Strategic Management Assignment: Analyzing Tesco's Challenges and Opportunities

This assignment delves into the strategic management practices of Tesco, a leading multinational retailer, focusing on its recent challenges and opportunities. It analyzes the company's performance, identifies key threats and competitors, and proposes strategic recommendations for future growth and stability. The analysis highlights the importance of value-based products, effective logistics, online market expansion, and international network development for Tesco's success.

Running head: STRTEGIC MANAGEMENT ASSIGNMENT
Strategic Management Assignment
Name of the student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Company Analysis...........................................................................................................................3
Threat management strategies.........................................................................................................4
Conclusion.......................................................................................................................................7
Recommendations:..........................................................................................................................8
Reference:......................................................................................................................................11

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Introduction
Everything in this modern world has to be jotted down and analyzed properly. Everything needs
a basic and proper framework upon which basic foundations of any start-up or projects can be
laid down. Strategic management in one way or the other is among those methods which actually
help in analyzing the internal strength of a corporation or an organization. Strategic management
is a way to help a company’s basic structure and framework to get stronger and reliable. This
methodology directly depends upon the statistical analyzing of the competition of a certain
company. And partly depends on the basic moral values and principles that a company
implements in their modus operandi. The organization that will be lime light of this specific
discussion is a company named Tesco. Tesco is one of the biggest and famous names in the field
of superstores that are located in Europe. It is a multinational merchandise retailer that sells all
the groceries and domestic items. It has it’s headquarter in Welwyn Garden City at Hertfordshire
in United Kingdom. Tesco as an organization deals with most of the fields that are linked to
superstores and you can get almost anything on their store shelves. The huge variety can start
through things such as groceries, and that of all types that one can possibly imagine. One can
also get all the type of imaginable merchandises in the country. Apart from all the availability of
the stock and everything Tesco is also going neck to neck with all the organizations in the global
market (Tesco.com, 2018). This is a result of sheer dedication and honest as the groceries and
merchandises supplied by them is fresh and new. The most important principle the work upon is
to never compromise with quality. They offer all these services at a very precise and reasonable
rate and with all these principles combined Tesco now wants to be the number one leading
organization in their market and field. At the current times Tesco has implemented various
policies so they can make their presence permanent and stable and Strategic management of
business is one of them.
Every organisation has to come up with a proper planned out structure; Tesco also has come up
with few outlines which can help them to grow as an organisation. The principles that Tesco has
come up with is popularly known as Strategic management. In simple terms the phrase strategic
management can be defined as a analytical method by which an organisation can find out the

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area of lacking , in what fields does it needs improvement and what are financial resources
available to them so they can go ahead and solve the problem.
Company Analysis
Research and statistics
The goal Tesco has set for the current business quarter is to properly differentiate and a make
sure that there is a proper flow of business is there in each and every part of the world. And it is
very obvious that if an organization is going to expand their business there will be challenges and
that too in a considerable magnitude. These challenges can range from social and cultural to
political fields. Tesco before using Strategic management had implied a different tool of business
management popularly known as Greenfield strategy; obviously it had its own perks (Vu, 2016).
But the numbers of demerits when compared to the number of merits were much more than,
what was practically feasible. Here comes the proper use of Strategic management. Few points
needed to be outlined regarding Strategic management such as; what are the products or services
does Tesco provides. Up to what levels is a company’s product is available in the market and
what does the other companies are providing at the same price point. What are the variable and
valid alternatives which are available in the market which can replace the offerings by Tesco. A
proper study of the competition that exists in the market. A properly analyzed point based
structure of how the competition is affecting the business (Tesco.com, 2018). How the profits are
decreasing. If there are any variable alternatives to the products offered by the Tesco how can ,
Tesco as an organisation can eliminate them from the market to increase their profit and to fit
with the market.
Tesco widely recognised as an organization that offers wide range of household products which
are nourishment and dresses. In 2015, an incredible loss is experienced in 2015 of 6.5 billion
pounds and this conclusion is capable to investigate the hazard elements, the purposes behind the
perils and furthermore has cast much focus on the miserable Tesco loss in that year. The
appraisal has possessed the capacity to examine elementary data and measurements of Tesco and
determines the loss that the company had experienced. The company Tesco tried to establish new
business in United States of America and that time there took place a downturn in American
market, so they needed to set off their business. They tried to make good relationships with

