Tesco's Challenges: A Report on Management and Stakeholder Impact

This consultancy report provides a comprehensive understanding of management principles and their importance in business organizations, focusing on the challenges faced by Tesco. These challenges include the impact of COVID-19, sustainability issues, and changing consumer buying behavior. The report analyzes Tesco's internal and external stakeholders, such as employees, shareholders, customers, and suppliers, evaluating the project's impact on them. Secondary data analysis supports the report's findings, leading to recommendations for Tesco to streamline its services and improve its market position. Key recommendations include effective planning for uncertain events like pandemics, focusing on reducing environmental impact through sustainable practices, and strengthening community relations by providing job opportunities. The report emphasizes the importance of effective management in navigating these challenges and ensuring the long-term success of the business.

Business Project
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EXECUTIVE SUMMARY
This consultancy report has provided clear understanding of management and its importance in
business organization, this report have discussed current challenges and problem faced by chosen
business organization in the market. Current challenges and issues are; issue of COVID-19, issue
of sustainability and issue of changing buying behaviour. Tesco is one of the largest retail
company faces these issues in their business process, challenges of COVID-19 is increasing day
by day for Tesco as this pandemic is not in control. Due to this company has account decrease in
demand of their products and services in the market, it adversely impacts their supply chain
management. Issue of sustainability is being faced by Tesco as now customers are more
demanding sustainable product from these retail giant. This report carries out as how consumer
in the market demanding for the product who meets the sustainability, so that it secures the
resources for future. It describes that how businesses take their responsibility towards the
environment, to introduce the products which are organic and fulfils the customer requirement. It
describes the Tesco strategy to use the recycled material which do not cause harm to
environment, or to reduce the plastic from their product packaging. Along with this report also
accounts the changing customer buying behaviour which affects the business activity, as covid
really hits hard it develops the vulnerable situation for market, it impacts the investment power
of the people, therefore it reduces the sales of the businesses.
Report further describe about the report purpose which describes that for the success of
the business it is important for the organisation to have effective management that makes them
able to face any situation. It further lays out the impact of stakeholder over the business. It covers
the description about the Tesco Company’s internal stakeholder which are employees, manager’s
board members and shareholder; it also covers the analysis of the external stakeholder for Tesco
which involves the customer, suppliers, and local communities. It further evaluates the impact of
the project over the stakeholder. Moving on further report carries out the evaluation of the
secondary data for describing the report purpose; it evaluates the colleen of secondary data to
support the report. It also covers the recommendations which are made for the Tesco to
streamline their services for better result. As it discusses that effective planning would guide the
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company to be prepared for the pandemic as it is uncertain, so weekly monitoring of the
strategies enables them to reduce its adverse impact. Another recommendation for the
sustainability also made, as company needs to focus on reducing their environmental impact, to
introduce the products which do not creates the major impacts, or to reduce the uses of extra
energy and plastics so it do not cause the global warming problem. It is also covers that how
Tesco could make their good position in the community, to provide job opportunities to the
communal people so that it helps them to remain strong in the market.
TABLE OF CONTENT
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................5
Challenge and problem faced by Tesco.......................................................................................5
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Purpose of this report...................................................................................................................6
Impact of research on stakeholder...............................................................................................7
Secondary data analysis...............................................................................................................8
RECOMMENDATIONS AND CONCLUSION..........................................................................13
REFERENCES..............................................................................................................................17
INTRODUCTION
Management is one of the most challenging thing for every business organization, this
require skills and ability to understand and craft certain strategy. Every company distribute their
organization into different level and develop various project to accomplish organizational goals,
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management of business become easier if company have practice to analysing management tools
and techniques. Projects of business are developed for short term and with adequate budget,
managing effectiveness of project become very difficult for leaders of business. Skills and ability
of leader and manger gets pushed in completion of intended project, effectively delivering
outcome is key management process (Parris and et.al., 2016). This study is based on Tesco, this
retail giant is one of the most successful business organization who have wide range of product
with high quality and affordable price.
