Strategic Business Analysis: Ukraine Case Study

This assignment focuses on understanding business strategies in the context of political risks, particularly in Ukraine. Students are required to analyze the impact of corruption, favoritism, and institutional ambiguity on business strategies. Additionally, they should evaluate the effectiveness of visualizations in communicating these strategies, explore stakeholder marketing approaches for sustainable business practices, and assess the performance measurement systems used.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. A) Business level as well as corporate level strategy.............................................................1
1 B.) Environmental analysis......................................................................................................3
1 C.) Resources and competent analysis.....................................................................................4
2. Developing strategy plan based on above analysis................................................................5
3. Evaluating the place of strategic control through the development of strategy
implementation plan....................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is a process that include management of companies resources in
order to accomplish desired objectives. It involves various activities such as establishing short as
well as long term goals, identifying the competitive environment, conducting internal as well as
external analysis, determining and reviewing strategies. The strategic management intends to
identify the way business entity achieve competitive environment, exploring as well as capturing
opportunities, formulating strategy in order to minimise threat. It also assists organisation in
effective utilisation in resources.
Understanding the concept of strategic management is important as it helps manger in
designing or formulating suitable strategy in order to deal with risk and other business problems.
The report has focus on conducting strategic analysis of Tesco Information and data that
support manager in effective decision making. The main problem that has effected the Tesco
brand image is its poor quality of products and services. It will also include various other tool for
measuring the impact of various environmental forces on business operation.
TASK 1
1. A) Business level as well as corporate level strategy
Business level strategy intends to emphasize on enterprise core competencies that can be
used by firm for meeting customer expectation. As this activity will support business entity in
increasing its profitability. Business level strategy is defined as detail tactics that is planned to
provide value to consumers and this will also allow business entity to achieve competitive
advantage by making proper utilisation of competitive advantage. It is more concerned with
position of organisation in market (Leitner, Meissner and Martyna-David,2015.)
Corporate level are associated with strategic decisions that is taken by manger and have
great impact or influence on entire business. Human resource management, Mergers, acquisition,
financial performance all are elements of corporate level strategy.
As due to various controversies related to quality of products and services have great
effect on companies' growth. Tesco has adopted new strategies in order to foster its growth
process.
The various plans about various operational activities that has ben planned by company
are :
Expansion of offshore services.
1

Adoption of effective as well as advanced technology for manufacturing goods and services.
Development of innovative products as well as modification in features of existing goods.
Adoption of rental; business in order to market conditions and incorporation of additional pipe
handling item into international platform.
This corporate level; strategies has drive Tesco towards achievement of their goals as
well as objectives.
Porters Five forces model
Threat of New entrant: The retail industry in UK is highly dominated by few competitors. The
major competitors in Retail industry in UK are Tesco, Asda, Safe way and sainsbury's that holds
maximum market share. There is less risk of entry of new firm as there are mainly two reason i.e.
Retail industry is a very big and require huge investment of capital. The organisation that are
dealing in retail industry has to bear burden of fixed cost and required to maintain highly
developed supply chain. Advance technologies and strong stock controlled system that has been
adopted by existing companies has great effect on the entry of new competitors.
Bargaining power of Suppliers-The bargaining power of suppliers is comparatively low. As
suppliers in retail industry is totally dependent on Big companies like Tesco to deliver their
products as well as services to end consumers. Tesco has able to maintain good relationship with
its suppliers and able to get supply of goods at reasonable price. It has provided organisation an
opportunity to increase its profit margins.
The case of Tesco that has been analysed from the report of (Mc Cabe, a retail pricing
expert states) that Tesco treats its suppliers very badly and its suppliers has threat of losing
contract with such a big organisation. Enterprise has signed agreement for supplier code
practices that has been given by Department of trade and industries in order to solve the various
problems that has been faced by supplier. It has been presented by the authority that have control
over industrial activities that Tesco is not complying with the agreement. Tesco have high threat
of being de-listed by supermarket (Kernbach, Eppler and Bresciani, 2015)
Bargaining power of Customers-The significant reason behind firm profitability is Club card
that is introduced by organisation and other reason is its consumer maintenance strategy. Tesco
has high potential to meet its customer expectation and need. As firm has focus on conducting
various activities such as store promotions, customizing services that has helped business entity
to provide goods at reasonable price to its customer. The consumer has low bargaining power.
2

