Tesco's Business Environment And Leadership Assignment Sample

Introduction Of Strategic Management and Leadership

UNIT 1

Highlighting the different stakeholders and analyzing some of the external and internal environmental factors that impact Tesco

In working with, Tesco which is an international retail organization based inside the UK. It also operates a broad variety of retail layouts, involving supermarkets, handiness stores, Hypermarkets, and digital retailing. Tesco, among the biggest retailers globally, offers millions of consumers every day and significantly affects some stakeholders. Tesco, a well-known UK retail huge, is aware of the multiple stakeholder groups that have an impact on its everyday activities and total success. Tesco puts its clientele above all else and is cognizant of the crucial influence they have on sales and profits (Franco, 2021). The business's dedication to accommodating changing client demands shows that customer happiness is still of the utmost importance. To preserve its standing as an industry leader, Tesco also puts a high value on its workforce, encouraging workplace wellness and happiness. For a quick effect on the stock price, investors actively watch financial outcomes and tactical decisions. Partnerships with moral suppliers provide high-quality goods. Laws and community involvement are made easier to navigate because of Tesco's dedication to business responsibility. In an ever-changing retail environment, it's critical to be quick to react to competitors. Tesco's future success ultimately depends on its ability to balance the needs of many stakeholders.

External assessment

Porter's Five Forces Analysis

• Threat from New Entrants- It is difficult for novel competitors to get on the same level as Tesco given its entrenched dominance within the retail sector. A few obstacles involve scale savings, brand awareness, and availability of accessibility through channels.
• Supplier's Power- Tesco has a lot of negotiating leverage over suppliers due to its scale, which enables it to get good terms as well as pricing for goods.
• Buyer's Power- Clients have a wide range of options and a sizable amount of negotiating authority within the retail sector. Tesco needs to provide quality products at affordable costs to keep customers (Kho, et.al, 2023).
• Threat of Substitution- Numerous alternatives are offered within the retail industry. Tesco's wide selection of products and ease of use lessen this danger, though.
• Competitive Rivalry- Tesco is up against fierce rivalry from rival major retailers such Walmart as well as Amazon, which drives up prices and encourages creativity in services.

Stakeholder's Assessment: Internal and External

Power Interest Matrix

• High power, highly interest- This group includes stockholders and clients. It has a big effect on Tesco's activities and keeps a close eye on how it does.
• High power, Less interest- Despite their potential lack of interest in Tesco's regular business, governmental and legislative bodies have a considerable impact on such activities through laws as well as regulations.
• Low power, highly interest- Although communities as well as workers may not have a lot of influence on their own, their combined interests could have an impact on Tesco's business and image. For example: Societies lay more focus on eco-friendly operations which mainly includes recycling, waste management etc.
• Low power, less interest - Suppliers and rivals often don't have as much direct effect on Tesco's company's activities and aren't always that interested in what goes on within the company.

Tesco has many options for controlling the environment around it. Initially, to lessen reliance on the conventional grocery market and to accommodate changing customer tastes, diversification is essential. Tesco may access novel sources of income by broadening the scope of the goods and services it provides (Torelli, 2020). Adopting sustainable methods is also essential in a modern eco-aware environment. Investments in environmentally friendly programs and moral sourcing are in line with changing customer preferences and improving the brand's image. Along with this, to succeed in e-commerce as well as appeal to a larger consumer base, a solid digital change plan is necessary. Tesco successfully navigates new regulations because of good government contacts and active engagement in legislative talks. Finally, Tesco's standing within the market continues to be reinforced by community involvement programs that assist those who live nearby.

Defining strategies & designs which Tesco is incorporating for building better organizational relationships and effectiveness

By doing assessment, it has found that Tesco undertakes competent strategies for managing good inter-organizational relationship. In the competitive business arena,. It is highly required for getting the desired level of outcome or success. Optimistic inter-organizational associations play a vital role in increasing work-life as well as contributing to a company's achievement in many ways:

• Worker Contentment and Well-Being- A friendly and cooperative working atmosphere may be created by having strong connections with coworkers, supervisors, and outside stakeholders. This can increase worker happiness, satisfaction, higher productivity and profitability at work.
• Creativity and Knowledge Exchange- The exchange of data and thoughts between divisions and outside collaborators is facilitated by efficient interaction and cooperation, which promotes creativity and solving issues (Iddagoda, et.al, 2021).
• Efficiency and effectiveness- The efficiency of a company rises when its many components function effectively together because activities are accomplished more quickly and smoothly.
• Client fulfilment- An effortless client experience may be achieved by coordinating efforts within divisions and with other parties involved, which will eventually increase client happiness and commitment.
• Competitive edge- Good inter-organizational ties can help companies adapt more quickly to market shifts and difficulties, providing them with an edge over their rivals.

