Strategic Management of Tesco

This assignment examines Tesco's strategic management practices. It analyzes key aspects such as organizational structure, alignment procedures, and criteria used for development initiatives. The analysis emphasizes the role of mergers and acquisitions in Tesco's growth and evolution as a global business organization.

STUDENT NAME:
STUDENT ID:
ASSIGNMENT TITLE: STRATEGIC
MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
SECTION A.....................................................................................................................................3
1. Mergers and Acquisitions process based on Tesco.....................................................................3
2. Organizational structures of Tesco..............................................................................................4
SECTION B.....................................................................................................................................6
1. Methods of development in terms of SAF e criteria in Tesco.....................................................6
Conclusion.......................................................................................................................................7
Reference List..................................................................................................................................9
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Introduction
In this assignment the discussion about strategic management is broadly enumerated or discussed
In terms of working process of Tesco, a very well reputed business organization located in the
region of United Kingdom. It is an industry whose grand success up till this advanced era is
based on the policy of Merger and Acquisition adopted by it FOR amalgamating with other
internationally special organizations in and around the globe for the purpose of enhancing its
business productivities and business efficiency and affectivities. Apart from this the methods of
development adopted by Tesco is also highlighted in an accurate manner (Rothaermel, 2015,
p.11).
Overview of Tesco: Tesco is a grocery based organization of international reputation and one of
the best merchandise retailers in England. It was founded in the year 1919 by Jack Cohen. It has
round about 6902 stores spread internationally and it has a supermarket or hypermarket based
infrastructure. It has operating income of about 2.6 billion pounds and a revenue generation
capacity of around 54 billion pounds. Overall it is an organization of decent industrial reputation
and character in terms of its global market based strength and popularity (Slack, 2015, p.49).
SECTION A
1. Mergers and Acquisitions process based on Tesco
Mergers and acquisitions is a process of amalgamation of two or more organization or
institutions or companies. It is achieved by buying of abundant amount of shares in the company
targeted for acquisition. Mergers and acquisitions may be a smooth and regular process or an
irregular procedure based on the acceptance or non-acceptance of deal made by the company
targeting for merging its business with other company with other companies or organizations.
But fortunately in case of Tesco, the deal was a faire one and the M&A (Merger and Acquisition)
process went smoothly. Merger and Acquisition process of Tesco was a friendlier one because of
the ability of the manager cum entrepreneur of Tesco to win the heart of internationally reputed
shareholders located around the globe. With the aid of the process of Mergers and Acquisitions
Tesco entered the markets of supergiant market oriented economies of United States of America
and United Kingdom (Harrison et al. 2013, p.44).
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There are mainly two types of criterions adopted or followed in the process of Mergers &
Acquisitions based business: strategic fit and organization fit.
Strategic fit: Strategic fit is a criterion or process in terms of which the target firm boosts up the
morale of acquiring firm in terms of supporting the infrastructure of Tesco in terms of its
industrial and financial criterions. In this fit process the target process is made responsible or is
assigned with the role cum responsibility of adding strength to the infrastructure of acquiring
company so that the acquiring firm can conduct its business efficiently with consistency and
integrity contributing to the maximum amount of productivity and efficiency respectively. The
organizational structure of Tesco is such that the Mergers and Acquisition processes led to hike
in acquisition prices in terms of acquisition bid witnessed in the process of merging and
acquiring of Tesco with world reputed investors of USA and UK respectively.
Organization fit: Organization fit is a strategy based on Mergers and Acquisitions in which the
merged firms or companies tend to work in a combined manner for the sake of performing
together in terms of merged organization based business which is also the feature of Tesco’s
organizational structure of recent modern world.
2. Organizational structures of Tesco
The organizational structure of a company like that of Tesco is mainly constituent of trilateral
formation of organization via, the functionally structured organization, the divisionally structured
organization and the matrix structured organization. Tesco comprising of all the above structures
is enhanced in terms of functionally, divisionally and matrix based organizational infrastructure
(Goetsch and Davis, 2014, p.33).
Functional infrastructure of Tesco: The functional infrastructure of Tesco is depicted in terms
of production, research oriented and sales oriented organizational pattern of business framework.
In terms of functions, Tesco in terms of multi sect orally differentiated framework is mainly
based on short-term processes rather than long term based diverse processes. The main
meritorious features of functional pattern of organization of Tesco are that there is a chief
executive operating above to monitor, coordinate and supervise all the sect oral functions and
sub layered or sub sect oral functions of Tesco, reduction of complexity in conduction of
functions and others though there are demerits like coordination failure and adaptation failure
associated with each segment of business in Tesco.
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Divisional infrastructure of Tesco: Division in terms of products, services or organizational
structure is also major character of Tesco based organization. In this type of organizational
framework, different forms of market strategy are practiced in each and every segment of
business organization. This divisional organization goes hand to hand with the company based
infrastructure of Tesco because of its superior flexibility and superior performance based
criterions (Dess et al. 2016, p.66).