Customer are more sensitive about product prices and they are more concerned about fair trade
practices. Tesco provide wide variety and range of products as well as services that are
manufactured through fair trade practices. But because of unfair trade practices that has been
executed by other firm operating as supermarket has negative effect on the industry. It also has
great influence on other organisations. There are other some evidence that presents that there are
some companies in supermarket exploiting consumer goodwill by charging high price for the
goods that are being manufactured through unfair trade practices.
Threat of substitute- There is less threat of substitute product. As Tesco has focus on acquiring
small scale operations and establishing more metro as well as express retail outlets. The
organisation has high market share in retail industry, it is very difficult for small enterprise to
compete with such big company that has high buying power. Tesco emphasizes on executing
contract with whole sellers. One of the brand in UK named as Corner shop has stated that it
prefer buying Tesco brand as it is cheaper and can be resold them at higher price in market.
Bargaining power of Competitors-The market environment in retail industry in UK are
controlled by Big existing firm, that has high market growth. Market in which retailers
positioned their products as well services are considered to be mature, so there is les number of
companies are operating in industry. Customers in retail industries are more demanding and
sophisticated. Some big organisation like Tesco have focus on gathering various information as
well as data that can be further utilize for determining the needs of consumers and fulfilling their
expectations. It is required by Tesco to adopt advance technology as this will help enterprise in
improving their quality of services and development of new product (Amran, Ooi and Devi,
2015.)
1 B.) Environmental analysis
Pestle analysis can be used to analyse the impact and influence of various environmental
factors on business activities (Pestle analysis, 2017)
Political factors- Employment legislation has great impact on the human resources policies and
practices. Tesco is less effected by this as it provides equal treatment to booth part as well as
full-time workers. Tesco within in time span of six year has provided employment to more than
2000 workers.
3

Economic -Economic conditions, policies , inflation are the same economic forces that has great
impact on Tesco. Restriction by government to utilize specific area has made difficult for
organisation to expands its business and to gain economies of scale.
Social-These forces have effect on various decision related to production as well as operational
activities.
Technological-Technological forces has enabled enterprise to improve its quality of products and
increase its operational efficiency. It has great effect on choice of distribution channel.
Environmental factors-Increase in competition has provided business entity an opportunity to
increase its competencies. It has great influence on competitive strategy (Staake, Thiesse and
Fleisch, 2012.)
1 C.) Resources and competent analysis
The Tesco presently have strong technical, financial as well as other physical
resources .It has moderate enterprise capabilities.
Financial resources:The Tesco has high financial growth and enough potential to generate
revenue. The company is able to increase is sales volume by making changing in its operating
system and providing training to its employees. Its strategy of after market sales services has
allowed enterprise to increase the demand for their products and attract more number of
consumers (Grünig and Kühn, 2015.)
Technological resources has enabled firm to increase is production capacity and
operational efficiency. It has provided business entity a chance to improve their quality of goods
as well as services. Due to ineffective operating system the Tesco has to face short term
operational loss and there was increase in customer complaints about the quality OF products.
This factor has great impact on the brand image of cited company.
Core competencies of business entity is that it has highly qualified and talented human
resource management team. Highly recognised brand image.
1D) It is required by firm to review its strategy and make changes in business plan according
to the situation. Tesco should maintain healthy relationship with its supplier and comply with all
code of conduct that is mention in agreement that has been provided by department of trade. As
this will support enterprise in increasing its sustainability. It should adopt technology according
to the requirement of operational as well as production activity (Gonzalez-Padron, Hult, G.and
Ferrell, 2016.)
4

