Financial Performance Of Retail Business Assignment Sample

introduction Of Financial Performance Of Retail Business

Description of a research project

A wide array of research has identified the fact that Organisation and performance are highly influenced by the presence of Change management strategies. The practice of Change management tends to create a significant contribution to the overall organisation competencies which can further boost the overall innovative Ness of the respective business organisation. in the modern era of rapid technological innovation and frequent changes in the taste and preferences of consumers, following a stagnant tradition and organisational strategy cannot be effective in terms of bringing about the required success within the respective business firm. As stated by Freeman et al. (2021), because of the existing intensive market competition, the shorter life cycle of products and services, the volatility of products and fluctuating market environment, most business organisations have been constantly searching for using new sources of competitive advantage. in this regard, one of the most important and effective sources of gaining competitive advantage in the modern days is to come up with high-quality practices of Change management for the overall financial performance of the company. keeping the importance of effective change Management practice, The present research proposal will focus on investigating the financial performance of one of the famous retail business companies in the UK named Tesco through the application of statistics Change management strategies.

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Change management can be described as a particular process of continually renewing organisational structure, and organisational direction along with organisational capabilities for serving the ever-changing requirements of both extra and internal customers and the business environment.

Research rationale

The main issue of the present research is that in most cases it has been observed that the entire process of Change management is associated with several challenges. Lack of executive support, as well as lack of active sponsorship, can be considered two of the most crucial challenges faced by most business organisations when considering the Change management approach. in the modern environment of highly competitive retail industries, the leadership and management authority of Tesco has also been going through several challenges, especially after the sudden outbreak of the Coronavirus pandemic And the emerging war between Ukraine and Russia. As commented by Harrison et al. (2019), the leadership and management authority of this company has realised that a lack of effective communication can lead to misalignment which is extremely harmful to the overall organisational performance. Simultaneously the rapid business expansion strategy adopted by this company has resulted in several types of organisational complexity not only within the internal business environment but also in the external environment as well. As a result, the overall decision-making process has become extremely slow as well as inefficient. There are also different issues related to employee engagement and employee morale which have been impacting the capability of the company to deliver high-quality customer services.

These have become an issue now because Currently most of the business organisations including Tesco have been going through several changes within their organisational environment for which the issues have become even more severe. Simultaneously this has again been affecting the business operation of this company now because the company has already been going through several types of accounting scandals, which would affect employee retention rate and several others.

Keeping all of these issues in mind the present study will shed light on evaluating the way Change management practice can affect the financial performance of a business organisation, by specifically considering the case study of Tesco.

Research aim

This research proposal aims to investigate the impact of change management strategies on the organisational performance of Tesco.

Research objectives

1- To examine the relationship between organisational performance and change management strategies.

2- To evaluate the financial performance of retail organisations through change management strategies

3-To analyse measures to improve retail financial performance in Tesco.

Research questions

The core research questions will be as follows:

• What is the existing relationship between Change management Strategies and the financial performance of a business organisation?
• How can financial performance be evaluated through Change management practices?
• What are the challenges faced by the leading authority of Tesco while considering the Change management practices?
• What recommendations can be provided to Tesco for further improvement of the financial performance through Change management strategies?

Reviewing literature sources

Introduction

In this particular section, the perspectives and views of several research scholars regarding the effectiveness of Change management practices on the financial performance of organisations have been discussed in detail. This particular section has also covered specific areas such as theories and models of Change management, the concept of change Management and Organisational performance. After critically reviewing the perspectives of different research scholars in this regard, a significance has also been identified at the end of the analysis.

Theoretical perspective

Stakeholder theory

The stakeholder theory was developed by Freeman in the year 1994 and the theory has mainly focused on the group of stakeholders who play an extremely crucial role in terms of managing the overall business organisation as well as business ethics. stakeholder theory has argued that the most important stakeholders associated with a particular business organisation are employees, suppliers, customers, government bodies, political, and financial investors, community members, trade associations and the treat unions. in the context of this week in terms of leading towards a successful practice of Change management. the stakeholders who are directly associated with the business organisation must be recruited as advocates while conducting the change management practice.

Dynamic capability can be defined as the capability of the company to integrate, establish and reconfigure the external and internal competencies for addressing rapidly changing business environments. Jiang et al. (2019) had argued that dynamic capabilities mainly focus on the way business organisations can change their important resources eventually over time. The theory of dynamic capability is mainly based on the notion that the business environment is always characterised by hyper-competition and in a highly competitive business environment, if the firms want to gain a sustainable competitive advantage, then they will have to try to continuous rearrangement of the internal resources as well as capabilities which are known as the dynamic capabilities. Adapting dynamic capability is extremely important to get a custom with the changing business environment for which the application of this theory Is extremely relevant in the context of this particular research.

