Tesco PLC: Strategic Management Analysis in a Global Context

This report provides a comprehensive analysis of Tesco PLC's global strategic management strategies, focusing on the impacts of Brexit, COVID-19, and the Ukraine war on its business operations. It begins with an introduction to global strategic management, highlighting its importance in today's interconnected business environment. The report then delves into Tesco's existing strategies, including creating a differentiated brand, reducing operating costs, maximizing property values, and fostering innovation. A SWOT analysis identifies Tesco's strengths (brand image, marketing skills, innovation), weaknesses (listing management, quality control), opportunities (online growth, customized actions, technology adoption), and threats (pricing policies, competition, economic recession, supply chain disruptions). The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors affecting Tesco. Furthermore, the Ansoff Matrix explores Tesco's market penetration, product development, and market development strategies. The report concludes by summarizing the key findings and emphasizing the need for Tesco to adapt to changing market conditions and leverage its strengths to maintain a competitive advantage.

Global Strategic Management
(Individual Report)

Table of Contents
INTRODUCTION................................................................................................................................4
MAIN BODY.......................................................................................................................................4
SWOT ANALYSIS..........................................................................................................................5
PESTLE ANALYSIS.......................................................................................................................7
ANSOFF MATRIX..........................................................................................................................8
Justifications....................................................................................................................................9
CONCLUSION..................................................................................................................................12
References..........................................................................................................................................13

INTRODUCTION
The Term global strategic management is referred as the combination of Globalization and
its implications on the corporate world. The business landscape has changed drastically as the
Globalisation is increasing day by day. There are various Business and organisation which are
stepping towards the Global business Environment so that they can achieve effective and efficient
ways to maintain the well known reputed position in the market along with the motive of profit
earning. The Global strategic management involves The mixed set of Economies to design the
Business strategy that encompasses all of them, Diverse talent Pool which is related with the
markets showing the influx of new talent in the form of re- employment of older workers and The
Bigger and better competitors which is related with Biggest challenges and other competition facing
by the various business and the organisation which can effect the performance. Global Strategical
Direction unwrap how the business managers secure the competitor advantage and make effective
cognition on a global scale (Aithal and Aithal, 2019).There are various theories which are supported
by diverse and real world examples from the global organizations, including Ikea, Google, and
Walmart which Analyse how successful organizations develop, utilise, and manage their global
scheme to compete effectively and efficiently at an global level. The global strategic management
Tackles key topics and rising issues including CSR, invention, knowledge management, and ethics
Including the key concept boxes, proceeding studies, and diagrams to see the complex direction
theories are clear, approachable, and linked to real-life enterprise examples. This report will be
based on the change in Business strategies due to the introduction of the Brexit policy, COVID 19

and Ukraine war which have Affected the various business and the organisation of UK including the
opting of advanced and new Policies to encourage the proper functioning and analysing the effects
on the business as well.
MAIN BODY
Tesco Plc is a well reputed company of UK which deals in the Retailing sector by providing
various products and services to the customer, to provide them with the best of their Quality. The
company is a large organisation which is having very complex operations and other Activities
which are required to perform effectively and efficiently. The Tesco enterprise strategy accept in
expanding into a collection of acquiring the new stores, retail services and adjusting to the needs of
consumers (Arıcıoğlu and Yiğitol, 2019). The main goal of Tesco business model is to provide the
customer not just in the UK but around the world by making them happy. There are various exiting
strategies of Tesco which are given below:
 Creating a differentiated brand
The company is more focused on promoting the different brand so that it can stay effective and
efficient in the long run long with maintaining a good position in the retailing sector of UK. The
company has made significant brand progress by which the strength of the organisation has been
increased. The company is well focused on maintaining the Unique brand position to provide the
opportunities to the customers so that it can provide the excellent quality of goods and services to
the customers.
 Reducing the Operating cost
Tesco is also having its strategy to reduce the operating cost by 1.5bn to simplify the way its stores
are operating. By reducing the operating costs, the company can cut its overhead expenses and it
can also gin various benefits so that it can generate more revenue in the market. the company is
Encouraging the cost savings which can be helpful for the Business and the organisation to manage
the different functions in the organisation.
 Maximising values from property
The company is having a significant property portfolio which is relate with the combining of both
freehold and leasehold assets. The company focuses on looking towards various opportunities that
are being provided to them to increase the functional capability of the Business by carefully
utilising the freehold and leasehold mix.
 Innovation