Executing an extensive approach is crucial to improving organizational connections and performance. Creating efficient communication channels is crucial initially. Such avenues ought to encourage openness and data exchange among groups as well as with outside partners. The flow of data may be facilitated by regular conferences, digital communication devices & systems for input, which will encourage a transparent and collaborative culture. Another crucial strategy is to promote the creation of teams with multiple functions. Such groups must be made up of people from various divisions or outside organizations to ensure diverse viewpoints and shared solutions. Teams from different departments can promote innovation and assist firms in better adjusting to shifting conditions.

To resolve clashes peacefully, procedures for resolving conflicts have to be in place. Positive dispute resolution may be facilitated through mediation, open communication, or the engagement of an outside observer, thereby preventing problems from developing and having an adverse effect on partnerships (Kwon, 2021). Positive connections are fostered in large part by effective leadership. Leaders may be helped to set the appropriate example with education in leadership that stresses the value of working together and collaborating. Staff may be further encouraged to give preference to harmonic teamwork by including relationship-linked measures in performance assessments.

The success of both parties is assured through making investments in supplier and partnership relationship administration systems, which include regular interaction, joint preparation as well as performance reviews. Building solid relationships both inside and outside is facilitated through staff involvement programs, ongoing learning, and exchanges of information. Finally, it is essential for all parties involved to be ready for a crisis. Reactions to crises that are coordinated effectively can lessen their negative effects on interpersonal dynamics and the efficiency of organizations. In conclusion, the key to developing a positive as well as productive work atmosphere is to take a complete strategy that incorporates various methods and designs.

UNIT 2

PESTLE /SWOT Analysis and analyze the impact of key factors and evaluate how they affect the performance of your company.

In working with the Tesco Company conducting an environmental analysis utilizing Pestle and SWOT that are described below:

SWOT Analysis

PESTLE Analysis

• Political- Government rules, like labor regulations and requirements for the quality of items, have a big effect on how retail businesses operate. Earnings are severely influenced by tax laws, whereas sourcing and selection of prices are affected by trade pacts and taxes.
• Economical- Sales are impacted by changes in buying habits due to the variations take place in economic aspects such as prevalence of inflation or recession (PESTLE ANALYSIS, 2023). The exchange cost can affect the costs of multinational supply chains. Levels of inflation are crucial components in retail businesses because they influence revenue margins as well as tactics for pricing.
• Social- Retailers should adjust to consumers' shifting tastes for healthy and environmentally friendly items. Target audiences are shaped by evolving demographics including urbanization and elderly people. Thus, in the context of Tesco cultural variables have a significant impact on consumer behavior.
• Technological- The development of e-commerce influences Tesco and shapes its online initiatives. Management of supply chains powered by technology improves effectiveness. Key elements of their day-to-day activities are reflected in how analytical data feeds tailored marketing and effective inventory control. For instance: By undertaking social media marketing strategy Tesco can develop awareness among the customers and thereby entices both market share and sales.
• Legal- Tesco strictly adheres to food hygiene and labeling laws to ensure the quality of its products and the confidence of its customers (Kho, et.al, 2023). They uphold employment rules, protecting working conditions. Hence, intellectual property right is essential for preserving unique goods.
• Environmental- Tesco has adopted green practices in response to the increasing urgency for ecological and moral sourcing. They must manage weather-allied logistical difficulties that affect the supply network while reducing their environmental impact.

According to the report, Tesco works in an ever-changing and difficult environment. Client expenditure and inflation are two economic elements that can have a direct influence on a company's financial success. However, technology improvements and shifting customer tastes also present potential for expansion through sustainable business practices such as online shopping. The oversight of supply chains and pricing structures may be impacted by governmental and regulatory modifications, including those in labor legislation & trade pacts. Tesco is well-positioned to take advantage of possibilities because of its assets, which include its strong brand awareness and worldwide presence. To keep its competitive edge, it must solve flaws including rivalry and sensitivity to economic recessions.

