Strategic Management: Tesco's Competitive Advantage and Industry Scenarios

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Strategic direction that company has followed in the past and the way in which strategic
thinking has developed within the past 5 years...........................................................................3
TASK 2............................................................................................................................................4
Use of appropriate frameworks...................................................................................................4
Critical discussion of the company’s competitive advantage......................................................6
Probable industry scenarios facing the company.........................................................................7
TASK 3............................................................................................................................................7
Mission and vision statements are aligned to the demands of the marketplace..........................7
Company's strategic capabilities..................................................................................................7
TASK 4............................................................................................................................................9
Discuss possible strategies that the company could follow to defend its core business..............9
TASK 5..........................................................................................................................................10
Analyse and evaluate the resource implications of your recommendations that the company
has to address.............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management refers to the development of suitable objectives determination of
competitive environment and analyse the internal characteristics of company that helps in
developing Strategies and making sure that management implement these strategies across the
company regarding the growth and development. Strategic management is the management that
helps in achieving suitable goals and objectives of an organisation. Strategic management
include the formulation and execution of major objectives and initiatives that are taken by the top
managers of company and it is based on the consideration of probable resources including the
internal and external environment in which company operate (Ansoff and et. al., 2018). It is
useful in offering suitable direction to the company and also includes specifying the probable
purpose of the company and also helps in developing prominent norms and plans to achieve
those objectives.
In order to carry forward this report Tesco is considered that is the British multinational
grocery store and the third largest retailer in the world measured by its gross revenues. Tesco
deals in groceries and general merchandise and headquarter in Hertfordshire England. The
support covers the probable strategic direction of company which they follow in past 5 years and
the detailed analysis of industry. Moreover it also analyse the Vision and Mission statement of
the company that is aligned with the demand of market and also analyse the strategic capabilities.
TASK 1
Strategic direction that company has followed in the past and the way in which strategic thinking
has developed within the past 5 years
The strategic directions of an organisation are helpful in achieving suitable goals and
objectives which helps in gaining competitive advantage and sustainability with the dynamic
business environment for the longer period of time. In terms of this the respective company
Tesco need to bring suitable transformation and its business strategies regarding the smoothening
and operations of an organisation and some of the probable strategies are discussed below:
Human capital strategy: It describe the HR policies of the company which is useful in
retaining existing employees and motivating them to perform more efficiently that helps in
achieving the desired goals and objectives. In terms of this the profitability of Tesco scold
around 20% in the last year and also take the record of 2 billion in order to set the new milestone