Analysing Tesco's Organisational Vision and Strategic Direction Report

This report delves into the organizational vision and strategic direction of Tesco, a prominent UK-based retail organization. It begins by assessing the roles of key stakeholders, both internal (shareholders, employees, IT, marketing, HR, and store operations) and external (customers, suppliers, investors, and the government), in relation to Tesco's vision of global growth and customer loyalty. The report then analyzes internal and external factors impacting Tesco, utilizing a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It explores political, economic, social, technological, legal, and environmental factors. The report then creates a written vision for Tesco, establishes the intention to develop its strategic direction, and analyzes methods for communicating the vision to engage and inspire employees, including clear messaging, building market-based behavior, and utilizing meetings and email communication. It also assesses ways to build support for the vision, focusing on relatability, commitment, and trust. Finally, it analyzes the leadership behavior needed to promote the vision and outlines the strategic planning process for Tesco, including sharing information and communicating a consistent message. The report concludes by summarizing the key findings and recommendations for Tesco's future strategic direction.

Developing
Organisational Vision
and Strategic Direction

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Assessing the role of the key stakeholders of Tesco in relation to their vision(240)..................1
Analysing the factors that impact on Tesco and its vision..........................................................3
TASK 2............................................................................................................................................5
Create a written vision for Tesco................................................................................................5
Establishing the intention to develop the strategic direction for Tesco......................................5
TASK 3............................................................................................................................................5
Analysing the methods for communicating the vision, in ways which will engage and inspire
others in Tesco............................................................................................................................5
Assessing the way of building support for this vision................................................................6
Assessing ways in which the vision and strategic direction will be communicated to the
external stakeholders...................................................................................................................7
TASK 4............................................................................................................................................7
Analysing the leadership behaviour needed to promote the vision.............................................7
Assessing what is necessary to embed the vision in the organisation or division......................8
Using the vision to derive the organisational objectives which set the strategic direction.........9
Outlining the strategic planning process which will be used for Tesco....................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
It is important for almost all sort of organisations to operate with some predetermined
goals and objectives to proceed towards a successful world of business. It should be basically
supported by their corporal aims that must be undertaken in consolidation to their stipulated
vision and missions. This in turn enlightens the agenda of moving towards a strategical direction
for the fulfilment of their leading business intent (Dahlgaard, Chen and Dahlgaard-Park, 2013).
The present report has discoursed upon a similar consideration of a chosen retail organisation
named Tesco in UK whose organisational visions are being developed to move onto a strategic
orientation of business. It is a well known organisation in the retail sector of UK and has been
established in early 19 centuries. With a foundation period of 98 years, it is currently known to
serve in around 6, 553 stores all over the globe with more than 476, 000 number of employees
with a major contribution in the enhancement of UK's economic condition.
TASK 1
Assessing the role of the key stakeholders of Tesco in relation to their vision(240)
Stakeholders are one of the most eminent bodies of almost all sort of organisation where
they are keenly interested in the company affairs and its other ongoing events and has a greater
role in the overall operation of the firms like Tesco. They are hereby divided in two leading parts
and are usually being recognised in the form of internal and external organisational stakeholders
(Cresswell and Sheikh, 2013). However, each one of them are required to perform their distinct
set of roles that are duly related to the set organisational vision of Tesco which is “To globally
grow as one of the most high valued business by serving in almost every corner of the world and
attain the trust and loyalty of the community with whom they are operating their business.”
Internal Stakeholders Roles in corporation to Tesco's vision
 Shareholders Shareholders are playing vital role in success
of Tesco operations and functions. In this
aspect, they have to arrange general and annual
meeting. They are also taken part to elect
directors and executive officers to make
effective operations. Hence, company
management is consistently work and grow in
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effective way.
 Employees
◦ IT department
◦ Marketing division
◦ Human resource
◦ Store operations
Employees are another important stakeholders
who perceive role to make successful results.
IT department employees requires technical
knowledge so that it would be beneficial to
make effective operations (Fraj, Matute and
Melero, 2015). Marketing division assist to
assess the demand of customer regarding Tesco
products. Human resource management also
play vital role to make effective results through
satisfying customer demand.
External Stakeholders Roles in corporation to Tesco's vision
 Customers These are one of the most immediate
stakeholder of Tesco where they are playing a
very important role of purchasing goods from
Tesco in order to higher their sales the
company should provide effective material and
products.