Theory of Lewin's change management

Lewin's Change management model is known as one of the famous models of managing organizational changes. the entire model comprises three different stages such as unfreeze, change and refreeze. According to the basic phenomena of this particular theory, retraining forces can influence the behaviour of the individuals which can ultimately decide the actual fate of change. driving forces can inspire and steer the employees towards the new state. Whenever a business organisation is going through some changes within its organisational workplace environment, the application of this particular theory becomes extremely relevant and effective.

Importance of change management

In the modern age of a highly competitive business environment, standing still is not an option to maintain a noticeable position in the dynamic business environment. As a result Change management is extremely important for every business organisation. Without this, there is a high chance of complete business failure in the market. Change can be broadly categorised into two types such as proactive change and reactive change. reactive change can be categorised as the change which has been implemented In response to some kind of external event or a serious internal managerial and operation and problem situation. On the other hand, as stated by Cameron and Green (2019), proactive change can be described as a particular change which occurs when the business organisation is not at all experiencing any kind of serious problem but the managers anticipate the need of bringing about some change to put the business in a much better position in the market. By considering the driving force of organisational changes it can be stated that there are several factors which can induce a business organisation to adopt a completely new system or completely new structure of conducting business. For example, if the leadership and management authority of the respective business organisation think that the overall organisation performance is not up to the mark and some modifications are needed to be brought about then they can change the research and development investment, organisation and structure and several other factors. both the external as well as internal business environments significantly inspired the way business organisations operate. organisation and culture and politics also have a strong influence on understanding whether any kind of organisational change is necessary or not.

According to Xie et al. (2019), change management can be of different types depending on their characteristics such as top-down change and bottom-up change. In the case of top-down change, the top level of the business organisation starts the initiative of change and then gradually it tends to spread down to the lower level. This particular type of change can be extremely effective in terms of ensuring that all employees are on board with the changes and that every individual understands the new direction of the respective business organisation. On the other hand, this has to be remembered in this connection that his particular category of Change management can lead to resistance from the employees who have been feeling that they have no input in the process of decision-making. Now by considering bottom-up Change management, it can be noticed that in this case, the bottom level of a business organisation starts to propose the upcoming changes. more specifically speaking in this case the entire process of Change management becomes more participative and this can often lead to a much better quality of employee engagement along with improving the overall organisation performance. however, this has to be noted in this contract that the use of Change management is dependent on the specific situation in this context.

Impact of Change Management on organisational performances

There is a strong impact of Change management strategies on determining the success or failure of organisational performance. The main motive for bringing about organisation Change management is creating a prosperous working environment through some strategic changes along with applying these changes through the people belonging to the management and leadership authority. As stated by Zada et al. (2021), Change management always helps a business organisation in terms of ensuring that the changes are always made in some coordinated way. This may help in terms of improving the communication between the employees and the leadership authority to lead to a better process of decision-making. One of the crucial impacts of Change management is that it always helps in terms of ensuring that changes are always made in a controlled and safe way Which can father play an important role in terms of improving the overall decision-making process of a particular business organisation.

In many instances, it has been noticed that organisational change may have a strong significant impact on the psychological state of employees Which indicates the fact that there is a strong relationship between Change management Strategies and the performance of employees. According to Xie et al. (2019), in case the leadership and management authority of a particular business organisation becomes successful in terms of applying appropriate strategies of Change management then the entire process of Change management can appear to be a strong catalyst in terms of increasing the motivation of employees along with increasing employee engagement.

This has to be noted in this connection that there is a strong correlation between employee performance and the overall financial performance of every business organisation. healthy workless environment can also improve the job satisfaction level of the employees which in turn can improve the overall performance level of the employees. As a result, the productivity and the quality of the work will also be improved eventually. As commented by Gartenberg et al. (2019), organisational change may also enhance collaboration and teamwork. Whenever business organisations are undergoing some kind of change, the employees should work together to adopt a new system and process. These need communication and collaboration which may further lead to stronger relationships along with a more cohesive team. This has to be noted in this connection that bringing about changes in the organisational leadership style can be considered another effective way of improving the financial performance of that company. As commented by Awaysheh et al. (2020), different kinds of leadership styles can affect the employee's performance towards their task accomplishment differently and the deer ship style adopted by the company is strongly correlated with the overall job performance as well as the financial performance of the company. For example, in the modern workplace environment, transformational leadership has appeared to be the most appropriate and suitable category of leadership style whenever the business has been going through some Change management process.

