Organisational assignment on horizontal scanning of Tesco PLC

Question

Task: You are required to undertake horizon scanning in your organisational assignmentof an organisation to identifythe key challenges in relation to managing people and organisations which are being faced in 2022, and those likely to be faced in 2025 and then in 2035. Select one or two key areas, and identifythewaysinwhich the organisation and/or sector might need to respond, citing theory and research to support your suggestions.

Answer

Introduction
When formulating strategy, most businesses use a modified version of the PESTLE model for horizontal scanning. They may use the information gained from this organisational assignmentto better guide their future planning and decision-making. Çitilci and Akbal?k (2020) recommend that business leaders make strategic plans in advance and respond quickly to changes in the external environment to lessen the likelihood that these changes will have a detrimental effect on the operations of their companies. Tesco may be able to fix the issues that they are facing internally if they put the ideas that are going be outlined in this article into action (Awadari and Kanwal, 2019).The suggestions for the company will be provided over three time periods in this organisational assignment, drawing the relevant literature.

Part 1 of the organisational assignment
Summary of Horizontal Scanning of Tesco PLC from Appendix
The horizontal scanning of Tesco PLC in the Appendix of the organisational assignmenthas been used the PESTLE framework to showcase the scanning of the political, economic, socio-cultural, technological, legal, and ecological environments of the business.

Political
Consideration of possible future governmental action is important to Tesco’s planning process. Since Brexit, the political stability of the United Kingdom—home market of Tesco—has been thrown into question. Tesco referred for this organisational assignmentis able to thrive in nations where the economy is secure and the government is supportive of business. Brexit is the topic of heated discussion throughout the world. Because of this, a wide range of businesses and markets will be impacted. There are a number of European-made products available. Tesco's long-term viability is a focus of the company's business strategy, which takes into account politics and government laws. The countries where Tesco operates successfully are as politically stable as the UK. Tesco as per the organisational assignmentis able to thrive thanks to governments that are conducive to commerce.

Economic
Global economic growth has been severely stunted by the 2020–21 lockdowns, which has led to a decrease in wages and the loss of many jobs. They may decrease their purchases or perhaps switch brands. The store chain Tesco might lose money. The global economy as per the organisational assignmenthas suffered because of the spread of COVID-19, which has resulted in the loss of jobs and income for a large number of people. This might lead to shoppers opting for store brands or lowering their overall spending. potentially bad news for Tesco's bottom line. Some consumers are willing to increase their spending even in a down economy if they believe they are receiving a substantial discount on high-quality goods. This is great for the high-quality products sold at Tesco. Tesco's yearly payroll costs will increase by tens of millions of pounds due to the high cost of labour in the United Kingdom and Ireland. As per the organisational assignmentfindings, commercial operations would be impacted by COVID-19 until the year 2025. Sales at U.K. stores are expected to drop by £8 billion by 2025 due to the widespread adoption of online shopping in the wake of the COVID-19 pandemic, according to projections made by Alvarez & Marsal (A&M) and Retail Economics in 2021.

Socio-cultural
Tesco has made several steps in recent years to adapt to shifting consumer preferences. Because of the company's willingness to evolve with the times, Tesco is now able to meet the needs of its customers. As the demand for alternative protein sources and vegetarian or vegan food and drink increases throughout Europe, Tesco as per the organisational assignmenthas promising development potential in the region. Jewish residents of the United Kingdom may shop for kosher food at Tesco. Just like the demand for meat and chicken, the desire for vegetarian and vegan food and drink is on the rise across European regions that offer Tesco tremendous growth opportunity. As a result, it may be costly to ignore social issues. In only the last few years, especially with the beginning of the COVID-19 pandemic, the popularity of buying groceries online has skyrocketed.

Technological
Thanks to technological advancements, Tesco considered for this organisational assignmentis able to be both competitive and budget-friendly. One may use this method by scanning items as they buy them. Since consumers are waiting shorter amounts of time, Tesco may either cut the number of employees or reallocate them to other departments. According to Tesco, the use of its scan-as-you-shop service is on the rise. Self-service checkouts at Tesco may help you save both time and money. Customers are more likely to return after using the site since they can find what they are looking for more quickly. They increased their revenue by 43% when they began selling on the internet and capitalising on the growing popularity of buying things on the internet. The quality of service and selection offered to customers in both physical and virtual settings as per the organisational assignmenthas been enhanced as a result. Companies risk losing customers' confidence and falling behind the competition if technological problems delay them.

