STRATEGIC MANAGEMENT INTRODUCTION.3 MAINBODY.3 PART 1.3 STRATEGIC MANAGEMENT INTRODUCTION.3 PART 1.3 STRATEGIC MANAGEMENT INTRODUCTION.3 PART 1.3 STRATEGIC MANAGEMENT INTRODUCTION

STRATEGICMANAGEMENT INTRODUCTION .3 MAINBODY.3 PART 1 .3 Determine recent economic, social, political or technological trends that significantly affects company 3 Staffing strengths and staffing weakness and two examples in the organisation .4 Explain with example of market penetrations, market development & product development along with strategies 5 In BCG matrix would question mark quadrant or cash cow quadrant be more desirable? If not then determine the missing component & frame an ideal mission statement for company 8 SWOT

STRATEGIC-
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY ...................................................................................................................................3
PART 1 ...........................................................................................................................................3
Determine recent economic, social, political or technological trends that significantly affects
company......................................................................................................................................3
Staffing strengths and staffing weakness and two examples in the organisation.....................4
Explain with example of market penetrations, market development & product development
along with strategies....................................................................................................................5
In BCG matrix would question mark quadrant or cash cow quadrant be more desirable?
Explain four limitation of BCG matrix.......................................................................................6
If you owned or opened three restaurants after graduations, which would be the viable
organisational structure s functional or divisional? Why?..........................................................8
PART 2 ...........................................................................................................................................8
Determine mission and vision of selected firm and analyse its 9 components of mission are
fulfilled or not. If not then determine the missing component & frame an ideal mission
statement for company................................................................................................................8
SWOT analysis of Tesco company.............................................................................................9
Determine short, medium and long term objective of company...............................................11
Strategies to be implemented in order to accomplish the above mentioned objectives............12
Potential challenges while implementing all suggested strategies............................................13
CONCLUSION..............................................................................................................................13
.......................................................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Strategic management is ongoing process which includes planning, monitoring, analysis
and assessment of all essential for a company in order to meet goal or objective of company.
Changes in business environment will require company to constantly assess their strategies so
that they will able to gain achieve success (Carayannis, 2018). In order to explore all term that
are related with the strategic management a company is selected for the better understanding and
that company is Tesco PLC. Which is a British multinational groceries company. They are the
third largest retailer across the world. In this present report discussion about PESTLE, SWOT,
BCG along with many other models is carried out as all these are relies on strategies.
MAINBODY
PART 1
Determine recent economic, social, political or technological trends that significantly affects
company
The aim of every business organisation is to run their operation smoothly by considering
all business environmental factors as it includes various external and internal component that
may hurdle the operation of company. In relevance to this some factors that hampers the
operation of Tesco company are as follows:
Political: It includes government supports, provides, enhancing skills of working
populations could be that factors which may hamper the performance of Tesco company.
Government support which has creates routes that can do down (Okumus and et.al., 2019).
Direct or indirect support of government means Fiscal policy which is connected with the tax,
vat and corporations tax. For instance if Tesco company took loan from governments which is
approximately 1000 euro with interest 5%. then they have to pay 1150 euro. The level of
taxations changing means Tesco have to pay tax to government so that governments could
provide services foe general public.
Economical: Tesco is a big retailer firm which has expands its business line from food to
toiletries, households clothing and electronic. In which economic factors affects the profitability
and product cost of company. Unemployment is one economic factor which majorly affects
profitability of company as it is not in controllable and it hinders the overall performance in both
local and international markets. Other economic factors that hampers operation of Tesco are