Tesco have strong customer base which allow them to become more competitive in the
market, this company is king of retail industry but still Tesco face various challenges and issue in
their business process. One of the biggest challenge faced by Tesco is challenge of COVID-19, it
is very clear that every retail industry was badly impacted due to COVID-19. This pandemic is
major issue for Tesco which not only impacting the business but this also slowly becoming
reason for failure of the business organization (Tesco, 2022). This report will discuss challenges
and problem faced by client for example challenge of COVID-19. Later this report will discuss
purpose of this report and analyse impact of stakeholder both internal and external. Later this
report will discuss and analyse secondary data and provide clear understanding for the same. at
last this report will discuss and provide recommendation, these recommendation will help
company to improve their business process.
MAIN BODY
Challenge and problem faced by Tesco
Tesco is one of the biggest retailers in the world who tend to rule retail industry, this
company face huge problem because of current affairs (Raskin, 2016). This company may have
great brand image and reputation but these challenges have impacted them and their business
process badly, there are current issue which impact Tesco, these are:
Challenges of COVID-19: COVID-19 is one of the biggest issues faced by almost every
business organization was impacted due to this pandemic, many company find challenging to
survive in tough market situation. Economic stability of country was affected which impacted
every industry and every business organization, this hit was so powerful that it not only decrease
sales but this also result in overall failure of the business process. Sales of Tesco was rapidly fall
down after COVID-19 impact, this company had bear huge losses as no supply of product was
made by the company because there was no demand from customer (Donthu and Gustafsson,
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2020). Tesco is current facing various issue and challenges because of this pandemic, for
example; after this impact, supply chain of Tesco was badly affected. This company failed to
fulfil the rising demand of customer in the market, poor supply chain was one of the issue but
this was connected with lack of production activities of Tesco. Manufacturing of this company
was completely shut down because there was lack of resource, after the impact of COVID-19
and high inflation rate, cost of raw material tend to increase resulting in low production.
Challenges of Sustainability: in today’s business scenario, every business organization is
adopting sustainability which allow them to attract those customer who actively promote
sustainability in their daily life, apart from attracting customer, sustainability allow company to
become more responsive towards nature. Tesco also have adopted sustainability at every level of
their business process to meet the demand of customer and government but this rising trend have
become one of the most challenging issue for Tesco because, first rule of sustainability is to cut
off plastic and this company pack their product in plastic bags and use more paper in less useful
activities (Thiele, 2016). UK government have instructed Tesco, not to use plastic material in
their packing as this harm sustainability agreement between government and company. It has
become challenge for Tesco because they mainly depend upon plastic for their product
packaging and they do not have any other packing strategy. Although, this company have
analyse this current issue and working to improve their sustainability process.
Changing buying behaviour challenge: changing buying behaviour of customer is one of the
biggest challenges for every business organization, it is very clear that spending capacity of
customer tend to decrease after poor market condition (Sharma and Jhamb, 2020). Tesco is
facing this issue of rapidly changing buying behaviour of customer as spending capacity is
decreasing, this company is continuously losing customer base because of change in behaviour.
There is certain reason for changing buying behaviour such as: less income after COVID-19
impact, arrival of new trend in the industry, new mindset and thinking of customer and condition
of wealth.
Purpose of this report
The purpose of this report is to understand management and its importance in the business
organization, this report provide clear understanding on current issue faced by Tesco in today’s
world for example current issue of COVID-19, issue of sustainability and issue of changing
buying behaviour. Another purpose of this report is to analyse both internal and external
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stakeholders of the company, internal stakeholder may include employee, management and
investor whereas external stakeholder may include government, supplier and customer. This
report will provide recommendation to understand how company can become more effective. At
last this report will fulfil all requirement of overall purpose.
Impact of research on stakeholder
Stakeholders are those who have interest in the company’s project, they invest in the project
to earn maximum revenues. They are group of people or individual who directly or indirectly
affect the organisational business. For the Tesco their stakeholders are as follows:
Internal stakeholder: For the Tesco their internal stakeholder are employees, managers,
shareholder and their board members (Kostopoulos, 2019). They plays an vital role for the
company, company’s structure is hierarchical which means that every junior will report to their
designated seniors, it helps them to implement the healthy and inclusive environment at work
place.
