CompanyThis assessment will cover the following questions:
- Tesco is a multinational supermarket brand of UK. Analyse how to motivate individual and teams to achieve organisational goal.
- Which theories and approaches are useful to influence organisational behaviour in a complex business situation.
- Demonstrate how an organisations culture, politics and power affects performance and behaviour of an individual.
INTRODUCTION
Entrepreneurship is a process through which a new business is developed, planned, and designed, and the person who develops that business is known as an entrepreneur. Entrepreneurial opportunities are the conditions that provide benefits to an entrepreneur in terms of increment in profit and growth (Foss, 2018). It is the advantage that an entrepreneur gets by selling their product and services in the market at a comparatively higher cost as compared to the cost of production. Tesco is one of the largest retail companies in the UK. It was founded by Jack Cohen in 1919 and has headquarters in Welwyn Garden City, Hertfordshire. It deals with different products and services like groceries, clothes, furniture, electronics, and many more. But to gain a more competitive advantage, Tesco plans to diversify its products and services; for that, they enter a new segment that is in the cosmetic sector. This report includes the rationale and market gap for an entrepreneurial idea and analyzes the support gap that is needed to evaluate the idea. Furthermore, it includes analyzing the strengths, weaknesses, opportunities, and threats that support the assessment of entrepreneurial ideas.
Explain The Rationale and The Market Gap For a Specific Entrepreneurial Idea.
Tesco has around 2,318 stores worldwide and has 13 international markets apart from the UK. Thus, Tesco uses geographic segmentation, by which they supply their products and services as per the development and requirements of society (Gianesini, 2018). Whereas in behavioral segmentation, Tesco supplies their product and services as per the behavior of the customers, and that depends on education, qualification, values, mentality, etc. While demographic segmentation includes sex, age, family size, etc., Tesco provides the services as per the requirements of the market.
Porter's Five Forces Model:
It is a model that is used by Tesco to measure the market competition as they innovate their cosmetics product for the young generation. As they are very conscious about their skin, Tesco innovates their cosmetics by adding herbal purity and organic material. With that, there are various competitors in the market for that company to perform this model, as explained below.
Bargaining Power of Suppliers:
Various suppliers supply the raw material to the retailing company. Suppliers are so ascendant that they can directly affect the profit that is gained by the company. If suppliers sell the raw material at a higher rate, that decreases the overall profit that is gained by the retaining companies. For that, Tesco must maintain the supply chain management with different suppliers, with whom it also performs different experiments by changing the designs and materials of the products. Also analyze their competitors, like Asda and Walmart, about their relations with the suppliers and then balance the relationship with their suppliers to earn the profit through bargaining.
Bargaining Power of Buyers:
As customers always want new products with less packaging, Tesco needs to maintain its profit for a longer period. With that large customer base, they expect more discounts and offers from the company. For that, Tesco built a large customer base that helped it gain power and enhance sales profit. For that, Tesco innovates new products and offers accounts to customers, which maintains the increment of the productivity of the company.
The Threat of Substitute:
With that innovation of new products and services, it is always a threat for Tesco that if its competitors (ASDA, Walmart, Morrisons, etc.) bring the same product, that will divide the sales of the company. Thus, Tesco manages that by focusing on service orientations rather than product orientations. With that, induce the changes as per the requirements and demands of the customers, so that the company retains its customers and gains a long-term competitive advantage (Gümüsay, 2018).
Threat of New Entrants:
A new entrant always brings more competition in the market, and that reverts the pressure on Tesco to lower the pricing strategy; costs also decrease, and that provides more benefit to the customer. Tesco must manage its strategies to remain balanced and secure its competitive edge. For that, Tesco innovates there product and builds a strong customer base. With that, to enhance profit and sales, Tesco must reduce the cost of per unit product.
Rivalry Among Existing Competitors:
Rivals are the competitors that always try to reduce their cost price to grab the attention of the customers. Tesco also imparts the competition in the market by reducing its overall production cost. Tesco manages the rivalry by providing better scale to the customers, which increases the size of the market to gain more competitive advantages.
By analyzing Porter's five forces model, Tesco made the best strategies to reduce the overall production cost, which also managed the changes in market trends and then innovated their new product. With the help of innovation companies, enhance the competition and measure the profit.
