Strategic Management: Market Opportunities and Future Development of Tesco

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Examine the market opportunities of business............................................................................1
Analyse the better understanding about the future development of business. ...........................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is a method that is used by the company in order to formulate and
implement new strategies by which different goals and initiatives has been attained by the
company in constructive manner. In this various resources and reflection of the working process
of the business is identifies as by considering the impact of business on several functions and
operations. It provides the clear direction to the company by which the development of plans an
policies are designed to accomplish certain goals and objectives (Ansoff, 2018). In this
implementation of various strategies and plans is identifies by the business by which the ability
to gain more competitive profit is getting advanced. The following report is based on the Tesco
that is British multinational retailers and have provide groceries and general merchandiser. It is
the third largest retailer as in terms of revenue generator and having a headquartered in Welwyn
Garden City, Hertfordshire, England, UK. The report consist of different strategies that are taken
by the company in order to generate better market opportunities that helps to develop effective
making of strategies. In addition to this appropriate understanding about the different strategies
which is implemented in future period of time is analysed.
MAIN BODY
Examine the market opportunities of business
Tesco is a retailing sector company that has worked on a larger scale and have served
eleven countries such as like Ireland, India, South Korea, Czech Republic, Hungary. Slovakia
and UK as well. They have processed their products and services as in supermarkets, superstore,
hypermarket and convenience shop as well. It was founded in the year 1919 by Jack Cohen and
as the time passes their number of stores also get increases and as of now it is around 6,800.
Tesco has worked with 450,000 number of employees and have generate the revenue of £63.911
billion and its operating income is £2.206 billion and new income is £1.320 billion. Tesco has
also provide the diverse range of goods and services in the market as like book, clothes, telecom
and financial services, petrol, toys, electronic, furniture and many others as well (Carayannis,
2018). The company is using different strategies to get retain its market position and for that
they have raises the downmarket standards by using high-volume and low cost retailing by which
have tries to attain the attention of more number of employees in appropriate manner. Strategic
management is basically a process that is used to set particular objectives as by considering
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internal and external factors that ensures about the validate set of strategies through which it is
easy for the company to attain more success and development. The management of strategies
considers the goals setting, analysis, formulation , implementation and monitoring of various
strategies that aid to achieve its targets in appropriate period of time.
The management of Tesco is facing certain biggest issue which is related to cost cutting
that is the largest redundancies as they have cut the jobs of around 4,500 and it is announced by
them for their express stores. It is the largest cost cutting which is arise in express branches or at
supermarkets. Tesco designed the new strategies under this they have reduces the opening hours
of 134 express stores of them. In this the stores are opened late in the morning and closed earlier
in the evening and for this Tesco states that they have done this to reduces the the working
process and simplify the working procedure (Darling, 2019). The accommodation of customers
is most needed and with this metro stores are more bigger in the size as well but it is
comparatively smaller as well. For this Tesco designed the originality thus they have make
certain changes in their weakly shops under which 70 % of its shops that are placed in metro are
used as the convenience stores.
In context of strategic management, the issues that is faced by company is controlled and
managed with the parallel support of strategy and policy. In this porter's five forces are
considered that helps to provide certain information that is more relatable and helps to gain
selective changes by making appropriate and adequate analysis of all the different aspects.
Porter's five forces analysis: It is a framework that is used to measure the market
competition that affects the business performance and productivity. It helps to draws better
drives of economy by which the competitive intensity is identifies that aid to enhance the
attractiveness of business in terms of profitability. It is method that helps to identifies certain
strategies through which market opportunities are identified. It is more helpful and supportive for
Tesco to achieve more profit and sales within the stipulated period of time. It is more important
for the business to perform and induce some strategies through which they have intensifies its
working performance (Ferreira, 2018). Company faces the job cuts and in parallel there is an
urgent need to analyse the market requirement. For this different opportunities that is developed
as from the competitive market is needed to understand in timely manner. Porter's five forces is
being used to analyse the weakness and strength of business that assist to make and design
effective corporate strategy. It consist of different parameters that are as explained below as:
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