Analyzing Tesco's Horse Meat Scandal: A Management Consultancy Report

This management consultancy report analyzes the Tesco horse meat scandal, focusing on the issues, causes, and potential solutions for the company. The report begins with an introduction to management consultancy and its role in resolving organizational problems, specifically addressing the horse meat scandal. It provides a detailed analysis of the scandal, highlighting the issues of mislabeling, food safety concerns, and ethical considerations, as well as the impact on Tesco's brand image and financial performance. The report outlines a management consultant's approach to resolving the issue, including defining the problem, examining the causes, identifying alternatives, selecting the best alternative, and implementing and monitoring the solution. The report also discusses the benefits of the analysis and provides a timeline for completing the consultancy project. The report aims to offer a comprehensive understanding of the scandal and provide actionable recommendations for Tesco to regain consumer trust and improve its performance.

Management Consultancy
Part 2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
1. Analysis of the issues with a clear statement of needs and benefits........................................4
2. Description of how management consultant would approach the problem.............................6
3. Discussion on charge to complete the project and how long it would take...........................10
4. Reason behind the hiring of a management consultants to perform the work ......................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

TABLE OF FIGURES
Figure 1: Approach to resolve the horse scandal issue of Tesco.....................................................6
Figure 2: Timeline for completing consultancy project................................................................11
LIST OF TABLES
Table 1: Charges of the consultancy services................................................................................10

INTRODUCTION
In today’s business scenario management consultants play very important and significant
role in resolving big issues and scandals of different organizations. Hiring a skilled and
experienced management consultants an organization can improve its performance and resolve
existing problems in effective manner (Muzio and et.al, 2011). The current research is based on
management consultancy and its role in resolving horse meat issue of Tesco. For attaining
purpose of this report, study will include a detail analysis of the problem and its benefits for
Tesco. Further it will also describe that how a management consultant can approach this problem
and own much will charge to suggest suitable actions to overcome this issue. Along with this,
different reason behind the hiring of a management consultants by Tesco for performing the
work is also describing in the following paragraphs of the report.
1. Analysis of the issues with a clear statement of needs and benefits
Analysis of issues
The current research is based on horse meat scandal of Tesco. Analysis of this issue has
reflected that discovery of horsemeat in processed beef products sold by a number of UK
supermarket chains last month has resulted in a series of product recalls and thrown the spotlight
on the food industry's supply chain. Tesco is also one of the biggest supermarket who were
involved in this horse meat scandals. Irish food inspectors has announced that tests of frozen beef
burgers made by Tesco fount that they contain horse DNA. Analysis has shown that it is not an
issue of food fraud but it is relevant to the food safety. Along with this, information about the
horse meat in Beef burger is also not disclosed by Tesco on Label (Radnor and O'Mahoney,
2013). So, Mislabeled processed meat product have so been discovered in Tesco which is one of
the ethical issues with respect to the customer’s health.
Lack of the food industry's supply chains in Europe is the major reason behind the
inclusion of horse meat in beef burger. Along with this, for the purpose of financial gains
suppliers uses horse meat for their products and services because horse meat is cheaper that other
meats in some nations. Along with this, analysis has also disclosed that for insider profit most of
the supermarkets of UK have chosen horse meat for beef burgers (O'Mahoney and Markham,
2013).
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Research and analysis on horse meat scandal has reflected that Muslims and Jews
consider only certain types of meat and pork for eating purpose because of religious prohibition.
So, inclusion of horse meat in beef burger without any label is one of the major religious issue
for different people (Sturdy, 2011).
Therefore, this issue has reflected that Tesco is not following its corporate social
responsibility towards different religious people. Along with this, it is not focusing on
sustainable development of the organization. Because after this horsemeat scandal corporate
image of Tesco has ruined and market value of the company has declined by €360 million.
Therefore, this issue has declined the overall market image and financial performance of the
company. Therefore, it was one of the major issue which needs to be considered by Tesco for
developing a strong brand image in the supermarket industry of UK (Horsemeat scandal, 2013).
