Strategic Resource Analysis of Tesco Plc: Strategic Marketing Level 6 Assessment Answer
STRATEGIC RESOURCE MANAGEMENT
Business resources are concerned with different activities of entities, which require a brief understanding of its functions and execution of activities. The strategic resource management introduces planning, measurement, management, supervision and assessment of business functions. In this assignment, the strategic resource analysis is heightened with the context of human resource management, management of physical resources, marketing activities and information systems. The understanding and observing functions of these functions and activities of business, case evaluation of Tesco Plc have been taken for the particular study.
Activity 1: Human Resource Management (HRM)
1.1 Objectives for chosen organisation and an explanation of how HRM contributes to their achievement
The mission of Tesco Plc is “to be champion for customers” which is their primary business objective. The company aims to provide the services, which will improve the quality of life of consumers. This requires a blend of good quality of services and a workforce of competent employees supported by standard HRM training (Tescoplc.com 2019).
The company wants to take care of its organisational culture by trusting and respecting everyone. The HRM policy of Tesco Plc maintains this by promoting a good working condition within the company and by introducing employee engagement strategies. The HRM department looks after the needs of motivation for the employees by provisioning reward and recognition for their hard work. Teamwork is also recognised by the Tesco Plc where opportunities the collaborative support and development paves the way for career growth (Tescoplc.com 2019).
The company also wants to increase its value by returning to the community with the help of their employees, communities and the customers. The CSR activities undertaken by the HRM department of Tesco Plc motivates the employees to work harder and serve the greater good for the community. This also makes the employees feel more connected to the vision of the organisation.
1.2 Critical Evaluation of the role of HRM in your chosen organization
It is essential for large as well as smaller business enterprises to make the most of the human capital in order to fulfil tier business goals. The HRM provides the business with the ability to focus the skills, motivation and strength of the people in order to succeed in their venture. Therefore, an organisation like Tesco Plc would have a well-structured HRM function to carry out the needs of the business.
Recruitment and Selection is one of the most important aspects of the HRM function as per * where the potential employees are chosen from the talent pool to become a part of the business enterprise. It is important or the HR managers in Tesco Plc to carefully captivate the attention of potential candidates by advertising their vacancy in different platforms (Cunneen, 2008). The next important aspect of the HR managers is to screen the applications of candidates and decide which of them has the potential to be a part of the organisation. Lastly, the candidates need to be finalised after the process of rigors assessment, which will determine whether the candidate is fir for working in the retail/supermarket business of Tesco Plc.
Good Working Conditions needs to be maintained in every organisation, which has to be represented, by the HRM practices. The HR managers in Tesco Plc make sure that the proper working conditions are provided to the employees in order to get the maximum productivity. Good working conditions provide motivation to the employees, which the management of understand properly and they try to provide a collaborative, team-spirited working environment (Jaakkola and Hallin, 2018). This motivation can also be facilitated by providing the employees with financial as well as non-financial benefits like training and development opportunities, which would, in turn, improve job satisfaction.
Managing Employee Relations is also another important aspect followed by the HR department of Tesco Plc. In order to maintain good employee relationships, the Tesco Plc has a well-structured divisional hierarchy where the colleagues maintain a cordial relationship with one another. The ability of the Hr managers to be able to influence the behaviour and work output is important to maintain good employee relations. Communication is key to attain this objective, so the HR policy in Tesco Plc promotes clear communications, which uplift the organisation's culture.
