Developing Organizational Vision

Tesco is a British multinational grocery store whose headquarter is situated in London (Hitt, Ireland, and Hoskisson, 2010). It is the third largest retailer in the world in terms of market share and second in terms of profitability. It majorly deals in furniture, groceries, food, clothing, etc. (Anbalagan and Arulappan, 2009). The market share of Tesco is around 30%. The present report will focus on the developing vision for Tesco along with how it can be communicated to its potential stakeholders. The implementation of vision as well as strategic direction will be discussed in the research statement (Criswell and Catwright, 2010).

TASK1

A group of persons who have certain interest in the functioning of an organization is known as its stakeholders (Kantabutra, 2010). Some of the important stakeholders of Tesco include its customers, suppliers, shareholders, government agencies, financiers, etc. (Martins and Terblanche, 2003). They play important and diverse roles in relation to the vision of the organization, of which some are enumerated below:

Customers: They are considered the most valuable asset of the organization, as all the products of Tesco are designed to keep the taste and preference of customers in mind (He, 2012). A consumer wants the best quality of product at the minimum possible value along with satisfying after-customer care service. Tesco delivers all such facilities to its consumers so as to build a trustworthy customer base in order to achieve its vision at an agreed-upon point in time (Kohtamäki, Kraus, and Mäkelä, 2012).

Government agencies: Government plays an active role in the activities of Tesco due to its operational excellence and commercial strategies. The various policies and procedures help Tesco in determining and framing of its vision as well as strategic direction (Warren, Howat and Hume, 2011).

Employees: They are the major workforce who invests their time and efforts to make the organization successful. The major expectation of employees from Tesco are job security, respect, adequate compensation, etc. Tesco tries to fulfil all the requirements of its employees so as to provide strategic direction (Smith, 2011).

Investors: These are the persons who grant their money in the organization so as to get better return on their speculation as a cause of revenue. They play very significant role in creating the vision and providing strategic direction to the organization, like Tesco (Rowley, 2003).

Several factors are there that can create the everlasting impact on the vision and the strategic direction of Tesco (Criswell and Catwright, 2010). Some of the factors include political, economic, legal, environmental and technological, which are mentioned as:

Political factors: include tax policy, labour law, and government support that deals with the public. It lays a great impact on the vision of Tesco as they provide direct and indirect support from the government at the time of financial crisis in terms of lending of loans and grants to Tesco, which has been observed during the course of action of recession (Randall, 2005).

Social factors: cover the aspects of change in lifestyle pattern, attitude, style, taste and preference of the consumers, etc. (Hitt, Ireland and Hoskisson, 2010). They play major role in planning the vision and providing direction to Tesco. With the help of this factor, organization will be able to produce goods and services to meet the tastes and preferences of residents of UK, as a result to which they have attained high profitability ratio (Adair, 2010).

Technological factors: technology plays an important role in order to deliver good amount of profits to Tesco. It has been found that the profit of the organization has increased by 21% due to investment made in technology, which has had a great impact on the vision of Tesco. It has been seen that with the help of new and improvised technology retail giant has delivered best quality goods and services to its clientele (Kohtamäki, Kraus and Mäkelä, 2012).

Economic factors: comprise changes in taxation policy, interest rates, inflation, exchange rate, etc. This factor has influenced the vision and strategic direction of Tesco up to a great extent. For instance, investment may be discouraged if rate of interest is higher. This is because it may charge additional to the borrower (Gilmour and Stancliffe, 2004).

TASK2

Vision is the reflection of the image of the organization. The vision statement is usually prepared for the period of 5 to 10 years in order to communicate value and purpose of an enterprise. This provides direction to the employees so as to how they have to act for achieving the goals of the association (Anbalagan and Arulappan, 2009). The vision of Tesco is “to create value to its customers for the purpose of earning their lifetime loyalty”. For achieving its vision, Tesco has a seven-part business tactic which showcases how the needs and tastes of consumers are changing as per the time. Vision is very important for an organization such as Tesco to see where it will stand in future (Smith, 2011). With lack of vision, it will not be able to stand competition for a long time. Strategic decisions as well as directions of the organization are guided by its vision. Tesco possesses some major elements that showcase what position it desires to acquire in future. The elements are mentioned as:

• Desire to be recognised at local and global level.
• Business with ample growth opportunities so as to earn more profits (Rowley, 2003).
• Innovative and creative ideas and thought processes, etc.

