Strategic Planning for Growth: A Case Study of TESCO plc

This report discusses the strategic planning for growth of TESCO plc, a British international retail and groceries dealer. It covers the competitive environment, strategic capabilities, strategic purpose and corporate social responsibility, and strategic choices of the company. The report also includes a SWOT analysis and the use of Ansoff Matrix for specific strategies for internationalisation or innovation.

Strategy and Business
Planning

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The competitive environment:....................................................................................................3
Strategic capability:.....................................................................................................................4
Strategic purpose and corporate social responsibility:................................................................5
Strategic choices:........................................................................................................................5
Specific strategies are being pursued for internationalisation or
innovation...................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Growing the organisation refers to taking several decisions regarding the way the
management wants to scale their operations. Making an appropriate strategic plan is vital
element of the planning for growth. This will assist them to make a realistic vision for their
business future as well as in operations in order increase the potential of the business for the
growth (Marasinghe, Perera, and Thelijjagoda, 2018). In addition to it, the aim of the strategic
planning is to make the entire objectives of the business and to make a suitable plan in order to
accomplish them. This includes stepping back from the routine functions and also asking in
which the organisation is moving and what are their priorities need to be. The following report is
based on the company TESCO plc, which is a British international retail and groceries dealer
having its headquarters in Welwyn Garden City, United Kingdom. Moreover to it, the following
report will cover about the competitive environment, strategic abilities, strategic purpose as well
as corporate social responsibilities and strategic choices.
MAIN BODY
The competitive environment:
PEST analysis is the tool that is much required for the organisation like TESCO, as it
assist in understanding the dynamics of market as well as betters the businesses consistently.
 Political Factor – Company is having headquarters in United Kingdom, as TESCO
functions across several nations. As one of the biggest brand around the world, the firm
must obey several rules and policies which make sure safety and compliance of their
goods and products. As the firm functions around several nations, management requires
to keep a tab on the ever fluctuating political conditions, in all the nations its operations
are in essential thing is stability in political.
 Economic Factor – Management need to keep in mind that their strategy of pricing their
goods will impact their sales revenue. In terms the economy is under pressure, rise in
inflation, goods that belongs With the attitude of customers, shifting towards, organic
products, and Tesco has managed to capture its consumer base by shifting its attitude
towards promoting organic, to satisfy its customers. Tesco believes in benefiting the
society, by local hiring, and thus has generated employment in various countries.to the
essential and daily needs, they significance of academic misconduct\need to make their

prices in accordance to it. enhanced in the rates, with minimum increment in the income
of disposable which will lead to the decline in the sales of the merchandise offered by the
company TESCO (Kiziltas, and Çalıyurt, 2018).
 Social Factor – Due to the behaviour of consumers, moving towards organic goods as
well as management of TESCO has managed to acquire its base of customers by
changing their attitude towards working on promoting products which are made
organically in order to satisfy their customers. TESCO has generated major employment
in several nations which has lead to their increased goodwill in the market area.
 Technological Factor – Currently the trend have been fluctuating at a the rapid pace, in
accordance to be more relevant in current situation, this is essential for the organisation to
keep up with the ever changing technology. Additionally TESCO has been researching
with several elements of retailing has accomplished more success. The social media
promotions, the online shopping and many more are the part of impacting the consumers
by offering several benefits technically.
Strategic capability:
SWOT Analysis:
Strength
 Management of Tesco has been
working on the simple model of
business, in order to minimise the
expenses by possessing the effectual
system of waste management. As the
outcome company is having the
effectual outcome with their suppliers.
 Organisation is having the brawny
goodwill in the market area which leads
to increased sales and brand value in
market.
Weakness
 In the year 2017 organisation Tesco
found guilty for displaying low revenue
in their books in order debar taxes.
Such news and laws has lead to the
decline in their sales.
 As due to the Brexit, it has been
impacting the performance of the
organisation and because of it Tesco is
earning low profits. Hence, the market
share of the organisation has been
declined by around 9 to 10 percent.

