Strategic Management and SWOT Analysis of Tesco

Management 1 Strategic Management (Assessment 1) Management 2 Contents Introduction .................................................................................................................................................. 3 Concepts and models of organizational strategy ....................................................................................... 6 Importance of change management ........................................................................................................... 9 Conclusion .................................................................................................................................................. 11 References ................................................................................................................................................... 12 Management 3 Introduction This report is made in regards to understand the different aspects of strategic management in the selected organization. As the organization selected in this assessment is Tesco which is one of the largest retailer company in the United Kingdom. Strategic management is important in every business as it improves the overall success and growth of the company. The report will be discussed about the different concepts and models related to the organizational strategy as organizational strategies are too effective in managing the overall aspects of the company. As change management is also effective in the process of managing strategies so the change management aspects will be also described in this assessment. The importance of change management will be described in this report. As strategic management include several concepts like mission and purpose, description of strategic planning, the influence of stakeholders and culture, global strategy and proper evaluation of strategy in the related organization. Strategic management manages overall aspects of business differently and improves the overall process of business in arelated environment. This process maintains the proper strategic management in the business process as strategies are related to adifferent manner of process. Management 4 SWOT analysis of Tesco As identified Tesco Corporation is one of the largest retailer in United Kingdom, however it comes with various strengths, weaknesses that could be implied for upcoming opportunities and overcoming the threats. Strength of Tesco 10th rank as per the statistics of financial year 2018 According to the Revenue of the company, this is the 10th largest retailer while analysing financial year 2018. This acted as strength due to increase brand awareness, brand recognition across the globe. Innovation and adaptability Strength of the company is innovation for example coming up with advanced NoSQL architecture. Moreover the company is awarded with optimize delivery scheme efforts by company towards the response of COVID-19 shortages. The adaptability of the company that has overcome the pandemic restrictions, increasing delivery capacity has been resulted into profit of €551 million by the company (icaew, 2020). Weaknesses of Tesco Quality control Quality control measures are one of the weakness or drawback that has been identified for the company. This has been disturbing the customer satisfaction level as some complaints or identify for quality issues. Inventory management The study present at the company needs to improvise the inventory management approach. For example the company recently had to pay euro 175,000 in fine because of products being displayed of expiry date. Opportunities Artificial intelligence and machine learning Management 5 Increasing online presence lead to opportunity for the company to invest in IT consulting company for improvising productivity and operation Growth of online sale It is found appropriate to increase online sales by considering appropriate operational, marketing practices by the company. Threats Economic recession Economic recession after COVID-19 pandemic has been identified across the world which could act as amajor threat among purchasing power of individuals. Increasing competition Competition is been increasing from companies like ASDA, Walmart, Amazon specifically in period of COVID-19 pandemic. Therefore, it is identified that the company must adopt various change management practices to strategies for gaining competitive advantage in near future and acknowledges future opportunities for the same (personneltoday, 2020). Management 6 Concepts and models of organizational strategy Tesco implements strategic management in the overall organization to improve success and growth in the market. A company is one of the major retail supermarkets of the UK so itneeds to implement proper strategic planning to gain competitive advantages in the overall environment. The three main outlines used by Tesco includes cost leadership, differentiation and focus strategy. The famous strategy of Tesco is the club card strategy that helps the organization to retain the customers in an effective manner (Theriou, 2015). As per analysis, it has been analyzed that strategic management is an essential component of business and it entails several business goals and organizations vision and objectives based on strategic management. The retail industry focus on different organizational strategy for managing overall strategic management in overall business of Tesco or other retail market. As Walmart focus on buying online, pick-up in store strategy and invest in re-modeling of store. This process improves strategic management of retail industry and it also affect different aspects of Tesco. Tesco needs to adopt this model and concept of organizational strategy to get effective growth in business environment of retail market. The private equity firm need to use proper investment strategy in