In regard to this, one more vision that can be created for Tesco is to frame business policies and products in such a manner so that it will be able to enhance customer loyalty along with implementing modern and innovative ideas in their service deliverability.

The most significant assets of Tesco are to earn loyal and trustworthy customer base in order to earn attention from society (Hitt, Ireland and Hoskisson, 2010). The main aim of the vision is to ensure that goals and objectives are achieved. All the major stakeholders of the business enterprise must be encouraged to attain the desired goals. Vision and mission play an imperative role in the success of organizations, which is recognised by the administration of Tesco (Warren, Howat and Hume, 2011).

In order to develop the strategic direction of the organization, such as Tesco, there are number of steps which are required to be taken by me as a manager. Tesco is very well aware of what matters most to society and according to that, it take care of all the people involved along with keeping track of timely feedbacks (Criswell and Catwright, 2010). This proves advantageous for retail giant so as to create strategies, plans, etc. and look forward for more opportunities. In order to solve queries of customers as well as to listen them, I can use methodologies such as survey, researches, events, home visits, etc. Tesco has formed number of tactics keeping employees in mind, as they play an active role in growth of the organization (Martins and Terblanche, 2003). I, along with my team, have created an annual anonymous viewpoint survey, which has to be answered by its employees in order to know about their views and suggestions regarding the working of the enterprise. We have also introduced the Knowledge Hub for sharing the best practices among the members of the staff. These all help Tesco in developing the strategic direction for its smooth functioning in the organization (Randall, 2005).

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TASK3

It is very vital for the organization to exchange a few words regarding its vision to its stakeholders for inspiring and motivating them, as they are very important for the success of the business enterprise. Appropriate communication strategy plays significant role in engaging stakeholders in communicating its vision effectively (Brown, 2013). The main rationale behind communication is that it should be meaningful and two-way with proper feedback from both the parties involved. There are number of communication styles which can be adopted by Tesco, such as verbal, non verbal, written, etc. Various techniques can be adopted by company for the same (Anbalagan and Arulappan, 2009). The management can adopt the system of video conferencing in the case where all the stakeholders are not available at the same time and at same place.

Even written methods can be used, which comprise notice boards, in-house magazines, annual reports, published literature, etc. to easily communicate the vision with its stakeholders (Kohtamäki, Kraus and Mäkelä, 2012). Tesco can even look forward to adopting face-to-face methods such as meetings, reviews, interviews, feedbacks, annual general meetings, etc. for adequate communication. Presentations and e-mails, along with external support and expertise, can be used by the administration of Tesco as some of the communicating methods (Gilmour and Stancliffe, 2004). In order to build support and assistance for the vision, Tesco can adopt numerous steps, which are mentioned as:

Communicate clearly and effectively: It is very important for the management of Tesco to communicate its vision clearly and effectively to all its stakeholders in order to ensure that they understood it in right manner. This acts as assistance in fulfilling and supporting the vision of the organization in prescribed framework of time (Adair, 2010).

Value and develop people: Appropriate vision can only be realized if the organization is well aware of the importance of people in the functioning of the company. For this, Tesco is required to have strong and reliable channels of communication, as the vision can only be attained by teamwork. A sense of accountability is very necessary in the employees of Tesco in order to support the vision (He, 2012).

Maintain and develop field of influence: Adequate resources are required by Tesco in order to make sure that the vision is accomplished on time with a cost-effective basis. So that it incurs a lesser amount of financial burden on the functioning of the business enterprise (Martins and Terblanche, 2003).