Retailing Industry Life Cycle:
It is a cycle that defines the different stages of products and services that are offered by Tesco to the customers and is as explained below:
Start-Up
It is a stage in which customers are not aware of and familiar with the products and services of the company. In this stage, the company supplies there product with very little revenue and also measures the negative flow of cash within the business because the company invests a lot of money in new technologies, raw materials, and equipment.
Growth:
It is a period in which the company measures the higher profit as products and services have already been advertised in the market. This is a stage in which gross margin is increased as marketing and production costs decrease, which measures higher profit as compared to the cost of products.
Shake-Out Stage:
It is a stage that strengthens the business, as some of the businesses get losses as they didn't get established, whereas Tesco gets the profit in terms of market growth and development. This is a stage at which company profit slays down as the business formulates to the maturity period (Hueter, 2019).
Maturity :
It is a stage in which the company already feels the growth and higher sales, and as faster the product reaches maturity rate, that much sustainability in the market increases with that, the company faces a lot of competition; thus, they also insert different strategies to remain in the market, which sometimes relaunches the product and services with new advancements.
Decline:
It is the stage in which the company feels the recessions as, by gaining profit and higher market growth, products, and services eventually fall and the company performs the penetration strategy to enhance the sales and profit. The company also provides a discount to the customer to liquidate the availability of the stocks, and at last, the product vanished from the market.
Justify How a Specific Entrepreneurial Idea Fills a Market Gap.
The market gap is the difference between the needs of the customers with the products and services that are provided by the company. This gap provides growth to the business as it provides opportunities for the companies to expand their business by spreading awareness in the market about their products and services. As youngsters are more aware and conscious about their skin, and for, they use higher-quality products that are quite expensive, thus all can't purchase them. With that, it is not possible and easy to purchase those highly expensive products. For that, Tesco launched a new innovative product that is less expensive and easy to purchase. The new product includes herbal and organic products that are suitable for all skin tones, and with that, it is beneficial for both males and females. Thus, Tesco fulfills the market gap by providing a product that is economical for all.
Critically Evaluate a Specific Entrepreneurial Idea Based on Interpretation And Investigation of the Competitive Marketplace.
The new and innovative idea is based on the interpretation and investigation of marketplace competition. There is a lot of competition that is faced by the retailing industry because there is more than one business that produces similar products and services for the customer. Competition has been raised as customers have a lot of variety, and for that, the company reduces the cost to attain the maximum profit (Joll, 2018). For that, Tesco analyzes the requirements and demands of the customers and, with that, interprets the competition in the market. And with that, investigate the products and services that are already presented in the market. With that, make the product that is not developed in the market and insert the changes that are needed by the customers.
Present Data Needed to Support Gap Analysis in The Evaluation of Entrepreneurial Idea.
Gap analysis is a description of the difference between the products and services that are offered by the company and the requirements of the customers. For that, Tesco maintains the difference between the current and future situations.
|
Basis |
Current position |
Desired position |
Action plan |
|
Products and Services |
Tesco provides different products, including groceries, furniture, clothes, toys, telecom and financial services, electronics, and many more (Korte, 2018). |
To manufacture cosmetic products that are more herbal and organic for both males and females. |
To produce these cosmetic products, Tesco purchases different machinery and provides training to the employees to manage the production of new products. |
|
Cost |
Tesco offers the product at appropriate prices, by which customers easily get connected with the company. |
Tesco manages the prices of its products and services by analyzing the pricing strategies of its competitors to gain competitive advantages. |
Tesco developed the product with a reliable price and uses a price penetration strategy to attain the attention of customers. |
|
Innovation |
The new innovative idea is very creative and attracts a large customer base. |
By inducing innovation in cosmetics products, Tesco has a large scope to gain an advantage and market share. |
By accepting the feedback and reviews from the customers, Tesco implements further change and follows the customer-centric approach. |
|
Objectives |
Strategies |
|
The major objective of Tesco with this new product is to gain a large customer base by satisfying the needs and demands of the customers. |
|
|
To balance the sustainable business |
|
Gantt Chart:
It is a chart that defines the time that is required to perform a certain task within the business to complete the process, which is explained below:
Interpret Data Appropriately to Provide Evidence of Market Potential.