organization that is responsible for proper strategic management in organization. As Tesco also uses investment strategy to manage overall investment in business process. These strategies are adopted by Walmart to get effective growth in market. Strategic planning is an organization process to define its strategy and manage to allocate resources to maintain its strategy .The organization also uses some control mechanisms to implement the strategy differently. The strategic planning of Tesco is to improve four strategies of business that a strong UK core business, non-profit, international and retailing services in adifferent manner. The international strategy of Tesco improves by doing for customers and make the process easier for customers (So ?oducho-Pelc, 2015)., With the proper strategic planning, the business goes in the right direction and attain all the goals and objectives of the business. Tesco used its strategies for market development and to maintain strategic alliance in the overall business process. As Tesco organization deals in grocery products in the UK so it is important to use proper strategic planning in an organization. With the proper strategic planning, an organization achieve all its goals and objectives. Management 7 The several organizations use different strategy to get proper growth in market as most of the organizations uses “New Retail Strategy ’to expand the retail store in foreign markets. This process works to combine online and offline process by an omnichannel process. Tesco also need to adopt “New Retail strategy ”to get effective growth in market as this strategy make a proper strategic management in organization. The company get growth in foreign market after using the “New Retail Strategy ” as it is only used in retail organizations. The strategic management get improve by this process and create many opportunities in business organization. Tesco attains several benefits by using inline and offline process in aconcept of “New Retail strategy ” As this strategy is one of best concept used in proper strategic management. This strategy is mainly based on convergence of online and offline retail and manage overall operations of business in effective manner. Tesco also improve its ecosystem by using this concept of strategic management. Tesco provides best experience to consumers by using this particular strategy in business organization. The stakeholders and culture give adirect influence on the overall strategic planning of business as the involvement of stakeholders in the strategic planning of Tesco positively impact the business process. The stakeholders can easily build their ownership by engaging in the strategic planning of the business. The high involvement of stakeholders in strategic planning provides better result and outcomes and also make proper strategic planning in the business. As the key stakeholders have more interest in strategic planning and management of the organization (Alyoubi, 2015). As the stakeholders of Tesco involves in strategic management to improve the process and growth of business in the international market. As the company works in aglobal market so it is important to manage strategies as per the global market. There is the different process by which stakeholders engage in the development of strategic management in Tesco. Some of the main processes are communication, actively involvement and proper analysis of strategic plan in the organization. Culture also affects strategic planning as there is arelationship between culture and the strategy of business (Kaleta and Witek-Crabb, 2015). As per analysis, it has been analyzed that strategy sets the direction and culture works to accomplish all the goals related to organizational shared values and beliefs related to the strategies. The strategic management of Tesco also includes proper management of international strategies. As the current environment of business is competitive and the competitive companies required to Management 8 venture into international markets to get more profits in the market. As international strategies work to manage the global market of Tesco as these reduce the risks that occurred in strategic management at the international level. For the organization, selecting the correct international strategy is not easier. Organizations need to analyse proper strategies for the proper management of business so that business achieves success in the global market (Frynas and Mellahi, 2015). There are different theories involved in international strategic management and itis related to the specific target market of Tesco. The various organizations use various international strategies for different foreign markets. The monopolistic advantage is one of the effective theory used for capital investments and international trade in the overall management of business (Tang and Hsu, 2015). Internationalism becomes easier by adopting a monopolistic theory of strategic management. Strategic management also needs proper evaluation of strategies so that organization attains proper growth in a business environment. The strategic evaluation included the proper management of strategies involved in the organization or not. As the strategies are effective in the market of Tesco, then itprovides several benefits in the overall market of Tesco (Jenkins and Williamson, 2015). With the proper evaluation of strategies, the organization able to attain all the objectives and taking proper action at the proper time. The strategic evaluation is also effective in measuring organizational performance as it improves different aspects of the business. Tesco achieves all its objectives by properly using strategic evaluation. Management 9 Importance of change management Change management is one of the important processes of business used to define methods and manners in which acompany implements