Strategic Management: Comparing Theory and Practice at Tesco Plc

Report

INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Topic: Compare theory and practice ...............................................................................................2
Porter’s Five Force Model...........................................................................................................2
Ansoff Model...............................................................................................................................6
CONCLUSION................................................................................................................................8
RECOMMENDATION ..................................................................................................................8
REFERENCES .............................................................................................................................10
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INTRODUCTION
Strategic management is the process of managing business resources of an organization to
accomplish its aims and targets (Ansoff and et.al., 2018). It includes setting goals, examining the
competitive market, analysing the internal organisation, determining tactics, and determining that
strategies are enforced through the organisation by management. By designing strategies and
policies intended to accomplish goals and then allocating resources to execute the plans, strategy
formulation provides overall guidance. In the end, strategic leadership is for companies to
achieve a competitive advantage over their rivals.
Tesco Plc is chosen for this report which helps in proving better understanding of strategic
management concepts. Tesco, which operates about 2,318 stores and employs over 326,000
employees, is among the world's largest food distributors. Via its subsidiary, Tesco.com, it
supplies online services. The UK seems to be the biggest market for the brand, where it works
underneath the four Extra, Superstore, Metro and Express banners. This assessment based on the
compare theory and practices such use Porter’s Five Forces Model to identify company’s overall
performance and position in the market. In addition, by using Ansoff model formulate strategies
for further actions to improve productivity as well as profitability.
MAIN BODY
Topic: Compare theory and practice
Porter’s Five Force Model
Porter's Five Forces is a tool for market analysis which seeks to clarify why different
sectors are capable of sustaining varying levels of profitability (Ferreira, Mueller and Papa,
2018). "This model was presented in 1980 in the book by Michael E. Porter,". He mentioned in
that book about the importance and usage of Porter five force in business term Porter defined
five unavoidable powers, with certain limitations, which provide and helps to guide by
generating information related with substitute product, industry rivalry, threat of new entrant,
bargaining power of supplier and buyer in company perspective as that helps to sustain in
marketplace for long time. This is an important element for analysing the powers within about an
industry that form competition. It also is beneficial to help them change their approach and
increase the potential benefit to suit their business climate. This analysis is based on the Tesco
Plc which is UK based retail sector organization and one of leading company of UK that offer
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