Strategic Management Report: Tesco's Strategic Analysis

This report offers a comprehensive strategic management analysis of Tesco, a UK-based retail giant. It delves into the relationships between business, corporate, and operational strategies, emphasizing the importance of monitoring environmental changes. The report utilizes tools such as PEST analysis to evaluate strategic options, recommending diversification as a key strategy for Tesco's growth. It explores critical success factors, identifies change agents, proposes a suitable organizational structure, and develops a monitoring and control system. Furthermore, the report examines change management models, recommending a specific model to support the identified strategic options, and discusses leadership skills essential for successful change implementation. It also addresses potential risks during implementation and provides a review of the effectiveness of the strategic plan. The report highlights the importance of adapting to market changes and utilizing technology to enhance customer experience and employee engagement.

Strategic management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
Critical evaluation of relationship among business, corporate ands operational strategies in
business........................................................................................................................................1
Application of different strategic model and tools in order to recommend strategic options for
organisation..................................................................................................................................1
Evaluation of critical success factors and assumptions underlying the strategic options
developed by company................................................................................................................2
Recommendation and justification of strategic options and accompanying of business
objectives.....................................................................................................................................3
Identifying the key change agents and proposing a suitable structure of a company..................4
Developing a monitoring and control system in order to implement the strategic plan..............4
Design of key success indicators in order to monitor implementation of strategic plan.............5
Distinguishing potential risk during implementation..................................................................5
Review of effectiveness of strategic plan....................................................................................5
Task 3...............................................................................................................................................6
Evaluation of usefulness of change manage models and recommendation of specific model in
order to support strategic option identified in above task............................................................6
Explanation of how could a person can be a change agent and also identify different types of
leadership and change agent skills in order to display change in successful manner..................8
Indicative content in specification...............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management can be defined as continuous process related to monitoring, planning,
assessing and analysing different requirement of firm to meet goals and objectives (Barbosa,
Castañeda-Ayarza and Ferreira, 2020). There are different types of changes occur in environment
of business and it is important managers to monitor these changes in order to ensure success of
firm. This report includes analysation of Tesco which is a UK based retail merchandise stores. It
is one of organisation which is providing its service in different countries. This business is
providing its service on both online platform and its physical store. This project repot includes
description of strategic management plan. Moreover, it consist reflection in context to implement
changes in organisation.
MAIN BODY
TASK 1
(Covered in PPT)
TASK 2
Critical evaluation of relationship among business, corporate ands operational strategies in
business
There is important relationship among business strategies, corporate strategies and also
operational strategies as it helps to attain goals and objectives in future period of time. Goal of
business operational strategy is on is to make decision related to long term plan and also mission
of firm that can be attained by manager of company (Barney and Mackey, 2018). Tesco is one of
large organisation which are making decision for improving operational strategies that assist
them for purpose of attainment of goals and objectives. These the efforts made by company helps
them for improving efficiency of employees and their engagement with operation of firm.
Application of different strategic model and tools in order to recommend strategic options for
organisation
There are different types of strategies model available which helps firm for analysation of
different types of strategic options. In order to analyse strategic option, Managers of Tesco can
use PEST analysis. Explanation of this tool in business can be mentioned below:
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Political factor: This factors consist different type of rules, regulation in business that create
negative impact over offering of company. There is political stability in environment of UK
which create opportunity for Tesco as they can expand their business operation (Barney, 2020).
Due to pandemic, government has made changes in rules and regulation and all these can be
adopted by firm which create various challenges for firm.
Economic factors: It is another important factors which create impact over business. It consist
different types of inflation rate, tax rate and many others. Due to pandemic situation, business is
facing various issues in economy of UK. Pandemic create negative impact over purchasing
power of people which does not allow people to spend money over their products and service.
UK is one of developed country which has skilled and talented labour that create opportunity for
business of Tesco.
Social factors: It is another important factors as it is essential for business to understand needs
of its customers. Due to pandemic, there is increasing awareness of health among people which
create negative impact over profitability of firm. It is also important for business to consider this
factors while operating in market. These social factors helps managers of Tesco to understand
preferences of customers (Bodrunov and Plotnikov, 2019).
Technological factor: It is another important factors which create various opportunities in
market. It consist advancement and upgradation of technology which provide competitive
advantage to Tesco. There are different types of software and technologies are adopted by Tesco
which create opportunities for business.
On basis of above discussion, it can be recommended to business of Tesco should adopt
diversification strategic option in business. It can be done with saturation of existing market and
can diversify its products in market and new production. With adoption of technology business
can improve efficiency and also expands its products in different market. It is also important in
order to make check out provide more convenient and also enhance experience of customers. It
also helps business to increase marketing share of business.
