An assessment of

Creative and Innovative Management

In Tesco PLC.
By Seyed Jafar Payandeh
LCUCK, College of London
Lecturer: Professor Ashish Gupta
Final assignment
18/02/2013

Contents
Subject

Page

1. Introduction....4
2. Aims of topic...5
3. Creative and Innovative Management process in Tesco..6
4. Leadership to consistently stay creative and innovative in Tesco....7
5. Vision and Mission in Tesco: Assessment of their creativity and innovation....8
6. Potential creative and innovative ideas in Tesco...9
7. Benefits and risks of Creative and innovative ideas...10
8. Change models supporting implementation creative and innovative ideas.....11
9. Persuading the stakeholders of Tesco in terms of benefits of a creative and innovative management idea with
the production of an appropriate rationale.....12
10. Evaluation of the communication of a creative and innovative management idea to stakeholders of Tesco......13
11. Key goals for implementation of a creative and innovative management idea using feedback from stakeholders..15
12. Assessment of the barriers to the implementation of a creative and innovative management idea in Tesco.....16
13. Explanation of a plan of a strategy to overcome identified barriers to the implementation of a creative and innovative
management idea in Tesco...17
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14. Evaluation of the communication of a strategy plan for overcoming barriers to relevant stakeholders in Tesco.19
15. Conclusion...20
16. Bibliography......21
17. Self-evaluation..23

Introduction
This report as an interim assignment, has written to assess the creative and innovative management in Tesco Plc. To understand the level of
creativity and innovation in this well-known organization, it is necessary to look into the history of it, then to process and potency of innovative
and creative management in Tesco.

History of Innovation and Creativity in Tesco

Tesco was founded in 1919 by Jack Cohen. He began selling surplus groceries from a stall in the East End of London in 1919. He left the Royal
Flying Corp at the end of the Great War and used his [trivial] demob money, [30], to buy the first day's stock. At the end of the first day Jack
Cohen made a profit of 1 on sales of 4 (Tesco, 2012). In 1924, the first own-brand product sold by Jack was Tesco Tea - before the company
was called Tesco. The name comes from the initials of TE Stockwell, who was a partner in the firm of tea suppliers, and CO from Jack's
surname. Jack Cohen opened the first Tesco store in Burnt Oak, Edgware, and north London in 1929. The store sold dry goods and the first
ever branded product, which, unsurprisingly, was Tesco Tea! In 1934 Jack Cohen bought a plot of land at Angel Road, Edmonton, north London
to build a new headquarters and warehouse (Tesco, 2012).
It was the first modern food warehouse in the country and introduced new ideas for stock control. The 1930s saw Jack Cohen growing the
business by buying stores in the expanding London suburbs. Jack Cohen decided to venture into self-service following a research visit to North
America. The first of these new stores opened in St Albans, Hertfordshire in 1948 with a mixed reaction from customers at first. In 1955 Tesco
bought 19 Burnards stores. Between 1955 and 1960 over 500 new stores were purchased. The first supermarket was opened in Maldon, Essex.
In 1958 the store included a counter service selling cheese, butter and meats weighed by sales assistants. Tesco started selling household
goods and clothing in our stores across the UK in 1960 (Tesco, 2012).
Green shield stamps were introduced in 1963. Stamps collected at the checkout could be exchanged for a range of goods from a catalogue.
The term 'superstore' was first used in 1968 when Tesco opened its store in Crawley, West Sussex. In 1973 Tesco opened a new head office in
Cheshunt, called New Tesco House. In 1977 the Green Shield Stamps were phased out and replaced by a major price-cutting initiative called
'Checkout at Tesco'. This advert helped launch this campaign. In 1982 for the first time, we introduced computerised checkouts to our stores.
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Tesco launched its own label healthy eating range of products in 1985, the first major retailer in the UK to do so. In 1992 the first Tesco Metro
store opened in Covent Garden and offered products tailored to the local market with a strong emphasis on lunchtime snacks. Since 1992 the
scheme of Computers for schools, has raised 185 million worth of equipment for schools around the UK. The Every Little Helps strap line as
a new campaign attracted 1.3 million new customers between 1993 1995 and Tesco Value was launched to offer the customers a wider
choice of products at a great price (Tesco, 2012).
In 1994 Tesco Express opened in London and been used as a traditional village shop. The Tesco Clubcard was launched in 1995 and attracted
nearly 5 million customers in the first year. Tesco opened its first Extra format store in Pitsea, Essex in 1997. Tesco Personal Finance as new
saving accounts exceeded all expectations and over 300,000 applications were received in this year. Tesco.com was launched in 2000 and has
grown to serve over 500,000 customers each week. Tesco Direct, the catalogue business, was launched in 2006. The catalogue provides an
extensive range of electrical appliances, home furnishings, toys and much more. In 2009 Tesco set out our plans to build a full service retail
bank after buying out the RBS 50% stake in Tesco Personal Finance. Following the acquisition, Tesco Personal Finance became known as Tesco
Bank. A new Club card app was launched in the UK in 2010, which gave customers a new way to swipe their cards in store. The new Tesco Asia
Academy opened in Incheon, South Korea. Each year 24,000 staff across Asia will be trained at the Academy. In this year the Friends Loyalty
Card was launched at Fresh & Easy in the US. The scheme gives cash rewards and bonus point coupons (Tesco, 2012).

