Management Principles of Tesco Company - Case Study Example

Management Principles Table of Contents Introduction 3 2.Task 3 3.Task 2 5 4. Task 3 6 4 Tesco’s current vision, mission and corporate strategy6 4.2 Recommendations for Tesco to formulate its corporate strategy 7 4.3 Organisational Culture 8 4.4 Analysis of Tesco’s ability to perform well by changing culture 9 5.Recommendation 9 Reference List 10 10 1. Introduction A manager is responsible in communicating the company’s vision to the subordinates and to decide the various strategies that the company can undertake for the benefit of the organisation (Deem, 2004; Amaratunga and Baldry, 2002). A management system in an organization plays a crucial role in organization’s growth prospect. The aim for this research is to understand the management strategy of various organizations and whether they are able to resolve conflicts within the organization. Through this research the researcher would have an opportunity to analyse the strategies of various companies and the impact it has on the organizations. 2. Task 1 A manager acts as the key factor in the organization in making valuable decision for the organization as a whole. However many companies have well trained management workforce who are capable of handling difficult situations and there are some other companies which are controlled by inefficient managers and finally the company runs at a loss. Researchers have found that a well trained work force will be able to efficiently handle the business practices (Bryde, 2003). Also a well motivated manager has the potentiality to make the company reach the desired goals and thus contributes to the future growth of the company. An efficient manager must have some skills like technical and managerial ability to perform various tasks for the company. Some managers are capable of demonstrating their skills efficiently whereas as some others fail to deliver well. The manager performs his various roles at different levels of management (Crawford, 2005). There is a clear distinction between active managers and the potential managers. Active managers are those who already handle the company’s decision making process whereas potential managers are those who have the capability of handling different situations within the company (Shuang, 2014). The manager is responsible for understanding the requirements of the clients and setting goals accordingly to achieve success. In case of a high performing organization the managers are so well trained that they are confident about their organizational strategic management (Deem, 2004). Such organizations have well-trained employees who are motivated by their team leaders to perform well even under pressure. The organization should be able to transform business strategy into people strategy and encourage the most capable employees to perform well (Deem, 2004). It is also the duty of the organization to take care of the employee’s needs and desires and reward them from time to time so that they contribute for the organizations success. The researcher has carried out his research on the world’s largest Food and Beverage Company named Nestle (Deem, 2004). The company has a very significant impact on its customers and it has gained brand loyalty over the years by provides nutritious health supplements to its customers. The company’s product ranges from coffee, tea, health drinks and baby food. Despite having a flexible organizational structure Nestle was still successful in achieving its goals (Deem, 2004). The company aimed to undergo a change in their management strategy for which they could develop two programs. The two new programs launched by Nestle were Nestle Leadership Program and Develop People Initiative (Deem, 2004). According to the company leadership skills could be improved only if the managers of the company wish to develop themselves. The company believed that there should be knowledge sharing, cooperation and personal development of the employees and the managers (Deem, 2004). The new initiatives taken by Nestle took around two long years to be accepted by the managers and the employees. 3. Task 2 Organization’s strategy refers to the plans that the organizations undertake to achieve their mission successfully. It depends on the managers and their efficiency in decision making that has a strong impact on the performance of the organization (Mangan and Christopher, 2005). If the managers are well experienced they would be competent to make valuable decisions for the company and the company would be able to maintain a high reputation in the market (Mangan and Christopher, 2005). The strategies made by the managers must be such that it is able to meet the challenges faced by the organization. Strategic planning is very important to make sure that the organization can set up its goals and achieve success. Strategy is the process of identifying, renewing and leveraging the efficiency of the company in order to be beneficial for the company as a whole. A well-defined strategy plays an important role to ensure that the company progresses towards its mission (Gans, et al., 2003). It indicates the efficiency of the managers to plan for organization’s future. The decision making process is one of the most important process that the managers undertake which comprises of extreme complexity in execution of the processes (McAdam and Reid, 2001). The survival of an organization depends on the efficient strategies that the company undertakes and the implementation of such strategies plays a key role. The size of an organization plays an important role in maintaining the structure of the organization. If the organization is of very large size then there would be different managerial levels and often the issues related to employees are not communicated to the higher authorities. While in case of small firms the employees are free to approach the higher authority regarding any issues. However the researcher has carried out a research in analysis the strategies taken by the world’s largest cereal producer named Kellogg that has gained a huge brand loyalty. Kellogg has a successful marketing strategy which has helped the company to gain a lot a reputation (McAdam and Reid, 2001). The company faces a lot of competition with the cereal producers across the world and aims at producing the best quality cereals for its customers. The company had a strong marketing plan and focus on corporate business which helps the company to set up its business on an international perspective (McAdam and Reid, 2001). Most of the strategies applied by the company are pre-planned, controlled and well-implemented which allows the companies to meet challenges. The company not only takes care of its customers but also meets the desires of the employees and the shareholders. Researcher has found that the employees are happy with the performance of the company and they wish to serve the company for a longer time (McAdam and Reid, 2001). The internal work culture of the company is strong enough to overcome challenges that the company may face. Although Kellogg is a large organization yet the efficient management tactics within the organization play a very significant role in resolving conflicts (McAdam and Reid, 2001). 