Strategic Management: Tesco Case Study

STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Strategic planning process to determine strategy........................................................................3
Evaluation of the critical models and tools..................................................................................5
Application of these tools in Tesco.............................................................................................6
Importance of change management...........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management can be defined as the strategic approach which involves in setting
goals, evaluating competitive environment, examine internal environment and analyses
effectiveness of strategies. It is important for company because they play various role i.e.
planning, supervising, analysing, assessment of overall strategies, resources which are necessary
for a business to achieve it’s vision and mission over the time. To continues changes in business
environment requires to access overall strategies where strategic management act as assessment
management who analyses its strategies constantly so that organization gets success in business.
There is an example of Tesco company to understand role of strategic management within
business. It is a British multinational groceries company which is headquartered in Welwyn
garden city, England, UK. The brief study of the report supports to understand critical
assessment of the procedures which is used by organization to identify its strategy.
Strategic planning process to determine strategy
Strategic planning refers as a management activity which often used by organizations to better
focus on its resources, energy, implemented priorities and effectiveness of operation for
achieving targeted goals. It is vital tool for a business because it provides measurable objectives
which aids in daily decision-making process (Rothaermel, 2016). It enlists five process such as
identify strategic position, gather people and information, perform SWOT analysis, formulation
of strategic plan, execution of plan and continue monitoring performance. Tesco apply strategic
planning process to determine its strategy.
Identify strategic position
Tesco initially clarify it’s vision and mission to determine strategy. vision statement of
the Tesco is “To be the most highly valued business” by serve to customer and community in
which while they operate and establishes loyalty of customer on brand. It is long-term goal of the
company which is developed by management. While mission statement is to “We make what
matter better” or in simple mean they want to give expression of the general purpose to the all
stakeholders either they are internal or external (Stouten, Rousseau and De Cremer, 2018).
There are three values which apply by business daily basis such as no one create hardship for
customer to achieve private gain. Second value they will treat people how they want to be
treated. Tesco believes every little support can lead big different in their operation. According to

Tesco values can put its core purpose into practices which can help lead high growth in business.
By the mission, Tesco wants to gain short-term goal of the company over the period. Thus,
organization identify it’ strategic position by clarifying it’s vision and mission.
Gather people and information
When organization identify its strategic position by the help of management then
involves other staff who will involve in the plan further. To give involvement of people in the
strategic planning process by organization reason behind is to gather up to data information.
When organization has people and information then becomes easy to examine any external and
internal issues which can affect its objectives. Thus, Tesco access it’s objectives by examining
business environment issues.
Perform SWOT analysis
Tesco uses SWOT analysis to determine its strength, weakness, opportunity and threats
so that easy to develop Smart objectives. These objectives can help business to face their
capability which Tesco can use in more positive way (Gamad, 2019). The main goal to perform
SWOT analysis model within company because it supports company to lead in right direction
and towards common goals.
Formulate strategic plan
When organization identify its strategic position and develops it’s goals which can align
with business mission. In addition, organization have sets it’s SMART objectives which can help
to measure progress and goals. Thus, organization develop strategic plan to meet it’s vision over
the time.
Execute strategic plan
When organization develop strategic plan then organization involves stakeholders who
will support to convey the plan. Management describes importance of the goals and objectives
and implements plan by assigning different task between stakeholders. Even company involves
different department who perform different task to execute plan. Tesco clarify to overall