Strategic Management Plan for Tesco

Strategic Management
Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
MAINBODY....................................................................................................................................1
PART 1............................................................................................................................................1
The impact and influence which the macro environment has on an organisation and its business
strategies..........................................................................................................................................1
Company Overview....................................................................................................................1
PESTEL Analysis.......................................................................................................................2
SWOT analysis of Tesco.............................................................................................................3
Tesco’s internal environment and resource capability.....................................................................4
Foundation of the strategic capability of Tesco..........................................................................4
VRIN Model...............................................................................................................................5
Internal capabilities.....................................................................................................................6
Critical evaluation of the competitive environment.........................................................................6
Porter’s five forces model...........................................................................................................6
Organisation’s existing and/or potential competitive advantage.....................................................8
Porter’s Generic Strategy............................................................................................................8
Strategies and tactical objectives to achieve overall strategic objectives........................................8
Bowman’s Strategic clock..........................................................................................................9
PART 2..........................................................................................................................................10
Critical evaluation of the Porters generic stray in strategic management plan of Tesco..........10
Recommended growth strategy for Tesco.................................................................................12
Evaluate ways and means by which the chosen strategy/is can be monitored in order to ensure
success.......................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy are important for an organisation as it defines the plan and the policies that
help the employer to achieve the goals and objectives. Business strategy are developed not only
the vision but also a direction to the whole organisation and their contemporary to the all people
within the organisation with their clear goals and direction and more it cater the vision and stop
them from losing employer objectives. Following report are focusing on the UK retail market
and Tesco is consider which the largest supermarket chain in the UK (Williams and You, 2021).
Moreover, following report illustrates the structural concept which illuminates the stability and
core competence in the Tesco business market. SWOT and Porters five forces are also used
along with relevant models. So this pursuing report throw light on the Tesco’s strategic
development.
MAINBODY
PART 1
The impact and influence which the macro environment has on an
organisation and its business strategies.
Company Overview
Tesco is one of the leading and largest retail distributor after the Walmart and Carrefour based on
the revenue. Tesco represent about the 500,000 employee in the 14 nations by introducing the
Tesco Express, Tesco Home-plus, Tesco superstore and the Tesco metro and the online site of
the Tesco.
Mission
The mission strategy of the company is to establish a positive business growth in order to
enhance and increase the awareness that they are one of leading cost effective retailer which is
dedicated to satisfying the customer need and ensure the productive usage (Mc Loughlin and et.
al., 2021).
Vision
Tesco has the dream and long term vision is the become the largest growing retail and
food shopping organisation globally, Tesco have the vision and efforts to create a modern
community in that way.
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Goals and objectives
 To encourage the reorganisation of the company and to profit competitively.
 To recall and preserve the service level and the price.
 Enhancing and increasing the income.
 To fulfil the customer and employee satisfaction at the same time.
PESTEL Analysis
 Political
Since, Tesco are operating in the global level the success and the performance of the
company widely impact by the global political aspects. The execution of the Brexit had dramatic
impact on the business performance of Tesco as they have to make the other government policies
and abide the laws in order to operate in the EU nation. Moreover, this constant global financial
uncertainty and the various policymaker has promoted the production of employment for the
retailers (Brannen, Mughan and Moore, 2020). Since, Tesco is taking the active part in the
societal welfare they have government support much but the new supermarket law can have
adverse impact on the company profitability and operations.
 Economy
Since, the novel COVID-19 had impacted the business of the many sector as there is less
demands in compare to earlier and the spending level of the people are also reduced. Other than
this, currency fluctuation is other issue which company are facing after the Brexit as Euro is
higher in terms of the Pounds. Globalisation and the diversification is the aimed strategies that
Tesco had pursued over the years and present a vital explanation for their achievement (Trewern
and et. al., 2021). After this approach Tesco has emphases on selling the affordable goods in
compare to the luxury items that leading to a reduced in the number of the throwaway jobs and
household income.
Social Factors
The shopping pattern and the buying habit of the consumer are changes because of the
various improvement and growth in the culture, pattern which acclaimed that the UK consumer
are shifting to the reliable and convenient shopping so they are preferring buying in bulk and one
stop shopping trend. Tesco is meeting these needs by emphasising on the socially formed
attitudes and now they are also shifting to the e-commerce platform in order to adopt this change
shift in its business strategy.
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