Strategy Development Proposal for Tesco

Strategy development
proposal

EXECUTIVE SUMMARY
The report is all about strategy development which is a plan to research and determine
strategic alternatives, choosing most promising along with deciding the ways resources are to be
allotted within business for objective attainment. Tesco is selected company for the report which
is leading retailer that is specialised in selling general merchandise and various grocery items.
Purpose of report is to identify elements related to strategic environment which contributes
towards commercial decisions of company. The report demonstrates about the company and its
current market status. Further, porter's five force framework is applied and some strategies are
proposed. At last, justification for selected proposed strategy is provided.

Table of Contents
EXECUTIVE SUMMARY...............................................................................................................
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of company..................................................................................................................1
Current market status for the organisation...................................................................................2
Application of Porters Five Forces Model to the entity...............................................................3
Proposed strategy.........................................................................................................................7
Justifications for choice of strategy.............................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategy defines the way all ends will be accomplished through available resources or
means. It is a system of discovering, formulation and processing a doctrine which ensures
organisational long term success when followed faithfully. Strategy development is fundamental
for devising along with running a business. It is an art to devise particular organisational
strategies, executing them together with evaluating outcomes of implementation in context to
overall long term desires, objectives and goals of business. It provides direction along with
outlines measurable objectives (Adediji, Prosdocimi and Kemper, 2019)). In a business concern,
strategy development is used with the hope of guiding daily decisions, evaluating progress
addition to making modification in approaches while proceeding forward. For making most of
strategic development, business managers are required to provide careful thought for strategic
goals it outlines along with create back up of the objectives with realistic, quantifiable
benchmarks as well as thorough research to evaluate outcomes. For strategy development
proposal, Tesco Plc is chosen. This is leading retail entity whose headquarters are at
Hertfordshire, UK. It is biggest supermarket chain that accounts for 27.8% market share of retail
industry across the globe. It is popular for selling grocery along with general merchandise
through stores in more than 12 nations across Asia and Europe.
The present report covers overview of company, existing market status for the
organisation and application of Porter's five force model. It further includes proposed strategy
and justifications for strategic choice.
MAIN BODY
Overview of company
Tesco is an effort of Jack Cohen. It was established in 1919 as set of market stalls in
London. It have around 400,000 colleagues that serve to million customers each week in their
stores along with online. The organisation is engaged in practices of retailing addition to related
activities including retail banking, insurance services and hence forth. Moreover, the business
concern offers wide range of individual banking commodities and services that covers personal
current accounts, personal loans, credit card receivables and so on. It is a large grocery retail firm
in UK that have gain popularity according to consumer tastes shift for huge trips for certain
products. In the year 2019, Tesco have achieved around £56.5 Billion of group sales, £1.320
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