Tesco Business Strategy

TESCO BUSINESS STRATEGY 1
TESCO BUSINESS STRATEGY
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TESCO BUSINESS STRATEGY 2
Contents
Task one:.....................................................................................................................................................3
1a. Use of Mission, Vision, Objectives, Goals and Core Competencies in Strategic Planning................3
Vision..................................................................................................................................................3
Mission................................................................................................................................................4
Goals and objectives............................................................................................................................4
Core Competencies..............................................................................................................................4
1 b. An analysis of factors that have to be considered when formulating strategic plans.........................5
Engagement of employees.......................................................................................................................5
Effective communication.........................................................................................................................5
Innovation................................................................................................................................................5
Task Two.....................................................................................................................................................6
2a Tesco Environmental and Organizational Analysis............................................................................6
PESTLE Analysis................................................................................................................................7
Porters 5 forces....................................................................................................................................9
2b. Strategic position and significance of stakeholder analysis.............................................................10
Task Three.................................................................................................................................................11
3. Tesco Substantive Growth Strategy...................................................................................................11
Task 4........................................................................................................................................................13
4a. Market penetration Strategy Implementation.......................................................................................13
4b.Smart targets.....................................................................................................................................15
Increase Tesco’s sales by 4% in six months......................................................................................15
Increase market share by 5% in one year...........................................................................................15

TESCO BUSINESS STRATEGY 3
Task one:
1a. Use of Mission, Vision, Objectives, Goals and Core Competencies in Strategic Planning
Strategic planning is a core management function contributing greatly to long-term
success in organizations. A strategic plan plays a significant role in the alignment of the
organization's objectives to its goals. Additionally, it increases operational efficiency by aiding in
decision making on aspects such as determination of budget and resources needed to achieve set
objectives. Strategic planning is, therefore, a management activity aimed at aligning
organizational resources and resources towards the realization of common goals. It is also aimed
at ensuring that the workforce and stakeholders are focused on the realization of common goals.
Tesco is an international groceries and general merchandise retailer based in the United
Kingdom. It is currently ranked as the grocery market leader in the UK with a 28% market share.
The organization can make use of its mission, vision core competencies, goals and objectives in
strategic planning to improve its competitiveness.
Vision
"To be the most highly valued business by the customers we serve, the communities in
which we operate, our loyal and committed customers, colleagues and of course, our
shareholders” (Business-LLP, 2019).
The company’s vision is centered on its colleagues, shareholders and customers. By
considering what it intends to achieve with each of these groups; the company may use its
mission to make strategic decisions. It may also use its mission to inform the decisions it takes in

TESCO BUSINESS STRATEGY 4
its operations (Business-LLP, 2019). The vision of the company needs to remain constant in the
face of changing the corporate world.
Mission
“We make what matters better together” (Business-LLP, 2019).
The mission of the company is quite simple. However, in its simplicity, the mission
denotes the overall business purpose. It also communicates the purpose of the business to
stakeholders. Creating awareness on the reason for the existence of the business may help in
strategic planning by ensuring that decisions arrived and the undertaking of the company do not
deviate from its core mission (Business-LLP, 2019).
Goals and objectives
The following are some of the goals and objectives of the company.
"Understand customers."
"Be the first to meet customers' needs."
“Act responsibly for communities “(Tesco 2019).
Based on its goals and objectives, the company aims at understanding its customers, meet
their needs and act responsibly. The company may consider the opinions and use the knowledge
gained from their customers to plan on what can effectively meet their needs (Tesco 2019). By
seeking to meet its objectives of being ethical, the company may also plan for the inclusion of
the most sustainable practices in its operations.
Core Competencies
Some of Tesco’s core competencies include
"Making a positive contribution to the community."