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Introduction - Managing Business Strategy
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Strategy is defined as the direction for achieving business goals. It assists manager in identifying the scope of operation. Strategic planning is defined as a procedure of managing the business resources in order to achieve desired outcome (Scholes, 2015). These plans are formulated by manager in an enterprise by considering the several factors such as need of the situation , organisational strength and weaknesses, demands of customers , problems in business etc. It is required by management team in an organisation to conduct the internal as well as external analysis . As this activity will help manager in development of appropriate business strategy. Business plan or Strategies are formed with the purpose to direct company towards achievement of success and fostering growth (Johnson, 2016).
The complete project is based on the case of Tesco company which is operating in retail industry. Purpose of the assignment is to develop the understanding about the responsible retailer .assignment has focus on identifying the competitive strategy used by an enterprise in order to gain competitive advantage in the market. It will also have emphasizes on identifying the need of monitoring as well as evaluation of strategic plan (Armstrong and et.al. 2015).
1. Understanding the term 'responsible retailer' and its relation with Tesco's 'The essential' and Tesco's CSR activities and Three big ambitions' as competitive advantage for Tesco.
The 'Responsible Retailers' are the business organisations or the traders that have the major responsibility to carry out the various business operations with ethics and effective principles and policies that will help in the better management of the various operations in the market. It helps to meet the operational requirements of the company that helps in the better handling of the different operations in the company. Besides this, it will help in the better management of the corporate social responsibilities or CSR of the company (Olson And et.al., 2018). The collaboration with 'The Essentials'. This will help the firm to take into consideration the better management of the different business activities that will support in the better growth and development of the company. The effective handling of the different business operations will lead the Tesco to adopt and utilize the various business operations that helps in the effective management of the different business solutions in the company. As a responsible retailer, Tesco will look after effective handling of the various operations that will lead to the better management of the different operations of the company, that will support in better productivity and profitability. Besides this, it generates better business opportunities for the company to meet and fulfil the needs and demands of the customers (Sia, Soh and Weill, 2016).
Other than this, it helps in the effective handling of the various business operations and meeting the needs and demands of the stakeholders, customers and employees of the company. The effective following of the various corporate functions and effectively satisfying the needs and demands of the clients will help in the better handling of the various operations in the market. The vision of Tesco to be present all over the world, as a business firm with lots of growth opportunities and being modern and implementing the innovative ideas to improve their efficiency as the better firm that helps in the better management of the various operations. This will help, in the rise of the profitability and profitability of the company and meeting the operational requirements of the Tesco plc. This will help in the effective management of the various objectives and goals of the company will lead to the adoption of the different sort of innovative and significant operations and business measures that will help in the better growth of the CSR and customer satisfaction level of the employee's towards the brand. The better management of the various business operations and the Three ambition approach helps the cited business firm to fulfil its duties as a business firm in an effective and significant way. This helps in the better adoption of the different innovative policies that will help in the significant and better growth of the different operations in the company (Cascio, 2018).
The effective Corporate Social Responsibilities policies that are been taken into deep consideration by the Tesco plc. That will help in the better improvement of the brand image of the company. The policy of 'Tesco in Society' is the initiative that is been taken into the effective consideration to perform the various operations related to the social jobs and the betterment of the people in the society. The business firm has developed various policy targets or the 'Three big ambitions' that helps in the better handling of the different operations in the company. These ambitions are as follows:
- To create millions of opportunities for young people around the world.
- To track down the health and through this tackle the rising obesity level in the various countries.
- To reduce the wastage of food effectively.
To manage it in an effective and significant way, it will help in the better management of the various operations that will help the firm to fulfil its CSR and handle it in the better way to maintain the productivity and profitability of the company. This will help the firm to handle the various operations in an effective and significant way. These ambitions will help in the better management of the different operations of the company. It will help in the improvement of the brand image of the company and develop the effective policies that will lead the company to fulfil these goals along with the CSR of the cited firm towards the society. It will also help in rise of the respect and the band loyalty of the customers in an effective and significant manner.
The effective market and business expansion will lead to the better management of the different operations in various countries. For example, the opening of a new retail outlet in the locality will create the job opportunities for the local people which will help in the rise of productivity and profitability in a better way or using the Tesco club card to provide the effective health services to the loyal and regular customers of the company (Leonidou and et.al., 2017). Similarly, Tesco Plc will utilise the edible resources available to produce various manufactured goods which will help the firm to reduce and sort of wastage of food product or item and utilize the available resources in an effective and significant manner. Such practice will not only improve the work efficiency of the company but also helps in the effective handling of the various operations that will help in the significant growth of the business organisation on the global level in a very significant and effective manner, by improving work efficiency of the company.
