Digital Transformation: Tesco's Response to Global Mega Trends

This report examines the impact of mega trends, particularly digitalization, on the business operations and strategies of Tesco. It begins by defining mega trends and their influence on businesses, focusing on digitalization, artificial intelligence, and big data. The report then delves into Tesco's response to these trends, highlighting its adoption of e-commerce, automated delivery services, and various technological innovations like scan-as-you-shop and electronic shelf badges. The analysis covers challenges faced, such as investment costs and fraud, and the company's strategies to overcome them. Furthermore, it discusses the implications of digitalization for future managers and leaders, emphasizing the role of technology in business operations and global connectivity. The report concludes by emphasizing the significant impact of digitalization on Tesco's business model and its ability to adapt to evolving market demands, as well as its impact on the future leaders. The report also highlights the economic and social impacts of the mega trend and its ability to help the organization grow.

Global Challenges

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Mega trends can be defined the powerful tool which can help in innovation ,
transformation in business and global economy . It is a global trend in this you can not only sees
the present scenario going on but the foresee of future trends as well as the development which
will occurs . There are majorly five mega trends for instance shift in global economic power,
demographic change , quickly urbanisation , rise and technology and the last is scarcity of
resources . These trends has impact in business organisation . The digitalisation and technology
trend will be addressed how impactful it was in a company(Hugo., 2021).The organisation Tesco
will be undertaken and how the trends has impacted. Tesco is a British multinational company
whose headquarters is in London it was founded by jack Cohen apart from the groceries. The
organisation provides other service as well as .
MAIN BODY
Mega trends these can briefly explained as these are the macroeconomic forces which
usually affect the business , economy and many other industry it shows their changes in a rising
pace . The mega trends are the crucial for business investment and process and the developments
in innovation the advancement in technology by bringing the border and advance digital has
connected many devices such as the internet of things which made the process smoother in any
organisation . Digitalisation is booming in the world as there are a lot of development which is
taking place there is a continuous development of mobile and new upgradable it keep coming .
There are the technology such bas internet of things, artificial intelligence , data analytics and big
data all these doesn't effect in surrounding but it is helpful in business operations and different
sort of industry . Internet of things which is often called as IOT which opens the wide horizon for
each and every individuals the business also operated efficiently and effectively . The individual
communicate , messages and do all the work all the things are made easier and quicker by iot it
can be elaborated as the network which is used for generating and creating the data to collect
and analysing , evaluating the information and coming up with for developing the measured and
systematic methods . The artificial intelligence has shown the immense growth in these years .
As the interactions between human and machines will be more efficient in coming years and it is
developing in the field of science where the machines will be able to take control and hold the
power to understand the situation the research and development is working on it and there is

constant improvement in as well as in business AI is considered . The big data which was
extremely necessary even before and after the technology advancement as the digital world is
increasing rapidly the solving and working quickly with big data has made the work impelling as
the large volume of data are collected enormously and analysed and evaluated very quickly there
are numerous companies which are using this for instance sales force is using and in advance it
lead the market by examine the data being used in functioning and operating the business .
Whereas all these are bringing the positive impact in business but every thing has its own pros
and cons . The technology and digitalisation has the negative affect in the business too as
artificial intelligence can show the negative effect in business and people life as the reducing the
gap between machine and human can be proven risky as creating and innovating the platform
where the machines will take numerous activities of individuals many areas in economy will be
affected as labour work and low scale of income work can be badly impacted and their demand
in the market will be levelled off . There is a threat to many data for that it is important to have
cybersecurity whereas the external factors and the other threats from any sort of software or the
virus can crash the organisation in a minute and decline their company growth for digitalisation
it is crucially important to have the sense of security in the organisation to keep their data safe
and secure to gain maximum benefit from the technology. However this trend has been
considered as the most influential as it has provides the boost in business model and in operation
which has generated the significant amount of revenue and sales due to this the growth in profit
margin has been widened moreover it is not limited to sales the exposure and opportunities that
comes has always worked in a favour for any organisation . In business the digitalization is the
integration and interrelation between many organisation and transforms their operation in every
part of world . The technology is need in every sort by doing the transition from papers to e
commerce . It benefits the business by brining the lower errors to work the manual and labour
work become loss and the data are often accurate as well there is proper control over the cash
flows the works became easy as any bank work can be doing in mobile , phones . The financial
and consulting service are highly benefited. The organisation have the edge when technology is
involved as they have a better insight about market as it helps them to evaluate and examine any
trend and any fluctuation taken place in particular industry or the economy. With regards to
Tesco the digitalisation involvement is quite considerate in this organisation . The transformation
has been taken place in the company in comparison to their past as they have conducted and

