Strategic Management of Tesco plc: Analysis and Evaluation

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1 ...........................................................................................................................................3
The strategic Direction that the company has followed in the past and the way in which
strategic thinking has developed within the past 5 years.......................................................3
TASK 2 ...........................................................................................................................................5
PESTLE ANALYSIS.............................................................................................................5
PORTER'S FIVE FORCE MODEL.......................................................................................6
INDUSTRY SCENARIO.......................................................................................................7
TASK 3 ...........................................................................................................................................7
The extent to which the company is facing strategic drift......................................................7
Mission and Vision.................................................................................................................8
Strategic Capabilities..............................................................................................................8
Business Canvas Model..........................................................................................................9
TASK 4..........................................................................................................................................11
Porter's Generic Strategies Model........................................................................................11
Corporate Direction strategy model.....................................................................................12
TASK 5 .........................................................................................................................................14
Evaluation and implementation of model in terms of resources..........................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
A business with long term objectives needs a strategic direction to attain those goals with
focused efforts that will help in gaining competitive advantage. Applying strategic management
within the organisation help the business to survive and thrive (Makadok, Burton and Barney,
2018). Strategic management is the administration of the resources of the organisation that
facilitates in achieving the goals and objectives of the organisation. The strategic management
involves several activities such as setting objectives, analysing internal and external
environment, recognising competitive environment and evaluation of strategies. Basically
strategic management develop a plan with overall direction to achieve strategic goals and to gain
competitive edge. The present report is the study of strategic management of multinational
British organisation “Tesco plc”. The Tesco plc is the leading grocery and general trade good
retailer headquartered in Welwyn Garden city, England. The present report will discuss the
strategic direction of the company. It external and competitive analysis. The report will also
discuss the internal environment and capabilities using the Canvas model. At last report will
show the strategy to defend the core of business and the implementation of the above models and
analysis.
MAIN BODY
TASK 1
The strategic Direction that the company has followed in the past and the way in which strategic
thinking has developed within the past 5 years
According to the, (A Strategic Analysis Of Tesco, 2021) Tesco is the leading British
multinational organisation that has been strategically upholding itself in the competitive business
environment of UK. In Tesco, at organisational level the three segments of strategy was used in
past i.e. corporate level strategy, business level strategy and operational strategy to control the
management. The marketing strategy of the Tesco has remained consistent from last few decades
because the outstanding marketing strategy has always foster the growth of the Tesco and

allowed the business of Tesco to expand the scope and also to expand itself in the
international market. The strategic direction of the Tesco in the past has been towards the
growth the development and are focused over the non food, international commodity and the
retail service. The strategies that Tesco has been using are a 20 years old but is useful to the
company in providing the strategic competitive advantage.
The last 5 years strategic thinking and development of the Tesco is:
According to the (16-tesco-annual-report-2017.pdf,), In 2017 the company has environment
strategy that target five key areas that are climate, forest, marine, farmlands and freshwater to
drive the improvement in activities and to reduce the wastage of such natural resources. The
company has six strategic drivers i.e. A differentiated brand, reduction in operating cost by
Euro1.5bn, Generation of cash from operation, innovation, Maximise the value from property
and maximise the mix to achieve a 3.5%-4.0% Group Margin. The innovation strategy of the
Tesco has lead to the insight and expertise of product, customer and channel capability.
In 2018 the company has the delight merger and has two new directors on the board. With the
strategic direction the management team of the Tesco has a exceptional operating growth of
28.4%. some of the simplified changes in the business has also increased the colleagues
engagement. In 2018 there is the strategic merger of Tesco and Booker business that has allowed
a retailer and wholesaler to bring together their expertise to access new opportunities of
development and growth. There is also improvement in the customer feedback which reflects the
customer service of Tesco worker is getting better everyday (Agwu, 2018). The company came
up with new Brand Jack Cohen has a great tasting food for customers and also at lowest price.
In 2019 November the hourly paid of UK store workers has increased by 10.5
%. Also the suppliers relationship has helped the company to develop 1800 products of new
brand Jack. Also company in 2019 has celebrated the 100 years of Tesco.
In June 2020 the company has various areas of progress through its growth and development
strategy such as company has model of opening of 150 new stores in UK over next three years.
To communicate better with customers the company also has launched the club card plus service
for the loyalty of UK customers. Also the company has started serving as the largest plant based
food making its easy for veganism and dietary growing customer trends.
In 2021 the companies strategic report has analysed that their business model are serving
shoppers better and also creating the value for stakeholders (Vitolla, Rubino and Garzoni, 2017.