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Strategic Management Assignment Solution - (Doc)

   

Added on  2020-12-29

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STRATEGICMANAGEMENT

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Company Background.................................................................................................................1SWOT Analysis of the organisation...........................................................................................1Pestle Analysis of Tesco plc.......................................................................................................3Porter's Five Forces affecting Tesco Plc.....................................................................................5Bowmen's Strategic Clock of Tesco plc......................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONStrategic management is the process by which management decides the best possiblestrategy for the organisation to achieve the organisational goal effectively and efficiently. Tescois the grocery company founded by Jack Cohen in the year 1919. Reports highlights the SWOTanalysis of the Tesco and then reports goes on to show the PESTLE analysis of the organisation.Reports then shows the implementation of Porter's five forces theory on the organisation and inthe end it shows the implementation of Bowman's strategic clock.MAIN BODYCompany BackgroundTesco is the British multinational grocery company, Founded in the year 1919 by thefounder Jack Cohen, first shop was opened in the year 1931. Tesco headquarters is based inWelwyn Garden City, Hertfordshire, England, United Kingdom. Tesco has more than total of7000 store in the eight countries across Europe and Asia. Tesco currently has shops in CzechRepublic, Hungary, Ireland, Malaysia, Poland, Slovakia, Thailand and UK. There are more than500,000 employees working for a Tesco world wide. Tesco is currently ranked 3 in the world onits gross revenue basis and ranked 9 on its revenue basis in the global grocery market. Tesco isthe leading grocery company in the UK local market with the share of 28.4% of market. Tescooffers variety of grocery product of top brands in the world to the customer in their store.SWOT Analysis of the organisationStrengthSound Financial Position: Tesco is the leading grocery retailer in UK with significant cashreserve and underdeveloped property in company name shows that Tesco has very soundfinancial position to dealt with any unconditional situation in the coming near future (Leiber,2018).Quality: Tesco offers a product of a top brands and of a good quality in their store which hashelped the Tesco to have good name of the company in the eye of consumer and investor andhelped in gaining the customer attention toward the store.Goodwill: Tesco has been awarded with the numerous of award in the past for their performancein the market, which has resulted in creating a good image of the firm in the eye of viewer andalso helped in making good goodwill of the business (Menga and et.al., 2015).1

Wider area coverage: Tesco is able to cover a wider market area as compare to the competitorwith total of 3754 store across the UK till 2018 has resulted in touching more consumer in themarket as compare to the competitor.WeaknessesLow Pricing Strategy: Due to high number of competition in the grocery retailer market, it hasforced the Tesco to adopt the low pricing strategy which has helped in gaining the customer buton the same time it has resulted in reducing the profit margin of the company.Market assessment and research: Tesco is one of the successful company in the local market buthas faced the problem of growing in the global market due to not able to assess the global marketproperly, which has resulted in departure of Tesco store from the country in the past (Gürel,2017).Decline in Profit: Tesco is over dependent on the performance of the store of UK and Europe asTesco is not able to earn that level of name in the global market which has resulted in decrease inoperating profit of the business and the price value of share was also fallen by 9% in the previousyear.OpportunitiesJoint Venture and Merger: Tesco has the opportunity to merge or joint venture with any localorganisation in the global market which can help Tesco to have a better knowledge of the cultureand market in which Tesco is looking to go. Tesco can go on with these strategy as Tesco hasvery sound financial background (Hitt, 2017).Emerging market: Tesco has the opportunity to grow the business globally by opening the storein the developing country as it can help Tesco to have a first mover advantage. For e.g. Domino'sis the well known company to start business in emerging market and now Domino's is one of themost successful company in their industry.Online business: Tesco has the opportunity to grow the business services by providing onlineshopping service system to the customer and also home delivery system as online business isgrowing sector in today's market scenario. Firms in the food and beverage industry has receiveda good respond after providing the online services to their customer (Lasserre, 2017).Threats2

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