Strategic Management Assignment : Tesco

Added on - 24 Apr 2021

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Running head: STRATEGIC MANAGEMENTStrategic ManagementName of the StudentName of the UniversityAuthor Note
1STRATEGIC MANAGEMENTTable of ContentsCompany 1: Tesco...........................................................................................................................2Financial Performance.....................................................................................................................2Business Model and Portfolio Analysis...........................................................................................4Issues and challenges of Tesco........................................................................................................7BCG Matrix.....................................................................................................................................8Competitive Environment Application............................................................................................9Company 2: Samsung....................................................................................................................13Business Model and Portfolio Analysis.........................................................................................15Issues and challenges faced by Samsung.......................................................................................18BCG Matrix...................................................................................................................................19Competitive Environment Application..........................................................................................20References......................................................................................................................................24
2STRATEGIC MANAGEMENTCompany 1: TescoTesco is considered to be one of the largest multinational grocery and generalmerchandise stores in the United Kingdom. It was founded in the year 1919. The headquarters ofthis retail store is situated in Hertfordshire (Tesco.com. 2018). If the aspect of profits is takeninto considerationFinancial PerformanceTesco has been a growing entity since the last few years and has adopted variousstrategies to strengthen the core business and venture into the new markets. Through a variety ofstrategies like international sourcing, discounts and club card they have been able to maintainleverage and a sustained growth.The company has observed a decline in the revenue of thecompany and it has decreased by almost 17% n 2016 as compared to 2015 and then increased by3.7% in 2017. As for the Gross profit, it has been increasingly steadily over the past few yearsafter a negative dip in 2015.The financial statements of the firm suggest that the company has been incurring hugefinancial expenses which tend to decrease its net profit.
3STRATEGIC MANAGEMENT20172016201520142013(10,000)010,00020,00030,00040,00050,00060,00070,000TESCO Financial Trend 2013-2017( Amount in £m)Axis Title20172016201520142013-12-10-8-6-4-202468TescoGross MarginNet MarginThe figure given in the next section reflects on the liquidity and Profitability Ratios of TescoPLC for the year 2013-2017 (Source: Morning star. in 2018 and Nasdaq.com 2018).
4STRATEGIC MANAGEMENT20172016201520142013-5-4-3-2-1012Current RatioQuick RatioDebt Equity RatioYear and Ratios20172016201520142013Gross Margin10.3796710.54642-6.7818412.6185913.10286Operating Margin1.8187671.987651-9.299344.1395913.756742Pre-Tax Margin0.2593130.374539-10.2373.554293.244172Net Profit Margin-0.096570.239186-9.257591.5261890.037851Business Model and Portfolio AnalysisThe given charts represent the information about the business model of Tesco and theMarket share and revenue generated from that
5STRATEGIC MANAGEMENT67%33%Tesco Business ModelTesco Business ModelFranchiseeCompany owned28%72%Revenue by Buisness Model12Chart data sourced from (Morningstar.in 2018)It can be reflected from the above charts that the business model of Tesco is mainlydivided into Franchise based model and company owned stores. However, as a matter of fact, thecompany earns higher revenue from its owned companies rather than the franchise ones.
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