Employee: Employee is the key asset for the Tesco, because of them company is able to carry
out their operational task effectively. Due to the covid factor it impacts the productivity of
company’s employee, due to this they forced to work remotely. Employee who are working from
home seem as lacking in motivation and guidance also sustainability challenge is also tough for
the employee to design a product which reduces the environmental impact.
Shareholder: Shareholders are the investor who looks into the company’s project for raising
fund, they aims to maximise their profit with the project success. Due to the covid factor, many
investors have developed their distance with the company’s project, it badly affects the financial
resources of the Tesco (Kujala and et.al 2022). Also sustainability and customer buying
behaviour impacts the shareholder activities as they increase their involvement in the project
which means that maximum part of the revenue will go in their hand.
Employers: For the smooth running of the business employers as managers, leaders plays an
important role, they lead the team to achieve the goals of the organisation. Covid challenge
mainly impact their work, due to this they are not be able to be with their team to motivate them
towards their work, as it causes the difficulties in operational work. Other project impact as
sustainability and customer behaviour also impact their performance, to meet the sustainability
they have the lot of pressure to lead the team to meet the sustainability.
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External stakeholder analysis for Tesco: Company’s stakeholder plays an crucial role for
growing the revenues of the organisation. Following are the external stakeholder for the Tesco
firm-
Customer: Consumer is the key stakeholder for every business, as they are the one who invest in
the organisational business to increase their revenues (Seroka‐Stolka and Fijorek, 2020). Tesco
provides the additional discounts over their products so that they will retain their customer. It is
evaluated that due to the pandemic it decreases the income power of the consumer, because of
this they will not be able to afford the product.
Supplier: Tesco have different suppliers in the market from which they purchase the raw
materials for designing their product. It is important for the company’s employees to have good
negotiation skills so that they will be able to reduce the price over the raw materials (Goldsby
and et.al 2018). Pandemic hits hard the supply chain process, due to the impose of lockdown,
suppliers will not be able to supply their delivery of the resources on time, this is the another
cause which the Tesco faces, because of this they were also lacking in delivering the product on
time, because of this customer were switching their services to other firm.
Local community: Businesses who aims to support the community are likely seen as successful
and strong, Tesco also conduct the charity programs to support the development process for the
society. Company also helps the communal youth by providing job opportunities. For their
sustainable growth company link with the local farmers so it helps to develop sustainability
factor for their business (Nicolescu and Nicolescu, 2022).
Secondary data analysis
It had been analysed that in present times various organization is facing issues, due to which the
employee and customer are also facing huge issues. This is also important for knowing about
how usually the organization is working towards having various concepts and make sure for
having effective things. Along with this Tesco organization is also facing issues through which
they cannot work effectively and their customer are also facing issues from the products and
services (Contreras, Olivera-Nappa and Priesemann, 2022). This is important for knowing about
how they can make the strategy through which the organization can work and ensure them for
working with having some growth and development. While the organization also required for
working with some better strategy so that business activities can keep the organization for
solving their problem. This might be also essential for organization in working with their some
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business activities and also come to know about they are required for keeping their benefits
towards some effective manner. The organization must know about how usually they have to
work and keep their business activities for performing with better goals and objective. Tesco
business which is facing huge due to having pandemic and this sometime can bring loss for the
organization.
Impact of covid-19 on organization
Organization which is facing issues as almost they retailing sector in which they have the huge
impacted through which they cannot have the profits. The market position for the organization
has gone down by 45% and this can bring loss for the organization. While having such things
this could also created the economic stability for Tesco that was working with having less
strategy and this can occur in every business activities (Brydon-Miller and Wood, 2022). Along
with this organization which also come to know about how they have to work and bring out
some better strategy that can become more powerful. The organization is mainly facing issues in
supply chain for their products and services. Through which they are unable for products and
services for their customer and sometime this can bring loss for the organization. Corona virus is
probably the greatest issue looked by every business association was affected because of this
pandemic, much organization view as trying to get by in intense market circumstance.
