This report provides a comprehensive analysis of Tesco's business strategy, examining its operations and competitive position within the retail industry. It begins with an introduction to business strategy and highlights Tesco's position as a multinational retailer. The report then delves into the external environment using PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors influencing Tesco's operations. The internal environment is analyzed using SWOT and VRIO models to evaluate Tesco's strengths, weaknesses, opportunities, threats, and core capabilities. Porter's Five Forces model is applied to understand the competitive dynamics of the retail sector. Additionally, the Ansoff matrix is employed to explore strategic growth options. The analysis covers supply chain, brand image, employees, and product offerings, providing insights into Tesco's competitive advantages and challenges. This report offers a detailed overview of Tesco's strategic approach and its ability to navigate the complexities of the retail market.