4. Task 3 4.1 Tesco’s current vision, mission and corporate strategy Tesco is one of the world’s largest retailers that serve a huge customer base and the company has set its reputation in the world market. The company tries to understand the needs and desires of the customers and wishes to serve them accordingly. It interacts with the customers to know about their needs and invents new products to meet those needs. The company follows work ethics and the employees work in a team (Mihalic, 2000). The managers are highly proficient in understanding the customer needs and setting goals for the company to achieve its mission. The managers are well efficient in planning strategies and satisfying the customers as well as the stakeholders. The company also hires new employees and thus creates new job opportunities. Tesco also works in the field of encouraging the customers to lead a healthy life and thus aims at reducing the problem of obesity (Shuang, 2014). The company has an objective to reduce food wastage and thus creates value to the society. Tesco has set up a huge customer base and hence it aims to set up new strategies to expand its business all over the world. The company aims at building a strong work force and as maintain ethical culture within the company as well as inter-personal relationship with the customers and the stakeholders (Turner and Keegan, 2000). However the company is planning to shut down some of its stores in UK and has plans to open new stores for its business expansion (Turner and Keegan, 2000). 4.2 Recommendations for Tesco to formulate its corporate strategy Tesco has set up its business all over the world as the largest retailer and it faces a huge competition from its rivals. Hence it is highly recommended for the company set up its corporate business by training the employees. The managers should be efficient enough to understand the client requirements and plan strategies accordingly so that the company can efficiently meet the demands of the customers. Tesco creates job opportunities by hiring new employees and the recruiters while hiring should make sure that the candidate hired for the company has a dedication to work with the company. The newly hired employees must be trained by the efficient managers so that they are able to deliver well according to the customer’s needs. The company can organize skill management programs for the employees such that they develop skills that are essential to perform well within the organization. The company must also offer perks and incentives to the employees in order to motivate them such that they aim to serve the company for a longer time. Since the company has a high probability of losing its shares the managers need to take steps to raise the shares. Although Tesco managers are efficient enough to plan out strategies for the organisation but the company has to plan for its sustainable development. Tesco should always try to invent new products that are high beneficial for the customers and helps in expanding the business for Tesco. The company needs to invent a wide range of innovative non-food products and non-food delivery service for its customers. Tesco can also improve its online retailing business in order to capture larger market share and huge profits. 4.3 Organisational Culture Organization’s culture is very important to be ethical in order to create a good work environment for the employees. It is the duty of the managers and the team leaders to motivate the employees in an organization and reward them for their performance (Shuang, 2014). Organizational culture is considered as a set of values and beliefs that affects the way of thinking of the employees (Shuang, 2014). The organizational culture is maintained by the organization through socialising the employees and creating a friendly work culture. Organizational culture plays a key role in increasing the employee’s dedication towards work and they prefer to serve the organization for a longer period of time. Often the organization wishes to change its culture and this change should prove to be favourable to the organization (Shuang, 2014). 4.4 Analysis of Tesco’s ability to perform well by changing culture Tesco has set up its retailing business by attracting a large number of customers for its products. The company hires employees and train them to perform well and contribute to the organization’s success (Shuang, 2014). The managers of Tesco are highly efficient in running the business practices. The company has a group of efficient team leaders who handle the teams well. The team leaders are efficient enough in handling conflicts within the team members. The team leaders are highly cooperative and understand the capability of the team members and encourage them to share their views regarding any project (Shuang, 2014). The managers are proficient enough in maintaining ethical culture within the organization and try to maintain good relationship with clients and the stakeholders (Shuang, 2014). Thus it is expected that Tesco’s organizational culture would be very effective in motivating the employees to perform well. 5. Recommendation A manager plays the most crucial role maintaining the company’s reputation and also handles various teams in order to run the business successfully. The researcher had the opportunity to carry out research on various organizations. The organisational management strategies where better evaluated by through this research and the researcher could also suggest some ways in which the organization can develop and set up its reputation in the market. Reference List Amaratunga, D. and Baldry, D., 2002. Moving from performance measurement to performance management. Facilities, 20(5/6), pp. 217-223. Bryde, D. J., 2003. Project management concepts, methods and application.International Journal of Operations & Production Management, 23(7), pp. 775-793. Crawford, L., 2005. Senior management perceptions of project management competence. International journal of project management, 23(1), pp. 7-16. Deem, R., 2004. The knowledge worker, the manager‐academic and the contemporary UK university: new and old forms of public management?.Financial Accountability & Management, 20(2), pp. 107-128. Gans, G., Jarke, M., Kethers, S. and Lakemeyer, G., 2003. Continuous requirements management for organisation networks: a trust-based approach. Requirements Engineering, 8(1), pp. 4-22. Mangan, J. and Christopher, M., 2005. Management development and the supply chain manager of the future. The International Journal of Logistics Management, 16(2), pp. 178-191. McAdam, R. and Reid, R., 2001. SME and large organisation perceptions of knowledge management: comparisons and contrasts. Journal of knowledge management, 5(3), pp. 231-241. Mihalic, T., 2000. Environmental management of a tourist destination: A factor of tourism competitiveness. Tourism management, 21(1), pp. 65-78. Shuang, Zhao., 2014. Analysing and evaluating critically Tesco’s Current Operations Management. Journal of Management and Sustainability, 4(4), pp. 184-187 Turner, J. R. and Keegan, A., 2000. The management of operations in the project-based organisation. Journal of Change Management, 1(2), pp. 131-148. Read More