cultural and ethical context while developing a collective strategy. In order to develop a
collective strategy, large number of organizations operating in the same market or industry
collaborating their strategies with each and other and formulate a collective strategy for the
whole. However, it is not such an easy process. Ethical issues among the contributing companies
are very harder to detect and it is more difficult to provide remedy as well. On the other hand,
cultural issues are easy to detect. Each and every organization like Tesco plc, Sainsbury's and
etc. have their own and unique culture. Employees work as per their work culture and in the
process of developing a collective strategy, this factor can offer many tensions to the
management of the companies. Thus, it is required for Tesco plc to develop policies so that they
can collaborate with Sainsbury's in much smoother manner (David, 2011) Here, it is being found
that administrators also plays a crucial role where company like Tesco plc tries to make
collective strategy. They can motivate their subordinates to understand and get knowledge of
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culture which is being followed by other firms. Apart from this, some of key stakeholders of both
of the organisations like BOD may give logical arguments in order to remove tension or barrier
from both of business firms that have decided to develop collective strategy to attain specific
goal.
3.2 Evaluate how strategic intelligence is used in the development and formulation of strategy
It is being analysed that success of an organisation or business strategy relatively stay
based on different skills along with ability of corporate strategist and management team. If Tesco
plc is looking to develop collective strategy then there are a set of information which is needed
by organisation. It is required for Tesco Plc to have effective intelligence department so that to
develop or formulate the collective strategy. There are few steps through which strategic
intelligence can easily be gathered from business world that may aid company in collecting
relevant data so that collective strategy can get adopted. Some of activities like:
 Problems that needs to be resolved
 Need for consistent planning
 Investigating, gathering and then combining the information
 Delivering the answers
Thus, these is being considered as systematic approach which may aid organisation in
developing right policy (Dul and et. al., 2012). On the other hand, it is required for Tesco plc to
focus over different ways through which strategic intelligence can help over application of
collective strategy. Mainly, it is being found that need of strategic intelligence is much essential
so that to explicate collective strategy. Tesco plc majorly focuses over plans and strategy that are
meant for long term, Therefore, in order to develop an effective and strong business strategy it is
required for Tesco plc to focus over a systematic pattern of strategic intelligence which includes
collection, processing, analysis, and dissemination of aptitude required at the time of adopting an
effective strategy. After collection of the data related to relevant objective which is formulating
collective strategy in present context, it is required for organisations to focus over analysis. With
the help of analysis of strategical intelligence, it may aid Tesco plc to make decisions or take
initiatives so that it may aid in adopting collective strategy. With the help of right decisions at
correct moment, this organisation can easily develop collaborative based strategy with other
companies like Sainsbury's or a group with in an organisation can collaborate with other groups.
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3.3 Contribute original knowledge and thinking to the formulation and development of collective
strategy
As given by Hacklin and Wallnöfer, (2012), collective (multi-stakeholder) strategy is
being considered as an effective approach through which organisations can easily grab good
position at marketplace and can collaborate with stakeholders in crucial times. Thus, it is
required for company to focus over different areas so that to this can impact over different areas.
As given by this author, it is being analysed that collective strategy may aid company in focusing
over which decision needs to be taken so that collaboration can easily be done with other
business firms. On the other hand, collaborative strategy and its implementation over groups or
over companies requires huge cost and it may consume time as well. But, it reduce all the
chances of not hitting targets in given time frame. Stakeholders like BOD, employees and others
of Tesco plc can develop collective strategies at workstation so that to meet necessary
requirements. It has also been analysed that, it is pretty much required for management and
administrators of Tesco Plc, to take into consideration the formulation of collective strategy.
With the help of collective strategy, Tesco plc may directly develop different
opportunities. Apart from this, collaborative efforts can be considered as something which aid
organizations in contributing will substantially provide benefit to the society, environment,
community. But, at the time of implementing the collaborative approach, there are many barriers
which stay present and majorly impacts over applying it (Escobar, 2011). Culture, social, legal,
political etc. are some of the factors through which it can be said that collaborative strategy can
get affected. Thus, it is required for Tesco's stakeholders which affect the development of
collective strategy apparently. When talking about the formulation and development of collective
strategy, there are mainly three phases that needs to be considered by the management. The very
first stage is of diagnosis. Herein, analysis of internal as well as external environment of the
contributing Tesco plc is being done. The next stage is of formulation, in which the necessary
objectives as per the analysis so conducted are devised. Finally, the last stage is implementation.
