Introduction - Exploring Tesco's Organizational Culture and Innovation
Tesco PLC is a global British retailer of groceries and other goods. Cheshunt, Hertfordshire, England, the United Kingdom serves as its headquarters (Tesco Stores Limited, 2012). Tesco is the world's second-largest retailer by profits, and by revenues, it is the world's third-largest retailer, behind Wal-Mart and Carrefour (Potter, 2011). Tesco has locations across 14 nations in Asia, North America, and Europe. Tesco is also the market leader for groceries in the UK, where it has a market share of close to 30%, the Republic of Ireland, Malaysia, and Thailand, according to this article ("International," 2010).
In 1919, Jack Cohen started Tesco in an East End market stall in London. Cohen inaugurated the first Tesco store in Burnt Oak, North London, in 1929. (Clark, 2008). In the 1960s, supermarkets quickly expanded by offering more merchandise in bigger locations. Tesco was the only food store to make internet shopping viable until the introduction of Tesco.com in 2000. (Walker, 2006). Tesco is now active in 14 different nations worldwide as a result of the company's expansion over the years. Every week, tens of millions of clients are supplied while over 530,000 people are employed. The present essay discusses the factors that enhance the innovative activities of the organization. ICT, leadership, and sustainability are some of the factors that inhibit the innovation outcomes of the organization. The essay also discusses different strategies that can be implemented in Tesco for gathering positive outcomes. ICT and sustainability are one of the factors that depict positive innovative outcomes which have been discussed in the essay. On the other hand, the essay also demonstrates contingency theory and its positive and negative impacts on the innovative outcomes for Tesco.
Adhocracies and bureaucracies and their impact on innovative outcomes are broadly specified in the essay. Adhocracy allows the organization to have positive innovative outcomes (Jen Cao, 2022). However, in maintaining adhocracy in the workplace Tesco needs to have an innovative organizational culture that will allow the organization to align itself with the adhocracy views and perspectives. Human capital is another strategic approach that allows the business to have numerous contributions from the employees and staff. The human capital approach is also discussed in the essay. The collection of data through the use of primary research is also specified in the essay. A primary data collection through workshop activity is illustrated in the essay. Different characteristics and traits that can be developed in a manager are also depicted in the essay.
Innovation is the act or procedure of generating anything new, such as a novel practice, device, technique, and many more. It also denotes to a regeneration or change of a prevailing preparation. A formal occupational construction that is optimum overall is essential for the positive invention philosophy of Tesco. Industries have a inclination to increase layers as they increase, becoming a more motorized and committing administration (Jen Cao, 2022). By founding penetrable business borders that help dissolve the blockades between purposes, product groups, and businesses, high-performing initiatives encourage and support advanced activity. Technology, Complexity, Centralization, and Formality are on the list of variables affecting employee motivation at Tesco. "Any form of organization that crosses regular bureaucratic lines to capture openings, solve issues, and get results" is referred to as an "adhocracy." The adhocracy organizational structure is creative and effective at problem-solving (Jen Cao, 2022).
The characteristic of adhocracy culture in Tesco presents an organic structure, a less formalized behavior, formal education based on specialization, and encouragement of cooperation. These are some of the factors that allow Tesco to illustrate an innovative culture in the organization (Fitzgerald, 2021).
Adhocracies are known for their adaptable, integrative, and innovative behavior, which enables the organization to react quickly to a changing environment. While an adhocracy's usefulness resides in its capacity for adaptability, creativity, and responsiveness with minimal restrictions on how one will attain a final goal, it is also beset by conflicts, ambiguities about power and responsibilities, and a lack of structure and standardization. Standardized processes, official divisions of duties, hierarchies, and impersonal connections are characteristics of bureaucracies (Martela, 2019). A well-established system for recruiting and career advancement, distinct hierarchies, and casual systems that link function holders for information and collaboration are all characteristics of bureaucracies. In establishing an adhocracy culture, Tesco needs to adopt a culture where the employees tend to develop innovative minds in contributing to organizational success. Positive organizational culture is one of the preferences in implementing an adhocracy culture.
ICT and sustainability are other factors that allow the business to adopt an innovative culture in the environment. With sustainability measures, the organization will be able to create processes and operations that may allow the employees and workers to adopt innovations (N’dri et al., 2021). Innovative packaging and products can be used in the enterprise which may enable the organization to inhibit innovative culture (Visvizi et al., 2020). Information and communication technology are other factors that allow the business to implement innovative culture. Implementing ICT and sustainability is one of the strategies that can be used to develop an innovative environment at Tesco (Fernandez-Portillo et al., 2019).
