Strategic Management Plan for Tesco: Internal and External Analysis, Competitive Analysis, and Strategic Options

Business Strategy

CONTENTS
INTRODUCTION......................................................................................................................1
PART– A (INTERNAL AND EXTERNAL ANALYSIS).......................................................1
PESTLE and SWOT evaluation of the organization and analysis of the firm’s resources and
capabilities..............................................................................................................................1
Competitive analysis using Porter’s five forces model..........................................................4
Determining existing and potential competitive advantage...................................................5
Strategic and tactical objectives.............................................................................................6
PART – B (STRATEGIC OPTIONS).......................................................................................6
Varied types of strategic directions........................................................................................6
Justifying and recommending the most appropriate growth platform and strategy...............9
Ways by which selected strategy can be monitored for ensuring success.............................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

TABLE OF FIGURES
Figure 1: Porter’s generic strategic model.................................................................................7
Figure 2: Bowman’s strategic clock...........................................................................................8

INTRODUCTION
Each and every business corporation with a view to attain an edge over the other firms
in the market utilizes strategic management which is an incessant procedure related to
generating, executing and analysing the decisions that allows the firm to make strategic
decisions. Further, strategic management is being regarded as the base of the key targets
which are being framed by the top management of the firms. It takes into account the internal
resources as well as external environment for developing processes and policies for attaining
the strategic goals (Ciampi and et.al., 2020). Based on this, the main aim of the present
research work is to make a strategic management plan by taking into account both internal
and external environment plus competitive evaluation through application of different
models. The whole discussion is being emphasized on one of the most popular multinational
grocery retailers of UK, Tesco. The firm is being headquartered in England and encompasses
convenience shop, supermarket, superstore and hypermarket.
PART– A (INTERNAL AND EXTERNAL ANALYSIS)
PESTLE and SWOT evaluation of the organization and analysis of the firm’s resources and
capabilities
PESTLE analysis
 Political – The key political changes that have been introduced by the UK
government that is the novel tax measure and along with the global pandemic in the
recent years have caused people to decrease their spending and this has affected the
profits and revenue of the retail organization. there has been also an imposition of fat
tax for controlling the obesity and issues related with it which has already influenced
the overall sales of Tesco and thus, new healthy food range has been launched by the
firm (Zalengera and et.al., 2021).
 Economic – In relation with the economic situation, it can be said that the nation has
been victim of the financial crises due to recent happenings such as pandemic.
Irrespective of the economic downturn, the economy of UK has regained its pace and
growth rate. In addition to this, the economy and its growth is reflecting an optimistic
sign for the firm since there is a growth in the supermarket industry as well.
 Social – These are being referred as the factors which are being connected with the
community. In regards with the macro environment, it has been observed that there
has been rise in the ageing population in UK with the augmentation in the life
expectancy rate. This has resulted in movement in the taste of the ageing population
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