Corporate Strategy and Governance (Tesco)

1.2 Overview and background of the organisation

To develop an understanding about corporate strategy and governance, an organisation is selected named as “Tesco PLC”. Tesco is a large scale public limited company which operates in retail market of general utilities and home appliances. This company has headquarters in United Kingdom but operates in various parts of the world. This company uses the concepts of corporate strategy and governance in order to shape objectives of their business operations and ensure that their organisation is heading to correct direction. By investigating overview and background of this organisation it has been ascertained that this company uses Industry life cycle model to prepare their business strategy and rules of corporate governance (Sethi, 2012). With the help of business strategy, TESCO has developed their vision, mission and organisational objectives on the basis of which operations of this company are conducted. Corporate governance helps TESCO Plc to develop certain rules and regulations for their organisational operations. This company operates in retail industry due to which it is important for them to plan their objectives strategically and govern all their operations.

1.3 Rationale of the research

Corporate strategy and governance are two concepts which are used to provide benefit to the business organisations. Rationale is the significance about the purpose of conduction of this research. Main reason behind conducting investigation about corporate strategy and governance is to ascertain benefits of these concepts in an organisation. Reason for this investigation is to identify the impact of business models used by organisations on their corporate strategies and governance. By conducting this study, researcher can ascertain various aspects which effect strategies and plans of the business. This research is a primary investigation which is conducted using fresh resources due to which relevancy of this investigation is high. This research paper can help future researcher to gain understanding about these concepts and impact of business models on these concepts (Amran, Lee and Devi, 2014). This investigation can help readers to understand how corporate strategy can help management of an organisation to develop their objectives and why corporate governance is important in a business entity. This research is based on TESCO Plc by which investigator can enhance their knowledge about these concepts when used in organisation context. Past researches about the same concept has few flaws about the relevancy of this concepts to organisation. But this investigation has conducted using an organisation due to which there are no flaws present in this research work.

1.4 Research Aim, objectives and questions

Research Aim

Main aim of this research is to identifying the importance of human resource allocation for TESCO to achieve competitive advantage.

Research objectives

• To analysis the basic idea of human resource allocation.
• To investigate the importance of human resource allocation for TESCO to achieve competitive advantage.
• To examine relationship between human resource allocation and achievement of competitive advantages.

Research questions

• What is the basic concept of resource allocation?
• What is the importance of resource allocation for TESCO to achieve competitive advantage?
• What is the relationship between resource allocation and achievement of competitive advantages?

1.5 Conceptual framework

Conceptual framework is the blueprint for all the activities which are conducted in a research. In this research proposals, investigation using TESCO Plc is conducted which is classified into five chapters which are mentioned below:

Chapter 1 : Introduction – In this section of the research, an understanding about the research topic is developed. Introduction refers to the overview and background of the research which provides understanding about the topic (Muchlinski, 2012). Research aim is created in this section which is based on the topic of research. Along with the aim, related research objectives and questions are developed. These objectives are the basis of the purpose which states that why an investigation is being conducted.

Chapter 2 : Literature Review – In this section, various sources are analysed in order to build an understanding about the topic and research questions. Various sources such as scholar books, articles and journals are used to answer all the research questions. This section involves theoretical information about the critical evaluation of the research problems. Main aim of this section is to investigate all research problems. In this section business model used by TESCO Plc is applied.

Chapter 3 : Research Methodology – The process of research methodology is used to collect data for the purpose of research decisions. This process includes various techniques of data collection and research techniques. In this section, discussion about secondary and primary research is undertaken along with the techniques in order to gather all data from respondents.

Chapter 4 : Critical Review Of Results – Under this segment of research, results are ascertained which are raised by the questionnaire prepared in research methodology. Objectives developed in the research report are reviewed in order to identify all the results which can conclude the research objectives and results.

Chapter 5 : Recommendation And Action Plan – In this segment of research, recommendations for the proposed research are developed. In this segment, various advises for the company such as TESCO Plc has provided about what they can do to improve their corporate strategies and governance (Fernando, 2012). In this section, action plan for the research is developed. Under this action plan all the activities which are required to be performed are recorded.

