LSC UoS BA - Global Strategic Management: Tesco's Strategic Planning

This report provides a comprehensive analysis of Tesco's global strategic management, examining the business and corporate strategies employed by the CEO and their positive contributions to the organization. It includes an external and internal environment analysis using tools like PESTLE and SWOT, and describes strategic tools and models such as Porter's Five Forces. The report explores how the CEO created and developed strategic planning for Tesco, critically analyzing contemporary strategic issues and synthesizing different levels of strategy. Bowman's Strategies and Ansoff Matrix are also discussed in relation to Tesco's growth strategies, covering market penetration, product development, market development, and diversification. The report concludes with recommendations for Tesco based on the analysis.

Global Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Examine the business and corporate strategies used by the CEO which has brought about
positive contribution to the organisation?...................................................................................3
Undertake external and internal environment analysis ..............................................................4
Describe the strategic tools/ techniques / models used by the CEO of Tesco ...........................6
Examine how the CEO of Tesco created, developed and designed strategic planning for Tesco
.....................................................................................................................................................7
Critically analyse and evaluate the different contemporary strategic issues in strategy, clearly
synthesising between the different levels of strategy used by the CEO of Tesco.......................9
Literature review ......................................................................................................................10
Recommendation .....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global strategic management is the process by which an organization is able to enhance
its various process in relation to global market scenario. In these aspects all kinds of perspective
which is required by an organization is developed. Scope of the perspective is wider as it makes
direct impact upon organizations growth done in more effective way. Nature is dynamic which
makes organizations various perspective improved with marketing style. In this report various
kinds of strategies has been explained with various perspectives of business organizations. Then
in then end evaluation is done over these aspect.
MAIN BODY
Examine the business and corporate strategies used by the CEO which has brought about positive
contribution to the organisation?
Business strategy are those strategy which has been used in order to take decisions and
perform actions which has helped in making goals and objectives achieved by an organization
which makes competitive position to be achieved(Pati and Bandyopadhyay, 2017). These
strategies acts as roadmap of success for an organization like TESCO. Further, the strategies has
been explained in relation to TESCO as follows:
Cost leadership:
These are those kinds of strategies which is used by an organization in order to increase
efficiency over reduction of product costs that helps in balancing industry in relation over
competitors existing within market. In this strategy low price is charged over products which
leads upon capturing market in more effective manner. The CEO of TESCO with the help of cost
leadership is able to achieve higher profit by gaining more in terms of sales. It increases market
stability for an organization like TESCO.
Differentiation:
This strategy is based upon providing product and services with an innovative attributes
in relation to competitors. Further, the main focus through the strategy is based upon uniqueness
which has been brought into ideas to sell products. Tesco applies these strategies only when
proper market analysis is done. Also it helps TESCO by creating brand image and customers
loyalty.
Focused differentiation:

Under the strategy specific and small group of customers are targetted with various products
which helps in making demands of customers satisfied. Through this price fluctuation is created
as per the segments of market which helps in capturing market in more effective manner.
TESCO with the help for the strategy built customers loyalty towards the organization it helps in
making sustainability developed within the growth of organization.
Focused low-cost:
A focused low-cost business strategy is very similar to a focused strategy – one that
focuses on a small niche of customers but with one small difference. This strategy can be
effective for TESCO when there’s competition but competitors are not strong or if a small or
specific segment of customers are capable of creating a remarkable difference in the revenues.
Integrated low-cost differentiation:
An integrated low-cost/differentiation strategy is where a business has differentiated
products that are offered at a lower cost(Oyewo, Vo and Akinsanmi, 2021). This new hybrid
business strategy could be on it’s way to becoming increasingly popular as global competition
increases. It helps an organization like TESCO make growth of organization possible within the
market by providing positive approach towards market conditions.
Undertake external and internal environment analysis
External analysis is based upon different factors like political, economical, social,
technological, environmental and legal. These factors have drastic impact upon organizations
growth and stability within an organization. The first factor is political which is related to
policies formed by government that impacts organizations working. Organization like TESCO is
impacted through this in a way that if tax increases then product price increases making sales of
the organization reduced making market loose its value. Under economic factors various kinds of
economic perspectives like unemployment, import and export rate, inflation and deflation rate
has been covered. The factor impacts TESCO as import rate increases then demand for product
decreases making supply chain to be impacted within organization like TESCO. Another factor
is social that is related to trends, taste and culture within country. It impacts TESCO in a way
that if the organization is not able to develop products as per the needs of customers then
customers base for the organization is lost which directly impacts organizations product selling
capacity resulting in making manufacturing and production ability decreased for the organization