Aims of the topic

This report aims at understanding the importance of innovative and creative management in Tesco and the processes wherein Tesco has
executed innovation and creativity to add more profit to its earning. In fact, answering to the question of How is Tesco performing the
creative and innovative management ideas within the organization? is the main point of this report. The intrinsic purpose of this report is to
gain an experience of looking into a real businesss potentials for innovative and creative ideas and consequently, developing those ideas by
the means of assessing the barriers facing through the implementation process in the organization, then to identify some strategies to do away
with the barriers.

Creative and Innovative Management process in Tesco

The emergence of the knowledge economy, intense global competition and considerable technological advance has seen innovation become
increasingly central to competitiveness. Innovation is the mechanism by which organisations produce the new products, processes and
systems required for adapting to changing markets, technologies and modes of competition (Lawson & Samson, 2001). Luecke and Katz (2003)
suggested a handy model for Innovation process which the introduction of a new thing or methodand the embodiment, combination, or
synthesis of knowledge in original, relevant, valued new products, processes, or servicesthrough the lens of the business functions and
processes needed to turn an idea into a commercial product. This model highlights two stages in the process of innovation: invention and
exploitation. Idea Generation, Idea Evaluation and Opportunity Recognition embody processes and concepts associated with invention (or
what may be called creativity), while Development and Commercialisation are concerned with the exploitation of ideas. Together, these
stages give us innovation. Figure 1 has shown the system of
this model.
Figure 1: Innovation process
With regard to this model, Jack Cohen, although he started
Luecke and Katz (2003)
his business from a stall but after working hard the idea of
merging with other businesses or companies arose in his
mind. This idea led him to a special opportunity to become a
partner of TE Stockwell in a tea supplier firm then to launch
his business labelling by Tesco. He was aware enough of the
market to expand his business by purchase of variety of
lands and stores all over the UK. He was also a venturer in
implementing his ideas in the face of emerging of new
opportunities e.g. modernised food warehouse, new ads and
services, technologies, marketing, data collection, safety and
security, H/R management etc. And these elements made his
business the strongest retailer within the UK and the third
entire the world. He knew any change would cost him so he
chose those changes that would give him the best revenue.

Leadership to consistently stay creative and innovative in Tesco

According to Professor Teresa M, Amabiles (1996) note, Creativity is something done by creative people and is the production of novel and
useful ideas in any domain. She stated that Innovation is the successful implementation of creative ideas within an organisation. In this point
of view creativity by individuals and groups is a starting point for innovation. The particular form of innovation which is the successful
implementation of creative ideas to produce new business, or a new initiative within an existing business is called entrepreneurship (Amabile,
1996). Thus, in order to lead the individuals creativity towards innovation or entrepreneurship it is necessary to link the components of
creativity to components of innovation. Amabile (1996) suggested the three component model of creativity which illustrated that Expertise,
Creativity skills and Task motivation are the main factors of creativity in an organization. Then she indicated the three elements of innovation
which are Resources, Management practices and Organizational motivation.
The leadership and organizational motivation is made up of the basic orientation of the organization toward innovation as well as supports for
creativity and innovation throughout the organization. She added that the orientation toward innovation must come, primarily, from the
highest levels of management, but lower levels can also be important in communicating and interpreting the vision. Amabile indicated some
implications that foster the innovative and creative management namely allowing a considerable autonomy in the conduct of ones work,
appropriately matching individuals to work assignment by creating a positive challenge in the work, and project supervision.
Looking into Tescos leadership, as mentioned in their profile, the company pays considerable focus on harnessing the creativity of its
workforce and encourages staff to come forward with ideas. The companys prowess in process management applies just as much to its idea
management as it does to logistics and store layout (TESCO PLC, 2007). It seems that Tesco is leading its human resources in terms of
Democratic style of leadership although the type of its management is obviously centralised. As Tesco uses encouragement of its staff to idea
generation carrying it through innovation, it means, logically, it uses the transformational approach of leadership. There are also some
assigned project supervisors who always look around within the stores and control the process of serving the customers and the condition of
the staff. There is also a positive challenge between the work forces competing to gain the announced awards or promotion in case of being
creative and effective.

