It is a major point of concern for the organisation, therefore it is essential to be aware of the changes in the policies. The changes in the rate of taxation or any other aspects can affect the financial balance of the organisation. Although, Tesco operate a business on an international platform, the organisation is strictly dependent on the UK market shares. The downturn of the disposable income state and household incomes, the organisation has adapted to the existing condition by focusing on the advertisement of brand value rather than luxuries
Identifying stakeholders Someone having a stake in your project and its outcome is called a stakeholder. Stakeholders include your customers, the team members who worked on the project and the departments which will be affected by the project. Sometimes it becomes difficult to identify the stakeholders of the project. You must identify the major roles of the stakeholders. A customer of the project is a person or group who solves a problem.
This made them get their own brand value and trust in the brand has increased. Differential pathways - Tesco has entered into non food business, technology as smart phones, and finance sectors. Many supermarkets have attempted to expand in other areas, but Tesco has been quite successful. Tesco stores Malaysia is making it easy for customers to do hassle free, convenient and easy banking. It has collaborated with RHB banking group.
Tesco has continuously been increasing its market share worldwide. Tesco is holding 13% of the United Kingdom retail market share. The organisation has increased its market share by charging low prices to attract customers and has been opening new branches in various part of the world. Tesco online is a strength for the organisation it is able to target wider range of customers. Tesco online is operating in 270 store across the world where millions of people can purchase their products online.
According to Freeman, “a stakeholder in an organisation is (by definition) any group or individual who can affect or is affected by the achievement of the organisation’s objectives.” (Freeman, 2010, p. 46). This is the most cited definition in literature. (Mitchell, Agle, & Wood, 1997, pp. 853-886). Since a stake can be defined as “something of value, some form of capital – human, physical or financial – that is (placed) at risk, either voluntarily or involuntarily” (Clarkson, 1998, p. 2), organisational stakeholders can be understood as “individuals or groups who incur and/or impose risk in their relationships with the organisation.” (Vidaver-Cohen, 2007, pp.
By applying their unknown comparative strengths, Tesco’s resources and capabilities reinforce the company’s active performances. However, for the suppliers and communities, Tesco is a corporate bully robbing the community. Like the pilgrims and Native Americans changed the culture of America. Tesco’s growth comes at the expense of small businesses while diverting trade and wealth from local economies. On the other hand, the clarity of Tesco’s vision of continuous growth via diversification supports the organizational effectiveness in the marketplace (Pitt&Koufopoulos,2012).
Stakeholders have an interest in an organisation and they are affected by all decisions and actions taken by an organisation to attain its objectives. Stakeholders can be internal or external to the organisation. Stakeholder relationships are categorised in to the following four categories participative, collaborative, informative and defending. (Anon., 2017) Stakeholder engagement is a process of engaging with the relevant stakeholders (Morphy, 2015-2017). Stakeholder engagement is about addressing problems by providing strategies, infrastructure and processes.
3.1. Explain how products in Tesco are developed to sustain competitive advantage: To remain and have competitive advantage edge over other competitors Tesco has developed its product in response to customers’ needs and requirements, and research and development has been done in the field to develop the service to improve services and products all time. As other competitors always imitate the success of a company Tesco strives for betterment. Kotler suggested the product should be viewed in three levels: Level 1: the core product (rather than physical product) is the benefit of the product to customers, for example, Huddle product, which Tesco has produced, the ability to process videos, access of internet and watching live streams. Level
As a group, its annual turnover amounts to 28 billion pounds and though industry leader, continues to increase its market share. One of the strengths of the company 's success is its continuous improvement in terms of vision of information technology. The fact that it is one of the technology users with more forward-looking industry enables Tesco to be at the head (Mason and Evans, 2015). A highly competitive supermarket sector, customers are looking forward for wide range of quality products, accessible for 24 days at the right price. There are some retailers that cannot fail to balance the different aspects of management in terms of supply chain and demand of invest in the IT structure, which suits the demand of customers and shareholders (Zhao, 2014).
Frankly, as a customer in low and middle classes, usually will look at the price first before they make decisions to buy things. Tesco has higher cost products if we compared it to other grocery retailer stores, but Tesco always has smart strategy to attract consumers, such as specific product offers, special discounts or price cutting. “The lower the cost of producing your goods and services, the lower can be the price to your customers. The operation will spend its money on staff costs, facilities, technology, equipment costs and material costs”. (O’Brien, p45, 2004).