Developing the organization: All the decisions, along with the alteration in the vision that is needed by the organization, entirely depend on the analysis of the organization (Randall, 2005). The evaluation of Tesco is totally dependent on its vision statement. In order to support it, education, training, and development of the employees of Tesco are very necessary. It has even adopted some crucial steps by eliminating its employees who lack certain knowledge and skills (Criswell and Catwright, 2010).

Language: It is necessary to use simple and easy-to-understand language so that people can understand it without posing any difficulty. With the help of this, aims and objectives will be attained in a set period of time.

Equality issues: It is imperative on the part of management to treat each and every workforce equally in order to avoid any type of equality issues within the place of work.
Challenging behavior: Management has to face challenging behavior in terms of resistance to change among employees, so they need to adopt necessary actions for reducing the same.

External stakeholders are the people who influence and get influenced by the actions of the organizations, but they are not part of it. So it is important for the organization to communicate its vision and strategic direction to them also. There are a number of ways that Tesco can adopt for the same (Kohtamäki, Kraus, and Mäkelä, 2012). Business enterprises can adopt the technique of one-to-one conversation, which comprises maintaining personal connection in order to communicate vision and receive its feedback too. Tesco can adopt multiple forms of media for the same. This will help in creating a better understanding of vision in the minds of external stakeholders (Gilmour and Stancliffe, 2004).

Public relations campaigns, advertising, brochures, etc. are some of the ways to exchange a few words with external stakeholders while covering a large section of them in a short span of time. Visual presentations such as slide shows, PowerPoint presentations, etc. are some of the methods that can communicate the vision and strategic direction of the organization (Warren, Howat, and Hume, 2011). While communicating, adequate emphasis on language is required. Correct phrasing of sentences and use of proper words are very essential for the purpose of communicating in the right manner. In addition to this, management can use some interesting ways, such as theme songs, memorable and catchy slogans, and metaphors that can be created for this purpose, as this will leave an everlasting impression on the external stakeholders of Tesco (Smith, 2011).

TASK4

The behaviour of the leader in Tesco plays an important role in promoting its vision to the concerned persons. Leaders are considered the role models by the employees of the organization in order to embed the vision (Anbalagan and Arulappan, 2009). There are a number of leadership styles that can be adopted by the leaders of Tesco, such as autocratic leadership, democratic, participative style of leadership, and laissez-faire. Autocratic leaders are the ones who take decisions without consulting their subordinates and carry out functions as per their will. On the other hand, democratic leaders are one of the most suitable, as they consult their staff prior to taking any action. In a similar manner, in a laissez-faire leadership style, freedom is given to employees, and directions are provided as and when required (Hitt, Ireland, and Hoskisson, 2010). The leader of Tesco has adopted the democratic style of leadership (Rowley, 2003). In this case, the entire workforce is also drawn into the process of decision-making concerning the vision of the organization.

However, at the end, the final decision is taken by the leaders after consulting all their staff members. For promoting the vision in a much better way, it is required by the leader to properly communicate the vision for generating better understanding in the minds of the workforce (He, 2012). Leaders are the people who manage the changes prevailing in the organization. In Tesco, an active role is played by the leaders in terms of managing the different types of changes that may take place due to carrying out the vision. In order to develop as well as communicate powerful thoughts, it is required by the person in charge to perform better so as to achieve desired results (Adair, 2010). They have to follow some steps such as observe, reflect, write, and speak by the person in charge of Tesco to draw and motivate the employees in the direction of the growth and development of the organization (Warren, Howat, and Hume, 2011).

There are various things that are required to embed the vision in the Tesco. It is essential to create an appropriate vision statement, which comprises the values as well as defines the behavior of the employees with each other in the organization (Martins and Terblanche, 2003). This statement comprises the value of the potential consumers of Tesco along with the internal community and suppliers. The business enterprise can even mould its organizational culture as per the vision of the organization. If the language is not going very well with the vision of the organization or is not consistent, then in that case management can replace it for the proper embedding of the vision for the long run (Randall, 2005). Tesco can adopt the tactics of employee empowerment in order to successfully set in its visualization for the future. Organizations can even adopt various approaches for managing change in the business enterprise, such as the top-down approach, bottom-up approach, consultative style, etc., in order to easily implant as well as embed the vision in the organization without creating any hurdle. (Smith, 2011).

