Research Report: Tesco's Business Problems and Decision-Making Tools

This report presents a comprehensive analysis of Tesco, examining its strategic and operational strengths and weaknesses within the retail, telecommunication, and hospitality sectors. The report delves into problem-structuring methods, such as the soft systems methodology, and explores decision-making tools, including SWOT analysis, to address business challenges. It also investigates the principles and practices of quantitative and qualitative research, along with the role of research evidence, big data, and data analytics in supporting business propositions. Furthermore, the report includes an analysis of business reporting, providing insights into how reports can be used to address business problems and support strategic management within Tesco. The study concludes with a comprehensive overview of the company's challenges and opportunities.

Research, Problem Solving
and Business Reporting

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1. Strategic and Operational strengths and weaknesses for organisations in a range of sectors
.....................................................................................................................................................3
1.2 Problem structuring methods and Problem analysis methods...............................................5
1.3 Decision making tools to solve the problems of Tesco.........................................................7
TASK 2............................................................................................................................................8
2.1 Principles and practices of quantitative and qualitative research..........................................8
2.2 Research and development questions..................................................................................11
TASK 3..........................................................................................................................................11
3.1 Usefulness of research evidence, big data, data analytics and pattern recognition to support
the business propositions...........................................................................................................11
3.2 Role of reports in the senior and strategic management......................................................13
3.3 Report showing the business problem.................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Research is about to done a brief study over certain topics. This project is based on the case
study of Tesco Company. The organisation was established in the year 1919 by the founder Jack
Cohen. Headquarter of the company is located in United Kingdom. Company is operating its
business at approximately 6800 locations all across the globe. Company is operating its business
at multiple locations in the international market. This report is a research project over different
aspects of the company. Henceforth, report will emphasis over strategic and operational strengths
and weaknesses of the companies associated with multiple sectors of business environment.
Critical evaluation will be done over problem structuring method and various problem analysis
methods. Relevant decision making tools will also discuss to make the best effective decision in
favour of the organisation. Principles and practices related to the quantitative and qualitative
research will also understand in this project. Research and development questions will be
discussed in relation to the contemporary managerial needs. Furthermore, this project would
conduct a brief analysis over the big data, data analysis and pattern recognition to support the
business progress. What are the different factors and strategic aspects that convert a report into
an effective report? A proper effective report will also produce in this project that would support
the organisation in dealing with all different issues and problems.
TASK 1
1.1. Strategic and Operational strengths and weaknesses for organisations in a range of sectors
There are various sectors in UK in which various companies perform their respective
operations with a common goal to earn a larger profit. The various sectors include the public
sector, technology & media, transport & automotive, healthcare, fashion, professional services,
banking, insurances and financial services, education sector, defence, food, retail, travel and
many more which helps in the progress of the country and the people living there (Tesco, 2020).
Among all the sectors, the major sectors in which the consumer experience is the king are retail,
fashion and hospitality. There are various organisations working under all these sectors and
trying to gain the top positions in their respective sectors (Antony, Rodgers and Gijo, 2016). All
these companies develop and implement various strategies and perform its operations
accordingly to compete with competitors by gaining competitive advantage and to emerge as
leading companies with larger customer base and greater profitability. All the companies in UK
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have their own strengths and weaknesses regarding their strategies and operations which are as
follows:
Retail Sector: There are various supermarkets in the retail sector of UK which are giving tough
competition to each other such as Tesco, Aldi, Walmart, Sainsbury and many more. Let us take
the example of Tesco which is the largest retailer in UK to discuss its strategic weaknesses and
strengths. The company performs various operations like manufacturing the goods, packaging
and delivering and also develops various strategies to attract the customers.
Strengths: The packaging operation in Tesco is totally based on the sustainability which means
that the company believes in remove, reuse and recycle plan. The strategy of Tesco was to
reduce the waste of packaging and boost the recycling all over UK. This benefitted the company
a lot as it followed the sustainability and also creates goodwill in the market (Meadmore and
et.al., 2020).
Weaknesses: Though, Tesco’s strategy in packaging is impacting the environment and the health
of the customers in positive ways but it needs a recycling infrastructure of UK for which the
government imposed the payments of £1bn a year or more and also needs the approval of the
government which restricts the operations,
Telecommunication Sector: This saturated industry in UK contributes greatly in the UK’s GDP
by playing a vital role in the financial and social well-being of the community. It has evolved a
lot from telegraph to the mobile networks and the internet services. There are many
telecommunication companies in UK like BT, Virgin Media, Vodafone, EE and many more.
They deal in providing mobile, landline and broadband services to companies and customers
(Ziv and et.al., 2018).
