Leadership and change management are the aspects which move hand to hand in order to attain the organizational role in an effective manner. There is a fast growth and advancement in the work environment as trends are changing at a frequent speed. There is huge competition which prevails in the market place in order to manage the change in an effective manner. The present report discusses about the different aspects that are used to implement strategy and direct individual or group of individuals in order to implement changes in an effective manner. In this report, Tesco has been chosen to implement new strategy for the purpose of growing online business and influencing employees towards the attainment of organizational goals. Proper structured approach is adopted to deal with change both from the perspective of an individual and the organization.
Tesco plc wants to expand its market share to increase its revenue and profitability. Tesco is the second largest retailer in the world as per the revenues and it has vision of capturing first position. Therefore, to increase its sales, it can adopt any one of the strategies such as market development, market penetration, product development and diversification. After feasibility study, company wants to adopt market development and market penetration strategy (Kaplinsky, 2004). So, it has decided to shut down some of its stores and to focus more on online retailing. In order to widen the market base and implement strategy, Tesco has proposed change management plan so that purpose of strategy implementation can be executed in an appropriate manner. Tesco requires effective manpower to execute plan effectively in order to implement the change and do proper management because it is very necessary to move this plan in the right direction (Kaplan, 2005). Manpower who are engaged in the implementation of strategy in order to expand the market share require effective skill and abilities as well as need to behave ethically with the other individuals who are connected with the company. In order to implement any strategy successfully, it is required that resources are effectively allocated and current market situation is monitored properly in order to implement the change. Thus, it is important that proper plan should be designed to implement change that is mandatory to close down the outlets and expand online business in order to increase the market base and serve products properly to the different customer groups.
Define the strategy being implemented
There are various strategies which are implemented to expand the business (Malmi and Brown, 2008). There are different methods through which Tesco can expand their offering criteria as per the convenience of customers. There are various aspects that will determine the effective implementation of the diversification and market penetration strategies to make easy offerings to the customers. In order to reduce the number of stores, major emphasis of Tesco is laid upon the online delivery of product and services which are offered by them in order to grow and expand business. This will be a helpful aspect for Tesco as it will be convenient for the customers to get products and services directly to their home. .
Tesco adopts market penetration and diversification strategy to reduce the number of stores and diversify products by adopting online delivery modes in order to increase the market share and expand the offering criteria (Lawler and Ford, 2007). Different benefits of online delivery over physical selling are discussed underneath-
- After setting up online store, Tesco can reach their potential customer easily. Their retail market will be expanded as customers can place order easily through online source.
- Tesco does not need to pay high amount of shop rents.. Therefore, they can save operational and set up costs and it will result in increasing its gross margin.
- Online store has ability to reach to the global audience which will increase their sales opportunities and will result in the expansion of business (Jogulu, 2010).
- Online stores are open for 24 hours a day and 7 days a week which help customers to place order as per their convenience.
- Products can be sold at lower prices due to non-involvement of intermediary.
- In online transactions, company can receive payment more quickly.
- Company can also improve their offerings by gathering data from customer's feedback and can review it in order to make further modification in the services that are rendered by them.
Define the type of change involved at high level
Change management strategy will incorporate both training and communication. Tesco is partially transforming its business from physical to online stores (Mccooey, 2009). Therefore, it has to make some changes in the structure of top level management also. Company has to appoint IT expert in the top management who will form a IT committee, which will be responsible for developing E-commerce shopping website and making changes thereto(Malley,2000). Company does not need to transform its whole top management. All the aspects should be determined to implement the changes as top level management acquires all the resources to define different perspectives which are essential to the diversification in the product offering methods. Tesco has to develop proper plan in order to develop online business by adopting diversify methods to render products to the customers in an easy manner.
In the present scenario many organizations are implementing different tactics to adopt the proper measure to make the proper offering to the customers as per the needs and requirement. They can properly adopt the online portal to make the offering of the products to the customers in an effective manner (Harper, 2008). This will help the customer to make the easy purchase of the product and the services at a single click.
