15 Pages
3626 Words
Assessment 1
Brief Overview of the Tesco Company
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Tesco is a global marketer of supermarkets and other goods with headquarters in the UK. Tesco runs a wide range of physical businesses, such as grocers, supercentres, corner shops, and e-commerce food delivery solutions. Tesco is renowned for its cutting-edge business tactics, including the Clubcard loyalty programme that awards clients with credits for their transactions which may be exchanged for rebates or other benefits. To enhance the buyer engagement and thrive in the quickly changing retail sector, the business has additionally made considerable advances in computing and e-commerce. Tesco also maintain sustainable business by looking after the waste reduction from plastic so as to keep the environment clean (Plc,GlobalData , 2023).
The company’s current strategic statements
| Mission |
Company values |
Company Objectives |
| The company's short-term goals are to "service customers a bit better every day" according to Tesco. This declaration demonstrates the firm's dedication to giving clients outstanding client service and enhancing their buying experience. |
The values of the Tesco mainly focus dishing up their clients, society as well as world in a more superior way while showing their accountabilities. |
To turn into a satisfying work environment by allowing their staff the opportunity to act naturally, effectively uplifting their solidarity and prosperity and backing their work/life harmony needs (Palmer, 2005) |
An environmental analysis of the current position of the company
The PESTLE analysis of Tesco regarding the plastic use are described in detail below:
| Political |
Economic |
Social |
Technological |
Environmental |
Legal |
| Federal rules are becoming more and more concerned with minimising plastic pollution and fostering sustainable behaviours. Certain rules, such as the UK Plastic Packaging Tax, must be followed by Tesco. |
The price of plastic wrapping and the expense of adhering to laws governing the usage of plastic can have an impact on Tesco's financial results. |
There is strong push on Tesco to lessen its plastic consumption as customers become more conscious of the harm that plastic has on the environment. |
Tesco may be able to cut back on its use of plastic owing to technology advancements like more effective package designs, recyclable materials, and better trash and recycling processes. |
Tesco's plastic usage and waste polices have the potential to significantly affect the environment which is a serious ecological disaster. |
Tesco must make sure that its waste disposal and plastics usage policies comply with the company's environmental standards and the demands of its partners (Hashim, 2021). |
| Tesco must adhere to a number of rules in several countries. |
Also, there is a rising consumer desire for environmentally friendly and sustainable goods, which can cause Tesco to adjust its product lineup and marketing tactics. |
In response, Tesco launched its "4Rs" strategy—remove, reduce, reuse, and recycle—to cut down on plastic trash throughout every one of its activities. |
Using latest technology Tesco is introducing recyclable disinfectant stations and testing biodegradable bin liners. |
The SWOT analysis of Tesco considering the plastic issue are described in detail below:
| STRENGTHS |
WEAKNESSES |
| 1.The "4Rs" policy, which strives to eliminate, reduce, reuse, and recycle plastic throughout its activities, was implemented by Tesco 2. In order to limit its usage of plastic, the corporation has established lofty objectives such as eliminating 1 billion plastic parts from its own-brand items by the year 2023 |
1. Tesco currently uses a lot of plastic containers for a number of its items, therefore altering its distribution network and packing procedures may be necessary in order to reduce its usage of plastic. 2. In an aggressive retail market, the company's attempts to limit plastic use may result in greater expenses and lower profit margins. |
| OPPORTUNITIES |
THREATS |
| 1. Consumer demand for efficient and environmentally and sustainable materials is rising, therefore Tesco's attempts to use less plastic may assist them stand out from rivals and win over customers who care about the environment. 2. Tesco might collaborate with vendors and other interested parties to create creative approaches to lowering plastic usage and waste. |
1. It's possible that other merchants and companies are also making an effort to limit their usage of plastic, which might increase the challenge for Tesco to differentiate out in the marketplace. 2. The business and economic success of Tesco may be significantly impacted by modifications to governmental rules concerning the usage of plastic (Hann, 2023). |
Findings of environmental analysis & suggestions of plastic reduction strategies
So, from the overall environmental analysis of the Tesco it can be said that reduction of plastic use has turned out to be one of the major aim of the Tesco in the current days. Considering the PESTLE and SWOT analysis it can be seen that the company is considering most of the factors to deal with the plastic reduction for example focussing on 4 R’s. Still there are some scopes for plastic reduction which can be done by using the below mentioned strategies.