 Suppliers In order to maintain relations with suppliers
there are effective results attained at
workplace. Each supplier need to take
responsibility towards company products
(Cresswell and Sheikh, 2013). This is because,
they are providing raw material to Tesco which
ultimate goes to customer.
 Investors Investors have main role within the capital of
Tesco. They are buying and selling company
shares to earn profit. Thus, they have to assess
financial statements and valuation of assets.
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 Government Government determines their role to form
rules, regulation and promote to general
welfare in Tesco. In this aspect, they are easily
deals with welfare of community.
Analysing the factors that impact on Tesco and its vision
There are two types of factors generally create impact on Tesco and its vision such as
internal and external. This analysis assist to the company to enhance strengths and opportunities
for accomplish their vision.
Internal environment analysis
In internal environment SWOT analysis have been taken that helpful to identify internal
strength and weakness of the company. Further, external opportunities and threats measure to
make strategic position of business.
Strengths Weaknesses
 Tesco is the largest retailer enterprise in
UK that also operates in various other
nations.
 Their profit and revenue continuous
grow with generating policies.
 Their business strategy is very good
and effective (Fraj, Matute and Melero,
2015).
 The chosen firm is highly dependent on
UK and other European nations
countris to get raw material.
 They are unable to create
diversification in geographic areas.
 Tesco is charge generally high price as
compare to other firms which create
adverse impact on customers.
Opportunities Threats
 Tesco has opportunities to expand their
business in diversification.
 They can also foster to online sales and
home delivery as well.
 In UK there are various competitors so
that it is risky to make effective
position.
 Market is in competitive position.
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 They are also able to provides superior
products and services.
 Decline profits is creates negative
impact on firm and stakeholders as well
(Dahlgaard, Chen and Dahlgaard-Park,
2013).
External environment analysis
In respect to carry external environment analysis, following factors can be included:
Political factors: Tesco is operating in various parts of the world. Therefore, global
political factors at international market create impact on business operations. It includes tax
rates, government policies, legislation and many more elements.
Economic factors: Economic factors includes elements such as demand, profits and price,
etc. which create high impact on Tesco. When market is slowdown, it generates negative impact
on business operations that create high risk to the chosen firm (Cresswell and Sheikh, 2013).
Internationalization and diversification main reasons for successful operations in Tesco in
various areas of the world.
Social factors: Social and cultural changes are very crucial elements for the enterprise. In
order to changes in customer demand and requirements, Tesco is providing non food items at
workplace. Behaviour and attitude of each person influence to society so that changes need to be
implemented to concentrate on high sales.
Technological factors: Technological factor has the great impact on firm operations.
Advance and new technology must be implemented at workplace that assist to make successful
operations at Tesco. Through offering online and offline delivery, the company can easily attract
various customers.
Legal factors: Performance of Tesco is directly influence through policies and
regulations (Fraj, Matute and Melero, 2015).
Environmental factors: In global market, there are various environmental factors create
impact on organisation activity of Tesco. When the enterprise is pursuing in ethical aspect, Tesco
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has benefit to concentrate on their stakeholders. Through minimizing the wastage, the chosen
firm has targeted to reduce carbon from 50% in 2020.
TASK 2
Create a written vision for Tesco
Tesco is operates at international level so that they have creates various vision to develop
effective results in their performances. Their vision are as follows:
 Established more outlets in different areas of the world.
 Create modern and innovative ideas to grow business.
 Inspiring, earning trust and loyal towards customers and other stakeholders as well.
Establishing the intention to develop the strategic direction for Tesco
In respect to develop the strategic direction for Tesco, following elements are included
that assist to achieve their vision and positive outcomes:
Share the right information: In order to develop the strategic direction, it is very
important to share right information within the organisation (Cresswell and Sheikh, 2013).
Strategic direction alliance could be include intellectual property which determines through
various research and development that owned through multiple partners.
Communicate one message: In this aspect, strategic direction can be completed through
communicate only one message. Through this way, country can easily provide useful
information regarding product and services (Gollenia, 2016). Hereafter, Tesco will easily
ascertain effective results within the enterprise.
With the help of above two elements, strategy in Tesco will be developed and it assists to
accomplish their vision.
