Transition at TESCO

Transition at TESCO

            TESCO, as a company, is facing massive changes. The organization is supposed to absorb a new CEO; thus, the company’s leadership will change. This particular document is drafted to highlight a detailed analysis focused on all external and internal environments. In light of this analysis, all current challenges facing TESCO in its environment are discussed. Besides, the document brings out different management theories focused on giving essential ways to manage change resistance. In light of these theories, TESCO can quickly adapt through the process of transition. This particular paper discusses different styles of leadership put in practice and any specific style that best suits TESCO’s new CEO, Dave Lewis.

Challenges Facing TESCO

The most common threat facing TESCO comes in from discounted stores like Lidl and Aldi. Lidl and Aldi have a massive customer appreciation that led to rapid market growth. This growth in the market occurred at the expense of TESCO’s shares in the exchange. This issue of losing the market share led to multiple questions on TESCO’s pricing strategies. The shift in market share proved market price sensitivity. Moreover, sensitivity in price has forced TESCO to reduce its costs to fit in the market. TESCO’s profits have dropped from one billion pounds to one hundred million pounds..

Furthermore, TESCO is faced with another challenge of strategic positioning, referred to as SWOT analysis. The organization has wholly failed to establish itself in the customer’s minds. For example, whenever a customer wants to visit a discount shop, they will move to Lidl, Aldi, and Pound land. The organization should clearly state what it is offering its customers and where it stands. In addition to these challenges, facing TESCO because of their internal strategy, some factors related to external environments do exist. The organization is not very clear about their brand.

Moreover, TESCO is under a transition process, and its new Chief Executive Officer doesn’t come from the company. His popularity and acceptability will receive less attraction as compared to a CEO who was bred and born within TESCO. The transition is a whole new challenge to the organization when it comes to implementing the plan and address it in a way that all workers will understand.

Managing Resistance to Change

            Beranek, Smith, and Paton (2008) emphasized three key areas that need proper understanding before the change implementation process.  The three processes include; the organization’s current state, future state admired by the organization, and guiding the process from the initial state to the desired state.

Resistance to Change Management

According to Firoozmand (2014), a leader should have the ability to understand that not everyone will stand with them. The author argues that any leader must have a clear understanding that any form of uncertainty leads to unease or fear. Leaders should make sure their message bears clarity and present concrete details. Training should take place only when trainees understand the importance of acquiring training skills and their effectiveness.

Dave Lewis is crowned the new chief executive officer where all CEOs came from the organization’s hierarchy. Lewis needs to create a sense of acceptability among the team and later move forward. Effective communication bears importance and acts as the primary contributor for any change to occur. An analysis carried out at TESCO showed that they have less support and more arguments. Dave needs to prepare thoroughly to have clear thoughts concerning the change in leadership. Dave should have a well-informed strategy that answers any question asked and provide the necessary assistance to all employees. Dave needs to access things that need implementation, why they need application, and how they will get the implementation. A good lead accesses different levels focused on motivation between employees. The CEO can formulate action plans and strategies that involve proper communication needed for change. Dave should take part in any changes presented.

Questions

1. The necessary contexts associated with the proper functioning of an organization include; self-context, alliance context, team context, one to one setting, and organizational context.
2. The three approaches to leadership include; autocratic or authoritarian, laissez-fare style, and democratic.
3. Motivational strategies should incorporate training sessions that guarantee effective skill acquisition among all employees.
4. Leaders should make sure their message bears clarity and present concrete details. Communication should carry meaning and great importance to all the employees,
5. Effective organizational change is determined through the following strategies; proper utilizing of human-based resources, focus on growth and education, remembering all customers, work-based on the quality products or services, and effective utilization of technology.
6. In transactional leadership, a leader focuses on the organization, supervision, and performance of the group. In contrast, in transformational leadership, the leader works based on the engagement and motivation of employees towards a specific vision.
7. The challenges that might face a manager include; cash flow challenges, competition response, and deciding on abandoning a strategy.
8. The retail industry encompasses all companies and individuals that engage in selling finished products to end-users who are customers.
9. Building the firm relies on assessing competition in the industry, determining primary factors leading to success, and understand strategies associated with a market leader.
10. Competition is brought about where discount shops throw in better offers and attract customers who abandon TESCO.
11. Critical success factors include; strategic focus, people involved, the operations, marketing tools, and capital/finance.
12. The database adds value to TESCO since it can analyze and collect data. They can also know their stand concerning their suppliers, competitors, and customers.
13. The reality gives TESCO a potential competitive advantage since it can effectively minimize stock inventory amounts and offer a simple inventory that does not fit in a store, thus increasing consequent levels of convenience. The Facebook application will enable them to promote their perfect products that attract more customers, whereby a client will feel satisfied and heard. Facebook and augmented reality will help them collect essential data used in improving the approach to clientele.
14. International strategy is how firms make choices on the acquisition and utilization of scarce resources to meet global-based objectives. The main goal is to make use of limited resources. This particular strategy is vital to Tesco since it will improve the company’s effectiveness based on their services and products.
15. Tesco could foster entrepreneurship by hiring aspiring entrepreneurs who are attracted to any startup environment. The employees should feel like partners too.
16. An international marketing mix involves the use of various instruments in marketing to attain positive finance-based results by any company that operates on global or international markets. The four tools include price, product, promotion, and place.

References