Opportunity
 Tesco has scaled up its business
working in many nations but there also
few of the developing markets like
South Korea, Indonesia and Turkey as
these market area possess the potential
to grow (Weetman, 2019).
 There are several outlets of the
company in few nations which are not
performing up to the mark. If the
organisation collaborate with the local
businesses and understand the local
market there in order to better their
graphs.
Threat
 After the implementation of Brexit, it
has lead to exit of UK from the Europe,
so this has given the serious effect on
the operations of Tesco, because Tesco
has been operating its commercial
functions in several nations in Europe.
 Other supermarket giants like Aldi,
carrefour, Walmart etc. are few of the
major competition of the respective
firm as they are also taking over the
same consumer base as of Tesco.
Strategic purpose and corporate social responsibility:
Organisation Tesco majorly focused that norms that are very harmful to the atmosphere
as it will not assist in increasing the reputation of the organisation and it can make more damage
to the firm, society as well as its consumers at large (Rees, and Smith, eds., 2021). Protection of
the environment is the main concern of the company it is not linked to their organisational goals.
Yet, the organisation placed itself to managing the appropriate environment and made all of their
workers to take the part in their environmental campaigns. Moreover to it, Tesco has launched its
several campaigns to energy awareness in the year 1996. The staff of the company was
anticipated to take the active role in this. Leaders of every outlet of the Tesco and their offices
are observing the utilisation of the energy as well as working towards minimising their waste.
Strategic choices:
For the strategic choice of the company Tesco Plc, Ansoff Matrix is used and it is
mentioned below briefly:

 Market Penetration – It states about the sale of the existing offering of the company in
their current market area. This method is the common technique which is utilised by the
Tesco and other organisations (Smith, Yellowley, and McLachlan, 2020). In context to
Tesco Plc, management can generate more income by modifying their current products or
lower down their prices in accordance to the desires of the consumers.
 Product Development – It concentrates on producing the new product in order to sell it
on the current established market area of the company. In case of the company Tesco,
management utilised this chance to scale their range of goods and sell it in their existent
market area in order gain more brand value as well as profitability. Ansoff's prod
 Market Development – It assist the organisations to sell their existing goods in the new
market area in order scale their business operations. In relation to the company Tesco,
this is one of the best way to tap into the new market area with the help of their goodwill
as well as by selling their star products into the new market.
 Diversification – This element of the Ansoff matrix states that organisation can enter in
to the whole new market segment with launching the entirely new products in such
market area. It is one of the risky strategy as it is very difficult to grow in new market
with launching new products there. In case of the organisation Tesco Plc, organization
can vary their range of products into numerous assorted areas by understanding as well as
developing merchandise according to the demand and interest of the consumers in that
particular area (Atherton, 2019).
Specific strategies are being pursued for internationalisation or
innovation.
For growth as well as development of the company Tesco, it is recommended to them
that organisation can concentrate more on market development strategy as firm possess many
successful goods that they can be appropriately marketed into new market places in order to
build a new base of consumers and expand their business operations.
CONCLUSION
From the above report it has been concluded that, the business of management manages
their operations and as well as functions by maintaining their plan of actions. In the
contemporary world, the management are facing adverse conditions in order to manages their

dealings with suitable terms. The above report covers the dealing of the business, and their
functioning terms with settlement of several options regarding plan of actions and strategies of
the business of the management.
REFERENCES
Books and Journals
Atherton, J., 2019. Social media strategy: A practical guide to social media marketing and
customer engagement. Kogan Page Publishers.
Smith, P.E., Yellowley, W. and McLachlan, C.J., 2020. Organizational Behaviour: Managing
People in Dynamic Organizations. Routledge.
Rees, G. and Smith, P. eds., 2021. Strategic human resource management: An international
perspective. Sage.
Weetman, C., 2019. Economia Circular: conceitos e estratégias para fazer negócios de forma
mais inteligente, sustentável e lucrativa. Autêntica Business.
Kiziltas, O. and Çalıyurt, K.T., 2018. Corporate Social Responsibility in the Retail Sector: A
Case from Turkey. In Sustainability and Social Responsibility of Accountability
Reporting Systems (pp. 95-124). Springer, Singapore.
Marasinghe, B., Perera, M. and Thelijjagoda, S., 2018, December. Analyzing the Location
Feasibility for Retail Businesses using Market Location Factors. In 2018 IEEE
International Conference on Information and Automation for Sustainability (ICIAfS)
(pp. 1-5). IEEE.