Vision and Mission in Tesco: Assessment of their creativity and innovation

Tescos vision for the future is to be the most highly valued business in the world. Valued not only by its customers, but also by the
communities it serve, its loyal and committed staff and its shareholders. It is and it will remain a growth company. It will be a modern and
innovative company and it will win locally by applying its skills globally (Tesco PLC, 2012). Thus, Tesco in order to remain leading retailer
worldwide should be incrementally innovative and flexibly changing company in terms of adaptation to new ideas, new tech, new markets and
coming opportunities.
Its mission statement is that Tesco is the UK's largest retailer and one of the world's leading international retailers. Tesco has around 5,000
stores worldwide, employing over 500,000 people in the 14 countries in which it operates. Its core purpose is to create value for customers to
earn their lifetime loyalty. Its success depends on people: the people who shop with us and the people who work with us.
Looking into Tescos Values and permission they declare that We work in an environment that is based on trust and respect and we know that
motivated staff will give our customers great service. By truly living our values, we create a great place to work and one where we deliver great
customer satisfaction. In addition to 'Every Little Helps', we also have our own set of Customer Promises that determine how we treat our
customers (Tesco PLC, 2012).
The Group Chief Executive of Tesco, Philip Clarke, stated that Innovation doesnt have to flow from a boardroom where we sit in meditative
contemplation. Innovation can come from anyone in the business. My job is to make sure great ideas get a good hearing, that they are teased
out and tuned up. Business leaders set the vision - the stretching ambition - and nurture a culture where everyone in the business is excited by
innovation (Clarke, 2012). In this regard, it is clear that vision and mission of Tesco drive the innovation and creativity not only top down but
also considerably bottom up.

Potential creative and innovative ideas in Tesco

Tescos trading domain spread out from UK (the core) to Europe, Asia and United States. In order to discover the innovative potencies for
Tesco yet there is a graphical comparative analysis between the four arenas of Tescos international trading profit:

UK trading profit

Europe trading profit

Asia trading profit

US trading loss

According to the financial review by Laurie Mcllwee, the Chief Financial Officer, The international businesses performed strongly, delivering an
18% increase in profits, which helped to compensate for the reduction in trading profit in the UK (Mcllwee, 2012).
On this basis the potential innovative ideas could be the following choices: In the United States, Tesco reduced losses, moving towards breakeven, before accelerating investment; in Japan, it announced its decision to exit the market after eight years; in China, it stepped back from the
freehold shopping centre programme and have decided to hold back on the pace of new leasehold hypermarket development for the time
being; at the Bank, it slowed down the migration to its own platforms to ensure it was as smooth as possible; and in the UK, it took a significant
step to correct its pricing position with The Big Price Drop and, in January, acted decisively to address the underperformance in its home
market. These actions will make Tesco better for its customers and are supported by a financial strategy that will also make Tesco better for
shareholders. Besides, Tescos trading in Asia has been successfully lucrative as it has surpassed the trading benefits from Europe and US.

