Analyzing TESCO's Global Strategic Management and CEO Contributions

This report provides a detailed analysis of TESCO's global strategic management, focusing on the business and corporate strategies employed by the CEO and their positive contributions to the organization. It includes an external and internal environmental analysis using frameworks like PESTEL and SWOT to understand how the CEO managed complex problems at TESCO. The report also describes the strategic tools, techniques, and models used by the CEO, such as Michael Porter's Five Forces and Blue Ocean Strategy, to enhance organizational performance. Furthermore, it examines how the CEO created, developed, and designed strategic planning for TESCO, critically analyzing contemporary strategic issues and synthesizing different levels of strategy. The analysis covers innovation and technology strategies, including differentiating the brand, using technology in-store, and investing in research and development to improve customer satisfaction and operational efficiency. The report concludes that effective business strategy is crucial for the systematic operation of the organization.

Global Strategic
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Business and corporate strategies used by the CEO which has brought about positive
contribution to the organization .................................................................................................3
Undertake external and internal environmental analysis and analyse how the complex
problems at TESCO were managed by the CEO using business frame work............................4
Describe the strategic tools/ techniques/ models used by the CEO of TESCO to enhance the
organizational performance. You may guided by theories from Michael Porter, Blue ocean
strategy, Strategic planning tools and others...............................................................................6
How CEO of TESCO created, develop and designed strategic planning for TESCO................7
Critically analyse and evaluate the different contemporary strategic issues in strategy, clearly
synthesising between the different levels of strategy used by CEO of TESCO.........................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global strategic management refers to those activities which helped the business to
increase the profit on competitive opportunities globally. It includes maintaining standards and
maintain proper balance at the time receiving money from customers. These strategies helped to
increase the organizational growth and also for maintaining better relationship with customers
globally. The organization consider in this report is TESCO and it is a multinational retain store
which was located in United Kingdom. The company was established in 1919 and it is the third
largest retail store in the world in terms of generating revenue. This report is prepared on the
basis secondary research which includes newspapers, magazines and so on.
TASK
Business and corporate strategies used by the CEO which has brought about positive
contribution to the organization
Business strategies refers to strategic method which is used by organization for achieving
their vision, mission and objectives in long term (Adigbole, Osemene and Fakile, 2019). This
strategy also nhelped to increase the portfolio of company. The strategies which is used by CEO
of TESCO for developing positive image of the company are -
 Use of digital marketing – Tesco is one of the company who made high investment in
digital marketing for increasing the sales of their product. In today's time consumers
highly used digital platforms to search the product through various websites and apps. In
this method various beneficial schemes are provided to buyers which leads to increase
the number and power of customers with the help of various strategies which includes
use of adds in TV, Cinema, Radio and so on.
 Good product packaging – It refers to those materials for packing the product properly
because good packing is very important for deliver the product to consumers without any
time of damage. It is very important for company to maintain good relation with buyers
for a long time. For maintaining the quality of packaging organization are used remove
and reusable high quality plastic which leads to maintain customer satisfaction level for
long time.

Undertake external and internal environmental analysis and analyse how the complex
problems at TESCO were managed by the CEO using business frame work
External factors refers to effect the operational activities of organization from outside
(Anh and Tien, 2021). But Internal factors refers to analyse the strength and weakness of
company for a short time. The method which is used by TESCO for analysing the external and
internal factors are -
PESTEL Analysis -
This method is used by organization for identifying the macro external factors of
particular area which was facing by company which are explained below -
 Political – Due to their dealing of wide range of products company faced difficulty for
gaining tax according to government policies. TESCO initiated effective tax system to
collect tax collected from buyers. Then the collected tax submitted to government in time
for maintain good relation.
 Economical – Due to covid pandemic company faced lots of problems financially . For
reducing this problem TESCO fixed affordable prices in their products which leads to
increase the growth and it also increased the sale of product.
 Social - In covid pandemic the behaviour and attitude towards organization are totally
changed (Botelho and Kulishov, 2019). For example customers stopped to buy those
products such as food products. According to current trend TESCO started to display well
packed products in which leads to increase buying power of customers.
 Technological – Due to less awareness of technology by employees they consumed
much time for handling the consumers. In context to TESCO, they used various
technology scanning machines, checkout camera etc.to increase the convenience of
buyers in store.
 Environmental – Due to high use of carbon footprint by organization the pollutions are
highly spread in environment. For reducing this problem, company used remove, reduce
and recycle plan. In this plan wastages of resources are reduces and employee
productivity are increased.
 Legal – Due to legal laws, government rules and regulations company are not able to
implement fully their own policies. It is not necessary that this policies are suitable for all
employees safety and security. Due to this reason management decided to follow the

