A Report on Contemporary Growth Challenges for Tesco Business

This report critically assesses the contemporary growth challenges faced by Tesco, a British-based general merchandise retailer. It delves into five key dimensions: leadership, autonomy, financing, communications and positioning, and acquisition or merger potential. The report emphasizes the importance of sustainable business models and good practices to address these challenges, highlighting strategies such as incorporating sustainability into corporate strategies, partnering with employees, and maintaining sustainable supply chains. Issues in organizational communication, including lack of feedback, language barriers, and motivation, are explored, along with challenges in product positioning and potential problems in mergers and acquisitions, such as targeting the wrong entity and overpaying. The report concludes by underscoring the role of sustainable practices in improving Tesco's reputation, reducing costs, attracting consumers, and fostering innovation.

Contemporary
Growth Challenges
for Business

Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Current State of Organisation.................................................................................................1
Leadership:.............................................................................................................................1
Autonomy:..............................................................................................................................2
Financing:...............................................................................................................................2
Sustainable Business Model...................................................................................................2
Issues in Organisation communication and positioning.........................................................4
Issues in merger and acquisition potential in an organisation................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

Executive Summary
In context to organisations, the contemporary growth challenges plays a major role in impacting
the operations of the business and it results in affecting the organisation and carrying out various
measures in order to deal with the challenges.
INTRODUCTION
Contemporary issues basically involves the opportunities and problems which are faced by the
organisations. In this report, the mature organisation chosen is Tesco. It is a British based general
merchandise retailer founded in the year 1919 and headquartered in Welwyn Garden City,
England. In context to organisation, the company is facing a lot of contemporary issues which
comprises of the various contemporary issues such as profit and not for profit organisations,
advanced and developing economies and growing and mature. In context to report, it comprises
of the critical assessment of the current state of the organisation and use and application of the
sustainable business models good practices.
MAIN BODY
Current State of Organisation
In context to the current state of the organisation, the five dimensions chosen are Leadership,
autonomy, financing, communications and positioning and acquisition or merger potential. In
context to organisation, it is growing steadily and are not trying to expand its operations and
moreover the company is facing challenges at the global economic environment( Vlachos, V.,
Bitzenis, A. and Sergi, B.S. eds., 2021).
Leadership:
In context to the concept of leadership, it is basically the procedure of impacting the behaviour of
individuals by making them strive voluntarily towards attainment of the objectives and aims of
the company. In context to Tesco, it is very essential for the organisation to build its leadership
potential and talent for the purpose to fight back these issues in a effective way. The
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organisation’s culture has a major impact on the individual for the purpose to become more
flexible in the company (Verbeke, A., Roberts, R.E., Delaney, D., Zámborský, P., Nagar, S. and
Enderwick, P., 2019).
Autonomy:
In context to autonomy, it is the ability of the individual to act on her or his own interests and
values. In context to organisation, the company set to brings its Trigo Powered autonomous
store system in the second UK location. In context to autonomy, the middle manages manage
processes in the first and individuals in the second. In reference to organisation, the company is
engaged in decision making and execution with the established processes and delegated
frameworks( Haupt, M., 2021).
Financing:
In reference to financing, it is basically the process of offering funds for the objective of
investing, business activities and making purchases. It comprises of the various financial
institutions such as Banks that helps in offering capital to the investors, consumers and
businesses for the purpose to achieve objectives. In context to organisation, the first stage is
financing which is also known as ramp up phase which involves increase sales as the major
indication of the success( Agwu, E., 2020).
Sustainable Business Model
In context to sustainable business model, it is basically defined as the business model which
captures, creates and delivers value for all the stakeholders without depleting the natural
economic and social capital (Fung, M.K. and Sergi, B.S. eds., 2021). In context to organisation,
for the purpose to deal with the contemporary issues it is very important to use the right type of
sustainable business model practices. In context to sustainability, it is basically the concept that
helps in meeting up the need of the present without compromising the future generations for the
purpose to meet their own needs. In reference to sustainability, there are various good practices
that could help in solving the issues and challenges of the contemporary business.
The various good practices in sustainability involves the following:
Being intentional about sustainability: In context to organisation, the concept of sustainability
need to be incorporated into the corporate strategies and need to be reflected in the goals of the
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company or the organizations. It basically means making this a priority in each aspect of the
operations of the company.
Partner with employees: In context to organisation, it is very important to invest in training the
employees in relation to the importance of the sustaining the environment for the objective to
conserve the resources.
Supply Chains: In context to supply chain, the statistics shows depicts that the consumers prefer
working with organisations which are sustainable and which are environment friendly. It is very
important for the organisation to maintain a list of sustainable friendly vendors and making it a
priority for the purpose to embrace the various sustainable business practices (Костик, Є.П. and
Курок, О.О., 2019).
