Strategic Management : Tesco

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Strategic analysis of Tesco.....................................................................................................1
Internal analysis of Tesco.......................................................................................................2
SWOT Analysis............................................................................................................2
McKinsey 7S strategy analysis.....................................................................................3
External Analysis of Tesco.....................................................................................................6
PESTLE model.............................................................................................................6
Competitive analysis..............................................................................................................9
Porter Five Force Model...............................................................................................9
Strategic Marketing Analysis...............................................................................................10
BCG Growth Share Matrix.........................................................................................10
Bowman Strategic Clock............................................................................................12
SUMMARISING FINDINGS.......................................................................................................13
RECOMMENDATION.................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
APPENDIX 1.................................................................................................................................18

INTRODUCTION
Strategies refers to the plan of action which are designed to accomplish a long term and
overall aim. In order to sustain in the competitive environment, it is essential and important for
the management of business organisations to devise specific and precise strategies that assists in
enhancing performance and growth of the company (Úbeda, Alsua and Carrasco, 2015). In this
context, the following report will helps in providing detail understanding of strategic decision
making and development of business principles that reflects on strategic management of Tesco.
It is one of the leading supermarket and retail organisation incorporating in United Kingdom.
The report will demonstrate and evaluate the strategy and process undertaken to implement,
manage and understand its impact on the organisation. In this report, with the help of precise
strategic models and applications, the internal, external and competitive position of Tesco will be
described. In this way, the review of emerging markets and influence of market development,
marketing and relative dominance on the performance of organisation will be assessed.
MAIN BODY
Strategic analysis of Tesco
To gain the internal, external and competitive position of the organisation, strategic
managers conducts strategic analysis of the organisation frequently. This helps them to ascertain
about the aggregate position of the organisation which helps them in sustaining in the
competitive environment (Leung and et.al., 2018). To attain desirable organisational goals and
objectives, it is essential for the strategic managers and decision makers to devise specific
strategic plans so that organisation can gain competitive advantages. In order to establish
strategic plans, managers first need to conduct strategic analysis of the organisation. For this
numerous strategic tools and applications have been developed by researchers and strategic
experts which could help the management of business company to formulate precise and robust
strategic plan. In United Kingdom, there is stiff competition in retail sector. With large
supermarket companies like Aldi, Asda, Morrisons, etc. management of Tesco required to update
their strategic plans so that their dominance in the market remain stable (Goetsch and Davis,
2014). In this context, the strategic analysis of the Tesco is described below:
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Internal analysis of Tesco
SWOT Analysis
It is one of the most essential part to identify strength and weakness to improve internal working
environment. Tesco also render the installation of online marketplace. They are publicity their
business concern with the assistance of television and other wholesale based education centre.
With the help of Swot analyse to be find out the internal capability of organisation and increase
overall market share. Swot analyse are as follows :
Strength : Tesco is an almighty retail brand worldwide, in the top 100 of the planetary
most quantitative brands, slightly at a lower place Ikea and well above eBay (Hill, 2014). It is
best-known as a establishment that offers value for medium of exchange, comfort, a wide scope
of merchandise, and local area administration (Barney, 2017). Global, Tesco has 8,785 retail
store, an indefinite quantity of 600 stores since 2017, despite the disposal of their US venture,
Fresh & Easy. Tesco has utilized forward-looking business know-how in its rise, exclude the
creative activity of shop like Tesco Metro and Tesco Explicit, which are little mercantile
establishment in local locality to make buying more handy for the custom-made. On the other
hand, online shopping is one of the most important part and help to increase the customer
strength or weakness. There are some changes is made for long time period as well as future
development. This license the establishment to lower monetary value to support cost attractive
and be competitor with UK wholesale such as Asda or Sainsbury's. In addition, by creating
trueness packages such as the Club-card, they hold bespoke, creating long-term human
relationship.
Weakness : In this context, to be focus on financial sector of internal department. In
addition, credit facility is provided for customer is give negative impact of organisation (Ginter,
2018). This worthy has its weaknesses. Tesco net income has been wedged by bad indebtedness
from credit card game and high levels of family insurance claims Some other issue is Tesco lack
of education in some marketplace that it be given to enter, such as its aim brand smartphones and
pad In conclusion, Tesco necessarily to invest a lot of payment in new web profession and IT, as
well as store renovation, amusing Cash from price reducing plan of action.