Financial soundness of nation was impacted which affected each industry and each business
association, this hit was strong that it decline deals as well as result in generally disappointment
of the business interaction (Adler and et.al., 2022). Deals of Tesco was quickly tumble down
after Covid-19 effect, this organization had bear immense misfortunes as no stock of item was
made by the organization since there was no interest from client. The firm additionally need to
plan ahead of time to adapt up to staff deficiencies and request drop downs. They need to zero in
on convey things on the interest for advanced however on monetarily premise. The association
additionally needed to deal with their funds short term just as long haul period. Reducing
expense might assist with shorting term endurance yet not be done to the detriment of making
establishments in long haul. They need to acknowledge the circumstance that the forthcoming
time is extreme and trying for everybody and they need to satisfy the hole of lopsided task to
carry out in empowering the customers alongside the more extensive local area (Kaplinsky and
Kraemer-Mbula, 2022). Tesco need to adjust down their monetary prerequisites and wants.
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Figure 1Impact of retail sector
Impact of sustainability on organization
In the present business situation, each business association is taking on manageability which
permits them to draw in that client who effectively advance maintainability in their day to day
routine, aside from drawing in client, supportability permit organization to turn out to be more
responsive towards nature (Reyes And et.al., 2022). Tesco additionally have taken on
supportability at each level of their business interaction to fulfil the need of client and
government however this rising pattern have become one of the most difficult issue for Tesco on
the grounds that, first rule of maintainability is to remove plastic and this organization pack their
item in plastic sacks and utilize more paper in less helpful exercises. UK government have
educated Tesco, not to involve plastic material in their pressing as this maintainability
understanding among government and friends. It has become challenge for Tesco on the grounds
that they essentially rely on plastic for their item bundling and they don't have some other
pressing procedure.
This organization has break down this recent concern and attempting to further develop their
manageability interaction. Tesco is current confronting different issue and difficulties in view of
this pandemic, for instance; after this effect, store network of Tesco was seriously impacted
(Sun, Wu and Jeyaraj, 2022). This organization neglected to satisfy the rising interest of client on
the lookout, helpless store network was one of the issue yet this was associated with absence of
creation exercises of Tesco. Assembling of this organization was totally closed down in light of
the fact that there was absence of asset, after the effect of Covid-19 and high expansion rate, cost
of unrefined substance will quite often increment bringing about low creation.
Impact of buying behaviour changes in organization
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Changing purchasing conduct of client is probably the greatest test for each business association;
it is extremely evident that spending limit of client will quite often diminish after helpless
economic situation. Tesco is confronting this issue of quickly changing purchasing conduct of
client as spending limit is diminishing, this organization is ceaselessly losing client base in view
of progress in conduct (Deason, Seekamp and Barbieri, 2022). There is sure justification behind
changing purchasing conduct, for example, less pay after Covid-19 effect, appearance of recent
in the business, new mentality and considering client. Rather than all such recognized that
assisting the purchasers with balancing the effects of the retail propensities which is profoundly
useful for the manageability that has been used by the Tesco. It likewise gives the firm a sort of
certainty that the business is out to have an effect from different firms in since a long time ago
run. At this stage, the substance promoting comes into thought. Besides, evasion of green
washing likewise assists with making the business more pervasive as economical brands and in
this way the items turns out to be more famous. Moreover, the results of the association ought to
be all around named and set outsider endorsement up to keep up with the item quality just as
moral guidelines.