Needs to resolve
As per the above analysis horse meat scandal has created a negative image in customers
mind about Tesco and its beef burger. So, it reduced the number of customers for the
organization. Along with this, financial performance of the company has also declined which
have affect the market share and corporate reputation of the firm. Phenylbutazone and Equine
infectious anemia are also known as major health risks which may occur due to the consumption
of horse met. Including this, it is a negative implication for some specific religious group which
do not prefer to eat all kind of meat because there are some religious prohibition they cannot eat
horsemeat (Horsemeat scandal: timeline, 2013). Therefore, for resolving all these issues Tesco
needs to focus on appropriate project by which company can overcome this problem. Therefore,
solution of this problem is required for developing a strong brand image of Tesco in customer’s
eye. In addition, for attracting the large number of customers and creating a very good image in
customer’s eye Tesco needs to focus on this scandal. Overall, analysis has described all the
major needs for resolving the horse meat scandal issues (Lawrence, 2013).
Benefits
Analysis of the horse meat scandal issue is beneficial for determining the major causes
and impact of this problem on organization and customer. So, it is very beneficial for developing
a most appropriate plan for resolving this issue in effective manner. Along with this, it is also
beneficial for improving the overall performance of the company and developing a strong brand
image of Tesco in customer’s eye (Sturdy, Werr and Buono, 2009).
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2. Description of how management consultant would approach the problem
For resolving the issue of horse meat scandal Tesco needs to use consultancy services. As
a management consultant I can provide appropriate suggestions to resolve this issue in effective
manner. Each and every consultant has their own approach to resolve the issues of different
business and make appropriate decisions. But, major objectives of every consultant is improving
organization’s performance by resolving issues of Tesco (Sturdy, Wylie and Wright, 2013). For
resolving issues of Tesco I would prefer the following approach:
Figure 1: Approach to resolve the horse scandal issue of Tesco Defining the problem of horse meat scandal: As a management consultant using the
analysis and market research I would like to understand the actual problem of the Tesco.
Afterwards I can decide an appropriate plan to resolve this issue. Regarding this, I will
use the current situation of the company and impact of consequences on organization’s
performance and other aspects. Including this, I will also explore the name of all
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managerial authorities and food safety regulatory authorities who have involved in this
scandal. After analyzing the current situation of Tesco I will explain a clear statement of
the problem by which I can easily define the whole problem in single line. Along with
this, I will also consider a self-reflection towards the horse scandal issue of Tesco and
reasons behind the same. It will help in determining the different sources of problem.
Overall, defining the problem of horse meat scandal is one of the important stage to
resolve this issue in effective manner (Lăzăroiu, 2015). Examine all possible causes behind this problem: For resolving any issue every
organization needs to know the major reason behind it. So, management consultants will
focus on identifying all the potential causes due to them Tesco has used horse meat for
beef burger. There are number of methods which can be used by me for examining these
reasons and these are cause and effect diagrams, fishbone diagrams, Ishikawa Diagrams,
Herringbone Diagrams, and Fishikawa Diagrams. Brainstorming and mind map are also
known as important technique for analyzing the cause and effect of horse meat scandal
for Tesco. As a management consultant I will discover the root cause of the issue and
afterwards uncover the all bottlenecks in the process. Including this, I will also analyze
the different factors which are involved in the horse meat scandal such as supply chain
issue, insider profitability, etc. therefore, this process helps in determining the actual
reason behind the issue. I will also analyze the impact of this issue of organization and its
performance because it will also help in getting most appropriate solution to resolve this
issue. Including this, I will prepare a document with the description of the cause of the
problem in terms of what is happening, where, when, how, with whom and why (Sturdy,
2009). Therefore, this stage will be effective for determining the major reasons and
effects of Horse meat scandal of Tesco. Identification of all alternatives to resolve this issue: A single solution is not fruitful for
resolving any kind of issue. So, as a management consultant I will determine all the
possible alternatives which can be used by Tesco to resolve this issue. I will prefer a
brain storming session because it is an effective method for getting all possible ideas.