Figure 1: Role of HRM
(Source: Christensen et al. 2016)
2.1 Evaluation of the recruitment and retention strategies of your chosen organization
Tesco Plc is a large multinational business enterprise, which deals with providing first-hand customer interaction. This would require recruitment from both internal and external channels. Internal recruitment provides an opportunity for Tesco Plc to plan the existing talent and retain the output within the organisation. This might motivate the employee after they have been provided with a better opportunity. External recruitment requires a lot more time and effort to fill the vacant position (Torrington, Taylor and Hall, 2007). The external recruitment in Tesco Plc done through the website portal where the candidates can search for jobs with Stores and distribution roles, office roles etc. according to the candidate's preference. The job description along with the roles and responsibilities are explained to the candidates before they apply. It is also a norm within Tesco Plc where candidates directly approach the store managers for the store-based jobs. In order to attract talent pool from the market, Tesco Plc released the advertisement of their vacancy in their own website for both internal and external candidates to be notified. The in-store vacancy boards are also posted with advertisements for interested candidates. The newspapers advertisements are also posted for appointing candidates (Boon et al. 2018). The applications of the external candidate are screened to see if they have the required education and skills to be considered for the post being offered. Line managers assess the internal candidates where the team is working, and problem-solving exercises are given to the existing employees for selection. An interview session is arranged where the internal, as well as external candidates, can speak to the assessors personally to understand their attributes better (Reiche, Harzing and Tenzer, 2018).
2.2. Critical assessment of the techniques used to develop employees in the organization
Authors * stated that the employee development activities provide the workforce with the opportunity to enhance the skills and upgrade the knowledge for providing better productivity. Training and development programmes would be arranged for growth opportunities and helping the employees delivers the best performance. Tesco Plc provides three different programmes like graduate, apprenticeship and internship (Tescoplc.com 2019). The apprenticeships programs offer roles in commercial, financial, scientific, technological and apparels. This program allows the apprentice to develop the skills, knowledge and expertise for the trade. Tesco plc provides opportunities like office programmes, which help the candidates, develop their career paths. The flexible working culture provides the participants with the ability to manage their lifestyle and gain perspectives (Armstrong and Baron, 2010). The company also has a graduate programme, which provides the candidates to learn in depth about the business and work style. The candidates would be provided with the in-store experience and learn how to operate. The placement system in the job would be rotational and provide a wide knowledge experience. The internship program introduced by the company is also effective in helping aspiring retail enthusiasts to work in a vibrant culture and obtain business exposure (Bailey et al. 2018).
2.3 Evaluation of the contribution these techniques make to ensuring the engagement of employees
In the internship programme offered by Tesco Plc, the candidates will be paid a competitive salary of £18,000 deepening on the performance. There is also four holidays pro rata including the bank holidays for the interns for having work-life balance. The company takes a flexible working condition to cultivate the talent. Tesco Plc also provides formal as well as informal meeting rooms, hot desk services, outdoor experience and entertainment area to help the employees enjoy their work. The company also provides devices like the laptop to ensure that the work can be done remotely as a support of the flexibility (Tescoplc.com 2019).
In the case of the Graduate programme, the candidates are offered £28,000 along with eligibility for bonus payment measured by performance. The graduates are offered 20 holidays, discounted entertainment gifts cards, entrance to amusement parks after the employees complete six months in Tesco Plc. Tesco Plc offers a Retirement Savings Plan, which helps them save for retirement up to 7.5% of their salary. The company encourages a self-learning development to help the candidates develop their competency (Tescoplc.com 2019).
In the case of the Apprenticeship the salary, offered by Tesco Plc is £20,000 along with bonus scheme. Similar holiday structure and the perks offered is same as the graduate programme to help employees have work-life balance.
2.4 Systematic analysis of the effective strategies an HRM department must use to support the achievement of organisational strategy.
