Strategic Planning of Tesco

Strategic Planning

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 organisational vision, mission, strategy and business plans and relationship between them
.....................................................................................................................................................1
1.2 How external factor affect organisation and how changes in external environment affect
organisational strategy................................................................................................................2
1.3 How stake holder expectation influence organisation..........................................................2
TASK 2............................................................................................................................................3
2.1 Analyse the vision and mission of Tesco..............................................................................3
M1. Evaluates the impact of Tesco's vision and mission on its strategy....................................3
D1. Analyse how external factor affect organisational strategies of Tesco................................3
TASK 3............................................................................................................................................4
3.1 Explain the importance of reviewing in developing organisational strategy and business
plan..............................................................................................................................................4
3.2 Evaluates the tools of reviewing organisation strategy and business plan............................4
(M&D)1. Reviewing the current position of Tesco in its current market using appropriate
tools.............................................................................................................................................5
TASK 4............................................................................................................................................6
4.1 Strategy options for Tesco....................................................................................................6
4.2 Criteria for reviewing potential strategy option....................................................................6
M1. Apply the criteria and evaluates the option for delivering strategic direction to the Tesco 6
TASK 5............................................................................................................................................7
5.1 the stricture of a plan needed to deliver the strategy.............................................................7
5.2 How stakeholders are involved in formulation of plan.........................................................8
5.3 Process to ensure stakeholder are informed and committed to the plan...............................8
M1. Create monitoring system to ensure the successful implantation of strategic plan.............8
D1. Construct a strategic plan for Tesco.....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic planning is the management process that is used to set priorities, strengthen
operation and ensure that employee and stakeholder working on common goals. Strategic
planning designs strategic plan which defines organisational goals and also determine the ways
for accomplishing organisational goals. Tesco is multinational general merchandise retailer,
established in Welwyn garden city, United Kingdom. This company founded by jack Cohen in
1919. It has 6553 shops across the UK, India, Ireland, Malaysia, Thailand and Hungary with the
4,76,000 number of employees(Bryson, 2018). The report will present vision, mission and
strategy and business plan of Tesco and relationship between them. The study explains how
external factor affect organisation and changes in external environment affect organisational
strategies. It also evaluates the tool which can be used to review organisational strategy and
business plans.
TASK 1
1.1 organisational vision, mission, strategy and business plans and relationship between them
Vision and mission
Tesco has main vision that constant remains while continuously changes are adapted by
its business strategy and practices. Without a clear vision company may can not survive or have
lack of direction in current competitive global environment(Cassidy, 2016).
The mission of Tesco is earning trust and loyalty from customers and their colleagues and
communities.
Strategy and business plan
Tesco set out the strategies to achieve its goal being highly valued by consumer and build
long term growth. It has technological innovation strategy which produce innovative products to
develop its own label brand such F&F clothes and provides with good quality at the reasonable
price to consumers(Channon and Jalland, 2016).
The business plan of Tesco company is to make itself as a creator of highly valued brands
across the world.
This can be achieved through better relationship between business strategy and business
plan because business plan of Tesco is to established itself as a creator of highly valued brand
which can be accomplish through technological innovations, developing its own label trends

such as F&F clothes and provides consumer with good quality products at competitive
prices(Haines, 2016).
1.2 How external factor affect organisation and how changes in external environment affect
organisational strategy
Political factors : which affect the Tesco company because Tesco operates its business
across the world. The Factors involve tax rate, government policies and various
legislations(Hübner, Kuhn and Wollenburg, 2016).
Economical Factors: import and export tariffs may make difficult to run business in
other countries and in a local government there will be restriction on the kind of business
permissible in certain location.
Social Factors: Market is dynamic as people's demand is changing with new concepts
coming. Changing attitude and behaviour are major factor that can affect a business. Tesco is in
food industry and according to today's environment people choose healthy yet tasty food so the
company is order to be competitive in market start dealing in non-food items as well.
Technological Factors:It includes technological factor which affect the organisational
strategy such as technological innovation because with the development of technology, Tesco
also change its working methods and old technology to adopt new technology.
Legal Factors: Performance of Tesco is affected by the laws of the government. Food
Retailing Commission enforced Tesco to use standard pricing and the industries can not change
the prices without any notice.
Environmental Factors: Companies should consider social responsibility in their
working. These are some major changes that needed to be fulfilled by Tesco(Katsioloudes and
Abouhanian, 2016).
1.3 How stake holder expectation influence organisation
Tesco use Normative Stakeholders Theory, as this gives explanation about why
businesses should consider stakeholder viewpoint.
Stakeholder is the important part of every organisation because it supports organisation in
the achievement of organisational goals. Stakeholder of Tesco can be a customer, employee,
shareholder, suppliers and local communities.
Customer expectation can influence Tesco because these are the most important
stakeholder and the profit and loss of company based on them. Every customer expects from