Evaluation of critical success factors and assumptions underlying the strategic options developed
by company
There are different types of strategies options to be adopted by Tesco among which
diversification is one of effective option. There are different success factors for adoption of this
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strategic options in business. Explanation of these factors in context of business are mentioned
below:
Increasing profit: Adoption of strategic option provide opportunities to business to improve
their profitability. It is also important for business in order to introduce somethings new and also
to enter in market which allow firm to increase its marketing share. Also adoption of innovation
in existing products will enhance experience of customers (Chaudhuri, Leiblein and Reuer,
2021).
Improve employee engagement: It is another success factors for adoption of this strategic
option in business. Technology makes it easier for employees to work and also increases their
productivity. It will also engage employees with working of company.
Improve talent acquisition and retention: Adoption of innovation in business also improve
experience of work of employees which will allow Tesco to attract numbers of talent candidates
in business and also to retail them for long term.
Recommendation and justification of strategic options and accompanying of business objectives
On basis of different types of analysis, it can be recommended to business of Tesco that
diversification is best suited option for them. It is important in order to expand business activities
in market where firm can earn more profit. It is also essential for business as it allow them to
make improvement in existing offering by adoption of technology which is essential in order to
improve experience of a person.
Identification of change factors with completing a force field analysis for selected organisation
The analysis of force field is considered effective in managing key tasks and functions of the
organisation. The force field analysis is a type of strategic tool which helps a business entity to
develop focus on key actions according to the situation. This approach helps the company in
order to maintain key operations with more responsibility and ethics (Dzwigol, 2020). The
decision making is also facilitated with the help of force field analysis. The force field analysis
of Tesco is mentioned below:
 Analysis of the situation- It is the primary stage in force field analysis which helps in
increasing the business strength. The analysis of situation is necessary for taking into
consideration key aspects of situation and develop the approach of force field analysis
further.
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 Setting objectives- In the secondary stage a business organisation sets key objectives in
order to achieve them with the help of analysing the key situation. In the recent times, it
is important for the organisation it is essential for the Tesco company to focus on setting
targets and goals (Halachmi, 2019).
 Identification and evaluation of forces- In this phase of force field analysis, a company
identify key drivers of different forces which are attached with the situation. In the
evaluation of forces the Tesco company can take help of strategic and planning
framework.
 Create an action plan- The action plan must be set by the company in the final phase of
force field analysis. Action plan involves focus on taking crucial steps to deal with the
situation in a precise manner.
Identifying the key change agents and proposing a suitable structure of a company
The change management is necessary part of a company which helps in increasing the strength
of the business. It is essential for the Tesco company to consider key aspects of change in order
to develop best business practices. The key change agents like professional management,
contemporary business executives and other management related dimensions impact on the
functioning of the company. In order to deal with the aspects of change management it is
essential for the company to develop key strategic actions (Keding, 2021). The functional
structure is one of the most suitable structure for the Tesco company in order to lead the
marketplace. This structure of the company will help it to gain competitive advantage as it will
facilitate hierarchy and decision making. The functional structure will link key departments of
the business like human resource, marketing, finance and operations management.
Developing a monitoring and control system in order to implement the strategic plan
The monitoring and control system is the most crucial part of a strategic plan of Tesco company.
The monitoring and control system should be enhanced with the help of key planning tools.
Company must also develop a focused approach in development of supervision and control over
key operations. In order to grow more at the marketplace, it is essential for the Tesco company to
take assistance of information and technology. The monitoring and control system should be
hybrid and high tech in order to maintain key operations in a precise manner. The company can
also develop strategic approach in maintaining key operations along with monitoring them with
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the help of monitoring tools (Koseoglu, Law and Dogan, 2018). The company can also develop
systematic framework to establish major supervision over implementation of strategic plan.
Design of key success indicators in order to monitor implementation of strategic plan
Tesco is one of organisation which his adopting effective strategic plan for their organisation. It
can measure success of its plan with monitoring of success indicators. These success indicators
can be results in profitability of firm. Tesco is making efforts in order to adopt strategic option is
for purpose of increasing its profitability in market and also to get success in market. Another
important indicator is customer satisfaction as it helps firm to retain customers with firm for long
term (Kumar, Pandey and Mukherjee, 2021). In order to maintain customer satisfaction, focus of
firm is on understanding needs and wants of customers.
Distinguishing potential risk during implementation
There are different types of risk associated with a strategic option or with new strategy which
create negative impact over performance of an organisation. It is important for business to
identify this risk before implementation of new strategy. Risk to be included in business are
competitive risk, change risk, governance risk, regulatory risk, financial risk and other things.
Some times strategy can result in failure, due to which firm needs to face loss of funds and
efforts of firm which is considered as financial risk (Makadok, Burton and Barney, 2018).
Strategy also sometimes creates negative impact over competitiveness of firm due to which
business is unable to compete with other firm, it can be a competitive risk. Sometimes adoption
of a strategy can also results in reputation of firm. Managers of Tesco needs to adopt all these
risk while implementing a strategy in firm.
