Strategic Management Case Study Analysis: Tesco's Strategic Plan

This case study analyzes the strategic management of Tesco, a multinational retailing giant. The report begins with an introduction to strategic management, defining its role in organizational planning and execution. The main body delves into Tesco's strategic management practices, exploring environment scanning, strategy formulation, implementation, and evaluation. It assesses the tools used by Tesco to determine its strategy, including SWOT and PEST analyses, examining internal strengths and weaknesses, and external opportunities and threats. The study also evaluates the importance of change management based on complexity, cost, risk, and sustainability, providing a comprehensive overview of Tesco's strategic approach within the competitive retail landscape, supported by relevant academic references. The analysis covers both the internal and external forces that influence Tesco's strategic decisions, providing a detailed understanding of how the company adapts to market changes and maintains its competitive edge.

Strategic Management
case study Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY .................................................................................................................................1
Strategic management.................................................................................................................1
A critical assessment of the process used by organisations to determine their strategy.............1
An application of tools to real organisation :..............................................................................6
Critically appraise importance of change management based on complexity, cost, risk and
sustainability...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management refers to the overall activities and procedure which are related with
the companies strategies and planning about the working structure of an organisation. Strategic
management plans and design the activities which are going to be performed in current and by
future scenario so to achieve the targets and goals on a regular basis. Its a continuous process to
deals with the uncertainty and any kind of risk involve in the company. Strategic management
considered with managing the competitive environment by analysing the different set of targets
and goals , its relates with the internal and external sources which will impact the organisation,
determine all kind of forces whether macro environment (Ansoff and et. al., 2018) . This
function will be done by senior level authority by evaluating and reviewing the strategies, here
senior managers have to follow the appropriate practises and policies which are formed through
strategic management planning. The below report is based on the company Tesco, its a
multinational retailing industry which deals in groceries and general merchandise ,due to their
third largest retailers in the world ,having employees approximately around 4,20000 with 6800
shops all world, The report below consists definition of strategic management, tool that is used to
measure and analyse strategy and importance of change management.
MAIN BODY
Strategic management
This function play an important role in the organisation by making them effective and
efficient on the basis of accomplishing goals and targets in respect of overall activities related to
strategies and practises which are to be followed in the organisation. It involve activity related to
analysis the competitive scenario in the market in respect of internal as well as external aspect
manager have to deal with the situation of building and designed the strategies for the proper
implementation of the plan by making easier for organisation to deal with situation of uncertainty
and risk factor ,all the forces related to external factor will be determined and analysis in the
strategic planning of the company hence its a part of strategic management (Velikorossov and et.
al., 2020). Seniors level managers will implement and execute this approach or function through
analysing the requirement of the organisation.
A critical assessment of the process used by organisations to determine their strategy.
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Every organisation works on the principle of making the activities more effective and efficient
by analysing the overall requirement and needs in accordance with strategies formulation and
planning for the advance in respect of organisation process (Makadok, Burton and Barney,
2018).To plan any strategies Tesco will go with the approach of proper methods by which
strategies regarding the organisation will accomplished because of their large customer base an
dealing in large segment into the market the approach of this company is to analysis the
requirement first by proper scanning of the environment with market like retailing industry :
 Environment scanning:This step relates with the environment which relates with the
overall market scenario in respect of the external forces ,here company needs to analysis
the market ,what will be the targets and task which are to be set are properly analysed .
These external forces will impact the company in current and future aspect so to avoid
the situation like uncertainty and risk factor, there is a need of proper
analysis ,monitoring of the data which are gather by marketer in order to set objectives
and tasks by collecting , scrutinizing and provides necessary information in accordance
to achieve the target made in retailing sector (Wan and et. al., 2019), In context of Tesco
the leading multinational retailing industry will follow the strategy of making the
organisation flexible in order to scan the market scenario and external forces related with
changing technological advancement and other pestle approach. Strategy formulation:Its a process of formulating the strategy after analysing the best
course of action its relates with the organisation goals and objectives by planing of best
source to introduce the action to proceed for implementing process to formulate proper
strategic plan ,Tesco needs to analysis an determines the past records and current
situation statement by collecting the data in accordance for working of operations by
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scanning of the situation relates with the market scenario ,an organisation will go for
corporate to functional level strategies and this formulation of strategy based on the
requirement of the organisation related to retail industry. Strategy implementation:Its a process which defines the strategy which are formulated
and designed with a view to accomplish the goals and tasks will be implement through a
proper action plan .Basically this process deals with the the overall activities which are
designed in the formation needed to be implement by analysing the sort of needs in
implement the plan (Konovalova and et. al., 2018).This will require the accurate action
plan which are to assigned to th e employees after that process, its based on the decision
making process where implementation will be depend upon the working structure of an
industry like retailing sector where human resource are needed to go with appropriate
action plan and this will decided by the senior level manager.