Opportunity ; In this context, to be focus on some opportunities for increase markets
share in different market. There are some changes is made form long employment work or
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increase current market share (Wheelen, 2017). The resoluteness by Tesco to contribution own-
brand pad and smartphones can athletics with this investment funds, peculiarly in oversea
activity such as Malaysia, South Korea, Thailand, and China Online buying can message greater
inflexibility to custom-made who are prime occupied house lives or have prime issues; Tesco is
difficult to proper the inevitably of the custom-made by spread out transaction in this two-
dimensional figure. The ongoing effects of the financial condition, where household and
idiosyncratic may be struggling commercial enterprise, or too reserved impermanent to cook.
Threats : The organisation is improved many threats in market and threats give negative
impact on customer (Slack, 2015). One danger that Tesco continues to defy is the putsch of
Asda by Wal-Mart. Branding of mercantile establishment as Asda Wal-Mart has been
accelerative in the UK, show a weakening in the user scorn for Wal-Mart. The ninth most-valued
trade name in the planetary, Wal-Mart is Tesco the largest planetary challenger and hence has the
essential skills, informant, happening and pecuniary resource to cause Tesco difficulty.
McKinsey 7S strategy analysis
The model was developed in 1980 by McKinsey consultants Tom Peters , Robert
Waterman and Julien Philips with assistance provided by Richard Pascale and Anthony G.
Athos. It is considered as one of the most effective and efficient tool which helps in analysing
firms' internal design by looking at 7 key elements which are strategy, structure, systems, shared
values, styles, staff and skills (Volk and et.al., 2017). This is done in order to determine the
alignment of these elements. If the 7 internal elements of the organisation are aligned effectively,
then organisation have robust internal structure and vice versa. In this context, the 7S strategy
analysis of Tesco is described below:
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Hard Ss' Strategy: Strategy refers to the plans which are formulated by the managers and
management of Tesco which helps them in providing competitive advantages. A sound
strategy must be formulated accordingly which aligned with all other elements and is
reinforced by robust vision, mission and values (Cameron and Green, 2015). After
analysing the strategies devised by Tesco, it was identified that management implement
strategies which are appropriately aligned with other internal elements. Thus, it helps in
providing them competitive advantages. Structure: It depicts the flow of information within business departments, units and
business divisions of the organisation. In order to have strong internal design,
management must have organised and efficient organisational structure. In other words,
organisational structures is the chart of the firm which describe the responsibility and
accountability of officials of the organisation (Kurucz and et.al., 2017). From the analysis
of organisational structure of Tesco, it was identified that the departments are segregated
on the basis of specific tasks and work. The information flows in organised and in formal
manner which helps in eliminating confusions and misrepresentations issues.
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Illustration 1: McKinsey 7s Model
(Source: Jurevicius, 2013)

 Systems: These are considered as the procedures and processes of the organisation which
reveals daily business operations and the ways in which decisions are formulated.
Systems are those areas of firms which determines the way of doing business and the
main focus of managers while initiating change within organisation. The process and
procedure of conducting business operations in Tesco are organised and systematically
done (Handfield, 2015). The top management have formulated precise policies and
segregated departments accordingly which helps in enhancing the productivity and
profitability of the organisation.
Soft Ss' Skills: Skills are the abilities that employees' of organisation possess. In order to enhance
the productivity and profitability of the organisation, it is essential and important for the
management to recruit those personnel who have adequate skills and competencies for
desired position (McIver, Lengnick-Hall and Lengnick-Hall, 2018). It is further crucial
for management to provide training periodically to employees to raise their level of skills,
knowledge and competencies. From the analysis of employees' skills of Tesco, it was
identified that management have enormous and diversified workforce (327601) who
possess efficient skills and capabilities to manage with changes and work ceaselessly in
attaining desired aim and objectives of the organisation. Staff: Staff element is concerned with the type and number of employees required in
organisation and the way they''ll gonna be recruited by the management. It is essential
element which is to be aligned appropriately with all other elements. From the analysis of
staffing strategy of Tesco, it was identified that management have their own in-house
human resource department which have responsibility to design strategies and plans in
order to hire, recruit and select precise and skilled candidates for described position
(Collie and et.al., 2016). Furthermore, management provides ample of opportunities to
previous employees in their referral policies where they can recommend their friend and
family members for vacant position. Style: It is the management style of company’s leaders. In order to attain the desirable
goals and objectives of the organisation it is essential and crucial for the management to
follow and inculcate appropriate leadership style. Leadership style refers to the style
which are followed by leaders of organisation which are suitable within organisational
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framework (Hazır, 2015). There is a mixture of autocratic, democratic and laissez faire
leadership style followed at Tesco. The management in drafting policies which are
mandatory follows autocratic leadership style. If they need that employee's involvement
is necessary, then they follow democratic style and if employees know the best way to do
things than they follow laissez faire leadership style.