Tesco's app and website were both down in October of 2021, making it impossible to place an order.

Legal
If it wants to stay in business, Tesco must abide by the rules of the places where it has stores. Tesco inflated their projected profits for the first six months of 2014 by a significant margin. Tesco is affected by rules and regulations imposed by the government. For instance, the Competition and Markets Authority (CMA) may block Tesco from combining with or acquiring another supermarket of its size in the UK due to anti-competitive conduct being prohibited under UK and EU competition regulations. In addition, Tesco as per the organisational assignmentshould comply with the minimum wage regulations set by the government. There is a strict prohibition on selling alcohol to minors. Tesco has different legal challenges in each of the jurisdictions in which it operates. Salary and tax rates will change depending on the kind of goods being sold. Cigarettes flavoured with menthol have been banned in the European Union. Since this regulation prevents the sale of such cigarettes, it is detrimental to Tesco.

Ecological
Businesses throughout the United Kingdom, the European Union, and the world are being pressured by governments to address environmental issues. People who care about the environment and their governments are the ones applying this kind of pressure. In response to this stress mentioned in the organisational assignment, Tesco has implemented a number of measures. One billion pieces of plastic were discarded by its UK-based parent firm by the year 2020. They started collecting recyclables in an effort to use less new plastic and eventually phase it out entirely. The company is focusing on taking actions that are considerate of the environment. The goal of sustainable retail in the United Kingdom is to achieve net zero by 2035. Tesco has given money to a campaign to find and shut down illegal fishing boats that kill marine life by catching too many fish. The significance of this to sustainable development cannot be overstated in the organisational assignment. Tesco has made a public commitment to halting Amazon Forest destruction on its website. To put it simply, Tesco is eco-conscious. Tesco is working with a food-sharing programme to make sure that no good food goes to waste by giving it to people who need it.

Part 2 of the organisational assignment
Two Key Important Areas from Horizontal Scanning
Two areas that have been identified to be essential for Tesco to consider for their future planning in the organisational assignmentare drastic technological changes towards digital commerce amidst the COVID-19 pandemic and rising consciousness regarding environmental concerns among consumers.

2022
As a result of the COVID-19 pandemic, Tesco Plc adapted to the new environment by adopting technology (Deonarain, 2019). The COVID-19 would not have the same long-term impact on all retail sectors as per the findings of the organisational assignment. Margin pressures will be felt more strongly by certain businesses and sectors than by others. Findings suggest that the beginning of the pandemic has caused a permanent change in customerbehaviour across the categories of groceries due to increased online search and engagement. Sales via the firm’s online website surged at about the same time as the company began to utilise technology for business activities.

Sustainable technology implementation in Tesco’s business process is improving operational function, increasing earnings and online sales, and putting the corporation on track to reach the 2035 sustainability agenda’s goals. AS per the organisational assignmentfindings Tesco’s success on these two fronts is a direct effect. The use of cutting-edge technology has been shown to boost both the company’s bottom line and the revenue earned by the company’s online endeavours (Akpan, Udoh and Adebisi, 2022). Once this experiment works out, the business’s economic standing will improve as a direct consequence of smart technological decisions. One kind of innovation that businesses may use repeatedly to boost their profits is technological advancements improving performance of the organisation (Callaghan, 2019).

For now, Tesco must make use of technology for meeting their ecological and business sustainability concerns and make use of HGV fleets for transporting their goods. The market for fast-moving consumer goods (FMCG) is expected to increase at a compound annual rate of 10% by the end of the first quarter of 2021, making it one of the world’s fastest-growing markets (Cawthray and Murphy, 2021). As per the organisational assignment findings the surge in demand for logistics services may be traced back in large part to the rise of online commerce in the digital economy, which has been boosted by the COVID-19 pandemic. For grocery stores to achieve net-zero emissions, they must decarbonize their HGV fleets. Nevertheless, the best strategy to accomplish this goal is still unclear (Li et al., 2022). In addition to enhancing vehicle efficiencies and optimising logistics, the introduction of innovative vehicle technologies could reduce emissions, which would have positive effects on air quality. Natural gas, biofuels, hydrogen, and electricity have all been identified in studies like the one conducted by DNV GL as the primary energy vectors that would be used to support road transport needs in 2050. (Fulton and Miller, 2015; DNV-GL-ENERGY TRANSITION, 2019). The convenience of having such vehicle means that people are more likely to shop, and as a result, Tesco's management has to take advantage of the current social and cultural circumstances to improve the company's long-term viability and bottom line (Hashim et al., 2021). As per the organisational assignmentTesco has diversified in response to the bulk purchasing tendencies in the United Kingdom by increasing the quantities of non-food items it offers to clients. To add to the complexity of the social and cultural context in which this organisation operates, demographics are also a major issue. Alterations in demographic trends and consumer habits may have a significant impact on a business's long-term goals and objectives.