planned for automate delivery services(Aini., 2022).As the incorporating the technology was
necessary for lowering their cost and providing the amazing customer service to their consumer
the enterprise is also collaborating with many other organisation for instance take-off and
starship technologies. The business has also said that their distribution in e commerce will be
increased and they are going to show the raise of thirty five percent with the assist of take-off
technology whereas in the collaboration of starship which is the robot company the organisation
is already in terms with them for automated delivery services which will give them a significant
of benefit in their future . It is also predicated that the business will increase their cash handling
in future by incorporating the digital for instance it will be done using the consumer mobile
devices or the self service machines will taken into the consideration but for using that customer
should posses the cards(.Pagliaro., 2019). The amends in payment and innovating in this areas will
be done only by keeping the consumer in mind and catering according to their preferences
demand . The organisation has launched shop and go where the consumer has to scan the product
and pay through online without waiting in the long queue as the organisation has start installing
because they have to keep up the pace with their rivals . The Tesco established their grocery
channel with the name of Tesco direct in which the online sales were rapidly growing to full fill
the requirements . The organisation has installed the grocery dot-com centres which was mainly
for fulfilling the online order purpose with the innovative good to picking purpose technology
which is usually for improving the business operations and lowering the profit and providing the
easy access and convenience to their customers . The organisation has also come with click and
collect in which the consumer can order online and collect in the nearest stores whereas the
organisation faced a lot of challenges and obstacle as the investment was high for developing the
online platform despite the revenue was fluctuating the organisation invested in digitalisation .
To provide the in-store experience to their customers the have launched scan as you shop
whereas it has faced a lot barriers due to negligence of workers over there the organisation has to
face the scam and fraud to combat these things the company is doing by digital receipt
technology . The company has the electronic shelf badge which instantly changes the price
moreover they can apply discounted price at any moment . For the inventory and checking the
stock level they have launches the portable smart badges in which they have to scan the product
and gets all the required information of stocks(Freitas., 2020). Further in development of
technology the organisation has launched the Tesco club card loyalty scheme which tags the

unique customer id to every purchase . The Tesco invests in huge data and algorithms for
adapting the supply chain and the purchasing trends in a market, they also looked for purchasing
habits as well as they generated an online and offline discounts offer the people this laid so many
opportunities for the company . Through this the organisation had leveraged from smart phone to
digitally innovate and creating all the store experience in this there main objective was to provide
the wonderful experience to the customer. The hurdle for scanning barcode could be easily
solved by using and incorporating the Toshiba technology which does not required the barcode
this will not hamper the organisation growth . The impact of digitalisation is huge and it has the
future whereas the impact is impactful on the future mangers and leaders I strongly believe in
that as the technology advancement is coming in distinctive shapes and forms as due to the hit of
covid everything went online and even in the numerous organisation work was digitally . In this
digitalisation was advances as the video and Skype are the medium for conversation in meetings
the change was difficult for high tech companies as there major work was physical such as the
meetings and live events but all these things went to online(Williams., 2020). As the problem is
coming to end while on the contrary the digitalisation wont stop in fact the innovations will come
and solve the border social and economic issues . The digitalisation is totally changing the course
of business and their value chains . When the crises occurred many retail companies has shown
the significant change as they has to adapt the e commerce stores . The enterprises are hugely
investing in the IT sector as the nature of any business are changed and the organisation need
highly advanced analytics to check the offline demand in the market . Whereas the business will
not be run by the these technology only the organisation need more than for catering the people
needs by evaluating and examine the operation and technology strategies for their consumer I
also believe that technology makes the work easier and it connects the different region. It
impacts the economically and socially as the work is done by being in the any part of the work. It
helps the business by connecting and collaborating with international business(Baig., 2019) In my
opinion the digitalisation can assist the organisation to grow in a wider aspects . With regards to
the mangers and future leaders will be also benefited as their work will became effective and
quicker as the work. It will also get help in solving the big data where the machine will make the
work cost effective and economical however it will also give them huge opportunities and the
coming up with innovation. As the digitalisation multiples the connectivity by this the leaders
can be connected to numerous organisation and their leaders. They can also analyse and study

the market and create the action or the blue print for their companies how they will achieve the
future goals and objective they have set. It is also being noticed that digitalisation has the
significant amount of effect in leaders and in their leadership skills as the leaders posses all the
skills they need to be successful leaders where they have this specific skills of building networks
and attracting people for collaborating for their business(Mosselhy., 2021) . They also have the
analytical tool with them in which they are able to read the huge data and take the worthy
information which will favour and give edge to their business . The digital leaders has to work
with the products and formulation the activities for the organisation and ensuring and motivating
the employee for adapting this digital transformation . They also have to make their employee
familiar with all the entrancement digitally. Moreover they also have to come up with many
strategies which will help in meeting their objective and goals . It also affect the mangers and
leaders as it is excepted for the leaders to be more flexible , agile and creativity if they want to
sustain survive the digital world . The mangers need to combine accountability vertically with
the horizontal networking opportunities which is available for making the decision which are
reactive not silent or the cumbersome . The leaders should include the self organising networks
instead of those traditional methods and the rules , regulations . The technology advancement
gives the chance to the leaders and mangers to be transcend and go beyond the limit and not
confined to the traditional and old methods of collecting data or the any of the strategies for their
business .
CONCLUSION
From the essay it can be clearly summarised that the mega trends has the impactful
outcome in a organisation as well culturally and socially . The business has invested hugely in
technology and the crises has also made the organisation to invest . There are numerous
innovation in the market and high advance technology is incorporated by business enterprises.
Business has been highly affected by the technology as the artificial intelligence is also being
used but it has its own positive and negative outlook . With regards to Tesco the technology has
boosted their sales and also shows the fluctuation too as the organisational brought the
digitalisation for providing the digital experience to their customers(Lynch., 2022). They have
launched numerous action plan such as scan and pay, for checking the stock levels and many
more . Whereas the company also saw the failure in self check as the ignorance became the
problem for them they has to face the huge loss however the business also had the fluctuation in

their revenues still they invested in the many advance technology . The digitalisation wave has a
very long lasting future as everything is going digitalised and many companies are also
incorporating and adapting digital world from cash to financial services the digitalisation is
outdoing and outshining it .

REFERENCES
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