Comprehensive Analysis of Tesco's Business Strategy and Planning

This report provides a detailed analysis of Tesco's business strategy, examining the impact of both the external and internal environments on its operations. The external environment analysis considers political, economic, social, technological, environmental, and legal factors, including the effects of Brexit and the COVID-19 pandemic. The internal environment analysis assesses Tesco's strengths, weaknesses, opportunities, and threats (SWOT). The report applies Porter's Five Forces to analyze the market and explores strategic planning tools like the Ansoff Matrix and Bowman's Strategic Clock to evaluate Tesco's market positioning and growth strategies. The report highlights Tesco's mission, objectives, and various strategies, including market penetration, market development, product development, and diversification to maintain and enhance its market share.

BUSINESS STRATEGY

INTRODUCTION
 Business strategy refers to actions and decision that are taken by the firm
to run operation in it successfully and attract customers.
 Tesco is well known name in UK retail industry and offers variety of
product.
 Company faces various kinds of challenges in running business from
macro environment such as political, economical etc. and also from
internal factors.
 Report highlights different factors that impact on strategic planning of
the firm and explain a plan associated with it.

P1. IMPACT ON ORGANISATION AND ITS
STRATEGIES FROM EXTERNAL
ENVIRONMENT
 Tesco is one of rising company in United Kingdom but its operation and strategies
highly impacted from macro environment factors such as political, economical,
social, technological etc.
 For example: elected new parliament member introduce new which company has to
implement. Sometimes it is good for the firm, but few decisions may create chaos in
business planning.

CONTINUE…
 Political-
1. After BREXIT, there are three Prime minister in the United
Kingdom whose position taken by the next one and hence country
politically is unstable.
2. Each one of them introduces new policies and guidelines for
different types of organisation in Britain and because of it firms
has to changes in their working style.
3. Tesco retail stores and online business effected from new
legislation.
4. Company has decided to follow competitive price strategy to
attract large number of customers in country but because of UK’s
exist from European union, increase prices of raw material that
are imported from countries in Europe continent.

CONTINUE…
 Economical
1. Britain is one of rising economical country in the world because of its
revolutionary ideas for industry.
2. BREXIT and COVID have highly effected on economical growth of the
country and during lockdown GDP of the country rapidly falls which
effected on stock market and various kind of business.
3. During lockdown retail company suffered a lot because people avoided
coming to Super market.

CONTINUE…
 Social
1. United Kingdom’s people welcome new market and product which gives
opportunity to expand business.
2. However, it effected on growth of existing firm that are working in the
country from long time and hence decrease their profit share.
3. Tesco strategy for dealing in such situation is to provide range of product
which support one stop shopping habit and hence firm able to maintain
loyalty of old consumers and influence new one.
4. After COVID Pandemic people started more focusing on health life style
hence change their taste and trend towards organic product.

CONTINUE…
 Technological
1. Technology in United Kingdom rapidly changes which help different
kind of industries to introduce various kind of modern system at work
places and hence increase, quality, efficiency and productivity of
work.
2. Tesco is one of financial strong firm in Britain which makes it quick
technological changes in firms which increase productivity of work as
well as increase customer satisfaction level.
3. Strategy of Tesco after COVID is to have effective supply chain
management for that company has invested large amount of money
and hence able to provide services and product delivery timely to
buyers.
4. Tesco also introduce RFID technology as well as PayQwid which
help in accomplish task easily increase consumer’s experience.

CONTINUE…
 Environmental
1. Technology in United Kingdom rapidly changes which help different kind
of industries to introduce various kind of modern system at work places
and hence increase, quality, efficiency and productivity of work.
2. Tesco is one of financial strong firm in Britain which makes it quick
technological changes in firms which increase productivity of work as well
as increase customer satisfaction level.
3. Strategy of Tesco after COVID is to have effective supply chain
management for that company has invested large amount of money and
hence able to provide services and product delivery timely to buyers.
4. Tesco also introduce RFID technology as well as PayQwid which help in
accomplish task easily increase consumer’s experience.

CONTINUE…
 Legal
1. Government has passed various types of acts and laws to protect workers
and consumers from industries in the country.
2. Key Legislation and acts related to work are Employment right, Equal
wages, Anti discrimination etc.
3. Tesco implement laws in organisation which help in gaining loyalty of
workforce and creating friendly environment at workplace.

P2. INTERNAL ENVIRONMENT IMPACT
ON GROWTH OF THE FIRM
 There are number of internal factor that contribute in success of the
organisation as well as become barrier.
 Tesco grocery market has various types of threats and opportunities
according to strength & weakness.
 Strength
1. Tesco share large part of retail sector in United Kingdom as well as one of
financially strong firm.
2. Financial stability is one of the strength that helps for organisation in
expanding business in different part of Britain.
3. Company has long reputation of serving people in the country with range
of product which continuously increasing loyalty of customers.

CONTINUE…
 Weakness
1. There are number of weakness which becomes barrier in growth of the
firm. Online store of the firm is not properly managed by the organisation
which leads to decrease in customer satisfaction level.
2. Supply chain management of the firm is of advance technology but
because of poor management and less active workers, decrease in delivery
time which effect on organisation image.
3. It is failed in many part of part of world because of improper strategy such
as in USA and Japan.
4. Government of Britain determined implemented various kind policy and
laws which continuously effecting financial position of the firm and
organisation is overlooking such kind of negative factors.

CONTINUE..
 Opportunities
1. Company has a strong reputation worldwide which enable the firm to
expand business in different part of world and increase market share.
2. Tesco can expand business in countries where raw material price will be
less and people can easily be attracted such as Turkey, Mexico, Indonesia,
Brazil and South Africa.
3. Diversification of market in different part of globe will increase revenue of
the firm and hence support globalization of world.
4. Company has to look for supply of raw material from Asian countries such
as India, china etc. Cheap raw material can support in providing large
number of product to customer at cheap price.