LSC UoS Global Strategic Management: Tesco Case Study & Strategies

This report provides an analysis of global strategic management, focusing on Tesco as a case study. It examines the business and corporate strategies employed by Tesco's CEO, including product differentiation, growth strategies, and online business strategies. The report includes an internal and external environment analysis using SWOT and PESTLE frameworks, identifying strengths, weaknesses, opportunities, and threats. It also discusses strategic techniques, such as Porter's generic strategies (cost leadership and differentiation), used to improve business performance. The report further explores strategic planning for Tesco, modern strategic problems, and real-life corporate examples, offering recommendations and a conclusion. The analysis covers political, economic, social, technological, legal, and environmental factors affecting Tesco's global operations.

Global Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Business and corporate strategies used by the CEO for positive contribution to the
administration..................................................................................................................................3
Internal and External environment analysis for a business framework:..........................................4
PESTLE Analysis of Tesco:...................................................................................................5
Strategical Techniques to improve the performance of business. ...................................................6
Strategic Planning for Tesco............................................................................................................7
Different modern strategic problems by synthesising between different levels..............................8
Various strategic situations faced by Tesco...........................................................................8
Some Real life corporate examples .................................................................................................8
RECOMMENDATION...................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and journals...............................................................................................................11

EXECUTIVE SUMMARY
This report is all about the strategic management at a global level in which a firm is created to
spread out worldwide. It is all about the CEO of a business who uses various strategies for the
great involvement in an organization by performing Pestle analysis to analyse the internal and
external environment, various techniques to increase the business performance. This will also say
about the strategical tasks, its issues and solutions with some examples.

INTRODUCTION
Global strategic management permit firms to take benefit on competitive opportunities just about
the worldwide. It is a strategy which a company create to spread out into the worldwide market
which gives advantage to the company in various ways like improving the brand awareness in a
global market and so on. Tesco has been taken as the fundamental firm which was founded by
Jack Cohen at United Kingdom. This is a international firm founded in 1919 contains various
firms around the world and is known for selling food and non-food products (Cherepovitsyn and
Ilinova, 2018). This file covers strategies related to the selected business, analysis of internal and
external environment and techniques used by CEO to increase the production of organisation.
Further, it will cover different strategical problems with various real life examples.
Business and corporate strategies used by the CEO for positive contribution to the
administration.
A business strategy refers to organisation that starts to accomplish its required goals for a long
duration of business planning. Corporate strategy is incidental to the total outcome and a scope
of business to manage all expectations of a investor.
Some strategies which are utilised by CEO of Tesco are discussed underneath.
Tesco is using different strategic preparation for the improvement and growth of a firm. The
main concept used by CEO was to sell commodities in a low cost which influence Tesco to force
itself by making a great income and profitable for it. Tesco is also using corporate level
strategical planning which is related to the result for being affiliated to make a value of a
contributor by an inventive customer which is focusing on the preparation and are connected to
the cost, loyalty, commodities and its stores.
Product Differentiation Strategy: Most of the firm are using this strategy when these firms have
an advantage of competition like good quality, better services and so on. In case of Tesco, its
CEO use this strategy to set itself separately from the competitors in the market. This will help
the firm to make its brand loyal for the customers by offering a better quality and service to
them(Dhir, Dhir and Samanta, 2018).
Growth Strategy of new Products: This strategy involves the introduction of new commodities
which are entering in the market and includes new characteristics to the already existing market.

In context to Tesco, it is constantly adding new types of commodities that makes the competition
tough for all the competitors and for keeping up with them.
Online business strategy: At present, each company is utilising online strategic plan for the
marketplace and to the variety of commitments with consumers. CEO of Tesco has selected this
scheme to spread out the industry in this worldwide by using different ways of digitization world
like SEO, social media such as Facebook, online advertisements, and many more which assists
the worldwide to sell product in entire world and change it into a vast enlargement to make a
great advantage (Roe, 2019).
Stability Strategy: This is when a firm can find when a company should continue in the current
business and is doing actually well in the firm. In case of Tesco, CEO use this strategy when
similar commodities are served to the consumers in the business and concentrate on the
improvement in the performance.
Internal and External environment analysis for a business framework:
SWOT Analysis of Tesco:
Strength: It is an approval inner process or behaviour of company which helps the company to
live and improve their advantages of competence. In context to Tesco, it is a largest food market
in UK and has an identical efficient system or link of businessperson which is very beneficial
for any of the firm. It is also very extended, varied and distributed in mostly all the countries.
Weakness: It is an inner asset which perform in the opposition for a healthy objective. It can help
in identifying the parts of improvement or the places in which a company has to look after about
all the financial loss and disadvantage. In case of Tesco, sometimes the economic fault can be a
large weak point of company because of their advanced responsibility and financial causes. It
will stop Tesco to do at its top-grade level and the region which are needed to modify will be
highlighting.
Opportunities: It refers to all the external elements that give a better advantages of competence
to an administration. Through this, a company will turn to know about various opportunities
present in the industry for its progress, improvement and improvement which will assist the
company to develop in the market. In case of Tesco, it has a better opportunity of improving the
work in the future (Belderbos, Park, and Carree, 2021). As already it is a growing trend of a
market and spreading in mostly all the countries which has a huge ability to grow. It also

