Supermarkets and Retail Sector in the UK

Task 1 – Chosen Sector: Supermarkets and retail sector

The UK based supermarkets and retail sector has grown comprehensively in the markets as per the change in the tastes and preferences of the customers. Moreover, the sector also realized an increase in the competition in the markets while operating in the different areas with the continuous shifts in the buying patterns and priorities of the customers. The changes in the traits and trends in the customer buying preferences and the government legislative impositions have significantly contributed towards the changes in the industry. According to Scarborough et al. (2020), the total value of UK retail sales in the year 2020 was £403 billion, whereas the retail sales has been analyzed to grow by 2.2% in the year 2020. Again, the improvement6 in the online sales and different technologies has greatly influenced the online purchase behavior of the customers in UK. The average annual growth of online retail sales in the year 2020 was 45% which has been analyzed to make a significant growth in the years (Kanakaratne, Bray and Robson 2020) For businesses in this specific sector, seeking business dissertation help can provide the most valuable insights into navigating these shifts effectively..

The online buying preferences of the customers and the convenience buying options have forced most supermarkets and retailers to maintain a steady online presence. According to a survey result, it was observed that there is a total of 19,099 businesses in the UK retail and supermarket sector with an average employment value of around 1,220,923 people (Ogundijo, Tas and Onarinde 2021). The most promising businesses in the UK retail and supermarket sector are Tesco, Sainsbury, Asda, Aldi and WM Morrison. The businesses hold a larger part of the market share in the UK markets. Certain recent trends have been affecting the purchasing behavior of the customers of the organizations. It has been observed that the increased inclination of the customers towards making online purchases has forced the businesses to develop efficient online presence and e- commerce facilities for addressing the bconvenien6t shopping related needs.

Das, D. and Cirella (2020) stated that the sudden outbreak of the Covid situation around the world has significantly increased online trade and purchase intents of the customers. In this connection, the retail and supermarket sector of UK has taken the initiative of developing a distinguished online presence while ensuring the fulfillment of the convenient shopping related needs and expectations of the people. Again, the increase in the veganism culture in UK has influenced the setup and the products that are proposed by the supermarkets and the retail grocery units in UK. The shift in the tastes and priorities of the customers, based on their increased awareness on sustainable consumption has significantly contributed towards shifts in the business models (Mustonen 2020).

PEST assessment

Task 2 – Chosen Organization: Tesco

Background of the organization

The chosen organization, Tesco, is a British multinational groceries and general merchandise retailer which is headquartered in Welwyn Garden City, England (Tescoplc.com 2021). The organization aims towards offering a varied range of propositions which supported towards ensuring that it remains the third largest retailer in the world by gross revenue. The organization was founded in the year 1919 and since then it has made a dynamic expansion in different countries across Europe while establishing themselves as the market leader for groceries in UK with a market share of 28.4% (Tesco.com 2021). The development and growth of the organization is specifically based on the quality and magnanimity of the propositions that are offered by the business.

The diversified range of propositions that are offered by the organization like books, clothing, electronics, toys, petrol, software, financial services, telecoms and internet services has extensively contributed towards their growth. Velikorosov et al. (2020) opined that the diversified propositions that are offered by a business increases the scope of sales as the products appeal to the different tastes, preferences and priorities of the customers. In this connection, the diversification of the propositions made by the business has significantly contributed towards ensuring their growth and expansion over the years since its establishment.

Organizational strategy

Vision statement

The concerned organization Tesco is focused towards developing a highly valued business with their customer orientation, the community supports and through developing loyal stakeholders and shareholders. The vision of developing a valued business enterprise of the organization is specifically guided through customer oriented approach of operations and retaining efficient terms and relations with the stakeholders. Scarborough et al. (2020) stated that customer oriented operations and the stakeholder friendly operations of an organization contributed towards meeting the success factors. Theref0ore, the concerned organization devised a culture which is focused towards attaining better prospects of emerging as a valued venture.

