Management Strategies Adopted by Tesco: An Analysis

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK...............................................................................................................................................3
Business and corporate strategies in organization.......................................................................3
Internal and external environmental analysis..............................................................................5
Techniques and model used by the organization.........................................................................6
Strategic planning of organisation...............................................................................................7
Different level of strategies and technology used by the company.............................................8
Corporate example to justify stand..............................................................................................9
Recommendations........................................................................................................................9
CONCLUSION..............................................................................................................................10
References......................................................................................................................................12
Books and journals:...................................................................................................................12

INTRODUCTION
The report aims to analyse the management strategies adopted by the CEO of Tesco. In the
dynamic business environment, there is requirement of many strategies which are going to make
a positive influence on the company. The strategic frameworks help the business managers to
take vital decision about risk and uncertainty as which may arrive at any e situation. It is
necessary to enhance organisational performance in terms of productivity and profitability.
Covid-19 pandemic has impact drastically on various business operations and their profitability
within the market. It leads to result in various issues and challenges in terms of customer
satisfaction, adopting dynamic environment, risks and uncertainties and low economic growth.
The rate of demand and supply goes decline into the economy which shows people does not have
high purchasing power that influence on the sales of company (Wood, Wrigley, and Coe, 2017).
Therefore, the managers of organisations need to prepare more effective policies and strategies
which will eliminate any unnecessary consequences and runs are smooth functioning. Strategies
play an important role in this competitive environment to be a market leader and attract
customers globally. The reporter going to present and understanding on Tesco, it is the largest
and widely scattered Supermarket of UK. It sells all the varieties in consumer goods which
include health and beauty, food packages, daily Essentials, home furnishing and many more
services in Tesco Store. Due to the situation of covid-19 pandemic the company has decline its
market share due to various issues and challenges arrived in to market. Therefore, the Tesco is
also facing these crises which promote strategic tools and research of market. The report is going
to AIM at providing what strategies the CEO use. It will be done through analysing internal and
external market, strategic Tools and techniques, strategic planning and technological
innovations.

MAIN BODY
TASK
Business and corporate strategies in organization.
Business and corporate strategies play a vital role in organisation. These strategies help in
taking competitive advantage and utilise effective resources. There are important strategies
created by the CEO of Tesco which is described below:
Focus strategy: as per this strategy, the organisation to mainly focus on their priority areas. The
main focus of Tesco is on customer demand and their satisfaction so that they as to provide
products as per market trend in the personalized needs. This helps in providing valuable products
in market and avoids unnecessary resources.
Cost leadership: the strategy is most effective for every business organisation. The purpose
behind this study is to produce low cost products and services to charge an affordable price from
the customer. Tesco is known as one of the reasonable price supermarket which provides quality
products in all over their stores (Lončar, 2017). A low cost price strategy gives high return as
there will be involvement of large customer base. The CEO of has maintained this strategy from
many years which leads to gain success in Tesco operation.
Differentiation: this strategy focus on differentiate the products as per customer personalize
needs and unique demands. It is quite effective as the customer is able to pay a high price for
their personalized and differentiated products. The CEO of Tesco provide these services to
giving discount offers royalty cards schemes in order to gain advantage of customer satisfaction.
Price skimming strategy: this strategy is also vital for organisation as price is the most
considered factor by customers. It helps in preparing cost budgets and focus on charging prices
which will give high revenue. The Tesco use this strategy to gain profit margins without
sacrificing quality of products. These decisions taken by finance managers who put efforts to
recover from losses by taking vital decisions.
Strategy to allocate resources: organisation is required to organise engage and utilise the
resources effectively. For which, to put focus on inventory and operations management so that it
each and every function will be under supervision and resources will not be get scared. The CEO