Strategic Management: Theory, Practice, and Case Study

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Compare theory and practice..............................................................................................1
2. A case study approach........................................................................................................4
3. A recovery plan..................................................................................................................5
4. A risk management strategy...............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management is a process in which identification as well as description of strategies
in order to evaluate and control business in respective industrial sector is being done in a
continuous manner. It is also termed as diverse form of decision as well as act that are being
undertaken by manager in order to evaluate organisation competitive edge. In this process
identification of competitors and goals and objectives are being undertaken in order to fulfil
consumer and industry requirements. This will allow organisation to assure their long term
sustainability (Nakrošis, Šiugždinienė and Antanaitė, 2020). Strategic management is termed as
a decision making process through which company can identify their strategic position, it further
aid in evaluating future profitability and sustainability of entity. Present report has been
conducted on Tesco, company operate their services in retail Industry sector and was founded in
the year 1919. This enterprise offers their products through super store, supermarket, convenient
shop and hypermarket. In this report formative discussion has been made on Porter five forces
model in order to undertaker knowledge of maximum extent of competition prevailing in
industrial segment. In addition to this report also include recovery plan and risk management
strategy.
MAIN BODY
1. Compare theory and practice
Porter five force analyses allow an organisation to evaluate industrial structure in order to
identify opportunities for competitive advantage. This analysis allow Tesco to identify
competition prevailing in retail industrial sector along with examination impact of all the forces
like supplier power, competitive rivalry, buyer power, new entrant and more that have significant
impact upon company operations in supermarket industrial segment.
Threat of substitute products:
It has been evaluated that grocery retail market is facing low threat of substitute services
and product in terms for food items. In this industry majority of substitutes are from small chain
of convenience store, organic and off licences shops which is not posing major threat upon super
markets like Tesco (Tesco Supermarket: SWOT, PESTEL, Porter’s Five Forces and Value
Chain. 2020). This entity is already providing high quality services and products in an extremely
lower price range. However Tesco can face threat of substitute services and products in their non
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food item segment, to overcome this Tesco is required to undertake the strategy related to
conduct their operations with having service oriented approach rather than product oriented. In
addition to this company have proper understanding of consumer needs can also gain more
competitive advantage.
Threat of New Entrants:
Threat of new entrants in food Retail industry is relative low as in this it is essential for
new entrants to invest huge capital in order to establish their brand. It has been evaluated that this
industry is already captured with leading entities like Sainsbury, Asda, Morrison’s and they offer
high qualitative goods and services to consumer (Rascão, 2020). Thus, in order to make their
entry successful new entrants are required to offer the product and services in exceptional low
prices or with high quality. By taking opportunity from this Tesco can undertake strategy of
continuous innovation in their product and services segment and can retain their existing
consumers along with influencing new once. Tesco is also required to take advantage of strategy
in which they are required to engage in extensive research and development process in order to
disrupt respective industrial segment.
Competitive rivalry:
Food and grocery retail industrial sector is having high intensity of competition. Tesco is
facing competition from organisations like Morrison’s, Asda, Sainsbury and Waitrose those who
are offering their services and products by taking use of aggressive competition over promotion,
product and prices (Lim, Jee and De Run, 2020). This is having capability to impact upon Tesco
leadership positioning in retail industrial sector. In this Tesco is required to undertake strategy of
sustainable differentiation in which they are required to provide different and unique product and
services to customers in affordable price range. Tesco by also taking use of strategy of
collaboration with other competitors can enhance their market size that ensures their leading
positioning respective industry.
Bargaining power of buyer:
Retail Industry is having high bargaining power of buyers as there are number of
organisation who offer slightly different or more standardised product and services to consumers
in affordable price range. This indicates switching cost very low that allow buyers to change
their shift from one brand to another in easy manner. Customers now-a-days seeks towards high
quality product and services in low price range. Thus, it is essential for Tesco offer their services
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