TESCO is the second-largest retailer in the world with multinational grocery stores and general merchandise based in the UK. It has stores around the world in14 countries in Europe, North America, and Asia. TESCO had begun to launch the Tesco Venture Brands range in 2011. But the sales were down due to low-cost competitor products. Then they re-launch the brand with new packaging as ‘Tesco Everyday Value’. EU meat adulteration scandal claiming that TESCO products have horse meat also had affected badly on the brand. Good, better & best products are the policy of TESCO and they have developed many brands related to this such as Tesco Finest, Healthy Living, Organic, etc.
TESCO is also providing home shopping services to their customers using their website. In this highly competitive world to sustain TESCO needs to get an idea about their market and information is quite vital for decision making. Communication is also very important for TESCO to make aware of their customers and stakeholders about business decisions.
DISCUSS THE RANGE OF DECISIONS TO BE TAKEN
As per the Victorian Government Department of Human Services (2012) to make a good decision experience, good information and interpreting the information correctly is quite vital. Due to this many organizations use consultants to take correct decisions. Aids such as techniques to clear the information for better analysis can be effectively used.
Organizations try to train their management for better decision making and even provide them with a supportive environment to take decisions without criticizing their actions. If a company has a culture of criticism and fear creativity and risk-taking will be problematic to a manager. So he would not be very successful in responding to market changes. Not only the managers but at all levels of business decision making can occur. There are strategic as well as tactical decisions in an organization.
Strategic business decisions are decisions that affect the overall business objectives but tactical decisions are the decisions that are taken in a day to day operations resolving minor issues. The decisions within an organization can be of many types as below
- Programmed Decisions- Decisions flowing the same routine and have become standard. They can be noted down as steps so others can follow these in decision making e.g. Sourcing products by TESCO
- Non-Programmed Decisions-There is no route and standard in these decisions.
- Strategic Decisions-These decisions affect the strategic long term direction of the organization E.g. TESCO Merging with another company
- Tactical Decisions- medium-term decisions taken when implementing a strategy e.g. Marketing decisions of TESCO
- Operational Decisions- short-term decisions used to implement the tactics e.g. What kind of products to be merchandise in stores (Macmillan, 2000)
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EXAMINE THE KNOWLEDGE AND INFORMATION NEEDED TO ENSURE EFFECTIVE DECISION MAKING
As per Fisher (2010), Information and knowledge play an important role in modern organizations. Due to the complexity of business processes people need a high level of knowledge, skills, and expertise. As market place is changing instantaneously so the ability to interpret and respond to this change depends on the amount of information and knowledge an organization has. Each level of management has certain kinds of responsibilities and to take decisions they need knowledge and information. Knowing the level of knowledge organization has is quite difficult as it differs according to tacit and explicit knowledge of each person. Even finding and choosing which knowledge is the highest value for the organization for decision making is also an impossible task.
As per CIMA (2007) organizations tend to apply timely new technologies to anticipate the changers rather than to respond to changes in business decision making. Knowledge and information an organization has should be properly managed with knowledge management techniques n areas of Improving existing business processes, new products, and services development and strategic position improvement.
This can be achieved by developing knowledge that is unique, apply the knowledge to innovate, competitive position strengthening, organization’s continuity safeguard, flexibility improve, attractive work environment creation and individual employee’s knowledge enhancement. Information and knowledge is quite vital to decision making in Human resource management, Marketing & Sales, Administrative systems, IT, production, etc. in TESCO
ASSESS THE INTERNAL AND EXTERNAL INFORMATION AND UNDERSTANDING
When considering internal and external information of the organization these are basically developed from internal and external stakeholders. The internal source of information is mainly collected from the inside of the organization. There are different kinds of internal information such as……………….