Figure 2 impact on consumer behaviour trends
The buying situation that leads with new tasks when the organization that buying behaviour with
products and services for the first time. This is also important for knowing about how the
consumer is buying their products and services and how they will keep the organization for
working with more strategy (Bani-Hani, Chowdhury and Kurti, 2022). The number of
participants is the high amount of information thought which bring tend to increase with the cost
and risk associated within the transaction. Furthermore, organization needs to work with new
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task that could be best opportunity for winning the new business activities because there is no
need to displace and other suppliers which could be working with any case in organization. For
sales opportunities this could also help the organization for working with many effective things
and also ensure buyer interested in provider that offers complete package or solution of business
problem (Das, Behera and Paital, 2022). This also makes sure for having some new business
activities than individual components that are address separate aspects within the problem.
Suppliers in organization could keep vision and the capability to provide the combination of
products. Along with this, having such things as products, technology and various other services
that address to problem and make everything for working together smoothly.
Tesco should plan and fabricate an adaptable just as deft emergency the board at present, not
when it turns into a prerequisite for the firm. They need to choose ahead of time about the
quantity of stores out of which will open every day and which will close for that particular day.
One more proposal is connected with the arrangement a situation to the endurance least as the
greater part of the organizations are at their beginning phases and subsequently, deal with the
reactions of representatives, staff individuals and their purchasers are the base liability of Tesco.
The arrangement ought to be as indicated by week after week, month to month just as yearly
premise (Newton-Levinson, Higdon and Rochat, 2022). Tesco should need to deal with their
stockpile limitations, manage the decrease in certainty on account of the drop popular and supply
proportion. For the smooth running of the business bosses as administrators, pioneers assumes a
significant part, they lead the group to accomplish the objectives of the association. Corona virus
challenge mostly sway their work, because of this they are not have the option to be with their
group to persuade them towards their work, as it causes the troubles in functional work. Other
task sway as supportability and client conduct likewise sway their presentation, to meet the
maintainability they have the part of strain to lead the group to meet the manageability.
In setting of changes in buyer purchasing conduct, the Tesco need to adopt a trained strategy
towards clients' commitment (Zielhuis And et.al., 2022). For this, the firm need to direct prompt
social tuning in to survey feelings and speed up purchaser division, advanced lead age alongside
supporting them in efficacious way. They need to move quicker to drive showcasing and
correspondence snappiness. For this, the firm need to quickly review the brand correspondence
exercises the whole way across the places where they are introduced alongside formation of
promoting interchanges in quick reaction group to manage media age. Additionally, moving of
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blend to new and progressed deals channels that likewise incorporate virtualized deals assists
with understanding individuals conduct towards the clients' inclinations. Extraction of significant
worth from existing development to drive item procedure is additionally a sort of profoundly
successful way. For this, the firm need to search for rapidly virtualises the administrations just as
items alongside focus on items in the portfolio that is enormously important during the
emergency circumstance.
This will occur by focus on computerized travels and takes on better approaches to connect with
and get extraordinary encounters now just as for eternity. Working of answers for convey
suitable items to end clients and till the last mile of development will likewise assists with
getting the firm digitalized during the emergency circumstance. Assuming the firm comprehends
the job as far as new and progressed scene of the market circumstance, then, at that point, Tesco
will ready to separate them from different contenders (McCool, 2022). Henceforth, it has been
reasoned that all such sort of exceptionally fit to the point of making the firm completely serious,
practical, capable and including incredible generosity inside the commercial before their
different rivals. The retailers are confronting shifted difficulties during this pandemic
circumstance however restorative measures are adequately useful to get them freed from
exceptional circumstances in their since a long time ago run.
RECOMMENDATIONS AND CONCLUSION
From the above report it has been evaluated that the Tesco is a firm which needs to focus
over certain aspects of their business in order to make they successful and effectively able to
cope up with specific challenges. The primary issue that has been faced by the firm is Covid-19
which is a drastic situation that has been faced by the firm. Recommendation to cope up with
certain aspect is to shift from business continuity to crisis management (Aulia and Soetjipto,
2021). Tesco must plan and build a flexible as well as nimble crisis management currently, not
when it becomes a requirement for the firm. They have to decide in advance about the number of
stores out of which will open each day and which will close for that specific day. Another
recommendation is related to the plan a scenario to the survival minimum as most of the firms
are at their early stages and hence, manage the responses of employees, staff members and their
buyers are the primal responsibility of Tesco. The plan should be according to weekly, monthly
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as well as yearly basis. Tesco must have to manage their supply constraints, deal effectively with
the decline in confidence because of the drop in demand and supply ratio.
