Competition from continental budget rivals are reported and this can be seen as a genuine long term threat. Also, Amazon has entered the food delivery market in parts of the UK with its subsidiary Amazon Fresh.
Being the largest supermarket chain in the UK brings a long list of British market challenges. Supplier Unilever publically challenged Tesco for trying to maintain low prices as the pound fell after the Brexit referendum. This conflict has settled, however, similar issues may arise again in the future due to the need to import food to offer a wide product selection.
Issues and debates about executive remuneration have been around since the Cadbury Report in 1991. However, whilst the executives are paid around £4 million annually, most of the staff are paid like the ‘Precariat class.’ (Standing, 2011) Do zero hour contracts and the living wage make for a happy workforce which Tesco’s management believe exists?
Also, is Tesco’s historical infrastructure a liability? Are the open 24 hours mega stores that Tesco was proud of, now liabilities as the trend is towards smaller, low cost venues? Tesco launched its own chain of small budget outlets called Jacks which will differ from its present Tesco Metro outlets, but there are many questions remaining about this future line. This summer, Tesco announced that 4500 jobs are to be lost at its Metro stores. (BBC, 2019) Also, are customers really as satisfied as Tesco’s customer satisfaction ratings suggest? Some people complain about the alcohol licensing hours; the requirement to show ID whilst purchasing alcohol; long queues and many customers can remember the UK horse meat scandal.
Task
Your role is to act as a change management consultant to investigate and critically analyse the current situation at Tesco so you can conduct a strategic review in report format.
The ideas stated above are simply to introduce the assessment, and as you start to research you will uncover or discover(?) many more facts and issues.
Please write a 1,500 word report to send to Tesco’s board, and make recommendations on the changes that are required to improve the business.
You must consider the following specific tasks and include relevant theory:
·Compile a force field analysis of the present situation at the Tesco that considers the pressures and tensions that are for and against making change, and reflect on how you would facilitate change.
·Apply an appropriate diagnostic model (Pestle and SWOT or McKinsey’s Seven ‘S’ model) and consider the wider internal, external and strategic implications of the proposed changes.
·Please note that Tesco already has a well-developed strategy, so your role is to improve it and generate ideas no matter how big or small.
·Your ideas may be from real events OR they can be imagined/ fictional provided that they are supported by academic theory.
Identify and critically analyse different theoretical approaches to the management of organisational change and their relevance within organisations
Demonstrate an understanding of different theoretical approaches and methods in the implementation of organisational change
Critically analyse the application of theoretical approaches to change to organisational situations
A well structured report that is clearly presented, with an appropriate depth of analysis leading to well justified recommendations
Clear evidence of wider reading and correct referencing, using the Harvard method.