Virgin Media: The vision of the company is to grow responsibly and sustainably along with
doing more good with digital platforms. Its operations and strategies have strengths as well as
weaknesses which are as follows:
Strengths: In order to perform its various operations like providing broadband services and also
the products, the company ensures the sustainability of each product and for that they develop a
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strategy to reduce the carbon footprint in all the operations. Also, it creates various opportunities
for the other small businesses to grow in various aspects by using digital technology through
which it is transforming many lives (Singh, and El-Kassar, 2019).
Weaknesses: The company have to invest a lot in managing all the operations in sustainable
manner. Also, the company has to follow many regulations and political force. The people of the
company also resist the new ways and strategies.
Hospitality industry
The hospitality industry in UK is considered as one of the biggest engines which
contributes greatly in the growth of the economy but the needs of this sector are mainly
represented by involving the media, government, customers and employees. There are various
hotels in UK such as Hotel Marriott, Macdonald, Hilton and many more. They all develop their
own strategies and implement in various operations but which sometimes benefit them and
sometimes harm and are as follows:
Marriott: The company provides various hotels and lodging facilities to number of guests which
made it a top player in its industry. Hotel Marriott uses the differentiation strategy in its
production operation under which it produces the unique products and services.
Strengths: This helps in attracting majority of the customers and also helps in gaining
competitive advantage. This also helped it to earn a good reputation in order to bring innovation.
Weaknesses: This required a large amount of investment in researching about the products of the
other companies and making its products unique and differentiated.
1.2 Problem structuring methods and Problem analysis methods
These methods are considered to be the family of methods which helps in applying the
modelling approaches which can address the wicked or messy problems which are mostly faced
by the managers of organisations. Their main aim is to improve the situations of the company.
Various OR frameworks are used for the purpose of problem structuring. These are basically
groups of techniques which are used in modelling or mapping the structure of situation that
needs to be changed. These are mainly used by the group of people rather than individuals so that
they can come to a consensus to decide about what needs to be changed. Various types of PSMs
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are strategic choice approach, soft system methodology, Strategic option development and
analysis (SODA) etc. (White, Burger and Yearworth, 2016).
Tesco, being a multinational company also faces various issues like the poor customer service,
the technological advancement which brought new opportunities to the company in regaining the
customer’s trust and also regarding the quality of the products and services.
The soft system model can be used in solving the issues of Tesco as it can be used to solve
general problems and managing the change in the company. The model has seven steps which
are used to decide a consensus regarding the solution of a problem. In step 1, the company
recognises the situation which is problematic i.e., the situation in which advanced technology is
used in the operation of the company. The customers’ preferences and competitors are also
considered as it impacted the need for implementing the advanced technology. The next step is to
describe the problematic situation. In this stage, the problem of Tesco can be described and
defined (Lami and Tavella, 2019). The various stakeholders also interact in this step along with
examining the customers and the problem owner.
In step 3, various definitions are formulated such as customers, actors, transformation, owners,
environmental constraints etc. In the case of issue of technological advancement in Tesco, the
environmental constraints must be considered so that the company does not face issues regarding
this. The customers’ needs and preferences must also be focussed as they feel much more
comfortable by shopping through the digital media. In step 4, various conceptual models are
developed for each process from the deeper definition from the previous step and that also by
clearly integrating with the objectives. Here, the objectives of Tesco are to implement the digital
media strategy in all its processes effectively without causing risks to the company and its
employees (Jeble, Kumari and Patil, 2017). In the next step i.e., 5 the models and the reality are
compared as the models are based on the theory but are far from what reality is. So, it is
important for Tesco to know the similarities and the differences between the theory and the
reality. Tesco must also do the gap analysis which analyses that there is a gap between the reality
which is the need to implement the advanced technology and the theory that it is difficult to
implement. The 7th step is action step where Tesco must take the action so that the problem can
be solved. Here, the changes which are taken in the 6th step will be implemented in this step. If
any problem is found in this step, then the process again starts from step 1. So, this model of
SSM is also considered as an iterative cycle. If Tesco feels that by implementing digital
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technologies in its operations, the company will face the loss more than the profits gained by
using them (Freeman and Yearworth, 2017).
This is how the SSM helps in solving the problems of the multinational companies like Tesco.
1.3 Decision making tools to solve the problems of Tesco
The business leaders take lots of decisions everyday as it influences the overall business
and the goals. Therefore, this becomes the most important skill for the managers and leaders to
make informed, efficient and effective decisions in business which can fosters its overall
progress and growth. In order to make decisions, there is a need to define the problem, then
gathering the information from many sources, analyse the alternatives if nay, make choices
among the alternatives regarding which one to choose and then monitoring or reviewing the
results (Senaratne and Wang, 2018). There are a lot many techniques and tools such as Marginal
Analysis, SWOT analysis, Pareto analysis and many more which can be used by the managers of
Tesco which can help them to choose among the alternatives and finally making an effective
decision. It is not necessary that if the managers have chosen one decision making tool they
cannot chose other, even they can choose the couple of many. The best decision-making tool
which was analysed by the managers of Tesco is the SWOT analysis which can help in making
various decisions in the company. When the manager and the leaders realize the need for a
change in the company also, they can use this decision-making tool to implement the change
effectively with numerous benefits. In the SWOT analysis of a company, the internal factors of
the company are analysed such as strengths, weaknesses, opportunities and threats by analysing
these the decision making becomes easier and also in favour of the company.
