Strategic Management Top up BMP6002: Strategic Planning for Tesco

This report provides a comprehensive analysis of Tesco's strategic management, covering the processes used to determine their strategy, and a critical evaluation of the impact of internal and external environmental variations on their organizational strategy. It includes a review of Tesco's strategic plan (Business Plan), offering action plans based on changes in either the internal or external environment, particularly in light of the COVID-19 pandemic and increasing competition. The report examines internal factors like organizational structure and leadership, as well as external factors such as economic changes and competitive pressures. Tools like SWOT and PESTLE analysis are utilized to assess Tesco's strengths, weaknesses, opportunities, and threats, alongside political, economic, social, technological, legal, and environmental influences. The marketing mix and strategic plans are discussed, with a focus on increasing online sales and customer engagement through digital platforms. The report concludes that strategic management is vital for organizational success and highlights the importance of adapting to changing market conditions.

Business Management Top up
BMP6002 Strategic Management
Strategic Planning
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Contents
Introduction 2
Definition of strategic management 2
A critical assessment of the process used by organisations to
determine their strategy 2
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy 4
Reviews of an organisation’s strategic plan (Business Plan),
providing actions plan for the organisation on the basis of a
change in either the internal OR external environment. (The
Business Plan is included as an Appendix) 6
Conclusion 8
References 9
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Introduction
The process of strategy evaluation, internal organisation analysis and strategy
execution within the company is known as strategic management. In every kind of
business, strategic management plays very important role because it allows a
company to analysis the areas for operation improvement. In the further report, the
chosen organisation is TESCO. TESCO is a multinational retailer and grocery
company which was established in 1919. The headquarter is located in Walwyn
Garden City, Hertfordshire, England. The report will be covering the information
about strategic management, the process which helps in determining their strategy.
After the following, the report will discuss about the analysis which they have
performed in the organisation. These analyses are SWOT and PESTLE analysis
which help the company to perform well.
Definition of strategic management
To make a company or an oraganisation more competitive they will perform a
process of setting goals, procedures, and objectives and this process is termed as
strategic management. To have proper developing staff and resources to achieve
their goals is termed as strategic management. In most of the cases, they can follow
either an analytical process, which helps in identifies potential threats and
opportunities, or simply follow general guidelines. Talking in context of TESCO, the
company can choose any prescriptive or descriptive to approach the strategic
management. To achieve these goals, the organisation will develop a strategy, will
communicate this strategy with others, and apply it across on different department
and units in the organisation after this they integrate this with employee goals and in
result, they will execute that accordingly. If an effective strategy is applied in the
organisation, ideally, it will help the company to achieve its targets through a single,
coordinated process.
A critical assessment of the process used by
organisations to determine their strategy
The strategy which helps the organisation to determine strategic planning
process that organisation use to develop plans to achieve overall, long-term goals.
Talking in context of TESCO, further it will discuss the strategy which will help the
company to work. To be successful in the market, companies has focused over the
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customer. They will offer customers more competition than competitors and win.
Since, most of the time company is unable to satisfy their customers in the market,
for this they should split the total market to choose target market and develop better
strategic competition for the selected parts (market positioning). The company can
take of the major four factors which will help the organisation to work effectively. The
factors are defined below:
 External factor: There are different kind of external factors for the company.
They can be listed as political, economic, social-culture, technological, etc.
These factor, are the elements that exist outside the company which can
affect the company’s operation. In context of TESCO, the outside sources
help the organisation to face current or future challenges. The managers of
TESCO, make sure that they keep a track of external environment factors so
this will help them to recognise and resolves the issues caused by these
factors and help the organisation to make appropriate changes. These factors
help the company in many ways.
 Internal factor: Internal factors of the organisation are human resources,
finance and current technology. The very basic factor is human resources
which is related to the people who work in an organisation. The performance
of the company is affected by the quality and impact of the people who works
under the organisation. In context of TESCO, the internal environment is one
of the contributing factors that will result in the success of the organisation.
The internal factors include corporate governance, corporate culture,
resources, etc. It is possible to consider the strengths and weaknesses of the
company's internal environment to estimate its potential.
 Competitive factor: Talking about competitive factor the organisation has to
take care about its competitors and their pricing and promotional strategy. The
key to Tesco's achieved competitive advantage is the development of retail
low prices, high quality and experienced customer service has led to profit
growth.
 Marketing campaign: Marketing campaign is the major factor as customers
get attracted through the different types of campaign organised by the
company. In context of TESCO, the marketing department of the company
has an absolute focus on product promotion through sale, advertisement,
promotion, public relations, direct marketing, online communication and
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personal sales. The major advantage of Tesco is its low price. It separates
from other supermarket chains.
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy.
