Innovation Management Assignment: Tactical Planning of Tesco & Wal-Mart

Question

Task: Innovation Management Assignment Task:
You are required to undertake research on two innovative organisations in the same sector (for example, BMW and Toyota) that have headquarters in different countries. You will write a 4,000 word report on the management of innovation in those organisations.

Answer

1. Introduction
The following report on innovation management assignment illustrates the tactical planning of the two innovative organisations in the same sector and the report analyse the various aspects related to the globalisation of retail industry. Tesco and Wal-Mart are chosen in particular for the analysis as they have successful business for many years in the markets (Jocevski, 2020). Both Tesco and Wal-Mart are one of the biggest retail companies and have headquarters in different countries but work in the same field. The aim of this report is to evaluate two same sector retail businesses and it also studies the strategic innovations that are conducted by the retail organisation in the same global markets.

Background of the organisations:
The Tesco has established in the year, 1919 by Jack Cohen and it has become flourished because of its commanding brand and it has a superior range of goods as well as it has own label products. It’s a British multinational grocery businessandit’sheadquarter is in Welwyn Garden City, England (Awadari and Kanwal, 2019). It falls on the category of one of the most leading retailer worldwide, Tesco is consider the foremost food retailer in the United States. Therefore, Wal-Mart is an American multinational retail business which control sequence of supermarkets and retail stock from the United States and the head office is in Bentonville, Arkansas U.S. Wal-Mart was established in 1962 by Sam Walton. The business also possesses and operates Sam’s club retails storehouse. For number of years Wal-Mart has been the largest company in the United States.

2. An introduction of the two organisations with some of their core innovative end results
The meaning of innovative strategy depicts creative ideas andlatest technologicalimprovements.

The Marketing field of Tesco has largely expanded its business in United Kingdom through retail marketing in order to serve the nation the finest grocery shopping facilities (Jin & Shin, 2020).Now, Tesco using many strategies in their business which is extremely valuable in their business organisation. One of the effectiveness innovations of Tesco is “replenishment” function system and the use of this system is collect date from the checkout point. The Tesco company collects data in two ways, primary and secondary way and by applying primary information Tesco gets huge details, which is very operative and this known as “Row Data” and primary data helps secondary information in the organisation.

There are many factors that influence the nature of competition within and outside the industry. The distribution process undergoes in a specific way by utilising the modern technology to focus on the matter of affordable price. The contribution procedure of the company evaluatesthe dispersion of the sequence of the management procedure. Supply Chain management integrates the process of the management of supply chain, in the context of inventory management. Supply chain aids in determining what the suppliers are mandatory for the value chain and what virtues are need to meet with the customers demand. On the other hand, Wal-Mart always highlights the need to reduce the cost and the best price to its customer and Wal-Mart acquired goods directly from manufacture by transient all the intermediaries and the this company is sturdy moderator on cost and finalised a agreement when it was fully influenced that the products were not available in another place at lower cost.

Another innovative strategies of Tesco is that, Tesco looks into the Chinese market for development and there is a language barrier and is also lacked the facts about the Chinese market or for the recognized brands in the Chinese. For Tesco U.S is better environment to expand the business, cause UK and US have quite similar langue’s and there is no barrier of language and in different market Tesco adopt different strategies and as per that Tesco change their logistic situation and Tesco has a flourishing operations in the central Europe and Asia. Tesco’s strategies focus on creating new customers. However Walmartuse various innovative strategies during their expansion into foreign markets and Walmart has an approach in the international market that is obtaining weak troupe in that market, as in Canada, Wal-Mart acquired “Woolco” and this approach is helpful as it provides the global troupe to transform the weak troupe within a very less time. As its clear that Wal-Mart made various experiments in various international markets and along with that it used several store design to see which has the catchy and largest customers demand but every time it fails. At the beginning at Mexico,Wal-Mart used their strategy after perceived its failure, than Wal-Mart chosen the Global strategy for their market expansion.

Tesco has a different aims and objectives that they wish to earn every day. For examples “Cutting price” and “offering more in store deals”. Besides this being public limited company is that there will be greater access to the company’s financial performance. Well the key to achieve competitive advantage is the growth of retail low cost and high quality as well as great customer’s service that has led to profit growth. Whereas Wal-Mart is a public limited company and it provide something that people want in a low cost and global insight is hired by Wal-Mart to quantify the national benefits of Wal-Mart and it always gives priority to the superior customer as well as Wal-Mart has one of the renowned training and hiring program for its staffs. To offer low charge while achieving bigger profit is not at all easy but still Wal-Mart has do various resources like, human resource.

