Strategic Planning of Tesco Plc- Report
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Added on 2020-02-05
Strategic Planning of Tesco Plc- Report
Added on 2020-02-05
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Strategic Planning1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................31.1 Importance of external factors affecting organization...........................................................31.2 The need and expectations of stakeholders of an organization..............................................41.3 Major challenges taking place in the external environment that will affect the strategy......42.1 Appropriate tools to analyse the effects of current business plan..........................................52.2 Review the position of an organization in its current market................................................62.3 Evaluate competitive strengths and weaknesses of Tesco current strategies........................63.1 Modelling tools to develop strategic options for organization..............................................73.2 Comparative understanding of activity from organization in the market..............................83.3 Create options to form the basis of future organizational strategy........................................84.1 Suitable structure for a strategy plan that ensures appropriate participation from allstakeholders..................................................................................................................................94.2 Criteria for reviewing potential options for a strategy plan...................................................94.3 An agreed strategy plan that include resource implications................................................105.1 Compare core organizational values with current business objectives................................105.2 Develop appropriate vision and mission statements of an organization..............................115.3 Future management objectives for Tesco PLC....................................................................125.4 Measures for evaluating a strategic plan..............................................................................126.1 Schedule for implementing a strategy plan..........................................................................136.2 Appropriate dissemination processes to gain commitment from stakeholders....................136.3 Design monitoring and evaluation systems for implementation of strategic plan...............14CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................162
INTRODUCTIONThe administration of every establishment requires to develop strategic planning forattaining the growth within the industry. In order to develop any organizational strategies, thecompany’s management is required to define their goals and target. Most of the firms areconcentrating on future planning which is the most useful for increasing their growth rate.Presently, the report focuses on gaining insight knowledge regarding the steps involved instrategic planning of Tesco PLC so that they may easily sustain in the competitive industry.Tesco is the giant firm that is operating their services within the retail industry. The report alsodiscuss the external environment that directly affect their organization as well as their businessactivities. The firm will also measures their own as well as strength and weaknesses of theircompetitors’ those are operating their activities in the retail industry. Along with this, report willalso provide an insight knowledge regarding how company will be monitoring and evaluating theimplementation of strategy plan as it gives a immense consequence on the overall brand image ofcompany. 1.1 Importance of external factors affecting organizationThe following external factors have great impact on operations and functions of Tesco:Social and Cultural Values: It comprises of varied kind of religions, lifestyles andlanguages of customers which can affect their buying behaviour. Cultural and socialconsiderations assist the Tesco to undergone with the market situations, for instance, byincreasing the production of goods and services in accordance to demands of consumers,the firm has gained trust and loyalty (Fame, 2010).Legal Issues: Government legislations and policies have direct impact on theperformance and growth of Tesco. The corporation should comply with all rules andregulations of merchandising practices so that smooth operations can be attained.Environment legislations, Employment and health and safety Act, Consumer protectionLegislations and etc. should be adhered by the retailer to enhance its business.Economic changes and Political Influences: Political and Economical factors highlyaffect the living standards and demands of products, thereby lead to enhance theopportunities to broaden its business in the emerging market. However, diversification3
and internationalization are two main strategies which should be implemented by Tescoto prevent itself from the robust changes in economy and government policies.Development in Technology: In the realm of technological advancements, Tescoenabled to come up with new ideas and approaches. It has facilitated self-servicecheckouts, bar code systems and introduced the online shopping facilities for customers.1.2 The need and expectations of stakeholders of an organizationNeed and expectations of shareholders of Tesco are stated below:Shareholders: The shareholders of Tesco expect their interests and profits in the form ofdividends (Winch, 2013). Thus, it is required to analyse their needs, so that they cancontribute significant portion to the growth of company.Customers: Consumers always seek for value of their spent money on the products andservices of Tesco, thus it is required to cater high quality commodities so thatsatisfaction level of customers can increased reach to the high extent.Employees: It is necessary for Tesco to examine the needs of employees within theworkplace, they should be provided with better working conditions, adequate pay, heathand security.Government: Tesco also contribute to the government, provide tax charges to it so thatits business can smoothly operated and expanded in other developing countries (Yao,Zhao and Meng, 2014).Suppliers: Moreover, it is also necessary to make payment to suppliers on time andcomplying with their terms and conditions. If there is good rapport between suppliers andTesco then the firm will be able to get their support in the adverse situation.1.3 Major challenges taking place in the external environment that will affect the strategyTesco is the multinational retailer which is undergoing from major economic changes ofextension of market in the competitive business world (Hrebiniak, 2013). Some major changes inthe operations of Tesco due to external environment is given below:New Entrants in the market: In the current scenario of competitive global marketplace,there are many new local supermarkets who have introduced their products and servicesat cheap rates, as a result of which customers are diverting towards those and Tesco isloosing its consumers. Moreover, the retailer has also threat from Aldi, Sainsbury and etc.4
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