Strategic Management: Analysis of External Environment and Change in Organizations

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysis of external environment................................................................................................1
Change in the organizations.........................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic Management is a process through which the different types of organizations are
able to execute their strategies in a highly effective manner which can help them to be able to
attain the desired goals and objectives in the future (Aguinis, Edwards and Bradley, 2017). For
the managers its use becomes crucial because it helps them to be able to determine the strategy to
be used very clearly for ensuring the application in the overall processes without problems and
issues. For this assignment, Tesco has been considered. It is a British Company which deals in
groceries and various other related products. In this report, there will be specific focus on
analysis of the external environment. Additionally, change management in the organizations will
also be considered as a part of this particular project.
MAIN BODY
Analysis of external environment
External environment refers to a sum total of different types of macro factors which can
create an impact on the level of operations of the organization in a highly effective manner (Al
Shobaki, Abu Amuna and Abu-Naser, 2016). For Tesco it is quite important to assess its external
environment which will help it in ensuring that a proper strategy can be framed by it for the
purpose of achieving its different goals and objectives in the future.
A particular process can be used by the organizations so that they are able to determine
their strategy. This process can be explained as follows-
 Identification of goals and objectives- It is crucial for the firms to be able to identify the
goals and objectives in the right manner (Baumgartner and Rauter, 2017). Therefore in
this way they make sure that they are able to identify the appropriate strategy which can
be used for achieving them in the right manner. In the context of Tesco, it is quite crucial
that it is able to identify its goals and objectives clearly. This will not only help it in
ensuring that it is able to effectively and efficiently ensure that the goals and objectives
are set for the short-term, medium-term and long-term.
 Assessment of the competitors- It is important for the organizations that they assess
their competitors which are present in the market. Thus in this way they are able to
ensure that they can prepare a right strategy for them. Therefore Tesco has to ensure that
it can assess its competitors clearly. This will help a lot in making sure that through the
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assessment of the competitors in the market the company is able to frame a strategy
which will help it a lot in the future to target the maximization of the overall level of
profits.
 Assessment of the skills of employees- It is crucial for the firms that they are able to
assess the skills of the employees in a highly effective manner. Thus in this manner they
can ensure that they are able to set goals and objectives for them according to their skills.
Tesco therefore needs to assess the skills of workers so that it can set goals and objectives
for them to achieve. This will be helpful in ensuring that the skills are developed in an
appropriate manner. For the company it offers an opportunity to ensure that the level of
skills of the workers is assessed and the desired actions are taken.
 Application of the strategy- The organizations should consider their different types of
factors and frame their strategy accordingly. They should also ensure the right application
of the strategy. Therefore for Tesco it is crucial that the strategy can be applied
effectively and efficiently. The application of the strategy can be done by the company in
a manner which ensures that the short-term, medium-term and long-term goals and
objectives of the company are attained quite effectively and efficiently. For this it is
required that the identification of the specific goals and objectives are made in the
company and thus it is able to ensure that it can work in the right manner for ensuring
that the strategy application is done in a proper manner. This will make the strategic
management of the company successful.
For the purpose of analysing the external environment, the use of PESTEL analysis can
be made. The explanation of this model is done as follows-
Political factors- The political situations are quite dynamic and ever-changing in nature
(Bettis and et.al., 2016). Therefore it is crucial for Tesco to consider them as they can create an
impact on its level of profits. Thus the factors like Government Policy, Political Stability etc. can
be analysed by the organization.
Economic factors- The economic situation of a country is also dynamic and ever-
changing in nature (Bondarenko and et.al., 2017). It can create an impact on the way in which
the companies operate and therefore it ensures that they are able to enhance their level of profits
effectively and efficiently. Therefore the factors like Economic Growth, Disposable Income etc.
are required to be considered by the firms like Tesco.
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