TASK 3
Analysing the methods for communicating the vision, in ways which will engage and inspire
others in Tesco
In the chosen enterprise, it is very important to serve progress and results against
company strategy. However, it is very important to motivates people to make profitability at
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workplace. With the help of following methods, Tesco will easily communicate their vision in
market: Keep message very simple: Most of the businesses have deeper meaning to influence
strategy and decision making. Through making deeper meaning, employees can
determines purpose and beliefs at centre (Richey and Klein, 2014). However, Tesco need
to ensure that their message is very simple to inspire people which can easily relate to
understanding. Build behaviour based on market and customer: For employees of the chosen enterprise
need to ensure that they are able to understand strategy. In this way, they can easily
determine competition which needed for better results. Challenges are also effectively
covey to other people that assist to assess market and customer. Manager of Tesco need
to expose effective results and brings to team members together. Purpose is also needed
to encourage their team members. Therefore, specific response and new ideas can be
generates with new behave that based on learned (Stensaker and Vabø, 2013). Schedule employees meeting for corporate headquarters: In addition to this, another
method for communicate strategy is schedule for employees meetings within the
corporate headquarters. In this way, Tesco need to set up presentation and appoint person
to facilitate the meeting. Members of management includes manager, CEO, employees,
shareholders and investors.
 Send mass e-mail to each employee with including presentation: In order to accomplish
results, it is important to send video, power point blog and presentation to employees.
Hence, employees are encourages and influences through e-mail (Harris, 2013). In this
way, Tesco need to assign duty to each person in human resource with responsibility.
Assessing the way of building support for this vision
In respect to determines build to support the vision, it is very important to Tesco to
implement following elements:
Start with ability to relate vision: In respect to meet with goals and objectives, there are
various elements which need to be implemented to develop performances. With the help of
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primary motivation for teamwork, challenges are face by Tesco so that it make strong position
within the market.
Commitment: Commitment can be creates adverse impact because different assumption
of employees within the firm. In this way, productivity will be enhanced that defined to develop
results at workplace (Birasnav, 2014).
Trust: In vision of Tesco, trust is another important element that build support. In this
aspect, goals and objectives can be relate to vision.
Assessing ways in which the vision and strategic direction will be communicated to the external
stakeholders
There are various methods that assist to communicate vision and strategic direction to
external parties. They are as follows: Advertisement: In order to determines effective results, external stakeholders are another
important element that assist to provide information to them regarding business vision
(Cameron and Green, 2015). In this aspect, advertisement is the best way Tesco can
provide useful information through newspapers, articles and many other elements. It
assists to develop profitability at workplace to get employee participation. Online resources: Online resources another important element which assist to make
effective results at workplace (Cresswell and Sheikh, 2013). In this way, Facebook,
Twitter and other important elements are included that helpful to make positive results.
Through establishes these elements, Tesco can provide information to their stakeholders
regarding vision.
 Event and seminar: Event and seminar also assist to enhance profitability at workplace
through providing useful information. In this way, products and their feature must be
develops in effective way that recorded for analysis business results (Dahlgaard, Chen
and Dahlgaard-Park, 2013). However, experts also take part in event and seminar so that
it would be beneficial to Tesco to provide products in effective manner.
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TASK 4
Analysing the leadership behaviour needed to promote the vision
Leadership behaviour is requires perform various functions and operations in different
areas of the market (Alagaraja, 2013). In this aspect, Tesco can accomplish their objectives and
goals that needed to promote vision. In this way, in the following term the chosen business can
promote their vision:
Identifying the standards and their applicability: Strong leaders and leadership teams are
very important that assist to sustain higher level objectives and plans. In this way, vision can be
determines in term of safety and reliability. Link can be creates between presence of effective
leaders and team members. This document is also identifies standard of effective leaders so that
framework can be develops within the industry. There are standard also needed to perform
effective functions in the industry. Hence, leadership team models and behaviour is also effective
for such members (Miller, 2016). These standards also applied on other parts of the organisation
such as attributes which needed to consist direct impact on operations.
Relationship to the performance objectives and criteria: This elements support to
document that assist to achieve performance objectives and criteria through provide detail
information. In this aspect, focus has been made on leadership attributes and team effectiveness.
There are various variables included such as history, culture and style of leaders to determines
effective results. Attributes are most important element which assist to enhance level of
performances in specific challenges (Hayes, 2014).
Development of the attributes of effective leaders and teams: Due to weak leadership
teams and organisation, retail industry faces continuous challenges at workplace. In this aspect,
performance also driven for key drivers of decline the profit of market. After review the industry
strength and areas of improvements, interactions with high performing in Tesco requires. It could
be applicable in research with industry groups and executives that commonly associated with
performance measurement (Fraj, Matute and Melero, 2015).