Apply the McKinsey 7S model and the new strategic direction that is needed for successful transformation.

A helpful method for evaluating a company's operational performance is the McKinsey 7S Model, which looks at 7 essential components Structure, Strategy, Skill, System, Shared Values, Style, and Staff. Tesco may be evaluated using this framework to determine its present state as well as possibilities for an entirely novel strategy.

• Strategy: Tesco has historically concentrated on becoming a top retailer within the UK, yet it is also growing its global presence (McKinsey 7S Model, 2023). Its marketing plan calls for providing a wide choice of goods, running numerous shop layouts, and establishing a virtual identity. Additionally, the business has stressed price leadership and client-centricity.
• Structure: Tesco has a hierarchy of power inside its corporate structure. In other instances, it now has multidisciplinary teams as well as simpler structures as a result of its increased agility in reaction to shifting market conditions.
• Systems: Tesco's effectiveness has been boosted by the use of advanced inventory control as well as supply chain technologies. Furthermore, its analysis of information and Customer relationship management (CRM) tools aid in tailored marketing as well as awareness of client needs.
• Skills- Tesco staff is skilled in an array of areas, including technological advances, analysis of information, and retail management (Demir, 2019). To improve personnel abilities, educational and growth initiatives have been put in place.
• Staff: Tesco has a large and diversified staff, with workers in a variety of fields, including IT, logistics as well as retail. Additionally, it gives more preference to inclusiveness and diversity when employing new employees.
• Style: Over time, Tesco's approach to leadership has changed. It has changed from an extra centralized strategy to one that is more participatory and customer-focused. Innovation as well as adaptation are priorities for the business.
• Shared Values: The basic principles of Tesco are being there for consumers, winning their faith, being innovative and having compassion for its employees as well as society. These principles have influenced its choices and activities.

Tesco, although being a recognized leader within retail, must deal with shifting industry issues. The business must begin on a tactical transformation path to thrive in this environment. It is crucial to embrace the digital age, with a greater emphasis on internet shopping along with information analytics to improve online buying (Ke?ek, 2023). Lowering the carbon impact and sustainably purchasing goods have to stay top priorities to connect with shifting customer attitudes. Customer-focused innovation, such as novel lines of goods, convenience upgrades in stores, and loyalty schemes, must be prioritized. Tesco's reach may be increased by looking at expansion in developing countries, especially in areas where the middle class is growing. For flexibility and outstanding client care, organizations must invest in staff growth and promote a flexible organization. Tesco's standing and achievements are further enhanced by fortifying relationships with the public and placing a high priority on data integrity and confidentiality. Tesco may fix industry problems, grow, and seek to add value for shareholders and consumers by adopting these strategic initiatives.

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UNIT 3

Comment on the leadership style that has always inspired you.

Transformational leadership is a specific sort of leadership that has always motivated me. By encouraging a feeling of individual development, innovation, transformational leaders possess the unique capacity to motivate as well as spur their people to produce outstanding outcomes. Foresight and enthusiasm for the days to come are characteristics that distinguish transformative leaders (Mansaray, 2019). They merely convey a captivating perspective to their supporters, yet they additionally foster a feeling of meaning that unites them. By setting an excellent instance and upholding the ideals of the company, these leaders inspire others.

Cultivating trusting bonds with their coworkers is the strength of transformational leaders. Their staff members experience a sense of empowerment and value because of the active listening, assistance and encouragement they give. They promote an environment of innovation and ongoing growth while encouraging the unique capabilities of every person. Leaders, who are following transformational approach lays more focus on taking measured risks and thereby encourages innovation. Their approach goes beyond merely setting objectives; it also focuses on fostering individual and group development, bringing about lasting shifts. And it shares my conviction in human potential and teamwork.

What leadership skills will be required to manage the team to meet the deadline in such a situation?

Being a project leader, in a condition where 2 main workers have gone from the team immediately before a large project's closing date. Effectual leadership abilities become significant to productively handle the team as well as make sure the project's completed on time. Being flexible and resilient are essential traits for project managers (López-Cabarcos, 2022). Obstacles and unforeseen adjustments are nearly a given in the unpredictably structured world of managing projects. Successful leaders quickly change their attention from lamenting the obstacles to identifying remedies and advancing the project after acknowledging them. The group feels more confident due to this mindset, which also shows a strong dedication to the project's accomplishment. The achievement of any task depends on efficient interaction, particularly when dealing with staff exits. Conversation that is honest and truthful is essential. The group needs to be informed about departures as soon as possible and has to be reassured that the work can still be finished effectively. By keeping channels for interaction open during the execution of the task, they will know everybody is on an identical site, which will reduce ambiguity and promote teamwork.