comprise its personal mobile application for those who want to buy online so that they can add
extra attributes into it to make it updatable.
Threat: It contains all the points which are unsupportive and dangerous for the company. These
impacts will damage the commercial enterprise such as problems that are connected to the
resources included in moving commodities from a supplier to its consumers, shifting of the
market and many more. Due to this factor a company can examine the negative point through
which a firm is not capable to live in the industry. This element helps a founder to easily
improve and figure out all its problems. In case of Tesco, there are various threats which can
damage the company such as the availability of different competition such as Marks & Spencer
who can easily take the position of Tesco in the industry (Guillotin, 2018).
PESTLE Analysis of Tesco:
Political: This element is affecting the system of government as if it is interrupting with the
economical system to any level then this factor will be an essential part. In case of Tesco, this
firm lead itself across the worldwide, these factors at an international level affects the
functioning and achievement of a company which includes tax, stableness and so on. As Tesco
plays a very crucial part in creating a opportunity of job, this leads to a huge help in the growth
for the supply of its products and distribution of the manpower.
Economics: This is a factor which are definitive to the practicality of an economic system which
can straightaway impact the company and has a vibrating effects which are for lengthy period of
time. Also it will affect the purchasing capability of a consumer and that may results to the
changes in transporting the models for that profitable system. In case of Tesco, this factor will
find out the net income, cost, economic process of a firm so it should be watchful for any of the
changes made in the planning.
Social: These factors include ethical needs, growing rates, arrangement and many more. These
are very crucial and helpful for a company to design in a better manner for their logical state in
market and its planning. In case of Tesco, as CEO has decided to provide a number of
commodities in market and UK itself is going forward and exploring at different directions in the
market so customers are also moving for buying at a bulk rate. The type of products and work
offering by the customers is mostly impacted by the belief and attitude which leads to affect done
by societal acquisition. Tesco is accommodative with all changes by living with need of all
products by consumers (Barno, 2021).

Technological: At present, most of firms are affected by changes in technical environment. This
alteration may provide risk, possibility and cautionary to companies. This factor is not only
active but it will make an ample of opportunity for a company to start. In case of Tesco, different
possibilities in the market of Tesco are enhanced because of its progress. The primary
technological factor running for this firm is online shopping and an individual serve of inspecting
the points. Tesco has also provided a better and effective product in the market which helps the
consumers to choose their commodities with their own choice.
Legal: This is a factor that affects company and impact a manner of managing the firm. All the
companies should have a total understanding of lawful environment in which it has to work as
these factors may recognise its success or failure (Strange and Zucchella, 2017). This factor will
also assist CEO of Tesco in the business activity of their firm and allow them to experience the
disadvantage of there being in the name of their individualist firm. Government policies are also
impacting the working presentation of Tesco which decrease the price of the supply they
purchase in accordance with the quantity they spend on the food market.
Environmental: This factor concerned with the effect of near area and an impact of
environmental features which is really essential when it is viewed from all the ecological point of
view. This investigation forms the CEO of Tesco watchful for the relation among the company
and its environment which keeps them well-known. With the increment of force on the company
to manage all the issues affiliated to the environment and to observe the structure of working
which could benefit the society. Tesco is also trying to lessening all the waste of materials
generated in their stores with growth of social awareness which is accurate for all customers.
CEO of Tesco administered to work out all the tough problems by using a business model
which is a process and a fundamental portion. This will function different strategic preparation
and leader in an administration. The choice of a business model is mutualist on the organisation
structure of Tesco, its total planning, mode of thought process by communication their
recommendation to the clients of Tesco which will assist the CEO to aid in betterment and create
the improved net income of a firm.
Strategical Techniques to modify the development of business.
A strategic technique used by the CEO of Tesco for improving the presentation of the firm is by
using a theory of Michael Porter.