Strengths: The biggest strength of Tesco is its leading position in terms of grocery retailer in
UK which can help in gaining it the competitive advantage as the other companies have to strive
hard to come to this position where Tesco is already at. Also, the company is present offline at
more than 6800 stores in almost 14 countries having a huge market share whose number is
increasing continuously (Tesco, 2020). The company is continuously diversifying its product and
market range which is becoming a unique strategy from all the competitors. It also makes use of
technology more along with creating an efficient and reliable supply chain network.
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Weaknesses: Tesco’s biggest weakness is due to its failed operations in US and Japan which
forced the company to close the stores there due to failing in export operations. The company
must now carry the one failure in front of thousands of success and must try to enhance its
strengths. Its low cost strategy also became its weakness as it led to low profit margins. Also in
so many countries the Tesco stores are not performing well so the company must do an effective
market research so that they can be effective in those also.
Opportunities: In the countries where the Tesco stores are underperforming, the company can
establish joint ventures in those regions. Tesco can be helped by complete knowledge of market
and also helps in improving the performance. Tesco can also make use of its technology by
focussing more on the online shopping and home delivery services also. Tesco can also establish
its stores in other countries like Indonesia, Turkey and South Korea. Also, the business can build
strong partnership with more reputed companies. This will make the company able to attract the
majority of the customers.
Threats: The operational efficiency and the performance of Tesco is directly affected by
Government regulations, credit crunches, economic upheavals, legal and tax matters. As the
companies in the retail sector are rising constantly, the competitors also increased. Tesco market
position is threatened by the growth of its competitors such as Aldi, Walmart and many more.
After the Brexit, the trade union has become a challenge for the trade deals and the matter of cost
will be highlighted.
By analysing all the aspects of the SWOT analysis, the company’s managers must focus on the
strengths of the company to improve it rather than destroying it. The weaknesses analysed must
be tries to reduced or negligible. The company can make use of the opportunities mentioned by
implementing the strategies to do the same. Threats of the company must be solved and done.
TASK 2
2.1 Principles and practices of quantitative and qualitative research
Research are segregated into qualitative and quantitative type of research. Both these
researches are different and contain different practices and some are similar in nature. On the
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basis of the needs and requirements of the research researcher needs to decide which specific
research it needed to entertain to conduct a certain research. The major difference between
quantitative and qualitative research is that in case of quantitative research researcher only
collect the quantitative information like facts, figures, statistics, data and other certain
information (Stumpfegger, 2017). In case of qualitative type of research information in
qualitative form will only comprises in the project. On the basis of the needs and requirements of
the research project in case of qualitative research type at some level researcher might also
comprises some information in statistical form but majority of information is only shared in the
theoretical form like theories, points, characteristics and various other theoretical form of
information. Principles and practices associated with both qualitative and quantitative types of
research can be projected in the following manner.
Principles and practices of qualitative research
Principles and practices associated with the qualitative research is projected in the
following manner.
Summarise research structure: This is the key approach apply very time qualitative type of
research entertain. The entire structure of the research is frame at the beginning of the research
project. The structure would comprise with different elements that would become part of the
research. Entire research would be segregated into different areas based on the need and
requirements of the research. On the basis of this structure set by researcher entire research is
conducted. Structure plays a key role for the researcher to achieve the overall objectives of the
research.
Formation of aim and objectives of research: This is another key principle associated with the
research. This is the stage where aim and objectives are formed of the entire research
(Leydesdorff, Ràfols and Milojević, 2020). On the basis of the research these aim and objectives
are formed by researcher. Entire research is based on the aim and objectives set by the
researcher.
Research planning: Researcher needs to plan the research before initiating towards the
completion of the research. Planning is an important approach before initiating towards the
research. Planning also involve identifying different steps that needed to take in order to conduct
the entire research. Entire research is conducted based on the planning of the research.
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Collect information: Information play the significant role in the overall success of the research.
The outcomes of the research are set based on the information collected in the research (Buckley,
2018). Qualitative type of research collects information in theoretical format. Some statistics are
also included based on the need and requirements of the overall research. The outcome of the
research is decided based on the information collected at this stage. Research need to put
immense efforts in collecting the right information.
