Strategic Planning for Tesco: Process, Impact of Internal and External Environment, and Organisational Plan

This report discusses the strategic planning process, impact of internal and external environment, and organisational plan for Tesco, the largest supermarket and grocery retailer in the UK. It explains the concept of strategic management, the process used by business enterprises to ascertain their strategy, and the evaluation of the impact of internal and external environmental variation on organisational strategy. The report also discusses Tesco's organisational strategic plan and how it uses cost leadership as its business strategy to achieve growth and success.

Strategic Planning

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Explain the strategic management .........................................................................................1
Explain the process used by business enterprise to ascertain their strategy...........................2
Evaluation of the impact of internal and external environmental variation on organisational
strategy...................................................................................................................................3
Discuss the organisational strategic plan................................................................................6
CONCLUSION................................................................................................................................6
Appendix .........................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The strategic planning is defined as the procedure in which the leaders of the business
organisation specify their vision for the future and determine their goals and objectives of the
business enterprise. This is the process which includes the establishment of the sequence in
which the goals which has been determined realized so that the business enterprise is able to
reach its stated vision. It is very important for every business organisation to plan which includes
from mid term to long term goals. This plays a important role in every business organisation in
order to achieve growth and success and the employees can work in an effective manner. The
organization which is taken into account for this report is Tesco which is the multinational
retailer. The company is situated in London, United Kingdom. It is the largest supermarket and
grocery retailer. The company was established in 1919 by John Cohen. (Elliott-Engel, Westfall-
Rudd, and Corkins, 2021). This report will include various topic such as definition of strategic
management, process used by organisation to determine their strategy, internal and external
environment and its impact on strategy and at last a strategic plan.
MAIN BODY
Explain the strategic management
The strategic management is undefined as the planned use of the business organisation
resources in order to reach its goals and objectives in an effective and efficient manner. The
strategic management requires the tonguing evaluation of the internal and external factors which
may impact the various functions of the business organisation. It is very essential for the
organisation to have a practice of the strategic management in order to achieve the growth and
success. The strategic management helps the business organisation in achieving its goals and
objectives in an effective manner. The strategic management helps in giving the competitive
advantage to the business organisation because the management will provide with being aware of
the changing market and adopt the new strategies.(Gkoltsiou, and Mougiakou, 2021) The
strategic planning includes the implementation within the structure and adopt to the new
strategies which can help in attracting customers in an effective and efficient way. The strategic
planning plays a important role within the within organisation in order to achieve success and
growth. The strategic management is related to the planning and managing the several activities
which are involved by the organisation. The functioning of the various strategies need to be
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controlled so that the company is able to achieve the competitive advantage. (Hawkins, Krause,
and Deslatte, 2021)
Figure 1 Tesco company
Explain the process used by business enterprise to ascertain their strategy
It is very important for every business organisation to determine tenor strategy in an
effective way in order to accomplish the goals and objectives in an effective and efficient
manner. There are various procedures which have been used by the business enterprises in order
to be competitive and achieve growth and success. In context of the Tesco the company is
adopting the cost leadership as its business strategy in order to have the competitive advantage.
This is the most effective strategy which has been followed by the Tesco. This includes where
the company focus on reducing the cost of the products which enhances in the sales and revenue
of the business organisation. The process which is used by the business enterprises in order to
determine their strategy which discussed below: Goal setting- This is the first step in setting the goals and objectives for the strategises
which need to be taken into account by the business organisation in order to be effective
and efficiently. While making the strategic plan this is most important where the
organisation need to set clear objectives for achieving growth and success. This is the
process where the vision and Misson need to be clear. Analysis- this is considered as the key stage for the business organisation where it is very
important for the organisation to analyse the collected information. It is very important
that the information and data is analysed in order to adopt the right strategy for the
growth of the business enterprise. It is essential to conduct the internal and external
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environment which may affect the goals and objectives of the business enterprise. (Lee,
and Park, 2020) Strategy formulation- this is the third step in the process where forming the strategy is to
revaluation the information from the investigation. This stage of the process includes the
formulation of the various resurfaces which are useful for the business organisation. It is
very important for the business s enterprise to identify the resources from the external
environment which can help in achieving goals and objectives effectively and efficiently. Strategy implementation- It is very important for the successful implementation of the
strategy for the success of the business organisation. It is very sentential to match the
overall work with the current structure of the business organisation. It is very important
for the managers to take responsibilities so that employees can work effectively in order
to achieve the goals and objectives effectively.