Therefore, innovative strategies are ways that certify the company that will give decent profit results and will be capable of continue its results. At the same time it gives the clear vision of the organisation. Strategic planning is the pillar of every organisation. Tesco follows the brand image strategy and which is very important, because the brand has a significant impact on its marketing strategy. Tesco has building an inventive slogan that is “Every Little Helps” this is really do help and Tesco is a world head in the retail market. Tesco have another title too which is “You shop we drop” which means, Tesco in the few past year started to deliver at the customer home and that was quite eye-catching offer.

WhereasWalmarthas replicated several of the technologies, and Wal-Mart positioning strategy was “Low Price” and “Satisfied Customer Service” which contain friendly service and pleasing shopping experience. Once the founderSam Walton said that “There is only one boss”. The customer and he can fire everybody in the company from the chairman on down simply by spending his money somewhere else” Which means Like every business organisation Wal-Mart priority is also the customer and customer want and desire is more vital.

3. Mapping and Criticizing the Innovation space of Tesco and Wal-Mart by Setting out Existing Practice
The actual meaning of innovation space or capacity is all about creating preferable choices in order to compete with other and to maintain the strategically order followed by the organization or individual. It is quite difficult to recognize the durable accomplishment and the disposal of business without any proper order (Alt, Berezvai&Agárdi, 2020). However, the innovation strategy isn’t an extensive process difficult to acknowledge but its curriculum can be eternal on the ways of learning procedure which will require enormous time and Endeavour. This entire paragraph will illustrate the innovation capacity of the two most prominent retail companies, Tesco and Wal-Mart by setting out their existing practices in which the reader will be informed about the marketing strategies, the innovation program and experimental culture of the organizations.

Innovation mapping of Tesco

Figure: Tesco’s innovation space mapping
(Source: Marketing Teacher Ltd, (2021)

The innovation mapping of any organisation reflects the four notable methods known as 4Ps. In the case of Tesco the innovation map represents several strategies or methods of innovation of the company regarding its Products, Process, Position and Paradigm. The above mentioned figure of Tesco’s innovation space mapping reflects:

• Throughout the product innovation, the company is representing several new products to the customers. Tesco has already expanded in USA and started a line of new supermarkets with its new and attractive group of products.

• According to the position, the Tesco Plc is leading in the UK marker with 28.8% share of the total market. Already the company has achieved a great position in the international market, but it’s currently trying to make its position more strong in the USA market.

• The Tesco Plc is implementing several strategies to enhance their innovation process, that are mentioned bellow.

Innovative Strategies of Tesco
One of Tesco's multinational retailer’s strategies is reflected on the title of his founder, Cohen’s, autobiography, ‘Pile it up and sell it cheap’ (Maital&Seshadri, 2012). But, with increasing buyer numbers and changing demands, Tesco changed its strategy and opened up town stores with more appealing interiors. Such renovations were also undertaken at existing outlets. At some of its stores, the start of the petroleum sale in 1979 broke the record of sales of £1 billion (Foster, 2021). A critical analysis of the innovative strategies of Tesco is represented bellow.

I. A Unique Brand
A powerful brand invents its own marketing plan within certain methodology which is an accommodating procedure for re creating brands utility in a different way. In every successful business organization like Tesco, there will be particular terms and conditions in order to enlarge the brand superiority to create incompatiblebrand recognition (Channaet al., 2020). Brands motive should always be focused on the fact of fulfilling customer’s consequent desire within affordable price and substantial quality. Thus, customer will be satisfied by obtaining such kind of service quality provided by this company. That is why the feedback of the potential customers of Tesco always plays significant role for a adequate promotion of the brand and that differentiate quality interconnect with the brand emotionally (Foster, 2021)

II. Reduce Operating Cost with Particular Budget
Savings can be an identical way to undertake certain economical burdensome situation for other possibilities. To continue the improvement of the economic condition Tesco always incorporate certain modification on the potential savings and the distribution channel.

