Strategic Management Analysis of Tesco

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
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1STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Introduction....................................................................................................................2
About the company........................................................................................................2
Journey of Tesco in retail industry.................................................................................3
Porter’s five forces analysis of Tesco............................................................................4
Resource-based view of Tesco.......................................................................................6
VRIO analysis of Tesco.................................................................................................8
Strategy clock of Tesco..................................................................................................9
Recommendations........................................................................................................11
Conclusion....................................................................................................................12
References....................................................................................................................13

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Introduction
Strategic analysis is considered to be a process that is implemented by the
organizations in order to analyse the external business environment in which they operate.
The implementation of strategic analysis is considered to be highly important for the
organization to ensure smooth operations of the organizations. The goals or the objectives
that have been set by the organization can be fulfilled with the help of proper strategic
planning based process (Daspit et al. 2017). The organizations can thereby strive to make
effective improvements in the process of strategic analysis that will be able to provide
support in the determination of the areas in which improvement is required. The efficient
functioning of the organizations is based on the ways by which positive changes can be
implemented effectively (Simon, Fischbach and Schoder 2014).
The report will be based on the analysis of an organization that has been successful in
its operations in different areas or countries. The ways by which the organization has been
able to maintain its operations in the industry will be analysed with the help of
implementation of different frameworks and strategic tools. The industry of the organization
will be analysed with the help of Porter’s five forces analysis framework and internal
environment can be studied with the help of resource based view framework. The
organization that has been taken into consideration for the analysis is Tesco.
About the company
Tesco PLC that is trading as Tesco, is a multinational general merchandise and
grocery based British retailer that has its headquarters in Welwyn Garden City, Hertfordshire,
England, United Kingdom. Tesco has gained the position of third biggest retailer in the entire
world with respect to the amounts of revenues that have been earned by the organization.
Tesco has its shops in more than seven countries all over the world in different parts of

3STRATEGIC MANAGEMENT ANALYSIS
Europe and Asia (Tesco.com 2019). Tesco has also been able to gain the leadership position
in the grocery based industry of the United Kingdom. The stores of Tesco are located in
different areas including, Hungary, Thailand and Ireland. Tesco was established in the retail
industry in the year 1919 by Jack Cohen. The name of Tesco had first appeared in the year
1924 after Cohen had purchased a shipment based on Tea from T.E. Stockwell (Tesco.com
2019).
Journey of Tesco in retail industry
The rise and growth of the brand of Tesco had started from the year 1930 when the
headquarters and warehouses of the organization were built in different areas of North
London. Tesco had received the status of a private limited based company in the year 1932
and the organization had also floated in the stock exchange. The zeal of expansion was
depicted by Tesco in the 1950s when the organization had purchased more 70 stores of
Williams and 200 stores of Harrow. The rapid expansion of the supermarket had started from
the 1960s and the company further went on to become the largest retail organization in the
United Kingdom (Afrifa 2016).
The supermarkets were successful in bringing changes in the ways by which people
shop and tend to fulfil their needs and demands. Tesco started diversification of its business
operations in the year 1974 and the company was further able to maintain its leadership
position in the industry with the help of increase in the levels of profitability in different areas
and businesses. The grip of Tesco in the retail of the UK had increased after the 1990s with
the help of large number of stores all over the country (Barros, Hernangómez and Martin-
Cruz 2016).
The company further aimed at overtaking Sainsbury’s that is the largest retailer in the
UK. The marketing campaign that had been developed by the organization was considered to