Strategic Management: Analysis and Recommendations for Tesco Plc

STRATEGIC
MANAGEMENT

EXECUTIVE SUMMARY
Strategic Management refers to the procedures and practices which allows an
organisation in gaining a competitive advantage in the marketplace. Hence, below is the report
based on Tesco Plc, which is one of the most recognised supermarket chains in the UK, and
which has recently experienced a massive trade loss.
One purpose of the report was to appropriately analyse the issue of the organisation. To
attain this purpose, PESTLE analysis has been used, which is framework to appropriately assess
the current situation of the company which helps in evaluating aspects leading to the issues of the
company.
Another purpose of this report is to appropriately suggest a modified theory which would
assist the company in a way forward. For this agenda, Bowman's Strategic Clock was used in
comparison with PESTLE analysis, which helped the organisation in assessing several strategies
which could be adopted by the company to position its products in the future. Thus, through
effective analysis, Monopoly Pricing was the strategy which fitted best with Tesco's strategy
forward in support of its thinning of product portfolio.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE Analysis...................................................................................................................1
Bowman's Strategic Clock......................................................................................................5
CONCLUSION................................................................................................................................8
RECOMMENDATIONS.................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is the continuous process which involves planning and observation
which is necessary for the company in order to meet their desired goals and objectives. This
process helps the organisation and take their stock and financial conditions to the present
situation and analyse the efficiency and effectiveness of the management strategies. Strategic
management predetermines the clear understanding of organisation, mission and vision which
helps them in order to meet their future requirements (Welford, R., 2016). It is a process which
helps the organisation in making logical decisions and evolve the technology in market and
business conditions. This report is in the context of TESCO, which is a British multinational
retailer headquartered in Hertfordshire, England, UK. It has shops in seven countries across Asia
and Europe which is the market leader of groceries in UK. Currently, company is facing trading
loss and for this they adopt two strategies PESTLE analysis and Bowman's strategy which helps
in analysing the competitive position of market and compare the offerings of its competitors.
MAIN BODY
PESTLE Analysis
PESTLE analysis is determined as an approach and framework of the external macro
environmental factors which is used for scanning the environmental part of strategic
management. Here, the pestle analysis is done on TESCO which is going through some major
problems which is impacting its major business operations. It is done to identify the impact of
external factors upon the current condition of TESCO.
The major purpose of this theory is to provide a deep insight on the current situation of an
organisation. In addition to this, it takes in account the factors which are responsible towards
influencing the company's decisions and how its current practice is either benefiting the company
or being a disadvantage based on several external factors.
In the case of Tesco, the firm has been offering products at higher prices. Moreover,
while it deals in several products, its competitive advantage is compared by the ones who have
lesser range as well as cheaper price rates such as companies like Lidl and Aldi (Tesco results:
the five reasons behind Tesco's historic £6.4 billion loss, 2019). Furthermore, dealing in
standardised products and wide portfolio has been a major cause for the company in terms of
suffering a massive training loss quite recently. Thus, the reason for using PESTLE analysis is
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