 Evaluation and control- this is the last stage of the process where every organisation
need to focus on the evaluation of the strategy which has been adopted by the business
organization in order to be effective and efficient. This includes measuring the results
with the planned strategies by the business organisation. (Li, Wang, and Fu, 2021)
Evaluation of the impact of internal and external environmental variation on organisational
strategy
It has been identified that the internal and external environment plays a major role in the
organisational strategy. It is very essential for the business to determine the internal and external
factors which can influence the business functions. In order to identify the internal environment
the organisation can use SWOT analysis which is discussed below;
SWOT ANALYSIS
Strengths Weaknesses
 The Tesco has acquiring the British
market in the real sense in terms of
revenue. The company is considered as
the top retail store and supermarket in
United Kingdom. Its annual revenue
was 63,911 million pounds which is
 The change within its clubcard without
informing its customers. This made the
loss for the organisation in loosing the
customers and they shifted to some
other brands. The customers were angry
and not satisfied by this strategy of
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both in the United Kingdom and
Ireland.
 As the suppliers plays a very significant
role in the business operations of the
business enterprise. As the Tesco is
considering a very simple business
model which helps in reducing the cost
by having an effective and efficient
waste management system.
Tesco which was not a good sign for
the company.
 The Brexit has been affecting the
performant of the business organisation
where Tesco is able to make less profit
because of the Brexit move. The market
share price of the company has declined
by approximately 9 percent.
Opportunities Threats
 The Tesco has actuation a new store by
the name of the Jacks and the
organisation is performing well. This is
the opportunity for the Tesco to grow
its market with low cost rivals.
 Although the company has expanded its
business operations in other 14
countries. But there are some emerging
markets such as Turkey, south Korea
and Indonesia. Tesco can expand the
market in these countries in order to
grow.
 There are various national economic
factors such as taxations, credit,
government rules and regulations which
are considered as a serous threat to the
growth and performance of the Tesco.
This is threat for the company because
of tough competition.
 There is the threat of the competitors
such as Sainsbury, Walmart etc.
(Mosadeghrad, Ebneshahidi, and
Abdolmohammadi, 2018)
From the analysis of the internal environment of the Tesco it has been identified that
there is impact of the various factors over the strategy of the business organisation. It is very
important for the Tesco to overcome with its weakness so that the company is able to adopt the
new strategies in order to attract customers. The suppliers plays major role in the business
operations where the strategy of the company should be strong for the best competitive
advantage for the Tesco. If the organisation is focusing on the cost leadership strategy there are
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several threats which need to be focused by the business organization in order to be effective and
efficient. (Sillak, Borch, and Sperling, 2021)
In order to analyse the impact of the external environment the business organisation can
consider the PESTLE analysis which is the tool in order to identify the various factors which can
impact the business operations. The PESTLE analysis of the TESCO is discussed below; Political- This is the component which is related to the extent to which government
policies may interfere the business operations and its various activities. Such factors
include trade policies, trade restrictions, tariffs etc. it has been identified that the Brexit
move has impacted the Tesco is several ways. It is very essential for the marketers to be
aware of the policies which is changing which can impact the business organisation. Economical- in this factor to the direct impact of the performance within the economy
over the business operations. Such factors include taxation, inflation rates etc. it has been
identified that there was a negative impact of the pandemic as there was high rate of
inflation within the economy which has made increase in the prices of the products and
this has decline the demand within the customers. Due to this the Tesco company was
impacted. (Susanty, and et.al, 2018) Social- this is the component which is concerned with the current trend in the society
which has a influence over the business organisation and its operational activities. Such
factors include lifestyle, attitude, behaviour of the people. It is very essential factor where
the marketer need to analyse the various aspect of the people and their lifestyle in order to
satisfy their needs and demands. This factors plays a major role for the organisation. Technological- This is the factor which is related to the innovation and envelopment
within the world which can influence the business operations and its activities. Such
factors include digitalisation, automation etc. it is very important for the Tesco to focus
on the online services where the customers do not have to stand in a queue for long hours
for their billing. After the pandemic it is very essential that the company provide the
online serves in a more effective way in order to attract customers. It is very important
that the marketers are adopting the new technologies in order to attract customers. This
will help the company to attract customers as technology plays vital role in developing
the operational activities for the business organisation.