 Shared Values: Shared values are at the core of McKinsey model. These are the
standards that guide behaviour of employees and actions of company and thus are the
foundation of every organisation (Certo and et.al., 2016). All the elements of the strategic
model must be aligned with shared values of the organisation in order to obtain higher
profits and revenue. From the analysis of the strategic analysis of the Tesco, it was
identified that all the seven elements of within the organisation are aligned with shared
values thus helps in generating positive organisational environment.
External Analysis of Tesco
PESTLE model
External environment of the organisation greatly influence organisational growth and
development. External environment involves governmental policies, legislations, company laws,
changes in taste and preferences of society, technological enhancement and environmental
challenges (Martínez-Costa, Mas-Machuca and Corominas, 2014). In order to assess the external
environment of the Tesco, PESTLE model can be used. The model is specifically designed to
analyse the external environment of the organisation. In this context, the external analysis of the
Tesco is described below:
Political Factors
Political factors includes government policies, laws and regulations. The policies and
norms of government are dynamic in nature and changes according to situations. In United
Kingdom the political conditions become unstable especially after Brexit referendum. Present
government have changes majority of its policies and provisions affecting majority of business
sectors in United Kingdom (Lessing, 2015). The decision of leaving European Union impact on
business environment of UK. Tesco has been greatly affected by this decision and in order to
mitigate it, management formed new reforms and provisions. Furthermore, due to terrorists
attacks in London, government have tighter the security of country by restricting inbound and
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outbound trade activities from different countries. This affects the supply chain management of
Tesco drastically.
Economic Factors
Economic factors involves the factors the governs the economy of the country. These
factors includes various micro and macro economy rates such as inflation rate, customer
purchasing power index, unemployment rates, exchange rates, interest rates, etc. Economic
conditions of United Kingdom was destabilise after the global financial crises in 2007-2008
through which the country is still not able to recover completely (Jarzabkowski and Kaplan,
2015). Furthermore, the inflation rate of country is currently 3 per cent which is not much high
and not much low. This signifies that country's economic conditions are normal which are
suitable for doing business operations. Tesco's have devised strategies and plans which helps the
organisation to sustain in competitive environment. As one of the leading supermarket company
in United Kingdom, Tesco contributes enormously to the national economy of country.
Social Factors
Social Factors includes societal taste and preferences of society which changes time to
time. In today's globalised era organisations are emerging rapidly and gaining market share by
providing unique and innovative products to the customers. The natives of United Kingdom have
transformed their perception with the evolution of online shopping and e-commerce market
activities (Frølich, Christensen and Stensaker, 2018). Majority of consumers prefer to buy
products online which influences management of Tesco to go online by developing their online
website. In order to sustain in competitive environment it is essential and crucial for business
organisation and management to fulfil the needs and expectations of consumers so that growth
and development of organisation can be made.
Technological Factors
In present digital era, technological advancement is rapidly increasing. With the
evolution of digital technologies and internet accessibility business organisations have started
implementing these technologies in their daily business operations in order to enhance the
quality and effectiveness in the production process (Hainmueller, Mummolo and Xu, 2018). Not
only operation management of the organisation have been benefited by these technologies,
nearly all the departments and business division have been benefited by technological
advancement. In the last 15 years, Tesco has digitally transformed their customer experience,
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business model and operating model through investments in a state-of-the-art website with click-
and-collect functionality, a digitalized in-store experience and a data-driven customer loyalty
platform. Tesco has continually been investing in technology to develop an omni-channel
customer experience and to maintain a competitive edge in an increasingly digitized UK grocery
landscape.
Legal Factors
Legal factors involves the rules and legislation formulated by the government of country.
These legislations are mandatory to be followed by the business organisation if they want to
sustain in the market economy. For organisations established in United Kingdom needs to follow
provisions stated in The Companies Act 2006, National minimum wages law, employment rights
act, consumer health and safety etc. Tesco have been complied to the laws and become the
leading supermarket organisation in United Kingdom (Dou, Zhu and Sarkis, 2015). Furthermore,
the management follows certain laws such Environmental Protection Act 1990 in order to
maintain and preserve the environment of United Kingdom. The management of Tesco utilise
recyclable materials in their packaging department to ensure environmental protection.