Chapter 2: Literature Review

Concept of human resource allocation

According to Khan, Muttakin and Siddiqui (2013), concept of resource allocation can be described as distribution of resources in an organisation for carrying out major operations, in an optimum manner. In this regard, major resources of a company include machineries, equipment, infrastructure, human capital, finance and more. In context with TESCO, for this company, employees are considered as main resources as they help in producing products or services as per demand of customers. Therefore, in order to get best support and contribution of employees for providing best services to people, it is necessary to allocate them on different job more appropriately. If managers assign roles and responsibilities to workers according to their skills and capabilities, then this will help in getting high performances of them. This would help in gaining high competitive advantage as well for present organisation.

In order to achieve high competitive advantage, corporate strategy and governance also plays a main role in resource allocation. It refers to a strategic plan which defines corporate goals and objectives as well as ways by which a company can achieve its objectives in given period of time. As per views and different opinion of Ngo and O'cass (2013), it has been analyzed that globalization assists corporations to concern more on competitive advantage. For this purpose, they have to pay more attention on strategies to get high cooperation of workers for attaining set goals. In this regard, corporate strategy has considered as a holistic view of entire business and take the combined strategies (organizational, functional and departments) into account for sustainable competitive advantage. For this assistance, management of TESCO requires to manage portfolio of products or services, functional and business activities in appropriate manner. Therefore, corporate strategy will aid in setting phases and allocating resources for business expansion. It also entails the flow of constant information between middle, top management and all units (Gelens and et. al., 2013). Henceforth, under well governed setup of corporate-governance in TESCO- requirement of transparency, disclosure and accountability help in leveraging the future course of action, for getting support of human resource in winning competitive advantages.

The importance of human resource allocation in TESCO for achievement of competitive advantage

From conceptual views of Moser (2012), it has been analysed that resources of a company are the important thing for executing a task of project in desired manner. It mainly includes all assets, organisational processes and firm attributes, which enables management to improve efficiencies and effectiveness. Organisational resources are also categorised in three main aspects- Physical, Technological and Human Capital. Here, physical resource include machineries, geographical locations and raw materials. While, human resource consists training, judgement, experience, relationship of management with workers and more. Among these resources, human capital add value to business which cannot be imitated by competitors. Therefore, workers in a firm provide a sustained competitive advantage.

In context with TESCO Plc, it currently wants to launch a new product at marketplace in order to get competitive advancement. For this purpose, main role of management is to schedule out staff members for producing effective goods and services. It also includes planning what vendors are required for conducting promotional activities, identifying technology, preparing budget plan and more etc. Under all these processes, managers will concern more on how to influence workers for accomplishment of this project (BarNir, 2012). As without support of employees, company will not be in position to achieve its target on time. Therefore, it is the main responsibility of managers of TESCO to develop strategies and plan for allocating workers on different job position, in effective manner. For this assistance, they are also required to concern more on evaluating skills and capabilities of each worker properly. This would help in allocating human resource for conducting different tasks and activities more appropriately.

Relationship between human resource allocation and achievement of competitive advantages

In today's fast-paced world, where economy competition has become an issue of services or products. With this assistance, companies now give much attention for better services and provide best products at marketplace. This could only be achieved by utilising human resources and input their efforts into giving out best services. According to different views and opinion of Jansen and et. al., (2013), it has been argued that human assets are most important key source of competitive and sustainable advantage. Therefore, if management of companies like TESCO trust their employees as well as give challenging roles, then in return workers will positively respond. They will work with high motivation, commitment and give best performance for accomplishment of business objectives. In this regard, there are some main factors evaluated for success - corporate strategy and governance; commitment of upper level of management; capabilities of staff members, team's aspiration and more. Thus, all these organisational aspects that sources of competitive advantages for a company is now shifted from financial to technological resources and then to human capital. Henceforth, it has been proved that success of a company is not dependent only on product quality and technology used for conducting business operations. It mainly depends on attitudes, competencies and skills of workers as well as abilities to work under complex situations (Terry Kim and et. al., 2013). In TESCO, for gaining high trust and commitment of workers, managers mostly rely on corporate strategy and governance. This strategy is built by Board of Directors which includes planning and directing of employees towards certain goals and objectives. These type of corporate strategic plans are formulated on the basis of some aspects. It includes the way to integrate human resource into strategic plans. This could only be achieved if HR policies of TESCO are coherent and line managers recognise the importance of human resource.