Mission statement

The mission of the organization is to provide the customers with the best value propositions in affordable prices. Moreover, the organization’s customer orientation is again an important factor that guides the operations of the venture as per the shifting tastes and priorities of the customers. Garrigós and Molina (2020) opined that the success factors of a business is reliant on the customer oriented approach while positioning and distributing the products and services while addressing the specific demand patterns. In this connection, the organization focuses towards winning over the rust and loyalty of the customers through the propositions of valued offerings that would contribute towards the brand image in the markets.

Strategic course

The strategic course that is being considered by the organization is based on addressing the specific demands and priorities of the consumers while positioning a variety of propositions in order to suit the needs and purpose of every customer group. On the other hand, the organization also takes initiatives towards ensuring that the employees and other stakeholders are satisfied with the organizational policies and the workplace culture in order to retain talents. Lastly, the organization is focused towards ensuring the profitability and growth in order to keep the shareholders contended and loyal towards the business growth. Kanakaratne, Bray and Robson (2020) stated that businesses encounter significant concerns while balancing between the needs of the customers, the stakeholders and the shareholders. Therefore, the chosen organization has devised extensive policies and procedures in order to ensure that the stakeholder groups and the shareholders are well contended and loyal towards the growth of the business.

Competitive advantage/ strategic positioning

The customer oriented approach allowed Tesco in positioning offerings as per the changing needs and priorities of the customers. The organization is focused towards maintaining a brand image of delivering valued offerings to the customers and the shareholders. In this connection, the organization has taken the initiative of diversifying their propositions. Hood et al. (2020) stated that the diversified propositions of an organization supports in improving the sales volume while addressing the needs and priorities of a large number of target audience. Therefore, the business’ strategy of devising efficient diversification strategy allowed the business in improving sales. On the other hand, the organization also focused towards maintaining quality standards of their propositions in order to build on the loyalty and faith of their customers towards the brand, which resulted to profitability and growth. Therefore, the continuous profitability and growth of the organization extensively contributed towards ensuring the interests of the shareholders.

Task 3 – Approach to HR

The HR approach and strategy of an organization contributes towards keeping the workforce satisfied while ensuring that the business maintains a continuity of operations. According to Velikorosov et al. (2020), effective HR approaches and interventions supports an organization in keeping the workforce motivated while recruiting talents that would support a business in maintaining innovativeness and creativity. In this connection, the chosen organiza6tion, Tesco, devised extensive approach and strategic interventions in order to manage the HR functions in the business. It was observed that although the organization is customer centric, different policies and HR interventions are implemented with the purpose of influencing the future developments of the organization’s HR capabilities. Non- discriminatory policies and procedures are devised by the organiza6tional managers in order to promote diverse workforce. Moreover, it has been observed that the organization provides Equal Employment opportunity (EEO) to the new candidates while conducting recruitment drives in order to negate elements of biases in the business.

Loon, Otaye‐Ebede and Stewart (2020) opined that biases and personal idiosyncrasies limit the capability of a organizational manager in promoting a diverse workforce with motivated and committed workforce. The lack of motivated and focused employees in an organization curbs the potency of an organization towards performance. According to Fernandez, V. and Gallardo-Gallardo (2020), a diverse workforce in a organization supports in maintaining creativity and innovativeness of an organization while ensuring the growth and sustenance of the same while operating in the international markets. In this connection, the organization devised non- discriminatory recruitment drives and non- biased performance appraisal programs in order to attract and retain the diverse talents in the workforce. Alsuliman and Elrayah (2021) opined that the recruitment and retention of diversified talents allows an organization in ensuing the continuous growth and development. Therefore, the organizational managers devised EEO policies while recruiting and inducting candidates in order to maintain workplace diversity while providing equal treatments and remuneration to the people.

