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

Strategic planning

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction including a definition of strategic management.....................................................3
A critical assessment of the process used by organizations to determine their strategy.............4
Critically evaluating the impact of external and internal environment.......................................6
Organization strategic action plan related to Tesco:..................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
The present report is based on strategic management that helps the company to achieve
the organizational goals within the limited time framework. The report will analyse different
processes used by the Tesco to determine the best strategy that can be implemented in the
future. Moreover, the study will identify internal and external environment variation on the
strategy set by the firm. Lastly, organization business plan will provide an action plan so that
strategy can be used appropriately.
MAIN BODY
Introduction including a definition of strategic management.
Strategic management is provides overall direction through developing plans and policies
that are designed to achieve organizational goals and objectives. Further it involves allocating of
resources so that plans can be implemented properly. Strategic management has become crucial
in world of business as it includes innovative thinking, a planning process and operational
stratigising (Barbosa and et.al., 2020). Strategic management is crucial business practice due to
following reasons:
Planning : It helps in predicting the future trends that helps in business in future success. For
this purpose various tools have to be used instead of basic planning by the management.
Forward thinking: Strategic management helps in laying down clear goals and objectives so
that overall idea would be beneficial in organization growth (Wang, and et.al., 2021).
Resource allocation: It also ensures that resources are used wisely and are invested in most
promising opportunities. So that less time and cost is involved and work is done on time.
Strengths and weakness: This strategy helps to identify the weak points of the organization
and suggest ways to overcome it (Ansoff and et.al., 2018).
Environmental impact: Strategy helps in identifying the future potential shifts that are going to
be incurred in a market that will affect operations of the business so that preventive measures
can be taken in advance.
It is observed that flexible company are able to make changes easier in their structure
and plans while inflexible companies may find it difficult. There are various approaches to
strategic management one is prescriptive approach that outlines how strategies should be

developed and other is descriptive approach that focuses on how strategies can be put into
forces (Schilling and Shankar,2019).
Moreover, there are various strategic management strategies that includes general strategy,
corporate and competitive. General strategy is based on how the given objective will be
accomplished. Thus, it is concerned with relationships between the ends and means. Further the
corporate strategy is based on defining the markets and business in which the company is based
and the area in which it requires competing (Fedushko and et.al., 2021). Competitive strategy is
based on the success of company strength, weakness, concerning its competitors.
Further there are various advantages that strategic management helps in achieving the business
goals some of them are been described as follows:
 It helps in giving competitive advantage above all other competitors as it means that
company will always be aware of changing market (Lasserre, 2017 ).
 It also helps in achieving the goals by using clear and dynamic process for formulating
steps and implementation.
 Sustainable growth also helps in efficient organizational performance so that growth is
manageable.
 Organization working in unison towards a particular goal is more likely to achieve
success.
 Managerial awareness can be increased and hence they are more ready to take up future
challenges in the future.
Also, there are various approaches and frameworks for strategic management but the
initial process includes strategy formulation through identification, analysis, formulation,
execution and evaluation (Drnevich,Mahoney and Schendel,2020).. It is very important that firm
carry out the whole process in systematic manner or else one wrong strategy can incur losses to
the firm.
A critical assessment of the process used by organizations to determine their strategy.
Clarifying the vision:
To ensure successful implementation of strategy the organization must define clear goals
and objectives that need to be achieved in specific time period. Moreover, if vision is clearer than
policies and strategies can be formulated in easier way. In regard to Tesco, they have clear vision
to sell the products under their own label and ensured good quality goods at cheaper prices.