This scheme refers to determine the mode in which company can proceed for taking part with
other challengers in the marketplace (Emeagwal and Ogbonmwan, 2018).
Cost Leadership: It is achieved by companies when it provide the products with a really low
price. To fulfill this thing, a company needs to direct things like purchasing those products which
are of less price, to use personal transportation service, short qualitative dispersion transmission
and so on. Tesco has gained a huge quantity of supply and also an essential sharing of market
and also by giving quality products to all the customers with a very low amount in the market .
Also, this factor is pursued by the making the companies but technology firms cannot owed
because of the price of production and costing of material which is very advanced.
Differentiation: This is a method of transporting a change in the design, packaging of products,
taste and different other sections of a product to make it very competitory in an industry and
through which there is also a net income of achieving a reward of competitive advantage
(Patvardhan, 2017). Tesco utilized this by distinguishing itself from all competition by going
back from advertisement price which deals on few products.
Focus: This factor implies the referral point of a narrow part to supply a good service for the
customers. This strategy is attended by a new company who want to change the niche market .
For Tesco, this strategy is not applicable as it provide several contrasting segments endlessly and
also in different parts of the worldwide.
Strategic Planning for Tesco.
A business strategy is an act of any company with various system of rules for a long time period
created to achieve a set of aims and objectives. It is concerned with three sections: investigation,
integrating and execution (Ikegami, Maznevski and Ota, 2017). Various strategic tools has been
in use by the Tesco which includes main aim, visual sense, outcome and competitiveness.
Main aim of Tesco to make a strategic plan is to provide good and high value to customers
provided in the industry, the administration in which an individual perform, their loyalty and
related faculty for the growth of the company. Tesco has functioned the top-quality and came in
the position of topmost international firm as it has performed very difficult for making its
personal business good and customer friendly. They have also performed very good to supply a
good comfortableness to the consumers like giving an online app through which customers can
run the shop by posing at their place.

Tesco has also utilised all the plan of actions, explanation and investigation to determine all the
disadvantage, capability , imperfection, and so on. This will lead to the improvement on that part
which is very weak and firm has to work in a challenging way to achieve the aims and objectives
of the company (Dzikowski, 2018).
It has also used some strategic models to accomplish the goals and outcomes of the selected
organisation can be taken as blue ocean strategy which is designed to bring products to markets
with little or no competition. Therefore, research focuses on finding niches of Tesco that can be
used for profit. For example, few companies offer products that people are interested in, and
there is little or no price pressure.
Different modern strategic issues by logical thinking among different levels.
Various strategic situations faced by Tesco.
There are various modern strategic problems faced by company at various measures which also
impact competition when it performs any of a task in the working environment.
Problem related to the E- commerce instruments: This problem is faced by the Tesco as this
company has all the methods connected to the computing system of selling and also paying cash
for all products. It is also taking a restricted amount of electrical cost system which makes it very
weak as each of the customers are utilising various structure to transport the medium of
exchange (Kern and Gospel, 2020).
To understand the trend variation in other nation: Tesco has developed very quickly in various
nations. But at some places there are various ethics, practices and kind of direction which the
customers are asking from company. According to the Porter, there is a huge competence in the
marketplace as different firms are coming in market and they are giving everything in
accordance with the market trends and ethics running in different places.
Some Real life corporate examples
Apple: Nowadays, this is a most victorious worldwide product trade name. This product is using
the distinctive strategic plan by considering something fresh to bring in the market. This can be
a huge danger for the name and it has achieved a huge happening for this in the industry.
Cocoa- cola: This is a premier and a well best-known example of a brand using a global market
strategy. The main strategy of this firm which is working in the market is its bottle functioning
which is very unique and easy to identify them (Albarran, Mierzejewska and Jung, 2018). It has

also concentrated on the universal beliefs that will vibrate across the worldwide like sharing and
happiness.

RECOMMENDATION
It is recommended that Tesco should utilise various strategies of using the podium of E-
commerce by attaching some extra characteristics into it which create the comfortableness and
easiness level of a customer. As they are facing various problems in the amount because of small
number of alternatives available so they can modify the pay alternatives in the usage which is
more cost-effective for all customers. Tesco should also perform on various tendency and ethics
of all nation in the market by keeping public relationships with consumers in the industry.

CONCLUSION
It is concluded from the above report is that mostly all the parts of nation where the products are
sell out which is also again at a huge number. As the emergence of fresh market which refers to
the large number of selling and a very important part is that also from the same products.
Businesses also usage various schemes to achieve all the objectives of an industry and to
increase the productivity and net income in the company.