BMP6002 Strategic Management: Analysis of Tesco's Strategic Approaches

This essay provides a comprehensive analysis of strategic management approaches, using Tesco as a case study. It critically compares and contrasts prescriptive and emergent strategies, highlighting their advantages and disadvantages. The essay also compares the SWOT and PESTLE models for evaluating environmental impact on competitive positioning, discussing the benefits and limitations of each. Furthermore, it evaluates the benefits, costs, and risks of using innovation to drive long-term organizational success for Tesco. The analysis is supported by relevant literature and aims to provide a thorough understanding of strategic management concepts and their practical application within a multinational retail organization.

Strategic management

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1......................................................................................................................................3
Critical comparison and contrast to the application of different approaches to strategy.............3
SECTION 2......................................................................................................................................6
4. Comparing two models accessible to the manager to evaluate environmental impact on
competitive positioning of an organization with the benefits and limitation of each..................6
5. Evaluation of benefits, costs and risks of using innovation for driving long term
organization..................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is the ongoing process of planning, monitoring and analysing all
the important assessments for the necessities of the organization. It helps the business in meeting
the essentials needs for meeting the goals and objectives which changes in the business
environment. In this project the chosen organization is Tesco which is multinational retailer also
known as being the largest supermarket chain in UK. This project analyses the concepts and
models which are related to the organizational strategy. In this project the comparison between
the two theoretical model and evaluation of the benefits, costs and risks of innovation will be
discussed for an organization.
MAIN BODY
SECTION 1
Critical comparison and contrast to the application of different approaches to strategy
The strategic management of an organization like Tesco consists of development of
strategy and strategic planning which refers to the long-term direction towards which
organization attempts to achieving competitive advantages. There are different approaches to the
strategy application which are discussed as follows,
Prescriptive Approach :
According to Doyle and Brady, (2018) this approach is the creation of mission, vision and
core values which are stated as the objectives which defines the strategy of implementation. It
shows the intentional planning which is formulated towards the rationale of deliberate intentions.
This approach follows more of a top-down hierarchical structure which is authoritative towards
the management style of the organization. This process is considered to be very linear towards its
strategic analysis which helps in the strategic development which is helpful for the
implementation of the strategy. In this approach design, planning and positioning of the
organization.
Emergent approach :

As per the view of Sarrica and et.al., (2018) it can be that emergent approach which is
strategic of the emerging factor which the managers create in the development of the strategy
and operations decision-making. It shows the implication of strategy which is considered to be
intentional in planning from the top but their emergence is towards the decisions and actions
taken. This is the reason why this approach of strategy making is a more of an interactive,
incremental and unplanned process allowing flexibility and adaptation of the changes in the
business environment.
The comparison between the strategic planning approaches can be critically explained
with the help of the following table.
Prescriptive Approach Emergent Approach
Advantages
Its main objective are set for achieving the
major mission s of the organization (Brandt,
Wagner and Neumann, 2021). It also considers
the different visions which are encouraged for
encouraging the consideration of long-term
performance. In this approach the short-termism
is discouraged as the performance targets are
monitored accordingly for the long term goals.
It can be considered as the strategy which
emerges in incremental differences of the
individual which help in the preparation of
strategic changes that are formed and
implemented simultaneously in this
approach.
In this strategy he statements of vision, mission,
goals and objectives and values are clearly
stated which makes it easier for coordinating
the efforts of managers, strategic business units
and employees if such statement are not
available. This is the reason why this approach
is able to make strategic decisions which creates
enabling for following the given strategic
direction for the corporation of plan and
communication in the organization.
This strategy can be readjusted due to the
flexibility which the organization has
towards the responding in the environment
which can exploit opportunities for surfacing.
It can be considered to be the process which The experimentation of the trail and error

