Strategic Problems & Opportunities Faced by TESCO in Malaysia

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
1. Explain current strategic problems & opportunities faced by TESCO in Malaysia....................3
2. Analyse Tesco marketing & innovation strategy transformation designed to position the
company on cutting edge of consumer trends.................................................................................4
3. Examine TESCO’s strategy of developing healthy lifestyle or go green concept in Malaysia...5
4. Contrast performance of TESCO with nearest competitor in Malaysia......................................6
5. Provide recommendations to management of TESCO on ways to improve strategically in
Malaysia...........................................................................................................................................6
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9
Books & Journal:.............................................................................................................................9

INTRODUCTION
Strategic management is the concept of making decision making in organisation which
leads to growth as well as development of position of firm. Each and every firm uses strategy in
market to deal with competitors as well as rivals. TESCO, a multinational corporation
headquartered in UK. It is a diversified company which deal with variety of products and services.
This report includes strategic problems & opportunities, TESCO marketing and innovation strategy,
firm strategy for developing healthy lifestyle & comparison of TESCO with competitor in Malaysia.
1. Explain current strategic problems & opportunities faced by TESCO in Malaysia
TESCO has expanded its business at wider level and in Malaysia with strategic alliance
between TESCO PLC UK & local conglomerate. The first store of corporation was established in
2002 February, opening its first hypermarket in Puchong, Selangor. In 2004, enterprise acquire
Makro Cash and Carry in Malaysia which was local merchandiser and brand was renamed to Tesco
Extra. Current strategic problem faced by Tesco is mentioned below-
Employee high turnover rate (Retention Strategy) - Main issue faced by TESCO in
Malaysia is that turnover rate of employee is high in firm and it is becoming difficult for entity to
prepare proper retention strategies for employees. This has leads to low profit and higher expense of
business. It is seen that mostly front departments (cashiers) are leaving the job which contributes
firm around 80% of the profit. Thus, HR manager of enterprise is not able to the deal with situation
in proper manner. In Malaysia, retail industry provides highest percentage to their economy GDP.
Thus, they need to develop effective retention strategy so that turnover rate reduces (Wood, 2016).
Brand positioning- Another issue faced by enterprise is creating brand positioning in
Malaysia is difficult task. This is because most of products and their advertising is prohibited in
Malaysia and makes it challenging for business to market their business in appropriate manner.
Brand positioning is vital for business because it creates image in the eye of customers. In relation
with chosen firm, due to well brand positioning of brand across the globe they have been able to
survive in market but not for linger period of time (Teh, 2016).
Strategy opportunity-
Diversification- Main opportunity for TESCO is to be that they have opportunity to adopt
the diversification strategy because of profit earned by firm in Asian countries 6% larger than the
UK d which is 3%. Thus, enterprise is now opening around 760 more new stores in Thailand
combining Malaysia. So, company has chance to do the business and introduce more new product
in market.
After a brief analysis of above matter it is stated that strategy is important for every firm to