Strategic Management (Distinction Criteria)

This report discusses the importance of strategic management, the process of determining strategies, evaluating internal and external environment, and developing action plans for change. It includes a SWOT and PESTLE analysis of TESCO and strategies for achieving zero carbon business.

MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1- Strategic Management Introduction........................................................................................3
2- Process determination by the organization..............................................................................4
3. Evaluating the internal environment which has impacted TESCO.........................................5
4 Developing action plans on the basis of change.......................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2

INTRODUCTION
Management is described as the art of managing, handling and utilising the financial and
human resources which results in maximum output with minimum efforts to reach the goal of an
organisation. Management is important because it helps in shaping the culture, performance, and
majorly survival of an organisation depends on management. TESCO is the British
multinational, retail public limited company, which mainly comprises of global groceries largest
merchandise retailer in the world, headquartered in England, UK. TESCO has always been
committed in providing the best service, quality, and value to its customers, and communities.
This report will depict about explaining the strategic management, the various process being
used by TESCO for determining the strategy, furthermore, critical evaluation of external and
internal environment and lastly, reviewing strategic plan of an organisation considering internal
and external environment.
MAIN BODY
1- Strategic Management Introduction
The strategic management is the main process of identification and arrangement of
organizational goals, procedures and the major objectives in order to build company more market
competitive. Under this the company determine the planning, monitoring, analyzing and working
about the assessment of the given necessities within the organization (Berisha Qehaja, Kutllovci
and Shiroka Pula, 2017). The strategic management provides the benefits by providing the
company, proper framework required for the decision-making helps in understanding the
organizational perspective for understanding about the firm’s financial and non-financial
benefits.
Importance of strategic management consists of:
Planning: An essential tool provided by the strategic management to allocate and
planning about the organizational goal about predicting the future trends and requirements.
Opportunities identification: The usage of strategic management also aids the firm in
knowing and grabbing the necessary opportunities available (Pröllochs, and Feuerriegel, 2020).
As to identification of the firm's internal workings structure and to convert the weakness into the
competitive opportunities.

Prepared for future market: Another importance that it provides the firm with
predicting about the new variables and trends and take actions according to the needs and
demands with the proper goal of profit maximization.
In approaches to strategic management, the Industrial approach deals with the external
sources resource allocation, economies of scale and competitive rivalry while the Sociological
approach deals in the internal work of human interactions and behavior management (Meyer,
Neck, and Meeks, 2017).
2- Process determination by the organization
The internal process management may take different actions to specify the major vision
of objective. It is one of the best and used process that enables the firm to determine the
strategies and effectiveness relate to that. As under this working the firm handles its main target
of the strategic position by prioritizing the objectives.
Competitive analysis in the strategic management and in marketing is the assessment
and identification of weakness and strengths of the current and potential competitors. As the
analysis provides with the organization with an offensive and defensive strategies to determine
the threats and opportunities of company's competitors. As under the competitive analysis the
company get to identify about the major market knowledge, predicting about the competitor’s
market demand and supply. Also after knowing about competitors, company may formulate
different strategies to increase their market share and market worth, also developing new
strategies for firm's growth. Having the insight into the prediction of future market trends and
strategies that can be considered for the organizational profit maximization.
Using the internal and external analysis for process determination under the internal
analysis, the firm examines internal interactions with the working environment to assess about
the management and working personals to identify the knowledge about where the firm is
lacking or occurring some internal issues, so that the firm may formulate some effective strategic
plans to take some measurable actions in regarding resolve the issues. Also, helps in the GAP
analysis through which the company is able to compare its current and desired state, while in the
external analysis the company take some measurable actions regarding its external working
environment, knowing about our customer’s major requirements and the driving forces behind
the sales trends also about the potential important markets, and what policies are in consideration
that might affecting the company.

Apart from the given terms strategic management also aids in the determination or setting
of the organization objectives as it gives clarity about the employee’s expectations about the
work or strategies and what are some major changes that can be required about the new plans
how it its being implemented, what are the possible outcomes for that and the working personals
are accepting the new ways of working or finding it quite difficult to approach it.
Aligning the individual performances with the organizational requirements as with the
new strategic management the employees working capabilities are really enough for the
organization requirement for the main target achievement. Are the workers meeting the
benchmark or the finished performance is meeting or exceeding the sales goals or customer's
feedback in regarding the new strategic management. Also with the experience that the company
have create successful strategies by comparing with work force old performance with the new
performance achieved.
3. Evaluating the internal environment which has impacted TESCO
SWOT framework mainly helps to identify core strengths, weakness, opportunities and threat
which has direct and indirect impact on TESCO:
Strength- In the light of TESCO strength is the main reason behind the success of TESCO is
DAVE LEWIS who helped this company with his leadership skills to become the successful
winning company. Innovation is the main strength of TESCO with the innovative ideas, and
techniques it helps TESCO in building the innovative and fruitful strategies which builds the
economic growth of the business. Recently, the company was awarded by couch base for their
advanced architecture and the award describes about the efforts being given by TESCO
regarding delivery at the time of pandemic (COVID-19). Strengths of TESCO also includes their
market share which is 26.9 of the grocery market in UK, which is unchallenged, their
adaptability capacity during the pandemic as the in store purchases of TESCO were restricted,
but also they were able to deliver double of their capacity comparatively the previous years
(SWOT analysis of Tesco, 2021). These strengths of TESCO have impacted according with their
organisational strategies. As TESCO has developed their strategies in accordance with the
pandemic situations TESCO is highly successful in the go to market strategies with their
products which results in the certain rise in the growing market share with better performance.
Weaknesses- These are the problems or the difficulties which is holding back TESCO in
their growth and performance. Debt is the biggest weakness of TESCO is increasing of debt as