III. Quality of the Product
The exceptional quality of the product of Tesco differentiates the brand with existing companies like Walmart, ASDA, M&S etc. This innovating procedure will lead the way of customers to interconnect with the brand by providing extraordinary products including affordable price. It is the eventual process of receiving tremendous support along with customer’s opinion. Competitive requirement also necessary for promoting the brand by applying particular strategy compare to other existing brand providing similar types products. As a result, the Tesco should be able to listen to the customers’ demands and ways to accomplish them. However, these innovative strategies will be applicable for specific area regarding the competitive field as to maintain the distinctiveness of the product. (Maital&Seshadri, 2012)

IV. Inventing Own Capabilities
To invent an exceptional innovating system any brand needs to go through in an expendable and desegregated manner. Thus, it will be effortless to measure certain variations and innovative techniques of the company (Galperin, 2020). Tesco has assembled initial attempts to modify the training related to the compound structure of the brand; the finance and marketing department in order to represent the brand differentiate with other competitive brands.

Innovation mapping of Wal-Mart

Figure: Wal-Mart’s innovation space mapping
(Source: Marketing Teacher Ltd, (2021)

The above mentioned innovation space map of Wal-Mart reflects, the company is enhancing their innovation through the product, position, process and paradigm.

• A vast range of items are sold through Wal-Mart supermarkets. You carry what people want to the market. It is easier to sell and promote a product those consumers like that and strive and get creativity to market.
• Wal-Mart uses an intensive delivery process or intense channel design. The approach includes the same range of merchandise and services in the stores and the e-commerce pages of the group, and all the shops operate similarly.
• The company is implementing several paradign or strategies to enhance their innovation and expand their business. Some of those are attached bellow:

Innovative Strategies of Wal-Mart
It is one of the enormous tech centric companies that take continuous initiatives to become multi tech innovator focusing on the subject of well maintained brand value (Krasyuk, Yanenko&Nazarova, 2020). The company succeeded in creating own brand value by reestablishment of digital transformation and breaking stereotypes. By adapting new methodologies Wall-mart proved itself to be the origin of success in the e commerce world.

I. Modifying Into Retail Landscape
In order to maintain a reasonable price, Wal-Mart has built a competitive structure to satisfy customer’s demands. It is the primal reason to represent the brand in the digital platform which has become accommodating for superior customization. The Wal-Mart technology has developed incredible structure within remarkable investment and partnerships. As a result it is very much comfortable for interchange of the company and interconnecting with the buyer through a compatible platform. However, the main target of the brand depends on the digital transformation to expand the business area. The technological improvements including versatility of product categories are the ultimate process of success in the global platform. (Boldbusiness, 2021)

II. Converting the In Store Experience
Wal-Mart innovation strategies enlarge the regulation process by major upgrades. Certain changes into lifestyle and food habits have been considered as responsible factors for interchange of the company (Nilsson &Göransson, 2021). As an example, the Wal-Mart app has time saving features which are beneficial for e commerce marketing. It is also accommodating to shop easily according to their daily needs. Thus, shoppers will be able to shop comfortably without any difficulties compare to any other online retail shops. In order to obtain proper details of the product customer has to undergo in a comfortable process which allows associating with the brand in every possible way.

III. The process of shopping
Different types of criteria have been seen in every business organization but only few of them are comfortable for the innovative progress. To become able to engage with the buyers, the company must require a consistent attachment with the brand through offline and also online. The digital program has been responsible for representing the company globally by creating such a digital. According to McMillon, the CEO of the company, “Customers want to save money and time and have the broadest assortment of items, and we think that by bringing e-commerce and digital capabilities together with the stores, we can do things that a pure e-commerce player can’t.” With the assistance of innovative strategy and technological achievement, Wal-Mart has received victory as one of the most leading grocery retailing company (Garget al., 2020)

4. Innovation Process and Management Procedure by Using Tidd and Besant’s 4step Model
The following chapter demonstrates the innovative progress and management procedure of the two most conventional retailing companies, Wal-Mart and Tesco. At a certain extent the intention of motivation should be depend on the fact to rationalize the organization in every possible way. On the matter of innovation theory, the opportunities are extensive and there are many incompatible ways in which it can become inhabited through incremental and radical resources. The consequences of global environment and continuous modernization of the business world has been responsible for the constant interchange in the process of innovation. In this chapter, the innovative progress has been accompanied by utilizing the method of Tidd and Beasents step model.

5. Identification of the recommendation to improve the innovation management of the two organisations
First of all, “innovation management” is the definition which termed as a manifest decamping originated to the conventional managementphilosophy, process and practice or else a removal of the traditional way of management process that considerablyalert the way of working progress to perform a superior path in this marketing field(Lowe & Wrigley, 2009). Thus it can be simply define Innovation management as the way new ideas are flourished and rectified until they became a reality. In the case of Tesco and Wal-Mart, innovation management plays a vital role, as both of the companies have a well market recognition and huge consumer base. So, both of the companies are applying several strategies to enhance their innovation management.