Review of effectiveness of strategic plan
In order to review strategic plan for firm, it is important for business to review vision and
mission statement and also its impact over decision making of company. Business also needs to
review their current strategic plan along with analysation of different opportunities and threat
factors present in business. In order to review plan, manager of Tesco also needs to consider
things which have been missed by them and on basis of it, they revise these plan. Managers of
Tesco also communicate these strategies with different level which allow them to review the plan
on regular basis. For reviewing it, business managers can also measure different performance
measure in order to analyse their performance.
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Task 3
Evaluation of usefulness of change manage models and recommendation of specific model in
order to support strategic option identified in above task
Change management can be described as one of systematic approach that deals with transition as
well as transformation of goals, process and technologies in an organisation. Purpose of change
management is to implementing new strategies in business for purpose of effecting change,
helping people to accept changes and also for controlling changes. In order to adopt change in
effective manner, business needs to consider how adjustment and replacement create impact over
testing of business. Change management process considered as an important component in order
to implement a strategy in business (Mariina and Tjahjadi, 2020). All the changes made in
business create impact over success and failure of strategic implementation. For purpose of
implementation of change, business consider different components like scope, schedule, quality,
cost, risk, communication, human resource, procurements and other things. There are different
benefits of adoption of change management to business of Tesco. Some of these benefits in
context of company is mentioned below:
Act as motivators for progress: Change management is one of important practices to be
implemented in business. It is essential for purpose of managing change in an organisation in
effective manner. On basis of it, firm can take advantage of introducing somethings new in
market which results in progress of firm. Change management motivate these progress in firm
and act as motivator for purpose of progress of firm (Nagel and Aviles, 2021). It is also
important for firm in order to respond to demand of customers. Different types of changes occur
in demand of customers due to change in trends, preferences and other things. Due to this,
business also needs to make changes in their organisation.
Improve efficiency and effectiveness of firm: Change management is also one of important
component that create various opportunities for business. It is important in order to ensure
implementation in organisation in a manner that will create positive impact over working
efficiency of employees. For this, manages of Tesco helps employees to accept changes in
effective manner and allow them to accept changes. It allows them to work in less time and helps
these employees to improve their productivity. It also helps firm to avoid delay in production
activities and also allow managers of company to align resources of company with changes.
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Reduce time for implantation: Effective change management also helps firm like Tesco to
implement changes in business without any delay. It is important for business in order to get
advantage of first mover in marketplace and also helps them to capture maximum marketing
share. It is also important in order to reduce chances of failure in business (Newburry,
Deephouse and Gardberg, 2019). In effective change management practice business analyse
changes of failure and work over it in order to minimise t. it also includes staff members and get
their support for implementing change which allow firm to implement changes without cause
any delay for convincing staff members. On basis of it, employees also feels and secure which
allow them to provide support to this process of change management, on basis of it, it is easier
for managers of Tesco to overcome of challenges and response to problems in effective manner.
In order to implement changes in strategy of business, Tesco can adopt different types of change
model. But among which, Lewin’s change management model is best suited to situation of
company and helps them to implement change in effective manner. Explanation of this change
management model in context of Tesco is mentioned below:
Change management model was introduced by Kurt Lewin in the year 1950s. It is one of change
management mode that provide understanding of change in business which can be described
under three stages including unfreeze, transition and freeze.
Unfreezing: It is the initial stage of change and is also considered as critical stage in change
management process. It is a stage which create impact over willingness and readiness of
employees for purpose of change and realise them that they needs to now move from their
existing comfort process into a transformed situation (Rascão, 2020). In this stage, manages of
Tesco needs to make different members of organisation about needs of change, motivate them
for purpose of accepting change in order to get positive outcome in business. This stage is one
which require proper communication in order to get desired result and also allow people to be
involve in change process.
Change: It is another stage which is considered as transition as well as stage of change
implementation. It helps firm in order to accept new ways of doing same work. People in this
stage are unfrozen and it helps to implement actual change. It is a stage that require proper
communication, planning and also it encourages individual involvement for purpose of accepting
changes. It is not a simple stage as there are different uncertainties occur in this due to fear of
people, image of adopting change and others.
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Freeze: It is the last stage of implementing change in Tesco in which people change their ways
of working. In this stage, people have moved from transition stage to stable state which includes
equilibrium. It is a stage in which people of tesco are accepting change and also stated working
with new ways (Thorén and Vendel, 2018). In this, for effective implementation of change,
managers can offer rewards to employees who are accepting changes and started to work over
new ways. On basis of it, it is easier for firm to accept new ways of working.