On the other hand, the organization also devised different rewards for keeping the employees motivated and focused. Incentive schemes and bonuses are introduced by the organization along with certain leverages on the health and safety of the employees in order to retain their motivation and commitment towards organizational performance. Ellmer and Reichel (2021) stated that effective rewards and recognition schemes supports an organization in motivating the employees and retaining their commitment and loyalty towards the business. Tesco developed different reward and recognition options in order to ensure that the workforce is motivated and focused while achieving the strategic goals and objectives of the venture. The key areas of change in the organizational operations are directly reliant on the performance of the workforce. Therefore, the chosen organization devised different incentives, bonuses and reward schemes in order to keep the employees focused and motivated towards achieving the organizational goals.

References

Allas, T., Canal, M. and Hunt, V., 2020. Covid-19 in the United Kingdom: Assessing jobs at risk and the impact on people and places. McKinsey and Company Article, 11.

Alsuliman, B.R.A. and Elrayah, M., 2021. The Reasons that affect the implementation of HR analytics among HR professionals. Can. J. Bus. Inf. Stud, 3(2), pp.29-37.

Das, D. and Cirella, G.T., 2020. Corporate social responsibility practices in the United Kingdom. Journal of Applied Management and Investments, 9(2), pp.51-54.

Ellmer, M. and Reichel, A., 2021. Staying close to business: the role of epistemic alignment in rendering HR analytics outputs relevant to decision-makers. The International Journal of Human Resource Management, pp.1-21.

Fernandez, V. and Gallardo-Gallardo, E., 2020. Tackling the HR digitalization challenge: key factors and barriers to HR analytics adoption. Competitiveness Review: An International Business Journal.

Garrigós, J.A. and Molina, M.D.M., 2020. Integrating Customers and Suppliers in Retail Co-innovation. Research-Technology Management, 63(3), pp.33-41.

Hood, N., Urquhart, R., Newing, A. and Heppenstall, A., 2020. Sociodemographic and spatial disaggregation of e-commerce channel use in the grocery market in Great Britain. Journal of Retailing and Consumer Services, 55, p.102076.

Kanakaratne, M.D.S., Bray, J. and Robson, J., 2020. The influence of national culture and industry structure on grocery retail customer loyalty. Journal of Retailing and Consumer Services, 54, p.102013.

Leone, S., 2020. Market opportunities and entry strategies for cassava and cassava related products in the United Kingdom.

Loon, M., Otaye‐Ebede, L. and Stewart, J., 2020. Thriving in the new normal: The HR microfoundations of capabilities for business model innovation. An integrated literature review. Journal of Management Studies, 57(3), pp.698-726.

Mishra, R.K., Sarkar, S. and Ghoshal, D., 2021. Surviving the Survival Mode–The HR Efforts in Managing Business. The New Normal: Reinventing Professional Life and Familial Bonding in the Post COVID 19 Era.

Mustonen, S., 2020. An Analysis of Sustainability and Consumer Buying Behaviour in the Food Retail Industry.

Ogundijo, D.A., Tas, A.A. and Onarinde, B.A., 2021. An assessment of nutrition information on front of pack labels and healthiness of foods in the United Kingdom retail market. BMC Public Health, 21(1), pp.1-10.

Scarborough, P., Adhikari, V., Harrington, R.A., Elhussein, A., Briggs, A., Rayner, M., Adams, J., Cummins, S., Penney, T. and White, M., 2020. Impact of the announcement and implementation of the UK Soft Drinks Industry Levy on sugar content, price, product size and number of available soft drinks in the UK, 2015-19: A controlled interrupted time series analysis. PLoS medicine, 17(2), p.e1003025.

Tesco.com, 2021. Tesco Supermarkets. [online] Available at: [Accessed 8 June 2021].

Tescoplc.com, 2021. Tesco/ Our History/ About us. [online] Available at: [Accessed 8 June 2021].

Velikorosov, V.V., Filin, S.A., Genkin, E.V., Maksimov, M.I., Krasilnikova, M.A. and Rakauskiyene, O.G., 2020. HR systems as a new method for the automatization of business processes in organization. DEStech Transactions on Social Science, Education and Human Science, (icpcs).

Dig deeper into Subway's Journey: Navigating Success and Crisis in the Fast Food Industry with our selection of articles.