Matrix based organization of Tesco
In terms of matrix based organization, Tesco is responsible to perform multifarious activities
simultaneously in form of a matrix based infrastructure and it is highly popular in terms of its
feature of introduction of new knowledge base in the market and adaptability related parameters
of efficiencies.
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SECTION B
1. Methods of development in terms of SAF e criteria in Tesco
The process of development formulated by Tesco is in terms of SAF e criterion of business. The
SAF e criterion (Suitability, Acceptability and Feasibility) is a criterion of development or more
precisely an indicator of development based on three respective terminologies of business.
Suitability parameter: The suitability parameter judges the appropriateness of business
strategies in terms of using the business procedures or methods of development of business and
how far the methods are contagious with dealing with the stringent issues and constraints of
organizational business of Tesco. Suitability parameter is hence based on the core principles and
ideologies of the business. It is also based on the measurement of exploitation of opportunities of
the business and the yardstick to much an organization like that of Tesco is working with its full
strength to use the hidden or additional potentials of the organization. Suitability parameter of
organizations like that of Tesco can be judged via rating based rating system. The suitability
parameter aids in understanding of and manipulating of business related industrial cycles to
measure the potential of Tesco’s overall business performance being computed annually.
Suitability parameter based development strategy of Tesco also entails determination of mobility
based barrier of the organization in terms of the intensity of restrictions based on movement of
resources and money freely within the organization cum industry. Suitability parameter also
helps the development of Tesco in terms of vertical integration based processes and outsourcing
based opportunities which help the market of Tesco to expand in a gross or cumulative manner.
Acceptability parameter:
Acceptability promote gauges the method or manner by which the anticipated outcomes or
expected outcomes of proposed strategies of Tesco go hand to hand with anticipations cum
expectations of stakeholders of the business of Tesco. Acceptability parameter is based on the
Judgment of acceptance of Tesco's policy cum procedures designed accordingly with the quality
based and quantity based parameters of risk, return and reactionary feedback from stakeholders
(Certo et al. 2016. p.77).
Risk based acceptability parameter: It is based on the strategy or plan about how far the
outcomes or results of a strategy can be formulated or predicted in challenging circumstances in
terms of existence of high level of uncertain periods developed with outcomes in terms of
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environmental uncertainty and decisions taken about markets based on strategy implementation
and price or quantity regulation.
Return based acceptability parameter: The returns based acceptability parameter judges the
revenues or turnover generated from businesses in terms of evaluation of these expected
outcomes based strategies and plans or protocols of businesses. It is an important criterion of
acceptability based methods of development undertaken for an organization named Tesco.
Reactionary parameter: Methods of development is also based on the reactionary criterion of
feedback mechanisms of stakeholders in terms of their suggestions regarding the performances
of business.
Feasibility parameter: Financial feasibility is a parameter realization of a method or strategy of
development in practice. It depends on the capacities of an organization like that of Tesco to
formulate and execute the strategies once designed in terms of better productivity and
performance based development. Feasibility of a strategy or method to promote development is
reflected via patterns of availability of adequate number of resources to fully sustain the plan or
stratagem of development as per the rules and norms of key principles of Tesco. Hence
feasibility is based on the questions of whether the resources required for development are
existing and if so can they be accessed or procured (Aguinis et al. 2016, p.88). Feasibility
depends on the choices cum availability of financial resources, right number and right kinds of
personnel in important sectors of business of Tesco and the right proportion and quality of
structural change needed in the model. Right feasibility procedures is dependent on correct
amount of cash required for business processes , and correct quantity of knowledge bearing
personnel with adequate skills to be deployed in each and every sector of Tesco. Additionally
feasibility parameter also depends on the structural infrastructure of the present business
environment of Tesco to set a platform for futuristic growth and development of Tesco, one of
the best international business organizations of the world.
Conclusion
Therefore in this analysis of strategic management all the criterions of organizational structure ,
alignment procedures and criterions for development are being highlighted accordingly by taking
into consideration the business objectives of Tesco and the sequential process of development of
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Tesco based on its pattern of merging and acquiring with other companies which also boosted its
development is also being highlighted in details.
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Reference List
Aguinis, H., Edwards, J.R. and Bradley, K.J., (2016). Improving our understanding of
moderation and mediation in strategic management research. Organizational Research Methods,
p.1094428115627498.
Certo, S.T., Busenbark, J.R., Woo, H.S. and Semadeni, M., (2016). Sample selection bias and
Heckman models in strategic management research. Strategic Management Journal.
Dess, G.G., McNamara, G. and Eisner, A.B., (2016). Strategic management: Creating competitive
advantages. McGraw-Hill Education.
Goetsch, D.L. and Davis, S.B., (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Harrison, J.S. and John, C.H.S., (2013). Foundations in strategic management. Cengage Learning.
Rothaermel, F.T., (2015). Strategic management. New York, NY: McGraw-Hill
Slack, N., (2015). Operations strategy. John Wiley & Sons, Ltd.
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