2. Developing strategy plan based on above analysis
Strategic planning is defined as a process that has been executed in order to ensure that
various business activities are providing benefit to organisation and supporting firm in increasing
their output. It supports business entity in identifying their objectives as well as goals (Mitchell,
and et.al., 2016)
Tesco is the biggest as leading supermarket dealing in retail industry. It has high growth
rate and company is able to maintain its position in market. In earlier times, there was not a
system of self services, during that time, Tesco was the first company to launch new system of
self-services that has provided business unit to foster its growth and expand its core business
activities.
There are various steps included in strategic planning process are :
Developing Vision statement- Tesco Vision is to become most high valued business and develop
good brand image among consumers as well as society. Its vision is to gain loyalty of maximum
number of customers and provide higher return to its stakeholders.
Formulating Mission statement- Tesco have focus on providing good quality of products and
services to it services to customer at reasonable price.
Establishing goals-To investor much on various strategies in order to provide satisfaction to
customer and other stakeholders.
Setting objectives- Tesco objectives is to focus on fulfilling their responsibilities towards society.
It emphasizes on creating value for its clients in order to make consumer loyal towards brand.
Organisation purpose is to provide various opportunities to its workers and ensure their
participation towards achievement of mission and vision. Enterprise intends to increase its sales
volume by 8 percent within two months.
Strategies- The various strategies that are adopted by Tesco for achieving its various short as
well as long term objectives are:
Strategies for making demographic changes- Tesco has planned to produce its own produces,
develop own label and brand name. This strategy has been adopted by firm in order to provide
good qualities products as well as services to its customer at reasonable price. As this plan will
provide organisation chance to gain popularity among consumers. The business entity intends to
target customer with low income group.
5

Globalisation strategies-As Tesco has able to gain popularity and has wide customer base , it can
enter into new market. This activity will support business unit in exploring as well as capturing
new business opportunities. It will also aid firm in reducing competition and effect of various
environmental forces on its business operation. Establishing stores at many places will provide
Tesco an opportunity to provide quick services to its clients.
Strategies related to Demographic changes- Tesco is planning to establish their stores at the
centre of cities as this will provide its customer an ease to purchase comp[any goods as well as
services. Developing stores and opening stores for 24 hours will allow firm to increase its sales
and gain popularity among consumers. Small and medium size stores will allow business entity
to attract low income group people.
Marketing strategy-The company has launch new system of club card for attracting more
numbers of consumers. These activities have helped organisation in developing and maintaining
healthy relationship with its client. It has provided enterprise an opportunity to communicate is
purpose and complete information about products. Tesco has got a chance to gain customer
loyalty.
These plans as well as strategies has assist business entity in improving as well as
maintaining their performance in market. It has also supported business organisation in
maintaining its financial stability.
The Tesco has able to fulfilled its short as well as long term goals to a greater extend.
Organisation is able to maintain its position as a leading retailer in market. Business entity has
got a chance to improve its sales volumes. Its skilled as well as talented workforce has allowed
firm to expand its core business activities and enabled business unit to provide good quality
services to its customers (Baird and Baird, 2017.)
3. Evaluating the place of strategic control through the development of strategy implementation
plan
Strategic implementation is defined as a process of transforming strategy into tactics to
achieve strategic goals and objectives. There are various places that required control
Lack of ownership- The main reason of failure to implement strategy is lack of ownership. If
employees and other stakeholders regret taking participation and responsibilities related to the
implementation of business strategy , it may has great effect on the firm growth and success.
6

Manager in Tesco is required to ensure the participation of each and every stakeholder in
strategic implementation process.
Lack of communication- This is the another factor that are required to be controlled as this will
have great impact or influence of series of activities that are to be conducted in order to achieve
strategic goals as well as objectives. Effective communication enables manager to ensures that
fair practices are been executed. It also assists project manager in measuring the outcome
produce by individual activity. Effective communication and coordination among workers help
in eliminating overlapping of activities, it also ensures effective utilisation of resources, and
assist business unit in eliminating waste as well as reducing various costs. It also allows human
resource manager in evaluating employees performance.
The human resource as well as project manager and leader is responsible for
communicating strategic objective, benefit and other consequence of particular process to
employees. They are also accountable for defining the roles as well as responsibility of each
individual in strategic implementation process.
Role of manager is to formulate strategy including establishmentarian of objectives. Their
role also include communicating the complete information about the process and activities that
are to be executed when implement strategy. Function of leader is to define the roles as well as
responsibilities to employees and provide them training. The workers' responsibility is to support
firm in same process and increase their contribution towards achievement of strategic goals as
well as objectives (Bjerke and Renger, 2017)
The role of external stakeholder is to arrange various resources and provide suggestion ,
feedback to company regarding implementation process. Their function is to support firm in
identifying the perception of consumer regarding the strategic implementation.
Gathering information about routine – This method will allow manger to review strategy and
minimising the effect of various factors on strategic implementation process. Control of various
environmental forces is important as these factors may have adverse impact on result produced
by strategy and may have great influence on various decisions that are associated with strategic
implementation process. It will provide organisation an opportunity to achieve long term
strategic objectives.
Control over extraordinary plans or activities- It is very essential for project manager to
review, organised, managed and various activities that are involved in process of strategic
7

