Strategic Management: Tesco Case Study

Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LEARNING OUTCOME................................................................................................................1
1. Critical evaluation of resource capability and identification of strengths and weaknesses.....1
2. Strategic fit of the organisation................................................................................................4
3. Identification of two strategic options available to organisation.............................................6
4. Application of theoretical model for feasibility, acceptability and suitability.........................9
5. Suitability, Feasibility and acceptability analysis of Market expansion:...............................11
6. Challenges faced by organisation while implementation......................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic planning can be defined as the process of controlling, monitoring and analysing
all the operational and executional activities so that all the long term business goals could be
achieved. With the help of it a business can become highly disciplined and organised. It is
considered as a bridge between organisational performance and incentives or benefits to the
employees according to their efforts (Bryce, 2017). Main purpose of it is to outline different
decisions and actions which allows a company to attain objectives. The enterprise which is
selected for this project report is Tesco. It is one of the largest supermarkets which are executing
business all around the world and established in United Kingdom. Its headquarter is in Welwyn
Garden City, England. It was founded by Jack Cohen in year 2003.
This report covers various topics such as application of different analytical tools, review
of strategic fit, strategic options available to the organisation etc. Apart from this, application of
theoretical model to evaluate feasibility, stability and acceptability and challenges regarding
implementation are also covered under this assignment.
LEARNING OUTCOME
1. Critical evaluation of resource capability and identification of strengths and weaknesses
Tesco is one of the largest retail stores companies which are operating business all around
the world. There are some capability and resources through which individuals can get to know
about conducting activities. It is important and relevant for managers to determine ways through
which strategies are formulated for proper analysis of industry. So RBV analysis and VRIO
analysis is used.
RBV analysis
There are two different types of resources which are acquired by Tesco and all of them are
described below:
Threshold: All the resources which are required by Tesco in order to meet expectations
of clients are considered as the part of them. With the help of all of them larger market share
could be acquired because it helps to meet expectations of customers. It includes high quality
products, good services etc.
Unique resources: All the elements which are required for a business to compete in the
market and attain long term business goals are considered as unique resources. Tesco is also
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having some of these resources which includes high competitive advantage, strong marketing
activities etc.
Resources Name of
resource
Strengths Weaknesses
Threshold Good
services
Tesco always make sure that all the
services which are rendered to the
clients are good so that their
satisfaction level could be
enhanced.
In order to deliver good
services high man power is
required which creates high
cost of recruitment for the
organisation.
High quality
products
All the items which are sold by
Tesco in It retail stores have high
level of quality which helps the
organisation to attract large number
of customers.
Cost of high quality products
is very high which affect the
market share because lower
class customers are not able to
pay very high amount.
Unique Competitive
advantage
Tesco is having high level of
competitive advantage which helps
it to compete it in the market in
appropriate manner (Hambrick,
2015).
When a company is having
high competitive advantage
then it is very important for it
to remain at this level and it is
creating difficulties for Tesco
because the competitors are
trying to capture its market
share.
Strong
marketing
activities
Strong marketing activities are
beneficial for Tesco as it helps to
aware all the customers to be aware
about different products which are
sold by the company to them.
Cost of conducting marketing
activities is very high which is
creating problem of low
profitability ratio for the
company.
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