Strategic Management: Explaining Processes, Evaluating Impact, and Developing a Business Plan for TESCO

This report covers the strategic management practices of TESCO, a multinational organization in the retail industry. It explains the processes used by TESCO to determine their strategy, evaluates the impact of internal and external environment variation on their strategy, and develops a business plan for making changes in internal factors. The report also includes a marketing plan for TESCO.

MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explaining the processes used by organization to determine their strategy................................1
Evaluating impact of internal and external environment variation organizational strategy........3
Explaining strategic plan (business plan) for making changes in its internal factors................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................13

INTRODUCTION
Strategic management is an on going process that is concerned with planning, organizing,
evaluating all crucial information in order to meet organizational objectives and goals. In the
current era, it is essential for the organization to pay attention on developing strategic
management practices in turn higher ability toe eliminate irrelevant aspects to meet
organizational goals. Current report is based on TESCO which is one of the international
organization and operates in retail industry. There are various types of products offered by
company such as groceries and merchandise commodities. Present report will comprise process
used by organization to determine strategy and impact of internal & external environmental
variation on it. Presents study will pay attention on developing business plan so that relevant
action plan can be implemented.
MAIN BODY
Explaining the processes used by organization to determine their strategy
TESCO as being multinational organization require to pay attention on developing
effective strategy that can help in achieving organizational objectives. To become successful in
current competitive environment it is important for the company to highlight several distinct
factors in order to have systematic procedure for formulating suitable course of action. TESCO
operates in retail industry which faces higher level of competition that require firm to largely
concentrate on building effectual pattern of tactic in turn leading position in sector can be
derived (Dzwigol, 2020). The process which is used by organization for formulating significant
level strategy that involves identifying mission statement of company, analyzing situation
prevailing in environment, setting objectives, developing strategy, implementing and
monitoring.
Each step requires higher level of concentration in turn greater flexibility to coordinate
with changing circumstances can be derived. TESCO in order to make strategy pay attention on
mission statements so that decided course of action can allow the organization to achieve those
factors (Perera, 2017). TESCO organizational mission is to provide higher quality products
with ability to gain higher level of customer satisfaction. For the purpose of maintaining desire
level of quality so that business requirement can be met, firm pay attention on drafting such
course of action in turn maximum positive impact on firm can be derive. The initial step is
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essential for any firm that seek to gain competitive advantage. The main reason behind this step
is to ensure that the mission formulated by firm can be derived with particular strategy.
For analyzing situation organization pay attention on conducting proper SWOT and
PESTLE techniques so that both micro & macro aspects can be covered. It is important in the
current competitive environment to highlight that what are the elements that are influencing
organizational processes either in positive or negative manner (Duhaime, Hitt and Lyles, 2021).
Obtaining such kind of knowledge can give ability to organization to ensure that what are
significant factors that need to be monitored and controlled in order to make sure that business
achieves growth and development. In addition to this, situation analysis as well contribute in
providing information regarding the components like processes, policies, etc. That are needed
to be eliminated in respect to gain competitiveness.
Setting objectives becomes important for the company to develop so that bench
marking and standard level of growth can be expected (Achinas, and et.al., 2019). To ensure
higher level of development, TESCO concentrate on relying on predetermine objectives in
turn better capabilities to decide proper utilization of resources through focusing on identifying
needs and allocating as per them. TESCO highly give consideration on making its objective so
effective so that significant processing via measuring, achieving, relevant & having specific time
bound in order to fast and effective accompaniment can become possible. There is need to
highlight what is need to be achieved by business to particular point of time so that proper
strategy can be constructed to derive business objective.
Developing, implementing and monitoring is essential for the purpose of making
effective business tactic. TESCO as being larger organization need to ensure that business is
obtaining its objective of reducing cost, higher customer experience, determination of
differentiation, etc which can be derived by business (Grewatsch, Kennedy and Bansal, 2021).
The most important strategy that are followed by TESCO of its set goals & objectives such as
cost leadership, differentiation and niche strategy in turn higher productiveness and
sustainability can be maintained.
