Value of Purpose, Vision, Mission, and Objectives in Strategic Direction

Strategic Management

Table of Contents
Introduction......................................................................................................................................1
Main task..........................................................................................................................................1
Asses the value of clear purpose, vision, mission and objectives in setting the strategic
direction of the organisations.................................................................................................1
Assess the competitive advantage of the chosen company using the VRIO framework.......2
Analyse the external environment of the chosen company....................................................4
Analyse the competitiveness of the company using porter’s five force model......................6
Review of the organisation’s strategy....................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
The strategic management is defined as the process of analysing, evaluating and
implementation of the necessary strategy in the organisation in order to attain the desired goals
and objectives, it involves continuous process of making all the necessary things and resource
available so that organisation can effectively meets its goals and objectives effectively. The
strategic management helps in enhancing the overall performance of the organisation and also
leads an organisation towards growth and success. For this report Tesco is taken into
consideration. Tesco is one of the leading multinational retail company, it is considered as the
third largest company globally in term of gross revenue. It was founded in 1919 by Jack Cohen.
This report covers the detailed analysis of value of clear purpose, vision, mission and objective
in formulating the strategic direction of the business and assessment of the competitive
advantage is also heighted. In addition to this external environment of the business and the
competitiveness of the organisation is assessed using porter’s five force model also the
organisation strategy is analysed effectively.
Main task
Asses the value of clear purpose, vision, mission and objectives in setting the strategic direction
of the organisations.
Organisational strategy is defined as the combination of the actions company plans to
undertake in order to achieve long term goals of the organisation, it is strategy formulated in
order to achieve the target goals and objectives of the organisation enhancing the overall
performance of the organisation. It includes when the vision of the organisation is combined with
the mission and objectives of the organisation in order to achieve targeted goals and objectives.
The effective vision, mission and objectives help in overall growth of the organisation and leads
organisation towards enhancing the profitability and productivity of the business (Aula and
Mantere, 2020).
Organisational strategy of Tesco
Tesco is one of the leading retail brand across the globe and is the third largest retailer
across the globe in term of gross revenue, it was founded in the 1919 by Jack Cohen. The
company has well established brand across the globe, operating internationally satisfying the
needs and wants of its customers effectively. The organisational strategy of the company is that
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their main focus is to offer unique and differentiated products and services to their customers
with excellent quality and under the fair prices, the company ensures that their customers are
getting maximum satisfaction out their services as company continuously work towards
satisfying their needs. The main focus of the company is to improve their potential customers
loyalty and develop an effective shopping experience for its customers effectively. The
organisational strategy of the company focuses on the improving their competitiveness and
continuously gain competitive advantage in the marketplace. In addition to this the company
always work towards achieving their goals and objectives and increasing their profitability and
productivity (Beirman, 2020).
Mission statement: The mission statement of the company is to create effective value for
their potential customers in order to gain and enhance their loyalty and help them enjoy excellent
quality of life.
Vision statement: The vision statement of the company is to be extremely valued
business by the customers, company serve community where they function their loyal and
trustworthy colleagues and shareholders.
Objective: The objective of the Tesco is to be the leader in their market and cater large
customer base through satisfying their needs and wants and continuously working towards
making their life better through offering quality products and services. The main objective of the
company is to satisfy their customers effectively.
The mission, vision and objectives of the company helps in the setting the strategic
direction of the company as it helps company to analyse the main focus and aim of the company
and them accordingly set the strategy in order to achieve that particular objective, in case of
Tesco, company wants to the leader and continuously satisfy their customers so this analysis will
help company to set the strategic direction of the company. Having proper strategic direction
helps in analysing the path that is needed to be followed in order to achieve the targeted goals
and objectives and to gain competitive advantage in the market (Bouaziz and Hachicha, 2018).
Assess the competitive advantage of the chosen company using the VRIO framework.
With increasing competition in the market, it becomes very essential for the business to
grow and survive and also to continue to gain competitive advantage in the market, gaining
competitive advantage helps company to improve their overall performance and enhance their
productivity and profitability in the marketplace effectively. In order to assess the competitive
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