- To limit the usage of single-use plastic, Tesco might provide renewable solutions for goods like cleaning supplies and toiletries.
- To lessen the need for single-use plastic bags and packaging, Tesco might encourage consumers to carry their own baskets and boxes for groceries and other items.
- Tesco might help projects and groups that encourage environmentalism and lessen plastic pollution, like coastal hygienic and recycle campaigns.
- Tesco may remind its customers about the value of decreasing plastic pollution and how they can contribute.
- Tesco might collaborate with its vendors to cut back on the usage of plastics in the manufacturing and packaging of goods (Palmer, 2005).
References
Hann, S., 2023. PACKAGING UNWRAPPED, s.l.: Tesco.
Hashim, M., 2021. Unlocking the Sustainable Production Indicators: A Novel TESCO based Fuzzy AHP Approach, s.l.: Cogent Business & Management.
Palmer, M. J., 2005. Retail Multinational Learning: A Case Study of Tesco. International Journal of Retail & Distribution Management, 33(1).
Plc,GlobalData , 2023. Tesco Plc: Overview. [Online]
Available at: https://www.globaldata.com/company-profile/tesco-plc/#:~:text=Tesco%20Plc%20(Tesco)%20is%20a,dotcom%20only%20and%20one%2Dstop.
[Accessed 26 February 2023].
Assessment 2
Plastic Reduction Strategy
Plastic Reduction Strategy
In assignment 1 based on the overall study some important strategies has been recommended to Tesco in order to deal with the plastic reduction strategy. In this segment of the study brief discussion will be carried out on to explain those strategies in amore better manner.
1st strategy: Providing renewable solution to its customers for goods like cleaning supplies and toiletries
There are various ways through which Tesco can use the above-mentioned strategy. For example, Clients can carry their unfilled holders to Tesco stores or have them topped off through a conveyance administration. In addition, Tesco can also search for items produced using sustainable materials like bamboo, corn-starch, or reused materials. These items are practical and can be reused or treated in the soil toward the finish of their life (Foteini, 2019).
2nd Strategy: Encourage consumers to carry their own baskets and boxes for groceries and other items
Consumers may lessen their dependency on solitary plastic containers and boxes, that could require centuries to degrade and add to environmental degradation, by using their own receptacles. Promoting more environmentally responsible behaviour and making people aware of sustainability issues can both be achieved by encouraging consumers to bring their own containers (Larsen, 2019).
3rd Strategy: Joining hands with ventures that work on to reduce plastic waste
By adopting this strategy Tesco will gain an additional competitive position through which they can mark their name in a stronger manner within UK. In addition to this, adopting this particular strategy will help them to gain more stakeholder and other parties too (Horvath, 2018).
4th Strategy: Educating the customers
Plastic waste management is a tough job and for big companies like Tesco it is very important to educate their clients regarding this. Tesco will get a very positive result if they focus on educating their clients regarding reduce of plastic. It will help the company to create a bond with the both existing clients and also with the new clients that will help in holding the customers for a longer period of time.
5th Strategy: Collaborating with the vendors
Tesco can fulfil its sustainability objectives, enhance its sustainability impact, and acquire an edge over its rivals by working with its suppliers to limit the use of plastic and also focus more on using recycle plastic. Additionally, it may enable the business to lower costs related to trash management and packaging while also fostering a more devoted consumer base.
Strategic Goals
In order to achieve the above-mentioned goals, it will be important for Tesco to adopt a SMART strategy so that they can identify the specific needs and when to achieve those goals. Below given are the SMART goals.
| Specific |
Measurable |
Achievable |
Relevant |
Time bound |
| Tesco focuses on to decrease the use of plastic |
Tesco wants to cut plastic wrapping by 50percent through the end of 2025 as opposed to the starting year of 2019. |
Tesco will collaborate with vendors to rethink packing to remove extra plastic and replace it with more environmentally friendly materials |
As part of Tesco's broader ethical behaviour and in light of consumer requests for more environmentally friendly products, decreasing plastic consumption is an important objective (Santos, 2019). |
End of 2025 is the goal date for reaching the 50% decrease. |
| Tesco wants to make more of its containers from of recyclable plastic |
Tesco wants to employ 30% recycled material in their plastic packaging through the end of 2025. |
To enhance the supply of recyclable plastic, Tesco will collaborate with suppliers to find recyclable materials and develop in recycling facilities. |
Tesco should pursue this objective since it promotes the circular economy and lessens the environmental impact of plastic packaging (Prata, 2019). |
The end of 2025 is the projected date for meeting the 30% recycled content objective. |
Ultimately, through continuous improvement, cutting expenses, enhancing reputation, and obtaining a market advantage, the strategic goal for Tesco's plastic reduction strategy may contribute to better performance of the organization.