Benefits and risks of Creative and innovative ideas

Benefits:
Since 2000 Tesco has become the worlds largest online grocery retailer. Tesco Direct website now offers more than 75,000 products.
Tesco Bank, since launching in 1997, has grown to 6.5 million customer accounts across a range of products and services. In 2011/12 the
banks revenue was 1bn and the profit was 168m. Tescos group sales have increased in 2011/12 to 72.0 b from 67.6 b in 2010/11. The
number of stores owned by Tesco has increased from 5,380 in 2010/11 to 6,234 in 2011/12. The quantity of employees also has up surged
from 492,714 to 520,000 people (Tesco PLC, 2012).
Risks:
Tesco invested 30 million in its Asia training academy (Tesco PLC, 2012). As the Tescos US trading has lost 153 m, inevitably it needs a
significant investment; Continual changing political climates worldwide and also technological arrivals; Failure to compete on areas including
price, product range, quality and service in increasingly competitive UK and overseas retail markets could impact its market share and
adversely affect the Groups financial results; Failure to protect the Groups reputation and brand could lead to a loss of trust and confidence,
a decline in customer base and affect Tescos ability to recruit and retain experts and good people; Continuing acquisition and development of
property sites carries inherent risk for Tesco; Failure to attract, retain, develop and motivate the best people with the right capabilities at all
levels could limit Tescos ability to succeed and As the business grows in size and geographical scope, the potential for fraud and dishonest
activity by Tescos suppliers, customers and employees increases (Tesco plc, 2011).

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Change models supporting implementation of creative and innovative ideas

Using IDEAL model of change, Tesco will be under investigation of requiring an urgent change. IDEAL is an acronym for Initiating, diagnosing,
establishing, acting and learning. For Tesco competing with two more powerful retailers namely Walmart and Carrefour almost within the
common market place, seems to be nerve wrecking and stressful. Thus, it could be a sensible initiating stimulus for Tesco to change. It could
be diagnosed that reinforcement of the UK core and the Asia trading is vital to Tesco and also is a potential improvement opportunity for it.
In the establishing phase, Tesco should provide a special team for change so that it could generate the idea to respond to the question of
how could Tesco achieve its goal? A wise plan for this aim, could be: 1. Training the staff in terms of customer service or creativity at work;
2. Market development; 3. Merging to local leading businesses in host countries.
In acting phase first of all, Tescos H/R department of each brunch has to manage appropriate training courses to motivate and nourish its
staff by giving them knowledge and convenience. Secondly, by entering new markets like Dubai, Oman, South America, Japan and Central Asia.
Thirdly by probing the most important and dominant retailers in these countries and then by merging under the name of those companies or
by buying majority of their shares.
Learning from this problem, Tesco should make a long term strategy to overcome Walmart which is the first wealthy international retailer
worldwide. It should collect several ideas and then study them to gain an innovative advantage for entire business.

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Persuading the stakeholders of Tesco in terms of benefits of a

creative and innovative management idea with the
production of an appropriate rationale
The Wright brothers, Orville (August 19, 1871 January 30, 1948) and Wilbur (April 16, 1867 May 30, 1912), were two American brothers,
inventors, and aviation pioneers who were credited with inventing and building the world's first successful airplane and making the first
controlled, powered and sustained heavier-than-air human flight, on December 17, 1903 (BBC, 1999).
In the two years afterward, the brothers developed their flying machine into the first practical fixed-wing aircraft. Although not the first to
build and fly experimental aircraft, the Wright brothers were the first to invent aircraft controls that made fixed-wing powered flight possible.
The brothers' fundamental breakthrough was their invention of three-axis control, which enabled the pilot to steer the aircraft effectively and
to maintain its equilibrium (Padfield & Lawrence, 2003). The Wright brothers' status as inventors of the airplane secured them to be subjected
to counter-claims by various parties. Thus it was a valuable moment for them to set their own company to innovatively develop their
invention.
Finally, The Wright Company was incorporated on November 22, 1909. The brothers sold their patents to the company for $100,000 and also
received one-third of the shares in a million dollar stock issue and a 10 percent royalty on every airplane sold (Every first, 2012).
In fact, the motivation for innovation rose from a moment when In 1878 their father, who travelled often as a bishop in the Church of the
United Brethren in Christ, brought home a toy "helicopter" for his two younger sons. The device was based on an invention of French
aeronautical pioneer Alphonse Pnaud. Made of paper, bamboo and cork with a rubber band to twirl its rotor, it was about a foot long. Wilbur
and Orville played with it until it broke, and then built their own. Thus, in later years, they pointed to their experience with the toy as the initial
spark of their interest in flying (Wright & Wright, 1922).

