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Strategic management analysis - TESCO

   

Added on  2021-01-01

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Strategic Management

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Strategic direction that the TESCO has followed in past............................................................1TASK 2............................................................................................................................................2Appropriate model in which review consider on external environment analysis.......................2Porter's five forces analysis to analyse competitive drivers and their impact on competitiveposition of the company..............................................................................................................3Presenting the probable industry scenario facing TESCO in its existing market domain..........5TASK 3............................................................................................................................................5Presenting the strategic drift........................................................................................................5Mission and Vision statement which are aligned to the demand of marketplace.......................6Strategic capabilities...................................................................................................................6Using Business canvass Model that describe the rationale how company deliver and capturethe value......................................................................................................................................6TASK 4............................................................................................................................................8Presenting the possible strategies which TESCO should follow................................................8TASK 5..........................................................................................................................................10Resource implication of selected strategy.................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONStrategic management is about knowing the different strategies that can be implementedby managers in order to achieve objectives of the organisation (Hill, 2017). It is the branch whichdeals in development of such aims, objectives, mission and vision so that company can growmore in future and attain a different market position. In this present report TESCO has beenchosen for assessment. It is a British multinational grocery's organisation which serves in 7countries. Organisation has around 6000 supermarkets in all around the world. This presentreport will focus on strategic Direction that the TESCO has followed in the past. In addition tothis, the possible strategies that firm follow to defend its core business will also be discussed inbrief. Furthermore, internal and external factors that will affect the company will be covered indetail. TASK 1Strategic direction that the TESCO has followed in pastTESCO is a multinational company which is a retail based organisation that serves indifferent nations. It is the biggest supermarket in United Kingdom that offers variety of productsto customers. It is a customer- centric organisation which operates as per the needs oft customer.It is really hard to carry business without any vision and objective likewise, TESCO has alsodeveloped its vision that is “ We make what matters better, together”. Other than this, TESCO has achieved higher growth in past years which is more than anyother supermarket in the world. It gave tough competition to other competitors and gained 12.3per cent of £3.8 bullion from its outside sales from abroad. In Asia the company has enhanced itsperformance in the past.The supermarket chain of Tesco was now around over £ 2.5 billion inprofits. In past TESCO has developed many strategies in order to attain higher growth and marketposition. It has made a strategy that assists in growth of its overall business. These can becovered under four parts which are described below: A powerful UK core business, Non-profit, Better retailing services International expansion1

These all were the for major areas which has been focused more on. Company has gainedmajor benefits by concentrating on keeping its prices low so that consumers can get higherbenefits and sales of the organisation can be increased. Services are being offered in the bestpossible way. Along with this, TESCO has given people good saving offers which encouragedthem to buy more. TESCO has developed its property market in past with its self-advertising website. It hasalso specialisation in food market and along with this it has developed its business in differentareas as well. Major areas of business of TESCO were electronic items, Music system and manymore. In last five years TESCO has changed its strategies and has controlled 30% market ingroceries in entire United Kingdom. This all expansion has helped the organisation in growing toa great extent. Different strategies has benefited the company in majority of its expansion in pastyears. TASK 2Appropriate model in which review consider on external environment analysisTesco is multinational business which deals in different areas of the world. With thisconsideration, following elements of external environment mainly create impact on overalleffectiveness:Political factors: As Tesco operates in different areas of the world. Therefore, globalpolitical factors greatly impact performance of the business. It includes taxes, acts oflegislation, stability in the country, etc. Ongoing financial instability in the world alsoencourages retailers to create jobs for the domestic population (Rahman, 2016). Hence,Tesco plays its part to create employment opportunities which increases demand of itsproducts and diversify workforce as well. Economic factors: These factors are main point of concern for the chosen business as itis more likely towards leverage costs, demand, profits and prices. As a result, companymust be aware of any changes in policies such as changes in taxation and other factorsthat affect accessibility of finance. In addition to this, it can be stated thatinternationalisation and diversification are successful key strategies that pursued in thebusiness over the years. This is the major reason for getting successful results atworkplace. Moreover, due to decline in disposable income level, household incomes, the2

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