Strategic Management

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Recommendations to Tesco ........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is the balance of ongoing business planning, analysing internal
environmental and monitoring all necessary factors of an organization to meet its objectives.
Modifications in business environment will need Tesco to continually assess their strategies for
achieving success. Tesco applies Ansoff's matrix to identify and analyse its growth related issue
that impacts its strategic management. This assignment defines growth theories that are
implemented by Tesco to acquire higher level of shares. It grows market share by developing
new segments and increase its profits. Tesco maximizes its operations scale to reduce production
cost. It establishes value preposition to keep long term sustainability and verify its revenue
stream. Tesco analyses the outcomes of using growth strategy which supports in displaying clear
evidence of evaluation and synthesis. It focusses on achieving competitive advantages by
targeting specific markets. Tesco prefer this strategy because it preserves quality, efficiency to
broaden its scope of durability.
MAIN BODY
Analysing and addressing growth issue of Tesco using Ansoff matrix. This issue
is related to strategic management which affect business if not solved. So, Tesco implement this
tool of growth to identify and analyse business situation to accept new opportunities and
challenges of market.
Ansoff's matrix
This model is a strategic framework created for the organizations which believe in
attempting new challenges beyond the usual business. It is very necessary in planning strategic
management of organizations to look at opportunities to grow business revenue through
developing different services and products by diversifying in new markets. Ansoff matrix is used
to identify the different tactics that should be used in the planing activities. This matrix is used
for evaluation and synthesis of organizations. Advantages of this model is it has easy way of
discussing different options such as strategic choices and calculate risks factors. It can be
understand very quickly and easily. It provides easy alternative strategies of growth to
organizations by which they can increase profits and their goals.

Disadvantages of this matrix are rivals are ignored. Sometimes lack of cost benefit analysis occur
while taking correct decisions. It becomes very difficult to predict the impacts of implementing
these strategies on profit and sales of company. There are some limitations of Ansoff's matrix:
this model is simple to its extent because a lot of thought is required to implement it in any
organization. It does not include reward factor while measuring risk.
Ansoff matrix has four unique and possible scenarios of growth strategies:
Market penetration
This strategy measures and compares the estimate volume of its own services and
products used by consumers. It is least risky because it has advantages of organization's existing
abilities and resources. This strategy helps in increasing market share with existing opportunities
in current segments of market. Marketing penetration supports in achieving high market shares
by combining pricing strategies and promotions. It has secure dominance of growth in current
markets. It helps organization to increase service utility volume of existing consumers by
launching different schemes of loyalty. It helps to understand and conduct new campaigns to
make unattractive market for new entrants and competitors.
Tesco starts its operations to identify and penetrate in different markets to find new opportunities
of market expansion. Tesco applied market penetration in its business to focus on strengthening
and increasing its market share in existing market. It started to maximize its market share by
offering club card points to its consumers. This idea of providing club card points supported it to
gain customer loyalty and identify those consumers who believe in brand rather than products.
This club card scheme became successful trump card for Tesco. Tesco offered free gifts like buy
one get one free promotions on specific products to boost sales volume. It became first brand and
entered in market by its own website where it self-advertise its product and expanded. Tesco
offers twelve months guarantee scheme on all its electronic products to gain consumers trust. It
modifies its price strategies like big price drop for attracting new consumers in existing markets.
It maximizes its efforts of promotions and distribution to focus on increasing sales volume and
business expansion. Tesco usually focus on acquiring the greatest level to challenge competitors.
It changes opening hours of its grocery store and super markets. It reduces processing time by
using different technologies in its production department. Tesco showcases its entire portfolio of