demand & supply, competition, labour cost, market collapse, innovation, threat of substitution
are economic factors as the market shares of this firm is reduces due to advancement in
technologies it has been analyse that threat of substitution is major economic factors which
creates lost of negativity for Tesco
Social: There are many social factors which affects activities of Tesco. Some of social
factors are birth rates, gender, education& skills, household income, religions, attitudes to male
and female workers (Bryce, 2017). For instance. The birth rate is continuously increases which
give opportunity to them for selling children toys or product in order to open a new market
which is long run and that eventually creates more profit. Along with this they are also focus on
educations for this they sell school uniforms for children of primary school. Religious could also
affects the function of Tesco company as an incident was evolved the religion of “Jedi” when a
Jedi church was founded, it thrown out of Tesco in order to refuse to remove his hood.
Technological: Advancement in technologies majorly affects business activities of firm
for this it is vital for Tesco to keep up with changing technology. Tesco has been use various
aspects of retailing and become successful too. Online shopping, social media promotions are the
parts that may influence more consumers by offering technical benefits. They have recently
announced that they will pair up with Amazon Go in order to create new technology for ashier
less billing. This aids consumers to saves time by evading long queues this reduces carbon
footprint too.
Staffing strengths and staffing weakness and two examples in the organisation
Staffing is a process in the management for the selection of the best candidates and appoint
them for a particular job profile. By this way utilizing their skills and provide them job training.
This process help to manage human resources and not financial resources. Staffing is the process
to maintain human relationship (Peppard and Ward, 2016). Staffing have some basic functions
like manpower planning, selection of employees, training and counselling and evaluate
performance of the employees, safety and health, maintain healthy relationship, make suitable
compensation policies.
Strength and weakness of stuffing
Productivity of an organization depends on managing proper staffing level. Their are
several strength to use the staffing in the organization such as

 Identify needs – Help to identify the company needs and it is a important to make staff
plan . It helps to identify positions according to meet the responsibilities. By proper
staffing, work is completed with effectiveness and helps to train the current employees.
 Waste reduction - By proper staffing, employees able to perform well their duties and
responsibilities.
 Customer focus- To stand in the market, need to attract the customers. With staff planing
it is possible to complete customer needs in well manner. If staffing is inadequate than it
is not possible to meet the customers needs and due to this customer is not satisfied which
impact the business.
 Consideration – Not proper staffing plan impacts the business. Due to this employees not
able to understand the changes in the business policies and employees don't have time to
learn new things. Due to this, employees left work and no motivation to achieve the
company success.
There are two examples of companies to understand the strength and weakness of staffing
HSBC Holdings: HSBC is a banking and financial services . In staffing, it has several
strength like better work culture, good management, balance life, internal opportunities and carer
progression. In HSBC staffing plan also have some weakness such as less support of the team,
boss not care about employees.
Prudential public limited company: It is provider of insurance products like life and
health insurance. This company staffing process is well to reach the target market. Due to strong
online presence of it's staff able to make positive mark in the market and also make good
relationships with customers (Tonelli and Cristoni, 2018). It's weakness is less expenditure in
research activities which weak the staff performance due to lack of knowledge in international
market. Organisation weakness have negative impact on stuffing and due to this not able to
achieve the targets.
Explain with example of market penetrations, market development & product development along
with strategies.
Market penetration: This strategy of expansion mainly focuses on current product and
current market for the enhancement of market shares. It requires strong execution in pricing,
promotions and distribution for the growth of market shares. With the help of these factors
company will able to achieved development or success in expansion. In relevance to this Under