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Evaluating impact of internal and external environment variation organizational strategy
There are number of factors which need to be taken into practice so that capabilities to
improve prevailing situation can be improved (Li, 2018). For the purpose of identifying
internal as well external factors affecting organization SWOT and PESTLE techniques
SWOT analysis
The internal factors that can affect organization can be taken into consideration so that
higher ability to overcome the prevailing challenges. There SWOT analysis helps in assessing
strengths, weakness, opportunities and threats.
Strengths
 Biggest grocery store is one of the
significant strength of firm that is taken
into consideration while formulating
strategy
 Efficient network of supplier, market
share, largest private employer., diverse
product range, etc. play important role in
impacting business (Velikorossov and
et.al., 2020).
Weaknesses
 Sudden Club card switching, accounting
fraud scandal, financial errors, etc are few
major drawbacks that need to be taken
into consideration so that ability to decline
such factors can become possible.
 Less operating profit, weak performance
and low cost technique need to be
highlighted for the purpose of decision
making.
Opportunities
 Expansion of Jacks store , new emerging
market , alliance with other brands and
online shopping need to be taken into
practice while formulating strategy. It
Threats
 Fake farm, rumors, supermarket, etc so
that proper consideration in order to get
effectual processing while including such
tactics that can be removed to get higher
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progress (Sarsby, 2016).
On the basis of this, it can be identified that these are few internal factors which influences the
decision making process of company. There is higher requirement to include this in turn greater
competitiveness can by TESCO can be derived.
PESTLE analysis
Business operates in external environment which highly influence organizational process. It is
important for TESCO to evaluate so deeper insights about organizational processing can be
derived. PESTLE analysis is widely taken into sue by firm for evaluating such factors like
political, social, technological, economical, legal and social.
Political factors
There are number of external factors that are consisted as political factor which
comprises stability, tax rate, tariff rate, regulations, etc. are significant factors which largely
impact the organizational growth & development (Grant and Baden-Fuller, 2018). To become
successful in industry TESCO require to give larger focus on developing and removing by
properly complying which such factor. These political issues major affect business operational
practices through creating adverse situations. TESCO can take this information while
formulating strategy so that continuous progress can be derived.
Economical
Firm need to highlight all elements that can impact enterprise growth & development.
unemployment , saving & interest, GDP, inflation rate, working hours, credibility of cost, etc
are some of the major economic components that decided business efficiency & progress (Iqbal
and Grigg, 2020). In order to be successful in organization company is required to majorly pay
attention on getting these components into process so that capabilities to cope up with theses
situation can become possible. The main reason behind this is to overcome challenges that
may arise due to prevailing economic situations.
Social factor
To get best strategy formulation, it is crucial for TESCO to pay attention on identifying
such social components that has effect on company’s process so that greater efficiency can be
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derived. There is requirement of the including all these components in respect to make crucial
and suitable strategy that can positively affect TESCO growth. In order to handle those
challenges which can create barriers for specified organization to reach desirable position.
These includes consumer shopping behavior, taste preferences, attitude and belief of customer,
cultural values, etc.
Technological factor
In current business environment, technology is playing important role in influencing
company’s process fro improving organizational activities. It includes advanced technologies,
and emergence of digitization which contribute in gaining success. To become leading
organization in industry it is important for the firm to largely concentrate on evaluating that
what are trending technologies used by competitors for enhancing productivity & profitability
(Wang and et.al., 2021). In addition to this, TESCO’s productivity and efficiency can get
affected from technological factor prevailing in sector as it gives higher compatibility to cope
up with market forces.
Legal factor
Industrial, employment, resource utilization, government rules & regulations, etc are
few legal aspects that need to be monitor and control by TESCO for the purpose of making
larger emphasis on getting ability to coordinate with prevailing situations. Legal elements are
those factors that affect the progress and functioning of company. In order to maintain
trustworthiness and credibility it is important for TESCO to majorly concentrate on complying
with prevailing legislation in turn stability in market can be derived.
