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Based on D’Aveni’s Hypercompetition and the new 7S Framework model, explain how your Tesco Online can build a sustainable competitive advantage

Economics Nov 04, 2020

Based on D’Aveni’s Hypercompetition and the new 7S Framework model, explain how your Tesco Online can build a sustainable competitive advantage.

Expert Solution

D'Aveni's 7S framework is Richard D'Aveni's approach to directing a firm in a high velocity or Hypercompetitive markets. it is designed to enable firms sustain the momentum of their competitiveness through a series of initiatives that are poised to give temporary advantages rather than just structuring the firm to achieve internal or external fit aimed at maintaining equilibrium that are designed to sustain unsustainable competitive advantages. Based on factors such as:

  1. Stakeholder satisfaction.
  2. Strategic soothsaying.
  3. Positioning for speed.
  4. Positioning for surprise.
  5. Shifting the rule of the game.
  6. Signaling the strategic intent.
  7. Simultaneous and sequential strategic thrust.

Tesco McKinsey 7S Model

Tesco McKinsey 7S model illustrates the linkage between seven separate elements of the business to increase the overall effectiveness. According to this model, businesses have hard and soft elements and shared values as soft element are the result of interaction of all elements with direct and huge effects on employee behavior and performance.

McKenzie’s 7s Analysis:

Shared Value: Shared Value of the company states the objectives of the company and it’s believes. Tesco believes in increasing its sophisticated management techniques from simple manufacturing companies to the value of higher standards and marched northward on their value chain.

Strategy: Strategy describes about the methods adopted by the company to achieve its goals. Tesco applied various strategies usually using Balanced Scoreboard (BSC) method.

Structure: It depends on the companies infra structure like top to down management. Tesco CEO thinks that they don’t need of one leader, they a whole group of employees from top to down to work on strategies.

System: System is based on how to finish a work like how important is the wok and how smartly it has to been done. Tesco used a steering wheel to achieve its pre determined strategies smartly simply used to help the employees in future.

Staff: Staff states about the number of staff in the organization. All over the world Tesco recruited more than 400,000 employees.

Style: It the style of the organization in which it works to achieve its objectives. Tesco used steering wheel to achieve its objectives. It has 90 degree arcs, in which four main areas are considered which are, financial, customers, operations and employee performance.

Skill: It describes the capabilities of the organization or the employees to a particular task. Tesco provides full knowledge to its employees to work effectively and efficiently within the organization. It provides skills to the employees to work according to the standards of Tesco.

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