Strategic Management & Leadership Report: Tesco's Strategy Analysis

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This report provides a comprehensive analysis of Tesco's strategic management and leadership strategies. It begins with an introduction outlining the core concepts and then evaluates the relationship between corporate, business, and operational strategies. The report utilizes strategic models and tools, particularly PEST and force field analysis, to assess the internal and external factors influencing Tesco. It evaluates success factors, recommends strategic options based on business objectives, and identifies change agents. The report also covers the development of monitoring and control systems, the design of key success indicators, and the analysis of implementation risks. Furthermore, it reviews the effectiveness of the strategic plan and includes a reflective essay on change management within the organization. The conclusion summarizes the key findings and recommendations, supported by cited references.
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Strategic Management
& Leadership
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Table of Contents
INTRODUCTION...........................................................................................................................3
Evaluating relation between organisation’s corporate, business and operational strategies.......3
Applying strategic models and tools............................................................................................3
Evaluating success factors for the strategies options that have developed..................................4
Recommending the strategic option with the business objectives...............................................4
Force field analysis of the organisation.......................................................................................4
Identifying change agents and proposing a suitable structure for the company..........................5
Developing a monitoring and control system in order to implement the strategic plan..............5
Designing key success indicators................................................................................................6
Analysing various risks during implementation..........................................................................6
Reviewing the effectiveness of the strategic plan........................................................................6
TASK 3............................................................................................................................................7
Reflective essay...........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERNCES:................................................................................................................................12
Books and Journals:...................................................................................................................12
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INTRODUCTION
Strategic management refers to the process of setting objectives, goals and procedures so
that they can achieve competitive advantages. It also includes processes which are responsible
for arranging resources and deploying a staff in an organisation effectively so that they can
achieve their targets and goals. Leadership is a part of his strategic management which leads
human behaviour so that they can accomplish activities and desired manner. They collectively
focus on the potential utilisation of available resources so that they can gain competitive
advantage and established their brand image. This report is based on Tesco which is British
groceries and Retail Company which is headquartered in England, UK. It was established in
1919 and its founder was Jack Cohen. This report will include external influences on
organisations strategy.
Evaluating relation between organisation’s corporate, business and operational strategies
It is very important for the organisations to match the business strategies with the
operations through which the organisation can achieve their goal in the future. Business
operational strategy can be defined as taking decisions related to the long term plans and mission
which the managers want to achieve in future (Novikova, 2018). Relation to the Tesco
management department of the company takes effective decisions related to the plans and
ensures that all the operational strategies will be made through which they can achieve the goal
of their business. The environment of the company is directly linked to the business because
more engaged employee’s results in the achievement of the goal.
Applying strategic models and tools
PEST analysis will be very active for the Tesco Company as a strategic tool that helps
them to find the internal as well as external factor. It is mentioned below in relation to the Tesco:
Political factors:- this factor includes various components like rules, regulations and policies
that are made by the government in order to carry out the operations of the business. Tesco has
operations in the country of UK and there is much political stability so they can carry out their
work smoothly.
Economic factors:- this factor includes various components like inflation, tax rate etc. It has
been seen in the time of the pandemic that it has affected the business operations in the country
of UK to a great extent (Dzwigol and et.al., 2019). From that Tesco can analyse these factors
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through which they can implement effective strategies in order to face the challenges of
pandemic and other problems.
Social factors:- this means that the organisation should fulfilled the needs and wants of the
society. From this Tesco can easily understand the desires of their customers from which they
can produce effective products and services.
Technological factors:- It is related to the automations and innovation that an organisation
should use in order to produce more productive products and services.
Evaluating success factors for the strategies options that have developed
From that model organisation can get more success by analysing the needs and wants of
the customers. Through that they will be able to use effective technology which has them to stay
in the competition in the market. The management department of the company will be able to
rely with all the policies and rules that have been made by the government.
Recommending the strategic option with the business objectives
PEST analysis will be the best strategy option for the company to consider while carrying
out their activities. Because that strategic option includes various components through which the
management department and the leaders can carry out the operations in a systematic manner.
Organisation will be able to update their technology in relation to the market trends which results
in the achievement of the objectives of the business which they want to accomplish (Mwakisaghu,
2019). This strategic options will facilitates the organisation to enhamces their customer based by
providing customer satisfaction as they will be able to find the customer needs through social
factor.
Force field analysis of the organisation
Force field analysis can be referred to as the strategic tool that helps in taking action when
the cause of any problem has been identified. In relation to the Tesco their lack of maintaining
quality products in the workplace and also unable to take decisions related to the changing
trends. Force field analysis is mentioned below relation to the Tesco:
Assessing the current situation: Tesco is currently serving various types of products and
services to their customers in the market.
