Strategic Management: TESCO Case Study

This presentation provides an overview of strategic management and its implementation in TESCO. It covers topics such as strategic planning process, mission and objectives, situation analysis, SWOT and PEST analysis, strategy formulation, implementation, and evaluation. The case study focuses on TESCO's strengths, weaknesses, opportunities, and threats, as well as the political, economic, technological, and socio-cultural factors affecting the company. It also discusses the determination of functional objectives and concludes with the importance of strategic management in achieving major objectives and initiatives.

Strategic management

INTRODUCTION
• Strategic management refers to the creation and
execution of major objectives and initiatives taken by
the top management of the company on the behalf of
owners.
• By considering resources and external and internal
environment in which the firm competes.

Strategic planning process
• Strategic planning refers to a process that ensures
profitability of an organization.
• It is the basic requirement of every firm and is
implemented by management team.

Mission and objectives
• Mission statement of TESCO defines the vision of the
company which includes purpose.
• Unchanging values and visionary goals that provides
directions to pursuit future opportunities. It conveys a
purpose to projects and employees of a firm.

Situation analysis
• Once a company has defined its objectives, it initiates with its
current position to formulate a strategic plan to attain these.
• Any change in external surroundings often exist new
opportunities and ways to achieve the objectives.

SWOT Analysis of TESCO
Strengths • Innovative organisational structure and culture
• Its major strength is its highly skilled manpower
• Strong return on earning
Weaknesses • Discrepancies in finance
• Cut price competition
• Reliance upon UK market
Opportunities • Strategic alliance with admired companies and other
brands
• Joint venture
• Grow online business
Threats • Pressure by stakeholders
• Economic recession

PEST Analysis of TESCO
Political factors For starting operations, political environment should be
analysed thoroughly.
Economic factors: In TESCO, business operations are influenced by
economic factors. Due to recession, increase in
unemployment rate is uncontrolled by the firm.
Therefore, it could be anticipated that expansion will
assist to reduce unemployment level in UK.
Technological factors The firm pays high attention to constant technological
changes as it impacts growth and expansion of TESCO.
Socio cultural factors : This factor impact shopping behaviour of customers of
TESCO so the firm expanded its non food item stock.

Strategy Formulation
• After conducting SWOT analysis, TESCO has clear picture
about internal and external environment which includes
strengths, weaknesses, opportunities and threats. It assists in
developing strategic alternatives.

Strategy implementation
• Selected strategy is executed by means of procedures, budget
and programs.
• It includes organising resources of firm and staff motivation in
order to achieve predetermined objectives of the business.

Evaluation and control
• Once the strategy is implemented, results need to be monitored
& evaluated and changes should be made as required.
• Control system must be developed and executed in order to
facilitate monitoring.

Determination of functional objectives
• Functional objectives are defined as those that relate
to particular function of business such as marketing,
human resource management, operations and finance.

CONCLUSION
• As per the above mentioned report, it has been concluded that
strategic management is a process of formulating and
executing major objectives and initiatives of the firm.

REFRENCES
• Ackermann, F. and Eden, C., 2011. Strategic management of
stakeholders: Theory and practice. Long range planning,
44(3). pp.179-196.
• Boyd, B.K., Takacs Haynes, K., Hitt, M.A., Bergh, D.D. and
Ketchen Jr, D.J., 2012. Contingency hypotheses in strategic
management research: Use, disuse, or misuse?. Journal of
Management. 38(1). pp.278-313.