Every organisation belonging to separate industries and conducting different
businesses have various factors which are internal and external that affect them and
impose certain level of impact on the day to day operations as well as long-term
strategies of the company. In context to Tesco, deals in retail sector and hold its
presence in multiple locations around the world. Hence, the international presence
and wide customer base of Tesco brings up several internal as well as external
factors that impacts strategy of the entity. Some of these impacts of micro and macro
environment the organisation that is Tesco are elaborated below:
INTERNAL FACTORS:
 Organizational structure- In early period most organisations used to work
with highly hierarchical structures there are number of layers of leadership
and management were existing. But with the changing period, globalisation
and modernization Tesco have updated itself but its structure is it still highly
heritable due to the larger size of the organisation. The company is following
the respective structure because of its large presence in several markets and
economies. The corporate governance structure as well as Tesco’s store level
organisational structure is presented below in the image. At the store level in
Tesco there are four layers of management existing in its super stores.
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Figure 1: Tesco organizational structure at store level
(Source: Tesco Organizational Structure, 2016)
Figure 2: Tesco Corporate Governance Structure
(Source: Tesco Organizational Structure, 2016)
On the other hand the government structure of the organisation has five
committees which comprised together develops Tesco PLC board.
 Leadership- When it comes to leadership and management, these are
considered as key internal factors which affects an organisational business
strategy. It is clearly determined that great leaders inspire and direct their
employees for team members towards the correct direction. Hence, the
leadership styles and the management approaches adopted by leaders and
managers of Tesco are the key internal factors which determine and impact
the strategy of the organisation.
EXTERNAL FACTORS:
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 Change in economy due to COVID-19- The coronavirus cheese which was
identified in 2019 and struck the entire world with huge losses and
implications. Economies in the world are been affected due to spread of
covid-19. Therefore, there are several changes being introduced in every
economy due to it. Hence this is the most recent and critical external
environmental factor which have a protected not only Tesco but all the
organisations operating in separate business environment. Tesco deals in
several economies due to its large market presence around the globe. Thus,
the change took place in every economy most specifically the depreciation of
economics around the globe have affected the company as well as drought
several changes in business strategy of the entity.
 Increasing competition- The entire world have been affected due to
coronavirus, economies have fallen down and businesses from smaller to
larger sizes have been affected. One important external factor which holds
great influence over the business strategy of Tesco is increasing competition
and regular introduction of new businesses in the retail sector.
Reviews of an organisation’s strategic plan (Business
Plan), providing actions plan for the organisation on the
basis of a change in either the internal OR external
environment. (The Business Plan is included as an
Appendix)
 Executive Summary- The aim of developing this business plan is to provide
a new marketing campaign for Tesco in order to promote its offerings and
increase customer engagement through online platforms. This marketing
campaign is developed to explore the opportunity of changing technology and
changing Trend of retail taken place due to covid-19 and as results of it.
 Vision- The mission statement of Tesco clearly state the company’s
prespective to offer the best to its customers and increase value of the
company in the market.
 Mission- Tesco's mission is to be the cost leader in the market and offer most
sustainable products to the customers in the lowest price possible.
 Objectives-
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o To increase online sales bye by 10% after 6 months.
o To increase customer engagement by 20% in the next 12 months.
 SWOT
o Strength- The large market presence and cost leadership strategy of
the company.
o Weakness- Regular changing trends in retail industry due to covid-19
and instability e of several economies.
o Opportunity- Increasing use of technology and revolutions taking place
in technological industry.
o Threat- Huge number of competitors available at both smaller and
larger level.
 STP
o Segmentation- Tesco segments the market by geographical
segmentation technique.
o Targeting- The target audience of the organisation are the families,
individuals, youngsters and other customers relying on technology and
are frequently incline towards technological resources.
o Positioning- As this is a marketing campaign to promote the company
digitally. Thus, the company will be positioning itself through digital
platforms by using several attractive techniques and increasing its
social media interaction.
 Monitoring and Controlling- Every organisation development of plans and
procedures in order to implement its business strategies and work effectively
by attaining its objectives and achieving larger benchmarks. Hence, the
monitoring and controlling tool which will be used by Tesco in order to
examine its performance and achievement of the new marketing plan will be
done by KPI’s and benchmarking method. The objectives developed in the
beginning of the marketing campaign will be considered as KPI’s and
performance of other flourishing competitors of Tesco will be considered as
the benchmark to attain and to even grow above in the industry.
Conclusion
It can be concluded from the above report, that strategic management plays
vital role in an organization. The Report has discussed the process to determine the
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strategy of the organization. In context of the chosen organization the report explains
the different strategy management. Also discussed its strategic plans and marketing
mix. In further, the report examines the SWOT analysis of the organization along
with the PESTLE analysis. At last, the report has discussed the business plan or
strategic analysis of the company.
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References
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Online:
Tesco Organizational Structure, 2016. Available Through: [Online] <https://research-
methodology.net/tesco-organizational-structure//>
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