like TESCO. Technological factors they are based upon making an organization deal upon
various kinds of aspects which is based upon technological development taking place within
country (Lavery, 2019). If TESCO is not able to follow technological changes then its delivery
process would nit improve which makes consistency of organization lost in effective manner.
Environmental factor they deal with environmental laws and policies that has been formed
within Unite Kingdom. In relation over organization like TESCO they are required to follow
environment policies which helps in creating balance in relation to environmental awareness
which helps in making goodwill of organization developed in more effective manner. The comes
legal factors which are bound to follow by an organization like TESCO helping in building
proper legal structure and protect from illegal activities.
SWOT analysis of Unilever-
The analysis is based upon various aspects which helps in making an business
organization ensure about long terms success for an organization. Under it strength, weakness,
opportunities and threats are analysed. They have been explained as follows:
Strengths of TESCO
Top of the mind brand recall among customers: It has been long term that makes organizations
like TESCO establish brand name within the mind of customer. This made organization become
first choice for customers.
Weaknesses of TESCO
Huge dependence on retailers: This is one of the biggest disadvantage which has direct impact
over customers. Through this direct impact is created over behaviour of customer within retail
industry.
Opportunities of TESCO
Millennial generation and their lifestyle needs: Now a days, millennial generation is becoming
a significant part of the marketplace of TSECO and by noticing and fulfilling their wants and
preferences they can achieve a rapid growth and higher revenues for the business.
Threats of TSECO
Competitors are no less: There are various kinds of competitors for TESCO like ASDA and
Sainsbury. This makes customers percentage reduced for organization.

Describe the strategic tools/ techniques / models used by the CEO of Tesco
In order to make organization like TESCO attain stability within market Porters Five
Force is required to be used. Since TESCO is one of the most popular retailer supermarket brand
and has been competing at global level in relation to consumer goods. Poter's five force model
has helped over understanding needs which makes tactical popularization done in relation to
power of competitors. This is powerful management of tools which helps in making knowledge
develop in relation to external factors with business environment. This makes analysis done
about competitive rivalry in view of bargaining power of customers. It is required by TESCO for
ensuring long terms success within external factors. Competitive rivalry: TESCO is an multinational organization that covered all over the
world. This is based upon making competition performed with strong and high. Its
competitors are other retailers which are ASDA and Sainsbury. Also there are various
competitors which makes launching done equally best within the performance and
attractiveness of products within industry. Low and zero switching costs has been
allowed by buyers. Threat of substitutes: It is all about the research of consumers' nature is that they want to
try alternative and new products at least once in their life span. They will surely go for
the alternatives that is available in the market in order to convert their mind from
Unilever. By considering the price, products and quality of the goods, a consumer can
easily shift to another brand. But the consumers who are addicted to use the TESCO
products will also think about the reputation and brand name in the industry. Therefore,
the threat of substitutes of TESCOis high(Ji-Hyun, 2021). Threat of new entrants: As the TESCOspread its business throughout the world, the
threat of new entrants will be very low for the company. These things majorly depends on
the society, place and with several range of people, it will vary. In the countries and states
which are commonly go for the working on brand reputation and name will never go for
the new entrants. Hence, the threat of the new entrants is low as consumers will rarely go
for the new brand. Bargaining power of suppliers: It is quite common that all the organizations in consumer
food products and personal products purchase their raw materials from countless number
of suppliers. Suppliers are very dominating in the market as they can reduce the profit

margin of the Unilever. Powerful suppliers use their negotiating power to get higher
prices from the companies. The overall impact of suppliers' bargaining power is that it
can reduce the profitability of the company.
 Bargaining power of buyers: Customers are often demanding a lot in the market. They
are always looking for the offers in which they will get maximum benefits by paying the
minimum amount as possible. This delivers high pressure on the chosen company as it
affects the long-term profitability. Therefore, the smaller but powerful customer base is
higher the bargaining power of buyers and also higher the ability to seek raising offers
and discounts.
Examine how the CEO of Tesco created, developed and designed strategic planning for Tesco
Bowman's Strategies:
 Low price and low value added: It helps in developing focus upon reduction in cost
which also reduces quality of products. Low price: This strategy helps in making an organization for reducing cost of goods
which helps in boosting there production(Inci and Saraoglu, 2019). Hybrid: This is an effective strategy which adds value upon products and services of an
organization. Under it both low price and high value of required to be delivered over
product. Differentiation: Under such strategies organizations performs product differentiation
rather then price factor. Focused differentiation: The strategy is best related over high end brand and helps on
making increase in organizations capacity. Risky high margins: This is risky strategy within which an organization puts high price
upon products. Monopoly pricing: This is one of those organizations that creates monopoly within
business organization.
 Loss of market shares: In this lot of customers attract an organization which makes
losing its market shares which makes price stability achieved.