2025
There might be monetary repercussions for a company if it adopts cutting-edge technology. The inability to find a competent worker who is both technologically savvy and open to change might slow down business operations. In addition, many already-present workers are ignorant of the innovation and sustainability objectives. These workers have difficulties in corporate operations, which has repercussions for the firm’s bottom line and its image as an ethically sound organisation (Vecchiato, 2020). As per the organisational assignmentfindings there are positive benefits of technological progress on companies’ bottom lines, and further technological development may lead to substantial growth in those companies’ economies.

Organizational changes may cause issues by 2025, but they are essential for the company’s future success. The development of technology may cause not only external but also internal shifts in an organisation. AS per the organisational assignmentfindings, businesses must consider using cutting-edge technology, but they must also be flexible and cooperative if they are to succeed. The chances of success for such companies will improve if you do this (Almeida, Santos and Monteiro, 2020). As well as showing how technological shifts might affect a company’s bottom line, the results of a horizon scan conducted on Tesco Plc contain a wealth of useful information.
Intending to be carbon neutral by 2035 in the United Kingdom, the company has set the target year of 2025 in which they want to cut its carbon footprint by 60% from its 2015 level of activities. To implement its climate plan, the company will change the way it generates and buys energy, forming partnerships with other businesses to reduce carbon emissions from its internal operations and its supply chain (edie, 2022). As per the organisational assignmentfindings, there are several instances of successful collaboration between companies in the UK to combat climate change. Both EDF and Tesco have established measurable, science-based goals that have been validated by the “Science Based Targets Initiative” (SBTi). Tesco has taken initiative via the SBTi, promising to cut its scope 1 as well as indirect scope 2 greenhouse gas emissions by 60% by the year 2025.
While there are negative effects, such as sustainability concerns, associated with technological progress, there are also numerous positive effects that aid businesses in expanding rapidly. The organisational assignmentenumerates several ways in which the organisation may use technology to improve its performance by 2025. Several perspectives on the impact of technological development were voiced in the preceding presentation. This discussion illuminated critical details on the technological shift and its implications for the business.In addition to improvements, the organisation may reap competitive benefits by using the technology. According to Allen and Berg (2018), technological development is an ongoing process that may help retail establishments meet their obligations to customers and the environment in the face of the economic hardships brought on by the pandemic. As per the organisational assignmentchanges in technology will also have both positive and negative effects on human resource management. The advantages of implementing the new technology include strategic management and simplified operations. Hence, HR managers in Tesco must adapt to new situations as a consequence of technological advancementsand provide training and development to the existing employees to boost the overall productivity. When the productivity of management and the workforce are also impacted, profits rise since the business gains a strong base of satisfied customers.

