Strategic Analysis: Tesco's Business Strategies & Market Positioning

This report provides an in-depth analysis of Tesco's business strategies, encompassing its mission, vision, objectives, and core competencies, along with a strategic positioning analysis through an organizational audit. It compares Tesco's mission, vision, and core competencies with Walmart's, explores strategic planning issues, and evaluates techniques like the directional policy matrix and BCG matrix. The report conducts a SWOT analysis, Porter's Five Forces analysis, and competitor analysis to assess Tesco's strategic positioning. Furthermore, it includes a PESTLE analysis for environmental auditing and discusses the significance of stakeholder analysis. The report concludes with recommended strategies for Tesco, covering market entry, substantive growth, and retrenchment, and predicts an appropriate future strategy for the company, emphasizing retrenchment to cope with competition and enhance sales through product innovation. Desklib offers similar solved assignments and study resources for students.

BUSINESS STRATEGIES

INTRODUCTION
 Business strategy is the direction and scope by means of which an organisation
is able to achieve the desired goals and objectives. .
 Tesco is the multinational retail company headquartered in Welwyn Garden
City, Hertfordshire. It is a public limited company started in the year1919 by
Jack Cohen.
 In the following report, mission, vision, goals and core competencies of Tesco
are identified.
 Along with this, strategic positioning have been done in order to carry out
the organisational audit. On the basis of this, alternative strategies are prepared
related to market entry, substantive growth and retrenchment.

TASK 1
1.1 {a}Mission, vision, objective and core competencies
Mission, vision, objective and core competencies of Tesco
Mission, vision and objectives of the company are interrelated
with each other and indicates what the company is planning to
achieve in the future.
Mission of Tesco is “to prepare the things that creates much value
together.”
Vision of Tesco is “to become highly valued business organisation
by serving best to the shareholders, community, customers” .

CONTD...
 SMART objectives of Tesco is to create value for the
customers and at the same time gain lifetime customers
loyalty.
 Goals of Tesco is to achieve the long term goal of the
organisation.
 Core competencies of Tesco is to focus on customers
strategy.

CONTD..
{b}Mission, vision, objective and core competencies of
Walmart
 Mission:- To give people better life by saving their
money
 Vision:- To become one of the best retailer among
employee and the customers.
 Objective:- Objective of Walmart is to produce new and
innovative product and at the same time reduce the cost
of its production

CONTD...
 Aim:- To serve the best products that satisfy
the needs and wants of customers.
 Core competencies :- Use latest technology
and availability of hard working, efficient
and process oriented employees.

2.3 Significance of stakeholder analysis when formulating
new
strategy
 Stakeholders analysis help the Tesco to identify the attitudes of
the stakeholders towards the company.
 This analysis is done by the Company at the time of potential
change.
 The evaluation is done by the Tesco by using two basic
techniques i.e. stakeholders mapping and Stakeholder
significance grid.
 Stakeholders analysis assist the company to identify the
characteristic that are going to satisfy its stakeholder.
 Some of the stakeholder of Tesco are employees, investors,
suppliers, customers and many more.

1.2 Describe three issues involved in strategic planning in your
chosen organization
Some of the factors that can be considered by the
organisation to formulate the strategic plans are as
follows:-
 Proper Communication
 Project management
 Culture
 Innovation

CONTD..
 Strategic planning should be started from the beginning of
business to achieve its short term and long term goals.
 For the development of these strategies company should
involve the ideas and view points of all the staff members.
 This in turn will help the organization to generate creative
ideas.
 If all the staff members thoughts are taken into
consideration than in that case manager will easily develop
the strategic plan to achieve various set targets.
 Formulation of strategies by using new and innovative idea
will help the Tesco to increase its sales, market share and to
earn more profit.

1.3 Effectiveness of two techniques the time of developing
strategic plans
Directional policy matrix:-
 This matrix was developed to measure the effectiveness of the segment and
the ability of the organisation to reinforce that segment.
 By using this matrix, Tesco will be able to identify what are the alternative
segments where they can operate its business.
 In addition to this, it will also help the company to identify the area where
they should invest and in which direction organisation is moving.
 Along with this, it also help the organization to identify whether the day to
day decision taken are correct or not.
 Therefore, after identifying various factors company will be able to easily to
develop its strategic plan

CONTD...
BCG matrix:-
 BCG matrix was developed to attain long term aim of
preparing strategic plans and to help the company to
analyse its growth opportunity by examining the portfolio of
its products.
Stakeholder mapping:-
 Stakeholder mapping is the process of conducting
research, debate and discussion in order to draw various
perspectives with an aim to identify the stakeholder
requirement.

2.1 Analyse the strategic positioning of Tesco by carrying out
an organisational audit
 Some of the techniques that can be considered by Tesco at the
time of doing organisational audit to analyze strategic positioning
are as follows:-
 SWOT analysis provide assistance to the company to identify its
strength and weakness. This in turn will help the company to
make efforts to overcome its weakness.
 In addition to this, it also assist the Tesco to identify
opportunities which they can grab to achieve the success and try
to overcome the threats that can be faced by them in future due to
change in the business environment.