Swot And Pestle Analysis Of Tesco

Swot And Pestle Analysis Of TescoExecutive heavysetThis report outlines the Introduction of Oyster Cards and Mobile Phones Top Ups Counters at all TESCO Retail outlets in UK. The SWOT and swearingAL compend reflects that TESCO has currently the strengths and resources to successfully offer this returns to enhance the guest services to the clienteles. This report in any case envisages the fulfil and death penalty of assortment and its impact on the current anatomical structure while moving towards the service enhancement with the facilitation of grocerying and swop guidance tools, theories and frame go bad. More emphasis would be on implementation of strategies for successful adaptation of virgin-fangledly asseverated service.IntroductionTesco is a well k presentlyn Britains leading nutrition retail group with an existence elsewhere in Europe, Asia and the United States. Tesco runs more(prenominal) than 2,300 super merchandises, hypermarkets, and convenience stores in the UK (where it is the market draw in food retail), Ireland, primeval Europe, and Asia. Its operations include convenience and gasoline retailing (Tesco Express), down(p) urban stores (Tesco Metro), hypermarkets (Tesco Extra), and financial services through Tesco Personal Finance. A global draw in online grocery sales, it owns a 35% stake in US grocery chain Safeways Grocery Works. It is the leading online grocery store and it is now expanding its business with a TV channel and a retail base education institution.The Tesco offers to its customers a wide range of food and non-food items under the oneness point of sale, non food items range includes clothing, furniture, Home electrical, personal cargon, computing, cameras and phones etc. heap ValuesWe talk about either Little Helps a lot, scarcely its not just a catchphrase or marketing slogan, it represents everything we deadlock for. For our people and our customers, its how we run our businesses from China to Chorley. (www.tesco.com)Literature ReviewMy core books pass on be Essential Guide to Marketing programmening by Marian Burk Wood and Kevin Kellers Strategic Brand Management. Which has been the essential tool for helping me in devising the right approach for my dissertation? Furthermore, I volition be using some of alteration management books Making Sense of Change Management by Esther Cameron and Mike Green and John P Kotter s Leading Change Which can be useful in the abridgment of change management process and tools for successful interventions. List of some of the resources that I will make use of it is as fol imprintsHARVARD BUSINESS REVIEW.JOURNAL OF ORGANIZATINAL convert MANAGEMENT.THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENTARTICLES OF EMRALD.WEBSITES CIPD, TIMES coke AND PERSONNEL TODAYSWOT and PESTLE Analysis of TescoA PEST summary of the constancy will examine the local, national and global influences of political, economic, cordial and technological factors t o understand opportunities and threats well.INTERNAL STRENGTHS Diverse ranges of crossways Open 24 hours a day Strong Cash Flow Position Increase derangement and trading profits Strong Balance Sheet Leading Supermarket compass Brand Awareness Human resources Online Shopping Capabilities to turn resources into advantages OPPORTUNITIES Develop post awareness globally New Markets Market shift to globalization health awareness emergence -GM crops Innovation Alliances Low make up brand growth Diversification Non-food offers untapped new markets with high gearer margins EXTERNAL WEAKNESSES Perception of low quality -(Tesco value brands) Lack of local knowl brim of customers and culture contradictory brand THREATS New existing competition Volatility in price of raw materials Economic recession Market shift to globalization coup detat bids Far-East low cost brands Extremely high competition for customers and resources External milieu PESTLE AnalysisAll of those (political, economic, social, technical, legal and environmental) factors will to some design apply to the retail industry in Sweden.POLITICAL Following the European Integration and Free Trade Agreements, the market has opened up for British Companies to invest in Eastern Europe. Tesco already has 60 Hypermarket store in Hungary. Lidl is uncompromisingly fighting to maintain its market share with an aggressive set strategy.ECONOMIC the Retail sector is fairly recession prawn and in addition very sensitive to changes in interest rates. Since the events of September 11th the human economies get to suffered heavily, stocks plummeted and prices are at all date lows. The existence scrimping is however, now on the up post September 11th. Con essenceers are starry-eyed and the retail industry is once again booming.SOCIAL changes in consumer druthers and lifestyle represent both opportunities and threats for the industry. Opportunities in hurt of new market and consumers, however, there are added threats in damage of alternative manifested Swedish national retailers (foreign company bias).TECHNICAL Changes in retailing methods as such(prenominal) clothes sales via the Internet is now a common key in retailing. Paperless operation, the management and administration of the company are undertaken on IT systems, which are accessed through secure servers provide flexibility in the running of the business. As Sweden is at the forefront of technological advancement with national companies like Ericsson, Tesco would fetch it away the comprehensive logistic and distribution channels already in place. legitimate National legislation for health and safety both in wrong of consumer rights and as well as in terms of production of own natural renewable resources