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INTRODUCTION TO DEVELOPING ORGANIZATIONAL VISION

Vision is an ambitious explanation of what an organization wants to achieve in the near future. It acts as guide in order to choose the future course of action for the organization. Strategic directions are regarded as the course of action that helps the organization in achieving its goals as well as objectives (Brown, 2013). Developing organizational vision and strategic directions are considered very advantageous for the organization such as Tesco.

Tesco is British multinational grocery store whose headquarter is situated in London (Hitt, Ireland and Hoskisson, 2010). It is the third largest retailer in the world in terms of market share and second in terms of profitability. It majorly deals in the furniture, grocery, food and clothing etc. (Anbalagan and Arulappan, 2009). The market share of Tesco is around 30%. The present report will focus on the developing vision for the Tesco along with the how it can be communicated it to its potential stakeholders. The implementation of vision as well as strategic direction will be discussed in the research statement (Criswell and Catwright, 2010).

TASK1

Group of persons who has certain interest in the functioning of organization is known as its stakeholders (Kantabutra, 2010). Some of the important stakeholders of Tesco include its customers, suppliers, shareholders, government agencies, financers etc. (Martins and Terblanche, 2003). They play the important and diverse roles in relation to the vision of the organization; of which some are enumerated below:

Customers: They are considered as the most valuable asset of the organization as all the products of Tesco are designed in keeping the taste and preference of customers in mind (He, 2012). A consumer wants the best quality of product in minimum possible value along with satisfying after customer care service. Tesco delivers all such facilities to its consumer so as to build a trustworthy customer base in order to achieve its vision in agreed point in time (Kohtamäki, Kraus and Mäkelä, 2012).

Government agencies: Government plays an active role in the activities of Tesco due to its operational excellence and commercial strategies. The various policies and procedures help Tesco in determining and framing of its vision as well as strategic direction (Warren, Howat and Hume, 2011).

Employees: They are the major workforce who invests their time and efforts to make the organization successful. The major expectation of employees from Tesco is job security, respect, adequate compensation etc. Tesco tries to fulfil all the requirements of its employees so as to provide strategic direction (Smith, 2011).

Investors: These are the persons who grant their money in the organization so as to get better return on their speculation as a cause of revenue. They play very significant role in creating the vision and providing strategic direction to the organization like Tesco (Rowley, 2003).

Several factors are there that can create the everlasting impact on the vision and the strategic direction of Tesco (Criswell and Catwright, 2010). Some of the factors include political, economic, legal, environmental and technological which are mentioned as:

Political factors: include tax policy, labour law, government supports that deals with the public. It lays a great impact on the vision of Tesco as they provide direct and indirect support from the government at the time of financial crisis in terms of lending of loans and grants to Tesco which has been observed during the course of action of recession (Randall, 2005).

Social factors: cover the aspects of change in lifestyle pattern, attitude, style, taste and preference of the consumers etc. (Hitt, Ireland and Hoskisson, 2010). They play major role in planning the vision and providing direction to Tesco. With the help of this factor, organization will be able to produce goods and services to meet taste and preferences of residents of UK as a result to which they have attained high profitability ratio (Adair, 2010).

Technological factors: technology plays an important role in order to deliver good amount of profits to Tesco. It has been found that the profit of the organization has increased by 21% due to investment made in technology which laid a great impact on the vision of Tesco. It has been seen that with the help of new and improvised technology retail giant has delivered best quality goods and services to its clientele (Kohtamäki, Kraus and Mäkel&aum