There are different sources from which the company collects the data and then analyzes the different factors to measure the success. There are two types of sources: one is primary, in which data is collected for the very first time, such as from interviews, surveys, and questionnaires. Whereas secondary sources are those in which data is collected from already published data, like from journals, books, magazines, etc. For the new innovative product, Tesco follows the primary research and for that, the company collects information from 30 people with the help of a questionnaire that is as follows:
|
QUESTIONNAIRE Name: Age: Address: Contact Number: |
|
Q1. Did you know about herbal and organic products? A. Yes B. NO |
|
Q2. Did you use herbal beauty products? A. Yes B. No |
|
Q3. Are herbal and organic products healthy for the skin? A. Agree B. Disagree C. Don't Know |
|
Q4. Do you think that herbal and cosmetic products will be successful in the market? A. Agree B. Disagree C. Can't Say |
|
Q5. Do you think the Company gains a competitive advantage with this innovative product? A. Yes B. No |
|
Q1. Did you know about herbal and organic products? |
Frequency |
|
A. Yes |
17 |
|
B. No |
13 |
|
Total |
30 |
|
Mean |
15 |
|
Median |
15 |
|
Mode |
4 |
Interpretation:
As from the above graph, it is measured that of the 30 people, 17 are aware of the herbal and organic products (Markard, 2018). Thus, as per the information, the mean is 15, the median is 15, and the mode is 4.
|
Q2. Did you use herbal beauty products? |
Frequency |
|
A. Yes |
25 |
|
B. No |
5 |
|
Total |
30 |
|
Mean |
15 |
|
Median |
15 |
|
Mode |
0 |
Interpretation:
As from the above graph, it is measured that of the 25 people, 30 are aware of the herbal and organic products. Thus, as per the information, the mean is 15, the median is 15, and the mode is 0.
|
Q3. Are herbal and organic products healthy for the skin?? |
Frequency |
|
A. Agree |
16 |
|
B. Disagree |
8 |
|
C. Don't Know |
6 |
|
Total |
30 |
|
Mean |
10 |
|
Median |
8 |
|
Mode |
4 |
Interpretation:
From the above graph, it is concluded that 16 people out of 30 believe that herbal and organic products are healthy for the skin. Whereas, 8 disagree with the statement. 6 people are neither in favor nor against. While the Mean is 10, the median is 8 and the mode is 4.
|
Q4. Do you think that herbal and cosmetic products will be successful in the market? |
Frequency |
|
A. Agree |
13 |
|
B. Disagree |
10 |
|
C. Can't Say |
7 |
|
Total |
30 |
|
Mean |
10 |
|
Median |
10 |
|
|
6 |
Interpretation:
10 out of 30 people agree with the statement that herbal and cosmetic products are successful in the market, while 13 disagree. 7 persons are neutral. The mean of this information is 10, the median is 10, and the mode is 6.
|
Q5. Do you think the Company gains a competitive advantage with this innovative product? |
Frequency |
|
A. Yes |
16 |
|
B. No |
14 |
|
Total |
30 |
|
Mean |
15 |
|
Median |
15 |
|
Mode |
2 |
Interpretation:
16 people believe that the company gains a competitive advantage with this innovative product, and 14 don't believe in this. The mean and median of this statement are 15 and the mode is 2.
Justify the Specific Sources and Method of Data Collection and How It Relates to Market Potential.
Internal Sources of Data Collection:
This is the data that is collected within the company that is as follows:
- Stakeholders: These are those who equally participate in the profit and loss of the company; these are employees, creditors, owners, suppliers, etc.; thus, they provide brief accords to their knowledge (Newman, 2018).
- Financial Reports: It is a report that is developed by the company itself and it includes the record of performance of the business with different products and services.
External Sources of Data Collection:
This is the data that is collected from outside the company that is as follows:
- Customers: Company collects the feedback and reviews in the form of questionnaires, surveys, etc.
- Journals: It is a secondary source of data collection as it is already published data of some author and that is needed for the business as it provides a brief about the already happened activities.
Analyze Appropriate Specific Sources and Methods of Data to Provide Justified Business Objectives.
Primary Source:
It is a source in which data is collected for the very first time by conducting the survey and collecting the feedback, by preparing the questionnaire, and by taking the interviews of different people. There are different benefits of this as it helps to justify business objectives, as follows:
|
Advantages of Primary source |
Disadvantages of Primary source |
|
As from this company gets the exact information as per there requirement. |
It is very time-consuming, as the collection of data takes a lot of time. |
|
Tesco gets accurate and reliable results from the primary source of data collection. |
It takes a lot of cost to get performed, as everything is conducted by humans. |
Secondary Source:
It is a source in which data is collected from already published data, i.e. from journals, books, articles, etc.
|
Advantages of Secondary source |
Disadvantages of Secondary source |
|
It is very much less expensive and very much practical work is required. |
Some companies don't get reliable results according to requirements. |
|
It takes less time to search the data as per the requirement. |
Somehow data is outdated and doesn't fulfil the objective of the company (Nicholas, 2018). |
Apply the SWOT Framework to Collate Evidence to Support an Objective Assessment of Entrepreneurial Idea.