for making clothes.ENVIRONMENTAL The renewable source of resources used in production, that is to say cotton and wool are environmentally friendly. The threats are in terms of legal consequences for livestocks in terms of health and safety. Critical AnalysisTodays world competition is very strong in every kind of businesses. Every organizations must provide excellent products or services in army to stay in competition, however their competitors also providing the same or similar products or services. An all important(predicate) way to an organization to get an edge all over its competitors is to identify the customer convey and extra service to satisfy and fascinate their customers, which can retain them and also gain new customers and leads to ultimate profits. therefore, the movement of customer satisfaction must be a major accusing in all organizations.To achieve customer satisfaction, an organization has to provide high quality products and also provide an excellent customer service. When the service and product that the company provided is good, they can obtain customer loyalty. The customers will go again and again.The above SWOT and PESTLE analysis shows that the TESCO i s fully capable to introduce the Oyster card top ups counterpunchs at TESCO retail outlets to facilitate the customers and product reasonable profit share from the market, where secondary retailers used to earn from the market. The cost of the entire project could be workout and oyster top up machine could be purchase in bulk at economic price from the suppliers. trance introducing this new service certain structural changes would be under taken by the management and few strategies to adapt to successfully implementing the change process.This new service will engaged the attention of the commodious existing customer base nevertheless it will also absorb the new customer who could be facilitated by this new service as an enormous people travels through rails, tubes and buses to their work places, schools, shopping malls, amusement centers from sunup to evening.Until this report none of the competitor such as ASDA and Sainsbury has given this service to customer, so this service will give a competitive edge to TESCO on its leading competitors.Change ManagementEverybody has a game stick out until they get hit in the mouth.-Mike TysonChange management is a incorporate approach to transitioning individuals, squads, and organizations from a current state to a in demand(p) hereafter state. en.wikipedia.org/wiki/Change_managementChange management frameworksLewinBullock BatternJohn P KotterBeckhard HarrisNadler TushmanMcKinseyWilliam BridgesSengeStacy Shaw apostrophize practice sessionsLewis impregnable for analyzing change at the startBullock Batten true for simple isolated changesKotterGreat approach for large or small changes, does imply a linear approachBeckhard HarrisSimple change facial expression (C=ABCX) for analyzing change at any point in the processNadler TushmanGood checklist for what should be covered in changeMcKinsey Seven SEncourages hassle focus looks at change from interdependent subsystems.William BridgesGood at tackling inevitable cha ngeCarnallAnother good checklistSengeDifferent approach, start small and grow. Dont plan everything up front as you cannot control change.StaceyShawA new framework promoting the fact that there are no easy responses. not very prescriptive.Aims and Objectives of ChangeChange management is not an end in itself. Nor does the organization really care about how cutting edge the solution happens to be.The Objective is to see the resultant benefits actually being deliveredAs profligate as possibleCompletelyAcross all the end usersWith an importunate adoption by stakeholders and end usersDelivering the targeted benefits corroborate to the client who invested all the time and moneyIn this regard, change management has a real component part to make.Change Process/ MethodologyFollowing the above change exemplification Tesco strategic management will firstly break down the project team for the initiation of the oyster card project. A team/ project drawing card will be selected dependin g upon he essential skills and experience. A team leader will create a clear vision about the installment of oyster top up machines at TESCO retails outlets in UK. After creating a comprehensive vision he project team will develop a concrete Project Plan and utilized all the addressable resources of TESCO including human resource. Will take assistance from the current IT team to data link the oyster top up machines through ne iirking and execute the necessary IT buy at to the newly developed project. Furthermore, work force would be hired and accomplished for the project and in the end a test run would be punish for successful launch. After a launch, an appropriate monitoring will be done to review the short comes of the project and continuous feed back will be taken from the stake holders i-e employees and customers. In this scenario a desired state will be achieved and result could be seen in terms of revenue.Implementation of Strategies in Change Management processFor the successful implementation of Oyster cards top up machines at TESCO retail outlets, two following strategies would be used for the analysis of the existing cause forces and qualifying forces and an analysis of stakeholders to identify the readiness of stakeholders for the change.Lewin (1947, 1951) Force Field AnalysisForce handle analysis (Lewin, 1951) is a diagnostic technique which has been applied to ways of tone at the variables involved in determining whether fundamental lawal change will occur.It is ground on the concept of forces, a term which refers to the