Strategy Evaluation

Strategy Evaluation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Value of Mission, Vision, Objectives and Purpose of Tesco......................................................3
Analysing Competitive Advantage of Tesco using VRIO Framework.......................................4
PESTLE Analysis of Tesco.........................................................................................................7
Evaluating Competitiveness of Tesco Using Porter’s Five Force Model....................................9
Review of Tesco’s Business Strategy........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A business strategy is the working plan of a business organisation that is created in order
for the business organisation to effectively achieve its end vision, mission and objectives. An
effective business strategy allows a business organisation to operate successfully within
consumer market within increased productivity and profitability and also provides it with a
competitive advantage against its competitors in the operating industries (Akter and et.al., 2016).
This report assesses the business strategy of Tesco, a multinational chain of retail specialising in
selling general merchandise and groceries to consumers. Tesco was founded in 1919, an
astonishing 101 years ago and operates from its headquarters in Hertfordshire England. Having
operated in the retail industries successfully for such a long period of time has presented Tesco
with numerous opportunities to grow and expand its business operations to global markets.
Currently Tesco operates 6,800 distinct establishments across 11 different countries around the
world. This has made Tesco the third largest retail business on the basis of gross revenues in the
entire world. For its operations, Tesco also employees a large number of individuals for its
operations, with the business employing 450,000 different individuals across the globe as of
2019.
MAIN BODY
Value of Mission, Vision, Objectives and Purpose of Tesco
For the planned business strategy of any business organisation to be successful, it needs
common shared objectives and goals for the various operations of a business organisation.
Vision, mission, purpose and objective statements serve as a guide for the business
organisation’s business strategy (Leonidou and et.al., 2017). Failure for a business organisation
to create clear dedicated vision, purpose, mission and objectives towards their business strategy
results in confusion in relation to the operations of the business and also makes it much harder
for the business organisation to achieve set mission, objectives and vision.

As Tesco is a quite successful retail business organisation, its leadership and management
have created specific purpose, mission, objectives and vision for the operations of Tesco as part
of its business strategy.
Vision: Tesco’s vision statement is “To be the most highly valued business by: the customers we
serve, the communities in which we operate, our loyal and committed colleagues and of course,
our shareholders.” This statement clearly states the end vision that Tesco wishes to achieve in the
future as part of its business strategy, so that there is no confusion amongst its distinct
operations, making it easier to achieve it through effective business strategy (Johnson, 2016).
Mission: Tesco’s mission statement is “We make what matters better, together.” Tesco’s mission
statement also is clear as part of its business strategy, leaving no room for confusion, allowing
for its business strategy to successfully achieve its end vision and objectives.
Purpose: Tesco’s purpose in the retail industries is “To serve shoppers a little better every day.
We deliver this through our values – ‘No one tries harder for customers’ and ‘treat people how
we like to be treated’. This also clearly states the purpose of Tesco’s operations as part of its
dedicated business strategy.
Objectives: The current objective of Tesco is to further increase their market share, customer
base, operational performance, efficiency, productivity and profitability in the retail markets by
providing customers with exceptional service and satisfaction in order to retain their loyalty for
the future. The objectives in Tesco’s business strategy clearly states the current objective that all
operations of Tesco are required to achieve, thus allowing for no room for confusion, making
their business strategy effective (Park and Mithas, 2020).
Analysing Competitive Advantage of Tesco using VRIO Framework
The competitive advantage gained by Tesco through its business strategy and operations
can be analysed by making use of the VRIO framework. It is a four question framework which
that uncovers whether a business organisation possesses sustained competitive advantage against
its competitors in the operating industries or not.