The business enterprise benefits effectively if the alignment between the strategic planning of the organization and the HR strategies is similar. The administrative functions have to be surpassed by the HR managers in order to support the organisation in planning and implementing strategies. It is essential to increase the credibility of the HR department in order to increase the competency as a strategic role performer (Caldwell, 2018). The HR managers in Tesco Plc adequately meet the staffing needs of the enterprise with competent employees. The HR managers post the job description with the help of technical assistance through internal and external platforms. Maintaining an appropriate corporate culture within a large business enterprise is essential for success. The HR manager in Tesco Plc has provided a supportive, engaging, standout culture, which is attractive to the employee. The additional benefits and compensation structure is also attractive in maintaining a competitive salary and work-life balance (Smith, 2011). The payments and benefits in Tesco Plc are mentioned in the previous section, which is effectively managed by the HR department and keeps the employees motivated to meet the organisational demands. The learning and training opportunities provided with the employees in Tesco Plc through their different programmes in different areas cultivate a wide range of talent and employee engagement strategies. The employee-centric HRM policy of Tesco Plc is evident from the success stories and career advancements in an equitable performance management system (Meyer and Xin, 2018).
1.3 Planning human resource requirements
There are six known steps of human resource planning which starts by conducting the analysis of the organisational objectives in terms of sales, finance, marketing and production. The second step is to assess the present human resource inventory with respect to competency, performance, capacity and current number. The Hr managers need to forecast the supply and demand of the human resource for the future in order to maintain the adequacy of staffing. The manpower gaps need to be identified by the HR managers to provide more effective organisational performance (Warfield, 2016). The HR planning also includes the formulation of an action plan for human resource requirements in order to mitigate deficit or surplus. This includes managing the recruitment, training, transfer, termination, voluntary retirement assistance and redeployment on behalf of the organisation. The last step of human resource planning is to monitor, control and assess feedback to ensure that the workforce is appropriately supported (Bell, Bryman and Harley, 2018). Tesco Plc provides its employees with the well-structured working opportunity including part-time jobs, job-sharing, having a fixed shift pattern, working on a set number of days a week and working from home services.
Activity 2: Management of physical resources
3.1 Identify the chosen organisation’s objectives and shows the physical resources required to ensure achievement of each of these objectives. Explain the resource management implications of the information
In business enterprises, the tangible resources, which are owned like office equipment, manufacturing equipment and properties, are known as the physical resources of the company. In addition to this, the information technology, as well as its associated servers, networks, computers and equipment, also fall under the physical resources. Depending on the nature of the industry, the physical resources can be crucial to the business output and requires significant investment to maintain. In business, the management of physical resources efficiently is crucial to success.
Figure 2: Business physical resources
(Source: Warfield, A. K. 2016).
|Tesco Plc Objectives||Physical Resources Required||Contribution|
|Understanding people to meet market demand||The transparency of the communication system between the employees of Tesco and the consumers make it easier to provide better services. The technology and learning opportunities improve competency (Tescoplc.com 2019).|
|Promote collaborative work culture to maximise organisational efficiency||Sharing the knowledge and experience among the employees promote the opportunity to support and develop consumer base.|
|Make a difference to communities||Promotion of better lifestyle, improving community help, providing assistance in the global initiative (Tescoplc.com 2019)|
3.2 and 3.3 Critically evaluate the role of physical resource management within the organisation and systematically appraise the processes that are used to plan the physical requirements of the organisation.
Smith (2011) has stated that physical resource management increases business stability an strength in the market, as the physical resources are prioritised elements to generate income from the market. In addition to that, the physical resources provide raw materials and resources that are finally processed to quality products in the market. Warfield (2016) added that physical materials quality matters in concern to providing quality products to consumers in the marketplace. In addition to that, the physical resource management also helps to evaluate the investment and scope of controlling and inflow and cash outflow of business. As per Bell, Bryman and Harley (2018), the emergence of physical resource information helps management of the company to ensure different cost and investment structure of the business. With the development of physical resources, the business entities such as Tesco Plc are able to enhance its function and business operations such as human resources, marketing tools and plant and machinery. The process management of physical resources could be included through three basic elements, the process of recruitment selecting which covers human resource requirements of the business entities. The market research data, research development of industry and industry credibility meets the research resources for developing product and services (Meyer and Xin, 2018). Engagement of coding IT infrastructure, networking and system assessment meet the requirement of hardware and software requirement of the business. In the process, the building, properties and other business resources could be met through the investment of funds which could be raised from a source of fiancés such as loans and advances.
