Strategic Management of Tesco: Analysis and Recommendations

MBA (Master of Business Administration)
MBA 7013
Strategic Management
Extended Analysis and Report
Submitted by:
Name: Mmmmm Yyyyy
ID: XXXXXXX
Word Limit:
4500 words
Date of Submission:
10 May 2022

CONTENTS
1. INTRODUCTION..............................................................................................................1
2. ORGANIZATIONAL CONTEXT.....................................................................................1
Overview of Tesco.................................................................................................................1
Strategic issues, problems and priorities................................................................................1
Key milestones in its development.........................................................................................2
3. CRITICAL EVALUATION OF RELEVANT THEORIES/CONCEPTS.........................2
Porters five force model.........................................................................................................2
PESTLE..................................................................................................................................3
Balance score card..................................................................................................................4
SWOT.....................................................................................................................................4
VRIO/resource-based view....................................................................................................5
BCG matrix............................................................................................................................6
4. APPLICATION OF THEORIES........................................................................................7
SWOT.....................................................................................................................................7
Pestle.......................................................................................................................................7
Balance scorecard...................................................................................................................8
Porters five force model.........................................................................................................8
BCG matrix............................................................................................................................9
VRIO/Resource based view.................................................................................................10
5. CONCLUSION.................................................................................................................10
6. REFLECTIVE ASSESSMENT OF MY LEARNING.....................................................11
7. REFERENCES.................................................................................................................12

1. INTRODUCTION
Strategy is being regarded as key in strategic management which is quite necessary
for attaining particular objectives of an organization. Further, strategic tools are generic
names of methods, approaches, strategies, tools, frameworks and models which helps in
facilitating strategic work. The current research report is being aimed to evaluate the
challenges being faced by Tesco, one of the leading supermarket chains of UK in developing
and deploying strategy for sustainable competitive advantage (Kotler and et.al, 2018). In this
context, the report will be going to apply different models, theories and concepts in relation
with exploring the strategic issues being faced by the company and will make some
recommendations of plausible and evidence-based options suitable for the firm. The report
will also include reflection assessment of overall learning journey in completing the project,
using an appropriate for setting out insights and their chronology. The final part will include
conclusion which will reflect upon the effectiveness of the tools and techniques of strategic
management being utilized in the study for supporting the investigation.
2. ORGANIZATIONAL CONTEXT
Overview of Tesco
Tesco is one of the leading retailers of UK being founded in the year 1919 with the
first supermarket in London. Now, the company has more than 34000 stores in UK with more
than 300000 colleagues working for them. The main aim of the company is to provide better
quality products to their clients through helping them in having an easier life. The company is
a multinational grocery as well as general merchandise retailer and the only Britisher based
supermarket chain that has operation overseas (Ghani, 2018). The company has a flat
hierarchical structure where each and every envisioned action has to pass by the management.
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Strategic issues, problems and priorities
The mission and vision of Tesco is to provide superior as well as technical
representation as well as add value to its products and clients through offering highly
innovative solutions to their design of clients. In spite of its success, the company is coming
across with varied strategic challenges like decrease in the quality of its products and
services, higher level of competition in the market, the scandal of horsemeat, failure in
comprehending the trend and the cultural differences in the other nations. These are being
regarded as the major challenge being faced by the company that needs to be overcome
through development of different approaches and strategies and these are the strategic
priorities of the firm as well (Durand, 2022).
Key milestones in its development
1919 Founded of Tesco
1924 Official induction of Tesco as a brand name
1931 Opening of first real store
1956 Opining of the first self-service Tesco supermarket
1984 First online shopping transaction
1995 The company introduced its Clubcard system
2013 Started its first tablet (Zhao, 2014)
2015 Diversified its stored for getting closer to larger number of people
3. CRITICAL EVALUATION OF RELEVANT THEORIES/CONCEPTS
Porters five force model
Talking in relation with the five-force model of competitive advantage being
projected by Michael Porter suggests a convincing perspective on the manners an
organization can attain a competitive advantage in a specified industry through leveraging on
five authoritative forces of the industry. This contemporary theory related to competitive
advantage although being widely well-known as well as acknowledged is undoubtedly not
allowed of its faults. The five forces are included of factors which might influence the
positioning of the company in a specified industry and these factors comprise the bargaining
power of the buyers, bargaining power of the suppliers, threat of potential entrants, threat of
existing competition and threat of substitute (Dobbs, 2014). Articulating in relation with
bargaining power of the buyers, it is being referred as the power being exerted by the
customers on the company. In certain types of industries, customers show higher level of
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