When dealing with a staffing shortage, delegation and work redistribution are essential. A wise manager evaluates the abilities and talents of the people who remain and assigns responsibilities appropriately. By balancing the duties, it is hoped that all individuals will be able to handle their tasks without feeling overburdened (Cui, 2021). Increasing team spirit is also essential. Assistance and encouragement are often helpful, especially in trying situations. Small accomplishments and benchmarks recognized and celebrated throughout the implementation of the project help maintain inspiration and promote a feeling of success. When unexpected obstacles appear, solving issues and making choices take the forefront. A proactive strategy is to promote group brainstorming meetings to identify remedies. The project's managers must be prepared to make prompt choices that are in line with its aims and objectives.

Due to employees leaving the organization, the deadline becomes more urgent Meanwhile, time management as well as prioritization of work becomes more crucial. To keep the task on the right path, successful managers concentrate on activities, establish precise deadlines, and constantly track performance. The toolset of the leader must additionally encompass risk evaluation and reduction (Lorinkova, 2021). The adverse consequences are lessened through recognizing possible risks and creating backup strategies. It is critical to comprehend how changes can affect the task's timeframe and decide on appropriate action. It is crucial to encourage teamwork and cooperation among the rest of the team. Teams that operate effectively are influenced by transparency along with making sure everybody feels included and appreciated throughout the decision-making procedure. Finally, loops for ongoing evaluation as well as input are crucial. Frequent performance reviews of the group and requests for feedback from teammates make it easier to make required changes to the project strategy and continue to make changes. Together, these components support achieving project objectives and successfully navigating unforeseen difficulties.

Case-Based Scenario: Question

Analyzing different innovation types and steps involved in the Tata Nano design and commenting on its failure

The audacious Tata Nano concept from Tata Motors sought to guide and innovate other manufacturers by bringing about significant improvements in the automobile sector. The Tata Nano featured a variety of creative kinds and processes in a daring effort to meet the demands of the developing Indian market. Tata Nano finally ran into problems and failed to live up to demands, notwithstanding the early excitement and commitment. The creation of Tata Nano demonstrated a stunning fusion of innovative styles. The primary goal of innovative products was to produce a secure and economical automobile that would revolutionize the Indian car industry by substantially lowering the price of ownership (Chundi, 2022). By inventive production processes that used lightweight components and simplified procedures to preserve cost-effectiveness without lowering standards, innovation in procedures performed a crucial role. A revolutionary innovative company model played a crucial role in addition to the item itself. The idea of the ‘People's Car' includes innovative distribution methods, creative financing plans, as well as locally produced parts, making automobile ownership for an even wider demographic. As a team, these ideas changed the car industry within India, demonstrating how creativity in products, processes, and company structures can all work together to bring about major transformations.

Tata Nano, which is India's People's Car, was created using some tactical decisions. A comprehensive market analysis was first conducted to understand the demands of the intended customer and to identify a requirement for an inexpensive family car. Employing low-cost components, optimizing the production procedure and eliminating extraneous features allowed for cost reduction, which was a crucial aspect. The group had to overcome technological obstacles to produce a tiny automobile with sufficient security and efficiency, therefore creative engineering was essential. The Nano became known as an icon of accessible mobility because of creative marketing tactics as well as successful supply-chain administration, which reduced prices by obtaining local parts. The extensive design procedure was completed when the distribution system and financial partnerships made the Nano available to a wider client base.

Tata Nano, which was originally lauded as the People's Car for its low cost and avant-garde styling, encountered several difficulties that added to its early failure within the marketplace (Sushil, 2019). Customers began to question the product's efficacy due to quality problems as well as security difficulties, notably claims of fires in the initial versions, which damaged its image. Although the price was Nano's main selling point, this unintentionally created the impression that it represented a ‘cheap' car missing in necessary amenities, which turned away potential consumers. Tata Motors had trouble properly promoting the Nano above its accessibility and failed to convey its larger value offer. It was difficult for Nano to sustain its market share as a result of the introduction of rivals in the area of reasonably priced compact cars. Customers in the warm and crowded metropolitan surroundings found it less tempting due to its few amenities, which included the lack of electric steering as well as a cooling system.

