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Strategic Management Tesco Introduction 3 Task 2 5 PESTLE Analysis 5 The Threat of Substitute Products and Services 8 The threat of substitute products and services 8 The threat of entrrrors 8 The thr

   

Added on  2021-04-24

24 Pages5479 Words344 Views
Running head: STRATEGIC MANAGEMENTStrategic ManagementTesco

STRATEGIC MANAGEMENT1Table of ContentsIntroduction................................................................................................................................3Overview of Tesco.................................................................................................................3Task 1.........................................................................................................................................3Vision and Mission of Tesco..................................................................................................3Core Values............................................................................................................................4Corporate Strategy.................................................................................................................5Task 2.........................................................................................................................................5PESTLE Analysis...................................................................................................................5Political..............................................................................................................................6Economic............................................................................................................................6Social..................................................................................................................................6Technological.....................................................................................................................6Legal...................................................................................................................................7Environmental....................................................................................................................7Competitive Analysis.............................................................................................................7Porter Five Forces Framework...............................................................................................8The threat of substitute products and services...................................................................8The threat of entry of new competitors..............................................................................9The intensity of competitive rivalry...................................................................................9Bargaining power of buyers.............................................................................................10Bargaining power of suppliers.........................................................................................10Task 3.......................................................................................................................................10Strategic Drift.......................................................................................................................10Alignment of the Tesco’s Vision and Mission Statement....................................................11Strategic Capabilities of Tesco.............................................................................................12Leadership........................................................................................................................12Creativity..........................................................................................................................13Organization Design.........................................................................................................14Business Canvas Model.......................................................................................................14Task 4.......................................................................................................................................15Strategic Choice Model........................................................................................................15

STRATEGIC MANAGEMENT2Tesco’s Strategic Plan......................................................................................................15Strategic Options for Tesco..............................................................................................16Strategic Targeting Positioning............................................................................................17Segmentation Strategy.....................................................................................................17Targeting Strategy............................................................................................................17Positioning Strategy.........................................................................................................17Task 5.......................................................................................................................................18Implementation of Strategic Plan.........................................................................................18Conclusion................................................................................................................................18References................................................................................................................................19

STRATEGIC MANAGEMENT3IntroductionA roadmap of an organization is said to be a strategic direction which reflects its objectivesand how these objectives will be accomplished (Kokemuller, 2017). This report is beingpresented in order to identify the future strategic direction of Tesco Company. For this, ananalysis of the strategies of the company will be conducted in order to identify how strategicthinking has helped in achieving the organizational goals. Along with this, the analysis of thecompany and industry will be done. A Business Canvass Model will be portrayed to knowwhat values company is delivering in the market. Further, some strategies will be suggestedthat the company can use to defend its core business.Overview of TescoTesco is a multinational retailer of grocery which is situated in England, U.K. As per theprofit it is the third largest retailer across the world and by revenue, it is the ninth largestretailer (Tesco PLC, 2018). Across Europe and Asia, it has stores in 12 countries and in U.K,Hungary, Thailand, and Ireland it is the leading grocery market. Today Tesco has approx.450,000 employees in its stores (CTP, 2018). Task 1 Vision and Mission of TescoCompanies like Tesco who enjoy long-standing success, are said to be a focused business.The company has core vision which is constant whereas the strategies and practices of thebusiness regularly adjust according to the changes in the business world (Mihailoaie, 2013).In a globally competitive environment, a business without a strong vision will miss the trackand will not be able to continue. Vision of Tesco is to become the most appreciated business

STRATEGIC MANAGEMENT4for the target consumers, society, colleagues and its shareholders (Tesco UnderwritingLimited, 2018). Five Elements of Tesco’s VisionThe five basics of Tesco’s vision reflect the kind of the business it aims to be:Innovative, modern and full of ideasWants its stores to the present in the whole worldEarning trust, inspiring and loyalty from colleagues, communities, and customersA developing business with full of opportunitiesWinners locally whereas offering services globallyThe statement of vision, mission, and goals are interconnected and explain what the companyis looking for however the tactics and strategies reflect the way it will be achieved. Tesco'smain mission is simple: They offer products which matters more for the customer. Core ValuesThe core values of the Tesco involve an assurance to using quality goods as being aresponsible retailer. The company established the first zero-carbon supermarket in the worldin 2010 in Ramsey, Cambridgeshire and for this; it received the Retailer of the year award in2012 at the Annual Grocer Gold Awards. By 2050, it desires to be the zero-carbon business(Tesco PLC, 2018). The continuous success of the Tesco is because of its re-evaluating andframing clear strategies. The aim of the Tesco is to enhance customer loyalty and its businessso that it can help in developing the experience of customers. To achieve this target companycommitted to invest £ 1 billion in a programme. Policies to improve effectiveness were thenestablished. The driving forces which are the reason behind these policies are innovation,

STRATEGIC MANAGEMENT5quality, price, and range as well as providing multichannel customer service, for instance, byits service of ‘Click & Collect’ (Human Resource, 2015). Corporate StrategyTesco is counted in the list of giant retailers who have a large number of retail stores. Itsprincipal business strategy is to generate value for the shareholders by the invention andfocus on the customer satisfaction. The principles are as follows: To have a strong position in the marketTo assist the communityTo develop its business essentially in the UK To expand the business globallyTo trade effectively all over the worldTo be the inventor of brands (Tesco, 2015)To make value by teamworkTask 2 PESTLE Analysis Source [(ED Media, 2018)]

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