Strategic Planning of Tesco

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Explain the impact and influence of macro environment on an organisation........................1
M1 Critical analysis of macro environment................................................................................3
P2 VRIO analysis.......................................................................................................................3
M2 Critical analysis of internal environment..............................................................................4
P3 Apply Porter's Five Force model within the organisation context.........................................5
M3 Ansoff matrix........................................................................................................................6
P4 Strategic planning of Tesco...................................................................................................7
M4 Strategic Management Plan..................................................................................................7
D1 Data interpretation of Tesco..................................................................................................8
CONCLUSION:...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategy is defined as the course of action to achieve predetermined goals effectively and
efficiently(Goncharova, Kondratenko, and Zamaraeva, 2018). Macro environment play an
important role in an economy that includes various aspects such as national income, employment,
per capita income, GDP and so on. Tesco is one of the renowned supermarket in UK that deals with
wide range of products like groceries, clothing etc. and its aim is to meet the needs of customers.
This report cover elements of VRIO and Porter's model to determine the level of competition and
profitability of a business. This report also includes strategic management plan and the vision and
mission of an organisation and tactics used to achieve the goal of an organisation.
P1 Impact of macro environment
Business strategy is a action that help manager to achieve an organisation goal effectively
and efficiently(Shao, Tian, and Fan, 2018). In other words, it is a long term planning that involve
setting goals and mobilizing resources to execute an action. It help the organisation to gain
competitive advantage over others and provide direction for action. Tesco is renowned brand in UK
that aims to provide excellent services to their customer. The concerned firm is a multinational
groceries and it is the third largest retailer in the world.
Vision: The vision of Tesco is to be the most valued business and to guide the direction of
the organisation.
Mission: The mission of Tesco is to gain larger exposure around the world with full of
modern and innovative ideas.
Objectives: Tesco is one of the leading retailers that aims to provide quality goods and
services at a low cost as compared to their competitors.
Strategic planning techniques
Strategic planning techniques are well defined goals that sets target for future. With
reference to Tesco, the same are presented as follows:
Budget Planning: In this, Strategy is formed that is closely tied to an annually or quarterly.
The manager of Tesco formed the appropriate strategy in an appropriate time period.
Business Analysis: With reference to Tesco, the main motive is to earn profit and to satisfy
the needs of customers.
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Business Plan: A business plan is made by higher authority with a strategy to enter the new
market or to bring new and innovative technology(Rubenstein, and et. al., 2018). The respective
firm provide new products and services to gain competitive advantage within the market.
Market Analysis: this technique is very important to determine the new market trends and
customer taste by proper market analysis. It is very necessary to understand the market conditions to
meet the demands of customers.
Stakeholder Analysis: It is the process of assessing a system to analyse the behaviour of
stakeholders during the preparation of a project. The stakeholder matrix is a Below the stakeholder
matrix of Tesco are described as follows:
High Power and Interest
The stakeholder in this category are management and owners. This is due to the reason that
manager of Tesco can manage things properly for the achievement of goal.
Low Power but High Interest
In the context of Tesco, it is found that suppliers have low power and high interest in order
to keep the group satisfied because a wide range of goods and services are provided to meet the
demands of customers.
High Power but Low Interest
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