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(PDF) Strategic Management of Tesco

   

Added on  2020-10-22

14 Pages4960 Words86 Views
StrategicManagement

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Strategic direction that has followed by the company regarding strategic thinking...................3TASK 2............................................................................................................................................4Appropriate model to review the external environment of the company....................................4Company's competitive advantage among its direct competitors...............................................5Industry scenarios facing the company within its existing market domain................................6TASK 3............................................................................................................................................7Extent to which company is facing strategic drift.......................................................................7Mission and vision statement are aligned to the demand of the marketplace.............................7Strategic capabilities of company Tesco....................................................................................8Business Canvass Model to portray describe company within market to its clients ................9TASK4...........................................................................................................................................11Strategies that the company could follow to defend its core business......................................11TASK 5..........................................................................................................................................12Recommendation for the company ..........................................................................................12CONCLUSION.............................................................................................................................13REFERENCES..............................................................................................................................14

INTRODUCTIONStrategic Management is an important tool which is used by the organisations for theeffective planning and control. It is essential for the company to frame appropriate policies andrules so that management can be improve(Ansoff, 1980). In this report chosen organisation isTesco which is established in United Kingdom. It is a multinational groceries and generalmerchandise retailer. The aim of the company is to develop better strategies so that it canachieve sustainable success. It covers the following topics like: strategic directions which areused it, analysis of external environment and competitive advantages, strategic drift, strategiccapabilities of organisation, benefits of Business Canvas Model, possible strategies that it canfollow to defend its business. Apart from this future recommendations are also discussed so thatit can address the problems which can influence the business of it.TASK 1Strategic direction that has followed by the company regarding strategic thinkingStrategic direction is important for the organisation so that it can enhance theperformance of its business. It provides the instructions to the management regarding strategicswhich is needed to be implement in the business so that management can be improve. Tesco canfollow its policies, rules and regulations so that it can take better decisions which can enhanced

the performance of the company. There are various strategic direction which has followed by theorganisation which develops the strategic thinking and these are as follows:A differentiated brand A differentiate brand can able to develops the better image of the organisation in themarket. The brand of Tesco is able to creates the long term value for their customers and itimproves the goodwill of the company. It always find out the effective ways so that it canseparate its brand from others. Reducing operating cost:It is essential for the organisation to earn more margin of profit and it is possible throughby minimisation of operating cost in the company(Bromwich, 1990). Tesco is able to reduce thiscost by £1.5bn and it always encourage the cost conscious culture so that it can increase theprofit margin and it maximize the profitability. It shows the effective strategic of the organisationwhich develops insights in the board of directors so they are able think this and minimise theoperating cost.Maximise the value from value:The property portfolio of the company is momentous and it always out the effectiveopportunities so that it can provide enough space to their consumers(Chakravarthy, 1982). Tescohas released accumulated value of £1.4bn through its property. It is earning return of investmentfrom 41 percentage to 52 percentage from its assets. It shows the good strategic which is used bythe organisation which is the result of effective thinking and it creates the value for thecustomers.These are the various strategics which are used by the organisation in last 5 years whichshows the effective strategic thinking of the company.TASK 2.Appropriate model to review the external environment of the companyPESTEL model can be followed by the Tesco so that it can analyse the influence fromexternal environment. It is essential for the organisation to evaluate properly these environmentalfactors so that it can defend itself from the negative impact of these factors. This model hasfocused on mainly six things which are as follows:Political factors:

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