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By generalized meaning, strategic management is regarded as the formulation and implementation of organizational goals in company's processes. This is entirely managed by the top authority of the organization wherein the actions are based upon resource capability of the entity (Hill, Jones and Schilling, 2014). Furthermore, the emphasis is also required to be laid on external and internal assessment of business environment which has a direct impact on work processes. The present research study has been made in this context in which focus has been laid on strategic aspects of the organization and how it provides opportunities for growth and success.

The study has been emphasizing on Tesco which is a largest retail entity operating the business in the UK. Tesco has been planning to adopt new approaches to restructure organizational work aspects. Thus, considering the same, the discussion has been included regarding the contribution of organizational structural aspects on enhancing opportunities for competitive advantage. Moreover, the study has also been focusing on the scope of restructuring organizational work dimensions. Alongside, the researcher has also mentioned issues and challenges that usually arise at the time of restructuring organization. Strategic models have been applied in the research work to analyze company's external and internal environment.


Tesco is a British multinational grocery seller company, and it is headquartered in England. The unit head has analyzed that Tesco has been following the hierarchical organizational structure in which job roles, positions, and activities are divided into different parts. This aids the business entity to manage all the organizational operations effectively (Peppard and Ward, 2016). As per the structure, the top management of Tesco has all the authority to delegate roles and responsibilities among people. Therefore, it can be said that to enhance the scope of business, Tesco has been following hierarchical organizational structure. However, there are various issues which Tesco has been experiencing because of hierarchical structure and that also impact other functions of the business entity.

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There are four layers present in the management which generates bureaucracy; hence it impedes coordination and collaboration level. Therefore, there is a need to restructure organization so that layers present in the management can be reduced. This will also aid in enhancing flexibility in business processes and accordingly faster flow of information will be facilitated. Restructuring is required in Tesco because it is highly useful in undertaking effective business decisions. At Tesco, restructuring is required to implement new designs which can enhance business capability and effectiveness. There are numerous benefits which Tesco can acquire through restructurings such as reduction in cost, concentration on key products and services, incorporate new technology, utilize organizational talent in the best way, to improve competitive advantage and to reduce financial burdens.

The main reason here for restructuring is to leverage organizational capability so that in all the domains, activities can be managed suitably. Apart from this, non-monetary benefits can also be acquired through restructuring the organization. The growth of the company is dependent on various factors; hence it is essential for Tesco to implement necessary changes in organizational dimensions. This will also assist the employees to focus more on encouraging company's value and norms. In addition to the same, hierarchical structure also limits the scope of innovation and creativity because of less involvement of employees in the decision-making process (Eden and Ackermann, 2013). Thus, here it can be said that in the form of strategic management, changes can be implemented in organizational dimension and that can also encourage growth and success prospects.

Tesco will have to emphasize more on strategic planning so that short –term and long-term plans can be developed to improve existing management. Organizational sustainability is dependent on the ways through which business conducts all its operations and practices. While restructuring business, it will be essential for Tesco to enlist all the aspects so that strategic management process can be managed effectually. Afterwards, restructuring the business, Tesco will have to emphasize more on using organizational resources in an optimum manner.

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Concept and need of strategic management

Strategic management is the process in which business has to undertake decisions related to allocation and management of organizational resources. It requires appropriate formulation of strategies which leads to governing all business norms. Hence, it is evident that with the help of strategic management, goals and business objectives can be achieved suitably (Wheelen and Hunger, 2017). This will also allow the organization to monitor and evaluate business performance which could facilitate organizational progress. Strategic management could also assist business to enhance core competencies of the business entity through adopting new processes and activities.

Requirement of organizational restructuring

Organizational restructuring is the process in which changes and modifications are required to be implemented in business activities. The success of every organization is dependent on its structure; hence afterward identification of issues and challenges, business needs to restructure the entity. Revamping and reconstruction are essential for the purpose of facilitating smooth functioning of the organization (Rothaermel, 2015). After a certain period, it is crucial for a business entity to change the priorities so that new programs and plans can be implemented. With the help of organizational restructuring, a business can emphasize on quality aspects for better performance and productivity. While delegating duties and responsibilities, it is vital for an organization to adopt appropriate sequence as that will also aid in carrying out all the practices in a suitable manner.

As per the generalized overview, there are numerous advantages that can be acquired through restructuring the company; hence in the current scenario, all the organizations are emphasizing on revamping existing business scenario. Furthermore, restructuring is also useful in assisting the business to revive from the stage of declination (Bettis, Gambardella, A., Helfat and Mitchell, 2015). This is also useful in increasing the value of the business to a higher extent. At the time when challenges appear in the business entity, it is crucial to make use of new technology and processes to enhance the chances of growth and prosperity. In contemporary scenario, all the organizations are struggling in attaining competitive advantage; hence for the same perspective changes are implemented in business processes.