2. Identifying the competitive strategy adopted by Tesco company.
The Swot analysis is the tool that can be used by manager in business entity for recognising the strength and weakness of the company. As this will help manager in developing the appropriate plan or strategy in order to transform weakness into strength. It will also support management team in identifying the suitable ways to improve competencies and increasing competitiveness (Grünig and Kühn,2015)
Teco company is recognised as general merchandise retailer and British multinational grocer which is located in England. The organisation has got ranked as third largest global retailer in terms of profit and sales of firm. Company has ranked as the ninth largest international retailer in terms of revenue earned by an enterprise. Tesco company has able to achieve high market growth as well as market share due to the effective marketing strategy created by marketing manager.
The mission and vision of the company is to achieve success and become market leader. These are the important factors for which the strategic planning is done. As without the suitable mission or vision the company may not get appropriate direction and will not be able to survive in dynamic business environment. The manager in an enterprise has developed basically seven types of different strategies in order to assist firm in accomplishment of its vision as well as mission. Tesco vision is to become highly valuable organisation among the customers in the market. Objective of business entity is to gain customer loyalty and retain client for long term. Another purpose of business entity is to provide high return to its shareholders (Staake, Thiesse, and Fleisch,2012)
· Strength : Good brand image in the market.
· Popularity of the brand.
· Value provided by company to its client has enabled business entity to gain customer loyalty and develop strong relationship with them.
· Philosophy used by organisation such as Every Little Help has supported business entity in attracting new clients.
· High level of commitment has allowed firm to become most popular brand in the market.
· Commitment to follow the laws and regulations developed by government has enabled firm to gain an additional benefits and supported organisation in expansion of business.
· Reassessment and creation of clear business strategies has aided business entity in achieving business goals as well as objectives.
· Innovation skills and strategy has assisted Tesco in increasing the customer base, sales and profitability.
· Company has many retail outlet worldwide which has help organisation in delivering products as well as services to wide range of customers. It has also provided customer an ease to avail the goods or services offered by business entity.
· It offers wide variety as well as range of product to customers.
· The major strength of Tesco is that the strategy of Joint venture with global companies which has been beneficial for firm in order to capture market opportunities and in gaining competitive advantage.
· Highly skilled and Talented workforce has supported organisation a lot in expansion of business and in delivering good quality of products or services to clients.
· Innovative schemes planned or designed by manager has support business entity in increasing sales and profitability.
· The major weakness of the firm is that it has been greatly impacted by social and economic factors.
· Ineffective management
· Lack of experience in some markets.
· Inappropriate investment strategy.
· Business Operations in Tesco company is still done by using the out dated or traditional technology which has the negative effect on the quality of goods or services. Due to which the Business entity has to face the complain done by customers.
· Diverting cash from price reduction strategies has the adverse impact on the business performance.
· Opportunity: The Tesco organisation has an opportunity to open more outlet in international market.
· Organisation can recreate or make changes in investment strategy. As this will help business entity in gaining high return on investment and improving financial performance.
· Company can adopt new technology for production or operational activities. As this will help business entity in improving the quality of product or services.
· As the tesco has wide customer base, Cited business venture can enter into new market.
· The firm can develop its own website. As this will support organisation in interacting directly with customers and communicating business objectives (Leitner, Meissner and Martyna-David, 2015)
· Threat :
· Increase in competition.
· Changes in social , economical and other forces in business environment has great effect on Tesco business performance as well as operations.
· Decrease in price of goods or services has negative effect on the profit margin.
· Threat to brand image due to poor quality of products and services.