Does the problem imply a hard or soft system approach
Overarching approach helps Tesco to determine different strategy for implementing different aspects in order to bring diversification in the product offering. This approach is adopted to encompass the objectives in order to close down the store and make the online offerings as per the client’s requirement (Mintzberg, 2004). Tesco can effectively meet the opportunities which will be generated after the adoption of online delivery option to make product and services available to the customers. This will help business operation to be carried out in an effective manner as it helps in building organizational capacity to meet the demand of customers. Proper policies and procedures are adopted to make the effective implementation of business aspect which will help Tesco in shaping business plan in order to diversify. This approach will help Tesco to grow, stabilize and encompass the overall business activities. Diversification is an essential aspect that evaluates and adopts different methods which will help in fulfilling the demand of customers. With the help of this approach, conceiving distribution channel is developed which help Tesco in minimizing losses as customers can make purchase of the required products in an easy way.
Is there likely to be resistance to the change and if so what it is likely to be
In any organization, there are two types of forces; driving and resisting. Driving forces are those who seek change and resisting forces are those who seek to maintain the status quo. Tesco is deciding to shut its stores so it has to retrench its some of the employees or company has also option of transferring them into new departments related to online stores (Mostovicz, Kakabadse and Kakabadse, 2009). If, company transfers them into new department then they may resist due to complete change in their job profile. Company has to clearly explain the reason for change and provide adequate training to its employees. Tesco can also conduct force field analysis -
- Stating the problem – This step involves the determination of current state and desired state. Company has to consider where the current state will go if no action is taken. If, Tesco does not take any action such as non-availability of training, then there will be no jobs (Frow and Payne, 2005).
- Defining objectives – Here, company has to define what are expectations and outcomes of change that will be required to consider at the time of implementing strategy in order to expand business and meet the defined objectives (Ford, Ford and D'Amelio, 2008).
- Determining resistant forces – In this step, company will identify negative or resistant forces to change. These forces determine how effectively Tesco can accomplish the procedure to make online delivery of products and services to the customers.
- Comparing strategy against organizational objectives - In this step, Tesco will compare its new strategy with the objectives of the organization and analyze whether these objectives have achieved or not.
Tackling the change and management
In order to manage and tackle change in an effective manner, it is required that Tesco should use appropriate strategies in order to implement change. This includes different methods and measures which will help Tesco to clearly communicate different plans in an effective manner (Ogunsola and Ahmad, 2011). Changes can be managed effectively in order to diversify market in which it operates to communicate change in an effective manner and meet the requirement of customers.
The value chain
It is a set of activities which Tesco adopts to carry out business operations in order to deliver valuable products and services in an effective manner (Riley, 2015). These activities are determined to diversify market offering in an effective manner in order to meet the objective of Tesco.
In this, all the activities are associated to manage and store the externally sourced material.
Different operations are used to implement strategies in an effective manner (Parolini, Patterson and Winston, 2009).
This helps in making proper delivery of finished goods to the customers.
Marketing and sales
This is the aspect which is associated to deliver information related to the products services.
It is the aspect which is associated with the maintenance and delivery of products.
This is concerned with acquiring resources in order to procuring resources for the business.
Human resource management
Properly managing of human resources to meet the requirement of organization in order to implement strategies effectively and effective implement of the change (Fernando, Beale and Geroy 2009).
Manage information in an effective manner.
It is concerned with the effective allocation and designing of the support system in order to control the various operations.
Agents of change
There are different agents who try to implement changes in order to execute strategies in an effective manner. The agents who are involved to resist the change and effectively manage the operations with the effective utilization of resources are as follows: (Ritson, 2011).
Their expected role
Leader Leader should have the capabilities and potential to influence employees in order to diversify the modes of product offering and deliver best services to the customers (Dias, 2014). This can be attained by making product and services available at a single click.
ManagerManager needs to manage different resources such as manpower and other aspects that are associated to make products and services in order to serve customers in an effective manner (Fereday and Muir-Cochrane, 2008).
They have to manage different functions in an appropriate manner (Kreutzner and Schelhowe, 2003). They determine that different outcomes are attained in a specific manner which will ensure that strategy should be managed by workers in an effective manner (Steiner, 2010).
There are different strategies that are adopted to manage the change in an effective manner. This aspect helps in determining different strategies that are formulated to effectively manage the risk as well as profits that are associated with the services provided by Tesco to its customers (Toms, 2005). This can encompass different methods and measures which will help Tesco to clearly communicate different plans in an effective manner
Change is the process that needs to be managed in the business entity so that opportunities of growth and success can be encouraged. Further, in order to manage change at Tesco plc, it is essential for business entity to consider innovative and creative aspects so that overall business processes can be managed properly (Wang, 2005). Several theories and conceptual framework can be adopted to execute changes in the business practices and through this, Tesco plc will be able to enter into online retailing business. The present business has been adopted new marketing scenario (from direct retail selling to online selling of the goods); thus this can be considered as another perspective of change (Lindsey, 2000). Tesco is required to have certain transformations in the business activities so that new and innovative aspects can be adopted. Entering into online marketing can assist Tesco plc to target more customers and through the same strategy, customer base of the business can be encouraged. Hence, the following methods can be adopted to execute changes in the business entity.
