Strategic Management: Tools and Techniques for Effective Administration

Strategic Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PESTEL analysis.........................................................................................................................1
SWOT analysis............................................................................................................................3
Porter’s five force analysis..........................................................................................................5
Value chain analysis....................................................................................................................5
VRIO analysis..............................................................................................................................5
Ansoff Matrix..............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Strategic management is the strategic utilisation of a business assets or resource to reach
organisation aims and objectives. Strategic management needs reflection on the activities and
procedures in which the firm and external components that may influence how the firm
functions. It consider setting objectives, determining the competitive atmosphere, analysing the
internal organisation, measuring plan of actions and assuring that ammonisation rolls out the
strategies crosswise the venture (Ansoff and et. al., 2018). To assure the determination devising
activities, it is essential that tactics are in place to support the business functions and operation.
This written document is based on Tesco which is a British multinational groceries and general
merchandise retail sector company. This venture was incorporated in 1919 by Jack Cohen and is
headquartered in Hertfordshire, England, UK. The respective firm has its shops and retail stores
in seven nations across Asia and Europe. There are approx 450,000 people are employed by the
establishment and they make their contribution in business operations of the firm globally. This
document will consider information about the strategic tools and techniques that are used by the
administration of a firm for effective administration of enterprise. It will consider the aspect of
compare theory and practices to compare the models which make their contribution in effective
management of establishment.
MAIN BODY
PESTEL analysis
It is a tool and framework which is used and implemented to determine and analyse the
macro-environmental components that may have a profound influence on an establishment’s
execution and business performance. This model is especially useful to manage and administrate
the business activities and operations of a company when macro environment factors affect the
firm. It is often utilised in comparison to other analytical business tools like SWOT analysis and
Porter’s Five Forces to provide a clear understanding of a situation and associated exterior
elements (Schilling and Shankar, 2019). By using this model, the management of organisation
like, Tesco can determine the impact of external factors over its business. The description of it is
as below:
Political factor- This component consider diverse elements like government intervention,
political stability or instability, trade restriction, foreign exchange policy, taxation policy,
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