Global Strategic Management: A Case Study of Tesco's Business and Corporate Strategies

GLOBAL STRATGIC
MANAGEMENT
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Examining the business and corporate strategies used by the CEO of Tesco which has brought
about positive contribution to the organisation......................................................................3
Undertaking external and internal environment analysis along with an evaluation of how the
CEO at Tesco managed to overcome challenges...................................................................4
Describing the strategic tool or model that is being used by Tesco CEO to enhance its
organisational performance....................................................................................................6
Explaining how CEO of Tesco has created or developed the strategic planning in company7
Critical analysis of different contemporary strategic issues along with different levels of
strategy that is used by Tesco CEO........................................................................................8
RECOMMENDATION ..................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
The concept of global strategic management refers to a formulation of business policies
in a way that can be applied at international level business. This includes a real execution of
business strategies into actionable activities through which a business earns higher profits and
competitive advantage in market. The strategic management assists in having complete
organisational direction for a company. The global strategic management serves as a clear
picture & insight upon the globalisation effect within companies as well as in their management
which assists them in achieving their objectives at international level (Bolland, 2020). The
present report includes an examination of certain business strategies that are being used by the
CEO of Tesco, an analysis of external as well as internal environment with respect to solving
business complexities. Different strategic techniques, models or tools are applied in order to
enhance business performance along with an effective strategic planning. Lastly, it includes level
of strategy that is utilized by Tesco CEO through some theories.
MAIN BODY
Examining the business and corporate strategies used by the CEO of Tesco which has brought
about positive contribution to the organisation
The term corporate strategies refers to the plans or policies which a company includes in
its business operations. The corporate strategy which is being used by Mr David John Lewis who
is the CEO of Tesco is that he has focused upon industry specific as well as on media promotion.
This has done by David through following concepts which has bought the positive contribution
into the business:
 Regaining high competitiveness: This was the first priority of CEO where before him the
company was not able to maintain its market share in retail supermarket industry and
brand recognition. But after him through an effective leadership the company has
enhanced its sales as well as return in market has achieved their targets. This was done
through focusing upon recruitment of talented staff and providing training to the existing
one so that a company Tesco can have better availability of human resource.
 New structure of management: The CEO Mr. David is committed towards the
development of its management structure that focuses more upon developing motivation
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or morale of its staff members as well as upon providing higher services to customer.
They also created small divisions under the divisional organisational structure which are
allotted with different specialized tasks so that can consolidate whole objective into
smaller one and achieve their target effectively.
 Focusing upon international investments: Tesco at international level was facing huge
complexities due to which their existence became a major concern. Later with the
guidance of CEO Mr. David the company started its investment in international market
through remodelling company’s physical stores or extending the choice and reach for e-
commerce service. The company was able to gain its international market share again and
operated its business with this beneficial corporate strategy.
Through bringing the above changes the CEO at Tesco Mr David achieves organisational
success as the changes bought positive outcomes to the business which helped them in gaining
their brand recognition or market share back. Through this they are also able to attain
competitive advantage and accomplished the objective of business expansion.
Undertaking external and internal environment analysis along with an evaluation of how the
CEO at Tesco managed to overcome challenges
The analysis of Tesco's external factors are mentioned below:
 Political: Having a UK based company, Tesco use to function its business in different
nations. As one of the biggest supermarket in the world, the organisation is required to
follow different regulations like taxation, trade policies, etc. which ensures the safety &
compliance of all its offerings. Being a multinational operation the company faces huge
fluctuations in political stability or in policies due to which it is a challenge for Mr. David
CEO of Tesco to focus upon its business. In order to overcome this challenge the CEO
has appointed separate managers for each country of area of operation upon which they
individually can focus and conduct their operation with country's political stability.
 Economical: In order to be a successful multinational business it is mandatory for
company to be aware of different monetary or fiscal policies of country along with
inflation and other measures like policies in UK are different that of in US. Since all
countries possess their own economical policies which is generally different from others
and acts as a challenge for Mr. David to take care of all. In order to overcome this
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