Armour is the best example of a company which gain success in market penetrations. This
company sells performance apparel and in recent years this has outshine Adidas in order to
become number two athletic- wear provider in the U.S. Now their main focus is selling athletic
foot wear, clothing and accessories and by this strategy they will able to capture a leadership
place in market ( McKiernan, 2017). They effectively develop inspiring advertisements strategy
for males and females athletes in order to grab more peoples.
Market development: This strategy relies to use existing product in order to capture new
market. For instance Poached jobs hospitality company chose market development strategy in
order to increase market shares. They mainly carries out this strategy on the basis of demography
segment. When they enter new market with the main aim of owning market and becoming hiring
solutions for every restaurants & hotels in region (Dzwigol, 2020). They initially use Seattle and
Portland to refine a market entry strategy for their product and then took on larger market like
San Francisco and Chicago. In 2014 , they entered into new york city and focus on growth and
success in that single market for building capability that would enables it to moves into other
geographic regions. So this strategy allows Poached job to get success in execution of market
development strategy.
Product development: This expansion strategy emphasis on provision of new product
that can be sold in existing markets. In relevance to this Nissan company was the first which
commits towards mass production of electric vehicles, they made their good image at market by
launching Nissan leaf. This was the zero emission leaf car that would appeal to environment
minded consumers who have major concerned about climate changes with the arise of oil price.
They saw that their electric vehicle is very much demanded in market due to to lower cost and
for those consumer who are cost conscious as well as who wants to save fuel expenses (Hill,
2017). Now they are the worlds top selling, highway- legal, plug in electric car. This strategy
enables them to move into leadership position among EV manufacturers.
In BCG matrix would question mark quadrant or cash cow quadrant be more desirable? Explain
four limitation of BCG matrix.
BCG portfolio management is based on market shares and market growth. It consist four
quadrants and two axis of market shares and market growth. In which company placed their
product in BCG matrix of provided four categories in portfolio of company.

Stars ( high market shares, high growth) stars are using for large amount of cash. Stars
are the leaders of business. Stars are frequently balance the net cash flow. So it needs attempts to
hold market shares in stars as it rewards will be cash cow if market shares will kept.
Cash cow( low growth, high market shares) in this profit and cash need to be high
because of low growth so investment need to be low (Hanson and et.al., 2016). They are the
foundation of company and are often stars of yesterday.
Dogs ( low growth, low market shares) are avoided and minimizes the number of dogs
in company. It watch out for expensive rescue plan. Dogs delivered cash otherwise they must be
liquidated.
Question mark (high growth, low market shares), from above it is worst cash
characteristic of all, as it have high cash demands and generates low returns because of low
market shares. If market shares remain unchanged then it will simple assimilate huge amount of
cash.
so from above discussion it has been analysed that question market would not be viable or
desirable for the company but cash cow would be as vial for company as in this need of cash is
higher because of low growth.
Limitation of BCG matrix
 BCG may not reflect the true nature of business as it only classify business as low and
high but not medium.
 Market is not clearly defined in this model.

 High market shares does not always leads to high market shares. There is involvement of
high cost also with the high market shares (Baumgartner and Rauter, 2017).
 Growth rate and relative market shares are not the indicators of profitability. This models
ignores and overlooks other indicators of profitability.
If you owned or opened three restaurants after graduations, which would be the viable
organisational structure s functional or divisional? Why?
Functional structure: It tends to division of organisation into sub departments on the
basis of their function. For instance CEO, CFO, sales department, finance departments and so on
are division of company.
Divisional structure: This is a type of organisational structure in which individuals of
company are divided into groups of division and each division consist all necessary resources
and functions within it in order to support product line or geography (Hitt, Ireland and
Hoskisson, 2016). For instance Finance, It etc.
Restaurant industry incorporate diverse employee structure due to the varying size of
companies from one location to large chain restaurants. According to my viewpoint, if I will
open three restaurants after graduations then all three will be smaller restaurants and will be at
different location due to which I will go for both divisional and functional organisational
structure in order to operates business effectively. As in functional all roles and task will be
delegated to all an individual or group of company and I will opted all three restaurants will be at
different location for that I need to be divide division based on geography and market served. So
I would like to go with mix divisional and functional structure. In which the management team
will be structured divisionally, while marketing may structured on the basis of functional.
PART 2
Determine mission and vision of selected firm and analyse its 9 components of mission are
fulfilled or not. If not then determine the missing component & frame an ideal mission
statement for company
Mission and vision of company : To broaden the scope of business in order to enable it
for delivering the strong sustainable long term growth(5) by following consumer(1) into large
expanding markets at home and new markets of abroad(3) is vision of Tesco company where as
mission is to create values for consumers(8) in order to earn lifetime loyalty (7).

