Strategic Management - Strategy Evaluation for TESCO

Strategic Management
- Strategy evaluation

Table of Contents
INTRODUCTION...........................................................................................................................................3
Main Body...................................................................................................................................................3
Purpose, Vision, Mission in context of organization...............................................................................3
Evaluate competitive advantage by applying VRIO analysis..................................................................4
Using PESTLE framework to analyze external environment of selected business entity........................6
Analyze attractiveness of industry by Porter’s five forces.......................................................................8
Review organization’s strategy..............................................................................................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13

INTRODUCTION
Strategic management is application of suitable policies and strategies in order to make
optimum use of available resources. Main aim of strategic management is to get competitive
edge in market place. It is a process of setting goals, procedures with an aim to make company
more competitive. Strategic management is related with strategic evaluation, internal analysis of
organization and execution of those strategies throughout the business entity (Heino and
Tuunainen, 2018). For present report TESCO is being considered as a company. It is a well-
known company based on UK. It offers variety of items such as groceries and other general
items. It was started in 1919 by Jack Cohen. It is considered as one of the largest supermarket
chain across the world. The present study is about mission, vision and purpose of organization.
Here, external environment is analyzed with application of PESTLE analysis. Further, VRIO
framework is also applied in order to evaluate internal environment and capabilities of
organization. Competitiveness of business entity is also examined through Porter’s five forces
model. At end, the report illuminates strategies applied by organization for future betterment.
Moreover, strategic management is administration of suitable tools with an aim to attain set goals
and objectives in an efficient manner.
Main Body
Purpose, Vision, Mission in context of organization
Overview of company: TESCO is a British multinational company which offers groceries
and other general items to customers. It was established in 1919 and currently known as the third
largest retailer across the globe. The company was started in England but enhanced its presence
over the period of time. At present, TESCO is operating in nearly 11 countries. It has nearly
5000 stores globally. In addition to this, organization has also diversified in different areas such
as clothing, software, financial services, electronics and more. In addition to this, company is
listed in stock exchange of London. Diversification in different areas will help business entity in
meeting with requirements of different customers. In terms of market positioning, TESCO is
regarded as the quality products provider. According to the current scenario, company has been
shifted towards online business. They are offering products through online mode. Here, great
plunge is recorded in online sales of company. It is found that online sales add £2.8 billion in
overall sales record of organization (Paul Skeldon, 2021). TESCO is a prestigious company

which is earning significant profit. In 2020, organization earned profit of 1.7 billion pounds.
(Annual statutory operating profit or loss of Tesco in the United Kingdom (UK) and Ireland from
2014/15 to 2020/21). It is identified that strategies of respective entity are really effective which
allow it to stand in competition in an effective way.
 Mission: Mission of company is “to make better products to in order to offer value to
customers”.
 Vision: Vision of organization is “to be champion for customers by helping them to enjoy
better and quality life.”
 Purpose: TESCO is a company who value their customers thus main purpose of business
entity is to serve customers in best possible way. In this context, they offer value to
buyers by offering them quality products at affordable price.
It is analyzed that TESCO is a prestigious company which formulates significant strategies
in order to attract new customer and retain existing ones. Mission, Vision of company is also
structure by considering maximum benefit of buyers. In addition to this, managers and leaders
modify the strategies in timely manner in order to stay in competitive market place for longer
period of time.
Evaluate competitive advantage by applying VRIO analysis
In current scenario, competition has become a part of business. Each and every business
entity has to face competition. There are several strategic tools which are applied in order to
analyze the effectiveness of competition. Here, VRIO analysis is a tool that helps in analyzing
internal environment and capabilities of organization. This model is helpful in identifying
internal resources of business entity that can further use in order to get competitive edge in
market place (Capriello, 2018). In addition to this, it enables a business entity to identify its core
competency which can strengthen their position in market. TESCO is a multination company that
works in highly competitive environment. Here, it is required to maintain strong brand image in
order to ensure long term survival.
Resources Value Rareness Imitability Organization