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Defining the objectives:-the main objective of that company is to enhance the customer base by
providing customer satisfaction in the market. They wanted to change their management by
taking effective decisions related to the plans.
Identifying the driving forces: In order to increase the customer satisfaction they can update
their technology and improve delivery channels from which the customer can satisfy their needs
and wants time to time.
Identifying the restraining forces: in relation to the Tesco there are various restraining forces
that affect the quality of their products (Vera and et.al., 2022). One of the main restraint forces is
the organisational culture. Sometimes the management department of the company fails to
maintain a healthy work environment.
Evaluate the forces: these forces affect the operations of the company to a great extent. It has
been evaluated that there are various forces that affect the activities at the workplace.
Create an action plan: in order to achieve the customer satisfaction in the market Tesco should
make an effective plan through which they can deliver productive products and services to the
ultimate consumers.
Identifying change agents and proposing a suitable structure for the company
A change agent can be defined as an individual who facilitates change that should take
place in the organization. A change agent plays the important role in the organization in order to
make changes in the ways of production through which the management department of the
company can produce more effective products and services into the market. In relation to the
Tesco the management department of the company will hire the change gents from external
through which they will be able to promote the value of the organisation by providing more
customer satisfaction in the market (Najmi, Kadir and Kadir, 2018)) This will facilitate the
organisations introduce new processes procedures and structure that they can implement in the
workplace which they can produce effective products and services.
Developing a monitoring and control system in order to implement the strategic plan
To implement the strategic plan Tesco should consider various components and execute
various control measures in order to check the activities of the plan as per going according to the
objective they want to achieve in the future. It is very important for the management department
only company to analyse the overall market in the UK through which they can focus on those
customers to home they want to deliver their products. They wanted to announce their customer
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base by providing more customer satisfaction through their products so it is very important for
the organisations to identify the needs of their customers and fulfil them according to the latest
trends that are going on in the market. In order to monitor the strategic plan the organization
should use various KPIs that will help them to track various components of the organizations like
customer satisfaction profits sales etc. (Samimi and et.al., 2020). Tesco will be able to identify that
they are going as per the strategic plan or not and have them to give term competition to their
competitors that can affect their operational activities.
Designing key success indicators
Tesco wanted to improve their customer satisfaction and one of the main key success
indicators that can have them to analyse the activities of the plan is the customer satisfaction
indicator. It will facilitate managers and the leaders of the company to regularly analyse the
needs and wants of the customers and also find out that they are able to match the expectations of
the customers or not in the market.
Analysing various risks during implementation
One of the main risks in order to implement the strategies was the threat of the
competitors. Tesco wanted to increase their customer based by delivering productive products
and services to their customers and one of the main risks that they are finding in implementing
the strategies is that the coping of the process of productions by the competitors through which
the company becomes unable to stand out in the market (Keding, 2021). Another risk that the
management department of the company were facing at the time of implementing these strategies
that they were encoring so much expenses on the technologies in order to produce effective
products and it was very risky for them to get as much as returns they have invested in order to
get more customers towards their business.
Reviewing the effectiveness of the strategic plan
The plan that has been implemented in the workplace can be reviewed by evaluating
performance of the company in the market. By improving the qualities of the products and
services it can directly attracts the customers to watch the business because the customer wants
quality products through which they can satisfy their needs and wants. The strategic plans were
made in order to increase the customer base and it will prove to be much beneficial for the
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company because it will help them to gain more and more customers which results in the more
generation of revenue in the future.