Activity 3: Marketing
The specific task introduces understanding the role of marketing in supporting business strategy to meet organisational objectives. With the development of task report, the marketing activities, marketing operations and marketing process of Tesco Plc have been highlighted.
4.1 Investigate how marketing activities contribute to the achievement of organisational objectives in the organisation
Tesco Plc is focusing on maximizing its sales and enhancing its profit margin in the near future. This is one of the highly prioritised objectives of the company. In addition to that the management of the company is in brief discussion on setting the product prices to bring cheap and high-quality products in front of consumers (Doyle and Stern, 2006). As per the assessment, the company is focused on increasing customer shopping experience with more reduced price products availed in the market. In addition to that Tesco Plc, another objective defines to engage online e-commerce focus to provide products and services through online sources to the consumers in the market. E-commerce is one of the strategic marketing activities which are engaged and used by Tesco Plc in the market (Smart Insights. 2019). With the development of E-commerce strategy, the company is able to reach out to different customers to understand the needs and requirements of customers. Thus, E-commerce helps the business entity to understand the demand of customer and willing to pay the price, which could help management to set the decent low price of its product and services. In addition to that, marketing mix and promotional mix analysis of business entities help to analyse product information, distribution and promotional planning for product and services. In case of Tesco usage of social media promotions, consumer-based pricing strategy and multichannel marketing distributional strategy help to increase sales of the company (Smart Insights. 2019).
4.2 Critically evaluates marketing operations in that organization
The brand promotion through humor assessment is one of the key marketing operations of Tesco, through which it has been reinventing the brand and increase brand loyalty and brand positioning in the market. In another activity, the business entity planning to increase more product options for consumers in the market. The Tesco Plc was increasing its product line through re-evaluating its marketing mix activities, in which rebranding of products fish fruit, pork and beef are reintroduced in the market. Chernev, (2018) stated that marketing activities are executed for cost-conscious consumers, who might miss the recent offerings from the firm. The company has introduced digital marketing as it’s another marketing operation, in which approximately £110 million is invested by Tesco in the process of digital marketing in concern to developing customer reach in an effective manner through the use of search engine optimization, e-commerce, social media marketing, online promotions and mobile applications. These marketing tools are assisted in increasing customer experience for the company in the marketplace. Jaworski, (2018) added that In the course of marketing operations, the range in product packaging is also introduced, which helps the company to redesign its product looks to increase customer's interests and redirect their reparative purchase behavior in the market.
Figure 3: Marketing operations
(Source: Doyle and Stern, 2006)
4.3 Appraises the processes that the organisation uses to develop its markets
The goals and objectives help to provide clear vision and mission based on which the management plans for steps and strategies to be taken place. In the case of Tesco, the company includes different goals and objectives every year in concern to make constant development and stay competitive in the marketplace (Kotler et al. 2009). In the following stage, with the use of SWOT and PEST analysis, the business environment is evaluated and analyzed. In the specific step of analyzing the current situation, the management of entities observes factors and drivers of the market that might impact on the performance of its product and services. The information helps Tesco Plc to strategies its market planning and promotional activities based on the current state of UK supermarket retail sector. After the analysis of the market, the market development includes stopping to analyze targeted audience in the market (Abratt and Bendixen, 2018). Tesco introduces its market segmentation, targeting and positioning based on its different product categories in the United Kingdom, which hells management to address different people's needs through its product and services. In the next step of developing a unique selling point of product and services, in which management introduces a specific feature which could compete for the alternative products in the market. The market development than moves to selection proves of promotional and advertising channels which are selected minutely to reach out customers in the market and to showcase product features which meet their needs and demand (Hunt, 2018). In the process of marketing, relevant marketing strategies and other tools are developed to push the product and services such as pricing strategies, e-commerce, digital marketing and rebranding strategies that are applied by Tesco Plc. The In the last phase of market development, the constant feedback and tracking are introduced to evaluated changing needs of the customer and based on it the products and services are reinvented and introduce in the market to create consistent growth of company such as Tesco Plc.
