Business Strategy: Analysis of TESCO's Competitive Position

This presentation analyzes the business strategy of TESCO, a major British retail organization operating internationally. It delves into key strategic theories, models, and frameworks relevant to TESCO's operations, including corporate-level, business-level, and functional strategies. The presentation also explores various models like strategy maps and gap planning, along with the application of product differentiation strategies to gain a competitive edge. The organizational audit examines both internal factors, such as strengths and weaknesses (SWOT analysis), and external factors through PESTLE analysis, impacting sustainability and competitive position. The presentation also discusses Porter's generic strategies (cost leadership, differentiation, and focus) and concludes by emphasizing the importance of business strategy in addressing organizational challenges and achieving sustainable market positions. The references used are also included.

Business Strategy

Table of Content
Introduction
Key strategic theories
Models
Types of business strategy for obtaining competitive-edge
Organisational audit of the internal and external factors that
affect sustainability and competitive position
Porter's generic strategies
CONCLUSION
References

Introduction
The term business strategy refers to the action, tactics,
plans etc. that is used to perform all work according to
decided action and decisions for completing work
according to organisation goals and objectives. In
simple terms business strategy is explained as a way
that guide decision-making process to hire and allocate
all resources towards company goals and objectives.
This report is written from perspective of TESCO
which is a well-known British retail organisation that
perform work in international market.

Moreover, this report highlights on key strategic
theories, model and framework to implement them in
TESCO business. Business strategy will also be
formulated to obtain sustainable position in market. In
the last, two possible strategies for completing work
with decided strategies will also included in this report.
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Key strategic theories, model and conceptual
framework for organisation
Strategy-making is engaged and identify as the way by
which organisation undertake and accomplish
company target. Strategic theories that are beneficial
for TESCO are mention as below:
Corporate level strategy- According to corporate
level strategy management define the market and
business by which organisation operate business as
per top level management. It also describe overall
direction for managing task with product lines.

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Business-level strategy- This is explained as the business-
unit level strategy. TESCO higher authorities are responsible
for formulation of business-level strategy. In context of
TESCO management formulate strategy that leads to make a
competitive-edge in market.
Functional strategy- Tesco perform work with functional
strategy because it helps in completion of work according to
each department. Moreover, functional strategy aids TESCO
to complete all task according to various retail section.

Models of business strategy
Strategy map- This is explained as a business tool that is
used to communicate effective strategic plans to
accomplish various goals in decided time period. Further, it
is easy way to complete work as per balanced scorecard.
Gap planning- The term gap planning refer to the need-
gap-analysis this is used to complete work that primarily
identify for specific details. “Change agenda” define
perspective gap planning that makes specify internal
deficiencies.

Framework
Strategy framework are the tools that makes and
formulate an organisation strategy in order to complete all
task with organised approach. This is also used for answer
about fundamental question in order to solve all problems
that generate barrier for organisation. Selection of right
framework leads TESCO to complete all task in an
organised manner.

Types of business strategy for
obtaining competitive-edge
The existing conditions of marketing are too
competitive so it create competition for TESCO due
to which it is complex to retain better position in
market. In the context of TESCO it is analysed that
with use of business strategy this is easy for
management to complete all task in an appropriate
manner. Business decide strategy by which size and
nature of organisation work as per competitors.

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Product differentiation strategy is appropriate for
managing the prices which is deemed as per essential
factors. One of the major reason behind strategy is to
manage and deal with machine-manufactured units for
offering products that is easy to customise by
organisation. Moreover, customer is ready to pay more if
nature and value of product is similar with the price of
product. Professional cleaning services provide services
to package because it leads to sell all products according
to terms and conditions in order to deliver better value
among products. This also define management gain and
obtain value that leads to gain competitive-edge in
market by accomplish aim of obtaining sustainability in
market.

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Along with this product differentiation strategy is also
beneficial because it leads management to expand their
business size by providing valuable products which satisfies
need of customer in an organised manner. Example- TESCO
provide all types of product in their store so with use of
product differentiation strategy range of products is also
increased. This leads management to increase and enhance
size of respective organisation into different countries.

Organisational audit of the internal and external factors that affect
sustainability and competitive position
In order to understand external business environment PESTLE
is known as an effective tool. TESCO use selected to improve
the supply chain of organisation because it helps to design and
formulate supply chain strategy according to external
environment of business. Moreover, the current situation of all
industry and market at global level is complex because of
pandemic conditions in market. Further, goodwill of TESCO
is also improved if management provide all products with high
value within decided time-period. Along with this TESCO is
present among different markets that relate with local and
international level so the increase in marketing also create
challenges.