TASK 3
Change management
There is key role of change in business organisation. It is seen that the nature of business
environment is dynamic and keeps on changing. It is necessary for the business organisation to
carry on effective manner so that they are able to grab the trend properly. It is seen that Tesco is
a multinational business organisation and there is need of taking right actions so that company is
able to gain advantage over all the others. It is seen that the company has diversified product
portfolio that helps them to serve the needs and wants of the customers. There is need of bringing
change and focusing on quality of products. It is necessary for the company to bring changes in
the quality of products offered by them. There is huge competition in the market and by
maintaining quality the company will be able to carry on the work in effective manner. The
change is necessary for a company and difficult to implement. The reason is employees of the
company are reluctant to change. It is necessary to work as per the changes in the market and
needs of the customers (Jayatilleke and Lai, 2018). There are so many models that help the
company to bring change. These models help the company to manage the employees and bring
suitability. The quality of products provided to customers will enhance the success of the
business organisation. The use of Kotter's change management is necessary to bring change. It
helps to make the employees of the business organisation aware about the chance and motivate
them to bring change in effective manner. There are eight steps that are followed by the company
in order to bring the change. The urgency must be told to the employees so that they are able to
implement the same. The employee’s are told about the vision of bringing change so that they
are able to manage the change in appropriate manner. The employees must be communicated
about the vision of the business so that they work effectively in favour of the change. Tesco must
communicate effectively with the employees so that they are able to bring suitable changes in the
process of production (Maali and et.al., 2020). By providing quality products to the customers
they are able to attain success. There is need of removing all the obstacles that can take place in
the process of managing change. It becomes necessary to help the employees at each and every
stage. The short term goals of the employees must also be celebrated so that they are able to
work with more effectiveness. The change must be implemented in effective manner and this
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will make changes in the overall operations of the business. There is need of choosing the right
model of change so that goals and objectives are implemented. The use of right tools is necessary
for the company. The Kotter's model is a step by step process that helps to bring change in
effective manner. It becomes easy to take steps and involve the employee’s in success of the
business.
Reflective essay
There are many strategic options identified in Task 1 which are beneficial to take
decisions for bringing change in the organisation (Randrup, and Jansson, 2020). One of the best
change model identified is kotter which has its 8 stages to bring possible changes with an
effective process. Therefore, it shows that, this model supports the strategic options Tesco have
to improve their quality of products. As per effective change process, feasibility is most valuable
factor which helps in bringing action. This factor support the stage of model in making practical
implementation of empower action. In order to make employees aware about the changes and
regulation a new workplace policies, the strategies must be feasible which will suit to the
business environment. Strategic fit is also another choice for the tesco to choose most fitted
strategy for their development of quality product and process (Doyle, and Brady, 2018). When
kotter model applies, it supports identification of objectives and mission for accomplishing
targets and set a path towards achieving success. Therefore, the history of tesco revels that their
stargates could not applied as according to the plans due to uncertain clashes and unsuitability.
So that, now it is required to make the changes according to certain requirements and avoid
interdependencies of the strategies. There are many situation which requires different strategies
and factors to solve business problems. For example, tesco needs to improve their quality of
products so they could not apply strategy of innovation to bring new products. Rather, the focus
is required on existing product process which bring quality and quantity both for the customer.
The strategic option for giving risk and rewards is also crucial for tesco. It has suggested in the
kotter change management that, change could bring effectively by giving motivation to the
employees. When there will be culture of motivation and reward system, it will impact on
bringing positive culture on the workplace. The company have various risks and rewards which
have profitability index, playback period and IRR system. This reflects that the kotter change
model revels that create short wins is an opportunity for the company to grow and inspire others
with a phenomenal performance. Short wining is great strategy which support the environment of
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tesco where managers put focus on bringing changes per the requirements. Due to which, it has
analysed that all the strategic choice is effective for the tesco which can be completed and taken
into practice by applying change model. The change agent of tesco could apply strategies for
using each strategic options in contingent situation wherever it is required. The organisation
needs to develop more superior quality products in which cost must be minimised and rise in
customer satisfaction. This will eliminate customer issue and tesco will get results in high
profitability standards and competitive advantage. For that instance, this change must be
regulated among all the employees as they are the key individual who could apply the strategies
in practical situations.
Gibbs reflective model:
This model is an effective cycle which shows an overall experiences which has occurred
in an individual life. As per this, a person could analyse the whole situation by asking themselves
about what has happened, how it went and what changes are required further (Miller, 2018). In
my own experience as a change agent, I need to make self assessment on my abilities and skills
to display my potential in bringing change within the company. For that instance, the 6 stages of
Gibbs model is described below:
Description: This stage refers to the whole description of the experience which helps in
finding its overall results. In my experience of bringing change in the tesco, I went through the
operations of company to find the mistakes. There is requirement of clear guidance of the
numerous tasks for bringing quality products for the customer. Therefore, I supervised all the
activities through purchasing resources and inventory to check its quality and efficiency. I have
decided to regulate task among the other staff members. There focus is to act upon the key
requirements of tools and techniques which were not sufficient in the company. I start checking
all the manufacturing process and testing before serving to the customers. This has shown my
change agent skills to give guidance for maintaining quality of the product (Demir, 2018). Also,
the overall experience demonstrate that, I have made my efforts to find the root cause of
problems and try to maximise it by giving guidance for bringing new technology, make
productive efficiency and first test the product without selling it into market.