The marketing manager has planned to use business resources in order to achieve marketing goals and objectives. Business entity has adopted the investment strategy according to which firm has made huge investment in improving the shopping trip for its client. Tesco company has also adopted the low cost pricing strategy has supported business entity in attracting more numbers of customer and supported company in gaining win over competitors. It has also provided firm an opportunity to communicate directly with customer and identify their needs as well as demands. The another effective marketing strategy of forming joint venture with global companies dealing in same industry has allowed organisation to develop the understanding about the market, analyse the situation of market and develop plan accordingly. It has also support company in gaining competitive advantage in the market and also aided enterprise in reducing the negative effect of external factors on the profit and sale (Oyedijo, 2012)
3. Importance of monitoring and evaluation in strategic planning
Monitoring is defined as systematic as well as long term procedure which includes collection of information regarding the progress made by an implementation project or task. Monitoring as well as evaluation of strategy is important in order to develop base for evidence which can be used for ensuring that the strategy is effective and will support firm in achieving desired objectives. It also assists manager in ensuring that value is created in excess of its cost of implementing strategy. As the effective business strategy will help in gaining additional benefits and well as exploring and capturing several markets or business opportunities. Evaluation as well as the monitoring of strategy support manager in identifying the scope of improvement. It also helps manager in analysing the current position as well as performance on the company. Business goals and objectives when evaluating business strategies that have already been implemented. Activities and tasks are formed or planned to drive firm towards achievement of target. Monitoring as well as evaluation process provide management tan opportunity to establish milestones and assessing the progress toward strategic business goals and objectives. It also aids management in improving the strategic performance , identifying errors as well as planning the appropriate tactics to improve the same. It also supports manager in recognising the factors that have adverse effect or negative influence on strategic planning or implementation process. Continuous monitoring as well as evaluation assist business entity in ensuring effective outcome. It also supports manager in ensuring or confirming the effective as well as efficient utilisation of resources during the strategic planning process. This procedure also help management team or project leader in controlling the activities of employees engaged in planning (Ghezzi, 2013)Monitoring as well as evaluation process is important as it helps management team in determining the need of additional resources as well as cost that will be required to continue the procedure. It will aid business entity in eliminating barriers that can occur in continuing the strategic planning process. Continuous monitoring as well as evaluation helps management team in allocation of resources in effective as well as systematic manner. It also aids in preventing the wastage of resources and overlapping of activities. Continuous monitoring as well as evaluation support management team in identifying the need of reviewing as well, evaluating business objectives. It is also important as this procedure allow management team to recognise performance gap and fill the gap by adopting appropriate tactics.As thjis factor can have negative effect on the outcome. Monitoring effective options for customers and colleagues supports Tesco's commitment to helping employees and customers make healthy choices and lead healthier lives. It helps management team in ensuring that all the employees or workers engaged in the activity are performing their task according to set standards. Monitoring also allows workers to get appropriate guidance , direction and feedback or suggestion from their leader or manager which will further assist employee in improving their performance. It also enables workers to get the suitable tools and identify techniques for completing the task on time and in systematic manner. Monitoring and evaluation process has support manager in development of effective strategy which has further assisted firm in accomplishing its objectives. Key performance indicator is the tool that is used by management team in Tesco for measuring as well as evaluating the performance. This procedure will be essential in establishing appropriate target and enhancing customer services (Chen and Jermias, 2014)
4. Analysis of the Tesco's strategy fior a local supermarket and the implementation of the various social initiatives.
Tesco has effectively adopted the business plan of market penetration and business expansion, naming it as ' Building a better Tesco' Plan. This has helped the firm to improve its business operations in the local market of a country of its operations. The Tesco will deeply impact the local supermarket by either collaborating with them to sell their products and services or by acquiring them to use it as their outlet. These will help in the effective handling of the various operations in a better way to meet the needs and requirements of the local people. Other than this, it helps in the better management of the different operations that will lead to the effective handling of the different business operations in a better way (Akter and et.al., 2016).
The Company can take into the consideration the effective initiatives and measures that will help in the better management of the various business operations of the company. This will not only help in the better increase in the profitability and profitability of the company. Besides this, it also helps in the improving of the local business and market conditions and providing it with a global exposure. This will help in the raising of the market place standards in an effective and significant manner. Other than this, the better operational handling will lead to the rise in the brand loyalty and meeting the operations of the company in a better way. Other than this, it will help in meeting the needs and demands of the customers and fulfilling them to improve the operational efficiency of the company. The feedbacks and the reviews received from the users or the customers will help in the better handling of the different operations that will lead to the adoption of the various improvement and enhancing measures to increase the business and operational efficiency of the company. Other than this, Tesco plc will also effectively fulfil its CSR towards the global society that will lead to the effective management of the various operations, that will initiate the better fulfilment of the different business operations that will help in the better rise in the work efficiency and operational capacity of the firm (Apenko, 2017).
