Professional Documents
Culture Documents
Contents
Subject
Page
1. Introduction....4
2. Aims of topic...5
3. Creative and Innovative Management process in Tesco..6
4. Leadership to consistently stay creative and innovative in Tesco....7
5. Vision and Mission in Tesco: Assessment of their creativity and innovation....8
6. Potential creative and innovative ideas in Tesco...9
7. Benefits and risks of Creative and innovative ideas...10
8. Change models supporting implementation creative and innovative ideas.....11
9. Persuading the stakeholders of Tesco in terms of benefits of a creative and innovative management idea with
the production of an appropriate rationale.....12
10. Evaluation of the communication of a creative and innovative management idea to stakeholders of Tesco......13
11. Key goals for implementation of a creative and innovative management idea using feedback from stakeholders..15
12. Assessment of the barriers to the implementation of a creative and innovative management idea in Tesco.....16
13. Explanation of a plan of a strategy to overcome identified barriers to the implementation of a creative and innovative
management idea in Tesco...17
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14. Evaluation of the communication of a strategy plan for overcoming barriers to relevant stakeholders in Tesco.19
15. Conclusion...20
16. Bibliography......21
17. Self-evaluation..23
Introduction
This report as an interim assignment, has written to assess the creative and innovative management in Tesco Plc. To understand the level of
creativity and innovation in this well-known organization, it is necessary to look into the history of it, then to process and potency of innovative
and creative management in Tesco.
Tesco launched its own label healthy eating range of products in 1985, the first major retailer in the UK to do so. In 1992 the first Tesco Metro
store opened in Covent Garden and offered products tailored to the local market with a strong emphasis on lunchtime snacks. Since 1992 the
scheme of Computers for schools, has raised 185 million worth of equipment for schools around the UK. The Every Little Helps strap line as
a new campaign attracted 1.3 million new customers between 1993 1995 and Tesco Value was launched to offer the customers a wider
choice of products at a great price (Tesco, 2012).
In 1994 Tesco Express opened in London and been used as a traditional village shop. The Tesco Clubcard was launched in 1995 and attracted
nearly 5 million customers in the first year. Tesco opened its first Extra format store in Pitsea, Essex in 1997. Tesco Personal Finance as new
saving accounts exceeded all expectations and over 300,000 applications were received in this year. Tesco.com was launched in 2000 and has
grown to serve over 500,000 customers each week. Tesco Direct, the catalogue business, was launched in 2006. The catalogue provides an
extensive range of electrical appliances, home furnishings, toys and much more. In 2009 Tesco set out our plans to build a full service retail
bank after buying out the RBS 50% stake in Tesco Personal Finance. Following the acquisition, Tesco Personal Finance became known as Tesco
Bank. A new Club card app was launched in the UK in 2010, which gave customers a new way to swipe their cards in store. The new Tesco Asia
Academy opened in Incheon, South Korea. Each year 24,000 staff across Asia will be trained at the Academy. In this year the Friends Loyalty
Card was launched at Fresh & Easy in the US. The scheme gives cash rewards and bonus point coupons (Tesco, 2012).
UK trading profit
US trading loss
According to the financial review by Laurie Mcllwee, the Chief Financial Officer, The international businesses performed strongly, delivering an
18% increase in profits, which helped to compensate for the reduction in trading profit in the UK (Mcllwee, 2012).
On this basis the potential innovative ideas could be the following choices: In the United States, Tesco reduced losses, moving towards breakeven, before accelerating investment; in Japan, it announced its decision to exit the market after eight years; in China, it stepped back from the
freehold shopping centre programme and have decided to hold back on the pace of new leasehold hypermarket development for the time
being; at the Bank, it slowed down the migration to its own platforms to ensure it was as smooth as possible; and in the UK, it took a significant
step to correct its pricing position with The Big Price Drop and, in January, acted decisively to address the underperformance in its home
market. These actions will make Tesco better for its customers and are supported by a financial strategy that will also make Tesco better for
shareholders. Besides, Tescos trading in Asia has been successfully lucrative as it has surpassed the trading benefits from Europe and US.
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This scheme is made up of the basic orientation of Tesco toward innovation, as well as supports for creativity and innovation through the
organization. The orientation toward innovation must come, primarily, from the highest levels of management in Tesco, but lover levels can
also be important in communicating and interpreting that vision. On the basis of existing information, as Ambile (1996) suggested, it appears
that the most important elements of the communicating an creative and innovative idea in an organization are: a value placed on creativity
and innovation in general, an orientation toward risk (versus an orientation toward maintaining the status quo), a sense of pride in the
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organizations members and enthusiasm about what they are capable of doing, and an offensive strategy of taking the lead toward the future
(versus a defensive strategy of simply wanting to protect the organizations past position).