In this stage, all the developed strategies and plans are put into action.
Henceforth, formulation of collective strategy related to key stakeholders where
employees may aid Tesco plc in attaining desired goals and objectives in much effective and
efficient manner through developing collaboration among employees and board of directors.
Effective employee relation will help Tesco plc in grabbing good position at marketplace.
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Collaborative efforts by business helps to provide benefits to environment, society,
employees, community and stakeholders. It is not easy for business to formulate strategy for this
as a lot of difficulties arises in terms of legal, political, social and cultural. Three phases should
be considered by firm such as diagnosis in which internal and external environment analysis of
business is done. Second phase is formulation, here objectives as per the analysis conducted and
devised. The last stage is implementation where all developed strategies and plans are put into
action.
TASK 4
4.1 Analyse the differences between the aims and purposes of individual organisational strategy
and collective strategy
Organisational strategy is being considered as a dynamic long-term plan which helps in
developing an appropriate pattern towards recognition of targets or vision of a business firm. On
the other hand, collective strategy can be known as an analysis of a framework that aid in
distinguishing collaborative strategies which is being developed by company with partners
including rivals. Relationship in between these strategies is that they both may give long term
benefits to collaborative firms (Greer and Hauptmeier, 2012). Long term goals majorly stays
beneficial for every single firm in order to sustain at marketplace for a longer period of time.
On the other hand, there are many differences present amongst individual organisational
strategy and collective one. Lets take an example of two famous firms like Tesco plc and
Sainsbury's in order to understand differences amongst both of strategies. The distinction among
two and their purposes and aims are being given underneath:
Collective strategy's aim and purpose:
Main purpose and of collective strategy which is being adopted by Tesco plc is that to
follow guidelines which has been set by European Union at the time of Brexit where United
Kingdom got evicted. This scenario brought assortment amongst laws and regulations which was
related to employment, health, trade, safety and etc., which made this organisation to collaborate
with Sainsbury's which was doing business in same sector. This can be considered as a good
example of showing proper purpose along with aim related to adopting collective strategy. It can
also be understood with the help of considering an instance of rendering quality of grocery
related items to consumers. Collective strategy involves stakeholders in terms of funding
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providers, customers, shareholders and partner collaborative business. There are many purposes
to follow and formulate collective strategies and one of them is to follow European Union
Guidelines in terms of health and safety, education and environment.
Individual organisational strategy:
In present context, main aim of business individual organisational strategy is that it may
aid company in focusing over products and services (Organizational strategies for coping with
organizational change, 2018). It is being found that there are ample number of individual
organisational strategy can be adopted by business organisations. It can be said that company
needs to adopt changes so that to sustain at marketplace for a longer period of time. Here, Tesco
plc has made an individual's organisational strategy which is business expansion and at the
moment organisation is having around 6,500 stores all over the world.
Henceforth, it can be said that there are various differences stays among individual
organisational and collective strategy. With the help of this, Tesco Plc can take different
initiatives related to different goals and objectives. Apart from this, both of strategies differs
from each other (Haipeter, 2011) It is the responsibility of organisations to look into different
aspects so that to make determinations in much effective and efficient manner. Through this,
Tesco Plc may directly hit its targets whether it is individual related aims or collaborative
objectives. As the firm is operating in domestic market and extending reach to the global market.
Expansion strategy include these elements and factors for the purpose of availing different
opportunities. Further, with a view to gain loyalty from the consumers, the core purpose of Tesco
behind the development of strategy is to provide value to them. Lastly, the company also aims to
grow the core business of UK.
4.2 Links between aspirations of collective strategy and ethical, cultural and operational
objectives of contributing organisations, administrations and stakeholders
It can be said that there are ample number of conflicts that stays present among links in
between collective strategy and in internal & external environmental factors like ethical, cultural
and operational objectives. It is required for Tesco plc to understand the links in between
collective strategy at the time of adopting collaborative strategy. With the help of this,
organisation may remove all the conflicts that are linked with collective scheme. Some of major
factors and their link with many elements are given below:
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Ethical :- At the time of making collaboration with Sainsbury's, Tesco plc may face
many ethical related issues while developing collective strategy. If Sainsbury's business doing
ethics may differ from Tesco, then it may impact over collective strategies. On the other hand, it
has also been analysed that it is much required for both of the companies to look into all the
ethical considerations so that to bring up affectivity at workstation with each other. For an
example : Tesco's management discriminates amongst female and male employees but
Sainsbury's believes in equality which may impact over following a common or collective
strategies because of ethical differences. Thus, this can be taken as a good instance of potential
conflicts in link in between ethical and collective approach.