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American market but unfortunately their market business faced a huge loss could not be kept
away. The appraisal has permitted in looking into on the United Kingdom’s market and
furthermore breaks down the assortment of items and tastes of individuals. The risk management
plan has also been stated and they gave furthermore substantial focus to discuss why the new
proposals should be followed by the company.
Tesco put their feet on the United Stated in the year of 2007, and in that year itself two
companies went ahead and merged their plan with Tesco to go ahead and, together rule the
concerned market in the U.S. One of these two companies was known as “Wild Rocket Foods”
and the other was “2 Sister Foods” (Dwyer et al., 2017). After starting the partnership they
opened their first store in the same year. The location was Hemet that was in California. The plan
was to reach the top in the next few years and the aim was to make the graph move in an upward
direction. And actually in the year of 2010 Tesco opened about 168 stores in California.
Power Sharing
Since then Tesco has maintained a proper reputation with the competition. And they made sure
the relation was healthy and positive. And here comes the concept of partners and power sharing.
Not only Tesco has made proper partners but maintained them very efficiently. Obviously in
order to make sure that the organization is walking on the correct path then few questions and
points must be jotted down and worked upon. Tesco as an organisation what kind of partners are
they looking at so they can strike a deal. Power sharing not only means that how the power
should be shared that is available to the organisation but as to where and how the power should
be shared so the other companies don’t misuse it in any way possible (Griffiths and Lucas,
2016). It should also be look out of the company to eliminate such reasons or which the existing
partners should go and end the deal or contract they are in. To summarize, areas of future
partnership should be considered so that the business might grow and to make sure that the
current existing partnership should also be in a stable condition
Threats and competitors

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Threats may come from clients, the shape of economic disaster, as inventory marketplace threats.
Those should be taken into consideration for a massive brand named Tesco during increasing the
business in all parts of the world. Hence, the threats from the factitious are able to demonstrate to
be a consequence for the corporation and which may be a diminutive maintain, or only a solitary
section from any accumulate is capable of deliver what the purchaser is searching out as a result
meeting the patron’s demand (Lukas and Welling 2014). The corporation can live on studying
the powers of bargaining of alternative business that can be competitive. It is to be noted that
Tesco is fantastically face huge opposition from ASDA, Morrison’s and Sainsbury who survive
as sturdy brands within the comparable marketplace subject (Sivalingam 2018).
Threat management strategies
Suffering of Tesco is noticeable from a lack of 6.4 billion pounds in 2015. That is the most
important recorded loss within the records of the corporation. Tesco is sincerely chief name
within the United Kingdom excessive streets. It is capable of drawing populace of heaps on day
by day foundation. According to David Lewis, it is far the most important loss quotation. It is
caused due to the lack of “big large variety”. Loss is shaken by the above mentioned company.
They have tried to pull through the monetary strategies of Tesco by remodelling the management
plans, and different plans relating to lessen the threat of facing this kind of first rate loss again in
future (Azam 2015). Surprisingly, the statistics and different information regarding their loss
stated that more than 5000 head offices had been made closed and the jobs at the United
Kingdom’s shops control and the jobs in the different international locations remote places has
resulted in doing away with 4000 jobs from those who laboured on the corporation’s banking
department. Tesco must introduce control techniques to all its gadgets foreign places in addition
to in the United Kingdom to lessen the chance and vulnerabilities of the organisation in handling
one of these losses once more. Several of them are indexed under.
1. Strategic making plans and control: The company governance phase of the inauguration,
Tesco, within the yearly document and monetary declaration is restricted with extremely short
define and element that offers statistics on the making plans and manages structure this is used
and accompanied with the aid of the group (Frynas and Mellahi 2015). This information may be

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making use of under sales and assets expenses and it subsequently allows in setting up and
conniving tactics for the commerce and objectives of it.
2. Beginning with employees: Tesco in this situation ought to invest labour and cash in proper
workforce education and effectual employment. This would make sure that the specified
organisation countenances squat revenue prices and there could be a fragmentary progress in
worker performances and employment sports that in turn could be advantageous for hold right
retailer and purchaser courting. It will in addition make certain that the business enterprise is the
use of exact green people to offer what the customers are demanding. Well-organized operations
can make certain that the requirements of patron are nicely met on the accurate time by means of
the proper merchandise.
3. Patron fits: This approach is ready focusing on the purchaser and consumer’s association
with the association. The patron healthy is extensively established approach through numerous
different corporations that allows in growing the client loyalty in a long time financial overall
performance of the business enterprise.
4.Financial capital: this may be mentioned the quantity of fairness that is necessary to cowl
sudden losses which are confronted via an agency on the idea of encoded solvency general
generally, that is a scheme that Tesco be able to employ for decreasing the hazards in prospect.
Financial capital is the standard commonplace money with which any chance may be
enumerated. It is far exceptionally significant to apply the identical as an alternative comparable
methodologies and ladder to become aware of by means of the issues and the vulnerabilities in
figuring out any values of organization, for this reason assembly it greater it greater best for
menace.
5. Defining enterprise targets: Numerous frameworks may be located that are utilized by
organizations to border their tactics and schemes. A SWOT evaluation has been done to the
greater nuanced form of continues a holistic Balanced Scorecard. It is incredibly vital for Tesco
to acquire supplementary and superfluous steps in incorporating the dangers and examine them
before dispense.
6. Following RAROC: RAROC stands for danger-adjustment return resources. It is also
expected after returning taxes or it may be used as a proposal this is alienated with the aid of its