In terms of the value, Tescos vision for the future is to be the most highly valued business in the world. Valued not only by its customers, but
also by the communities it serves, its loyal and committed staff and its shareholders. Tesco is and it will remain a growth company. It will be a
modern and innovative company and it will win locally by applying its skills globally (Tesco PLC, 2012).
The primary organization-wide supports for innovation appear to be mechanisms for developing new ideas; open, active communication of
information and ideas; reward and recognition for creative work; and fair evaluation of work, including work that might be perceived as a
failure (Amabile, 1996). As Paul Wilkinson, the innovative ambassador of Tesco, recently said, we spend a lot of time applying new
technology in-store so that we can improve the shopping experience for customers or make lives easier for colleagues around the business. A
recent example was the introduction of mobile apps in-store, which enables our colleagues to use their phone cameras to scan products and
find out further information, such as stock levels, which means they can be even more helpful to customers (Tesco, 2013).
Wilkinson also added that good communication and teamwork are essential if we want to devise creative solutions. Its important to gather
ideas from people around the business, share our research with them and, most importantly, listen to our customers. My proudest moment at
Tesco so far came at one of our regular events, when my team won the Tesco Hackathon. The new app we created, Tesco Discover , was then
built and made available for customers to download. I think theres been a shift in the way people think about innovation. At Tesco, were
really open to new ideas and more creative than ever, but thats been driven by changing customer habits and the fact that people are much
more comfortable with technology its just a natural part of everyones daily lives. In my team, I find that exciting because it gives us much
more scope (Tesco, 2013).
Generally speaking, it seems that Tesco is well supporting the innovation ideas by providing variety of fashionable easy-to-access technologies
through making an open and active communication of information among its internal, connected and external stakeholders.
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Judgment
Playing by the Rules
Hard Work
No process
Misunderstanding
Causes
Resistance to new ideas and processes happens because its human nature to become uncomfortable
when confronting potential change agents. Management and leadership tend to resist because creativity
often means embracing uncertainty and may pose possible difficulties in measuring returns on
investment.
Fear of a new idea is often manifested as criticism and sometimes harsh judgment. People mock and
ridicule what they dont understand.
Policies and procedures, inflexible and rigid organizational structures, traditions, and a culture of playing
by the rules, are keeping employees from participating, stifling any innovative or creative processes.
Bringing ideas from development to implementation often takes a lot of effort or time to produce results.
Most organizations and employees dont want to devote the necessary time or effort to complete a
creative project.
Employees have ideas and want to share them but all they see is a dusty suggestion box. No other
channels to input ideas are known by members to exist.
Within an organization, creativity can be misunderstood by employees who are not creative in their work
processes. Sometimes management will have little knowledge of the type of work it takes to produce
creative projects
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Immovable Forces
Judgment
Example: Old habits, beliefs, and expectations cloud openness to new ideas and override creative
and innovative initiatives.
Strategy: Tesco should share stories about creativity and innovation in a workplace setting through
all available channels to put creativity into context and to disperse predetermined notions about
creativity and innovation. It also can build an Idea Library to provide resources that make creativity
more familiar identifying and communicating the benefits of adopting new ideas, for both the
organization as well as for the employees, to help gain acceptance.
Example: Employees who have ideas are reluctant to share because they worry that no one will like
the idea. They are afraid of ridicule or the implications of possible failure.
Strategy: Tesco should adopt a no-mockery ideology within the organization; Invite and inspire all
employees, from all levels and departments, to become involved with innovative enterprises;
Communicate failure and slipups as a necessary stepping stone to new approaches, products, and
services.
Example: A despotic environment has a tendency to force employees to conform to accepted
patterns, rules, and inherent limitations of the status quo. This hampers creative thinking and new
ideas.
Strategy: Although some rules are necessary, many can subdue innovation and ideas. Tesco should
consider if some of the rules can be changed, hassle-free, updated, or eliminated to make
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Hard Work
No process
Misunderstanding
Example: Pessimism takes hold even before beginning a project or a project is eliminated before it
even gets up and running. Lack of faith in the possible payoffs of a creative process can easily stymie
or eliminate what might have been the next big idea.
Strategy: Going afar the known, routine answers and allowing some time to discover more than one
answer takes effort. Tesco should inspire employees by making it a competition or breaking larger
initiatives into smaller, more controllable pieces.
Example: Past organizational experience shows employees that ideas put in the suggestion box
disappear into a black hole so employees dont bother to submit anything. They may feel there is no
reason to get involved.
Strategy: Tesco can make it easy for its employees to input their ideas through a variety of different
channels and technologies to encourage feedbacks; use leadership acknowledge and celebrate the
value of ideas even if they cant be operated; if an idea works, develop it.
Example: An erroneous impression of what is creative can result in workplace conflicts that hamper
productivity and creativity, or even create an unpleasant or unrealistic work environment for some
employees.