Strategic Statements
It can be identified from assignment 1 that the mission, values and objectives of the company is mor else focusses towards giving a better life daily to their clients but by maintaining sustainability within its function. Now as the company is focussed towards opting for a Plastic Reduction Strategy the new strategy directly aligns with the company’s current strategic statements. From the above discussed points, it can be seen that the company is planning to reduce down their use of plastic usage by the end of 2025 and to increase the use of recycled plastic by 30% by the end of 2025. Thus, it can be seen that both these objectives have been set for looking for the betterment of the customers and also for the overall environment. Overall, it can be said that this might not affect the overall company tactics approach will add extra objectives to strengthen the both existing and current objectives (Noman, 2020).
Strategic Risks
Detailed about uncertainty
One vulnerability is the degree to which purchasers will request items with diminished or no plastic bundling. Although there is a developing pattern in the direction of manageability and eco-benevolence, it is dubious the amount of an effect this will have on shopper buying choices. One more vulnerability is the accessibility along with the expense of elective bundling materials.
Impacts of the risks
The first mentioned risk will have a direct impact over the buying decision of the Tesco’s customer as many of the customer might not be willing to use recycled bags as they are much expensive as compared to normal plastic bag.
Mitigation strategy
- In order to mitigate the first mentioned risk Tesco can ask their clients to bring their own bag so that they don’t have to purchase the recycled bag.
- Tesco should work with vendors to source manageable materials that are cost-effectual along with promptly accessible (Noman, 2020).
Organizational Resources and capabilities
VRIO examination is an essential device that evaluates the inner assets and capacities of an organization to decide their upper hand. Here is a VRIO investigation of Tesco's endeavours to decrease plastic use reduction strategies that has been discussed in the study:
| Value |
Rarity |
Imitability |
Organization |
| Tesco's endeavours to decrease plastic use enhance the organization by advancing a positive picture according to shoppers and partners. The decrease of plastic waste is a huge natural concern, and Tesco's obligation to lessen plastic use is probably going to engage shoppers who are progressively earth cognizant |
Tesco's obligation to diminish plastic use isn't really intriguing, as many organizations are putting forth comparable attempts to decrease their natural impression. Notwithstanding, Tesco's scale and reach as an enormous store chain offers them the chance to fundamentally affect the decrease of plastic use, putting forth their attempts generally one of a kind |
Tesco's drive to lessen plastic use can be imitated by different organizations in the retail area. Be that as it may, Tesco's scale and assets give them an upper hand in carrying out these drives for a huge scope |
Tesco has an efficient and productive construction setup to execute its drives to lessen plastic use. The organization has defined explicit objectives and focuses for decreasing plastic use and has put resources into innovative work to track down options in contrast to conventional plastic bundling (Chadwick, 2007). |
Ultimately, Tesco's initiatives to cut back on plastic consumption could give the corporation a competitive advantage with the goal of building a great reputation and luring in environmentally aware customers. Even though such projects might not be fully original, their size and finances provide them a benefit in terms of carrying them out on a big scale. Tesco's well-organized infrastructure and dedication to innovation and research also show their capacity to carry out these activities effectively.