The task introduces understanding on the marketing functions, tools and techniques, which is used by Tesco Plc for regenerating its brand position, increasing the performance of its products and developing different tactics to meet its organisational objectives.
Activity 4: Information Systems Management (ISM)
5.1 How ISM contributes to the achievement of the objectives of this organization
The market of UK retail sector has become more competitive after the introduction of online e-commerce and the advancement of technologies. Thus, decision making of management has become more quick and relevant. The engagement of information system management provided the opportunity to gather reliable resources and data online for analysis controlling, visualising and coordinating the business operations and functions for making content development (Burgelman, Christenson and Wheelwright, 2008). In the case of Tesco Plc, the company introduces different objectives to meet future competition, market sales, and revenue and customer satisfaction in the near future. The involvement of information system management evaluates system integration of all possible business departments, which helps the organisation to assess resource requirement and resource management of business functions. Thus, it helps to observe the required resource to generate effective strategic planning of Tesco towards promoting its product to enrich the sales and profit margin ( Computerweekly.com 2019). It has observed that managers in the company evaluate data and information to observe the performance of employees in the organisation. Thus, it reflects different ways to introduce strategic applications to improve their skills so that better production, customer assistance and engagement of organisational development could are made ( Computerweekly.com 2019).
5.2 Critically evaluate the role ISM plays in the organisation
The information system management has significance to boost company sales, revenue as well as performance in the market. Huda et al. (2018) have evaluated that business entities seek for research and strategies to develop its business, increase customer base, generate revenue and sales as well as to enhance the product positioning in a different manner. It has evaluated that in hand information over business operations and performance helps management to save time and monetary investment in analytical tools and techniques, which enhance effective quick and smart decision making. Piercy, (2018) also stated that information system management increase networking and security in concern to employees accessibility in using information and data for their work purposes. The networking of information system to be generated in a manner so that resources required for completion of a specific job could be met effective and relevant manner. According to Pearlson and Saunders, (2009), information system helps to keep employees record provide their performance, payrolls, preparations, data storages, soft copy of confidential documentation and credit card information of the company. It has addressed that controlling and monitoring work flow, work activities, prioritised tasks and project planning are core functions and role of information system management, which are used by managers and employees of the organisation.
5.3 Appraise the processes your chosen organisation uses to plan its IS requirements
Tesco Plc introduces information system for generating information over business performance, operations production functions, administrative activities, market research and developments. The company develop a reliable process of plan information system requirement. In the first phase, planning of information system is introduced in which the objective, requirement and need of information system are initiated for example- information system to analyse and track product sales (Alles et al. 2018). In the next step, the technical presentation of an information system is analysed, in which structuring and network setting of an information system is planned for a specific area of business operations such as HR performance. As per the following step, modelling of an information system is made, in which the process of information input, output a recessing are designed by the organisation. The designing introduces specific information on the network through which information could share easily. The coding and testing is another step in the process of initiating an information system, in which with use of binary codes, applications software's and hardwires every function of information system is designed for proposed business analysis. After that, the testing is initiated to check the proper working of an information system and relevant changes made to cover up any form of loopholes in the networking (Kasemsap, 2018). The end of the process includes implementation, in which employees are trained and informed to use a particular system for business and employment benefits.
The strategic resource management introduces different business functions to elaborate their significance and optimum role and responsibilities towards developing the business performance in the market. In the case of human resource management, the purpose observes towards performance, development and focus of employees of Tesco to introduce strategic impact on the business performances. The management of physical resource such as building, types of machinery, equipment, properties, software's adds value towards the working process of the business. Tesco is introducing its e-commerce business, which elaborates the online infrastructure of Tesco is also a physical resource.