Afterwards I will conduct a screening session to get the best possible alternative for horse
eat scandal. For getting appropriate alternative I will use the different cause which will
help in getting appropriate solution. For example, for this scandal Tesco can use different
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alternatives such as appropriate packaging and labeling of different ingredients in
products and services, exclusion of those ingredients which are not good for health,
Consideration of religious factors at the time of producing food, focus on health and
safety of customers, corporate social responsibility and sustainable development of the
firm, etc (Costa and António, 2014). Therefore, all these must be considered as major
alternatives for resolving issue of horse meat scandal. Careful selection of an alternative: Selection of best possible alternative is one of the
major solution to resolve the problem rather than applying all possible. Because, it will be
reduce time and cost in resolving organizational issue. Regarding this, I will focus on
most likely to those solution which can help in resolving issue for the long term. Along
with this, I would like to select that approach which will be most realistic to accomplish
for now. In addition, I will also shed light on the resources which require for resolving
this issue. Further, I will checkout that whether Tesco has appropriate resources for
resolving issues or not. In addition, I will also consider different factors at the time of
selection of best possible alternatives and these include affordability, possibility and
require time for completing project, etc (Czerniawska, 2016). In addition, extent of risks
associated with the possible solution is also one of the major aspect which will be
considered by me at the time of selecting best possible solution for resolving horse meat
scandal of Tesco. Implementation of best alternative to resolve horse meat scandal: After deciding the
best possible alternative to resolve this issue I will develop a most appropriate plan for
implementing selected alternative for resolving issue of horse meat scandal. Before
implementing the bets idea I will clearly determine the future situation which will be
developed after implementing the solution. Because it will help in measuring the final
performance of Tesco. I will focus on different system and procedures which needs to be
used by Tesco for implementing bets possible idea. Including this, I will decide some
success indicator for completion of the plan. For implementing the whole consultancy
project in effective manner I will focus on making all necessary arrangement of people,
money and facilities. In addition, at the time of developing implementation plan I will
focus on the total time which will be required for executing all actions in effective
manner (Radnor and O'Mahoney, 2013). Deciding primary responsibilities of all
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authorities is also one of the important part of this stage. Therefore, all the above
discussed stages and tasks will be followed by me at the time of implementation of the
best possible alternatives for resolving issues of horse meat scandal. Monitoring of the implementation of alternative: for determining the success and failure
of the implementation of alternative I can sue different technique such as Gantt chart,
balance score card, etc. In which Gantt chart will help in determining progress of each
and every stage. Along with this, it will also help in identifying the all necessary changes
which quill be required for completing project in effective manner. Further, I will also
identify different types of risks and manager them in effective manner. Overall,
monitoring and control process has helped in resolving issue of horse meat scandal in
effective manner (Sturdy, 2009). Measuring performance: Performance of the implementation plan can be determined by
making comparison between actual and expected performance of implementation plan. In
this stage I will also determine that whether I have implemented selected alternatives in
effective manner or not. Time management is also one of the major aspect for measuring
the performance of alternative. Further, I will also measure the performance on the basis
of the indicators of the success. If problem of horse meat scandal has resolves that it will
show the success of the implementation plan (O'Mahoney and Markham, 2013).
 Verify if the problem has been resolved or not: after measuring the performance I would
like to identify that whether problem has been successfully resolved or not. I will
checkout the negative effects and current situation of Tesco it will help in making
comparison between both current and past performance of the company which will easily
verify about the same.
Overall, as a management consultant I will use the above discussed approach to resolve
the issue of horse meat scandal of Tesco. It will be beneficial or resolving issue in effective
manner (Sturdy, Werr and Buono, 2009). Along with this, it will also improve the overall
performance of the company. It will help in reducing health risk, improving corporate image and
brand loyalty in front of customers of Tesco.
3. Discussion on charge to complete the project and how long it would take
As per the above discussion I will use a very long process for resolving horse meat
scandal of Tesco because it will resolve this issue in effective manner. But I will charge a
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specific amount of fees for providing consultancy services to different organizations. As per the
estimation will require £1000 for resolving this issue because it is one of the major complex
issue which may affect the customer’s health in negative manner and it has negative impact on
corporate image and brand loyalty of all buyers (Lăzăroiu, 2015). Estimation of the charge of
consultancy service is as follows:
Table 1: Charges of the consultancy services
S. No. Particulars Cost £
1 Consultancy service fees 500
2 Market research cost 100
3 Making necessary arrangement of resources which
are required for analysing collected data
200
4 Developing consultancy and implementation project 200
Total Cost £1000
As per the above calculation for resolving issue of horse meat scandal and developing a
consulting project I will charge £1000 to Tesco. It is not a big amount of this organization
because it is one of the leading organization of retail industry of UK. Along with this, this issue
has ruined the image of the company in customer’s eye. So, Tesco can pay this fees to
management consultant to resolve this issue (Sturdy, 2011).