Under this process, management are needed to concern on different aspects of business, for analysing how to create value for attainment of goals. Since position of any organisation within its industry is used to determine whether profitability of business lie above or below the average. Therefore, by adopting the concept of different business models like Porter's generic strategies, a company can analyse how to develop effective corporate strategy for achievement of competitive advantages. This would also help in getting long term sustainability in business for staying competitive at marketplace.

Porter's Generic strategy (ways of competing)

This model refers to a set of business strategies for achievement of competitive advancement. It provides various ways for a company by which a company can differentiate its products and services at marketplace. In context with retail organisations like TESCO, Porter's generic strategies aid managers in developing effective corporate-governance. This would help in allocating resources like human capital in more appropriate manner. Along with this, it also aid TESCO in increasing productivity of workers for receiving high competitive advantages. As per perception of Fulmer and Ployhart (2014), this strategy model can also be defined as set of techniques for building high reputation of business at marketplace. It gives opportunities to company in getting more retention of workers and their efforts in achievement of business goals. This leads to concern on three main generic strategies for increasing profitability of TESCO as given below:-

Cost leadership strategy: This strategy is mostly used by those companies who want to be become cost leader in specific industry. Therefore, sources related to cost advantage are mostly varied as well as depended on the basis of economics of scale and proprietary technology. For this purpose, management of TESCO needs to address human capital, materials, overheads as well as other expenses, for lowering the cost per unit of goods or services. However, lowering costs required more investment in developing skills of workers to work accordingly.

Differentiation strategy: Due to increase in competition at marketplace, customers get opportunity to purchase desired products from a wide range of similar commodities (Porter's generic competitive strategies,2016). In retail section, there is an intense competition between organisations like TESCO, M&S, ZARA, Sainsbury and more. All such companies offer similar commodities within same marketplace on different range. Therefore, differentiation strategy of Porter's generic model concerns more on creating uniqueness in existing products or services. This would help TESCO in getting unique position by offering best quality of goods on premium price.

Focus strategy: It assists organisations to focus on targeted audience by dividing the same into some segments. After then develop marketing strategies for meeting the requirement of each section appropriately. Under this process, generic strategies concern on two main variants that are- Cost and Differentiation focus. Here, both variants are considered as little bit confusing, but can be interpreted as a 'a focus either on cost or differentiation'. Therefore, managers of TESCO before adopting this factor needs to concern that Cost Focus means to minimise price within a targeted market. While Differentiation Focus refers to create strategic uniqueness within the same. Therefore, to execute any strategy, this company needs to shape workforce as per requirement of business objectives (Hill, 2017). Managers also require to give right job to right employee so that strategies can be executed more appropriately.

Since TESCO currently concerns more on creating differentiation in its products or services, so that customers can analyse its unique features. Therefore, it is essential for management team to allocate different resources like human resource, raw materials and more in appropriate manner. By giving roles and responsibilities as per skills and abilities of workers,  aid managers to get best performances for completing a task. In addition to this, it is also essential for managers to adopt different leadership style for influencing workers towards achievement of competitive advantage. It includes democratic style of leadership where every employee allows to work in own manner for accomplishing assign roles (Teece, Peteraf and Leih, 2016). This would help in getting high retention of workers also for increasing performance of business.