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Evaluation of the communication of a creative and innovative

management idea to stakeholders of Tesco
The basic components of collaborative idea management is support for users to submit new ideas, comment and develop already existing ones
as well as support for managers to capture, track and further develop promising ideas. Finally Tesco needs support to administrate, measure
and follow-up. The following scheme that is designed by InnovationManagement.se (2013) can help Tesco to communicate its innovative and
creative ideas to its stakeholders:
1. To invite everyone to engage the entire organization. Several studies show that employees are the number one source of innovative
ideas.
2. To use the principle of self-organization to handle complexity and to let innovation needs be defined bottom-up using the IT tool to
match idea supply and demand.
3. To embrace collaboration to leverage expertise and a diversity of perspectives. Openness will enable users from different parts of the
organization to improve and comment on ideas.
4. To secure feedback and recognition for a sustainable initiative making sure idea owners can see everything what is happening to their
ideas. Reward good ideas.
5. To integrate idea management into its overall collaboration effort. Benefits are a connected workflow, unified user interface and
simplified support.

This scheme is made up of the basic orientation of Tesco toward innovation, as well as supports for creativity and innovation through the
organization. The orientation toward innovation must come, primarily, from the highest levels of management in Tesco, but lover levels can
also be important in communicating and interpreting that vision. On the basis of existing information, as Ambile (1996) suggested, it appears
that the most important elements of the communicating an creative and innovative idea in an organization are: a value placed on creativity
and innovation in general, an orientation toward risk (versus an orientation toward maintaining the status quo), a sense of pride in the

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organizations members and enthusiasm about what they are capable of doing, and an offensive strategy of taking the lead toward the future
(versus a defensive strategy of simply wanting to protect the organizations past position).
In terms of the value, Tescos vision for the future is to be the most highly valued business in the world. Valued not only by its customers, but
also by the communities it serves, its loyal and committed staff and its shareholders. Tesco is and it will remain a growth company. It will be a
modern and innovative company and it will win locally by applying its skills globally (Tesco PLC, 2012).
The primary organization-wide supports for innovation appear to be mechanisms for developing new ideas; open, active communication of
information and ideas; reward and recognition for creative work; and fair evaluation of work, including work that might be perceived as a
failure (Amabile, 1996). As Paul Wilkinson, the innovative ambassador of Tesco, recently said, we spend a lot of time applying new
technology in-store so that we can improve the shopping experience for customers or make lives easier for colleagues around the business. A
recent example was the introduction of mobile apps in-store, which enables our colleagues to use their phone cameras to scan products and
find out further information, such as stock levels, which means they can be even more helpful to customers (Tesco, 2013).
Wilkinson also added that good communication and teamwork are essential if we want to devise creative solutions. Its important to gather
ideas from people around the business, share our research with them and, most importantly, listen to our customers. My proudest moment at
Tesco so far came at one of our regular events, when my team won the Tesco Hackathon. The new app we created, Tesco Discover , was then
built and made available for customers to download. I think theres been a shift in the way people think about innovation. At Tesco, were
really open to new ideas and more creative than ever, but thats been driven by changing customer habits and the fact that people are much
more comfortable with technology its just a natural part of everyones daily lives. In my team, I find that exciting because it gives us much
more scope (Tesco, 2013).
Generally speaking, it seems that Tesco is well supporting the innovation ideas by providing variety of fashionable easy-to-access technologies
through making an open and active communication of information among its internal, connected and external stakeholders.

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Key goals for implementation of a creative and innovative

management idea using feedback from stakeholders
Regarding to most of its stakeholders expectation, Tesco should manage the innovation process for the Personalisation Programme, from
information collection, collating all internal or external insight to information processing, selecting whats relevant analysis and narrative and
providing value added insight across the Personalisation programme. That will motivate ideas generation for the Tescos occasional innovation
event through following key goals:
To stay close to the customer through market scanning, networking and by building relationships with key internal and external thought
leaders
To support its managers scan developments and future trends in personalisation within the market
To work with the other Personalisation work streams to ensure they are aware and fully consider the latest trends and activities in
personalisation within the market
To coordinate the collection of external and internal insight, engaging with stakeholders such as the dotcom Innovation team, Tesco and
dunnhumby insight, research and R&D teams to collate all relevant external and internal insight required for the innovation process
To use stakeholders analytical skills and forward thinking to identify and select potential innovations in all areas of personalisation to bring
into the overall programme roadmap
To support its managers to coordinate the Quarterly Innovation Events to ensure they deliver a new priority products list and a refreshed
Products roadmap that will inform the future direction and focus of the Personalisation Programme.
To share learning across the Tesco Group to ensure rapid learning, up skilling and understanding
To understand the fast changing external environment in this area through external networking
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Assessment of the barriers to the implementation of a

creative and innovative management idea in Tesco
Common Barriers
Immovable Forces