In the modern era of rapid technological innovation, most business organisations have been investing huge money in research and development to come up with the latest technology innovations with the objective of attracting more customers towards their company. Whenever a company has been planning to bring about some technology changes within their organisational workplace, they require a huge amount of financial support to conduct a high-quality training and development program. significant improvement in productivity and business growth can be achieved when the company will be capable of using new technology

Challenges of applying change management practices

The entire process of Change management can be considered an extremely difficult and complicated process because the outcome of the overall process is unknown. Most of the employees may be afraid of getting accustomed to the new change within the organisation's workplace because of the fear of the unknown, lack of appropriate information and they also have the fear of losing their jobs as well. As stated by Cho et al. (2019), communication breakdown can be considered as another associated with the Change management process. This has to be remembered in this connection that communication is always considered one of the most essential during the entire process of Change management because only an appropriate communication channel can lead to resolving all kinds of understanding, conflict, mistrust and rumours. Getting custom to the new normal may be an acquired time-consuming process which can reduce the overall productivity of the employees throughout the entire phase of transition. As commented by Cho et al. (2019), in some of the cases of Change management it has also been noticed that the employees can lack the skills required to adapt to the new changes which can again lead to a low level of employee performance along with job dissatisfaction.

Summary

After reviewing the overall literature, this can be summarised that there is a strong correlation between Change management Strategies and the financial performance of the company. in Case the leadership and management authority of a particular business organisation can successfully implement the strategies of Change management within the organisational workplace then it will have a positive financial outcome otherwise not.

Research methodology

Research structure

After setting the research aim and objectives, the importance of conducting this particular research will be taken into consideration. The rationale behind conducting this particular research will also be taken into consideration afterwards. then the researcher will conduct a critical literature review in which the research outcome of several Scholars will be compared. theories and models related to change management and their practical implications in the modern workplace environment will be considered (Pandey and Pandey, 2021).

Identification and justification of research methodology

Intending to understand the actual impact of Change management strategies on the financial performance of Tesco, the present research will be based on a positivism research philosophy. application of this particular category of research philosophy will help the researcher in terms of establishing a strong relationship between the two variables of Change management Strategies and financial performance. simultaneously in this context application of the deductive research approach will be taken into consideration along with exploratory Research Design. The research will be based on a mixed research method.

Data collection method

Since the research will be based on a Mixed research methodology, the researcher will collect both primary as well as secondary data to reach the research aim and objectives. more specifically speaking the data collection method will be a combination of secondary qualitative data and primary qualitative data. While collecting the primary quality data, a significant interview will be conducted with Three different managers of Tesco who have been presently associated with the company and have been working in this company for more than 5 years. On the other hand, the secondary qualitative data will be collected from reliable secondary sources using the search engine such as Google scholar, ProQuest and a few others. The company-related information will be collected from the official website of Tesco. other statistical information required to complete this research will be collected from government authorised websites.

Data analysis method

After collecting the primary data and the secondary data, a systematic thematic analysis will be conducted to analyse the collected bunch of data. While applying this particular tool of data analysis, five different common things will be conducted and each of the same will be strongly correlated with the research aim, objectives as well as the research questions. throughout the completion of the entire Data Protection Act 2018 will be strictly followed. the privacy and security of the collected secondary and primary data will be maintained. there will also ensure that the collected data will never be used in any kind of an ethical manner.

References

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• Cameron, E. and Green, M., 2019.Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
• Cho, S.J., Chung, C.Y. and Young, J., 2019. Study on the Relationship between CSR and Financial Performance.Sustainability,11(2), p.343.
• Freeman, R.E., Dmytriyev, S.D. and Phillips, R.A., 2021. Stakeholder theory and the resource-based view of the firm.Journal of Management,47(7), pp.1757-1770.
• Gartenberg, C., Prat, A. and Serafeim, G., 2019. Corporate purpose and financial performance.Organization Science,30(1), pp.1-18.
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• Jiang, Y., Ritchie, B.W. and Verreynne, M.L., 2019. Building tourism organizational resilience to crises and disasters: A dynamic capabilities view.International Journal of Tourism Research,21(6), pp.882-900.
• Pandey, P. and Pandey, M.M., 2021.Research methodology tools and techniques. Bridge Center.
• Statista 2023.Market share of grocery stores in Great Britain from January 2017 to April 2023.Available at<https://www.statista.com/statistics/280208/grocery-market-share-in-the-united-kingdom-uk/>[Accessed on 22.5.2023]
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• Zada, M., Yukun, C. and Zada, S., 2021. Effect of financial management practices on the development of small-to-medium size forest enterprises: Insight from Pakistan.GeoJournal,86, pp.1073-1088.