Environmental factor
There are number of resources that are sued by firm for accomplishing its organizational
objectives. For using these resources, there are number of rules and regulations imposed by
government (What is PESTLE analysis? 2021). Standard rule of utilization of environmental
resource, reduction of pollution, accomplishment of social cooperate responsibilities, etc play
one of the major role in gaining benefits o f taking strategic decision. To make strategic
management decision including all aspects are important so that overall concern for getting
growth & development can be obtained.
On the basis of this, it can be identified that variation in these internal and external factors
impact business strategic decision for making strategy in order to have effective tactic (Richards,
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Ahmed and Bruce, 2021). TESCO need to focus on all these factors so that overall micro and
macro evaluation can be conducted to get proper information that is essential to take into
practice in turn enhancing positive and declining negative impact can become possible.
Explaining strategic plan (business plan) for making changes in its internal factors
Mission statement-
Company formulates what makes better together so that higher quality, differentiation,
cost effectiveness can be maintained to improve internal process.
Objectives
 To increase sales by 10% through offering diversified range of products within the year
 To improve cost structure 20% within 6 months so that cooperating with economic factor
with maintaining high operating performance
 Reducing lacking areas occurring in financial department by 35% by the end of 3 month.
 Enhancing employee skills to increase effectiveness of marketing practices by 20% by the
end of 2 months.
Company background
TESCO is one of the international organization that offers products and services such as
groceries and merchandise commodities. These are number of internal and external factors that
affect the organizational growth & development (David and David, 2017). Firm has presence in
various nations that require it to make improvement plan in turn higher capabilities to sustain in
industry can be derived. To make changes in highlighted areas through accomplishing
objectives of TESCO it becomes essential for firm to have systematic process.
Service description
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TESCO will pay attention on improving its organization way of dealing with customers.
Specified company has number of retail outlets that allow users to conduct effective
purchasing. To make few changes in its operational activities through ensuring proper supply
chain management so that higher ability to met market forces in efficient manner can become
possible. To improve its current practice current organization has given emphasis on
launching the service of allowing customer to get demo of each products of groceries offered so
that higher quality among customer can be ensured. Trustworthiness among customer can be
developed by ensuring customer that offered products is effective and appropriate ability to
meet their overall objective of purchasing goods can be done. These will allow organization t get
sustainability in turn higher competitiveness can be maintained.
To improve the internal practices. Company need to pay attention on having effectual
marketing practices so that greater efficiency can be derived. To provide demo it is required to
give training & development in turn higher skills, attributes, etc can be achieved by them to
make sure that proper utilization of resources is exerted properly (Rosnizam and et.al., 2020).
Once the employee will receive proper level of training and development to attain their roles &
responsibilities in significant pattern. Giving demo for offered products can aid in getting
differentiation as well higher level of customer satisfaction can be obtained so that proper so that
processing may be derived. Improving internal factors can be exerted by applying introducing
such factor so that launching of new products can become possible. External factors can not be
controlled by making certain changes in internal factor TESCO can become possible to derive
positive impact on internal practices through services of getting demo products.
Marketing plan
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TESCO concentrate on developing proper outcome through executing effective
marketing plan. Current organization uses print and advertising media to spread awareness
about products (What is social media marketing? 2019). TESCO operates in both domestic
and global market which require it to maintain efficiency in its operational practices so that
competitiveness can be maintained. In order to improve its internal efficiency and errors
occurring in all segment can e derived by developing and implementing suitable action plan.
Firm can sue social media platform to attract costs sensitive and quality concerned people.
Social media marketing can help firm to reduce cost and quality concerned people. On the basis
of this, it can be identified that specified marketing strategy can allow to meet mentioned
objectives.
Operations
To meet mission & objectives of TESCO, operational practices that are executed by
specified company includes several actions. The action plan to overcome barriers occurring in
internal factors include effective training & development session, implementation of quality
control system, increasing productivity by optimum utilization of resources, etc. Executing
prop[er price strategy in order to make employees able to share high potential for meeting
roles and responsibilities delegated to them (George, Walker and Monster, 2019). For this
purpose the action taken by firm fro improving organizational internal factor so that smooth
functioning of implemented strategy can be derived.
