Strategic Analysis of Various Industries and Sectors
Added on 2019-12-28
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Strategic Analysis(3000 words)
Table of ContentsINTRODUCTION...........................................................................................................................1Company Profile..............................................................................................................................1Strategical Analysis.........................................................................................................................3Management Problems and solutions..............................................................................................6Recovery plan and risk management strategy for Tesco................................................................8Recommendations............................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONStrategic analysis is a technique which is used by organisations to collect and analyseinformation from a given situation. This data analysis assists management in understandingvariables and other factors in internal and external environment. Strategic synthesis supportsstrategic formulation and implementation process as this aids in controlling factors which mightimpact the organisation in future. In this report, situational analysis of Tesco is done. Thecompany is currently going through financial slow down due to some factors which will beanalysed in this report (Abraham, 2013). A proper analysis of Tesco and other related factorswill assist management in undertaking process of strategic changes, to improve organisationperformance and productivity. There are certain theories and models which will be used in thisreport as to increase the effectiveness. This project will also provide a recovery plan andrecommendations to solve existing problems.Company ProfileTesco plc is a multinational grocery and general merchandise retailer based in WelwynGarden City, Hertfordshire, England, United Kingdom. It was founded in 1919 by Jack Cohen inthe form of group stalls. In 1931, it came out with his first store and by 1939 Tesco gainedsuccess in opening 100 stores in different parts of UK. Today, A company is the third largestretailer in the world in terms of profits and ninth largest revenue maker. Tesco has registeredtheir presence in over 12 countries and currently it is on expansion mode (Aslani, Naaranoja andWong, 2013). The company has to maintain its image of being a seller of high quality productsand services for low cost. Today, the company has strong brand name and image in the global market. But it hasalso witnessed a fall in sales and an accounting scandal (overstating its profits and other financialdata) which forced the company in reporting a loss of £6.4billon in 2014-15. There have beensome major changes in the strategic formulation and decision making process of company. Also,it has to develop a monitoring system which is able to record every transaction and transition in acompany. Tesco has a well established process for strategic planning and practices. The strategicplan used by company aids its management in formulating and updating its policies andprocedures. There are certain steps taken by company for speeding up its decision making1
process. These changes are also aimed at reducing confusion regarding it strategic changes incompany. Tesco process for its strategy formulation and implementation is as follows:Tesco uses the process (as mentioned in the picture) to plan about its future strategy. Thisis adopted to affirm that company have to prepare a path for achieving its goals and objectives.The strategic plan has to be aligned with mission, vision and core competencies of anorganisation (Balasubramanian, Bhattacharya and Krishnan, 2015). Currently, the company ismaking changes in its strategy and other process to deal with the crisis. To understand theprocess of company in a proper manner its description is given below:Information collection: The first step in strategy formulation is to gather data and facts about allfactors which can impact the company in current scenario and future.SWOT analysis: This is a technique which is used by all the companies to know about theirstrengths, weakness, opportunities and threats. It assists the management in analysing theprevalent and future situations.Evaluation of Inputs: All the factors existing in the internal and external environment areevaluated by management. This will aid managers in analysing the impacts of all variables. 2
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