The firm also have to prepare in advance in order to cope up with staff shortages and
demand drop downs. They have to focus on deliver things on the demand for digital but on
economically basis. The organization also required to manage their finances over the short-run as
well as long-term period. Cutting cost may help short term survival but not be done at the
expense of creating foundations in long term. They have to accept the situation that the
upcoming time is tough and challenging for everyone and they have to fulfil the gap of
disproportionate role to play in encouraging the consumers along with the wider community.
Tesco have to balance down their financial requirements and desires.
In order to deal with sustainability issues and challenges that have been arises in front of
Tesco; the firm have to choose energy efficient equipments, appliances as well as lights in their
day to day life. The establishment swap out their traditional radiant light bulbs with energy
saving options of providing light within their stores (Ampah, 2021). With the help of this action,
the firm is able to save a lot of energy along with money as well. Another option in order to
make themselves sustainable is minimise the usage of paper that has been utilised within the
organization as well as in stores. Digitization is the best option to work upon rather than working
with paper and pen. Disposing the waste material in properly manner also helpful to make them
sustainable and reuse items as and when ever it is possible. Donating things also makes the firm
highly responsible towards the society and also helps to generate goodwill among their
competitors. Apart from this, switch over sustainable packaging alternatives are also one of the
best option to make the firm responsible towards the society. From various researches, it has
been identified that more than 85% of consumers want packaging to provide more and detailed
information about sustainability along with 90% of buyers choose paper based packaging over
plastic (Aschemann-Witzel, Giménez and Ares, 2018).
Instead of all such efforts it has been identified that helping the buyers to offset the impacts
of the retail habits which is highly beneficial for the sustainability efforts that has been utilised
by the Tesco. It also gives the firm a kind of confidence that the business is out in order to make
a difference from other firms in long run. Another efforts are making sustainable retail a part of
the brand story (Mason, Narcum and Mason, 2020). At this stage, the content marketing comes
into consideration. Moreover, avoidance of green washing also helps to make the business more
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prevalent as sustainable brands and thus the products becomes more popular. Furthermore, the
products of the organization should be well labelled and get third party certificate in order to
maintain the product quality as well as ethical standards.
In context of changes in consumer buying behaviour, the Tesco have to take a disciplined
approach towards customers’ engagement. For this, the firm have to conduct immediate social
listening in order to assess sentiments and accelerate consumer segmentation, digital lead
generation along with nurturing them in effectual manner (Baum, 2018). They have to move
faster in order to drive marketing and communication quickness. For this, the firm have to
rapidly audit the brand communication activities all across the locations at which they are
presented along with creation of marketing communications in fast response team in order to
oversee media age. Moreover, shifting of mix to new and advanced sales channels that also
include virtualized sales helps to understand the people behaviour towards the customers’
preferences (Hartmann-Boyce and et.al., 2018). Extraction of value from existing innovation to
drive product strategy is also a kind of highly effective manner. For this, the firm have to look
for quickly virtualises the services as well as products along with prioritize products in the
portfolio that is greatly relevant during the crisis situation.
This will also happen by prioritize digital journeys and adopts new ways to engage and get
great experiences now as well as forever. Building of solutions to deliver appropriate products to
end users and drive till the last mile of innovation will also helps to get the firm digitalized
during the crisis situation (Jacobs and et.al., 2018). If the firm understands the role in terms of
new and advanced landscape of the market situation, then Tesco will able to set them apart from
other competitors. Hence, it has been concluded that all such kind of efforts are highly capable
enough to make the firm fully competitive, sustainable, responsible and having great goodwill
within the market place in front of their other competitors. Although, the retailers are facing
varied challenges during this pandemic situation but corrective measures are helpful enough to
get them rid from drastic situations in their long run.
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