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monetary capital. Tesco should observe its hazard adjustment go back resources and in
perforating so, it can lend a hand in preserve their yearly budget and make use of this footstep as
an ability step in decreasing their dangers and intimidations of upcoming loss.
7. Establishing KRIs: KRI stands for the important thing hazard signs. It typically evaluates the
ancient recital however it also recognizes the destiny barricades.
8. Figuring out risks: Suffering of Tesco have been identified from first-rate losses within the
topical past. It is exceedingly crucial to pick out the danger aspects on a periodical and monthly
basis. A suitable team should be employed who can check out the problems in intensity and
examine the danger factors after which take essential steps in extenuating them to the fullest in
order that the business enterprise does now not suffer from further loss.
9. Organising KPIs: the total form of KPI is fundamental overall performance signs. The
quality indicators mirror suggestions and ideas to the business enterprise to pull enhancements
which are necessary. In order to set up a major performance pointer, by way of Tesco, might be
very supportive to keep music on the recital of the entire unit which are running underneath the
management crew.
10. Provide Reporting and monitoring: For a huge scale enterprise like Tesco, it is crucial to
have a deliberate coverage procedure that would examine the hazards and prospect intimidation
from now not best economic sectors but additionally from the competition. Monitoring of
information pertains to all units of the management could be very critical. Tesco must preserve
statistics of that on a monthly basis to keep away from the risks that can emerge within the
marketplace.
Conclusion
This analysis is fruitful in breaking down and discouraging the shortcomings and contradictions
that Tesco, one of the foremost markets in the world has suffered from great loss. The company
should follow the proposals that is taking valuable steps in taking care of the substantial number
of partners that they can build very good status and market estimation of the organization around
the world, they need to update their technological activity and make their online website more
reliable, they must improve their cloth business and bring up new variety of garments. The most

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important thing is that Tesco must expand their market in south East Asia and china market. So,
they need to investigate their inbound chain of business and also upgrade money related thing.
Tesco must utilize an esteem chain strategy for the organization to extend in China and other
south Asian nations. The inbound business will help in collecting resource from the south Asian
market and in this way they can understand the customers demand for product. The company
has also provided the recommendations to finish the reassessment in a positive way that
recommends growth and stability. They should give proper training to the employee and make
them understand what customer needs and take feedback from the customers for business
expansion. The company should understand the economic conditions of the market and think
twice before investing of money.
Recommendations:
TESCO is a multinational merchandise retailer that sells all the groceries and domestic items. It
has its headquarter in Welwyn Garden City at Hertfordshire in United Kingdom. Recently the
company has faced a huge loss of nearly 6.5 billion pounds. It had to suffer from huge losses
because of the economic downturn . TESCO had to unemploy many staffs as well as loss of
products and supply chain management affected the company. That the logistics department also
had issue and did not work well had been analysed for this downfall. This severe economic
damage there is to be kept in mind when the recommendation will be provided for the strategic
management of TESCO. The future risks and threats faced by the company are to be analysed
properly before giving the recommendation. TESCO must be recommended certain points that
would support them to succeed in dealing with the losses. The massive loss that the company
had suffered just before happened during 2015 should never be recurrent .
 Value based and high end products would have to be produced . This would help the company
in adding more customers. TESCO have to modify their logistics and management plans to make
sure of enhancement of the financial capacity of the company.
 Being a big international name and holding its’ standard brand value, TESCO should use its
original brand name when they will sell their products. in the widespread market .