perceptions of people in the organisation about a particular factor and its influence.Driving forces are those forces bear on a situation and which are attempting to push it in particular direction. These forces run for to initiate change or keep it going.Restraining forces are forces acting to restrain or decrease the driveway forces. A state of residue is reached when the sum of the driving forces equals the r estraining forces.Lewin formulated three fundamental assertions about force field and change.Increasing the driving forces results in an increase in the resisting forces the current equilibrium does not change but is maintained under increased tension. reduction resisting forces is preferable because it allows movement towards the desired state, without increasing tension.Group norms are an important force in resisting and shaping organisational change.As far as TESCO is concern, its driving force is leading position and rapport in retail industry and availability of huge finances along with structured frame work of outlets. In additions technology advancement and skilled work force is also great driving force in TESCO, however, established work patterns, self-satisfaction and lower profit margin would be resistance occurring factors. But driving forces at TESCO are stronger as compared to restraining forces.Stakeholder Analysis and WIFMIn their book Organisational Transitions Mana ging thickening Change (1987) Beckhard and Harris describe and illustrate two techniques for analysing relevant sources of energy.They analyse one by one the sources and potency of forces for change, and the readiness and capability of individuals and groups to enact change.First, the nature of the change demanded must be specified, using tools and techniques associated with environmental and organisational analysis.Then all the forces for change, both inner(a) the organisation and external to it, are listed along one axis of a grid.On the other axis the potency of the forces is indicated, as high, medium or low.Sources and Potency of Forces (Beckhard Harris, 1987)Early on in the change process, organization need to identify which specific groups and individuals will be required to support the change if the change is to be successful.When they have done so they can rig the readiness and capability of these individuals and groups to enact the roles required of them in the change process. thought the readiness involves analysing attitudes willingness, motives and aims.Capability is determined by whether they have the power, the influence and the effectiveness to allocate resources, and the appropriate information and skills.Beckhard and Harris (1987, p.63) have developed a Readiness-Capability discernment Chart which enables the user to list individuals or groups who are critical to the change effort, and to rank them (high, medium, or low) each according to their readiness and capability with extol to change.The following chart will be used to develop an analysis related to stakeholders readiness to develop the change or adopt the new procedure.Readiness and Capability (Beckhard Harris, 1987)Stakeholders(Key Individuals or groupsReadinessCapabilityAction required to increase the readiness or capabilityNeed to rate as high, medium or lowWhere a change must be implemented from the outside, ie when it has not been defined as necessary by the people involv ed, then it is unlikely to succeed (yield the full results of which people have ambitions) unless some of those involved are in favour of it.Several observers (Rogers, 1983) have suggested however that not everyone needfully to support a change, and that not everybody needs to support it to the same extent.Senge in The Fifth Discipline (1990) talks of the loss betweencommitment,enrolmentcompliance,Suggesting that while it is more pleasant (and reassuring) to have considerable commitment, it is not necessary for everyone to be as fully signed-up as this.There exist a number of positions along a continuum, along which players whitethorn position themselves in response to proposed action and changeTESCO implementation PlanClearly overhaul the vision of TESCO via effective communication tools.Manage employee and customer prospectsProject manage and measure the processBe seen to add value to organizational goalsBuild on some quick wins or shorter rewards.Use the line managers/ first l ine managers as wellBe down-to-earth about personally and corporatelyManage conflictRepeat key messages and communicate even when important to sayManage ResistanceRemain macroscopical and out of the bunkerKeep eye on the ball and dont impede about customers and competitorsConclusionAfter conducting a thorough research it has been finally in the recommended that TESCO should have introduced Oyster Card top up counter at its all retail outlets in UK to acquiesce the maximum market share on the consumers product, this would be a unique step in the gain retail industry and satisfy the customer numerous community travels through underground metros, tubes, buses, daily to commute their workplaces, universities, schools, amusement centers etc. While introducing the oyster top up card facility, certain change process should be adopted by TESCO to analyze the readiness of stakeholders in word sense of the change. However, TECO driving forces are tend to be stronger than its restraining force, so the change could be easily absorb by the employees and other associates. TESCO has a well establish infra-structure that appropriately supports the change. By this strategic move, I am sure that TESCO will not only increase the revenue but also expunge the customer loyalty in addition to the competitive edge over the competitors.