Assessing what is necessary to embed the vision in the organisation or division
Most of the leaders have craft vision statements for their enterprise. In this aspect, Tesco
is very powerful retail business which determines effective vision to accomplish their targets.
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There are such elements which need to be included in the vision of organisation division. They
are as follows:
Vision must be determines in positive and future oriented: It is very important that vision
of the organisation is determines in positive aspect. In this aspect, organisation divide their
activities and task that assist to accomplish business goals and objectives in successful manner.
Therefore, Tesco need to assess it for future outcomes which assist to promote the business
objectives and goals. However, it creates profitability to ensure vision for future results
(Marchington, Wilkinson and Kynighou, 2016).
Inspiring and uplifting to each member of the organisation and reflect to organisation
values: In this aspect, Tesco need to analysis their values which ascertain to develop effective
results within the firm. In this way, profitability can be measure through employee participation
to creates value in firm.
Set standards of excellence: With the help of selling standards, Tesco can make strategy
to accomplish their results. Hence, in this way, they are inspires and commitment to provide
unique characteristics in their products and services to customer. Hereafter, vision will be
achieve easily (Borrego and Henderson, 2014).
Using the vision to derive the organisational objectives which set the strategic direction
Vision of Tesco is determines as the broad aspect which assist to promote and improves
profitability. It determines specific and broad terms to accomplish results and targets that
develops performances at workplace. With the help of SMART objectives, strategic direction is
considered.
Specific: Tesco objectives are related to specific outcomes and results which assist to
promote the outcomes and performances in effective manner. In this way, the chosen firm need
to make specific outcomes for understand activities as per vision requirements (Melnyk, Bititci
and Andersen, 2014).
Measurable: Objectives are demonstrates in measurable context that provide environment
and resources to accomplish desired results. In this way, continuous development need to be
implements at Tesco.
Attainable: Vision should be attainable with specific activities that assist to promote the
objectives and goals at workplace.
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Realistic: In this way, the cited firm should assess realistic of vision to attain it in specific
aspect.
Time bounded: In specific time period, each activity need to be completed according to
time that assist to make effective results (Malphurs, 2015).
Outlining the strategic planning process which will be used for Tesco
In respect to determines way, following process need to be included for vision of Tesco:
Determines position: In order to make position, Tesco should include issue, data from
retail industry and market. This assist to find opportunity within the business to address issue. In
this aspect, customer insight also analyse through assess their satisfaction and future demand as
well. However, employee input determine that implement strengths and weaknesses of the
business.
Develop strategy: In this strategy, Tesco ensure their vision, value, competitive
advantages, strategies and long term objectives. These all elements are helpful to develop
effective results to forecast financial projection with vision of firm. With this regard, core
purposes are develops which assist to create brand image of the firm (Neubauer and Lank, 2016).
With the help of competitive advantages, unique position has been made at workplace for
develop effective results. There are strategies also used which assist to established approach to
make success. Hereafter, balanced framework of objectives are determines within the business
environment.
Build the plan: With the help of SWOT analysis of Tesco, priorities could be set and
SMART goals are develops in term of short and long term goals. In addition to this, key
performances indicators are also determines that assist to make progress at workplace (Ferguson,
Frantzeskaki and Brown, 2013). However, there are several members of team also demonstrate
their own aims and goals as well. In this aspect, budget is also needed to accomplish vision of the
chosen firm with a plan.
Manage performance: It is the last step to build support on management performances.
Tesco considered communication strategy within whole organisation to establish schedule for
review of business progress. There are leverage tools also used that assist to train all team
members to use plan for accomplish vision. In order to accomplish vision, the cited firm ensure
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vision in small activities (Alvesson and Sveningsson, 2015). This is because, it will assist to
make responsible to each member at workplace. Therefore, they can hold there progress with
review and modify all elements. Hereafter, vision is update annually that include review at the
end of the year to make next plan.
CONCLUSION
From the above report, it has been concluded that in Tesco internal and external both
types of stakeholders are playing vital role. It assists to create effective functions and operations
within the environment to enhance profitability. Furthermore, it summarized about environment
analysis to create vision in chosen business. In this way, the enterprise can identify factors which
creates impact on performances of the company. Vision of the business is enhances their outlets
and innovative or modern products to develops profitability.
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