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 The management of the organization is very important part. This managerial department
should be well efficient to overcome the loopholes of delivery process and the ambiguity in the
set of rules. This is main factor for the flexibility in the market.
 Tesco must take necessary footsteps in dealing with the large number of stakeholders in order
to increase the overall position, reputation and market value of the company.
 TESCO must initiate the effective planning regarding the online market. The marketing
through social media have to be more reliable and efficient. The online portal like the internet
sites through which Tesco generally sells its products requires to redesign itself by applying
new technological information and updates. Serving the customers belonging to various
backgrounds and diverse tastes and choices should be the target of marketing.
The communication can be accomplished through the social networking
sites. There must have more engagement and interactive sessions with the
customers and the staffs through all types of media in the forms of new
technology to promote the products and the services of TESCO. The
organizational website is important to keep record of the information of the
company. The regular updates and information must be posted on the
company websites. The information and new offers about the company must
be updated in their official websites .
 Tesco must upgrade and spread its non-food business widely. There are utmost competitions
in the American market. Along with the food and grocery the focuses should be given on other
materials that a store can offer. The range of variety of the products must hav been increased. So
TESCO must deliberately take the decision about making the list of the new products can be
introduced to sell.

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 By spreading the business expansion TESCO can help to take initiative in the massive rise in
economy in UK. It can spread the networks in the United States thoroughly. It should be
possible by developing effective marketing strategy.
 Tesco must make their customers aware of the different and new experiences on retail
business to attract them. The improved changes are always well accepted by the existing
customers. The American market is diverse and the customers will surely ask for various
products as per their changing tastes and preferences with the progress of time. Tesco must meet
their expectation and satisfy them efficiently.
 Tesco needs to expand networks internationally to make its units available to other Asian,
south Asian and East European countries and find its customers to serve the customers globally.
 One of the most important things that Tesco requires to fortify their inbound chain of logistics
by which the company tries to improve and enhance their monetary capacity. The upgraded
version of logistics TESCO must use a method of changing value for the company to extend its
business to China and the countries of South Asia.. There remains the customer interest in the
Chinese technology as it is much more advanced. So the modified specified logistics that will
help in gathering technological resource from the Chinese market so that they can provide the
products that are most desired by the customers.
The recommendation for the risk management process of a company should include in keeping
in the mind the five steps that combine to deliver a simple process.
First of all the risk is to be identified. Then the board members of the authority will try to analyze
the risk factors. The hazards of taking the risk should be discovered with foresight. Then the
solution factors are to be sought. After evaluating properly the risks should be listed. In the
aspect of treating the risks the professional experts should be involved. Proper risk
management will decrease not only the likelihood of an event occurring, but also the importance
of its impact. At last the solutions should be monitored and review of the risk factors ought to
be done properly. To foresee the risks and estimate its impact is the most crucial for the
management plan. If any unexpected and uncertain event occurs , it can both the positively and
negatively influence objectives of the project. Before the potential problems arise, they are to be
identified before that.

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In the case of high risk there should have additional management controls to minimize the
hazard to an satisfactory level. The additional controls might be according to their affordability
and priority. Monitoring of all risks and their regular review is a key part of effective risk
management. Risk Management is a system where the execution of the policies, processes and
policies and the actual targeted tasks have to be analysed, assessed . The monitoring and
communication are also important for the assigned tasks.
It is an mathematical process that, can give its best for the progress and improvement so the
recommendations with greater knowledge regarding this issue are surely required for the
betterment of the company like TESCO.

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Reference:
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Ltd.
Dwyer, D.E., Lynfield, R., Losso, M.H., Davey, R.T., Cozzi-Lepri, A., Wentworth, D., Uyeki,
T.M., Gordin, F., Angus, B., Qvist, T. and Emery, S., 2017, October. Comparison of the
outcomes of individuals with medically-attended influenza A and B virus infections enrolled in
two international cohort studies over a six-year period: 2009-2015. In Open Forum Infectious
Diseases.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
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Griffiths, M.R. and Lucas, J.R., 2016. Relating Economic Value to Executive Compensation.
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Lukas, E. and Welling, A., 2014. Timing and eco (nomic) efficiency of climate-friendly
investments in supply chains. European Journal of Operational Research, 233(2), pp.448-457.
Sivalingam, R., 2018. Strategic Management. Industry Analysis, Strategic Drift and Re-
Strategizing.
Tesco.com. (2018). Tesco - Online Groceries, Homeware, Electricals & Clothing. [online]
Available at: https://www.tesco.com/ [Accessed 21 May 2018].
Vu, M., 2016. IS THE BALANCED SCORECARD USEFUL IN A COMPETITIVE
INDUSTRY?: Using Tesco PLC as a case study in the UK grocery retail industry.

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