2035
Several external factors, including the COVID-19 pandemic, Brexit, and the Russia-Ukraine conflict, have weakened the UK economy, which in turn has weakened Tesco Plc’s commercial operations. One of the most important aspects of a nation’s economy is its inflation rate (Akhter, Mushtaqand Nadeem, 2022). Tesco Plc referred to for this organisational assignmentis just one firm whose operations have been affected by the current economic climate and the rising inflation rate. It has repercussions for every industry. However, Tesco Plc might be affected by economic downturns and upturns between 2022 and 2025 and 2035, and this must also be planned for. Alterations to corporate processes brought on by technological development may cause or alleviate financial strain on the organisation. Many UK retailers have made public commitments to achieve “Net Zero” vehicle use in their supply chain operations.
Tesco Plc, like many other businesses searched for organisational assignment, sees a boost in revenue and productivity after implementing cutting-edge technologies across the corporation. While it is among the greatest for the firm, it also boosts the efficiency of both individuals and groups inside the organisation (Gao, Liu and Ma, 2019). In the United Kingdom, Tesco has set a new goal of sourcing 100% of its power needs from renewable sources by the year 2030. Tesco expects this decision, together with its investment in onsite generation, to play a significant role, since the combined output of the new solar farms is expected to be up to 130GWh per year (edie, 2020).Tesco should address the shift in consumer behaviour in the UK in terms of environment-consciousness, if it is to respond successfully, both for the sake of its bottom line and its long-term viability (Hashim et al., 2021). As per the organisational assignmentfindings, the people of the United Kingdom now favour high-end items more than ever before. Because of this, the firm may adapt to the changing social and cultural environment by developing a business mix centred on the value chain and making operational adjustments to keep up with the ever-changing preferences of its customers.
Some individuals in the workforce become resistant to new technology since they are not up-to-date with it. Adapting to new technology might not be easy for them. Most individuals, though, learns to take advantage of technology’s improvements to their efficiency. The technology has a long history in the UK, providing Tesco Plc with several advantages. As per the organisational assignmenttechnological considerations should be given the most weight in the company. Apart from training on technologies, the company must focus on communicating their sustainability goals to the employees to aware them of the benefits of sustainability for managing change and improving organisational performance and reputation of being environmentally concerned. Retailers today must also scale up at the right pace if the world wants to achieve Net Zero by 2035. To accommodate the growing need for Net Zero vehicle logistics, as many as 88% of self-reporting respondents already have deployed ‘Green’ powered vehicles (The BRC, n. d). However, most (78%) of these attempts are described as being in the pilot stage or being of a modest scale. The remaining 22% are large-scale merchants that set the bar high by reducing their carbon footprints.

Conclusive Remark and Reflection on Changes from Induction Activities and Horizontal Scanning Impact Career Development
An overview of the aspects taken into account in the PESTLE analysis is included in the organisational assignmentinitial second section; more discussion of these components may be found in the appendix. Tesco may be able to improve its internal financial situation by implementing the strategies that have been discussed in this report. Organizations that reap the benefits of technological progress may find that the values they hold for their staff shift as a result of the increased leisure time available to them. This has opened my eyes to how an organisation’s moral compass, tolerance, and capacity for making effective and long-lasting decisions are all enhanced by the same thing. In addition to the information already included in the organisational assignment, I collected some ideas on how technology has progressed since the COVID-19 pandemic may aid in the growth of Tesco’s business.

One of the more recent phenomena that affect the success of enterprises is the rapid development of technology, which is discussed at length throughout the study. The focus of this inquiry was on Tesco Plc, which is not only one of the most prosperous retail firms in the United Kingdom and also one of the most well-known supermarket chains anywhere in the world. The ramifications of technology progress on Tesco Plc’s operations are explored in thisorganisational assignment, as are the details of the information that is related to the key areas of Horizon scanning. My organisational assignmentresearch suggests that although Tesco has profited from technological progress, more attention has to be paid to the company’s efforts to satisfy the sustainability agenda and associated environmental issues. Throughout the process of writing this organisational assignment, I have found that PESTLE analysis was utilised to conduct horizontal scanning of the organization’s external environment to gather relevant data for this study. Both the benefits and the drawbacks of technological progress for commercial enterprises have been thoroughly explored in the present study.

In this last portion of the organisational assignment, I have also discussed how I reflected on the horizon scanning exercise and how the discussion may have aided in my professional development. Having read Tesco Plc’s PESTLE research, which focuses on the firm’s external environment, I now realise how crucial it is to do a thorough horizon scan, or examination of the environment in which a company operates, before initiating any kind of induction operations. Two key takeaways emerged from my investigation in the organisational assignmentof the external factors that may affect Tesco Plc’s operations in the here and now, in the not-too-distant future, and beyond. As a result of the massive innovation brought about by the use of technology and the need to address the lingering economic blow brought on by the COVID-19 pandemic, it is also likely to be altered in the future period. The other aspect mentioned in the organisational assignmentthat will continue to affect the company is the extent to which its activities are sustainable.

References
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Appendix: PESTLE Analysis of Tesco PLC
Factors Horizontal Scanning of Tesco

(Source: Farrell, 2014; Davis, 2018; Edwards et al., 2019; Young, 2020; Munbodh, 2020; Coles, 2021; Alvarez & Marsal Holdings, 2021; Monte, 2021; Tescoplc.com, 2022; Tescoplc.com, 2022)