Strategy Project

Strategy Project

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Organisational overview..............................................................................................................1
Comparison of theory and practice..............................................................................................2
CONCLUSION................................................................................................................................8
RECOMMENDATIONS.................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy is described general plan intended for attaining something in future. Strategic
management is management branch which is related to developing strategic vision, defining
goals, formulating and executing strategies in action, introducing remedial measures for
deviating action gaps with the purpose of reach strategic intent of business (Evans and Mason,
2018). It is the foundation for all organisational decisions, guides in moving towards particular
direction, prepares for dealing with future challenges and helps in exploring opportunities to
sustain in competition. The strategy project is based on Tesco that is top retailer business
specialised in selling general merchandise together with groceries. The company performs its
business activities from its headquarter located in Hackney, UK.
The project includes information about the organisation, comparison of various theories
such as Porter’s five forces model and PESTLE Analysis in context to success or failure and
support provided by them to experience of practitioners.
MAIN BODY
Organisational overview
Tesco is a big company that deals in retail items. Its headquarters are established in Hackney
UK by Jack Cohen in 1919. As per its gross revenue, the company has achieved position of third
largest retailers in the globe. Moreover, according to its revenues, it is at position of ninth largest
retailer. Products of the entity are available at Convenience shop, supermarket, superstore along
with Hypermarket. The shops of the entity are situated in various nations across Europe and
Asia. It was opened as group of stalls and now, the organisation has over 6800 shops in
international market (Tesco. 2020). It is diversified the business into areas including petrol,
software, internet services, clothing, furniture, books, financial services and lot more. The
company is listed in London Stock Exchange as well as is constituent of FTSE 100 Index.
As per the research in 2018, the company has made efforts to acquire expansion and growth
with huge proportions. In the year 2019, Tesco has generated actual revenue of £63.911 billion,
Net income of £1.320 billion and Operating income of £2.206 billion. It makes investments of its
funds in various areas and generates huge returns on them. It has invested in small firm studio so
that it produces exclusive DVD’s of Tesco. In present duration, Tesco is working with approx
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450000 colleagues that meet needs of millions of customers every week through online or offline
modes.
In Tesco, strategic management plays significant role. It is seen that one wrong move can
take the entire business into drastic situation or a wrong decision may impact negatively on
productivity and profitability of the company. So, strategic management directs the management
team to evaluate outcomes of strategies as well as decisions in advance in order to measure
appropriateness for future (Eden and Ackermann, 2013).
Comparison of theory and practice
In the approach, theory and practice of models are compared in order to analyse how they
distinguish from each other to support experience of practitioners in the retail field.
Porter’s five force model
Porter’s five force model is the theory that was propounded by Michal Porter in 1985. It is
the model for analysing business competition and facilitates in recognising distinct forces
affecting operations and strategies formulated by managers. By using the model, administrating
team of companies analyse industrial attractiveness in context to profitability. Tesco is leading
business that operates in retail industry to sell its commodities around the globe. For the purpose
of identify that the model or theory supports experiences of practitioners in setting and
implementing strategies or not, all the forces of the model are analysed in context to the entity
(Porters Five Force Model. 2015). The discussion of analysis of five forces is as follows:
Figure 1 Porters Five Force Model. 2015
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