Strategic Management: Strategic Planning - BSc BMP6002 Tesco Plan

This report provides a comprehensive analysis of strategic management, including a definition, a critical assessment of the strategic planning process used by organizations, and an evaluation of the impact of internal and external environmental factors on organizational strategy. It also includes a review of Tesco's strategic plan (Business Plan), along with a proposed action plan based on changes in either the internal or external environment. The analysis incorporates tools like PESTEL and SWOT to assess Tesco's strengths, weaknesses, opportunities, and threats, and suggests strategies like KPI monitoring for effective performance measurement. Desklib offers similar solved assignments and past papers for students.

BSc (Hons) Business Management Top up
BMP6002 Strategic Management
Strategic Planning
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Contents
Introduction 3
Definition of strategic management 3
A critical assessment of the process used by organisations to determine
their strategy 3
A critical evaluation of the impact of internal and external environmental
variation on organisational strategy 5
A review of an organisation’s strategic plan (Business Plan), providing an
action 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 9
References 10
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Introduction
Strategic planning is a method that leads a company’s leaders to demonstrate their vision and
mission for their upcoming period and also clarify their goals and objectives in order to
achieve success in the company (Mahieu, Melillo and Thompson, 2022). This report carries a
brief description on strategic management, process used by the company to demonstrate their
strategy, analysis on the effect of internal and external environmental changings on
company’s strategy. This report also explains about the review of company’s strategic plan
with the help of business plan and action plan in relevance to the internal and external
environmental fluctuations on the strategy of the company.
Definition of strategic management
Strategic management is a method that defines the strategic goals, procedures and
objectives for making an organisation achieve its goals and being more competitive than
others in the market. Generally, this helps in effectively hiring the employees and attain the
resources for achieving the aim. It is the procedure of planning, directing, evaluating and
reviewing all the requirements of the company so that they can achieve the goals and
objectives (Sitaniapessy, Usmanij, and Ratten, 2022). As the environment of the business
changes then they need to review their strategy so as to maintain their level of growth. This
process helps the company to maintain their stocks of the current period, make strategies,
utilize them accordingly and evaluate the effectiveness of the applied strategies in
management. This process also helps in leadership to know their future plan for their future
growth among their competitors. Tesco is a global company that deals in groceries and basic
retailing, its headquarters are situated in Welwyn Garden City, England. It ranks in the third
biggest retailing company.
A critical assessment of the process used by organisations to
determine their strategy
This is a big level of managerial task. The strategy management joins the tasks of
different functional areas of a company so as to achieve the objectives and goals of the
organisation. There are different components of the strategic management process. The
strategic management carries five stages used by the companies to handle their strategy
which are as follows –
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 Goal setting – The first step is for setting a common goal and strategies in a business.
The reason to set the goals is to know the vision of the company. This includes to
identify about the short- and long-term objectives of the company and the process for
achieving them. Then they need to personalise their methods according to their
employees and allot the work to everyone according to their specialisations. In
context to Tesco, their employees pursue for their work and the company needs to
check whether their objectives match with the vision. Eventually there is a need to
justify the goals and objectives of the company to all the employees.
 Analysis – This is the second stage of strategy management that is used to evaluate
the information gained by the company. The company has to obtain all the
information in order to achieve the vision (Kocot and Kocot, 2022). For example,
Tesco focuses on identifies their strategic analysis so that they can grow their
business. They need to understand their internal and external factors that affects their
operations of business. They can conclude it as their strengths, weaknesses, threats
and opportunities. They should analyse these factors very frequently as per the
fluctuations and hence improve upon them.
 Strategy formulation – The company needs to review all the information extracted
for forming a strategy. They need to reallocate their resources that can help them to
achieve their goals and objectives. For example, Tesco identifies the problems in
priority to be sorted. They also identify a specific part of external resources that need
to be cleared then they start forming a strategy accordingly. They need to set a best
course to put in action. The company needs to put their actions towards their goals
and objectives. They need to do a scanning for their business environment then
mangers need to form up on their business process and the functional strategies.
 Strategy implementation – It is necessary for a company to effectively implement
the strategy formed by them for the success of the organisation (Oham, 2022). For
example, Tesco implements the strategy changes it if it doesn’t work for the business
structure. While operating in it all the employees must get their roles and
responsibilities clearly. They should be able to contribute to the organisation’s
common goal. The resources should be utilized in this step. The employees should be
ready and all the financing should be planned so as to pursue for the plan. The
company should know about designing a structure, allocating resources, decision
making and human resource management for this step.
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 Evaluation and control – At last this step needs to analyse the whole process of
strategic management. The activities that include in the evaluation are appraising the
internal and external drivers that affect the current strategies, analysing performance
and making the required efforts to correct the actions that were used in
implementation. This process ensures about the company’s strategy and also whether
the company is able to achieve their objectives after implementing the strategies. The
internal and external problems keep coming in a constant manner. So, there is a need
to adopt all the information in this process which will help the company to analyse the
future strategy.
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy
PESTEL analysis is basically a framework which is used by organization for
evaluating the macro external factors effectively. External forces include political, economic,
social, technological, environmental and legal (Lee, Kim and Rhee, 2021). In order to analyse
the effects of internal and external environment for made changes in their organizational
strategy are described below -
 Political – It is considered with those factors which has a great effect on business
environment of organization due to the influence of government in economy and
industry. In context to TESCO, when they providing their services and products in
many countries and due to this global political factor has a great influence in the
organization performance. The factors include political stability, tax rates and
legislation act of particular country where they operate their business.
