Comparison of Approaches to Strategic Planning

STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
SECTION 1.....................................................................................................................................3
Comparison of Approaches to Strategic Planning.......................................................................3
SECTION 2.....................................................................................................................................6
Role of Core Competence............................................................................................................6
SWOT Analysis...........................................................................................................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Strategies play a significant role in every organization whether small or large because each
company wants to increase its sales and profit in order to boost itself in the emerging markets.
Strategies gives direction to the employees in order to achieve the goals. The company faces
uncertainty and complexity in the process to formulate, develop and implement the strategies.
Tesco is one of the well-known established group of retailers dealing in the food and non-food
products making it third largest in the world. It performs its operations in many other countries
along with the headquarter country UK (Bettley and Horrocks, 2018). It is dealing in many
products like books, clothing, furniture, toys, petrol, telecom, financial and internet services.
The report below will compare the prescriptive and the emergent approaches to strategies
along with contrasting its applications. It will also give a detailed information on the core
competence in order to gain competitive advantage. It will be followed by performing the SWOT
analysis in terms of strategic management. Two models or approaches will be used to examine
the effect of environment on the competitive position along with mentioning the benefits and
limitations. the report will be concluded by mentioning the benefits, risks and cost in order to
bring innovation in the company.
SECTION 1
Comparison of Approaches to Strategic Planning
According to Coffie and Blankson (2018), the Strategies provide the direction to the
employees in order to gain long term benefits of Competitive Advantage, expectations of Diverse
Stakeholders and the dynamic business environment. The Strategic Planning is done by doing the
complete research of the internal and external environment which can be done using two
following approaches:
Prescriptive Approach
This approach towards strategic planning mainly focuses on the goals, vision,
mission and the objectives of the company. The strategies are planned by analysing the external
environment and the performance of the company. These are made by examining the intentions
and priorities of the top management then only the plan is implemented by passing through the
successive layers of the company.
3