formulates the strategy which involves the
negotiation and harmonization of the different
views which are expressed in the business plan
in this approach.
and learning strategy options are considered
to be the tested strategy of emergence which
is the implementation of the learning that
comes from experiencing the sources of
strategic success and the development of
competitive advantages for the organization.
It is known to be possible only when there
are strategical development in simultaneous
and strategical implementation of flexibility
and readjustment of the changes in the
environment (Turner, Baker and Morris,
2018).
In this approach the employees do not have the
right of making decision. Due to which the
employees are considered to be the lacking
behind which is demotivating factor towards
their business.
Employee motivation is dependent on the
ideas in the organization which is developed
in the lower levels of the company thus, the
organization feel valued and contributing
towards the overall direction of the business.
This is the reason of motivated employee
work hard towards achieving the
organizational success.
Disadvantage
This approach has been known to be very stiff
in the creativity as there are usually associated
of the top-down management skills towards the
organizational structure. This shows that even
the development of different ideas in the lower
level managers always fail to get implemented
or considered.
It is a formal strategic plan which is
considered to be the focus on the short-term
performance and long-term performance
which is the explanation of two the annual
earning of growth focus over where the
organization will be in the upcoming fiver
years. This prediction is not always effective.
The organization can be seen to be deeply
immersed in the analysation of the internal and
It is the strategy of the organization which is
known to be incremental in nature due to

external environment is known towards missing
the exploitation of the opportunities which
come up. It shows that unchecked analysis can
paralyse an organization towards its operations.
which it ties a past ways in which doing
certain things are considered to be more
effective towards the environment which
changes effectively.
It is considered that not all kinds of information
in the business are carried out systematically in
this approach and specially the competitors
moves in confidential and publicly said
management of what is done actually.
It is a purely emergent approach which is the
strategical planning that has no clear
direction and managers which feels so much
out of control. This is the reason why this
approach is difficult for establishment of
target.
It can be said that the top to down management
style approach tends be slow in the adaptation
of the information which is always changing
and is cautiously moving towards the practical
analysation of unpredictable forecasting
(Balzacq, Dombrowski and Reich, 2019).
Even though this approach can adapt to the
changes it never has an outline for what
needs to be done.
In this approach the business planning becomes
increasingly volatile and as a result of this it
becomes more difficult for the business to
benefit in the prescriptive approach which are
constrained by volatility and turbulence in the
business environment.
This approach is also very volatile from the
beginning but can be managed due to its
nature.
SECTION 2
4. Comparing two models accessible to the manager to evaluate environmental impact on
competitive positioning of an organization with the benefits and limitation of each.
Basis SWOT PESTLE
Definition The SWOT analysis is used for the PESTLE analysis is used to determine the

strategic planning and management for
knowing the strength, weakness,
Opportunities and threats of an
organization such as TESCO.
key factors that may put negative or positive
impact on supermarket.
Effectivenes
s
Swot majorly works to define the
internal environment of company,
which is essential for manager to
comprehend.
On the other hand pestle analysis is done for
the major working of the external working
for the organization (Zahari and Romli,
2019).
Duration/
Time
consumptio
n
SWOT is basically less time-
consuming process as all the working
is done with internal factors.
When manager may apply this model is
takes a lot of time to provide outcomes as it
consider as length process.
Application This is mostly applicable at most of
the period and areas for the TESCO as
provides more internal and informative
information (Nandonde, 2019).
Mostly applicable at some point or parts of
the organization as it's not required at all the
times and level.
Dependency Dependent or reliable on the internal
factors strength, weakness, threat and
opportunities and provides more
accuracy in the making goals
accessible.
Its dependency is more on the outer working
political, environmental, social,
technological, legal and economic factors.
Benefits of SWOT-
Understanding Internal Business Environment: The SWOT analysis does an
important work in knowing and understanding of the business from internally to help in the
proper utilization of the available and all the scare resources and knowing the achievements.
Help to determine the impact of varied factors- SWOT concept is used to collect the
key data about a firm such as TESCO as it help to determine the weakness that company and its

