Business Strategy Report for Tesco Plc

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Business Strategy
Report
6/30/2018
Student Name

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Contents
Introduction...........................................................................................................................................2
LO1........................................................................................................................................................2
Strategic Context...............................................................................................................................2
Vision and mission........................................................................................................................2
Objectives......................................................................................................................................3
The framework of the macro environment.........................................................................................3
PESTLE.........................................................................................................................................3
Stakeholder analysis......................................................................................................................5
LO2........................................................................................................................................................5
Internal environment and capabilities................................................................................................5
SWOT analysis..............................................................................................................................6
Strategic Capabilities.........................................................................................................................7
Value Chain Analysis....................................................................................................................7
LO3........................................................................................................................................................8
Analytical tools and models of analysis.............................................................................................8
Porter’s Five Forces Model............................................................................................................8
Ansoff matrix................................................................................................................................9
LO4......................................................................................................................................................10
Strategic Choices and Directions.....................................................................................................10
Generic Strategy..........................................................................................................................10
Strategies for competitive advantage...........................................................................................11
Conclusion...........................................................................................................................................12
References...........................................................................................................................................14

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Introduction
Tesco Plc, trading as Tesco is British international groceries and general commodities
retailer. Tesco is considered to be the third largest store in the world in terms of profits and
ninth largest in terms of revenues in the world. The company is offering the variety of
products which include electronics, internet services, clothing, electronics, toys and software.
The key competitors of the business in the international market are Wall mart and most of the
competitors are national which includes Sainsbury, Morison’s etc. The company has been
found with the market share of 35% in the UK market where Tesco is considering the leading
and fast growing company while operating with the proper strategy. Tesco Plc is operating in
more than 12 Countries which include Asia, Europe and others (Steve Robbins, 2018).
The report below provides an insight of company in Supermarket that is Tesco while
emphasising its external and internal environment analysis. The impact of macro
environment factors has been discussed and their influence of the business. The internal
environment also includes the stakeholder’s analysis and the SWOT analysis of the Tesco in
which all the opportunities and threats business have been highlighted. The report also
includes the discussion related to the capabilities of the Tesco using the frameworks of ansoff
Matrix. All the structure and skill set of the company has been discussed in the report with e
view to have the deeper understanding. This will help to determine the internal; environment
to assesses the strengths and weakness of the company (The Telegraph, 2016).
The report discusses Tesco competitive forces which have the competitive advantage in the
market. Use of Porter’s Five Forces model has been used to analyse the Tesco position in the
market. These strategies are used in the report to have the competitive advantage in the
market. This is done to position the corporation in the market that where the company is
standing based on the outcomes. The report discusses the details regarding the strategic
management followed in the organisation (Shewmake, Cohen, Stern and Vandenbergh,
2015).
LO1

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Strategic Context
Vision and mission
Tesco’s vision has elements which describe the sort of company it aspires to be:
 Required and wanted about all the corners of the world.
 Increasing business with lots of chances.
 Modern, advanced and full of thoughts.
 Motivate, inspire, earning trust, faith and devotion from customers and communities
(Tesco Plc, 2018a).
Objectives
 Offering consumer the best values for money and in the inexpensive prices.
 Convention the needs of the customer by analyzing the market and its nature.
 Making innovation in product quality, choice, services and storage facilities.
 Progressive returns to the shareholders by investing their money in right place.
 Develop the individual talent complete sound management and training practices.
 Good working association with the suppliers for the long term.
 Participating in the formulation of national food industry policies on key issues such
as health, nutrition, hygiene, safety and animal welfare.
 Support the welfare of the community and protection of the environment (Tesco Plc,
2018b).
The framework of the macro environment
The macro environment of Tesco has affected the business working. To analyze the macro
factors of the environment, Pestle analysis and stakeholder analysis is done.
PESTLE
Political factors
Tesco is working in more than 12 countries and is exposed to the various political risks as all
the country has its own political factors. These political factors can affect the working of the
business. These factors include the political instability, impending legislation in the country.
For example, import duty on good can affect the company (Woerner and Wixom, 2015). The
biggest risk factor to Tesco is the EU referendum for investors. The tax on large supermarkets