Different models that are used in order to manage the change
McKinsey 7 S Model
The McKinsey 7 S Model is a management model that consists of hard and soft elements and all such elements help business entity to manage the change process in an adequate way. Hard elements are easier to define and they can be identified and managed properly especially in the relation of business transformations (Varbanova, 2013). This model is most probably used as an organizational analysis tool which assesses and monitors internal situation of the organization. The model is based on seven perspectives which aid business entity to perform well in all aspects.
Strategy: While innovating any new process in the business, it is vital for Tesco plc to formulate varied strategies so as to acquire competitive advantage. Hence, for such purpose, it is vital for the subsequent business entity. Hence, as per the strategic aspect, diversification strategy can be adopted by the business entity.
Structure: While adopting new process for the change management, Tesco plc is required to develop adequate structure regarding the online business process. Therein, roles and responsibilities of all the employees should be communicated properly (Drummond, Ensor and Ashford, 2007).
Systems: Tesco is required to adopt suitable system where in all the employees should be adequately involved in change management process. To produce optimum results, it is essential for Tesco to facilitate proper employee engagement aspects.
Shared values: Tesco plc has planned to adopt online marketing strategy. Therefore, it is vital to develop corporate culture so that business ethics and standards can be maintained. Hence, core values of the business can be managed and developed.
Style: Proper style of leadership should be adopted so that all the employees can get adequate directions to manage change process properly. In the present case, Tesco plc should adopt Democratic leadership style where in each and every employee should be involved in the decision making process.
Staff: Staff members of Tesco plc should have the capability to work in a proper manner. Hence, they must be capable enough to manage online business processes.
Skills: Employees of Tesco plc must have varied skills and competencies so that they can assist entity to operate all the business practices in a prominent manner.
Organization structure and the efficiency to manage the risk
Plan: At the initial stage, there must be proper planning related to each and every aspect so that Tesco plc can implement all the things in an adequate way. At the time, when business adopts new processes, it comes with risks and uncertainties. Therefore, there should be adequate planning about every aspect.
Ploy: In order to create competitive edge over the rivals, it is essential for Tesco to integrate new processes and strategies as a part of core strategy. This is vital in terms of managing the entire plan in an adequate manner.
Pattern: Strategic plan and ploys both are the deliberate exercises that should emerge on the basis of organizational behavior. Suitable pattern ought to be adopted so that Tesco can properly enter into online business process.
Position: Tesco has to determine adequate position on the basis of which it should enter into online marketing domain. Similarly, it will assist business entity to survive in the competitive market place. Hence, as compared to other business entities, it is crucial for Tesco plc to emphasize chiefly on competitive advantage and long term sustainability (Dodds, 2003).
Perspective: Tesco plc is required to consider cultural aspects so that business plans and processes can be managed in a prominent way. This is valuable in terms of facilitating creativity and innovation in the business processes.
Jonson, Whittington and Scholes:
Strategic planning: While managing change process, Tesco plc must have to focus on strategic planning so that focus can be made on all the strategic aspects. With the help of strategic planning, uncertainties and risks can be avoided and through this, sustainability opportunities can be enhanced.
Financial control: Changes always impact financial aspects of the business; therefore while implementing transformations at Tesco plc, business has to consider financial resources. There should be adequate allocation of resources in all the business practices (Brown and Osborne, 2012).
Strategic control: Controlling is required in all the activities so that organizational processes can produce better outcomes with the process of change management.
Control and measurement
Afterwards, the execution of change strategy, it is essential for Tesco plc to control and monitor the entire process so that areas of improvements and changes can be found out (Witcher and Chau, 2010). Hence, in the present case of Tesco plc, direct controlling actions will be made so that areas of improvements can be identified. Proper measurement is required about all the changes; hence managers need to conduct direct monitoring process. With the help of Balance Score Card, efficacy level can be evaluated.
From this report, it can be concluded that there are different methods and models which can be used to manage resources in an effective manner in order to implement strategies. This will help Tesco to grow and stabilize in an effective manner.
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