Chapter 3 : Research Methodology

This part of research is considered as most important aspect, as it helps in gathering relevant information on specific topic in best manner. It provides various methodologies like primary and secondary techniques to collect data for further investigation. Here, under primary research, project makers use various techniques to collect reliable data. Further, they organise the information, make analysis and then interpret same to draw valid conclusion in desired way. While, in secondary research, investigators can obtain information from external sources like books, journals, government data, newspapers, articles and more. Under these type of sources, several authors and professionals have given their views and opinion on same topic. This would help researchers in evaluating their thoughts and making analysis according to own perception. In context with present research, management team of TESCO has used both methods for understanding the importance of human resource allocation, in order to get high competitive advantage. Therefore, for this purpose, concept of secondary and primary methods are explained below in more descriptive manner:-

Primary Research

It can be defined as a methodology which is used for collecting original information, instead of depending on such data which has already collected by other researchers. In technical terms, here researchers are required to conduct investigation in own manner for addressing a certain problem. This requires an depth analysis also to solely carried out activities for getting feedback and views of respondents. Therefore, the main advantage of primary research is to reach effective solution of mentioned issues of research. As related to present research, researchers are going to analyse role of human resource allocation in achieving competitive advantage. For this purpose, they have analysed various techniques of primary research in order to get specific information. It includes questionnaire, online and offline survey, interviews and more. Concept of these methods for collecting data are described as-

Interviews (telephonic or face-to-face): This method of primary research is considered as qualitative research for collecting a data. Here, to get feedback of selected respondents from a large sample, interviews are conducted either by face-to-face or over telephone and other platform of social media. Therefore, for this purpose, researchers are required to adopt effective communication for making interaction with interviewee. This would help in getting better responses of participants for addressing a particular issue of research. However, success of this type of research method is heavily depended on ability of researchers, to conduct interviews. Along with this, questions are framed in open ended manner which aid in-depth insights of perception of respondents. This technique consumes last 30 minutes for taking interviews. Therefore, it is suitable for those researches who need to collect data in short-period of time.

Online survey: It refers to most modern way for gathering desired information on a topic. Here, researchers are required to frame open and close ended questions, which will further sent to chosen respondent on emails or other social media applications. After survey is deployed, these participants get a certain period of time to answer these questions, then sent back to researchers. This would aid researchers to get feedback of participants and gather proper information. But to get response of all participants on given time is not necessary which seems to be the major disadvantage of this method.

Questionnaire: This research tool is taken as best technique for getting instant responses of each participants. Here, researchers frame a proper questionnaire format on given topic and then ask from given respondents. This would in receiving feedback of participants on time, through which further activities can be done more appropriately.

In context with present research, project-managers of TESCO have taken questionnaire method for taking feedback of respondents. For this purpose, they have chosen a sample of size 10 from total population (stakeholders) on random basis.

Chapter 4 : Critical Review Of Results

Critical review on the basis of secondary research

This part of research describes overall conclusion of data gathered under literature review, as per perception of different authors and experts. In this regard, critical review of present research are described in following manner:-

Concept of human resource allocation

From point of view of Rao and Tilt (2016), it has been evaluated that concept of human resource allocation describes the process of utilisation of employees. To achieve competitive advantage in business, TESCO needs to implement effective strategies and HR practices. Human resource allocation also entails Board of directors of this company to formulate corporate strategy as per business objectives. This would help in utilising efforts of workers in building competitive advantage and gaining high sustainability in business as well.

The importance of human resource allocation

As per opinion of Tang, Hull and Rothenberg (2012), it has been concluded that due to changes in business environment, intense competition and rapid development of technology, corporations are required to concern more on developing sustainability. For this purpose, they must analyse the importance of human resource as without cooperation of workers, a company cannot achieve its business goals. By assigning job roles to staff as per skills and capabilities, prove beneficial for TESCO in getting high performance.

Relationship between human resource allocation and achievement of competitive advantages

As per perception of Van den Berghe (2012), it has been ascertained that instead of financial or technological resource, today in organisations, human capital helps in getting a high competitive advantage. It also provides a sustainability in business, which other companies cannot imitate by introducing same skill set within workplace. Through literature review, it has also been evaluated that commitment, pride and trust between workers and management aid TESCO to get sustaining ongoing change at business. It also provides a platform for this company for increasing its turnover and profitability by utilising its human resource in optimum manner. In addition to this, competitive advantage can also be gained by seeking improvement in management of people.