Various initiatives like supporting of the social causes, providing of the financial helps and creation of the better job opportunities for the local people or the residents will lead to the rise in the trust and loyalty level of the consumers and people towards the cited business firm and will help in the improvement of productivity and profitability in a better way. Besides this, it will help the company to get a competitive advantage over its competitors or rivals in the local market and meet them in a very effective way. Other than this, the better evaluation process to analyse the growth of the performance of the outlet as well as its employee's will help in the effective management of different business operations that will help in the effective handling of the adopting of various business operations for meeting the needs and demands of the customers in a better way. Besides this, it helps in the effective rise in the overall performance capacity of Tesco plc in local market. The effective rise in the productivity sand profitability will help in the better handling of the various business operations that will lead to the management of the various operations that will improve the brand image in the local market and increase the work efficiency of the people (Klettner, Clarke and Boersma, 2014.). The rise in the revenue that is been caused by the expansion of the business outside the Europe had lead to the effective rise in the adaptability of the Tesco plc to get better and innovative measures to increase the efficiency and achieve the customer satisfaction level in a better way.
Besides this, the increase in the number of outlets will improve the market presence of the company and will help it to gain large number of customers and stake holders. This will help the company to fulfil its CSR in an effective and significant manner and increase the work efficiency of the user in a better way. Apart from this, the CSR approach will develop a better brand image, improving a better perception of the Tesco plc in the minds of its consumers and users, attracting them towards the brand and increase the brand equity and value proposition of the company and its products or services. The high quality of products and goods offered by Tesco plc on the reasonable and cheap price to its customers will influence them to increase the brand loyalty and become the regular customer of the cited firm. Other than this it will help in the better management of the various operations that will improve or increase the operational capacity and quality of the business organisation. This will also improve the quality of services that is been provided to the customers., the high and better quality product or service will lead to the better revenue generation while, the poor quality of the goods will adversely impact the overall operations of the company, leading to lose of loyal customer and decrease in satisfaction level. Other than this, the effective management of the various internal and external operational glitches will help Tesco plc to identify the effective scope of the enhancements required and improve the quality of services in the market (Akter and et.al., 2016). Other than this, the better management of the different operations will also help in the increase in the revenue generation that will help in the rise of the different innovative measures to meet the needs and requirements of the customers as well as the stakeholders of the company in a better way to provide the customers with better and high quality products and services that will help in the rise of the various operations of the company and satisfaction level of the customers.
Thus, from the report it can be concluded that the effective business strategy will help in the better rise of the productivity and profitability of the cited firm. This assignment covers the purpose of the development of the understanding about the Tesco Plc as a responsible retailer. The report focused on identifying the various competitive strategy used by an enterprise in order to gain competitive advantage in the market. Effective SWOT analysis helped in the identification of the various strength and weaknesses to access there effective market opportunities and prevent any sort of market threat It will also have emphasizes on identifying the need of monitoring as well as evaluation of strategic plan to fulfil the CSR of company.
Books and Journal:
- Akter, S. and et.al., 2016. How to improve firm performance using big data analytics capability and business strategy alignment?. International Journal of Production Economics. 182. pp.113-131.
- Apenko, S., 2017. Human Resource Management of Innovative Projects in the Context of Business Strategy. STRATEGIC MANAGEMENT. 22(1). pp.3-6.
- Armstrong, G. and et.al. 2015. Marketing: an introduction. Pearson Education.
- Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
- Chen, Y. and Jermias, J., 2014. Business strategy, executive compensation and firm performance. Accounting & Finance. 54(1). pp.113-134.
- Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision. 51(7). pp.1326-1358.
- Grünig, R. and Kühn, R., 2015. Strategy Planning Process. In The Strategy Planning Process. Springer Berlin Heidelberg.
- Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
- Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics. 122(1). pp.145-165.
- Leitner, J., Meissner, H. and Martyna-David, E., 2015. The Debate About Political Risk: How Corruption, Favoritism and Institutional Ambiguity Shape Business Strategies in Ukraine. In EU Crisis and the Role of the Periphery. Springer International Publishing. pp. 3-19.
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- Oyedijo, A., 2012. Competitive strategy orientations of small and medium business owners and their performance impacts: The case of paint manufacturing SMEs in south-western Nigeria. Journal of Asian Business Strategy. 2(1). pp.1.
- Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
- Sia, S.K., Soh, C. and Weill, P., 2016. How DBS Bank Pursued a Digital Business Strategy. MIS Quarterly Executive. 15(2).
- Staake, T., Thiesse, F. and Fleisch, E., 2012. Business strategies in the counterfeit market. Journal of Business Research. 65(5). pp.658-665.