Competitors analysis
there are various competitors that operates in retail industry and offers wide range of
advantages to customers so that becomes essential for TESCO to provide differentiation service
so that higher revenue can be generated.
Financial Planning
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To met this objective of organization it is important for TESCO to pay attention on developing
appropriate financial planning so that optimum utilization of resources can be done.
Expenditures Amount Income Amount
Packing for demo products 80000 Sales 450000
training and development to employees 200000 Sponsors 500000
sales and marketing expenses 350000
Administration expenses 25000
Trainers fees 200000
Financial consultant fees 50000
Social media influencer charges 45000
950000 950000
The specified business plan will allow organization to get the ability to accomplish the
predetermined objectives within year. increasing sales, reducing inefficiency, inclining
employees potential skills knowledge, ability to satisfy customers, etc can become possible with
this innovative service.
CONCLUSION
From the above report it can be concluded that strategic management is essential for the
company to have sufficient ability to plan, organize, analyze and monitor business activities.
Present report has involved business plan that has given proper instructions and step to make
improvement in overall internal procedure so that attaining objectives can become possible. on
the basis of this, it can be interpreted that organization is required to highlight these factors so
that continuous actions to make improvement can be derived.
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REFERENCES
Books and journals
Achinas, S., and et.al., 2019. A PESTLE analysis of biofuels energy industry in
Europe. Sustainability, 11(21), p.5981.
David, F. R. and David, F. R., 2017. Strategic management concepts and cases. Pearson
Education Limited.
Duhaime, I. M., Hitt, M. A. and Lyles, M. A. 2021. Strategic Management: State of the Field
and Its Future. Oxford University Press.
Dzwigol, H., 2020. Methodological and empirical platform of triangulation in strategic
management. Academy of Strategic Management Journal, 19(4), pp.1-8.
George, B., Walker, R.M. and Monster, J., 2019. Does strategic planning improve organizational
performance? A meta‐analysis. Public Administration Review, 79(6), pp.810-819.
Grant, R. M. and Baden-Fuller, C., 2018. How to develop strategic management competency:
Reconsidering the learning goals and knowledge requirements of the core strategy
course. Academy of Management Learning & Education. 17(3). pp.322-338.
Grewatsch, S., Kennedy, S. and Bansal, P., 2021. Tackling wicked problems in strategic
management with systems thinking. Strategic Organization. p.14761270211038635.
Iqbal, Z. and Grigg, N.P., 2020. Enhancing voice of customer prioritisation in QFD by
integrating the competitor matrix. International Journal of Productivity and Performance
Management.
Li, W.S., 2018. Competitor Analysis and Accounting Model: Competitor Analysis. In Strategic
Management Accounting(pp. 99-123). Springer, Singapore.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Richards, D.W., Ahmed, A.D. and Bruce, K., 2021. Ethics in financial planning: Analysis of
ombudsman decisions using codes of ethics and fiduciary duty standards. Australian
Journal of Management, p.03128962211022568.
Rosnizam, M.R.A.B. and et.al., 2020. Market Opportunities and Challenges: A Case Study of
Tesco. Journal of the Community Development in Asia (JCDA), 3(2), pp.18-27.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Velikorossov, V. V. and et.al., 2020. Strategic management. pp.355-885
Wang, Z and et.al., 2021. Strategic management of product recovery and its environmental
impact. International Journal of Production Research. 59(20). pp.6104-6124.
Online
What is PESTLE analysis?. 2021. [Online]. Available through:
https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/
What is social media marketing? 2019. [Online]. Available through: <https://buffer.com/social-
media-marketing>
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APPENDIX
Business Model Canvas
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
 Suppliers
 Transport
providers
 Digital
analytical
providers
 Inventory
control
activities
distribution
management
 Customers
service
 Diverse
product
range
 High
quality
 Cost
effectiven
ess
 Customer
service
 Demo
offering
 Low
income
 Cost
sensitiv
e
people
like
househ
old, etcKey Resources Channels
 Brand
 Higher
financial
resources
 Storage and
distribution
patter
 Retail stores
 Social
media
 Business
based
platform
Cost Structure
Supply chain
Human resource
Revenue Streams
Retail sales
Service
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