Judgment
Playing by the Rules
Hard Work

No process
Misunderstanding

Causes
Resistance to new ideas and processes happens because its human nature to become uncomfortable
when confronting potential change agents. Management and leadership tend to resist because creativity
often means embracing uncertainty and may pose possible difficulties in measuring returns on
investment.
Fear of a new idea is often manifested as criticism and sometimes harsh judgment. People mock and
ridicule what they dont understand.
Policies and procedures, inflexible and rigid organizational structures, traditions, and a culture of playing
by the rules, are keeping employees from participating, stifling any innovative or creative processes.
Bringing ideas from development to implementation often takes a lot of effort or time to produce results.
Most organizations and employees dont want to devote the necessary time or effort to complete a
creative project.
Employees have ideas and want to share them but all they see is a dusty suggestion box. No other
channels to input ideas are known by members to exist.
Within an organization, creativity can be misunderstood by employees who are not creative in their work
processes. Sometimes management will have little knowledge of the type of work it takes to produce
creative projects

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Explanation of a plan of a strategy to overcome identified

barriers to the implementation of a creative and innovative
management idea in Tesco
Defined Barriers

Examples and Strategies

Immovable Forces

Judgment

Playing by the Rules

Example: Old habits, beliefs, and expectations cloud openness to new ideas and override creative
and innovative initiatives.
Strategy: Tesco should share stories about creativity and innovation in a workplace setting through
all available channels to put creativity into context and to disperse predetermined notions about
creativity and innovation. It also can build an Idea Library to provide resources that make creativity
more familiar identifying and communicating the benefits of adopting new ideas, for both the
organization as well as for the employees, to help gain acceptance.
Example: Employees who have ideas are reluctant to share because they worry that no one will like
the idea. They are afraid of ridicule or the implications of possible failure.
Strategy: Tesco should adopt a no-mockery ideology within the organization; Invite and inspire all
employees, from all levels and departments, to become involved with innovative enterprises;
Communicate failure and slipups as a necessary stepping stone to new approaches, products, and
services.
Example: A despotic environment has a tendency to force employees to conform to accepted
patterns, rules, and inherent limitations of the status quo. This hampers creative thinking and new
ideas.
Strategy: Although some rules are necessary, many can subdue innovation and ideas. Tesco should
consider if some of the rules can be changed, hassle-free, updated, or eliminated to make

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allowances for the idea process to flourish.

Hard Work

No process

Misunderstanding

Example: Pessimism takes hold even before beginning a project or a project is eliminated before it
even gets up and running. Lack of faith in the possible payoffs of a creative process can easily stymie
or eliminate what might have been the next big idea.
Strategy: Going afar the known, routine answers and allowing some time to discover more than one
answer takes effort. Tesco should inspire employees by making it a competition or breaking larger
initiatives into smaller, more controllable pieces.
Example: Past organizational experience shows employees that ideas put in the suggestion box
disappear into a black hole so employees dont bother to submit anything. They may feel there is no
reason to get involved.
Strategy: Tesco can make it easy for its employees to input their ideas through a variety of different
channels and technologies to encourage feedbacks; use leadership acknowledge and celebrate the
value of ideas even if they cant be operated; if an idea works, develop it.
Example: An erroneous impression of what is creative can result in workplace conflicts that hamper
productivity and creativity, or even create an unpleasant or unrealistic work environment for some
employees.
Strategy: Tesco should supply opportunities for all employees to use their creative side; provide a
milieu for ideas and innovation within the organization with creative examples; offer training
opportunities for employees to become more contented with their creative side.

