Business Strategy for TESCO

BUSINES STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................2
LO 1.................................................................................................................................................2
Overview of chosen company......................................................................................................2
PESTEL model to analyze macro environment...........................................................................3
Mendelow’s Stakeholder Matrix..................................................................................................4
LO 2.................................................................................................................................................5
SWOT analysis............................................................................................................................5
VRIO framework.........................................................................................................................7
LO 3.................................................................................................................................................8
Porter’s five forces model use in context of TESCO...................................................................8
Ansoff’s matrix............................................................................................................................9
LO 4...............................................................................................................................................10
Strategic planning for TESCO...................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is defined in either varied paragraphs or be written as set of strategic
statements. It is conclusion of how firm can achieve their aims, meet consumer’s expectations
and sustain within market place to gain competitive advantages in specific marketplace. It is
simply as a company’s high degree plan for reaching and achieving specific business aims &
objectives. The current study is based on TESCO which fall under category of leading
supermarket chain in UK. This report will explain appropriate frameworks use to analyze macro
environment for company. It will justify internal environment and abilities of firm by using
effective methods or concepts and describe Porter’s five forces model use to examine
competitive forces of retail market sector in context of organization. Furthermore, this
assignment will explain range of concepts, models and theories that will help in creating strategic
plan for firm in effective manner at last in the study.
LO 1
Overview of chosen company
TESCO is considering as leading retailer in UK with over 400,000 workers who are able
to serve millions of buyers every week in online and their outlets, organization brand first
appeared in 1924. The vision of this company is to increase scope of business to allow
management to deliver strong and effective sustainable long term progress by following
consumers into wide expanding markets at new markets across UK and home. Mission statement
of this firm is to create greater value for target market to earn their lifetime loyalty as well as
trust. The main objective of enterprise is to offer a large range of services and products from
groceries, clothing to insurance and household items. Firm business was build with a simple
mission that is to the best retailer for people helping them to enjoy good quality of life as well as
an easier way of living. The goal of TESCO is to become leading retail supermarket and sustain
their position by providing good quality items and services at affordable cost.
PESTEL model to analyze macro environment
Political factor-

Political stability is one of this factor that put positive impact on TESCO business
practice and sales (Mercer, 2017). Firm home market is United Kingdom where political
atmosphere is stable though Brexit has developed a lot of uncertainty. In UK all of their overseas
markets are politically stable. So, it can be said that company is operating in those environment
that are usually conductive to organization.
Economic factor-
As the worldwide economies have been severely impacted by COVID-19, it is expected
that many local people earnings are goes down and many individual may lose their jobs (Drake,
and et.al., 2020). It can be said that after considering current situation government put pressure
on TESCO to hire people which makes their life normal.
Social factor-
Changes in buying behavior of consumers are one of the social factors that put negative
impact on sales and productivity of TESCO. In recent time, most people prefer to purchase
organic products because they think it makes their life health which is quite beneficial for them.
Due to this company feel more pressure and need to take appropriate action (Ramanathan,
Subramanian and Parrott, 2017).
Technology factor-
Technological development and advancements over the years provide the best
opportunities to TESCO. Company gain great benefits from this factor, they can reach at target
consumers by using digital marketing platforms which helps to gain attention of new buyers
towards purchasing products offer by firm (Walton, Petrovici and Fearne, 2017).
Environmental factor-
Retailers in UK, European union and in fact, many nations around the world are facing
high pressure from governments to consider environmental problems. This pressure is not from
UK government only, but also from consumers who are highly concerned about environment. It
do not put negative impact on TESCO, because firm already take number of initiatives,
management reduce their carbon foot print.