Critical review on the basis of primary research

Under primary research, critical review can be done by analysing review feedback of participants on given topic. In this process, views and opinion of different participants are gathered in proper manner. After then, some statistical or mathematical tools like graphical representations are used for represent the data (Bell, Filatotchev and Aguilera, 2014). In context with present research, project-manager of TESCO has arranged data systematically and further represent in chart for interpreting the data.

Theme 1: Human resource is most valuable asset

Interpretation: Human resources are considered as most important assets for a company as they help in running business more effectively. They give their support and high contribution to organisations for achieving set goals and objectives in given period of time. In context with TESCO, as it wants to create differentiation in existing products for providing best services to customers. Therefore, for this purpose, it is necessary for managers to manage human resources properly. By taking reviews of 10 respondents as shown in above graph, it has interpreted that among them 8 are in favour with statement. They are agreed that human resource is most valuable asset. While remaining 2 participants do not give their support for the same. They thought that financial resources is most important asset for conducting entire activities of business. Therefore, TESCO is required to concern more on utilising finance as compared to managing human resources.

Theme 2: Importance of human resource allocation

Interpretation: Human resources are considered as most valuable assets for a company in accomplishment of business goals. Under this process, it is necessary for a company to concern on placing right employee on right job. This would help in completing a task on time in more effective manner. According to survey on 10 respondents as shown in above graph, it has evaluated that 7 users out of them are agreed that human resource allocation helps TESCO in achieving competitive advantage. Through this process, it can gain sustainability in business as well. While remaining participants viz.3 are not in favour with the same statement. They suggest to concern on financial resource more for developing competitive advantage.

Theme 3: Role of corporate-governance

Interpretation: Corporate strategy and governance entails a strategic plan for getting high cooperation of workers to achieve business objectives. According to above mentioned graph, it has interpreted that 4 participants among 10 believe corporate-governance helps TESCO in deploying and allocating resources more effectively. While other 3 users are in favour with increasing productivity of employees. The reason behind same is that if this company makes strategy to develop job satisfaction under staff, then they give best effort for increasing growth and success of business. Other than this, remaining 3 respondents states that main role of corporate-governance is to identify best HR practices for motivating employees.

Theme 4: Factors for allocating human resource

Interpretation: For human resource allocation, an organisation needs to concern on various aspects like skills and abilities of workers, corporate-goals and strategies, demand of business etc. It has interpreted from above mentioned graph that 4 respondents are in favour with corporate-governance and strategies. While other 4 users give votes to skills and abilities of workers for utilisation of human capital. Apart from this, 2 participants suggests that managers of TESCO need to concern more on business demand for the same.

Theme 5: Strategy for achievement of business goals

Interpretation: For accomplishment of business goals, a company needs to concern on many factors such as hire eligible employees, give reward and compensation, promote organisational culture and more. Through this graphical representation, it has evaluated that 3 respondents suggest TESCO to hire high skilled workforce for achieving goals. While 4 users give advice to provide reward and compensation to workers, so that they can give contribution in achievement of the same. Other than this, remaining 3 users states to recognise performance of employees and provide reward accordingly.

Theme6: Reasons behind failure of corporate-governance

Interpretation: There are various reasons present under organisation behind failure of their corporate-governance. It includes weak internal management, conflict of interest of stakeholders, improper human resource allocation etc. As per given graph it has interpreted that 3 out of 10 respondents believe that weak management process may cause failure of corporate strategy under TESCO. While, 3 participants states that conflict of interest seems to be a major cause behind the same. Similarly, remaining 4 respondents think that improper distribution of roles and responsibilities leads to cause failure of strategies.

