Strategic Planning in Tesco: A Critical Assessment of Internal and External Environment

Business Management
BMP6002 Strategic Management
Strategic Planning
Submitted to: Dr abc
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Contents
Introduction 3
Definition of strategic management 3
A critical assessment of the process used by organisations to
determine their strategy 4
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy 5
A review of an organisation’s strategic plan (Business Plan),
providing an action plan for the organisation on the basis of a
change in either the internal OR external environment. (The
Business Plan is included as an Appendix) 9
Conclusion 11
References 12
Appendix 13
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Introduction
Strategic management involves the formation and execution of objectives and
achieves the goals on behalf of stakeholders or owners (Afanasieva and et. al.,
2020). This includes the process of achieving objectives which makes the company
more competitive in nature. It includes the use of human resources and strategies in
efficient manner to achieve organisational goals. Strategic planning provides the
proper guidance and regulations for implementing decisions such as hiring process,
developing new techniques for development of company in market. Tesco is t he
chosen company for this report (Ansoff and et. al., 2018). Tesco company was
founded in the year 1919, 103 years ago by Jack Cohen. Company has its main
office in Welwyn Garden City, Hertfordshire, England, UK. Tesco is British
multinational company with general merchandiser in London. This report includes the
proper meaning of strategic management and have process of assessment in Tesco
company to determine strategic management. This report also evaluates the internal
and external analysis of environment on Tesco company with using relevant models.
At last, it includes the business plan that will help company to implement the change
detected during external environment analysis.
Definition of strategic management
Strategic management is the ongoing functions of company such as planning,
analysing, evaluating and assessing all decisions that organisation needs to fulfil
their objectives (Cui, Allan and Lin, 2019). Strategic management was developed to
achieve the organisational goals in competitive and dynamic market. It includes the
process or developing plans and strategies to become more efficient and effective in
market full of competition. The term strategic management is based on the
companies structure, culture, operations and skills of human resources. Tesco's
strategic management help them in better understanding the concept of companies
formation and their goals and missions. These strategic planning in Tesco company
help them in making decisions and initiates new goals according to the external
environment needs (Henry, 2021). It includes the proper evaluation of the internal as
well as external environment which help in building strategies according to the future
requirement in business. Strategic management is necessary for all types of
companies despite of their sizes, roles and profit generation. With the help of this
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term strategic management is beneficial for companies to work in direction to
achieve their goals. It defines the each step involved in the process of achieving
success in competitive market with full of rivalries. Tesco has used the various
strategies to sustain position in the market with strong brand value. Tesco provides
the customers to shop at one stop, which gives them advantage of company to
generate more revenue . Tesco also offers the advantage of good pricing strategy to
its customers over its competitors in market with same product serving. Tesco also
have many more strategies for sustainable growth and also provides the awareness
about the companies scope and future. Strategies has been implemented by the
managers of Tesco after analysing the external as well as internal environment to
get prepared for the future challenges and growth opportunities. Strategic
management plays important role in accomplishing the objectives set by higher
authorities. Tesco is now planning to develop their technological software's to secure
data regarding customers and investors in efficient way.
A critical assessment of the process used by
organisations to determine their strategy
Strategic management process plays vital role in the success of any company
(Hitt, Ireland and Hoskisson, 2019). Every company needs to form an effective
strategies in order to achieve the desired goals set by management authority. Tesco
also need the proper strategic management process to function smoothly and work
effectively in direction to gain profit in competitive market. Tesco has analysed the
external environment in market and after that implemented the strategies
accordingly. Some of the factors that has been discussed while determining the
strategies for Tesco are -
Organisational goals – This step involves the purpose behind companies
existence. Tesco has objective to serve customers, communities and planet a better
every day. Tesco works in a direction which provides the fulfilment of these
objectives in long terms as well for short terms also.
Scanning of environment – This term includes the collecting process of
relevant information and resources for the purpose of strategy implementation in
business. Tesco with the help of their effective managers will help them in analysing
the external and internal factors which had impact on the function of business
operations (Kozhevina and et. al., 2020). With the help of evaluating external factors,
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