Organisational Strategy Case Study Report for TESCO

Organisational Strategy
Case Study Report
Project 1

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Macro environment factors ........................................................................................................4
Industry position .........................................................................................................................6
Internal capabilities and and stakeholder perspectives ..............................................................7
Individual future options.............................................................................................................8
Collaborative future options linking with other businesses .......................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The strategy of organisation refers to the plan into long term manner which allocates that
in which manner the organisation makes plans for using the resources into effective terms for
supporting the business activities. It basically act as the road map that in which manner
organisation can achieve their objectives. TESCO is taken into consideration, in the present
report(Asfahani., 2021). TESCO is a retailer which is multinational merchandise that has their
own headquarter in the Garden City of Welwyn, England. The present report will cover
discussion about the current strategic situation of the business and also about the certain strategic
situation of the business along with strategic options for the business. The report basically
consist of the macro environmental factors and also about the position of industry as well.
Moreover the report will cover discussion about the individual capabilities and also about the
stakeholder perspectives as well.
MAIN BODY
Macro environment factors
The factors at macro level basically comprises of the different factors at external level
which include physical, demographic, economic, natural, legal, technological and socio cultural
conditions as well. These factors can be evaluated with support of PESTLE analysis which has
been defined into the following manner: A PESTLE analysis is basically the study of factors at
external level which include economic, political, technological, sociological, environmental and
legal as well which influences the organisation either into positive or negative form(Zumitzavan.,
2022). It can be used into different scenarios and can also guide the professionals and senior
manager into strategic decision making. That's why pestle analysis s very important to conduct
in order to grow the organisation into positive and result oriented form.
 Political Factors: As the retailer operates on the worldwide basis then the factors at
political level influences TESCO performance on the higher scale. It includes the tax
rates, act of legislation and country's stability where it operates in. When there is
continuous financial instability on the worldwide basis then there are different
governments who contribute into the context of encouragement of retailers for creating
jobs for the population at domestic level (de Azevedo and et.al., 2020). As TESCO is the

company who plays an important role in creating the opportunities of employment which
enhances the demand for products and also there is diversification of work force as well.
 Factors at economic level: Economic factors which has good concern with TESCO
company as they most likely to leverage the costs, demand, prices and profits as well. It
has been observed that organisation is dependent on the UK market when the business is
growing where it has market share of around 30% (Dey and et.al., 2019).There are two
main strategies which includes diversification and internationalisation which has been
considered by the company from several years and considers the main reason for success.
When there is decline in household incomes and disposable income levels then the
company has shifted their main focus towards value brands advertisement rather than the
luxurious brands.
 Factors at social level: According to the trends, it has been indicated that UK customers
has shifted themselves towards the bulk shopping and one stop shopping as well. It has
been observed that the kind of services and goods which has been demanded by their
customers has mostly influenced by beliefs and attitudes which in turn influences the
conditioning at social level(Andriani and et.al., 2019). When people have more
awareness about their issues of health then their steps towards food has been changing on
the constant basis and the company is adopting the amendments by accommodating the
organic products demand.
 Factors at technological level: The advancement within the technology has brought
dissimilar opportunities for company of TESCO. First is that the initiation of shopping on
the online basis introduction of online shopping along with facilities for purpose of home
delivery. The second is that points of self service checkouts have provided the ease and
convenience for the customers which ultimately reduces the costs of labour (Hanelt and
et.al., 2021). TESCO is the company who has also invested large scale of efficiency
projects of energy efficiency projects for fulfilling the objective into long term manner
for minimizing the carbon foot print.
 Environmental Factors: There is large pressure on the organisation for addressing the
environment issues and also adopt the ways of operations which benefits the society.
TESCO is the company who is also committed to reduce its carbon foot print by fifty