Assignment on Strategic Planning of Tesco

BUSINESS
STRATEGY
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TABLE OF CONTENTS
TASK 1............................................................................................................................................4
A. Assessment of strategic planning context of Tesco...........................................................4
B. Factors involved in developing strategic plans..................................................................7
C. Strategic planning techniques for Tesco............................................................................9
TASK 3..........................................................................................................................................11
A. Analysis of strategic positioning of organization by organizational audit......................11
B. Environmental audit of Tesco..........................................................................................13
TASK 4..........................................................................................................................................17
A. Roles and responsibilities of the staff at Tesco...............................................................17
B. Analysis of resources required for implementing the proposed strategy.........................18
C. Importance and implementation of SMART objectives for the proposed strategy.........20
REFERENCES..............................................................................................................................22
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ILLUSTRATION INDEX
Illustration 1: Strategic planning context.........................................................................................6
Illustration 2: Contribution of various components of strategic planning.......................................8
Illustration 3: Strategic model.........................................................................................................9
Illustration 4: BCG Matrix.............................................................................................................11
Illustration 5: value chain analysis................................................................................................14
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TASK 1
A. Assessment of strategic planning context of Tesco
Strategic planning is the very crucial part of the business operation. It is the process of
defining the strategy and making decision for allocating resources to enhance the mechanism of
the company and thus delivering high results for the organizational success (Eigenhuis and Dijk,
2007). The given case scenario provides effective information about visions, missions,
objectives, goals and core competencies of the company. This effectively helps in delivering
high value to the strategic planning of the company.
Illustration 1: Strategic planning context
(Source : Franz and Petersen, 2012)
 Vision: The vision statement of the company provides a futuristic plan about where it
wants to be in the coming future. It plays a significant role in attaining long term success
of the business. Tesco has developed an effective vision for the growth and development
of the entity which provides an aspiration view of where it wants to be in the future
(Fernando, 2012). It sets a benchmark for the company which assists it in developing
effective growth strategies. It creates a foundation for the company and directs it towards
the core business objective.
 Mission: Mission statement of a company helps in developing an effective impact on the
overall growth of the company by expressing overall purpose of business. The mission
statement of Tesco is simple and expressive which has helped in communicating the
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goals of business to all its stakeholders. It creates an effective impact on external
stakeholders and consumers as well. It helps in developing Key performance indicators
which inturn helps in monitoring the overall performance of the company.
 Objectives: It defines the core purpose of the company to develop effective impact on
growth and development within current market situation. Objectives of Tesco defines
long term goals which are in alignment with vision and mission statement of the
organization. It clearly defines the major purpose of the company for specific time frame
(Fulford, 2013). The objective helps the company in developing growth plans for the
organization to enhance its market share and establish brand image within the economy.
 Goals: These are specific and time-bound goals which helps in defining specific actions
that a company must undertake for attaining success within the market. Goals are short
term plans of the company which are based on the objective of the company. Goals of
Tesco simplifies the objectives to develop attainable plan of actions which helps in
communicating the business objectives to employees in simpler way.
 Core competencies: These are the functional areas that have been effectively developed
and mastered by the organizational units and are the source of the highest sale generation.
The core competencies of Tesco are the retailing goods and services. The organization
has created a well established position for the same in the global economy (Galbreath,
2009). This helps Tesco in creating an effective impact on the consumers d competitors
as well. Core competency helps in analyzing the major strength of the company which
helps in creating maximum sales.
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The above strategic planning context of Tesco reflects the efficiency of the organization
in developing an effective impact on the growth of the organization. Strategic planning seeks to
develop the short-term goals to achieve long term success. The process of strategic planning of
Tesco helps the company in the same. All the mentioned components contributes highly in
developing the strategic planning for Tesco. The vision and mission statements are the crucial
components of communicating organizational purpose to major stakeholders of the organization
who have high level of contribution in growth and development of the business. These
components provide direction for business plans. Strategies are developed to enhance the
competitiveness of the units and helps in developing a winning edge for Tesco. This helps in
determining how the company must process to attain vision and mission. Goals and objectives of
the company are developed on the basis of strategy and it highly contributes in defining the
measures to gain success within the market. Thus the above discussed components helps in
delivering high level of growth for business.
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Illustration 2: Contribution of various components of strategic planning
(Source: Ghezzi, 2013)