Strategic Management: Tesco's Strategies and Analysis

This presentation provides an overview of Tesco's strategic management, including its strategic direction, frameworks for analysis, competitive advantage, mission and vision alignment, and potential strategies for defending core business. It also discusses the importance of strategies in achieving business objectives and maintaining market share. The presentation concludes with recommendations for Tesco's future growth and success.

Strategic Management

INTRODUCTION
 Tesco PLC is known for its
wide spread range of feasible
grocery products.
 Being rated as third largest
retailer in the world, Tesco
has been ruling this grocery
market with its simple yet
exclusive management
strategies.

TASK 1: Strategic direction being followed by Tesco
in past
 Company has been extending its product range frequently
since its establishment.
 Continuous analysis of business environment both externally
and internally.
 Expansion strategies are always active. Markets are explored
and conquered with correct strategic planning.

Development of strategic thinking
Following developments have been experienced by the
organisation since last five years:
 International Expansion
 New Product range excluding food products
 Retail store developments

TASK 2: Frameworks for strategic analysis
Appropriate frameworks for
strategic analysis are
given below:
 SWOT
 PESTLE

Continued...

Company's competitive advantage among its
competitors
Tesco's direct competitors are:
 ASDA
 Sainsbury's
 Morrison's

Continued...
 Competitive advantage refers to a unique situation or
position in market where threats from substitution are
negligible.
 The company has highest market share of about 25%.
 Direct competitors are fierce but company has managed to
develop stability with introduction of a unique scheme of
24 hours shopping.

Probable industry scenarios
 Growth of e-commerce or digital shopping portals has
emerged in last few years.
 Existence of highly competitive firms is threatening to
amount of sales in UK markets.
 Low pricing strategy of ASDA and Sainsbury.

TASK 3: Alignment of mission and vision
with market demands
 Mission: Tesco wants to earn lifetime loyalty from its
customers by giving valuable goods and services. They will
also ensure that safety and quality standards are well
maintained
 Vision: To become the most valued business by serving best
to customers in communities Tesco operates.

Strategic capabilities of Tesco
Following are the components of Tesco's strategic capabilities:
 Price: Every category of product has to be priced in
appropriate manner so that buyers don't feel exploited.
 Innovation: It is predominant in all strategies that have been
designed till date for development of the company.

Continued...
 Relationship development: Customer demands and priorities
is the mission of Tesco.
 Human resource training: Entire product cycle is dependent
on skills and talents of human resource. Their training is a
must for sustainable development.

TASK 4: Potential strategies for defending
core business
Given below are some strategical improvements suggested for
the company.
 Advertising/Marketing: Digital marketing techniques can be
adopted.
 Distribution: Quick deliveries with better payment options
is the current distribution trend in markets.

Continued...
 Pricing: Good pricing will prohibit purchasers from
substitution.
 Progressive merchandise: Developing ways in which
commodities are delivered with uniqueness and innovation.
 Profit protection: Profits must not be overpowered in race of
achieving global markets.

TASK 5: Analysis and evaluation of
recommendations
 Proper and regular employee training will improve internal
competency levels of Tesco.
 Spending appropriately on advertisements.
 Focusing more on quality of work than quantity to get best
feedback and positive response.
 Employment of strategies to grab possible opportunities is
highly recommended (for eg. Business expansion).

Continued...
 Sufficient money must be divided for different purposes.
Strategies of collective promotion help in saving loads of
capital.
 Social media and other popular websites are cheap and
greatest source of marketing.

CONCLUSION
 It has been realised from this presentation that no business
can achieve its objectives without strategies.
 Plans are made so that a direction for working can be
obtained.
 Establishment of these many retail stores across different
countries and maintaining a good market share cannot
happen without proper strategic plans.

REFERENCES
Books and Journals
 Hitt, M. A., Ireland, R. D. and Hoskisson, R. E., 2012. Strategic
management cases: competitiveness and globalization. Cengage
Learning.
 Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic
management: theory: an integrated approach. Cengage Learning.
Online
Defensive marketing. 2014. [Online] Available through:
<http://www.marketing-schools.org/types-of-marketing/defensive-
marketing.html#link1>. [Accessed on 4th January 2017].