Management also infuse health and safety legislation in their organisational framework.
Environmental Factors
In present era, due to rapid increase in business activities and operations, the pollution
level in environment is increasing at rapid pace. Global warming, climate change, melting of
glaciers, depleting coral reefs and other natural calamities have been increased significantly
affecting all the living being that survive on biosphere. Sustainability development is the latest
trend which has been followed by many organisations including Tesco in their daily business
activities. In order to enhance the protection of environment, the company comply with
Environmental Protection Act 1990 (Fooladvand, Yarmohammadian and Shahtalebi, 2015).
Moreover, the management have made tremendous efforts in reducing the emission of carbon
dioxide and other harmful greenhouse gases. The company in their CSR policy explicitly create a
provision that mandates them to contribute towards environment for sustainable development.
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Competitive analysis
Porter Five Force Model
It is one of the most essential part for each and every organisation. This is assistance at the time
of increase market share. On the other hand, more and more marketing activity is used such kind
of models for improve market conditions. It is of measure to least organize providing a useful
protrusive point for strategical investigation (Rothaermel, 2015). Porter proposes that 'it is the
knowledge characteristics of a manufacture the five forces that find out the relative happening or
failure of steadfast. The five forces model is decomposable in that antithetic commercial
enterprise could be emerging, mellow or diminution and Porter is able to recognize that his
challenger plan of activeness. Threats of new entry : The important marks that have not yet captured the food securities
industry retail are Tesco, Asda, Sainsbury's and Morrison and that there represents 90 %
of all the buys in the United Kingdom (Bettis, 2015). Hence, the new function have to
food something at an exceeding low price and high choice to set up his numerical
quantity of marketplace. Competitive rivalry : The strength of the competitors' rivalry in the commercial enterprise
of food and grocery store merchandising is very advanced (Bettis, 2016). Tesco human
face the intense business relation of his direct challenger, including Asda, Sainsbury's,
Waitrose and Morrison, who contend betwixt yes on the cost, commodity and packaging
of sporadic form. Bargaining power of buyer ;- In this context, power of the buyer is quite high. In this
way, product is to be differentiates is give more importance in market place. This is to be
give direct impact on overall development in market condition. The price is to be set as
per the demand of the merchandise in market place, so client is indefinite quantity and
better marketplace share of organisation (Lasserre, 2017). It has been planned that the
customer feel pull towards the low monetary value, and with the handiness of buys
merchandising in line, the cost of the trade good are easy to comparability and to quality
this manner.
 Bargaining power of supplier : There are some change is made in market place for future
improvement of organisation (Ethiraj 2016). The powerlessness of dialogue of the
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supply is quite low. Fits to point out that the supply incline towards the most essential
and wholesale food of food and the fear of livelihood his commercialised piece of land
with the big grocery store. Hence, the place of the wholesale as Tesco, Asda and
Sainsbury's becomes stronger furthermore and negotiate are affirmative in order to get
the terms as low as accomplished of the economic process.
Strategic Marketing Analysis
BCG Growth Share Matrix
The Boston Consulting Group growth share matrix is a planning tool that uses graphical
representations of a company’s products and services in an effort to help the company decide
what it should keep, sell or invest more in. Tesco is a large scale retailer that is working in
numerous countries such as India, Hungary, China, USA, etc. with over 6600 operating stores
(Pang, Mörtberg and Brown, 2014). The larger segment of sale has been observed from its store
operating in United Kingdom. The BCG Growth matrix can be applied to Tesco in order to
ascertain its profitability and future prospects of the different businesses being managed under
the label of Tesco. The BCG Matrix for Tesco is described below:
Cash Cows
Due to high market share in the market economy, there are some business division of
Tesco that assist in retaining higher amount of profits with minimum cash consumption. The
huge income creates them a cash cow for Tesco and despite of their maturity stage the products
are able to gain enormous attraction of customers. For Tesco, the fresh meat section is
considered to be cash cow (Colliard, 2018). The product is always in demand and customers
tends to purchase it from the organisation due to its quality and quantity. There has been an
incident which has damaged the brand image of Tesco in the domain of the meat supplied by the
retail giant, however, the management has taken necessary steps to rectify the situation.
Stars
Other than cash cows , there are different products and business division that establishes
growth opportunities for the organisation. In this case, the market is determined by growth
opportunities which establish supportive environment for organisational unit for further
development. The products fall under star category needs more investment as compared to cash
cows for capturing market. Tesco has some goods which can be identified as Star for the
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organisation. These products are generating sufficient amount of income for the management but
requires more investment simultaneously (Lee, Fang and Handy, 2017). Tesco Bank is business
division of Tesco which falls under star category. The banking industry is currently thriving in
United Kingdom and as a new entrant Tesco Bank has enormous opportunities to expand its
market share in UK.
