Strategic Management Report: Tesco's Force Field Analysis and Strategy

This report provides a strategic analysis of Tesco, focusing on a proposed change in pricing strategy to attract price-sensitive customers and gain a competitive edge. It uses force field analysis to examine the driving and restraining forces related to this change, such as customer perception of quality versus price, revenue impacts, and supplier relationships. The report also outlines a new mission and vision for Tesco, emphasizing cost leadership and international expansion. Furthermore, it identifies internal and external change agents, along with an implementation plan that includes market research, feasibility assessment, stakeholder communication, budgetary considerations, and KPI monitoring to ensure successful execution of the revised pricing strategy. The key performance indicator (KPI) focuses on increasing the number of price-sensitive customers by 4.5%.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

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Task 2
Force field analysis
The concerned organization, TESCO is looking forward to bring forth modifications in
the pricing strategy of the same4 in order to adhere to the needs of the price sensitive customers.
The price modifications of the organization will also help the same in gaining a competitive edge
over the other market players. Chen et al. (2012) stated that the subtle modifications in an
organization is to facilitate the smooth functioning of the systems as per the changing concerns
of the customers. On the other hand, Langley et al. (2013) noted that the different aspects of
change in the organizational operations are dependent on the competition faced by the same in
the markets.
The force that will primarily support the change that is planned by the concerned
organization is dependent on the maximization of price sensitive customer base. The delineation
of the at- par pricing with the other competitors will be helping the organization in attracting the
attention of the price sensitive customers. The pricing structure will be helping the organization
in maintaining the efficiency of the organizational level strategy while targeting a larger base of
potential customers. At-par pricing strategy of the organization will assist the organization in
selling the products and services in accordance to the pricing that is followed by the competitors
or at a slightly lower price (Kuipers et al. 2014). The change will be helping the organization in
gaining a loyal base of price sensitive customers through cost leadership. However, it is also
noted that most of the customers hold the view that the lower price products are not always at par
with the quality that is proposed by the other businesses. Lowering the price of the commodities
might trigger the perception of degraded quality being proposed among the customers. It might

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act as a force against the change that is planned by the business. Von Krogh (2012) stated that in
most of the cases the customers of UK are more concerned of the product quality apart from the
price. In this case, the organization might face different issues in implementing the pricing
strategy while relating to quality based needs of the customers.
The major goal of the organization is to derive a competitive edge in the competitive
market scenario. The revised pricing strategy will be helping the organization in maximizing the
target audience of the business and thereby gain a competitive edge over the other players.
Reduction in the pricing or at par pricing will be helping the business in attracting the attention
of the potential customers, which will provide the same with sustenance in the competitive
markets. Rusly, Corner and Sun (2012) stated that the enhanced customer base of the
organization helps the same in gaining a better market hold. Therefore, the reduction of the
prices will be helping the organization in planning the operations through an assessment of the
needs of the customers. However, it has been noted that the reduction in the prices might affect
the revenue gained by the organization. The reduction in the revenue earnings and the net income
of the business will affect the operations of the same relating to maintenance of quality of the
products. The reduction in the profit margins might act as a force that resists the change that is
planned by Tesco.
The reduction in the pricing structure will be helping the organization in facilitating
market expansion through attracting the attention of the potential customers. The lower pricing
or at par pricing will be helping the organization in attracting the attention of majority of the
customers. It acts as a force that supports the change planned by the business. However, the at
par pricing will reduce the marginal profit of the business which might diminish their relation
with the suppliers. The enhancement of the supplier’s bargaining power might restrict the

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operations of the business through the reduction in the profit margins. Poor relation with the
suppliers might be taken as a force that restricts the change planned by TESCO.
New mission and vision for the organization
The mission of the organization is to gain cost leadership over the other competitors in the
market.
The vision of the organization is to lead the retail trade in the international grounds.
The delineation of the mission and the vision statement of the organization will be
helping the same in creating the objectives for gaining a competitive edge while operating in the
diverse international markets. The mission statement of t he organization will be assisting the
same in gaining cost leadership through modifications in the pricing structure. The modifications
in the pricing structure will assist the business in attracting the attention of the price sensitive
customers (Appelbaum et al. 2012). On the other hand, the vision of the organization is to
facilitate continuous expansion in the international markets. Continuous expansion will not only
help the organization in maximizing the scope of sustenance but also assist the same in gaining a
competitive edge against the existing players in the market.
Objectives of the business
The objectives of the business are:
 To provide the customers with suitable merchandise as per the needs of the same
 To gain cost leadership over the other existing business ventures
 To convert the potential visitors into buyers
 To act as a link between the manufacturing organizations and the end level customers

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Change agents and suitable structure
The internal change agents for the organization are the corporate board members, CEO of
TESCO, managers and the employees. The change readiness of the internal change agents help
an organization in maintaining the efficiency of the operations as per the urgency faced by the
business (Jay 2013). The internal change agents like the board of directors, the CEO and the
managers in the respective departments of TESCO has identified the urgency faced by the same
in bringing forth modifications in the pricing strategy. The executive decision for the change in
the internal structure of the organization supports the modification of the same. On the other
hand, the employees follow the change schedule and operate on the changed processes in order
to facilitate the safe implementation of the change in the organizational structure.
The external change agents of TESCO include investors, suppliers and customers. The
major change agent for the organization is dependent on the changing needs of the customers.
The organization is aiming to achieve cost leadership in order to adhere to the needs of the price
sensitive customers (Rafferty, Jimmieson and Armenakis 2013). On the other hand, the
adherence to the needs of the price sensitive customers will be helping the business sin
maximizing the sales volume and thereby adding to the interests of the investors. The investors
make the CAPEX with the view of profitability of the venture. The organization aims at
enhancing the competitive edge of the same through attracting the attention of the customers
through the application of at par pricing strategy (Andreeva and Kianto 2012).
Implementation plan for the strategy
Goal Activity Person
responsible
Timeframe Rationale