implementation process. This activity will assist business will support business entity in
eliminating unnecessary activities that may lead to increase in addition cost of implementation. It
will support management in establishing their focus on core activities that will support enterprise
in producing effective outcome and ensuring accomplishment of desired objectives.
Tracking process-This procedure will enable business entity to ensure effective results.
Accountability and higher visibility- This method of controlling implementation will help
manager in driving successful change at workplace. The various information , data must be
maintained as this will help manager in measuring the effectiveness of the process as well
evaluating the performance level of each participant those who are involved in strategic
implementation process. It also supports human resources' manager in encouraging employees to
increase their contribution in strategic implementation (Johnson, 2017.)
Empower- various power given to employees may have great influence on output produce by
strategy. It is required by personal manager in TESCo to conduct stakeholder analysis. As this
activity will assist organisation in identifying important stakeholders that have influence and
impact on executing strategy. It very essential for human resource manger to satisfy the needs as
well as demands of main stakeholders in order to achieve desired strategic objectives (Kavanagh
and Johnson eds. 2017)
CONCLUSION
It has been concluded from the study that strategic management is a very essential
process as this support firm in identifying their goals and objectives. It also provided
organisation a path to achieve its mission and vision. The report has successfully used Pestle
analysis tool to identify the effect of various environmental factors on business operations. It has
been concluded that this forces have great effect on the growth and success of business.
Resources are very essential to conduct various business activities. It has been identified that
Tesco has moderate resources that has allowed its manager to formulate suitable strategy and
ensure successful implementation of plan.
The various strategies has been suggested by project that can be used by Tesco for
increasing its competencies and competitive strength. There are various areas that are required
to be control during strategy implementation process as these may have great impact on
outcomes.
8

REFERENCES
Books and Journal:
Leitner, J., Meissner, H. and Martyna-David, E., 2015. The Debate About Political Risk: How
Corruption, Favoritism and Institutional Ambiguity Shape Business Strategies in Ukraine.
In EU Crisis and the Role of the Periphery. Springer International Publishing. pp. 3-19.
Kernbach, S., Eppler, M.J. and Bresciani, S., 2015. The Use of Visualization in the
Communication of Business Strategies An Experimental Evaluation. International Journal
of Business Communication. 52(2). pp.164-187.
Amran, A., Ooi, S.K. and Devi, S.S., 2015. The Impact of Business Strategies on Online
Sustainability Disclosures. Business Strategy and the Environment. 24(6). pp.551-564.
Staake, T., Thiesse, F. and Fleisch, E., 2012. Business strategies in the counterfeit market.
Journal of Business Research. 65(5). pp.658-665.
Grünig, R. and Kühn, R., 2015. Strategy Planning Process. In The Strategy Planning Process.
Springer Berlin Heidelberg.
Gonzalez-Padron, T. L., Hult, G. T. M. and Ferrell, O. C., 2016. A Stakeholder Marketing
Approach to Sustainable Business. Marketing in and for a Sustainable Society (Review of
Marketing Research, Volume 13) Emerald Group Publishing Limited. 13. pp.61-101.
Mitchell, R. K. and et.al., 2016. Stakeholder agency and social welfare: Pluralism and decision
making in the multi-objective corporation. Academy of Management Review. 41(2).
pp.252-275.
Baird K. and Baird K. 2017. The effectiveness of strategic performance measurement
systems. International Journal of Productivity and Performance Management 66(1), pp.3-
Bjerke M. B. and Renger R. 2017. Being smart about writing SMART objectives. Evaluation
and program planning 61 pp.125-127.
Johnson G. 2017. Exploring strategy: text and cases. Pearson.Knowledge management as a
factor for the formulation and implementation of organization strategy. Journal of
Knowledge Management 21(2) pp.308-329.
9

Kavanagh M. J. and Johnson R. D. eds. 2017. Human resource information systems: Basics
applications and future directions. Sage Publications.
Online
Pestle analysis, 2017.[Online].Available
through:<http://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/>
10