because of growing network, due to its financial crises they have withdrawn certain products
from the market. This had the major impact on the organisations strategy as because of debt they
had to make major changes in their cost, differentiation and their focus strategy.
Opportunities- These are the advantages which can be taken back to leverage. TESCO has
been partnering up with the other brands to proceed for growth. The main purpose is to come up
with the advanced products and technology. They have also launched its expansion jack store
which is reaching its heights. Further the company should invest more in it to have the potential
growth and compete with the low cost rivals in ALDI. This will further have impact on the
strategies of TESCO as it will be developed according with the opportunities being tracked to
achieve the growth of the organisation.
Threats- these are the external factors creates disadvantages for Tesco, such as Brexit this
will affect 20% of the imported goods which is being sold in the supermarkets. Experiencing
disruptions due to the BREXIT mostly has impacted ready meals and the fresh fruits Restrictions
at the port of entries will negatively affect the good being imported from EU to UK which
further impacted its supply chain (SWOT analysis of Tesco, 2021). Rising unemployment also
affects the economic recession and the purchasing power which impacts its TESCO strategies
and policies, growth and the supplies to the customer.
External environment (PESTLE ANALYSIS)
Political factors- The worldwide TESCO is being greatly influenced by political factors
which includes the taxes, Legislations, security control, etc. the company is also facing financial
crises the government encourages them to create job opportunities for the unemployment which
also includes high paid jobs for high skilled employees and low paid for less qualified. The
government taxes will have the great impact on TESCO which affects the national minimising
wage concept through which strategies making concept of TESCO will be affected.
Economic factors- The various economic factors which affects TESCO negatively because
of the price, profits, competition from rivalries, they are facing low profit margin, Labour cost
also affects TESCO in order to maintain the sound financial position another factor is demand
and supply of products and services, and foreign exchange rates. these all factors affect the
profits and product costs of TESCO. This will indirectly impact the TESCO organisation
strategies as the unintentional market crash will impact the sales strategies in TESCO.

Social factors- Social factors mainly includes education level, lifestyle, religious, beliefs,
health concerns, due to dynamic environment, changes taking place very quickly in the trends,
tastes. The type of the goods demanded by customers, TESCO is influenced by the customer’s
beliefs, and attitudes. Nowadays, due to the increase in bulk shopping by the customers for this
TESCO has also increased the non-food items being offered for sale. And also for the customers
with more health concerns and changing taste and preferences approaching towards the healthier
products for this concern TESCO has started producing more and more organic based products.
This will majorly impact the strategies and making procedures of the products of the TESCO.
Technological factors: The technological changes, up gradations and advancements have
brought various opportunities for TESCO such as the self-service checkout has provided
convenience to customers through which the labour cost is being reduced. Also the online
shopping facilities for shopping and home delivery options through various applications. Have
provided various benefits to Tesco. The company has also invested the portion of money in the
energy plants for the long term perspective for reducing the carbon footprint (Pestle analysis of
Tesco, 2021). So the technological factors will have indirect impact on TESCO strategies as the
company will be devising the strategies according with the technological up gradation and with
the latest IT procedures. Through which the process becomes easier and faster for the company.
legal factors- These includes the import export law, copyright, fraud law, all the legal
perspective comes under head of legal factors. With regards with Tesco worldwide company,
they cannot pay less to the employees than the limit of wages being set by the government. These
are also related with the law proceedings, federal regulations and many more. These will effect
TESCO business strategies in import and export, marketing strategies of products and
employment strategies as well as the revenue strategies.
Environmental factors- Environmental aspects includes (economic growth, inflation, trading
cycles, weather, pollution). TESCO has sold their own brand items because of these factors
which are climate change, packing waste, deforestation agriculture issues. These factors have
impacted TESCO environmental strategies.
4 Developing action plans on the basis of change
Executive summary