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Market survey  The
organization
will undertake
a market survey
in order to
identify the
needs of the
price sensitive
customers
 Evaluation and
assessment of
the activities
undertaken by
the competitors
Market research
personnel of
TESCO
3 -4 months The market
research will be
helping the
organization in
identifying the
advancements
that are
undertaken by the
competitors and
the needs of the
price sensitive
customers
(Vaccaro et al.
2012). It will be
helping the
business in
designing the
processes as per
the needs of
gaining a
competitive
advantage.
Assessment of
feasibility
 Assessing the
feasibility of the
change through
Market research
personnel of
TESCO
2- 3 months The assessment
of the feasibility
will be helping
the organization

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evaluation of
applicability
 Assessment of
the market
condition
through
evaluating the
status of the
competitors
in identifying the
capabilities and
competencies that
might be faced by
the same while
implementing the
change
(Birkinshaw and
Gupta 2013).
Communication
with the
stakeholders
 Undertaking
sessions with
the stakeholder
groups
 Consultation
with the
stakeholder
groups on an
one- to- one
basis
 Developing
change
readiness
through
CEO of TESCO 4 months The
communication
with the
stakeholders
helps an
organization in
developing
change readiness
among the same
(Doppelt 2017).
On the other
hand, the
consultation with
the stakeholders
helps an
organization in

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meetings and
making the
stakeholders
aware of the
change that the
organization is
planning to
undertake
understanding the
capabilities and
competencies of
the same while
implementing the
change.
Communication
with the
stakeholders also
helps an
organization in
upholding the
collaborative
functioning of the
stakeholder
groups as per the
common
objective of the
business (Karim
and Arif-Uz-
Zaman 2013)
Budgetary
considerations
 Consultation
with the
accounts
department of
Accounts and
Financial
authority of
TESCO
7 months The budgetary
considerations of
the business will
assist the same in
identifying the

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the organization
 Allocation of
costs and
resources for
implementing
the change
 Structuring the
budget in order
to identify the
expenses that
might be
undertaken by
the organization
while
implementing
the change
financial
capabilities and
competencies of
the same while
implementing the
change (Cameron
and Green 2015).
On the other
hand, the
consultation with
the financial and
accounts head
will assist the
business
identifying the
areas where
resources are to
be invested.
Implementation
of change
 Implementing
the pricing
strategy and
making the
target audience
aware of the
change through
Accounts and
Financial
authority of
TESCO
5 – 7 months The change that
is being planned
by the concerned
organization is
related to the
pricing strategy
of the same. The
change in the

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promotion pricing strategy
will be helping
the organization
in adhering to the
needs of the price
sensitive
customers (Matos
Marques Simoes
and Esposito
2014). On the
other hand, the
suitable
promotional
practices will b
helping the
organization in
making the target
audience
(Customers)
aware of the
change in order to
gain competitive
advantage
through cost
leadership in the

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market.
Feedback
monitoring and
control
 The
organization
will collect
feedbacks from
the different
customers and
market research
in order to
identify the
impact of the
change on the
organizational
performance
 The
organization
will evaluate the
KPI (Key
Performance
Indicators) in
order to identify
the efficiency of
the change in
the
IT executive of
TESCO
Once in three
months
The evaluation of
the feedbacks will
be helping the
organization in
understanding the
progress that is
being made by
the same through
the
implementation
of the modified
pricing strategy
(Hamraz,
Caldwell and
Clarkson 2013).
On the other
hand, the
assessment of the
KPIs will assist
the organization
in understanding
the alternative
course of action
that might be
undertaken by the

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organizational
model
same in order to
satisfy the needs
of the price
sensitive
customers
KPI
The Key Performance Indicators of the organization will aim at delineating the different
success factors that might be achieved by the organizational change procedure. Cook (2015)
noted that change management procedure in an organization depends on the basis of the success
factors and the manner in which the change contributes to the performance of the venture. As per
the case of TESCO, the major KPI is the increase of the price sensitive customers. The cost
leadership technique is focused on attracting the attention of the price sensitive customers
towards the product offerings of TESCO. In this relation, the at par pricing strategy will be
implemented by the organization in order to ensure the growth of the organizational consumer
base. The change that is being planned by the organization will aim at maximizing the
involvement of the price sensitive customers (Millar, Hind and Magala 2012). The
organizational KPI will delineate a 4.5% growth of the price sensitive customers in the
organizational context. The reduction in the pricing strategy is aimed at maintaining the loyalty
of the price sensitive customers towards the organization. The organization encounters a threat of
the new entrants and the existing competitors like Sainsbury's, Asda and Morrison's. The cost
leadership will aim at retaining the price sensitive customer base for the organization, which will
help the same in achieving a competitive advantage over the players.