In order to resolve various issues, it is very important to develop the sustainability work policies
and developing various procedures and policies for the purpose to reinforce the efforts of the
company. In reference to organisation, the sustainable business practices plays a very important
role and helps in boosting up the bottom line and helps in earning more money and profits. With
the help of sustainable business practices, it helps in improving the reputation of the
organisation, reducing the business costs, attracting more and more consumers, more innovative
strategies and also helps in providing numerous opportunities to the business and helps in solving
various issue of the company. With the help of sustainability, it helps the organisation in
effecting the companies and aims to create a positive impact on the areas. With the help of
sustainability, it helps in solving the various issues which comprises of gender inequality, climate
change, income inequality, pollution, human rights issues and racial injustice( Castellani, D.,
Narula, R., Nguyen, Q.T., Surdu, I. and Walker, J.T. eds., 2018).
For the purpose to drive environmental and social change, the sustainability initiatives
helps in contributing towards the success of the company and thus the business organisations
focuses on spending more money on the various practices of the sustainability for the purpose to
boost the profitability of the company. With the help of sustainability, it helps in providing
various benefits to the organisation such as getting a competitive advantage, protecting the brand
and reducing the risks. In context to organisation, the concept of sustainability is not about
sacrificing profits or putting up success as the back burner but it plays a crucial role in
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developing successful strategy for the companies. With the help of right sustainable practices, it
helps in dealing with the challenges of the organisation and overcoming the various issues.
Issues in Organisation communication and positioning
An organisation have to face many challenges while communicating with the employees
which are described as under in context to Tesco:
 Lack of feedback: When the employees are not communicated well so the have lack of
effective performance and are not productive. Therefore the feedback help the employees
in understanding their goals and encourage them to collaborate with each other and
managers(Al-Jaber, 2020). When there is lack of feedback in an organisation so this lead
to demotivation and lack of interest as the employees as the emplopyees are unable to
understand the objectives of business.
 Language barrier: When there is diverse workforce so the company may face the
language barrier because the employees belong to the different locations. In relation to
Tesco, it is a big challenge for a business concern as there is multi language
communication which can be slow, ineffective and sometimes non active. Thus the
company have to appoint the translator to remove the language barrier and make effective
communication. This helps in avoid the misunderstanding and encourage the intercultural
training and also provide language classes to the workforce.
Lack of motivation: When the employees are not rewarded for their efforts and are not provided
recognition so this lack motivation in them. They become less productive and provides
ineffective outcomes(Sharma and Khatri, 2019). With reference to Tesco, an organisation
should talk or engage with the team members so that the concerns of the employee can be
known and provide them, better solution of their problems.
Thus, an organisation should adopt the sustainable communication in order to approach
the customers and the investors so that the business can grow efficiently. The company can build
the sustainable communication in an organisation by having clear ambitions, verified claims,
compelling messages, transparent communication and accessible information. Sustainable
communication is the sincerity of an organisation to share the information authentically about its
sustainable strategies, goals and efforts(Wuersch and Taylor, 2019) This help the organisation in
building their reputation and assist in overcoming the competition.
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There are many challenges that an organisation have to confront while positioning the
products which are discussed as under in relation to Tesco:
 Development cost: It is a challenge for an organisation to establish unique image of a
brand because it need a lot of investment in advertising and production of the products.
The cost is also incurred over attractive packaging and the means of communication with
customers such as developing the websites or application and so on.
 Loss of sales: This is another concern for an organisation because when the new product
is launched in the market so it unlikely to meet the needs of the customers. Thus, the sale
of the business can be affected by its features, packaging and likely to decline sale and
the customers as well.
The sustainable and positioning refers to the positioning of the products and the servicers of an
organisation which offers the improved the public and biological presentation during the course
of the product life cycle so that the wants of the customers can be satisfied. Thus the company
should offer the organic products and reduce the use of plastic bags and reuse paper. Sustainable
activities and strategies should be adopted by an organisation to meet the needs of a business and
the stakeholders. A business concern must adopt the sustainability because it helps in
maintaining the work life balance and create a better work culture.
Issues in merger and acquisition potential in an organisation
A merger refers to the process when two organisation are combined and form a new
organisation. Whereas acquisition refers to the process when on entity takeover the other entity.
Issues that are faced by a business concern in merger and acquisition are depicted as under as
regard with Tesco:
 Target the wrong entity: When an organisation adopt merger and acquisition so it has to
observe that the particular organisation will provide sufficient benefit and how much it
will be effective(Lee, 2018). The success is also measured before making any merger
and acquisition, therefore, an organisation have to think twice before targeting an
enterprise.
 Overestimating collaborations: When company have good collaboration so it provide
assurance for the growth of the business by increasing the revenue and saving the cost.