 Strategy evaluation:The last step in strategic management is evaluating the plan or
strategy which were implement in the course of action. This evaluation and analysis of
this decision making strategies will be measured and evaluate by senior level managers
is that whether this strategy are working or not ,and have to monitor also to implement
well, manages should also determine the impact of their action plan on specific activity
in relation to the operational activity. Tesco seniors will follow the approach of finding
the effectiveness an efficiency of their strategic plan implement on the basis of market
situation by monitor them also. An evaluation of critical tools used to organisation to
determine its strategy.
An evaluation of critical tools used to organisation to determine its strategy:
Strategies are necessary in every business organisation by properly formulating plan,its
relates with the overall organisation planning which relates with the appropriate decision making
process (Carayannis, 2018). These strategies will be properly implement by the senior level
authority of the organisation meanwhile by adopting the current market scenario any changes
regarding the external forces will be sought out through proper implementation of action plan
which are made during the decision making .Tesco because of their leading retailing industry
they have to continuously looks into the structure and overall working of the department relates
with the retail sector. Some of the tools by which Tesco will determine the strategy is that :
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SWOT ANALYSIS:
Its a process or tool by which a company will determine or identify the
strength,weaknesses ,opportunity and threat on the basis of analysing the industry working
structure and the forces that will impact the organisation in respect of their current strategy ,this
tool is needed by the organisation in analysing the performance and risk involves the course of
working structure of the company (Moutinho, and Vargas-Sanchez, 2018).This will be done
through determining the internal environment .SWOT method is basically a tool by which any
company can determine their internal approach by making an efforts in the external forces
through market channel.
Strength:
 Tesco has won lots of awards due to their product offerings and servicing by which they
are having a strong brand image and by providing better service to their customer in
range product give them edge onto their competitors.
 By creating better cost efficiency and better services to the customer base generates the
loyalty in respect to their customers. By there adoption of new technology in the retail marketing provides strength to the
company.
Weaknesses:
 Some of the Tesco's subsidiaries are not working properly and handling the operations
because of their vulnerability in the external forces market .there Finance department are
bearing losses by their credit crisis.
 Because of more competitor in the retail market industry this will generates the price
wars and each company are trying to deals in cost effective manner these factor are
creating low margins for Tesco itself . Some of their retail store are not working properly ion other countries.
Opportunity:
 There is an opportunity for the joint ventures in which by taking the help of local market
can help the underperforming stores of Tesco by research and development in respect of
the company welfare (Schilling and Shankar, 2019).
 Opportunities in the private label market . By growing or emphasis more on online platform by making promoting on a large scale.
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Threats:
 Social responsibility and greater stake holders pressure on this retail industry will be the
threat for the company it will impact the cost basis.
 Rising in the price of raw materials and resources relates to the retail industry will affect
the profitability of the organisation they have to expand the reach of suppliers for it .
 Competitive threats of the other market or existing company will emerging in future
scenario for Tesco.
PEST ANALYSIS
Its a tool or method by which a company like retail industry will determine the external forces
which are impact the performance or working activities of the company in respect of their
pricing and structure as well, by proper utilizing of this tool, Tesco analysis the macro
environment which relates with the competitors and change in market scenario regarding the issu
es and policies of the government and that of economic aspects (Ginter Duncan, and Swayne,
2018).
Political factor:This force relates with those factor which indicates the government intervention
and what capacity of impact that a government will consists so as to know the impact of it, This
will impact the profitability of the retail industry like Tesco because of large indulgence of the
government it will directs to their company performance.
 By retailing industry importance in the recent economy and by political stability and
instability this approach will be determine by the organisation through channelising in the
market.
 All the laws and policies related to the retail sector.
 Taxation policies ,tax rates and incentives which are concerned with the government in
the economy. Legal framework and contractual enforcement will leads to political factor .
Economic factor :This factor relates with the forces which will impact the industry through
economic terms and it involves forces related to inflation rates, foreign exchange rates an saving
rates this will leads to impact the current market scenario and industry structure in the context of
its productivity.
 Employment rates and unemployment rates will determine this force in the economy.