Vision is very imperative in order to derive the organizational objectives of an organization, which helps in setting the strategic direction of the business enterprise. Strategic direction acts as a link between the vision and objectives of the Tesco (Kohtamäki, Kraus, and Mäkelä, 2012). Strategic direction refers to the course of action that helps an organization achieve its goals and objectives. On the other hand, vision is where the business enterprise wants to see itself in the near future. Vision helps Tesco in achieving its direction (Gilmour and Stancliffe, 2004). Stakeholders of Tesco, such as consumers, employees, suppliers, investors, the government, etc., also play a very crucial role in deriving the organization's objectives in order to set the strategic direction. This is due to the fact that a prominent role is played by the stakeholders in setting up the vision as well as the strategic direction of Tesco. By considering vision, business enterprise will be able to set its strategic planning, which is being set up by the top level of management. This is due to the fact that it is their first and foremost duty to set operational objectives, as lower management can only follow guidelines (Warren, Howat, and Hume, 2011). The strategic planning process that is adopted by the organization, such as Tesco, for the purpose of execution of its plan is as follows:

Goals and missions: It is the first step that can be adopted by the management of Tesco in order to implement the strategic plan (Hitt, Ireland, and Hoskisson, 2010). Missions are considered the aspirations of the organization, whereas goals are the desired outcomes. Setting of both of them helps in proper execution of planning process of business enterprise (Adair, 2010).

Formats and contents of the strategic plan: The next step is to adequately format the contents of the strategic plan. The key contents of strategic planning are its vision, mission, values, and strategies. So all these should be in proper format so as to execute the strategic planning process of Tesco (Brown, 2013).

Development of plan: After deciding on the contents and format of the planning process, management should lay focus on the development of the adequate plan for the attainment of the desired outcome (Anbalagan and Arulappan, 2009). For the development of a successful plan, full preparation of the business plan is required by Tesco, including product development, market research of its products and services, management team building, etc. (Criswell and Catwright, 2010).

Resource allocations: Resources are very important in the strategic planning process of the organization. They play a very important role in the development and execution of the plan (He, 2012). Adequate allocation of resources such as financial resources, technical resources, human resources, etc. helps in achieving future growth of the organization, such as Tesco. It helps in the proper distribution of wealth for the purpose of strategic planning (Randall, 2005).

Targets and criteria for success: Last but not least, the final step of strategic planning is setting up targets and criteria for the success of the whole course of action. The criterion that is to be adopted should be SMART, which implies that it should be specific, measurable, achievable, relevant, and time-bound (Martins and Terblanche, 2003).

CONCLUSION

Attributing the above facts, it can be rightly said that stakeholders play a very prominent role in developing the organizational vision and strategic direction of the organization, such as Tesco. Various methods can be adopted by the management in order to communicate the vision to its stakeholders, including external stakeholders. The behavior of leaders also influences the promotion of vision within the business enterprise along with the analysis of vision embedded in the organization. The vision of Tesco helps the organization in translating the various objectives of the association in order to set the strategic direction, as well as outlines the strategic planning process of Tesco for the purpose of implementing the vision along with the strategic direction.

REFERENCES

• Adair, J., 2010. Strategic Leadership: how to think and plan strategically and provide direction. Kogan Page Publishers.
• Anbalagan, M., and Arulappan, A., 2009. Organization Values, Vision, and Culture. Deep and Deep Publications.
• Bonn, I., 2005. Improving strategic thinking: a multilevel approach. Leadership & Organization Development Journal.
• Brown, P., 2005. The evolving role of strategic management development. Journal of Management Development.
• Criswell, C., and Catwright, T., 2010. Creating a Vision. Centre of Creative Leadership.
• Curado, C., 2006. Organizational learning and organisational design. Learning Organization.

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