To measure the strengths and weaknesses, Tesco performs the SWOT analysis as per the gained market knowledge, which is as explained below:
|
Strength |
Weaknesses |
|
|
|
Opportunities |
Threat |
|
Market and Competitor Analysis:
It is an analysis that defines the different aspects of Tesco and its competitors, which is explained below:
|
Basis |
Tesco |
Walmart |
ASDA |
|
Products and services |
Provides all the different merchandisers and groceries and covers all the relevant requirements of the customers. |
They provide a large variety of products and services, including retail goods, financial services, photo lab services, pharmacy, and many more. |
ASDA provides its brand products with other companies' products and also offers car insurance, credit card services, etc. |
|
Organisational structures |
Tesco has a hierarchical structure that helps them to focus on every department of the company, and they use that because Tesco is a very large organization. |
They are using hierarchical and functional organizational structures, follow the commands from the higher authority, and work in a vertical line. |
They also use functional hierarchical structures as they work on a large scale and have different functions. |
|
Major attractions |
They follow customer-centric approaches to grab the attention of the customers. |
Provides good-quality services and a better environment in their stores, with a separate column for every product that induces ease for the customers (Sedkaoui, 2018). |
They provide the holiday trip to their customers to visit the popular tourist attractions. |
Evaluate the Competitive and Market Environment in Which the Idea Will Be Launched.
PESTLE Analysis:
It is an analysis that defines the macro-environment factors of Tesco that are as explained below:
|
Political |
Tesco introduced the changes with that they need to follow all the rules and regulations, and the policy of the government and company gets the benefit of that as the UK government is very stable and doesn't fluctuate. |
|
Economic |
It is a factor that includes the interest rate, inflation rate, and all, thus the company gets the benefit of UK infrastructure if well developed, thus the company easily gets the land and labor as per the requirement (Shephard, 2019). |
|
Social |
As Tesco innovates its products and services for the customers and fulfills their requirements, that builds a strong relationship with those customers. |
|
Technological |
It includes technological advancement, and Tesco brings that by innovating the product and providing new herbal and cosmetic products to the customers. |
|
Legal |
The company must ensure that the product doesn't harm people and maintain the proper balance of all the required components within the product. |
|
Environmental |
The new product of Tesco is very environmentally friendly and doesn't harm the customers. |
Critically Evaluate a Specific Entrepreneurial Idea in the Context of Marketplace and Competition.
To be in a market for a longer period and to measure its competitive advantage, Tesco performs different functions. ThiThismpany compares the different slots as per their competitors and thus innovates the product that includes organic components (Uygur, 2019). As youngsters have an interest, and with that, the company gains a more competitive advantage. The market has those cosmetic products but that is very costly and it is not in range of all. Thus, it is very hard for the customers to use the product that they want. Thus, Tesco comes with a product that is more beneficial and less costly.
Formulate Valid Conclusions and Justified Recommendations on How Specific EntrepreneurialIdeas Can Beebe developed
It has been concluded from the above discussion that Tesco developed a product that is beneficial for all and covers both males and females. With that, they produce herbal and organic products for all skin tones that help reduce skin-related problems, thus a large customer base gets attracted to their new products and services (Yun, 2018). It has been comprehended that the company must collect monthly feedback and reviews from the customers and thus impart the changes as per the requirements of the customers.
Also read: Range of Business Ventures Accessible to Entrepreneurs
CONCLUSION
It has been concluded from the above report that different sources are used by an entrepreneur to bring innovation to the business. With that concludes the rationale and market gap for an entrepreneur by the usage of tools and techniques. The company also needs primary and secondary sources to collect the data that is related to their innovation . Then company performs different interpretations that provide the exact information about the innovative product that provides the competitive advantages. Furthermore, concludes the macro-environment factor with a SWOT analysis to measure the strengths and weaknesses of the business, To get more details about online assignment help, ask our experts.
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