A business plan is a document that provides with the description and overview of the firm’s
future goals and plan (Chopra, 2017). With the help of this business plan the organization has
been achieve its aims and objectives by using renewal resources.
Company Description
By reviewing the organization strategic plan, the management may take actions to develop
their own plan which derive their attention in their internal environment change such as the
achievement of zero carbon business by 2050 (Beck, Rasmussen and Nielsen, 2021).
Aim
The aim of the organization is to achieve zero carbon business with the use of renewal
resource.
Objective
 To overcome the negative impacts of air and land pollution upto 50% within 5 years.
 To conduct and transform organization's practices according to CSR concept up to 100%
within 4 years.
Strategies
The management conduct strategies to work with the vendors who provide company with the
environmental friendly renewal resources. So that the firm is able to achieve the maximum
production with more environment friendly products (Cristancho Triana, and et.al, 2021). Also
with developing a specific team which have task of giving training to the workers of how to
handle the resources and production. The organization implants new machines which uses
environment friendly resources.
Actions
Management may be conducting meeting with their stake holders about how to make more
effective for the environment. Also, firm formulates new ideas and strategies too. The with
proper meeting the management is able to perform brainstorming as new ideas are being
formulated according to the requirements. As the it enables the management to being more
productive with generating some new ideas and improving and selection of better decision-
making as to whether to choose what environment friendly resources from which vendors, what
new techniques the management can adopt for working at full efficient and generating the less
scrap. The technique firm is using is cost effectively or is way costlier than any others.
Monitoring and Controlling

The KPI tools are the different solutions of a business reporting which are used for the
monitoring, tracking and introducing actions from the performance indicators in accordance to
company's objectives.
Client Retention rate (CRR): The CRR is how much of client’s response as acquiring new
customers does helps in improving the firms image and also aids in the producing environment
friendly products. As retaining customers for a longer term indicates the worthiness and trust and
loyalty of organization towards to their customer and environment.
As the maximum of CRR is present shows the greater positive customer service. If the firm is
able to deliver consistency in their products and offering environment benefits, the value of
customers will increase significantly.
Profit Margin: The Profit Margin measures or shows about how the business is generating
the profit each as the financial KPI helps the organization in generating revenue by comparing
the last year’s performance with the current year and determine whether the strategies works for
the organization or not (Fatmawatie, and et.al, 2021). As also able to find the gap between the
quality of products and sales does increased or the firm have to use the old plans and strategies.
For the controlling process the firm made a specific team who have their main task of
providing training top their workers as providing the personals with the proper and specific
knowledge and d3eveloping the key skills required for the firm’s production function. While
delivering the correct information and instructions about how they can improve the quality.
CONCLUSION
From the above report it has been concluded that strategic management is essential for
TESCO as the company’s success and survival depends on the strategic management and for that
it provides the direction to the plans and policies for achieving the objectives and implementing
the plans. After evaluating the internal and external environment (SWOT, and PESTLE) analysis
although these are not under control of the project team of TESCO, these should be monitored
and analysed thoroughly in order to identify the weaknesses, threats risks for ensuring the proper
working of the business organisation.

REFERENCES
Books and journals
Beck, A. M. T., Rasmussen, B. M. and Nielsen, T. K. H., 2021. Action plans as active boundary
objects. Research on Social Work Practice. 31(4). pp.382-389.
Berisha Qehaja, A., Kutllovci, E. and Shiroka Pula, J., 2017. Strategic management tools and
techniques: A comparative analysis of empirical studies. Croatian Economic Survey.
19(1). pp.67-99.
Chopra, K. N., 2017. Modeling and Documentation of Business Plan by Optimization of the
Administration’s Function, Process and Behaviour. Singaporean Journal of BuSineSS
economics and management StudieS. 5. pp.1-7.
Cristancho Triana, G. J. and et.al, 2021. Key aspects of the business plan for entrepreneurship in
the Colombian context. Suma de Negocios. 12(26). pp.41-51.
Fatmawatie, N. and et.al, 2021. Effect of Net Profit Margin and Company Size on Risk
Disclosure. MEC-J (Management and Economics Journal). 5(2). pp.187-196.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset. pp.17-44.
Pröllochs, N. and Feuerriegel, S., 2020. Business analytics for strategic management: Identifying
and assessing corporate challenges via topic modeling. Information & Management.
57(1). p.103070.
Online
SWOT analysis of Tesco. 2021. [Online]. Available through <https://pestleanalysis.com/tesco-
swot-analysis/>.
Pestle analysis of Tesco. 2021. [Online]. Available through <https://pestleanalysis.com/pestle-
analysis-tesco/>.
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APPENDIX
Key Partners
Stakeholder.
Customers.
Employees,
Suppliers
Key Activities
Group meeting
Training
Value
Propositions
Providing
renewable
products
Environment
friendly
production
Customers
Relationship
Trustworthy
Transparency
Customer Segments
Demographic
Behavioral
Key Resources
Financial resources.
Digital resources.
Intellectual resources.
Human resources.
Physical resources.
Channels
Sales .
Communication .
Distribution .
Marketing .
Cost Structure
£8000
Revenue Streams
Advertising.
Licensing.
Leasing, renting.
Subscription fees.
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