Theme 7: Way to minimise failure of corporate-governance

Interpretation: For minimising the risk of failure of corporate-strategy, TESCO can implement various policies. It includes organise training classes for workers, increase diversity at workplace, provide information to stakeholders on time and more. From above graph, it has interpreted that 4 respondents out of 10 give advice to TESCO to provide training to workers. Through this process, employees can develop their skills and give contribution in achievement of business objectives. While 3 users suggest to give timely information and other 3 to increase diversity for the same.

Theme 8: Corporate-governance aid TESCO in achieving competitive advantage

Interpretation: In order to analyse if customers are satisfied with services offered by TESCO, its managers have carried a survey on 10 respondents. It has interpreted from this survey as shown in above graph that 7 out of them are satisfied with its services. They are much satisfied with quality of products or services offered by TESCO. While remaining 3 are not satisfied with the same. They have suggested to this company to concern on its delivering process for increasing effectiveness of business.

Chapter 5 : Recommendation And Action Plan

Recommendation

From this research, it has evaluated that to gain competitive advantages in marketplace, it is essential for a company to get maximum efforts of human resources. Therefore, to gain high competencies and sustainability in business, it is recommended to TESCO to implement some effective HR practices. These practices should also be matched with organisational desired competitive goal. In other words, managers of TESCO should work out to analyse what kind of behaviour is required for getting business position. This would help in adopting effective HR practices as well as reinforce them. It includes hiring eligible and skilled candidates within business, giving workers more discretion, creating a more investment in human resources, using minimal controls, appraising performance for long-run implications etc. These practices would help in getting high skilled employees for achieving competitive advantages.

Along with this, for differentiating business on the basis of non-price features of products. It includes high quality, short-period of delivery of services, meeting requirement of customers on time and more. This could only be achieved by using Porter discussion competitive strategy. Therefore, it is recommended to managers of TESCO to concern on two main strategies  that are- Innovation and Quality enhancement strategy. Here, under innovation strategy, they must focus on developing products or services for differentiating the same from competitors. For this purpose, vital component for executing this strategy is getting workers to broaden their skills. While in context with quality enhancement strategy, this retailer company needs to concern on replacing the existing infrastructure with latest technologies. Therefore, for this purpose, it also requires to gain commitment of workers to become more flexible and give efforts in developing the same. Along with this, for pursuing product differentiation, HR managers also need to design jobs which require minimal training, repetitive, cutting workplace to minimum as well as rewarding predictable behaviour and high output. This would help in motivating workers to give best performance for enhancing productivity of business.

It is also recommended to HR managers of TESCO to concern on some main factors for improving performance of employees. This would help in achieving long term loyalty which lead to achieve great competitive advantage. It includes job security, high wages, effective communication and relationship with other staff members, personal development like training, reward and compensation etc. In this regard, during any changes in terms of Political Law, Economic sustainability, Technical and Social concept, managers of TESCO should concern on offering alternative employment. This would help employees to ensure about job security and give best performances for accomplishing business objectives. Other than this, job analysis which looks at behavioural needs of a certain competitive strategy, aid management of TESCO in developing culture accordingly. For this purpose, by evaluating requirement of workers as per task role and give employment, helps in adding value to business also. Therefore, managers also need to concern on creating job design to target workers with requisite skills, knowledge and abilities. Furthermore, by giving appraisals as per contribution of workers in getting competitive advantage, also aid this company in boosting morale of them.

Action Plan

This part of research refers to a particular document which entails the stages for accomplishment of corporate-goals and objectives. The main purpose of developing an action plan under any research is to determine resources which are required for addressing issues. It also frame steps to execute a research under a specific time-period. As related to present research project, an action plan requires for TESCO to allocate human resources for achieving competitive advantage, is given below:-

Conclusion

It has concluded from this research that corporate strategies and governance of a company play a major role in running business successfully. Though this process, an organisation can analyse importance of various resources like human capital for achieving high competitive advantage. By understanding the concept and importance of human resource allocation, a firm can formulate effective strategies. This would help in improving and increasing productivity of workers for business growth and success. In addition to this, it also give opportunity to corporations in utilisation of their human resource for accomplishment of operational activities also.

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