Implementing the Strategy
A strategy outlining how well an institution would carry out and accomplish its targets and objectives is known as an implementation strategy. It entails determining the procedures, materials, and timetables required to carry out a plan successfully. Below mentioned is the detailed implementation strategy for Tesco which will be created using the strategies outlined for reducing plastic waste.
| Strategic Goals |
Action Steps |
Who’s Responsible |
Timeframe |
Resources |
Impact on Organization |
| Switch to eco-friendly packaging materials |
1. Find a new biodegradable materials supplier 2. Engage in innovative manufacturing technology and put it into use. 3. Instruction on equipment use for employees |
1. The team's suppliers and head of operations 2. Operations 3. Personnel & Operations |
1. 1 month 2. 1-3 months 3. 1 month |
1. Purchasing contacts 2. the production leader 3. Head of IT/Production Systems for Human Resources |
1. Reduced hazardous waste production 2. Meeting the government's and organization's environmental standard goals 3. The adjustment can be made quickly and affordably without disrupting regular operations. |
| Switch to carry own bag |
Asking clients to bring to bring their own bag |
The customer care team will be responsible |
1 month |
HR |
Reduction in the plastic usage and also in plastic waste |
| Doing campaign |
1. Need to join hands with other parties who work towards reducing plastic waste 2. Might take up projects that are focused on to clean the city and the coastal areas of UK. |
Marketing Team HR team |
1-3 month |
Contacts of external parties |
Can work for the betterment of the UK and will gain a competitive edge too. |
| Client education initiative |
1. Tesco may educate consumers about the value of minimizing waste material and offer advice on how they can help. 2. Like carrying their own reusable shopping bags, utilizing reusable water bottles, and staying away from single-use plastics. |
3. Corporate Responsibility department or the Sustainability department |
1-2 months |
1. Flyers, billboards, and pamphlets 2. Attractive displays with messages and details about decreasing plastic pollution in their stores. 3. Utilizing hashtag, celebrities, and social networking sites, information and advice on minimising plastic waste are shared. 4. Tesco's stores can host conferences and other events. |
1. Heightened client loyalty 2. A rise in sales 3. A good brand images 4. Adherence to regulations 5. Favorable effects on the environment |
So, based on the above given implementation strategy for Tesco it can be identified that the plan is mainly created keeping in mind environmental sustainability part and also educating the customers towards betterment of the society by reducing plastic usage.
Summary
From the overall research it can be concluded that creating a strategy and implementing the same strategy for the betterment of the company is not an easy task and needs rigorous initiatives to make it a success. It can be seen in this task that the strategies that has been created are mostly focussed towards handling the use of plastic and reducing it use where various tactics has been provided to deal with it. Tesco can decrease its use of plastic, increase its environmental sustainability, and foster a favourable reputation among customers and partners by putting these measures into practise. Also, from the given SMART goals it can be identified that the main aim of the Tesco by the End of 2025 to reach the 50% decrease of plastic use reduction. In addition to this, he end of 2025 is the projected date for meeting the 30% recycled content objective. To attain these goals an implementation strategy has also been provided. Overall, some of the basic recommendation which might be offered to Tesco for Plastic Reduction are listed in detail below:
- Tesco can keep coming up with creative wrapping ideas to use less plastic while maintaining the quality and safety of its products.
- Tesco can increase the amount of plastic wrapping that can be recycled by designing it to be more biodegradable, for as by utilising mono-materials instead of made by mixing packaging.
- Tesco can work with other companies in the sector, trade groups, as well as distributors to promote reform and expand plastic-use reduction strategies.
- Tesco may boost transparency by outlining its efforts in public reports, revealing how much plastic is used, and establishing mechanisms for stockholder comment.
So, overall, it can be concluded that Tesco should further reduce its use of plastic, advance sustainability methods, and solidify its position as a pioneer in social responsibility for business by implementing these suggestions.
References
Chadwick, F. E.-., 2007. E-strategy in the UK retail grocery sector: a resource-based analysis, s.l.: Emerald Group Publishing Limited.
Foteini, M., 2019. Renewable sources: Applications in personal care formulations. International Journal of Cosmetic Science, 41(6).
Horvath, B., 2018. Designing Business Solutions for Plastic Waste Management to Enhance Circular Transitions in Kenya, s.l.: Szent István University.
Larsen, N. M., 2019. What affects shopper’s choices of carrying devices in grocery retailing and what difference does it make? A literature review and conceptual model. International Review of Retail, Distribution and Consumer Research.
Noman, A. A., 2020. Strategic analysis of Tesco, s.l.: s.n.
Prata, J. C., 2019. Solutions and Integrated Strategies for the Control and Mitigation of Plastic and Microplastic Pollution. International Journal of Environmental Research and Public Health, 16(13).
Santos, T. R.-., 2019. Solutions and Integrated Strategies for the Control and Mitigation of Plastic and Microplastic Pollution. Int J Environ Res Public Health.