several changes in the overall organization. Change management is acollective approach used to prepare, support and provide help to individuals and make several changes in an organization in an effective manner. The internal and external processes are used for a better environment of business organization and it includes various stages and also analyse different changes that occurred in the resulting process of business (Evans and Mason, 2018). The main purpose of change management is to control all the stages of the lifecycle that enable several beneficial changes in the overall organization. It has been analyzed that every company wants acompetitive edge to create strategic changes in the business process. The thought process works to maintain the overall challenge that occurred in the organization. Tesco is frequently changing its structure to bring several innovative strategies to manage the dynamic process of the organization. Several changes occurred in the change management process of Tesco. The change management process includes several steps that work to manage overall changes in the organization. The one major step used in the change management process is to prepare the organization for change as preparation of organization is important for proper change in the organization. The second step is to craft avision and plan for change relating to the business organization (Hayes, 2018). The third step is to implement the changes that occurred in the organization. The different changes can embed within culture and practices. The review progress and analyze results related to the change management process. It is important to clearly define the change and align it to business goals and determine the impacts of change management in adifferent process. This process includes managing business goals. It determines impacts and affects the change for different process of change in managing the overall process for better management. Effective training is also used for change management and it implements support structure in proper management of Tesco. This process implements the structure and measures the change process in an effective manner. Management of change is asystematic approach to dealing with organizational change (Vlados, et al., 2018). The goal of this approach is to safeguard workers from potential harm as per the crucial period of transition. The different elements of change management include a smooth approval process, governance tools, process automation, data access and CAB functionality. Management 10 The external factors affecting the change management process at Tesco and cover advantages for different manner and it also affect employee involvement in the overall process. Tesco change management affects the overall objectives of the company. Tesco faces several barriers including the change management process. This change management analysis of the overall process change process at the Tesco organization. There are several change management processes included in the overall aspects of the organization. Lewin ’schange management model is one of the best processes for change management and itis applied in Tesco. Several steps are included in the change management process which are: Unfreeze- At this phase organization need to detect the problem within the management process. As the problem is detected manager needs to communicate and attain the information to bring change in the overall organization (Carpenter and Agrawal, 2018). This process analyses the problem of change management. Transition- Managers of the organization take proper actions to implement several changes in the organization as per the diagnosis of the problem. It assesses several risks related to the change implementation in an organization and accordingly it makes several plans and policies. As the transition is one major process of change management (Kennett-Hensel and Payne, 2018). Refreeze- Managers take follow up action to analyse the effectiveness of the change plan implemented in the organization. The several consequences are learned to establish the proper change in the business organization. This is one effective process included in this change management model (Pugh, 2018). Management 11 Conclusion From the above discussion, several aspects of strategic management have been analyzed properly. Strategic planning is an organization process to define its strategy and manage to allocate resources to maintain its strategy. The organization also uses some control mechanisms to implement the strategy differently. The strategic planning of Tesco is to improve four strategies of business that astrong UK core business, non-profit, international and retailing services in a different manner. Culture also affects strategic planning as there is arelationship between culture and the strategy of the business. As per analysis, it has been analyzed that strategy sets the direction and culture works to accomplish all the goals related to organizational shared values and beliefs related to the strategies. This process implements the structure and measures the change process in an effective manner. Management of change is asystematic approach to dealing with organizational change. The goal of this approach is to safeguard workers from potential harm as per the crucial period of transition. Change management is a collective approach used to prepare, support and provide help to individuals and make several changes in an organization in an effective manner. The internal and external processes are used for abetter environment of business organization and it includes various stages. Management 12 References Alyoubi, B.A., 2015. Decision support system and knowledge-based strategic management. Procedia Computer Science ,65 ,pp.278-284. Carpenter, D.A. and Agrawal, V.K., 2018. 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