Business Level Strategy

Running Head: BUSINESS LEVEL STRATEGY
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Business level strategy/Generic strategies
1/2/2019

BUSINESS LEVEL STRATEGY
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Content
1. Introduction...................................................................................................................................2
Company Overview...............................................................................................................................2
Mission and vision of Tesco..............................................................................................................2
Current financial position of Tesco....................................................................................................3
2. Use of appropriate strategic models for the development..........................................................4
Swot analysis of Tesco Plc................................................................................................................5
Pestle analysis....................................................................................................................................6
Porter’s five forces analysis...............................................................................................................8
VRIO Analysis of Tesco....................................................................................................................9
Value Chain analysis of Tesco.........................................................................................................10
3.CSR activities of Tesco Plc..............................................................................................................12
4.Strategy............................................................................................................................................12
Corporate level (ANSOFT Matrix)..................................................................................................12
Bowman strategy.............................................................................................................................13
Recommendations for the Future strategy development in Tesco........................................................14
Using SAFE: Suitability, Acceptability, (stakeholder) Feasibility (skills).......................................14
Conclusion...........................................................................................................................................15
References...........................................................................................................................................16

BUSINESS LEVEL STRATEGY
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1. Introduction
The report brings about the discussion on the assessment of the models and framework to be
used in context to the contemporary organisations in business environment. The discussion
will reveal the strategy and application of models relevant to the work and operations of the
company. For the purpose of analysing the general business environment, and applying the
other related concepts of management and strategic business direction, Tesco has been
selected as the organisation. The models or strategies in this assignment will assist in
identifying the current market position, and the financial stability of the firm which will
determine the base of the Tesco’s development. The rationale behind conducting this research
on Tesco is to identify and provide some recommendations to ensure compliance to strategic
business goals and devise strategies to gain higher competitive advantage over other firms in
the retail industry in the market of the country.
Company Overview
Tesco Plc., a British multinational groceries and general merchandise retailer is located in
England, United Kingdom. The company ranks, third largest in the world in terms of gross
revenues, and ninth in terms of revenues. Tesco has globally expanded from the year of the
foundation and operates as a retailing industry, with the operations into a number of different
items which includes retailing of books, clothing, electronics, software, financial services,
and other internet services. Retailing or the business operating under retail sector are
described as the part of the economy which sells or trade through selling goods on internet to
the people around the world (Tesco PLC., 2018).
Mission and vision of Tesco
The mission, vision, and the goals of any organisation are interrelated and defines what an
organisation is actually seeking to attain in the future along with their strategies towards
attaining them. Mission statement of Tesco is ‘We believe in making what is better’ (Spear,
2017). However, vision of the company foresees development and growth in the future years,
as it states ‘To earn high valued by the customers we treat, the communities in which they
operate, and the loyal and committed colleagues and shareholders’. Thus, after an analysis of
vision, and mission of the company it has been found that Tesco operate with an objective to

BUSINESS LEVEL STRATEGY
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become a leading retail supermarket and provide superior quality offerings at reasonable
prices to the customers (Grundy, 2017).
The company has a hierarchical organisational structure which indicates the large size of the
business in the retail sector. As it has been found that even at the store levels, the company
has four layers of management in some of the large stores, and it deals in retail therefore
belongs to tertiary sector. In context to the UK retail sector, it has been explored that in the
country’s retail sector forms a significant part of the economy, which contributes 16% of
GDP and assures employment to around 3 million people (Marek, 2014).
Retailing in UK is considered enormous and influential business, as there has been
development or advancement in the operations from local to the international levels; as one of
the retailer Tesco. Thus, looking out at one of the best examples of retail business in the
country, it can be stated that the retail industry has been operating at the growth stage. This
factor determines the lifecycle of the industry and the various other firms operating under the
retail sector in UK.
To discuss about the current markets or market position of the company, in the United
Kingdom, Tesco has been recognised as the leading grocery retailer. In addition, the company
has captured 25 per cent of the market share, which classifies the company as ‘one of the big
four supermarkets’ along with others within region.
Current financial position of Tesco
Tesco has become a phenomenon in the retail market and enjoys a stable financial stability in
UK. The company has shown significant growth and achieved profits more than 2bn pound
sterling in a year. Further, discussing about the cash flow of the company in GBP i.e. Great
British Pound, it can be stated that in the year 2018, Tesco Plc. has achieved an increment in
their cash reserves approximately by 5.92%. The company within the same year has attained
2.78bn from their activities for the margin for their cash flows of around 4.84%. Thus, Tesco
has found to record the strongest growth in the last seven years with a high rise in their sales
(Tesco, 2018).