Entrepreneurial Strategies of Tesco Organization

Choose a good topic

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1) Rationale, background and rigorous analysis of an organization.........................................................3
2) Analysis organization’s strategic situation, capabilities and position..................................................4
3) Evaluation of a range of entrepreneurial strategies..............................................................................6
4) Market positioning strategy.................................................................................................................8
CONCLUSION...........................................................................................................................................8
REFERENCES..........................................................................................................................................10

INTRODUCTION
Entrepreneurial strategy is means by which a company establishes as well as re- establish
fundamental relationship set with environment. This is a strategy that characterized through
widespread and the less or more simultaneous change in pattern of the decisions which taken
through company (Anderson and et. al., 2015). It offers guide for the entrepreneurs that increases
potential for the venture scalability and also success of business. In conducting the present
report, Tesco organization has been considered and it deals in the retail sector. There will be
discussion about the Rationale, background and rigorous analysis of Tesco organization. The
strategic situation, capabilities and position of the organization will be analysis in mention
report.
MAIN BODY
1) Rationale, background and rigorous analysis of an organization
Tesco is leading brand of the supermarket in the Britain. This company was founded in
year 1919 by Jack Cohen. This has the shops in the seven countries across Europe and Asia and
market leader of the groceries in United Kingdom, Thailand, Ireland and Hungary. Tesco has
managed to garner so more customer popularity that its stores have been crosses United
Kingdom boundaries and also reached 12 other countries across Asia and Europe. This has
developed into leading supermarket chain of world. The innovation team in Tesco aim is to go
from the initial idea to less viable goods within the six weeks. Once or the twice in a year they
run the hackathons where around 350 people are work intensively in the team in order to develop
the working prototypes of the ideas for deal with the business challenges (Collis, 2016).
The main rationale behind this report is that it provides the information about the
capabilities and the marketing strategies of the company that mainly used to be successful. There
has been analyzed about the entrepreneurial strategy of the Tesco. For analyze the marketing
positioning, Tesco organization used the marketing mix. In order to examine the organization’s
strategic situation, capabilities and position, Tesco company uses the VRIO model and PESTLE
analysis (Engelen and et. al., 2015).

2) Analysis organization’s strategic situation, capabilities and position
Situation analysis
This is a process of evaluating critically about internal as well as external situations
which impact on company. This gives knowledge to determine present opportunities as well as
challenges to company, products and services. For the external analysis of company, there has
been PESTLE analysis considered (Gans, Stern and Wu, 2019).
PESTLE analysis
This is a business tool that has to be performed to figure out which external factors may
cause issues for the organization. This is helpful because in this specific scenario performance is
improved. It can even direct company to new market from where company can make a profit.
The PESTLE analysis of Tesco mention below:
Political factor - In 12 countries, including Asia and Europe, Tesco Company operates.
This is subject to numerous political factors that may affect Tesco 's operations. Factors are
considered such as tax rates, existing and imminent regulations, political turmoil, unemployment,
the economic situation of countries where the business is involved. The local council proposed
the tax on large supermarkets called the 'Tesco Tax,' but the UK government mainly rejected this
initiative in order to avoid the price increase. The Tesco can be negatively impacted by similar
policies in future (Garg and Eisenhardt, 2017).
Economical factor - Labor costs can affect UK supermarkets as a significant economic
factor. The annual wage bill is GBP 4.5 billion. The UK minimum pay rate for the age of 25
years and above is raised by 4.4 per cent in 2018. This upgrade cost Tesco millions of pounds in
Great Britain. A lot of other factors, such as quality, prices and the profits affect Tesco. Higher
borrowing rates in Britain will be the priority of the business (Hartsfield and et. al., 2017).
Social factor - With time, consumers are changing the shopping trend constantly.
Customers are on difficult times and want flexible return policy on products the same day and
quick delivery. Tesco depends on British customers. In order to cope with these problems, Tesco
must recognize as well as provide services. The market for goods and services is often associated
with the consumer's values and attitudes (Jessop, 2019).