Tesco is among one of the biggest retailers in UK as well as Tesco innovation programme is generally the support of selected external start up organisations and that innovation power can deliver significant benefits to the organisation (Zhang, 2021). Tesco requires an innovation that would be in the variant of technology and at the same time that can eliminate the cost of staff and enhance its profit and compete its rival like, Sainsbury, Asda. Technology is very important section and the company should focus more on that.

Below are the steps which will improve the innovation management of Tesco:

• Establish an innovation strategy
• Setting frameworks for creating a structureof innovation
• Technology Management Framework
• Evaluate

Set up an Innovation Strategy
Well, there are various types of innovation and there are many ways to approach innovation management and the finest innovation are those that are simple and obvious and everyone can understand them easily. First Tesco should focus on the market, customers and competitors because the strategy choice flow is defining the right playing field (Krasyuket al., 2019). To be able to innovate and respond to customer’s need, first the organisation should listen to them and to be able to do that is essential for the improvement of the organisation and at the same time customers need and desire is important. Competitive needs and requirements are individuals and frequently very particular and unique theory is what that will make the organisation more innovative.

Setting frameworks for creating a structure of innovation
When the maturity evaluation has been completed, than the structural and organisational framework for innovation management will defined. Frameworks imitate number of topics of the front end of innovation (Pererva, Nagy &Maslak, 2018). Together with the customer Tesco can build a develop framework for future innovation and the prime step is about developing a familiar understanding of innovation.

Technology Management
Almost everyone knows Technology management deals with a lot of data in the assessment and communication of chances and risk of technological innovations and the interior task include collecting information and forecasting and elevate the internal communication on technological opportunities. While Tesco incorporate or adopt new technology, it offers feedback from the customers to assess the performance of innovation (Heller& F. K, 2017).

Evaluation
Evaluate is the final step for the success in innovation management and it is successfully improve and evaluate the organisation innovation efforts and quantify the potency of the organisation strategy helps to track growth and pivot if things are not going in the right path.

Now comes Walmart, it is the largest store in United States and it one of the big chain store of the world. Wal-Mart examines the life cycle of their products and Wal-Mart is using technologies like “Blockchain”, “ioT” and “Ai” etc (Laura Heller, 2018). Walmartsstrategy aims for technological, innovation, to be the best retailer and the Wal-Mart has utilizing the best and latest technologies to make the consumers experience improved.

Below are the steps which will improve the innovation management of Walmart
• progress of innovation
• Digitizing innovation board
• Technology Management
• Rhetoric into action

Progress of innovation
Progresses of management are an important aspect of the innovation management process. Whenever the best information have been combined and polished than it is the time to evaluate them to evaluation and this will helps Wal-Mart to ensure the best innovation in the organisation.

Digitizing the innovation board
When the foundations have already laid for “holistic innovation management “the individual processes can generally be step wise by software solutions and digitizing in innovation board is becoming very famous. At the same time it will raises its performance. Wal-Mart is typically leveraging its position as it is the biggest retailer in the United States to help its suppliers embrace digitization and compete against all the rivals. Wal-Mart must need to follow this process for its improvement (Krasyuk, Yanenko&Nazarova, 2020)

Technology Management
Well, technology is unavoidable in every aspect of life today, technology always made things easier and Wal-Mart works on the same strategy. Walmaertbegin with digital and computer operated, of individual’s stores with small billing machines and then unifies billing for record keeping and it is true that technology has typically grown by leaps and bounds and it has become progressively difficult to maintain large database of information (Alexander, 2020). Technology has been updated only in billing section and still there are some areas where technology has not been update but technology could be seek in those areas too to save the directory management. Wal-Mart needs to focus on these things for the improvement of their business.

Rhetoric into action
Rhetoric into action which means “walk the talk”, is something that has clear strategy and the necessary infrastructure to implement it. In order to achieve more success in business, Wal-Mart should set some clear goals that could help them to move forward through the right track.

Conclusion
In this report, a clear representation of the innovative procedure and their consequences of the two most successful retail marketing company (Wal-Mart and Tesco) have been discussed in a brief manner. Throughout the Critical discussion of innovation process and management procedure employed in the organizations utilizing Tedd and Besant’s 4 step model reflected certain information about the twocompanies and the utilization modern technology and their consequences on the innovative ideas. Although, it has been found that both of the Tesco and Wal-Mart should incorporate some new and effective innovation management strategies to get more achievements in the market, which are discussed above.

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