Timeline:
This project will take an appropriate time because I need to develop a most suitable and
clear plan to resolve this issue (Sturdy, Wylie and Wright, 2013). As per the above discussed
selected approach will take the following time to complete this project:
S. No. Task Name Duration Start Finish Predecessors
1 Consultancy project for
horse meat scandal 24 days Mon 7/18/16 Thu 8/18/16
1.1 Defining the problem of
horse meat scandal 5 days Mon 7/18/16 Fri 7/22/16
1.2 Examine all possible causes
behind this problem 5 days Mon 7/25/16 Fri 7/29/16 2
1.3
Identification of all
alternatives to resolve this
issue
2 days Mon 8/1/16 Tue 8/2/16 3
1.4 Careful selection of an
alternative. 2 days Wed 8/3/16 Thu 8/4/16 4
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1.5
Implementation of best
alternative to resolve horse
meat scandal
5 days Fri 8/5/16 Thu 8/11/16 5,4
1.6 Monitoring of the
implementation of alternative 2 days Fri 8/12/16 Mon 8/15/16 6
1.7 Measuring performance 2 days Tue 8/16/16 Wed 8/17/16 7
1.8 Verify if the problem has
been resolved or not 1 day Thu 8/18/16 Thu 8/18/16 8
Gnatt chart:
Figure 2: Timeline for completing consultancy project
As per the above calculation I will complete this project in 24 days. Therefore, it has
reflected that minimum duration which is required for this consulting project. Therefore I will
resolve the horse meat scandal in approximately 1 month (Costa and António, 2014).
4. Reason behind the hiring of a management consultants to perform the work
In addition to this, it can be stated that the management of Tesco must hire consultant
because it provides number of benefits to the business and lead business to impressive level of
success. Management should hire consultant because it allows business to get expertise guidance
which is beneficial to overcome issues. It means by having improved focus on consultancy
services the issues can also be overcome in order to meet goals and objectives. One of key
benefit of consultancy hiring is that guidance can be taken at any time when management feel to
access services (Namie and Namie, 2009). Management of Tesco should hire consultant because
it also provides a contribution in tax saving. For example, by having assistance of consultancy
the business firm can discuss key aspects that can save tax on income. Expert views will provide
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support in decision making process and allow business entity to enhance its profit margin ratio. It
means in order to have improvement in financial conditions the business entity must approach to
consultancy services (Le and Watt, 2010).
Business firm can have assistance of consultant in diverse areas that are essential for
effective operations such as marketing, production, product development, etc. Consultant are
more focused towards effective examination of key factors that can provide success to
organization. It means in order to analyse the successive factors effectively the management
must hire consultant. Number of monetary and non-monetary benefits can also be attained by the
management through having support of consultant (Cater-Steel and Toleman, 2010). For
example, the management of Tesco is looking forward to have improvement in customer service.
In this respect, the consultant has suggested that company should focus on feedback process
because it helps in evaluating customer perception. With an assistance of this, the customer
needs cam be analysed and design services in such manner that customer expectations can be
accomplished in appropriate manner (McLachlin, 2012).
Another benefit of hiring a consultant is to cut down the cost of operational activities.
There are number of methods that can be suggested by consultant to improve effectiveness of
operational activities. It facilitates in meeting key goals and objectives in desired manner.
Number of methods can be designed in appropriate manner that may provide optimum use of
resources (Namie and Namie, 2009). However, the appropriate allocation of key sources by
having an expert guidance is also beneficial to cut down the overall cost of operational activities.
It is also one of key reason that the management of Tesco should hire consultancy (Nikolova,
Reihlen and Schlapfner, 2009). Moreover, it has been noticed that the success of managerial
activities is dependent upon converting good idea into operation. Company must hire
consultancy because it allows management to have efforts in convincing manner. Management
also move forward on decision if it is providing desired conclusion and designed plan is really a
good idea. By using an experience of consultant the management can ensure that the idea is
designed in appropriate manner or not. It means the hiring of consultant should be accomplished
to have optimistic end results. Organization can also ensure about internal arguments by having a
discussion with consultant. It is because the consultant have ability to anlyse factors in detailed
manner so that better opportunities can be provided to organization (Le and Watt, 2010).
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