Feeling: this stage shows all the feeling and sentiments covered during the overall
experience. I felt shocked when I looked in the overall operations of Tesco in quality
management. Here is requirement of finding each and every mistake that had made previously
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which reduce the quality of products. I felt amazed that all the quality Essentials are not maintain
and followed. I look over the production process and wants to encourage the staff to look for root
causes and try to build quality products in low cost rKose, and Kose, 2019). I started giving
instructions and guidance to the production staff which make me able to enhance my leadership
skills as an agent. When I came across with many mistakes and changes some of the staff was
not happy due to my response and they tried to criticize me. I lose my motivation and felt
exhausted but I was sure that my strategy will be helpful for the company. Therefore, all the staff
started focusing on my instructions sections and work accordingly which has raise my
confidence.
Evaluation: the stage shows that how the experience has went and what could be
improved . it has evaluated from my own experience as a quality agent in Tesco, I evaluated that
my skills are better and improvised when I guide my team members in other staff to bring quality
changes (aleha, and Machuki, 2018). The overall experience was gone well but some of the
areas like my communication and soft skills were missing which has some issue during
workplace activities.
Analyses: this stage analyse what factors and elements has contributed in making the
experience worthwhile (MillerNovikova, 2018). I analysed that, I need to improve some of
many skills which build in my areas. I learned to involve staff and employees in workplace
activities as I have good leadership skills. This shows that, there is requirement of key activities
as being a quality agent. I need to be patient and have soft skills to behave in right manner.
Conclusion: this stage shows that, I have concluded that there is need for improve g
some skills for my future career growth. I will focus on communication and soft skills to talk
wisely and strategically.
Action plan: I have to develop communication and patience skills through which i can
communicate with my staff and d employees (Mwakisaghu, 2019). These skills will be
developed through taking part on interpersonal session, reading inspirational books and
meditation to keep my mind calm.
CONCLUSION
It has concluded that, the organisation works in internal and external market. There are
many factors which impact on the company values and strategies like competition, customer
satisfaction and key personnel. This shows that, there is requirement of effective strategies to
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fight with competition and learning. This report has shown many key areas for bringing change
in the organisation for quality control.
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REFERNCES:
Books and Journals:
Doyle, T. and Brady, M., 2018. Reframing the university as an emergent organisation:
implications for strategic management and leadership in higher education. Journal of
Higher Education Policy and Management, 40(4), pp.305-320.
Miller, E.W., 2018. Nonprofit strategic management revisited. Canadian journal of nonprofit and
social economy research, 9(2).
Kose, E.K. and Kose, M.F., 2019. Strategic Management and Leadership of Education: Central
and Local Perspectives in Turkey. Educational Policy Analysis and Strategic
Research, 14(3), pp.347-365.
Novikova, I.V., 2018. Strategic management of labor resources. Russian Journal of Industrial
Economics.
Mwakisaghu, J.K., 2019. Strategic management change. International Journal of Advanced
Research in Management and Social Sciences, 8(5), pp.8-22.
Jaleha, A.A. and Machuki, V.N., 2018. Strategic leadership and organizational performance: A
critical review of literature. European Scientific Journal, 14(35), pp.124-149.
Demir, F., 2018. A strategic management maturity model for innovation. Technology innovation
management review, 8(11).
Randrup, T.B. and Jansson, M., 2020. Strategic management of urban open spaces. In Urban
Open Space Governance and Management (pp. 190-203). Routledge.
Jayatilleke, S. and Lai, R., 2018. A systematic review of requirements change
management. Information and Software Technology, 93, pp.163-185.
Maali and et.al., 2020. Change management practices for adopting new technologies in the
design and construction industry. Journal of Information Technology in
Construction, 25, pp.325-341.
Dzwigol, H and et.al., 2019. Formation of strategic change management system at an
enterprise. Academy of Strategic Management Journal, 18, pp.1-8.
Keding, C., 2021. Understanding the interplay of artificial intelligence and strategic
management: four decades of research in review. Management Review Quarterly, 71(1),
pp.91-134.
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Mwakisaghu, J.K., 2019. Strategic management change. International Journal of Advanced
Research in Management and Social Sciences, 8(5), pp.8-22.
Najmi, K., Kadir, A.R. and Kadir, M.I.A., 2018. Mediation effect of dynamic capability in the
relationship between knowledge management and strategic leadership on organizational
performance accountability. International Journal of Law and Management.
Novikova, I.V., 2018. Strategic management of labor resources. Russian Journal of Industrial
Economics.
Samimi, M and et.al., 2020. What is strategic leadership? Developing a framework for future
research. The Leadership Quarterly, p.101353.
Vera, D and et.al., 2022. Extending the boundaries of strategic leadership research. The
Leadership Quarterly, p.101617.
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