Product grid is one of the most effective framework which makes sustainable sourcing
making growth and development created upon opportunities leveraging both external and
internal aspects. In relation to Tecso Ansoff matrix has been done allowing four generic
strategies for growth explained as follows: Market Penetration: This is strategy which is based is used in order to increase market
share within the current market. Since it contains sales that has been driven upon
approach within existing market. It is based over sales driven through business
environment. It can be done by redirecting consumer by boosting sales with the help of
touch points, enhancing dealer network, boosting of basket shares with consumers total
spending. This makes life time value increased(Cuervo‐Cazurra, Doz and Gaur, 2020). Product development: In this strategy organization is focused upon making development
of product done which makes creative and innovative aspects developed within product.
In this major focus is over improving offering and launching of products in new market.
Further, through such factor an organization makes significant product line to be
launched regarding new product for attracting customer base related over organization. Market development: The strategy has been based upon organization while entering into
new market for expanding operations and business. Through this an organizations is able
to make aim to be stayed within domestic market. Also in the strategy factors based upon
organization development is done.
 Diversification: The firm has been adapting the diversification strategy through
unrelated and related means of diversification. The ownership and acquisition of several
subsidiaries are done to have unrelated diversification by the firm. Tatcha LLC, Seventh
Generation and Dermalogica are some of the unrelated diversification. In related
diversification, the nonstop growth in the product line is done from the perspective of
related diversification.
These strategies has been helping in making development done in relation to sales which
helps on making promotion done in successful manner. Also the strategy makes TESCO develop
various aspects helping in making product awareness created to all customers. Through these
strategies an organization is able to develop proper structure which makes organizations develop
large customer base. Further, it makes organizations like TESCO reach its products to customers

through advertising. Through advertising TESCO product reaches customers as they get to
known about various range of products which has been sold by an organization.
Critically analyse and evaluate the different contemporary strategic issues in strategy, clearly
synthesising between the different levels of strategy used by the CEO of Tesco.
Business Strategy: Customer Experience
This is the very first strategy which is based upon customers which experienced by an
business organization. It has been concerned over an organization making approach developed
within market place. Also these strategies makes an organization work upon customer
experiences through allowing customers base to be formed within the organization. Under
business strategy main target is upon customers and various aspects related over it. Customers
experiences is developed by an organization like TESCO throug improving product quality and
making products more attractive in nature (Berman and Dalzell-Payne, 2018).
Operations strategy: Business process
These are those strategies which helps in making organization develop various
perspective regarding organizations process. In this business aspects with process existing within
business related to production and manufacturing is covered. TESCO with the help of these
strategies makes its process run in smooth and effective manner. Also organization should used
various kinds of things which helps in making organizations production and capacity increased
helping in making organizations improve more effectively.
Transformational strategy: Technology
It is based upon those aspect that deals with various kinds of development taking place in
relation to technology which helps in making organization like TESCO use new technology like
digital platforms making business achieve goals and objectives in more effective manner.
Through development of strong technological network organization is able to make delivery and
stability achieved within organization process. In recent time digital technology has been
promoting more making an organization like TESCO adopt digital perspective. Through digital
process e-commerce become more popular which made online delivery system of TESCO
improved making product reach to doorsteps of customers making organizational structure

enhanced as per customers needs. TESCO helped should use digital technology making
organization's performance improved.
Literature review
According to ….((Baumgartner and Tippmann,) With an intent to develop a strategic
management plan, a company can use a range of information and data through environmental
and competitive analysis. Nevertheless, the macro environmental analysis is done through pestle
framework where in order to get the knowledge about competitive analysis Porter's five forces
model seems to be very beneficial. Also, the company needs to consider all the facts in order to
work in the most effective manner. It is examined that company's strengths are more than its
weaknesses. It is very beneficial for the company to be focused on its strong areas that can create
new opportunities for the expansion. Additionally, the weaknesses of the organization is
common to other companies in the retail market. It is also observed that Unilever is doing very
good at online platforms to deliver its messages and attract more customers. Such strong areas
may be tailored to acquire growth and expansion opportunities. Overall, the company is well-
established in the global market. pestle analysis is a significant tool to examine the different
factors available in macro environment of business. These factors are political, social,
technological, environmental, economical and legal. This facilitate an insight about the role of
external macro environment within the context of Unilever.
Recommendation
Through this discussion it has been marked out that an organization like TESCO is one of
the most popular part of an organization within retail sector. In this various factors is covered
that makes organizations aspects covered in more effective. TESCO has used theories which
makes its various process improved in more effective manner. Under these strategies both
internal and external factors are covered making organization achieve all goals and objectives
that has been set by an organization. This makes TESCO growth and stability achieved with
more effectiveness.

CONCLUSION
From the above discussion it can be concluded that global strategic management is the
process by which an organization is able to make goals accomplishment possible at global level.
Through the strategy business organization is able to grow within market. It makes organizations
uplift there sales through which sustainability is achieved. In this report various kinds of theories
regarding various aspects related to organization and its development covered in more effective
manner. These theories has made organizations policies improved in more impactful manner
which makes organizations like TESCO enhance its global marketing capacity making
organization deal with issues related to global market.

REFERENCES
Books and Journals
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strategy: Increasing regulations and countervailing strategies.
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