This can be happen when an effective transaction take place and the company must have
strong motive to final the deal. However, it can be failed when the collaboration is
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overestimated and the loss occurred from the merger and acquisition cannot be recovered
thus it should approach conservatism.
 Overpaying: This is the most common issue that arises in merger and acquisition of an
organisation. In relation to Tesco, the company have to pay more for the value that is
destroyed due to the challenges of the merger and acquisition. However, there is best way
to avoid the overpayment which include that the suitable value should be set for the firm.
 Losing trust of stakeholders: The most important part of a business is human capital
thus, when an organisation wants to merger and acquisition of the business so it is not
important that the stakeholders are also interested. Therefore, the M&A affect the top
management and the bottom as well.
 Insufficient attentiveness: When the merger and acquisition tale place in a concern so it
is very important to pay proper attention on every step that is taken for success of the
business(Verma, and Bhattacharyya, 2019). Thus, when the company is not attentive for
the M&A so it has to face many problems or uncertainties.
 Failed combination: Sometimes it happens when the merger and acquisition take placed
so it creates an insufficient and toxic work environment. The members of the team focus
on the many parts of a business that is to be integrated when the transition is locked.
Therefore the best way to avoid fail integration is well plan so that it would not be fail.
By adopting the sustainable practices, the company can achieve better environmental
performance through merger and acquisition. M&A assist an organisation to utilise the resource
to the optimum level and incur lower cost as well as environmental cost which is incurred over
the services of the ecosystem and curb the environmental pollution. Therefore the company can
incur the low environmental cost over through M&A. when the company expand its business
through the activity of M&A so an organisation obtain the richer resources from the stake holder
for the performance of the social responsibility. It will help in improving the reputation of the
enterprise among the public. The performance of the company also evaluated after M&A from
the perspective of economic and social indicators. The sustainability step that is taken by an
organisations that they devote themselves towards the corporate social responsibility.
CONCLUSION
From the above discussion, it has been concluded that the company have to face various
growth challenges in the different foundation of the growth of the business and also entails the
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way of sustainability of the environment by dealing with the challenges. Thus the report has
discussed the issues that arise in the organisation while adopting the leadership, provide and
invest finance in an organisation. The report has also focused on the issue related to the
communication and its sustainability or the positioning of the brand. It has explained the issues
that take place while merger and acquisition for expanding the business.
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REFERENCES
Books and Journals
Vlachos, V., Bitzenis, A. and Sergi, B.S. eds., 2021. Modeling Economic Growth in
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Verbeke, A., Roberts, R.E., Delaney, D., Zámborský, P., Nagar, S. and Enderwick, P.,
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Haupt, M., 2021. The Contemporary CFO: How Finance Leaders Can Drive Business
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Industry: Technology as a Panacea for Sector Growth. In Contemporary Management
Approaches to the Global Hospitality and Tourism Industry (pp. 45-57). IGI Global.
Fung, M.K. and Sergi, B.S. eds., 2021. Modeling Economic Growth in Contemporary Hong
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Костик, Є.П. and Курок, О.О., 2019. HUMAN CAPITAL AND CONTEMPORARY
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Castellani, D., Narula, R., Nguyen, Q.T., Surdu, I. and Walker, J.T. eds., 2018. Contemporary
issues in international business: Institutions, Strategy and Performance. Springer.
Crabtree, R.M. and Zhang, J.J., 2022. Challenges and opportunities of contemporary sport
marketing: Strategic perspectives. In Sport Marketing in a Global Environment (pp. 1-
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Tseng, P.H. and Lu, C.S., 2018. Contemporary issues and challenges for the Taiwanese maritime
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Al-Jaber, M.A., 2020. Dimensions of internal communication for organisation engagement: the
role of co-worker trust (Doctoral dissertation, Brunel University London).(Al-Jaber,
2020)
Sharma, N. and Khatri, S.K., 2019. Does digitised internal communication develop citizenship
behaviour? Case study of an Indian government organisation. International Journal of
Public Sector Performance Management, 5(1), pp.105-122.(Sharma,and Khatri, 2019)
Wuersch, L. and Taylor, J.F., 2019, December. +/+ A practical solution: Transactional analysis
in organisation contributing to ethical internal communication. In 9th Annual
Australasian Business Ethics Network (ABEN) Conference 2019.(Wuersch and Taylor,
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Lee, K.H., 2018. Cross‐border mergers and acquisitions amid political uncertainty: A bargaining
perspective. Strategic Management Journal, 39(11), pp.2992-3005.(Lee, 2018)
Verma, S. and Bhattacharyya, S.S., 2019. The intellectual core and structure of mergers and
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and Research, 20(3), pp.305-336.
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