Strategic Management: Strategic Analysis

STRATEGIC
MANAGEMENT -
STRATEGIC ANALYSIS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Compare theory and practice.......................................................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is defined as formation of strategies on the basis of the set goals
and objectives of the organisation. This report is based on the case study of Tesco Company in
respect to its strategic management approaches. Tesco Company is a United Kingdom based
retail sector organisation. Company started its business operations in the year 1919. Company
deals in high quality clothing, food products and home products. This report will project the
strategic management approaches of the Tesco Company. Henceforth, report would emphasis on
the comparative theory and practices in respect to the Tesco Company. Competitive analysis of
Tesco Company will be conducted in this report. Analysis such as business environment
analysis, competitor analysis and competitive analysis will be conducted in this report.
MAIN BODY
Compare theory and practice
Retail sector is among the most emerging market sector across the globe. The sector is
gaining a huge demand in the market all across the globe. Retail sector comprises with product
range that belongs to basic needs of the people. With the support of various analytical tools like
business environment analysis, competitive analysis and comparative analysis positions of the
company in target market can be projected.
Business environment analysis
Business environment is considered as the environment in which companies conducted
their business operations. External business environment can be analysis on the basis of PESTEL
Analysis tool. This tool is a well diversified tool that support companies to collect all relevant
information about the market and associated market sector.
PESTEL Analysis
PESTEL Analysis is a well diversified analytical tool covers all factors that influence
company’s business in the associated market. Business environment consist a volatile nature that
offers plenty of uncertainty in the market. PESTEL Analysis comprises with factors like
political, economical, social, technological, environment and legal factors. All such factors
directly influence the company’s operations and business outcomes in the market. Retail sector
comprises with basic needs of human beings so all such factors aggressively work over the
business operations of the company.

Political Factor: Political factor is among the key external factor hat influences company
operations. Policies frame by government related to the corporate sector is a part of the political
factor. Government all across the glove support companies in operating business operation.
Corporate sector contributes in the economic growth of the country. Retail sector comprises with
basis products requires for living that also attract special interest of government in the growth
and development of the retail sector (Kolk, 2016). Retail sector is among such sector that
generates one of the major tax returns in indirect forms due to its heavy demands on a regular
basis. The sector comprises with all economic background and class people and all human
belongs to any culture, religion and any social factor. The area of the sector is too vast which
also offers special interest of policy making of government in retail market. Recently the sector
has also seen some restrictions. In recent times BREXIT influences the business operations of
the companies like Tesco in a negative manner. BREXIT offered restriction to companies
operate in England that also resulted into reduced demands of the retail product. Political
stability is also a big factor that influences the business operations of company. Political stability
allows companies to frame long term business development and growth oriented strategies.
Economical Factor: Economic factor in among the crucial business environment factor
influences company operations. Economic factor denotes about the economic situation of
country. Factors like currency exchange rate, value of currency in international market, stability
of the currency, economic policies of government, monetary policies and different other policies
frame by government to strengthen the economic environment is a part of this factor of business
environment (Holmqvist and Ruiz, 2017). All such factors directly influence the sales of the
company in market. Product prices are also influenced with these factors. Tax reform of
government also put a big impact as it reduces the selling price of products. Taxation directly
increases the prices of products. Stable economic position of the government keeps the prices of
product at low rate. Economic stability allows Tesco Company to develop a long term business
growth plan and strategic formation. Inflation in economy is also a huge factor associated with
the economic factor. Inflation directly restricts the purchasing power of the end customers as it
resulted into price hike of all the retail products.
Social Factor: Social factor involve different elements that influences the operation of the
company in market. Social factor are among the dominating tool related to business growth are a
part of the PESTEL Social factor comprises with factors like choice of people, religion, culture,