manager may effort overcome. As it enable it to know what the threats are and how come these
affect the organization in both the shorter and longer term for the goal achievement (Leiber,
Stensaker, and Harvey, 2018).
Idetifying Opportunities: along with above benefits, SWOT may enable manager to
identify market or business growth opportunities. It may enable them to drive their attention
toward grabbing each chance in effective manner.
Knowing Competencies: The analysis may also provide better understanding about
current and future competitions.
Limitations of SWOT-
Subjective Analysis: One of the major limitation is, truly based on the available data and
resources as if there is no relevant data or records it's not going to reflect the important notes.
Less Clarification: Organization's analyst may give ideas for the strengths and weakness
but how they will manage when the weakness and strength is both a factor together. The tool
don't give a proper or reliable way to deal some of the problems with it.
Benefits of PESTLE-
Strategic thinking: The PESTLE analysis may enable manager of TESCO to develop
their strategic plan that help to eliminate the negative impact of factors, represent by the model.
It may make firm able to develop the understanding about forces that may accessible in the world
of business.
As the company is able to innovate new strategies to overcome all the obstacles for the
organization.
Capitalization of Opportunities: The analysis also does the knowing and transforming
of the opportunities into capitalization as the company uses some new strategic thinking and
develop some opportunities into working strengths and use them to change into profits and
capital for the firm (Parra-López and et.al., 2021).
Better and broader understanding of business environment: The tool give
organization to know or to be proper aware of the working environment as the Pestle's main
work is to know about external environment and change it according to the organization's
betterment by acquiring knowledge about the new laws been enforced, new legislation is being
considering or the ge of the new duties or etc.

Easy to use: Another benefit of the tool is that it is quite easy to apply it to the
organization's framework as it will not take much cost, time and efforts, with the help of
company's analyst any organization process it.
Limitations of PESTLE analysis-
Risk of Failure: Another limitations is that it does not grantee a 100% success as the
working is truly based on the past and available records and working transactions and will going
to provide results according to that.
Risk of Mishandling: Another limitation of the tool that the information which is being
used can be mishandled or can be changed or even the source is not correct or valuable and not
unto the relevancy.
5. Evaluation of benefits, costs and risks of using innovation for driving long term organization
For a business like Tesco bringing innovation in its operations is considered to have the
following impacts in the long term of the organization.
Benefits :
There are certain benefits of developing innovation in an organization which helps it in
the contribution of developing the following,
 It is the best method of creating a solution to the problems which are there in the business
and is also considered to be the major issues which is faced by the organization towards
thinking out of the box.
 This is the best method which helps the business in increasing the productivity (Use
innovation to start or grow your business, 2019).
 It helps the business in the finding new ways in which the organization can increase its
marketing.
 It is the best way in which the market is able to beat the competitors that can effect the
organization in competitive advantage.
Costs :
There is a cost to everything that the business generally does, for the innovation the costs
are considered to be the factors which play an important role in the implementation of the
innovative strategy. For example, Innovation may be the result of buying some assets which can
result in the increase of the costs incurred by the organization.
Risks :

There are different kinds of risk which are involved with the innovation in the
organization. These risks mostly this risk is situated with the failure of the innovation which can
be loss of capital and also cause hindrances in the regular operations of the organization. This is
the reasons the innovation are properly studied and analyses before being implemented (Greco,
Grimaldi and Cricelli, 2019).
CONCLUSION
With the help of this project it can be concluded that strategic management are one of the
most effective way in which Tesco can be able to increase its effectiveness. In this project a
critical analyzation of the prescriptive and emergent approaches to the strategy of the
organization and its aims has been discussed. This project has provided comparison and contrast
between the theoretical model of managing and assessing the environmental impacts of the
competitive positioning. This project has also provided the benefits, costs and risks of the
implementation of innovation in the organization.

REFERENCES
Books and Journals
Balzacq, T., Dombrowski, P. and Reich, S., 2019. Is Grand Strategy a Research Program? A
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Brandt, T., Wagner, S. and Neumann, D., 2021. Prescriptive analytics in public-sector decision-
making: A framework and insights from charging infrastructure planning. European
journal of operational research. 291(1). pp.379-393.
Doyle, T. and Brady, M., 2018. Reframing the university as an emergent organisation:
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Higher Education Policy and Management. 40(4). pp.305-320.
Greco, M., Grimaldi, M. and Cricelli, L., 2019. Benefits and costs of open innovation: the BeCO
framework. Technology analysis & strategic management. 31(1). pp.53-66.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
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Parra-López, C., and et.al., 2021. Digital transformation of the agrifood system: Quantifying the
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Zahari, A. R. and Romli, F. I., 2019. Analysis of suborbital flight operation using PESTLE.
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Online
Use innovation to start or grow your business, 2019[Online]. Available through:
<https://www.nibusinessinfo.co.uk/content/advantages-innovation>