Introduction

Every company must be capable of effectively anticipating and adapting to make sure that
they maintain a competitive advantage within their marketplace. This is accomplished by a
well-worked business plan to help change through concerning management and leadership
.
The following report provides information about how change should be a constant subject for
the progress and development of a multinational grocery and general merchandise
retailer Tesco. This report is to specifically analyse, appraise and suggest changes to the
management operating method of Tesco and different types of leadership change along with
McKinsey’s 7-S approach for building and maintaining an advantage over its competitors.

Application of McKinsey’s 7-S model to maintain internal, external and

strategic implications of Tesco plc

Invented in the late 1970s, the McKinsey 7-S Framework still helps businesses succeed.
The model which recognizes seven elements and assesses them to be interlinked is
effectively used by Tesco to be successful.
Tesco, which has a strong brand image with quality and worthy goods of great value has
also been rebuilding and providing advanced management of product life process and their
efficient delivery to the customers. Strategy is two-fold, a search for new market
opportunities while limiting the negative impact to existing advantage. An effective strategy
requires matching a company’s internal skills and resources with external risks and
opportunities (Eriksson, Bigi, and Bonera,2020). Tesco constantly innovates and strategizes
expansion which made them one of the largest retailers in the UK.
Tesco thoroughly works on expansion in new areas, preserve format, product mix, and other
service characteristics, and is thus a varied body of business and management. The key
operation of Tesco is about creating service-oriented products. Targeting of creating
appropriate and precise ordering systems improves the availability of products at the right
place and right time. To gain future competitive advantage, the company improved its
structure and functioning by introducing a digital program, the third generation of ERP
solution.
Despite gaining success as one of the largest retailers in the world in terms of revenues,
Tesco faces issues like a decrease in product and service quality, the horsemeat scandal,
and its failure to understand the culture in outside countries (Essays, UK,2018). It is
important to understand the trend and through the 7-S model, the company has progressed
enormously by understanding the competitor from the customers’ point of view as well. Since
Tesco has not only been competing locally but internationally with the other countries’
supermarkets as well, Tesco should understand the system better in the past and present
undertaken strategies.
Tesco operates in 13 countries in Asia and Europe. Most respondents selected “Price” and
“Quality” as a factor that made them choose Tesco over other super-marketing companies.
The increased range of Tesco products has made people price-conscious. Consumers relate
the quality of a product to its price, and through this process, they associate price with
quality to make decision-making easier (Mooney,2019). Along with the increment of
international operations, the former should focus on enhancing business skills and efficient
ways of product management. Political factors like tax rates, instability, and unemployment
can have adverse effects on the operation of Tesco. To debar this, the company needs to
enhance its marketing practices, adequate supermarket tax, and minimize importing
inventories.
Undoubtedly, the most valued asset of an organization is its staff members or human
resources. Human resource management presents itself as a righteous way to secure a
sustainable competitive advantage. HR management must be strategically aligned with the
unceasing perspective the organization means to develop and maintain (Almada and
Borges, 2018). The line managers at Tesco harbors the responsibility of the employees and
their teams and constructing their reports. They provide thorough guidance and information
to the employees about work. The company invokes certain rules for every staff to abide by
and upholds the spirit of teamwork by promoting equality and respect for everyone in the
house.
The management of Tesco adopted a democratic style of leadership also known as the
participant leadership. This means that the management is critically functional in the
appointment of leaders in every particular department to look after management processes.
Tesco assigns leadership roles to deserving and potential beings and arranges meetings for
effective communication. It is found that this style of leadership has a positive influence on
market culture. It has been beneficial to the employees and has eventually facilitated in
company’s growth and profit (Ozcan, Ozturk,2020).
Regarded as the fundamental building block of an organization, shared values are a
collective value system that is pivotal to the organization’s culture and constitutes the
standard norms, attitudes, and beliefs of the company. Customary satisfaction should be the
ultimate goal of any company and Tesco is presently capable of understanding customers
and anticipating as well as responding to their needs and standing up to their expectations.
Although there had been certain drawbacks and failures, Tesco has been able to hold its
ground serving across thousands to communities and supporting a healthier ground of living.

Conclusion

From the above-written report, one can dwell upon the fact that with the expansion and
spreading branches all over the world, Tesco faced multiple issues in business. It has
endured a lot of political, social, and economical hitches. The ideas, recommendation
provided by this report as well as the methods undertaken by the company recently is likely
to contribute to the growth of Tesco. In addition, Tesco should also consider incorporating
new strategies to keep up with other rapidly developing companies. As Tesco offers a varied
range of products and services, upgrading product quality and customer services can help
safeguard this company from a critical situation.

References
Eriksson, T., Bigi, A. and Bonera, M., 2020. Think with me, or think for me? On the future role of
artificial intelligence in marketing strategy formulation. The TQM Journal.
https://www.emerald.com/insight/content/doi/10.1108/TQM-12-2019-0303/full/html

(Essays, UK, 2018). The Introduction of the Tesco Supermarket. Retrieved from
https://www.ukessays.com/essays/business/the-introduction-of-the-tesco-supermarket.php?vref=1

Mooney, S., 2019. An investigation into attitudes of Tesco customers in South Dublin towards private-
label brands (Doctoral dissertation, Dublin Business School).
https://esource.dbs.ie/handle/10788/3676

Almada, L. and Borges, R., 2018. Sustainable competitive advantage needs green human resource
practices: A framework for environmental management. Revista de Administração
Contemporânea, 22, pp.424-442.
https://www.scielo.br/j/rac/a/DZC3hwhSg4jS874vXJVH4PC/abstract/?lang=en

Ozcan, O. and Ozturk, I., 2020. Impact of organizational culture and leadership styles on employee
performance: A research study on the banking industry. Research Journal of Business and
Management, 7(1), pp.45-55. https://dergipark.org.tr/en/pub/rjbm/issue/53477/711837