If reintroducing the Tata Nano was planned, these problems would require an extensive remedy. Regaining confidence requires putting a high priority on quality control and strict safety regulations. The Nano might be more viable if it included equipment such as motorized steering as well as AC. Re-positioning and advertising are done well, emphasizing innovation, dependability and worth for money, which may alter attitudes. Understanding changing demands can be made possible by proactively reaching potential customers via extensive market analysis. It's critical to include environmentally friendly technology to meet the need for longevity. An investment in entertainment and connection technology would be attractive to youngsters. The usefulness of the Nano may be increased above private ownership by working with shared rides or leasing services. Providing many variations would appeal to various client categories. The Tata Nano may be able to successfully reenter the market through making these adjustments.

References

Books and Journals

• Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges from the implementation of a port energy management system: A SWOT/PESTLE analysis. Sustainability, 11(21), p.6046.
• Chundi, P. and Sandhya, V., 2022. Employee Mentoring With Reference to Tata Motors. International Research Journal of Innovations in Engineering and Technology, 6(3), p.132.
• Cui, Y., 2021. The role of emotional intelligence in workplace transparency and open communication. Aggression and Violent Behavior, p.101602.
• Demir, E. and Kocaoglu, B., 2019. Maturity assessment in the technology business within the Mckinsey's 7S framework. Research Journal of Business and Management, 6(3), pp.158-166.
• Franco, S., 2021. The influence of the external and internal environments of multinational enterprises on the sustainability commitment of their subsidiaries: A cluster analysis. Journal of Cleaner Production, 297, p.126654.
• Iddagoda, A., Hysa, E., Buli?ska-Stangrecka, H. and Manta, O., 2021. Green work-life balance and greenwashing the construct of work-life balance: Myth and reality. Energies, 14(15), p.4556.
• Ke?ek, D., Vukovi?, D. and Bali?, D., 2023. Implementation Of Organizational Changes According To The Mckinsey 7S Model. Journal of Pharmaceutical Negative Results, pp.524-529.
• Kho, A., Tan, J.D., Nugroho, M.P., Kornelius, S.M., Prayoga, S. and Adi, S., 2023. THE COMPETITIVE ADVANTAGE OF SIDO MUNCUL: USING PESTLE, PORTER'S FIVE FORCES, AND SWOT MATRIX ANALYSIS. Milestone: Journal of Strategic Management, 3(1), pp.41-50.
• Kwon, M., Cho, Y.J. and Song, H.J., 2021. How do managerial, task, and individual factors inflruence flexible work arrangement participation and abandonment?. Asia Pacific Journal of Human Resources, 59(4), pp.645-668.
• López-Cabarcos, M.Á., Vázquez-Rodríguez, P. and QuinoA-Pineiro, L.M., 2022. An approach to employees' job performance through work environmental variables and leadership behaviours. Journal of Business Research, 140, pp.361-369.
• Lorinkova, N.M. and Bartol, K.M., 2021. Shared leadership development and team performance: A new look at the dynamics of shared leadership. Personnel Psychology, 74(1), pp.77-107.
• Mansaray, H.E., 2019. The role of leadership style in organisational change management: a literature review. Journal of Human Resource Management, 7(1), pp.18-31.
• Sushil and Garg, S., 2019. Internationalization of Tata Motors: strategic analysis using flowing stream strategy process. International Journal of Global Business and Competitiveness, 14(1), pp.54-70.
• Torelli, R., Balluchi, F. and Lazzini, A., 2020. Greenwashing and environmental communication: Effects on stakeholders' perceptions. Business strategy and the Environment, 29(2), pp.407-421.

Online

• McKinsey 7S Model. 2023. [Online]. Available through: < https://corporatefinanceinstitute.com/resources/management/mckinsey-7s-model/>
• PESTLE ANALYSIS. 2023. [Online]. Available through: <https://pestleanalysis.com/pest-analysis/>
• SWOT analysis of TESCO. 2023. [Online]. Available through: <https://bstrategyhub.com/tesco-swot-analysis-2019swot-analysis-of-tesco/>