Conclude research: With the support of interpretation of the research entire research is
concluded by the researcher. This is the key part of the research.
The above mentioned points are the practices and fundamentals associated with the
qualitative type of research.
Principles and practices of quantities research
Following are the principles and practices associated with the quantitative type of
research. All these practices play the key role as a researcher in order to achieve the overall
objectives behind the quantitative type of research.
Design research aim and objectives: This is the first principle and practice associated with the
research. On the basis of the need and requirement of the research this aim and objectives are set.
Research design: Researcher needs to design the entire research. This is the key stage part of the
research where researcher needs to design the research. Based on the needs, requirement and
objectives set for completing the research the designing of the research is conducted by
researcher.
Information collection: This is the part where information in respect to the research is collected.
This is the stage where the information in quantitative form is collected by the researcher
(Duchastel and Laberge, 2019). In this research type only statistical, data format information is
collected by researcher.
Conduct research: On the basis of the information collected entire research is conducted. The
above mentioned practices and principles support the researcher to conclude the entire research.
Information analysis plays the crucial role in the completion of the entire research.
The above mentioned principles and practices are conducted by the researcher to achieve
the overall objectives of the quantitative type of research.
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2.2 Research and development questions
Research questions are the key stage of the research. On the basis of the needs and
requirements of research these questions are formed by researcher. On the basis of the objectives
set by researcher for the entire research these questions are set by research. Each question
denotes the individual objectives set for the research. These question provide the specific
direction to the research (Rogers and et.al., 2020). Each question at this level defines individual
objectives set by the researcher to complete the entire research. These questions design by the
researcher becomes the guiding tool for the researcher in achieving the overall objectives behind
the entire research. These questions also denote the managerial and business requirements. The
questions framed by the researcher are the backbone of the entire research and in order to
achieve the overall objectives for the research these questions drive the researcher in the right
direction.
TASK 3
3.1 Usefulness of research evidence, big data, data analytics and pattern recognition to support
the business propositions
Research evidence
Research market helps in developing the new propositions. Findings from the research of
market also helps in driving the propositions at certain stages. The research evidence helps in
designing the innovation of product and services. After the designing, the launching can also be
facilitated by the market data and insights. After this stage, it can also be helpful in addressing
the complaints of the customers regarding the product and service innovation (Noryani, Sapuan
and Mastura, 2018). It can be useful in understanding the needs and expectations of the
customers and also the market demands. Without evidence of the research, MNCs like Tesco
also can take wrong decisions regarding the operations which can lead to loss of company. So,
research evidence plays a major role in developing and managing the propositions (3 Big Data
Analytics Examples That Can Help Your Business, 2020).
Big data analytics
Big Data and Data analytics generally works together in providing the valuable business
intelligence which can help the companies like Tesco in receiving various opportunities. The Big
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data helps in driving the decision-making which further proves to be efficient, cost-effective and
competitive in the dynamic market (Bradlow and et.al., 2017). Mostly the SMBs helps in
leveraging the data and the analytics software helps in gaining competitive advantage.
In the area of IT and security, this helps the companies to face the threats and stay ahead of them
which can help in keeping the employee, customer and the information of the company safe and
more specially in the today’s environment of cybersecurity (Singh and El-Kassar, 2019).
In the process of marketing, big data does not divert the companies but straight forward says that
which area to be focussed, why and how it will work. It does not take the whole decision but also
leaves some works for the businesses which can nurture the leads and the consumers with more
precision. Also, the big data helps in removing the dated processes which do not faces any
positive impact but have negative effects on the business operation’s efficiency.
Therefore, the big data helps in identifying the critical metrics, the potential issues and the
customers’ insights. The data analytics help in moving a business forward by providing
necessary insights across the company’s breadth.
Pattern recognition
Various cognitive frameworks are used to connect the dots between the technology
changes, markets, demographics, government policies and other factors. This is the time when
the patterns are perceived by analysing all the factors. These patterns help in suggesting certain
ideas which can be helpful in the launching of new product and services. These ideas can also
serve as the basic foundation of the new ventures or businesses (ur Rehman and et.al., 2019). The
main focus of the pattern recognition is on identifying the opportunities from wherever it can and
make use of this opportunity. This also helps in incorporating the one basic framework where its
three factors help and plays a very significant role in identifying and recognising the
opportunities. These factors are involving in all the active searches for opportunities, show and
have the alertness required and most important prior knowledge regarding the market or the
sector. Also, the interrelationship between these factors is also highlighted (Moreno-Sader and
et.al., 2019). For example, this can be said that there is no requirement of the active search when
the alertness is already high. Pattern recognitions also tries to evaluate that why some people are
able to find the opportunities and some do not. It also supports the training of the would-be
employees and the existing ones so that they can easily identify the opportunities.
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