The company is more focused towards promoting the innovation as being innovative can be helpful
in proving various opportunities and new aspects to look after the things which can be helpful to
encourage the business (Bradbury and Galloway, 2021). The innovation is related with the creation
of various goods and services from the different point of view and developing them in a better way
so that they can be effective to gain various benefits and advantages in the market.
SWOT ANALYSIS
The swot analysis is an approach of promoting practical ,realistic and fact based look at the
strengths, weakness, opportunities and threats of an organisation.
This is basically used to find out the core strengths and competencies of the organisation to get the
maximum efficient and effective result.
Strength:-
 Tesco has a reputed company which have a good brand image as it is diversified
internationally, having a huge number of stores in different countries.
 Effective and efficient use of application and marketing skills are the two core strengths of
Tesco (Goud and Goud, 2019).
 The company is also focused on innovation buy which it is gaining different advantages in
the UK market sector.
Weakness:-
 The listing management system of Tesco is not good, as it plan of action the product post
their end date, playing carelessly towards the issuing.
 The company is allotment few of its items, due to the terror buying attitude of customers.
 The Quality controls of the company are want to be improved as it is not being impressive
towards maintain the superior controls. The customer complaints are making it immediate to
take action upon the effective and efficient quality controls.
Opportunities:-
 The online system of buying is exploding day by day. as people are being more technology
affable, so boost online grocery shopping can be a good step to motion in the market.
 Encouraging More action with customised through their action and exploring more in terms
of their orientation can assist the company to attract customers.
 The introduction to various advanced technologies such as AI and machine learning have

made it easier for the various business and the organisation to promote their business, Tesco
can also improve their technological efficiency by opting various advanced technologies and
software so that it can perform in a better way by which the Functional ability of the
company can also be increased (Martínez-López, 2020).
Threats:-
 pricing policies among the challenger can act as a threat to Tesco. as lower prices of the
utility can shift the buyers to influence their production from another place.
 Increasing contest in the market can act as a threat to Tesco, as ASDA, the competitory firm
has exchanged their hand from wall mart to billionaire Issa brothers, promoting their share
in more state.
 The Economic recession is the biggest threat to the company and the decrease in the
purchasing power of the customers has also effected the company in various ways.
 The Supply chain was also effected in different ways as the Brexit policy was introduced
which has impacted the company by effecting the Supply chain of the company.
PESTLE ANALYSIS
The term pestle analysis is a strategic tool which is used to analyse the external factors which can
Affect the Business and the organisation in various ways. Pestle analysis is considered as an
effective tool which can be helpful in knowing about the external factors and the threats and
opportunities provided by them. Given below is the Pestle analysis of Tesco Plc.
 Political factors
The term political factors influence the Company in a certain way as they include various
components such as, tax rates, legislation, government regulations etc. The UK country has
financial instability which can Affect the company and its various tasks and operations which are
managed on a daily basis so as to manage the proper functioning of the business (Jelassi, Kiziltas
and Çalıyurt, 2018).
 Economical factors
The economical factors are related with the inflation and deflation policies which can Affect the
business. Tesco Plc is a large operational company which is a well known reputed company, The
economical factors such as rise in price can Affect the Purchasing power of the customers which
can directly Affect the business.
 Social factors
There are a lot of social factors such as, Changes in the tastes and preferences of the customers,