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 By determining the knowledge skill level of the workforce of the retail industry. By determining the economic statement and policies of the particular country and
analysing what policies are there in the other dealing countries.
Social factor : This factor relates with the forces which are concerned with the socio-cultural
approach of the market, this will impact the industry in many ways like having the impact of
cultural value ,belief and age group and populations (Dzwigol, 2020).
 All the cultural impact related to customers in retail industry.
 Beliefs and values of the customer are the main forces in social factor . Attitude and behaviour of the customer towards the market .
Technological factor:This factor will determine the changes in the market environment due to
new technology and skills in the retail industry .this will leads to generates the competition in
international market by an effort of large retail industries by making them in uncomfortable
position into the market with their new techniques and advancement of skills of their employees.
 New trending technology and advancement will impact the industry by making in change
of their strategy regarding present techniques .
 Difference in rates of new technological products will impact the cost of the organisation.
An application of tools to real organisation :
In the process of making the organisation more effective and efficient there is a need of tools like
SWOT and pest to analysis the current situation of the company in the market through proper
channelising of their marketer with a view to collect all the applications regarding the internal as
well as external sources by making an efforts in the company methods to determine all sort of
requirement which are needed in completion of proper stimulate plan. Strategic planning is need
ed in the context of Tesco by putting efforts by the senior level management in course of
decision making through strategic processes (Okumus and et. al., 2019). in which there is a
accurate information are necessary for the formulation and implementation of strategy program.
Environment scanning is the approach of retail industry like Tesco to formulated and generates
information from the external sources into the market by collecting and scrutinizing the data in
relation to that of industry .By making an efforts of eliminating the risk and deals with
uncertainty through determine the target market and analysis their approaches which can be the
threats for Tesco in future.
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In application of the pest ,external forces by sought out the forces of political to technological
aspect this forces are having the importance to know about the risk and uncertainness involve in
the industry by making them set through strategic formation and then provide the benefits to the
organisation through making changes in the company structure by improving the tasks
effectiveness relates to the operational process and by improvise in the cost effectiveness this
will be the importance or application of both the tools regarding the strategic process.
Critically appraise importance of change management based on complexity, cost, risk and
sustainability.
Change management based on complexity:
Changes related with complexity will follow and deals with the situation of new improvisation of
the working structure of a company this will leads to the complexity in the organisation or
industry like retail sector Tesco (Deephouse and et. al., 2019). if any situation arises within the
industry through external forces and by their impact on organisation complexity in change will
emerge ,change management are needed to develop the profitability criteria of the company
through reducing the complexity .
Change management based on risk:
Due to sudden change in the industry will be a risk which are highly flow in the retail market
structure due to change in market scenario through technological advancement or by any external
forces leads to the generation of risk factor in the industry of retailing which will affect the
production processes ,change management is necessary to reduce the risk flow and any kind of
uncertainty.
Change management based on cost:
This change will be done by the senior authority because e of the changing environment in
respect of the working pattern of the retail industry or by changing in the policies of the
government they have to adopt these changes as function of change management in the retail
industry.
Change management based on sustainability:
Due to their competitors in the market and having a large retailing customer base they have to
build the organisation according to the brand image and promotional activity which will be
considered in change management that will based on the company efforts to maintain the
sustainability in future.
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CONCLUSION:
It has been concluded from the above report is that strategic management plays an important role
in making the organisation or industry more stable and with strong base of growth with
customers base and stability in the future aspect, strategic function should be properly formed
with a view to accomplish the tasks and small targets in regular basis. This two factor will be
determine by the higher authority of Tesco by analysing the internal as well external forces in the
course of retail industry.
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REFERENCES
Books and Journals
Ansoff, H.I. and et. al., 2018. Implanting strategic management. Springer.
Carayannis, E., 2018. Strategic management of technological learning. CRC Press.
Deephouse, D. and et. al., 2019. Global aspects of reputation and strategic management.
Emerald Group Publishing.
Dzwigol, H., 2020. Methodological and Empirical Platform of Triangulation in Strategic
Management. Academy of Strategic Management Journal. 19(4). pp.1-8.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Konovalova, E.E. and et. al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of
Environmental Management & Tourism. 9(2 (26)). pp.241-247.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal. 39(6). pp.1530-1545.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Okumus, F. and et. al., 2019. Strategic management for hospitality and tourism. Routledge.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Velikorossov, V.V. and et. al., 2020. Strategic management.
Wan, W.M.K.F.B. and et. al., 2019. Strategic management in fatwa-making process. Academy of
Strategic Management Journal. 18(4). pp.1-6.
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