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Evaluation of the communication of a strategy plan for

overcoming barriers to relevant stakeholders in Tesco
The Tesco annual business plan is based on a Steering Wheel of business drivers (segments), including customer, finance, people and
operations. In addition, a fifth broad strategic area for future growth relating to community and environment was introduced in 2006
following the launch of the first Tesco Annual Community Plan. This change to the business model, with the inclusion of the environment as
an important business driver, was a significant step in building Tescos commitment to community, corporate responsibility and sustainability.
It is an increasingly important area of business performance and has helped place these issues clearly at the heart of the business and at the
forefront of peoples minds. The change has also resulted in increased resources, energy, focus and vigour being directed towards being a
good neighbour and responsible, fair and honest in the way that business is done, especially in relation to the environmental impact of
Tescos activities. Changing customer demands, combined with increased strategic prioritisation of environ-mental and sustainability issues,
increased resources, partnerships and investment have driven a whole range of innovations at Tesco. (Please refer to appendix 1).
Tesco has organised customer question times at stores to create an informal way of talking to customers and understanding their views. Last
year Tesco held 115 customer question times where it met nearly 9,000 customers. Thus, talking to customers and finding out what they
expect from Tesco is vital to the continued growth of the business (Tesco PLC, 2013).
The retailer set up an open innovation jam, calling it the TJAM and invited interested customers to a days worth of brainstorming. Around 70
turned up and they were divided into groups headed up by a Tesco.com staff member. The jam style of open innovation can deliver a
successful outcome when the right partners and participants are selected so that they can work together creatively and dynamically.
Participants can include consumers, a companys own staff members and suppliers. A consequence of this variety of backgrounds is that a jam
will benefit from the diversity of viewpoints of those taking part. In addition, an important member of the jam is the facilitator who is
fundamental to creating a truly collaborative environment that is status free (Idea Connection, 2013).
Tesco shares its stories of any development in its website, under a subject called Our stories to keep its stakeholders aware of every change.

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Conclusion
Since the first time when Jack Cohen built up a stall and earned 1 out of 4 in its first day, to establishment of Tesco plc. by merging to a tea
firm, then to development of the product to modern food industries, and to creating green labels for check out, to customers saving money
tags, then to computerising the checkout systems, to utilising new technologies, social networks and several apps, Tesco has been leading the
ideas toward creativity and innovation. Tesco innovatively raised its trivial asset of 30 to a bulky amount of 72.0 billion at the moment.
Change has been the most consistent element of Tescos business and consistency on innovation and proper decision making has been the
most rational reason for its success and being the third worldwide. By the use of updated information and technology, Tesco has been
incrementally adding credit to its capital and even its reputation.
Amabile (1996) stated that Creativity as a production of useful idea if be implemented properly produces the Innovation. She said if the three
components of creativity i.e. Expertise, Creativity skills and Task motivation foster by work environment then along with the three factors of
innovation i.e. Resources, Management practices and Organizational motivation, can lead to entrepreneurship. She suggested that by giving
the workforces a substantial freedom, positive challenge and project supervision, the organisation would be innovatively successful.
Tesco also by the use of Democratic style and transformational approach of leadership has given the wide opportunity to its staff to be
creative and innovative while to make sure about the business safety and processes, supervisors are assigned within the stores and also
awards and promotion is provided for winners of interpersonal activity competition.
Eventually, with regard to the urgent need of change for Tesco in the face of the stronger retailer, IDEAL model of change that stands for
initiating, Diagnosing, establishing, acting and Learning, it could be inferred that Tesco should respond to the changing market, by training its
staff, entering new markets and merging to the local entrepreneur retailers.
Looking at Wright brothers story of creative and innovative idea can make Tescos stakeholders to be convinced of the benefits of an innovative
idea. Tesco is well supporting the innovation ideas by providing variety of fashionable easy-to-access technologies through making an open
and active communication of information among its internal, connected and external stakeholders.

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Bibliography
Amabile, T. M. (1996) Creativity and Innovation in Organizatios. Harvard: Harvard Business School.
Clarke, P. (2012) Blog. [Online].
Available from: <http://www.tescoplc.com/talkingshop/index.asp?blogid=71> [Accessed 18 November 2012].
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Self-evaluation
This course was an aspirational experience to me as it equipped me with an intuition towards understanding of how to create, plan and
implement an innovative project in the business arena. I missed some of the classes due to several problems, which I wish I did not. I really
enjoyed every seconds of the course because of the tutors fashionable teaching tactics and his dominance on the subjects. I did not benefit
from the time I was free to discuss the topic with the tutor or I could not put the matters under the scrutiny during the course. Overall, for the
assignment, I poured every potency I had into it and I analysed the Tescos need of innovative ideas precisely. Nevertheless, I found out that I
need to be academically trained more to have profound point of view in this field.
Due to some hardships, I didnt have enough time to work on the second part of the assignment appropriately.
I must thank god helping me to complete this course and also professor Gupta for his guidance and support.

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