 Economical – It refer to those factors which effects the functions and activities of
organization in economic manner. Due to changes in economy, it directly impacts the
demand and supply of their services and products. In context to TESCO, due to the
direct impact on their leverage cost, price and demand, profit etc. authority must need
to aware about changes in taxation policy which may impact the access of their
finance. Therefore, management must focus on their two essential strategies one is
internationalization and other is diversification. By using these two strategies
organization are able to increase their competitive advantage in market for long time.
 Social – It refers to those factors which impact the performance and functions of the
company in social manner which includes family, subculture and culture etc. There
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are several trends and changes in the society which influence the worldwide
customers of TESCO to move towards bulk shopping and one stop shopping. The
services and products which are facilitated from company to customers, influenced
the belief and attitude of the users which impact the business environment of TESCO.
 Technological – It is defined as those factors which effects the company's business
environment with help of daily improvement and development of technology (Lin and
Chang, 2021). Due to the use of updated technology opportunities are easily increased
for TESCO to increase their competitive advantage productivity in market. Due to the
use of online shopping strategy customers easily buy their goods and services within
low time.
 Environmental – The change in climate and environment also effects the
performance of organization Due to facing environmental issues stress are highly
increased to the management of TESCO to use effective strategies leads to increase
the protection of earth and employees effectively. It also committed for reducing its
carbon step by 70%.
 Legal – It is concerned with those factors which impact the performance of
organization legally and it includes legal norms, rules and legislation. In context to
TESCO, they operate their business in various countries and their various legislation
and laws impact the company performance effectively. In order to maintain consumer
protection law in every country which makes company to reduce the price of their
product in order to make them purchase.
A review of an organisation’s strategic plan (Business Plan),
providing an action 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)
Basis Description
Summary Tesco is a multinational retail organization which is headquartered in United
Kingdom that facilitates best quality product and services to their customers
(Nozari, Szmelter-Jarosz and Ghahremani-Nahr, 2021). The company has
provided wide range of products such as home appliances, grocery items,
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electronic equipment's and others.
Mission The mission of TESCO is to increased its competitive advantage and growth
in international market by facilitating best quality and reasonable product to
their customers.
Vision Their vision is to develop their own firm as most competitive company.
Objective The objective or goals of the company are:
 Make strong customer base
 Attract more and more customers in all over the world
Situation The situation of the company is analysis with the help of SWOT
analysis:
Strength
 The organisational culture of
the company is adaptive
which helps in achieving the
goals in changing
environment.
 In context to TESCO, they
already have largest market
share in UK (Qaisar and
Muhamad, 2021). Due to this
they easily achieved their
goal for long duration.
Weaknesses
 Due to maintaining high price
in their various products
profit of this company are
easily decreased at large
scale.
 Due to having shortage in
their production organization
are not able to achieving the
goals more properly.
Opportunities
 Due to increasing online
sales in their grocery
increased opportunity for the
company to improve their
competitive growth.
 Development and innovation
of technologies is also
beneficial to them.
Threats
 Increase of Competition in
global business environment
may affects its business
environment as well as
competitive growth.
Tactics  Product – It is defined as tangible things which is provided by
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organization to customers in the form of good quality product.
 Price – It refer to fixing average or affordable price in their product
for increasing the sales effectively (Saputra and Djumarno, 2021).
 Place – It is basically refer to location which is preferred or
identified by organization for their effective growth in global
business.
 Promotion – It refer to the use of various strategies by TESCO such
as social media and others for promoting their product in market
effectively.
Budget Particulars Amount (£)
Marketing 20000
Promotional activity 20000
Print media 130000
Plant and machinery 6000
Total 176000
Controlling and
monitoring
From the above analysis the strategy which is suggested to TESCO is KPI
(Key Performance Indicators). Due to using this strategy company are able
to measure their performance effectively. In this way organization are able to
achieve their vision, mission and objectives in short duration.
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Conclusion
From the above data it is concludes that strategic management is a essential part for
company for the company for identifying the most profitable opportunities, prepare for the
future, be action-oriented as well as strengthen their organizational structure. Strategic
planning procedure is an effective tool that contain various steps and these steps help the
organization to achieve their goals effectively.
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References
Books and Journals
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planning of future small hydropower in Brazil. Nature Sustainability, 4(5), pp.409-
416.
Gasperin, D., Ganzer, P. P. and Dib, V.C., 2021. STRATEGIC PLANNING OF RESILIENT
AND REGENERATIVE CITIES: A CASE STUDY ON HOW NEW
GENERATIONS MAY CONTRIBUTE. Journal on Innovation and Sustainability
RISUS, 12(04), pp.58-68.
Jumadi, J., Bakri, S. and Stevina, S. D., 2021. The Strategic Planning in Indonesia Tourism
Industry with QSPM Model. Eximia, 3(1), pp.75-83.
Kocot, M. and Kocot, D., 2022. Determinants of the Success of an Outsourcing Project in the
Field of IT Separations--The Experience of Companies in the Silesian
Voivodeship. European Research Studies. 25(1). pp.208-226.
Mahieu, J., Melillo, F. and Thompson, P., 2022. The long‐term consequences of
entrepreneurship: Earnings trajectories of former entrepreneurs. Strategic
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Nugroho, A. S. and Supriyadi, E., 2021. STRATEGIC PLANNING OF MONTHLY
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Sitaniapessy, A., Usmanij, P. and Ratten, V., 2022. Survivability of MSMEs in Maluku: An
Analysis on Challenges, Opportunities and Strategic Development. In Artisan
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Zokirov, A. A. U., 2021. Improving Strategic Planning In Textile Enterprises. The American
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