Tesco's Retrenchment Strategy

This assignment examines Tesco's business strategy with a focus on retrenchment strategies. It analyzes the company's aims to generate more profit through valuable products and proposes campaigns for achieving these goals within 10-12 months. The report emphasizes the importance of strategic formation for success in the corporate world, highlighting how strategies can help achieve vision, mission, goals, and objectives. It also suggests methods for developing beneficial strategies for long-term success.

BUSINESS STRATEGICS

TABLE OF CONTENTS
BUSINESS STRATEGICS..............................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 {a}Mission, vision, objective and core competencies ..............................................................4
TASK 2............................................................................................................................................4
1.2,1.3 {a}factors that are considered while formulating strategic plans........................................4
TASK 3............................................................................................................................................4
2.1 Analyze the strategic positioning of Tesco by carrying out
an organizational audit....................................................................................................................4
TASK 4............................................................................................................................................4
2.2 Environmental audit of Tesco by using various environment auditing techniques...................4
TASK 5............................................................................................................................................4
2.3 Significance of stakeholder analysis when formulating new
strategy............................................................................................................................................4
2.4 Recommended strategy for Tesco..............................................................................................4
TASK 6............................................................................................................................................5
3.1 Alternative strategies relating to market
entry, substantive growth, limited growth or retrenchment for a given
organization.....................................................................................................................................5
3.2 Justification of the strategy........................................................................................................5
TASK 7............................................................................................................................................5
4.1 The roles and responsibilities of personnel charged with implementing your new strategy.....5
4.2 Estimated resource requirement for implementing a new strategy...........................................5
4.3 Contribution of SMART objectives in effective implementation of strategy...........................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

INTRODUCTION
Business strategy may be served as a direction and scope by the means of which an
organization is able to achieve the desired goals and objectives. These strategies are prepared by the
organization for preparing long term business plan with an aim to achieve the desired objective.
Generally, business strategies are made for a period of 3-5 years. Tesco is a multinational retail
company headquartered in Welwyn Garden City, Hertfordshire. It is a public limited company
started in the year 1919 by Jack Cohen that has been chosen in this report. Here, mission, vision,
goals as well as core competencies of Tesco will be identified. In addition to this, factors that can be
taken into consideration at the time of formulating strategic plans will be depicted. At last,
contribution of SMART targets will also be discussed which make a huge contribution in the
attainment of organizational goals.
TASK 1
1.1 {a} Mission, vision, objective and core competencies
Enclosed in ppt
TASK 2
1.2 & 1.3 {a} Factors considered while formulating strategic plans
Enclosed in ppt
TASK 3
2.1 Analyzing the strategic positioning of Tesco by carrying out an organizational audit
Enclosed in ppt
TASK 4
2.2 Environmental audit of Tesco by using various environment auditing techniques
Enclosed in ppt
TASK 5
2.3 Significance of stakeholder analysis while formulating a new strategy
Enclosed in ppt
2.4 Recommended strategy for Tesco
Enclosed in ppt

TASK 6
3.1 Alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment for a given organization
Enclosed in ppt
3.2 Predicting an appropriate future strategy
Enclosed in ppt
TASK 7
4.1 The roles and responsibilities of personnel charged with implementing a new strategy
Roles and responsibilities of the personnel at the time of implementing new strategies are as
follows:-
 To create coordination among the-employees:- in can critically be eveluated that major role
of personnel is to maintain coordination among all the activities that take place within the
organization. If company is not able to develop a coordination among the various activities
then in that case it will not be able to achieve its desired objectives on time.
 Provide training and development:- It has been analysed that personnel should start
conducting various training and development sections. This in turn will motivate the
employees and at the same time it will increase the productivity level.
 Embodying changes: - It can be evaluated that Tesco should prepare all its employees to
accept the changes that may occur suddenly.
4.2 Estimated resources required for implementing a new strategy
Following are the resource requirement for implementing a new strategy: Human resources- Strategy implementation is a complex procedure and it is necessary to
determine which tactics will be implemented at the ground level. With regard to this, human
resources of the firm play an important role. They decide the stages by complying of which
strategy will be implemented (Peng, 2002). Employees of the firm also decide things that
need to be done. It facilitates the implementation of policies and strategies in the right
direction. Hence, it can be said that these are the human resources on which success and
failure of the firm depends. Finance- It can be analysed that, when any strategy is implemented at the ground level, it is
necessary to arrange finance to fund its operations (Slater, Hult and Olson, 2007). If there
will be lack of fund then it would become very difficult to implement the strategy in a
legitimate way. Thus, finance is also one of the important resources which are required for

strategy implementation.
 Materials for advertisement- In be evaluated that in order to implement the marketing
strategy in a proper manner, it is necessary to use suitable materials to market the product in
an excellent way. For this, firm can use attractive images and canopy to implement the
strategy effectively (Teece, 2010). Hence, material is also an important resource for the
strategy implementation.
4.3 Contribution of SMART objectives in effective implementation of strategy
SMART objectives play an important role in implementing the strategy. This is because; in
SMART objectives, specific goals are determined in numeric values. It helps the middle level of
employees to have clear direction in which they need to work.
M(Measurable)= This measure the time period required to complete the task. It can be done by
comparing the present sales with that of previous sales (Vorhies and Morgan, 2003).
A(Aim)= This indicates the objectives that can be achieved by the employees within a short period
of time. It has been analysed that aim of Tesco is to generate more profit by offering valuable
products to the customers.
R(Reliable)= It has been evaluate that Tesco can achieve its target by conducting various
campaigning (Yanadori and Marler, 2006.).
T(Time)= It can critically be analysed that Tesco can achieve its target within a period of 10-12
months.
CONCLUSION
From the following report, it can be concluded that in order to achieve success in this
corporate world, formation of different strategies is very important to increase the market share and
to easily accept the changes which occur in future. In addition to this, strategy also provides
assistance to company in achieving its desired vision, mission, goals and objectives. Furthermore,
report has shown that by using retrenchment strategy, Tesco can increase its growth rate. In the
following report, various methods are presented which can be used by company in order to develop
various strategies that would prove to be beneficial for firm’s success in the long run.

REFERENCES
Books and Journals
Olson, E. M., Slater, S. F. and Hult, G. T. M., 2005. The performance implications of fit among
business strategy, marketing organization structure, and strategic behavior. Journal of
marketing. 69(3). pp.49-65.
Peng, M. W., 2002. Cultures, institutions, and strategic choices: Toward an institutional perspective
on business strategy. The Blackwell handbook of cross-cultural management. pp.52-66.
Peng, M. W., 2002. Towards an institution-based view of business strategy.Asia Pacific Journal of
Management. 19(2-3). pp.251-267.
Slater, S. F., Hult, G. T. M. and Olson, E. M., 2007. On the importance of matching strategic
behavior and target market selection to business strategy in high-tech markets. Journal of
the Academy of Marketing Science. 35(1). pp.5-17..
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning. 43(2).
pp.172-194.
Vorhies, D. W. and Morgan, N. A., 2003. A configuration theory assessment of marketing
organization fit with business strategy and its relationship with marketing
performance. Journal of marketing. 67(1). pp.100-115.
Yanadori, Y. and Marler, J. H., 2006. Compensation strategy: does business strategy influence
compensation in high‐technology firms?. Strategic Management Journal. 27(6). pp.559-570.