Strategy: Tesco should supply opportunities for all employees to use their creative side; provide a
milieu for ideas and innovation within the organization with creative examples; offer training
opportunities for employees to become more contented with their creative side.
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Conclusion
Since the first time when Jack Cohen built up a stall and earned 1 out of 4 in its first day, to establishment of Tesco plc. by merging to a tea
firm, then to development of the product to modern food industries, and to creating green labels for check out, to customers saving money
tags, then to computerising the checkout systems, to utilising new technologies, social networks and several apps, Tesco has been leading the
ideas toward creativity and innovation. Tesco innovatively raised its trivial asset of 30 to a bulky amount of 72.0 billion at the moment.
Change has been the most consistent element of Tescos business and consistency on innovation and proper decision making has been the
most rational reason for its success and being the third worldwide. By the use of updated information and technology, Tesco has been
incrementally adding credit to its capital and even its reputation.
Amabile (1996) stated that Creativity as a production of useful idea if be implemented properly produces the Innovation. She said if the three
components of creativity i.e. Expertise, Creativity skills and Task motivation foster by work environment then along with the three factors of
innovation i.e. Resources, Management practices and Organizational motivation, can lead to entrepreneurship. She suggested that by giving
the workforces a substantial freedom, positive challenge and project supervision, the organisation would be innovatively successful.
Tesco also by the use of Democratic style and transformational approach of leadership has given the wide opportunity to its staff to be
creative and innovative while to make sure about the business safety and processes, supervisors are assigned within the stores and also
awards and promotion is provided for winners of interpersonal activity competition.
Eventually, with regard to the urgent need of change for Tesco in the face of the stronger retailer, IDEAL model of change that stands for
initiating, Diagnosing, establishing, acting and Learning, it could be inferred that Tesco should respond to the changing market, by training its
staff, entering new markets and merging to the local entrepreneur retailers.
Looking at Wright brothers story of creative and innovative idea can make Tescos stakeholders to be convinced of the benefits of an innovative
idea. Tesco is well supporting the innovation ideas by providing variety of fashionable easy-to-access technologies through making an open
and active communication of information among its internal, connected and external stakeholders.
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Bibliography
Amabile, T. M. (1996) Creativity and Innovation in Organizatios. Harvard: Harvard Business School.
Clarke, P. (2012) Blog. [Online].
Available from: <http://www.tescoplc.com/talkingshop/index.asp?blogid=71> [Accessed 18 November 2012].
Clarke, P. (2012) Blog. [Online].
Available from: <http://www.tescoplc.com/talkingshop/index.asp?blogid=71>[Accessed 18 November 2012].
Every first (2012) HEROES: WILBUR & ORVILLE WRIGHT. [Online].
Available from: <http://everfirsts.wordpress.com/2012/08/04/heroes/>[Accessed 2 February 2013].
Idea Connection, 2013. Tescos Successful Open Innovation Experiment. [Online].
Available at: http://www.ideaconnection.com/open-innovation-success/Tesco-s-Successful-Open-Innovation-Experiment-00251.html
[Accessed 3 February 2013].
Lawson, B. and Samson, D. (2001) DEVELOPING INNOVATION CAPABILITY. International Journal of Innovation Management, V(3), pp. 377-400.
Luecke, R. and Katz, R. (2003) Managing Creativity and Innovation. Boston, MA: Harvard
Business School Press.
Mcllwee, L. (2012) Tesco PLC: Annual report 2012: Financial review. [Online].
Available from: <http://www.tescoplc.com/files/reports/ar2012/index.asp?pageid=21>[Accessed 18 November 2012].
Padfield, G. D. & Lawrence, B. (2003) The birth of flight control:An engineering analysis of the Wright brothers1902 glider. THE AERONAUTICAL JOURNAL, pp. 697-718.
TESCO PLC (2007) Innovation Leaders. [Online].
Available from: <http://innovationleaders.org/tes_company_profile.html> [Accessed 12 November 2012].
Tesco PLC (2011) Annual Report and Financial Statement. [Online].
Available from: <http://ar2011.tescoplc.com/> [Accessed 13 june 2012].
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Self-evaluation
This course was an aspirational experience to me as it equipped me with an intuition towards understanding of how to create, plan and
implement an innovative project in the business arena. I missed some of the classes due to several problems, which I wish I did not. I really
enjoyed every seconds of the course because of the tutors fashionable teaching tactics and his dominance on the subjects. I did not benefit
from the time I was free to discuss the topic with the tutor or I could not put the matters under the scrutiny during the course. Overall, for the
assignment, I poured every potency I had into it and I analysed the Tescos need of innovative ideas precisely. Nevertheless, I found out that I
need to be academically trained more to have profound point of view in this field.
Due to some hardships, I didnt have enough time to work on the second part of the assignment appropriately.
I must thank god helping me to complete this course and also professor Gupta for his guidance and support.
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