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 Legal- this is the factor which is related to the various laws within the country which has
a influence over the business organizational and its operations. Such factors include
labour laws, safety laws etc. it is very essential for the Tesco company to follow the
certain rules within the united Kingdom where it is important that the company focus on
the safety laws for the employees. This is essential in order to avoid any strict actions
from the government authorise which can be impactful for the Tesco
 Environmental- This is the factor which is related to the surrounding which can fuchsine
the business organisation and its operational activities. Such factors include climate,
weather conditions, sustainability etc. it is very important for the organisation to adopt
the sustainable development so that it is not affecting the environment because of the
various manufacturing process of the business organisation. (Tabari, and Wang, 2022)
there is the impact of the external environment over the strategises of the business
organisation. As if the company need to adopt to the cost leadership Strathy it is very essential
that the company is able to analyse the market and the various external factors which can impact
the organisation. The cost of the products and other factors can impact the Tesco company in
adopting to the strategic planning for the company.
Discuss the organisational strategic plan
It is very important for the organization to review on the strategic plan which has been
adopted in order to be competitive and achieve the growth and success. It has been sedan that the
company can take several measures over the planning of the business organisation. As it has
been planned that the company is adopting the various strategises in order to reduce the cost of
products in order to attract the large number of customers. This can be reviewed whether the
company is able to increase its sales from past years. The company can bring the change in its
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internal environment where it can focus on the weakness of the business Enterprise. The Tesco
can focus on the supply chain management and increase the sales of the company. It is very
important for the operation to look for the proper management within its supply chain and
operational activities. (Wright, 2020)
CONCLUSION
From the above report it has been terminated that strategic planning is defined as the
setting of the objectives and goals in order to achieve success and growth within the company.
As in context of Tesco it is very important for the business organisation to implement the
strategies in order to draw the attention of customers. This plays a major role in achieving
growth for the company. The strategic management is defined as the various activities which has
been controlled by the managers in order to be competitive within the market. There is the
process of the strategic planning which need to be considered by the Tesco company. The
analysis form the internal and external environment it is suggested that the company need to be
aware of the various factors which can impact the business organisation and its operations.
Appendix
The business plan for the strategic planning for the Tesco company.
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 Overview- Tesco is the organisation which is the largest supermarket within the United
Kingdom. It is very important for eta Tesco company to make the different strategic
planning in order to have growth and success of the organisation. It is very essential for
the Tesco company to plan for the competitive advantage and adopt to the new strategies.
the plan which has been included to adopt the new strategy in order to increase the
market share of the company.
 objectives- the main aim of the organisation is to increase the sales of the company by
adopting cost leadership.
 Products and services- the various products or services of eta company can be made
more effective where the company can focus on the quality of the food products and
maintain the variety of the products so that they are able to attract customers in an
effective way.
 Market analysis- this is the most important aspect for strategic planning fr the Tesco
company where the marketer need to analyse the market where the company is planning
to expand and the various external factors which need to be adopted by the company in
order to be competitive.
 Marketing strategy- the company can adopt the marketing strategy as the market
development in order to increase its market share. This is the most effective marketing
strategy which can be focused by the Tesco in order to be competitive and achieve higher
growth and success.
 Financial planning- this includes the panning of the financial resource for the company
in order to increase the market share. The financial planning includes the budget of the
company which need ot be prepared in order to be cost effective.
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REFERENCES
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(Elliott-Engel, Westfall-Rudd, and Corkins, 2021)
(Gkoltsiou, and Mougiakou, 2021)
(Hawkins, Krause, and Deslatte, 2021)
(Lee, and Park, 2020)
(Li, Wang, and Fu, 2021)
(Mosadeghrad, Ebneshahidi, and Abdolmohammadi, 2018)
(Sillak, Borch, and Sperling, 2021)
(Susanty, and et.al, 2018)
(Tabari, and Wang, 2022)
(Wright, 2020)
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