Moreover, restructuring is also significant for the purpose of enabling the opportunities of expansion in different geographical areas. Therefore, in short, organizational restructuring is useful in amending the chances of long term survival and success. It is also said that restructuring aids in positioning the company as a successful entity; hence business entity shows greater consideration towards the same. Preferences of customers are changing, and as a result, it leads the business entity to make favorable changes in the service dimensions. The restructuring also aids in developing new processes regardless of technological development (Morschett, Schramm-Klein and Zentes, 2015). Technological development is one such aspect that lies in the restructuring process, and that also encourages organizational value in external market place. Here, it can be said that restructuring can assist in managing things in the well developed way.

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Communication is yet another benefit that can be acquired through the restructuring of organizational processes. Organizational structure in crucial in maintaining appropriate communication and at the same it also enables the distribution of authorities. For instance- while restructuring the business, Tesco is required to funnel the process of communication through department leaders. This can also aid in minimizing organizational issues and challenges to a greater extent. When managers and employees experience issues in the organization, top leaders must take decisions to make better use of talent. This is also vital regarding enhancing organizational success and growth aspects. New opportunities can be enhanced through delegating duties and responsibilities appropriately among organizational employees.

The restructuring also denotes that organization is unable to manage the existing business practices; hence this is the main reason that leads the business entity to redevelop the existing operations. Transformation aids the business entity to grow more in a competitive world, and it not only improves the organizational standard, but also it assists in grabbing the attention of customers. Moreover, restructuring also drives the business more towards change in organizational design for coping up with the transformed business environment.

Issues present in the process of organizational restructuring

Restructuring is the process that is associated with many issues and challenges because varied changes are implemented in business functions. Poor organizational design and structure can bring multiple challenges to the entity; hence modifications are required to be executed on a continuous basis. Restructuring is essential to assist the business entity to adopt the ever- changing business environment (Morden, 2016). Organizational complexity can also be encouraged through adopting new and different processes. One of the major issues arises due to less involvement of stakeholders. Stakeholders are considered as the most important people in the organization and organization is required to emphasize on meeting the needs and demands of stakeholders.

The interest of stakeholders needs to be managed in such a manner so that it can help the organization to attain organizational aims and objectives. It has been observed that restructuring affects stakeholder's interest and this also impedes investment capacity (Frynas and Mellahi, 2015). Transition phase affects not only internal business activities but also it impedes external environment of the organization. Further, restructuring makes varied changes in teamwork which affect the performance and productivity aspects. Thus, on such basis layers of management could be reduced similarly to uphold the value of existing business operations.

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Additionally, restructuring requires financial investment; hence lack of financial capability can affect the overall business performance. In this aspect, it can also be said that bank debt is one of the burdens that hamper overall capability of the business restructuring process. The subsequent process requires working capital so that operations can be managed effectively. Supporting and reinforcing management holds more value in restructuring; therefore the absence of such thing can affect overall business standards (Stead and Stead, 2013). At the same time, while restructuring business standards, it is vital for employees to show greater commitment towards work so that existing issues can be minimized. Employee commitment can merely enhance organizational competencies.

Furthermore, restructuring requires employee accountability in which employees have to assure that they are capable of managing all business processes effectively. They are also required to assist the business during troubles and problems. Restructuring is required in the technological domain as well so that organizational standards can be amended. For instance- with the help of technological development, Tesco will be able to manage business processes successfully. Moreover, lack of transparency in business processes can also create different issues and challenges. Hence, while restructuring organization, necessary concerns should be taken into account.

Impact of organizational restructuring in enhancing business competitiveness

Restructuring has a direct impact on business competitiveness, and it can also make the business more efficient and capable. With the help of reorganizing, several benefits can be delivered to the employees who can also enhance employee satisfaction and loyalty. According to the generalized concept, restructuring requires changing organizational direction; hence most often it is useful in reducing the operational costs. Reduced organizational expenses can enhance productivity and performance level; thus overall business capability could be increased accordingly.

Additionally, when a business eliminates or minimizes layers of management, it enhances the chances of improving communication and decision-making process. Usually, business restructures the existing processes to introduce new technologies which also increase operational efficiency (Hubbard, Rice and Galvin, 2014). For instance- adopting new technological sources aids the business entity to record all the business aspects in accurate and correct manner. Restructuring can encourage business competitiveness through facilitating more control over organizational tasks and practices. Organizational efficiency can also be enhanced through the process of restructuring; thus it can directly contribute to increasing competitiveness level. Therefore, various aspects of the organization can be improved through restructuring and at the same time, it can also aid in addressing organizational issues and challenges.

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