Nine components of mission statements are as follows:
1. Consumers
2. Product or services
3. Market
4. Technology
5. Concern for growth & profitability
6. Philosophy
7. Self concept
8. Concern for public image
9. Concern for employee (Albers and et.al., 2017).
So from above mentioned mission and vision it has been found that their vision is poor as
it is lacking in four components which are product or services, technology, philosophy and
concerns of employee.
Ideal mission for Tesco company could be to broaden the scope of business in order to
enable it for delivering the strong sustainable long term growth(5) by following consumer(1) into
large expanding markets of grocery product(2) at home and new markets of abroad(3) with the
help of new emerging technologies(4) as well as by engaging talented and passionate
candidate(9) is vision of Tesco company where as mission is to create values for consumers(8) in
order to earn lifetime loyalty (7) who believes there is always a better way(6).
SWOT analysis of Tesco company.
Tesco company is as British multinational grocery & retailer corporation. This is one of
the to leading company in the world. They operates their business across 14 counties and for that
they need to be careful while operating their operation at various locations (Moutinho and
Vargas-Sanchez, 2018). With the help of SWOT analysis company will able to measure it
strength, weakness along with threat and opportunity. As strength and weakness are internal
factors whereas threat and opportunity is external factors. An analysis of SWOT in context of
Tesco is underneath:
Strength:
 Tesco company captured the biggest market of Britain in term of revenue as it is the
largest grocery stores and supermarkets in UK. The annual revenue generation of this

firm in 2019 is about 63,911 million pounds for both UK and Ireland combined. By
which annual profit has risen by 11 %.
 Tesco company is one of the leading supermarket and grocery retail store in UK. They
become popular in Ireland peoples along with Britain. They holds maximum market
shares of around 27%.
 performance of Tesco company is not limited as they own many awards like British
favourite supermarket, drink award etc.
 They operates their business at global with various product line. Total number of
supermarkets and grocery retail stores that Tesco company has around 6800 worldwide
(Barbosa, Castañeda-Ayarza and Ferreira, 2020).
 Tesco firm has been updating and adopting new technologies in the file of M- commerce
such as advanced features mobile app for the online shoppers they launched RFID
barcode systems that automatically counts the products of shoppers.
Weakness:
 Selected firm expanded its business in japan and US but they shut down their all stores
because they could not export operations and executes their plan effectively offshores.
 Tesco changes their club card without revealing to consumers, by which they get furious
and angry which is not a good sign for company as consumer are switching to other
brands.
 In 2017, Tesco shows less profit in accounting ledgers in order to pay less tax and due to
they was caught and faces some lawsuits and news damages the reputation of company.
Opportunity:
 Tesco introduces new store with the name of Jacks successfully, now they have
opportunity to expand its as it has potential to grow and compete with low cost rivalries
such as Lidl & Aldi.
 As Tesco has already diversified in many countries but there are some emerging market
are available such as Turkey, Indonesia, south Korea etc. These market have great
potential to grow.
 Tesco company have opportunities to partner up with other brands in order to pursuit the
growth. The aim is to come up with the better product & service to facilities consumer
better.

 Tesco company has their own mobile application for online shopping for this they need to
upgrade their app and features of home delivery this would attract more consumers
towards Tesco.
 There are many Tesco stores in some countries where their performance is not good and
if they pairing up with local business in order to get knowledge about business of local
market then their performance will be increased and the graph will be up wards. Hence
they can take advantage of this as an opportunity (Morden, 2016).
Threat
 Tesco marketers launched a Christmas aids and that was considered as a funny but some
peoples get offended by this and they said it was disrespectful and direct attack on
Christian faith and this become a great threat for Tesco company as they will not be able
to gain the trust and loyalty of consumers.
 National economic factors such as taxations, credit government, regulations, rules and
that are the serious threat towards growth & performance of company in some areas of
nations. In order to combat with all theses threat company needs to be creative.
 Competition edge from other rivalries like Walmart, Carrefour etc.
Determine short, medium and long term objective of company
Short term goal: It refers to accomplishment of pre set planned with in 12 month or less
than it. In context of selected firm their short term goal is to In context of Tesco their long term
objective is to develop a large internet shopping sites within 12 months or less than it.
Medium term business goal: Medium term goal is a work as a bridge in order to fill the
gap between daily activity and long term vision that a company possess. For the start-up business
this goal is differ to that a company that have existed longer than 50 years so Tesco company is
more than 50 year old firm and they considered 3 years to be medium term for the full filament
of objective (Deephouse, Gardberg and Newburry, 2019). So the medium term goal of TESCO
company is to introduces more healthy eating food with wide variety of grocery they supply and
the target time for this is below 3 years.
long term business goal: long term objective mean a company wish to achieved its pre
defined goal within five year or more. It includes specific improvement in strategies of company
as well as in technology, ROI, employee relations etc. In relevance to this, the main and long
term objective of Tesco company is to increase profitability with more than 11 % so that their