changes in the trends and other societal norms which can Affect the Business as the Social aspects
are considered as the most important part which should be ensured by the Various business and the
organisations such as Tesco so that they can maintain a good position in the organisation along with
the motive of serving the people in the Best potential manner they can.
 Technological factors
The term Technology is being advanced and upgraded every day. There are various Business and
organisations which are opting advanced technologies and upgraded soft wares o that they can
promote the effective and efficient working of their Business by increasing their functional ability.
Tesco is a Large company which is also using new methods of technologies and also promoting its
online application so that it can increase its reach to the customers and can also gain various
advantages by the proper use of technologies.
 Legal factors
There are a lot of legal factors which should be followed by the Business and organisation such as
Tesco so that it can maintain the proper Business working along with following the rules and
regulations. the company should focus on the legislative factors such as Maintaining the quality
standards and quality controls of the organisation so that it can manage its tasks and activities
effectively and efficiently (McKinnon, 2018).
 Environmental factors
The term Environmental factors are referred as the factors which are related with the Environmental
concerns and other methods to look after the environment and the surroundings in a proper way.
People are being more concerned about the environment and they are being more conscious towards
the Sustainability and healthy environment. Tesco is a large company which is focusing more on
promoting the environmental values and concern so that it can not harm the environment by its
products and services and also the company is more focused towards promoting the goods which
can promote the sustainability in a better way so that the people can be aware of the healthy
environment and surroundings.
ANSOFF MATRIX
The term Ansoff matrix is referred as the product and the market expansion grid which is a tool
used by the firm to analyse and plan the strategies for growth. It is the framework which helps the
various marketers to identify the opportunities to grow revenue for the Business by promoting new
products and services in the market. Given below is the Ansoff matrix of Tesco plc.
 Market penetration
when the company starts operating it becomes necessary for the company to penetrate in the market

to find new opportunities. Tesco Plc is a large organisation working in the retail sector, the company
has also increased its share by Tesco club card points which is the scheme provided by the
company. This scheme helped the company to enter into new markets. There are a lot of customers
who prefer brands over the products, Tesco took the advantage and identified those customers and
Became the brand first (Nayan Nayan, and Ghosh, 2019).
 Product development
The term product development is referred as the major factor for the companies and it is the
opportunity to grow. Tesco identifies the opportunities and introduces new products to the market so
that it can gain various benefit and advantages. Tesco has also promoted organic goods after
analysing the shifts in consumer preferences. The company focuses on being dynamic so as to
maintain a well known reputed position in the market.
 Market development
The term market development is referred as a important component which can help the business and
the organisation to maintain a good position in the market. The Tesco Plc focuses on the expansion
of the current business operations with the new products in the market so that it can attract more
customers from different segments of market. The company opts various strategies and tactics such
as, methods, product dimension and distribution channels so as to build a strong relationships with
the customers.
 Diversification
Diversification cause in the Ansoff model is referred as the dealings with new products initiated by
the company in new market. This helps in changing the risk to multiple products and marketplace.
For every accumulation, the company has to pull new customer base. Tesco was a grocery store
retailed at first but varied its operations. It introduced non-food components at first.
This was the Ansoff matrix of Tesco which is used by the company to promote various strategies
and tactics to attract the customers and increase its market share. The company can change its
existing strategies in many ways such as
 The company can promote its products and services through social media and it can also
use various digital media platforms such as, Facebook, Instagram and website so that they
can interact with Mass customers and they can also attract more and more customers from
different segments of market.
 Tesco is the large operational company having various complex functions which are needed
to be performed on a daily basis. The company can focus on maintaining an effective supply
chain so that it can perform the tasks and activities easily (Schlegelmilch, 2022).
 Tesco can also launch various green and vegetarian products in the market as they are more
in demand and healthy which can help the company to increase its sales and promoting its

products in a good manner which can benefits the Business.
Justifications
As per the above changes mentioned given below are some justifications which can state the
analysis of theses changes adapt. First if Tesco Plc company wants to expand their market and
promote their product, social media is the best platform to advertise their product and services.
Social media platform is popular now a days mostly people are using this platform especially
youngster (Stephens and Martin 2019). If Tesco company choose this platform they get many
opportunities and benefits to attract the larger number of customer and they can share product
related information in their accounts, along with they can market their product innovational and
creativity. Second is they need to improve their supply chain, because Tesco is a large multinational
retail company they need to assure that customer their products timely. So they need to focus to
maintain effective supply chain which helps them to performer their activity rightly. Along with if
they focus on this, so they are capable to compete in the market the effective supply chain offer the
numerous benefits to the company to improve the bottom line, it Helps to improved the quality of
control. Because those company have a great control over not only the direct suppliers but also the
other suppliers support to improved the quality control (Schlegelmilch, 2022). Supply chain
managements support the company to deals with how company turn their raw materials into final
products and transport and distribute those products to their target customers, effective supply chain
allowing the company to produce good quality of products and distribute timely. Third the company
is focusing on providing the green and veg train goods which will act as different product offering
by the company. This will also be complex as there is the lot of competition in the retailing sector
which can effect the current market strategy of the company.