Introduction:

Tesco is the one of the well-known retailer that is operating across the UK and in few other nations. In the present research study, entrepreneurial architecture is explained in detail in the report. Moreover, in the report business problem is explained in detail and along with this concept of corporate entrepreneurship and Intraprenuership is explained in detail. The strategic options are also discussed in the report and recommendations are made. At the end of the report, conclusion section is also prepared in the report.

 

Entrepreneurial architecture:

Leadership: At the Tesco leaders are giving good leadership to their subordinates as it can be observed that they are following democratic leadership style in the business. In the democratic leadership style individual takes advice from their subordinate’s before making final decisions. It can be observed that leaders are following the right approach because leaders always work at the ground level and they are better aware of the realities about the customer sentiments and employee sentiments (Clay-Williams. and et.al., 2020).

Strategy: Tesco is following lost price strategy in its business. Under this business strategy it offers its products at very low price to the customers relative to the rivals. This makes firm more competitive in the market. Due to adoption of the low price strategy in the business,the firm earns less profit in its business and this is its major problem. The firm need to deal with this situation in the proper manner. In this regard, it will need to adopt varied cost cutting strategies in its business.

Business problem:

Tesco is following lot of problems in its business. There are a number of reasons behind these problems and one of the main problems is the high cost in the business and low profit. Tesco has a large suppliers base and it offers a wide range of the products. It purchases these products at very low price from the suppliers and product manufacturers.  Consequently, it offers products at low price in the market relative to rivals. Due to follow up of such kind of strategy in the business Tesco grew its business at a rapid pace in the industry. On the other hand, with the passage of time its profit also shrinks because rivals like Aldi and Lidl offer products at cheaper rates than Tesco. Hence, to keep customers in the business, firm further reduces its products price and this lead to low profit in the business (Chen and et.al., 2019).

 

Critically evaluate the role of corporate entrepreneurship and Intrapreneurship as organizational responses to disruptive environmental change:

It is very important to understand the both these terms which are corporate entrepreneurship and Entrepreneurship. Corporate entrepreneurship is the process under which new business is developed or new product or service is developed by the business firm. This is done to create value for the customers and create new opportunities to grow the business. It can be observed that corporate entrepreneurship is the best way to respond to the disruptive environment change.

 

Strategic option:

Tesco is facing cost related problems in its business. Many times it happened that cost elevates in the business or due to the low price of the product firm earn less profit in its business. Thus, it becomes very important for the business firm to reduce or control costs in its business. In this regard, some strategic options that firm can follow in its business are explained below.

Less purchase of the products that are low profitable:  Tesco must evaluate its product portfolio and must eliminate the products from the portfolio that are not profitable. This is because products are already not profitable and heavy investment is made by the firm on the same products. Hence, cash blocked in the unused inventory. It can be said that this creates a lot of problems for the Tesco.

Improvement in supply chain: Tesco can look for improving its supply chain network wherever possible. More supply chain network will be improved in the business cost will be reduced and more profit will be earned in the business. Tesco is selling finished goods and suppliers will always produce goods at their fixed locations and due to this reason there is less flexibility in the supply chain (Danso. and et.al., 2019).

 

Evaluation:

Suitability: Strategic options that are suggested above are very suitable. Strategic options that are suggested are renegotiation of contract, bulk purchase, and improvement in the marketing of the products. Other strategic options are less purchase, of the products that are profitable and improvement in the supply chain.

Acceptability: Strategic options that are suggested by the business firm are acceptable in nature. This is because these strategic options will meet the needs of the varied stakeholders. These stakeholders are investors and customers.

 

Final recommendation:

It is recommended that all these strategic options must be adopted by the business firm because all these are feasible and it is possible to implement all these strategic options in the business. There are no constraints in the strategy. It is very important to follow all these strategic options because by following single strategic options large benefit in terms of cost cannot be received in the business (Olarewaju, 2020).

 

 

 

 

Conclusion:

On the basis of above discussion, it is concluded that Tesco is following lot of challenges in its business and high cost is one of them. Business firm needs to develop a strategy in its business so that cost can be controlled and minimized in the business. In this regard, the firm can follow strategic options in its business like bulk purchase, renegotiation of contract with the suppliers, improving marketing efforts, less purchasing products that are not in profit and reevaluating supply chain operations. By following all these options heavy cost cutting can be done in the business.

 

References

Books and Journals

Anderson, D. M. 2020. Design for manufacturability: how to use concurrent engineering to rapidly develop low-cost, high-quality products for lean production. CRC press.

Anderson, D. M. 2020. Design for manufacturability: how to use concurrent engineering to rapidly develop low-cost, high-quality products for lean production. CRC press.

Cao, K. and et.al, 2019.Optimal trade-in strategy of business-to-consumer platform with dual-format retailing model. Omega.82. 181-192.