Global Strategic Management: A Case Study of Tesco

Strategic management

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Business Strategy.........................................................................................................................3
PESTLE analysis.........................................................................................................................4
SWOT analysis of Tesco.............................................................................................................6
Ansoff matrix...............................................................................................................................7
Recommendation.........................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term strategic management can be defined as the process of providing overall direction by
formulating sustainable plan and policies so as to attain organisational goals (Barney, 2020). It
facilitates in gaining competitive advantage as well as improves brand equity of firm. Having an
effective strategic management contributes in offering direction which leads company towards
attainment of goals. It is important to frame effective strategy so that company can easily attain
short term and long term objectives. Due to dynamic business environment, most of the
companies are changing rapidly and strategic management is the only approach which
contributes in foreseeing various potential issues along with evolving opportunities. Strategic
management also facilitates financial advantages. Most of the companies had to change their
business strategies during Covid-19 and the way in which they operate. There can be seen a reset
of work and workforce itself. All things become virtual due to restriction on tour and travel
across the world. Conferences, interviews and decision making becomes virtual and held on
Zoom and Google meet. Covid 19 has permanently reshaped business strategy and two drivers
emerge which are supply chain resilience and flexible work. Brexit, Covid-19 and Ukraine world
way have negatively impacted almost every industry and lowers profitability. many businesses
are still struggling from the crisis and negative impact of pandemic. Recently, retail industry has
affected drastically as it was operating uniformly but now it had to bring changes so as to deal
with pandemic. This project report is based on Tesco, a multinational retailer chain
headquartered in Welwyn Garden City, United Kingdom. It will highlight existing strategy of
company and effects of internal and external environment on existing business. Further, it will
cover Ansoff matrix so as to highlight changes which can be applicable to existing strategy. At
last, it will cover justification to changes in order to explain any pitfall in new strategic changes.
TASK
Business Strategy
Business strategy can be defined as clear set of actions, plans, goals which outlines how an
organisation would compete within a specific market with its products (Barbosa, Castañeda-
Ayarza and Ferreira, 2020). It is important for company to frame effective business strategies so
that it would become easier to accomplish objectives. It will also lead company in gaining
competitive advantage. In relation to Tesco, it opts cost leadership with a motto “Every Little

Helps”. Economics of scale can be considered as one of the crucial competitive advantage which
is extensively exploited by Tesco because of vast scale of operations. The business strategy of
Tesco has traditionally involved experimentation with various dimensions of business and this
effective strategy changed entire retail industry of UK (Potyshniak and et.al., 2019). For
example, Tesco was the first company who introduce 24-hour shopping experience and today it
has thousands of Click and Collect points within the country. The short term business strategy of
Tesco is to regain stakeholder’s trust in general whereas customer trust in specific commercial
income. Objective of business strategy of company are discussed below.
 To focus on availability of service and selectivity on pricing.
 To undertake a significant programme for restructuring as well as for financial discipline.
 To launch a programme for renewal to regain trust of internal and external stakeholders.
Tesco ran a multi-channel and agile campaign which facilitates in building trust and
positively reacted to new shopping patterns during pandemic in order to drive sales.
Company tries to deliver quality products at minimum price during Brexit and boost its
production so that it can meet every requirement of customer. Along with this, it follows
all protocols framed by UK government. Ukraine war also affected business strategy of
company as they changed the way of working with its partners and agencies. This
strategic approach of company shortened the timeline and the conversation chain
(Afanasieva and et.al., 2020). Tesco aligned its existing campaigns with market trends so
that it can restore trust of customers. Earlier company was not much active on social
media and emphasise on face to face interaction with its customers which strengthen
relation. But due to pandemic, it has to opt social media marketing so that it can target
large number of customer and it benefitted company in various terms such as generation
of high profit, more sales and enhanced brand equity over internet. The supply chain also
disrupted from Ukraine war and it is needed to make some alteration in existing strategies
so that it can achieve maximum efficiency.
PESTLE analysis
PESTLE analysis can be referred as the framework which helps company in
understanding market dynamics as well as improves business (Jafari and Othman
Soleiman, 2020) There are various extrinsic forces which may impact company’s