The Role of Innovation in Tesco's Business Development Strategies

This essay provides an analysis of Tesco's innovation strategies, focusing on how the company leverages innovation to drive business development and maintain a competitive edge in the grocery market. The introduction highlights the importance of innovation in today's dynamic business environment, where firms face internal and external challenges. The main body delves into the role of innovation in enhancing procedures, introducing new products and services, and boosting profitability. It also explores relevant theories such as Rogers' diffusion theory and the Technology Acceptance Model (TAM), illustrating how Tesco applies these models to its operational activities. The essay emphasizes the impact of innovation on Tesco's brand image, customer attraction, and overall firm performance. The conclusion summarizes the key findings, emphasizing the significance of innovation in developing a productive workforce and enhancing a firm's ability to compete effectively. The references section includes books, journals, and online resources that support the analysis.

ESSAY

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
CONCLUSION.....................................................................................................................................5
REFERENCES......................................................................................................................................6

INTRODUCTION
Considering today’s business environment, wherein, manager of a business firm has
not only to deal with various fluctuations and uncertainties in its given business environment,
moreover, management of a firm also has to go through presence of competition in its
respective operational environment (Kerlin ed., 2017). Not only this with presence of internal
and external factors in business working environment makes it even more difficult for
management department of the firm to formulate effective plans dedicated towards
attainment of desired goals and objectives of the firm. Innovation plays an important role in
shaping various efforts being produced by various individual towards achievement of
respective goals and objectives of the workforce (Huber, Kaufmann and Steinmann, 2017). In
the present report, operational working of Tesco is being taken into consideration. Respective
company deals in grocery items in its various market regions and is being headquartered in
Hertfordshire, England, UK.
MAIN BODY
A company's efforts to increase procedures, introduce innovations and services to
market, improve productivity, and, most crucially, increase profitability depends on its ability
to successfully exploit fresh concepts. Innovation is a broad subject with several layers and
aspects. While innovation is sometimes thought of as a vague term, it is actually a
multidisciplinary area of study with a variety of models, concepts, and structures. Managers
and leaders of various business firms innovate their respective plans and strategy that helps
operational firm to regulate in their respective business activities effectively in given market
place (Theories of Innovation Adoption and Real-World Case Analyses, 2021).
In regards to chosen business firm i.e. Tesco, as the firm operates with high
competitors present in business environment and also their products are similar to what is
commonly available in given region of business operations. Therefore. Innovation plays an
important role in ensuring better goodwill of the firm in its various regions of operations. It
helps firm to create separate identity in given marketplace and are able to attract various
customers by lower prices with better quality of products and services being offered in the
given market of operation.
Innovation is a vast topic with many layers and facets. Although the word
"innovation" is often misunderstood, it is actually a multidisciplinary field of research with a

wide range of models, principles, and frameworks. Rogers' theory is wide in nature, making it
adaptable to a variety of situations, but it's also difficult to use as a model when preparing for
organisational change due to the implementation of a new technology. Rogers' diffusion
theory has four main components that are time taken, innovation, social system and
communication. The combination of these elements explains why an organization needs to
adopt or not adopt innovation. The invention decision or method, which leads to acceptance
or rejection of the innovation, is a micro of diffusion in Rogers' theory. In this step, Rogers
describes five phases that potential adopters go through. The very first step is to learn more
about the invention and how it works. Viewpoint is the second step, which occurs when a
probable innovator forms an impression about the invention. The decision to accept or reject
the invention is taken in the third level. The fourth stage happens when the innovator is put
into action by the adopter. Eventually, the adopter enters the stage of affirmation, in which
they seek clarification of their deciding to accept the invention. They can either continue to
incorporate the innovation as they see its advantages, or they can change their practices and
reject it. With relation to chosen firm, management department of the firm uses this theory
that helps them to operate effectively in their operational environment and also enables firm
to establish better brand image of the firm in its respective operational environment.
In keeping with the theme of views and perceptions influencing innovation adoption,
Davis' (1985) Technology Acceptance Model (TAM) states that a potential adopter's behavior
and perceptions of the innovation influence the likelihood of its implementation. The possible
adopter's perception of the innovation in terms of its ease of use – how simple the innovation
would be to learn and execute – and its generating future – the degree to which technology
will increase the client's computer or job-related results – are two key concepts in TAM.
Davis believes that ease usability has a direct impact on the satisfaction because the simpler a
buyer perceives an invention to be to use, the more likely they are to use it and achieve higher
efficiency, proving that the advancement is useful to the adopter. Therefore, by looking at
various advantages of this theory managers of Tesco, applies this theory in their respective
operational activities. By application of this theory to various operational task of the firm,
every effort being produced in the firm is operated through using up of new and up to date
technologies. This helps firm to gain competitive advantage and also increases productivity
of the firm.
Therefore, from adoption of various innovative theories, management department of
respective firm are able to increase productivity of the firm and are able to establish better

goodwill of organization in given region of operational firm (Ramadani and et. al., 2019).
With addition to that, firm builds potential to compete in its given region and also ensures
effective working of the firm and attain desired objectives of the firm in given time period
and with available resources. However, there is huge threat to managers and leaders of
business firm about success or threats of innovation, but by developing strategic plans
management department of the firm is able to overcome such threats (Lorenz and Kraemer-
Mbula, 2019).
CONCLUSION
From the analyses of above report/ essay, it could be evaluated that innovation in a
business firm plays an important role in effective development of a workforce. With addition
to that, by application of relevant theories in various operational activities of the firm,
management department are able to introduce effective and productive plans in
organizational structure and also firm develops better potential to compete in given region of
operations.

REFERENCES
Books and Journals
Kerlin, J.A. ed., 2017. Shaping social enterprise: Understanding institutional context and
influence. Emerald Group Publishing.
Huber, D., Kaufmann, H. and Steinmann, M., 2017. Bridging the innovation Gap: Blueprint
for the innovative enterprise. Springer.
Ramadani and et. al., 2019. Product innovation and firm performance in transition
economies: A multi-stage estimation approach. Technological Forecasting and Social
Change, 140, pp.271-280.
Lorenz, E. and Kraemer-Mbula, E., 2019. Employee Learning and Enterprise Innovation
Performance in Low-and Middle-Income Countries. IUP Journal of Knowledge
Management, 17(4).
Online
Theories of Innovation Adoption and Real-World Case Analyses, 2021. [Online]. Available
through: <https://ohiostate.pressbooks.pub/drivechange/chapter/chapter-1/>