Tesco PLCs Sucess in Uncertain Business Environment - Coursework Example

1. My experience with business organization and its environment. (Theory and Practice) Introduction Organizational environment of a business includesa number of factors that influence the business in dramatic ways. There are both internal and external factors that have impact on the business like stakeholders, competitors etc. There are different methodologies that are widely applied to study and analyze the environment of a particular business organization. For this discussion, I prefer Tesco PLC which, as to my knowledge and experience, is a leading grocery and general merchandising retailer that has succeeded in today’s uncertain business environment. It is a high performing organization with growing international business opportunities and it operates by both global and domestic markets by more than 32 % market share and it has more than 2000 stores only in UK. To analyze the business environment of Tesco, I here use SWOT analysis to examine factors that influence Tesco PLC’s business environment. SWOT analysis of Tesco SWOT analysis is an important part of strategic management and planning. It provides a keen observation in to both internal and external environment of a firm. Environmental factors internal to the firm can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Strengths Tesco’s strengths are its resources and potential that can be used as means for establishing and developing competitive advantages. Tesco has a strong brand name that serves to be great market strength and it enjoys the marketing advantages. The brand loyalty of Tesco created through advertisements and customer oriented activities seems to be a strong defender for any sorts of competition from other firms within the industry. The reputation that Tesco has been able to create among their customers, results in a market of its own and it seems to be an asset as it attracts more customers further yet. Weaknesses A general weakness of Tesco is its lack of access to the best distribution channels as it faces difficulty to access best manufactures due to the distance and other problems. As compared to other large retailers and groceries within the UK market, Tesco should focus more on online shopping. Online shopping is becoming as the most convenient shopping method for most of the public as it needs less time for shopping and relatively less to be paid. Tesco can attract more customers through online shopping and any sort of advanced loyalty card strategies. Like other business firms, Tesco as well feels difficult to get access in to manufactures that are completely free from unfair trade activities. Fair trade issues in the UK market largely affects a firm to decide on how and where from to purchase and how much to be paid Opportunities Tesco has greater chances of launching new technologies so as to attract more customers and to provide most convenient shopping especially in a more competitive and fluctuating market like UK grocery market. Apart from the existing loyalty card services, Tesco needs to focus more on improved and customer oriented services to be offered through advanced loyalty card technologies. Electronic Point of Sale technologies need to be put into practice in all the stores throughout the UK so that more number of customers would be able to get better services and enjoy convenient shopping. Tesco is getting wide potential market worldwide and hence it can try the best to remove international trade barriers. Threats Shift in consumer taste is a growing concern to Tesco PLC. Nowadays, UK consumers tend to need snacks in highest quantities and hence groceries need to change accordingly. Trade barriers in international trade are some other threats for Tesco in expanding its business in to other countries. 2. Personal and professional goals of studying Business environment We need to improve the theoretical and practical understanding of business environment especially in a challenging business world is the foremost reason why we study business environment. Studying organizational environment will help us explore various types of organization within a particular industry or market and the different ways, financial and structural systems that they all operate in. From this course I want to grasp the procedures and modern methods of researching the market, setting goals, planning and implementing business strategies based on market influencing factors like demand etc. I am sure that this course will help to grasp deep knowledge on how market works with different businesses in different situations like financial boom, credit crunch etc. As we already have experienced from certain business environments, this course will be helpful to design most effective and sound marketing management system by which we would be able to success in implementing our business strategies. From analyzing a business environment, both internal and external variables that affect business organizations and how these variables can bring about a positive turn or negative turn to the business can be identified. Running a business needs business planning, co-ordination, decision making and sound communication system. In order to simplify these complex tasks, it is helpful to organize business with most efficient managing skills. We can achieve sound managing skills only through studying and practicing its various aspects. This course is designed to provide greater management skills so as to help learners become experts in different workplaces that they already belong to. Personal System Map PURPOSE Towards an enjoyable working life This personal system map outlines the basic objectives of this learning course. Being a working employee, I want to be an experienced in the filed of employment and thereby to learn the practical difficulties normally faced by employees. This, at the same time, gives me a hope to go ahead with professional skills as it also helps to become a supervisor or as an efficient manager. Being a learner of B201, I want to improve my knowledge further yet and hence to achieve an academia degree in business. Being a market researcher, would be able to apply my business knowledge to study business environment factors and thus to gain research skills in the concerned areas of interests. Becoming an efficient manger is my ultimate goal that can be achieved with the theoretical and practical knowledge I gain from this course. 3. Information System as a powerful tool for business organization Introduction In the modern business environment, information systems play a vital role in the overall performance of the business and implementation of innovation and technology within an organization. Information system within an organization plans and evaluates the newest and innovative technologies and determines how these may help their organization as a powerful tool for their ultimate success. Enormous websites, surveys data collected by different websites and articles published in online journals in general provide wide information database to the business decision makers. To gain from the intellectual wealth of any business organization, knowledge must be shared and it must be formed as a means of collaboration. Effective knowledge management should be able to promote further innovations by encouraging contributions of new strategies and ideas from all co-workers. Proper knowledge management will certainly increase income through quicker marketing of products and services. When we analyze information in the right way and apply to the business, operations can be restructured and costs can be eliminated by avoiding unnecessary processes. When business environment is becoming increasingly competitive and innovations are brought forward by different firms in the industry , knowledge is imperative to any business and it must be assimilated faster. Information System in Tesco Tesco’s information system includes providing timely information to the stakeholders regarding both internal and external affairs of the business. Apart from the general information system procedures that all other business organizations conduct as part of their information system, Tesco has focused on Customer Loyalty program that in turn not only satisfies the customers but helps Tesco to grow in their market share also. The clubcard system adopted by Tesco tracked customer spending and provided a 1% return on items purchased by the customer as a loyalty reward. Tesco was successful in informing its customer about its Loyalty program in a most effective way. Tesco implemented website-based planning so as to gather much information about customer buying habit, customers’ changing attitude towards fashion etc that can be used for store planning and new customer forecasting. This system actually helped Tesco to concentrate on implementing innovations throughout its stores and increasing standards of their products and services offered. Tesco has also implemented Rapid Data Collection program that was designed to make them able to respond quickly to the increasing needs of new and old customers using a ‘pull’ strategy that helps to meet demands in rapidly expanding both home and international markets. It is obvious that Tesco has undergone their own defining and assessing information system so as to achieve success in their market place. Conclusion Business organizations that wish to remain positive and competitive despite any sever hits of challenging business environment like current financial turmoil must implement effective information system. All organizations are data storehouse that produces wide information for marketing, managerial, financial legal and environmental factors. For the better utilization of the information, the organization must plan, design and implement information system in most appropriate way. References M Scott G (1986), Principles Of Management Information System, International Student Edition, McGraw Hill, Singapore. Tesco (2008), Annual Report and Financial Statements 2008, retrieved from http://www.tescoreports.com/downloads/tesco_report_final.pdf Read More