Question Mark
Not all business units or products able to generate expected amount of revenue and
profits. The future of these products is uncertain as the market conditions hint a possibility of
attaining future growth. Therefore, the developing market environment can become a positive
source of stability of these products (Úbeda, Alsua and Carrasco, 2015). On the other hand, the
market development may not have the desirable impact on the income generated by these
products or their market share. Tesco has some products which are not operating to their full
potential. The sales of Tesco lard have been unsatisfactory over the years creating pressure on
the management to analyse whether it is feasible to continue with the production of the product
or discontinue it.
Dogs
This the last category in BCG growth matrix. Dog represents all those products and
services produced by the organisation which shows significantly low performance in the market
environment. They have low return on investment and incurred huge cash of the organisation.
These units or products needs to be retrench in order to maximise the profitability of the
company (Leung and et.al., 2018). Tesco's mobile business can be considered as Dog category
unit for the organisation. With stiff competition with business giants like O2, Vodafone, Giff
Gaff, etc. Tesco mobile was unable to sustain in competitive environment. The management
needs to devise specific strategies and plans in order to enhance its development or retrench it in
order to save cash of the company.
Bowman Strategic Clock
Bowman strategic clock was developed for the purpose of establishing strategic options
which could become a pathway through which organisation can enhance its strategic direction
and positioning (Volk and et.al., 2017). Bowman Strategic clock helps in analysing and
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determining the best strategic option suitable for the growth and development of the
organisation. In this context, the bowman strategic clock for Tesco is described below:
Position 1 (Low price and added value)
In this strategy, firms gains competitive advantages by providing products and services at
low price plus added values to the customers (Goetsch and Davis, 2014). This strategy is very
useful for the firms who newly enter into the market and desire to capture market share in low
time. For Tesco, this strategy is not considered to be optimum as offering lower price product to
customers will eventually degrades its level of profits.
Position 2 (Low Price)
In this strategy, firm offers products at low price without offering any added values to the
customers. This is considered as optimum strategy that allows firms to gain competitive
advantages. This strategy can be implemented by Tesco in grocery section of its department
stores. By offering low price product to customers helps the organisation to retain customers and
enhance customer base.
Position 3 (Hybrid)
This is considered to be one of the most optimum strategy. In this strategy, the
management provide differentiated products to customer at reasonable price so that the company
will be able to gain competitive advantages and sustain in competitive environment (Cameron
and Green, 2015). Tesco can implement this strategy in order to enhance their business
operations, productivity and profitability.
Position 4 (Differentiation)
Product differentiation strategy refers to the strategy where firm offers differentiated
products and services to the target customers in order to gain competitive advantages. The
products are of premium price and offered to only certain customers who are willing to pay the
price (Kurucz and et.al., 2017). Tesco can implement this strategy in some its business units and
products segments in order to gain competitive advantages.
Position 5 (Focused Differentiation)
This strategy aims to position a product at the highest price levels, where customers buy
the product because of the high perceived value. For obtaining short term profits and gains, this
strategy is considered to be very successful. Due to its nature, the strategy cannot be
12

implemented for longer run. Tesco, can implement this strategy in order to enhance market share
for new product launched by the management.
Position 6 (Risky High Margin)
This strategy is not considered to be optimum as according to this strategy, the
management offer premium product at very high price without providing any additional value or
benefits (Handfield, 2015). As Tesco has immense brand value, this strategy can be implemented
for shorter period but not useful for long run.
Position 7 (Monopoly Pricing)
Pricing monopoly strategy does not concern about how customers sees the product. No
matter whatsoever price company set, customers have to purchase those product because of
necessity (McIver, Lengnick-Hall and Lengnick-Hall, 2018). In order to implement this strategy,
management of Tesco needs to innovate and throw a new product in the market which is very
difficult to imitate. Thus, through this the management can able to higher profits and expand its
market share.
Position 8 (Loss of Market Share)
This is the last strategic position as per Bowman Strategic clock. Here, management can
set middle range prices of products with lower perceived value to win over consumers. The
management of Tesco needs to consider the overall strategic position of the organisation before
implementing the strategy into action.
