Management Strategy of Tesco

Running head: MANAGEMENT STRATEGY OF TESCO
MANAGEMENT STRATEGY OF TESCO
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1MANAGEMENT STRATEGY OF TESCO
Executive Summary
The aim of the report is to analyse the opportunities and the challenges that the organisations
in the retail sectors faces. The mission and vision of Tesco which is one of the leading
company in the retail sector has been analysed in the report. Further the report contains the
influence of the management and the board of directors in framing the strategies of the
company. The report considers various key management strategic tools, which is porters’ 5
forces model and the PESTLE model of Tesco Plc. that would help the company in making
important management decision.

2MANAGEMENT STRATEGY OF TESCO
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Challenges and Opportunities in Retail Sector......................................................................3
Mission of the corporate goals of the Tesco plc....................................................................4
Influence of the board of directors, shareholder stakeholders and the managers in framing
strategic policies.....................................................................................................................5
PESTLE and Porters 5 forces model and its application on the strategy framing of Tesco
plc...........................................................................................................................................9
Conclusion................................................................................................................................14
References................................................................................................................................14

3MANAGEMENT STRATEGY OF TESCO
Introduction
The management strategy of any organisation is based on two factors these are the
internal environment of the company and the external environment of the market. From the
internal environment, it will be possible to find out the strengths and the weakness of the
organisation. From the external environment, the opportunities that the company can get from
the external factors and the threat that may affect the performance of the company can be
ascertained. It is ascertained that the governing bodies, mangers shareholders and the
stakeholders like employees, suppliers, customers, society and the government also influence
the strategic plans of the company. So the strategies of the company is also framed in such a
manner so that it can fulfil the demand of the governing body’s management shareholders
and the stake holders.
Discussion
Challenges and Opportunities in Retail Sector
There are various factors that needs to be accounted for while analysing the strategic
position of a company and the same could be done by incorporating the various business and
macro-economic conditions of the company. The opportunities that the companies in the
retail sectors get are the following:
Low bargaining power of suppliers
The industries in the retail sector get the opportunities to bargain with their suppliers
so they can control the cost of production which enables the company to increase the
profitability of the company (Cox,et al,2016).
High barrier for new entrants