Strategic management

Strategic Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational environment...................................................................................................3
Competitive plan....................................................................................................................9
Risk attachment strategy.......................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is defined as the process that is utilised by the organisation for
accomplish of company goals and objectives. The main purpose of strategic management is to
involve and set objectives, analysing competitive environment, internal organisation and
evaluating operations that aids management to roll out strategy across the organisation. With
strategic management organisations are able to develop with analytic process that helps to obtain
better position in market (Zuo and et. al., 2015). This report is written from perspective of Tesco
and it highlights on the organisational ideas that are related with different aspects of business
policy, strategic management and the philosophical aspect to implement a particular
methodology. Along with this different models such as Porter’s five force, SWOT etc. will also
focused in the report to analyse theory and practices related with organisation. In the last, risk
management strategy for respective organisation to overcome from barriers in also include in the
upcoming report.
MAIN BODY
Organisational environment
The term organisation environment is explicated as an aspect that is composed of different
forces and institutions which is surrounded by an organisation. All of this forces impacts on the
performance of company operations and functions. This includes all elements which exist outside
the organisational boundaries. Government regulatory, competitors, supplier and customers are
some of the external forces which exist as an organisational environment. Further, it directly
impacts on the potential market and portion of Tesco. It also governs that organisation is facing
more number of challenges from competitors as respective organisation operate business in retail
sector and they face challenges from both internal and external company due to wide scope and
demand in retail industry. Therefore, it is essential for Tesco to formulate an effective strategy
that satisfies needs and wants of customers in proper manner. It also determine there are different
challenges are faced by the Tesco to complete their work in an appropriate manner. Along with
this by formulating an effective strategy management is also able to accomplish competitive edge
in market (Bergh and et. al., 2016). The main motive to analyse environment is to identify and

understand current situation because it helps to modify strategy according to the existing market
conditions and environment. Pestle analysis help authorities and management to analyse all
external conditions to manage an accurate strategic administration that support to deal with the
situation of competitive forces in market. With understanding current business objective pestle
tutorial is conducted for the detailed analysis of external environment. Along with this PESTLE
tool also helps to analyse unpredictable environment that helps to discuss different factors related
with Tesco performance and operations.
 Political factor- Tesco perform its operations and functions at global level and it is well-
known for their retail products within Europe and Asia. Along with this Tesco also
exposed its stores in different political areas. So with political analysis management is
able to gain knowledge about tax rate, legislation and the political instability of
government (Bergh and et. al., 2014). So organisation formulates strategy that helps to
operate business with ethical manner in order to complete all task and operations in an
appropriate manner.
 Economic factor- This defines there are different task and operations by management but
all of them are managed with motive of earning profits. Further, economic aspects also
play an important role for organisation and it leads company to earn more amounts of
profits. With economic aspect it is analysed that organisation perform an important role in
strategic management because with the recent change in minimum wage act enhance the
expenses for Tesco. So with right strategy cost for organisation is managed appropriately
that helps to deal with competitors in an effective manner.
 Social factor- With the analysis of consumer shopping the trends related with business is
constantly changing. This refers that the society requirements are dynamic so to manage
strategy and competitive factors it is important to manage business in an appropriate
manner. Individuals who are living in UK follow tight schedule so they require fast
delivery of products. With social aspect it is identified that Tesco rely on UK market area.
So to deal with this strategic management helps to develop flexible policy which helps to
retain customers for longer period (Bettis and et. al., 2014).
 Technology factor- In the previous years, some different issue is faced by the
management that are poor customer experience, scandal related with meat etc. So to deal
with such issue management is focused for utilising technology aspects because it helps