Human capital is another strategic approach that contributes to creating an innovative culture at Tesco. In formulating the human capital approach, the organization needs to focus on the goals and align the employees and workers with the goals. This will allow the organization to create a specific view of the organization among the employees and workers (Winterton and Cafferkey, 2019). The next step in implementing the human capital approach is to focus on the process that contributes directly and indirectly to the success of the organization (Jen Cao, 2022). In identifying the process, the organization can implement innovative ideas thus forming innovative culture in the workplace. The next step is the key performance indicators and the employees and workers who are relevant for the post need to be identified (Cañibano and Potts, 2019). With the following strategic approach, the organization will be able to create an environment of innovative culture. Contingency theory is another strategy that can be adopted in Tesco for creating an innovative culture. According to the contingency hypothesis, the organization's success is influenced by how well its resources, structure, and strategies mesh with the external environment (McAdam et al., 2019). In managing the resources the organization may enact innovative technologies and processes that will allow for innovative perceptions and views of the stakeholders in Tesco. Therefore, it can be stated that each strategy and approach may develop innovative and creative thinking in between the operational process that may allow the business to develop an innovative environment and culture (Jen Cao, 2022). Tailored marketing is another strategy that can be used by Tesco to enhance the organization's innovation outcomes.
To develop a unique advertising and marketing funnel approach, tailored marketing delves deeply into the target audience persona of the brand. As a result, campaigns are improved and have greater interaction, a stronger online presence, and increased brand loyalty. In the customization of the marketing process, the organization can develop different ideas and creativity that may lead to innovative outcomes for the organization (Wichmann et al., 2022). For example, in creating tailored marketing the organization may focus on creating customers' persona. In creating a customer persona the enterprise may focus on technologies that may assist the business in the efficient creation of the persona thus implementing innovative outcomes for the business. However, in implementing the strategies the organization may face positive and negative consequences. In the case of implementing ICT and sustainability, the organization may face operation failure due to inappropriate use of technologies in the organization. The failure of technologies is one of the negative consequences the organization may face. However, there are positive consequences such as increased efficiency of tasks and quality delivery of products and services to the customers.
On the other hand, in developing sustainability in the business the organization may face resistance from the stakeholders which is a negative consequence of the strategy. Furthermore, the successful implementation of sustainability in the business may increase the influence of the organization in the relevant sector. The contingency approach is another strategy that has been mentioned earlier in the essay which may have negative and positive consequences for the organization (Jen Cao, 2022). It allows executives to alter strategy in answer to conditions. Executives can recover their management and choice-creation aptitudes by using a eventuality approach. The contingency strategy gives employees options, which encourages them to develop and donate philosophies to the business. The contingency strategy is complicated. The approach's suggestion is relatively straightforward, but in practice, it becomes more complicated (McAdam et al., 2019). The contingency method is mostly reactive. The management of problems can be challenging at times resulting in negative consequences for Tesco. Buckman lab case is one of the case studies that help in identifying resources that are necessary for knowledge sharing among the employees. The case provides a view through which employees can access global information for developing innovative outcomes in the organization.
Methodology
The primary research consists of a workshop activity that allows for gathering and collecting information from different groups and workshop activities. On the other hand, group presentation is one of the processes that are involved in collecting primary data. The primary data has helped in illustrating and demonstrating authentic and reliable data through which the task has been executed. Primary data on the retail industry and other industries have been collected in the task. Furthermore, group discussion on several questions has been gathered from the respondents which depict the collection of primary data (Mazhar et al., 2021). Real-time data on different questions allows the collection of answers from different views and perspectives of respondents. Case studies and data and evidence of different companies have helped in gathering data and information that helps in gathering proposed solutions for innovative outcomes for a particular organization. The data gathered from the workshop activity has been gathered through the formation of a team a group of three (Mazhar et al., 2021). This has allowed us in gathering different responses from the individual. In gathering primary data from workshop activities role-play has been considered one of the elements in the collection of primary data relevant to the topic.
Managerial implications
The managers in Tesco need to adopt adhocracy styles for managing and handling the employees and workers. Implementing adhocracy styles may help the managers to create and develop an innovative environment that will allow the business to prosper in the relevant market in the long and short terms. Adhocracy results in innovative behavior. This implies that the managers will be able to engage the employees effectively in the operational process of the organization.
Conclusion
Innovative outcomes are one the vital areas for Tesco as they will allow the organization to gain a competitive advantage in the marketplace. It can be concluded that the strategies mentioned in the essay may allow the enterprise to gather positive innovative outcomes in the business. It has also been found that ICT and sustainability are some of the strategies that can be implemented in the business. On the other hand, the strategies may result in positive and negative outcomes for the business which is considered to be one of the serious concerns for the business. Furthermore, other strategies such as human capital and contingency approaches have been illustrated in the essay.
References
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