SUMMARISING FINDINGS
From the above strategic analysis, it can be considered that in order to sustain in the
competitive environment, the management of business organisations needs to formulate and
implement precise and effective strategies so that the growth and development of the company
can be made (Collie and et.al., 2016). The current market economy of United Kingdom got
destabilise due to Brexit referendum and management of Tesco needs to consider its internal and
external environment before devising any strategies and plans into actions. From the internal
analysis it was identified that Tesco has enormous strengths and opportunities to dominate the
retail sector of United Kingdom. Though it possesses certain weaknesses which can hinder its
overall productivity and profitability. In order to overcome these weaknesses and threats, the
management can implement precise strategies and plans which helps them in surpassing the
weaknesses identified. The external environmental analysis have been made in the study which
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provide explicit understanding of the macro economic factors that affects the business strategies
of Tesco. Management of Tesco needs to consider those factors and propose mitigation plans so
that organisational profitability keep on increasing. The competitive analysis has been made in
the study in order to analyse the competitive position. It was identified that management has high
threat of consumer and industrial rivalry. In order to sustain in competitive environment it is
essential for the management of Tesco to inculcate strategies and plans within their
organisational framework so that growth and development can be made. Eventually with the help
of BCG growth matrix and Bowman Strategic clock model, the strategic direction of the
organisation has been assessed.
RECOMMENDATION
In this section, recommendations will be provided to the management of Tesco so that the
management can improve its existing business strategies. In this context, the recommendation to
the management of Tesco is described below:
 More extensive research: In order to formulate strategies, the management of Tesco
needs to conduct more extensive and deep market research which helps them in obtaining
precise data and information (Hazır, 2015). Through extensive research, the management
of Tesco will be able to gain adequate knowledge about current trends in market. Thus,
through this they will be able to devise strategies and plans which helps them in gaining
competitive advantages. Analysing both internal and external environment: As internal and external
environment surrounding organisation greatly affects the daily business operations, it is
necessary for the management of Tesco to analyse both the internal and external
environment surrounding the organisation (Certo and et.al., 2016). To gain the internal,
external and competitive position of the organisation, strategic managers conducts
strategic analysis of the organisation frequently. This helps them to ascertain about the
aggregate position of the organisation which helps them in sustaining in the competitive
environment.
 Providing diversified products and reasonable price: This is considered to be one of the
most optimum strategy. In this strategy, the management provide differentiated products
to customer at reasonable price so that the company will be able to gain competitive
advantages and sustain in competitive environment (Martínez-Costa, Mas-Machuca and
14

Corominas, 2014). Tesco can implement this strategy in order to enhance their business
operations, productivity and profitability. Thus, it is recommended to the management to
implant this strategy in their daily business operations.
CONCLUSION
From the above report it can be understood that devising precise strategies and plans are
complex and challenging task. With this respect, the report aid in understanding different
strategic models with reference of Tesco which is one of the leading supermarket company in
United Kingdom. To gain the internal, external and competitive position of the organisation,
strategic managers conducts strategic analysis of the organisation frequently. This helps them to
ascertain about the aggregate position of the organisation which helps them in sustaining in the
competitive environment. In this context, the internal strategic position of Tesco has been
ascertained in this report by using SWOT and McKinsey 7S model. By using PESTLE model,
the external factors that could affects the productivity and profitability of the organisation has
been assessed in this assignment. By using Porter Five force model, the competitive analysis of
Tesco has been made. The strategic direction of Tesco has been provided by using BCG Growth
share matrix and Bowman Strategic Clock. In order to sustain in competitive environment it is
essential for the management of Tesco to inculcate strategies and plans within their
organisational framework so that growth and development can be made.
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APPENDIX 1
Strategic models
McKinsey 7 S model
The model was developed in 1980 by McKinsey consultants Tom Peters , Robert Waterman and
Julien Philips with assistance provided by Richard Pascale and Anthony G. Athos. It is
considered as one of the most effective and efficient tool which helps in analysing firms' internal
design by looking at 7 key elements.
BCG Growth Share Matrix
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The Boston Consulting Group growth share matrix is a planning tool that uses graphical
representations of a company’s products and services in an effort to help the company decide
what it should keep, sell or invest more in.
Porter Five Force Model
Porter Five Force Model is used for determining the competitive position of the
organisation. It is popular strategic model used by management in order to ascertain what is the
major and minor threat that affects organisation in competitive environment.
Bowman Strategic Clock Model
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Bowman strategic clock was developed for the purpose of establishing strategic options
which could become a pathway through which organisation can enhance its strategic direction
and positioning.
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