Cultural :- In business world, it is being analysed that companies may follow different
cultures. Thus, it is pretty much required for both of the organisations Tesco plc and Sainsbury's
to look into the cultural deeds and things that are being followed by them. This can help both
firms in removing all the cultural differences that may occur at the time of adopting collective
strategies and applying them. In addition to this, cultural and social factors in which business
operates also have an impact on aims and objectives of collective strategy. The business is
operating in grocery and food department that many other eatables in different part of the world.
Asda and Sainsbury which are similar like Tesco offers same food which is unhealthy and junk
food. Thus, it is hard to formulate a collective strategy as they have their own. Collective
strategy influence culture and operational objective of business that their inter- dependence by
substituting contractual for competitive interconnected- ness, creating a partially endogenous
social environment.
Operational objectives :- Business companies majorly does not have same sort of aims
and objectives. In present context, both of the companies Tesco plc and Sainsbury's have
collaborated with each other. But, it is being found that Tesco aimed its focus over quality and
Sainbury's used cost leadership related aim (Hill, 2017). Thus, this can be taken as a conflict
amongst two firms who have aimed for adopting a common strategy.
Henceforth, this are some sort of potential conflicts under different factors which may
majorly impact over collective strategy when two business organisations have looked to adopt.
On the other hand, it has also been analysed that there are many advantages which can be given
by this organisation through which company may kept its focus over new strategies so that to
gain many competitive advantages at this world full of rivals. Stakeholders and administrators
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are two major components of Tesco plc to keep their focus over different areas and may majorly
raise up conflicts amongst organisations.
4.3 Critical understanding of different organisational, philosophical and methodological
approaches to organisational strategy affects organisational and collective change
It has been examined that there are ample number of approaches related to organisational,
philosophical and methodological that may impact over both organisational and collective
changes some of them are given below:
Organisational approaches :
Matrix Structure :- Under this type of approach, it is being analysed that staff members
majorly can share their views and information to anyone level of management. If both of
companies that have collaborated follows same approach then it help them in adopting collective
strategical change that has been made by Tesco plc and Sainsbury's.
Functional Structure :- This structure is being considered as the most common
framework which is being followed by most of countries in all over world. Slight changes in
both of business firms under this structure may impact over adopting changes related to
collective strategies that has been taken by both of business firms (Approaches to Organizational
Design, 2016).
Philosophical approaches :
Religious : This is being taken as an effective approach which may impact over changes
that are related to both organisational and collective change. Staff members in both Tesco plc
and Sainsbury's do not majorly have same religions. Thus, it may impact over thinking and may
affect over changes related to collective strategy.
Methodological approaches :
Survey :- This is a kind of methodological approach which is being used by investigating
department of companies. It is being analysed that both of the business firms like Tesco plc and
Sainsbury's may follow this type of approach (Jones and et, al., 2011). Therefore, it may aid
them in hitting firms through which they can gather relevant information. Through this, it is
being analysed that similarities in present context may aid in adopting collective strategy in
much effective manner.
Henceforth, these are some of approaches which may impact over organisational and
collective approaches through which they can hit firms targets. On the other hand, company may
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focus over different areas which may aid Tesco plc and Sainsbury's in adopting right approach
related to change among organisational and collective strategy.
CONCLUSION
From above mentioned report, it is being concluded that collective strategy can help
companies to expand their business and meet all the requirements that are being needed by
customers. It has also been summarised that collective strategy may aid organisations when they
have made collaborations with other institutions. Away with this, it has also been formulated that
global political, public media interest, religious, social, and cultural are some of the factors that
may majorly impacts over collective approach. It is also required for companies to understand all
the barriers that are present in collective strategy. Along with this, collective strategy also aid
company in improving profit margins. With the help of collective strategy, organisation may aid
in making effective brand image. It is also necessary for company to analyse the differences
among aims and different purposes as well.
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