Strategic Management: Tesco's Competition and Recovery Plan

STATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Explain M.E. Porter’s model of competition supports the experience of practitioners.........3
A case study approach............................................................................................................4
Recovery plan.........................................................................................................................5
A risk management strategy...................................................................................................6
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9
Books and journals.................................................................................................................9

INTRODUCTION
Strategic management can be defined as an overall direction towards the organisation
where it involve different kind of functions which are directly related to development of
objective, policies and plans within the organisation to achieve those objective by
implementing the plan and properly allocating resources within the organisation in strategy
manner (Rothaermel, 2016). In the current report, Tesco is chosen where the discussion about
different strategic management policies of the organisation will be considered. In the
beginning of this report, there is discussion about different aspects of strategic management
where the porter's five force model will be analysed in context of Tesco and competition
within the environment will also identified. In the middle of this report, there is discussion
about a case study related to the test and its functioning where a proper problem within the
Tesco will be identified related to strategic management (Schilling and Shankar, 2019). There
is also a discussion about a proper recovery plan which can be executed by the CEO of
Tesco. In the end of the report there is a risk management strategy which is advised to the
CEO of Tesco where they can reduce the risk within the recovery plan and can maximize the
profitability of the organisation.
MAIN BODY
Explain M.E. Porter’s model of competition supports the experience of practitioners
Porter's five forces model
It is that Framework which is used by different organisation to identify the
competition within the environment as well as identify different factors related to the
competition which can be reduced. This also help organisation in achieve its goals and
objective by eliminating the competition. Tesco is a global firm and it is important for the
organisation to adopt this model where it can identify different factors within the market as
well as minimise the negative impact of these factors on the functioning of organisation.
Threat of substitute products: Best operating at global level where there are various
competitive to Tesco and also there are number of products. Tesco is performing in retail
business where there are various small scale products and convenience stores which are
selling the organic products and these products are giving a tough competition to the Tesco.
So, this acted as moderate factor for Tesco because company have to form separate strategy
related to substitute in market (David and David, 2016).

Threat of new entrants: decision competitive advantage for the organisation like
Tesco because look askew is trading at global level and formatting its level it require use
capital investment as well as a long period of time for getting equalling to the organisation.
Possible for any new entrant within the retail industry to launch such type of business operate
different functions. There are also various big players in the market like as the sensory
Morrison are also offering different quality of product as well as have a huge capital
investment (Ginter, Duncan and Swayne, 2018).
Competitive rivalry: the large scale organisation as well as dealing in retail sector for
a long time. Make various rivalries to the company because of the competitive environment.
The major rivalry of Tesco is ASDA. it is also operating at global level as well as provide the
goods and services on the cheaper rates in comparison of also provide effective quality to
customer where customer are getting loyal to the organised this is impacting negatively on
the Tesco and organisation have to make proper strategy where it can survive within the
environment.
Bargaining power of buyers: this factor in porter five forces model implies to the
power of customers within the market in relation to the organisation. In context of Tesco, I
have large number of buyers within the competitive market where the organisation is trading.
These buyers are also loyal to the organisation because of the quality as well as mechanism
adopted by the organisation. This make the bargaining power of buyers low in comparison of
organisation and increase the profitability of organisation as it can charge more on its product
(Moutinho and Vargas-Sanchez, 2018).
Bargaining power of suppliers: are always active in competitive advantage to the
organisation because they provide goods and services to the firm for further sale. Retail
industry there are large number of sellers who are selling products to different organisations.
Reference to Tesco, it also have large number of suppliers within the market where it is
reading but in the international market organisation have to identify specific bias because of
low availability. This factor and moderate factor to Tesco because it have to formulate
separate policy for bargaining to those suppliers was selling the product which have
international value and also important to the organisation.
It can be identified from the above porter's five force analysis that school is operating
at global level and it is important for organisation to identify different factors there are some
factors like of bargaining power of buyers and threat of new entrants which act positively on