productivity and market shares of firm will also raised and they wish to achieve this target within
5 years.
Strategies to be implemented in order to accomplish the above mentioned objectives
The term strategies refers to setting of goal and priorities and the determination of path in
order to accomplish the pre defined goal of company. This is basically a direction path of
company for the successful execution of pre set goal of objective of company either long,
medium or short. In relevance to attaining the above mentioned all goal there are some strategies
highlighted as follows:
 In order to accomplish the goal of enhancement of profitability of company with more
than 11%, company needs to increase its sales by minimizing the prices or by cutting the
cost of products, or by expanding stores sell, by building more new stores in order to grab
more consumers. By all these they will able to attain their goal of enhancement of
profitability. Additionally, they have opportunity to expands its business in new nations
like Turkey, Indonesia, south Korea for the enhancement of market shares.
 Other objective is to introduced more healthy eating products into wide range of grocery
where they supply (Bell and et.al., 2018). By this they will able to attract those
consumers who are diet conscious. They are aiming to create wide range of healthy
eating foods from organic turkeys by considering the health of peoples as well as to
healthy living ready meals.
 The short term goal of Tesco company is to create a large internet shopping sites in order
to provide grocery, electronic and clothing goods along with various number of other
services online. By which they will able to develop the shopping experience of
consumers. If they will able to do this then they may attract many more customers which
aids them to achieve objective one. This aids them to achieve objective one because by
attracting new consumers that are unable to shop in stores as now a days people are
concerns about their health and safety due to pandemic situation. With the help of
effective technology like m-commerce they will able to create online sites easily.
 By pairing up with the local business at local market where they are not performing well
could be another opportunity or act as strategy for Tesco company in order to understand
the business market of local areas by which they will able to increase their market share
(Ketchen and Craighead, 2020).

 By adopting some more innovation and technologies like RFID barcode system, they will
able to attain their pre defined goal of attraction of more peoples for inline shopping.
Potential challenges while implementing all suggested strategies.
Weak strategy: For the successful execution of plan it is vital to create a road map with
broad buy in and narrowed focus. So if any strategy will go wrong at any point then with the help
of road map entities of company will get awareness about that, if they will not develop that and
their strategy is weak that time they may be face challenges in implementation of strategy.
Ineffective training: in order to adopt technology and innovation it is important for
company to offer training and development sessions to their employees then only they will able
to perform well if it in not presented then it might be chances of failure of adoption of new
technologies.
Lack of communication: If the selected company have lack of communication and have
less contacts in local areas then they will not be able to pair up with the local business marketers
Due to this it is not possible for them to improve their performance in local areas (Ansoff and
et.al., 2018).
CONCLUSION
From above discussed report it has been analysed that for the successful execution of pre
defined goal of company it is vital to make effective strategies & plan along with roadmap then
only company will able to accomplish its pre defined goal. Additional for the expansion of
business it is critical to address all factors of environment which possess power to influence or
hurdle the performance of company. So with the help of various tool such as SWOT analysis,
Pestle analysis, BCG matrix company will able to determine impacts of internal and external
factors. As well as with the help of Ansoff matrix company will successfully determine the
opportunity of growth.
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