Strategic Management: Tesco SWOT and PESTEL Analysis

Strategic management

Table of Contents
Describe the chosen industry or organisation ............................................................................3
Analyse the organisation's internal environment using SWOT analysis ...................................4
Analyse the organisation's external environment using PESTEL analysis and discuss it's
strategic relevance ......................................................................................................................6
Recommend which of the five generic strategies will be most appropriate for the chosen
organisation ................................................................................................................................7
Critically examine the following two components of strategy execution, discuss their
appropriateness for the chosen organisation...............................................................................8
CONCLUSION .............................................................................................................................10
RECOMMENDATION.................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Strategic management is defined as the planning, analysis, monitoring, analysis and
assessment of different organisation for achieving goals and objectives of the organisation. There
are various changes that occur in business environment for assessing the strategies for success.
The strategic process of the organisation helps in taking stock of the present situation, chalking
out strategies, deploying them and analysing effectiveness of different strategies. The company
which is considered in the following report is Tesco. There is discussion on the working of this
organisation, analysing the internal environment and external environment for the strategic
relevance. There is recommendation on the five generic strategies that is appropriate for the
company. Also there is critical examination on the different strategy execution and discussion on
appropriateness of the company.
Describe the chosen industry or organisation
The retail sector is facing vast growth since years. The retail industry in UK is one of the
largest private sector employer with having approximately more than three million employees.
Retail is defined as the sale of goods to the use or resale. This consists of stores, supermarkets,
market stalls, door to door salespeople and internet retailers. The best well known organisation in
the retail sector in UK is Tesco. This is a British multinational corporation that is dealing in
groceries and general merchandise. The headquarters of this company are located in England.
This company was founded in the year 1919 by Jack Cohen. This is the ninth largest retailer
across the world. Tesco has expanded globally since years and it is a great success. This
company is having stores in more than 14 countries across the world. There are approximately
more than 326000 employees globally. The food and drink retail sector represents the largest
industry offering large employment opportunities to people of UK. It is very important for
companies to analyse their global competition for doing well in market place. For analysing
markets, PESTLE analysis is used by this company. This analysis indicates that Tesco has to
monitor and respond to various uncontrollable forces which are posed by six factors like
political, environmental, socio cultural, legal, environmental, technological, etc. Another
significant aspect considered for evaluating the strategy of company is SWOT analysis. Tesco
follows hierarchical organisational structure and each and every action must pass through the
management. The vision and mission of the company are to offer technical and superior

representation and add value to the products and customers by giving customers new and
innovative services and products. This is done by improving productivity, quality, design and
services to a competitive edge.
Analyse the organisation's internal environment using SWOT analysis
Jack Cohen found TESCO in 1919, which that time was actually just group of market
stalls. In this with help of correct strategies and methods it became he biggest retailer in UK and
the second largest in world. To understand and critically analyse he internal environment of
TESCO,SWOT is performed that one can analyse and understand the aspects of creating a better
understanding and making certain variations which will help in maintaining and procreating
efforts in this zone. One has to use this model for understanding workings of TESCO and
making it benefit more after realising it. SWOT analysis is performed on any organisation to
understand he strengths which are core reason for its survival, weakness will provide things
which have to be treated and rectified, opportunities in upcoming market will work for benefit of
organisation and in last the threats will render things which are to be escaped or avoided by
company. The correct SWOT analysis for TESCO is given below briefly:
Strengths
 UK's biggest retailer grocery store: It is classified as the biggest grocery store in united
kingdoms and the second largest in world, its sales are higher than any store plus
revenues highest among all. As per the report of 2018 annual report their profits
increased by 28%.
 Diversity through geography: it has a huge presence in the world with almost 6800
stores within 14 countries, which states that it is present ins almost each corder of world
and stands as a good competition.
 Increase in stores: in 2009 it was seen that the number of stores TESCO operates in is
around 3751 and in present date it has reached to 6,966 stores world wide, each year the
percentage of revenues increase and new stores are opened up with different operating
diversity.
Weakness
 Failed operation in JAPAN & US: In early times of 2012, TESCO reached a position
where it has to exit completely from US & Japan. The failure was incurred due to failed