Explanation of how could a person can be a change agent and also identify different types of
leadership and change agent skills in order to display change in successful manner
Change agents helps business in different manner as it includes those people who can rethink,
restructure and also redesign new ways of doing things. Change management are focusing on
solving problem and also adopt information leadership in organisation. In order to be a change
management I needs to follow some steps which are mentioned below:
Embrace resistance: In order to be an effective change agent, it is important for people to avoid
resistance to change. Instead of it, I need to be more comfortable about these changes and also
needs to be first understand importance of change. I also needs to be under assistance of people
who create influence over others as I can learn this from them.
Co-create vision: powerful vision is also important in order to manage agent in effective
manner. It is important in order to adopt leadership for influencing action of others in order to
work in collaborative manner for attainment of goals and objectives of business. On basis of this
vision, I can be able to contribute for implementation of change in effective manner (Wirtz,
Müller and Weyerer, 2021). In order to develop vision, it is important for a person to understand
that vision should be understandable, focused and also inspire others. Vision is also one of
strategy which will provide assistance to a person in order to avoid resistance for implementing
change.
Get buy in: In order to implement changes in business, it is important to get people in business.
In order to be a change management, it is also important to increase awareness and feedback
aiming to overcome of impact. It is also important for business managers to implement change in
business and also to spread positively among members. Top members contribute in order to
increase changes of success in business. It is important as these people communicate with
different members in order to get their support for adapting change in business.
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Create track record: It is another important component which assist to become a change agent
as it is essential for an organisation to have enough people for implementation of change. For
this, business needs to consider time and other factors. It is one of important process, as on basis
of it, I will be able to get support from others for purpose of implementation of change.
There are also different types of skills which helps a person to be an effective change agent.
These skills help to improve capabilities and competencies of a person. Some of these skills
developed by me during process to become change agent, are mentioned below:
Effective communication skills: Communication is considered as an important skill in order to
manage change in business. Leaders and agent need to communicate with different people of
firm in order to make them realise about importance of change for business. On basis of it, a
person can also listen to problem of team members with change. with analysation of problem,
managers of Tesco can also provide effective solutions to team (Yan, Hong and Warren, 2021).
Prioritisation: It is another skill which is adopted by change agent and leaders as they need to
understand which activity is more important in compare to others. On basis of it, they can
prioritise different activities and complete one which is more important.
Problem solving: There are different types of problems occur at workplace related to
implementation of change. It is important for a change agent and leader to have problem solving
skills as on basis of it, they can find out different types of solution.
Indicative content in specification
Gibbs model of reflection is one of model which was introduced by Graham Gibbs in the year
1988. It offers structure to learning process of a person. It provides a framework on basis of it, a
person can examine their experience and also repat it in order to learn and plan things from it.
Some of these stages included in this model are mentioned below:
Description: In Tesco as a change agent, I analyse operation of company which helps me to
identify different mistake occur at workplace. On basis of it, I find out, business can also expand
its operation by introducing products in other country and also with implementation of new
technologies in company. In order to do this, there is requirement of providing guidance to team
members and I decided to do things. For this, I check performance of employees and their ways
to serving things to customers. In order to do this, my change agent skills provide me guidance
as I find out root cause of problem underlying in organisation. It is also important for purpose of
improving productivity of firm and allow me to sell more units of products in less time.
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Feeling: Before starting this project, I was nervier as I have never handled such projects before.
But with the time, I stated working on it, there are different problem occur at workplace which
makes me frustrated. But the in end, I get success in order to attain my goals and objectives
which makes me happy.
Evaluation: There are different things which was good in this experience and there are some
things which are bad. Good things is that I am able to complete the project and also get resulted
result. But this that create problem for me to convince people for accepting change. But my
seniors provide guidance about how to overcome of this problem.
Analysis: Things go well as I have some change agent skills which allow me to increase
acceptance of people for purpose of attain desired result. Things does not go well as I does not
have experience and also it is difficult for me to convince people. On bass of it, I have made
sense of situation that efforts helps a person to get desired results they wants. Different types of
my academic knowledge like my leadership skills and other things helps me to complete the
project in effective manner.
Conclusion: On basis of above situation, it have learned different things like how to successful
implement change, skills required to be a change agent and other things. This situation can be
more positive as I have prior experience of same situation. There are different types of skills
developed by me on basis of my experience including communication skill, time management
skills, prioritisation skill and others.
Action Plan: If same situation occur in future, I would act differently as I have developed a
experience which provide me guidance. I also have developed new skills which assist me to
handle the situation in effective manner.
CONCLUSION
From above mentioned project report, it can be concluded that strategic management is one of
important component in business. It is important in order to improve efficiency and productivity
of firm. There are different types of strategies to be adopted by firm at different level like
operation, business and operation level. All these strategies are interlinked as it helps business to
attain its goals and objectives. In order to implement these strategies, business manager needs to
develop strategies management plan. Change management is another important component
which helps a firm to adopt changes in their organisation and for which different types of model
and tool can be used by firm.
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