rules and regulations of government which is useful for run their operational activities
smoothly.
SWOT Analysis -
It is a management or strategic method which is utilized by TESCO for identifying the
competitors strengths, weaknesses, opportunities and threats which are described below -
Strength includes -
 Use of skilled employees – It is one of the organization who used their highly skilled
employees to run their departmental activities smoothly (Cattani, Porac and Thomas,
2017).
 Customer satisfaction – For maintaining customer satisfaction properly they are used
effective complaint system for attending their problems smoothly.
Weaknesses includes -
 Increasing prices – Due to the high expensiveness in their products customers are
limited and their portfolio get decreased.
 Limited success in other countries - Due to the incident of Brexit organization are not
able to adapt new cultures and traditions of other countries. It leads to decrease the
productivity and popularity of organization
Opportunities includes -
 Providing best service – Organization is providing the best service to consumers with
the help of using advanced technology such as use of checkout camera and so on.
 Digital patrons channel - In this stage company are using effective payment systems in
store which leads to increase the convenience of consumers to do any type of payment.
Threats includes -
 Competitors – In this stage competitors tried to collect the confidential informations of
customers illegally which creates threats to TESCO reputation.
 Financial loss – In covid due to lock down profit of organization highly decreased
because at that time customers buying power are decreased.

Describe the strategic tools/ techniques/ models used by the CEO of TESCO to enhance the
organizational performance. You may guided by theories from Michael Porter, Blue
ocean strategy, Strategic planning tools and others
Michael Porter Model
The methods which is used by TESCO to analyse the various competitive forces to
determine its strength and weaknesses are -
 Competitive rivalry in the market (High)– It is high because competitors try to
facilitate same services to consumers which leads to decrease the reputation and profit of
company (Collings, Mellahi and Cascio, 2019). In context to TESCO, management used
various ideas for displaying their product in both online and offline mode in various to
attract consumers.
 Threats of substitutes (Low) – It is low because other brands also provide more
attractive and lower cost products or alternatives in same segments. It is low because
TESCO made lot of investment in their products for maintaining proper demand and
supply in market according to customer needs and desires.
 Threat of new entrants (High) – It is high because competitors tried to develop new
product with extra specifications in same segment. It increases the chance of decreasing
the market share of organization. In context to TESCO, management made various
research for facilitate best quality products to consumers which leads to maintain good
relation for a long time.
 Bargaining power of buyers (High) – It refers to put pressure on organization by
consumers for purchasing the quality products at minimum and valuable price. It is high
because TESCO cut down their prices in specific products such as grocery items etc
(Hannimitkulchai, 2021). Because these products are necessary for customers for
fulfilling their basic needs on daily basis.
 Bargaining power of suppliers (Low) – It refers to put pressure by suppliers on
company for earning their profit at the time of selling the product. It is low because
TESCO is one of the company established effective supply chain management for selling
the product in profit or properly on regular basis. It leads to maintain good relations with
suppliers for a long time.

Blue Ocean Strategy
In this strategy Organization have very less competition in the market (Maleki and Amiri
Fahlyiani, 2020). The main reason for creating few competition in market are the particular
organization must create unique and different products from others. In context to TESCO it is
one of the company who facilitate all branded products to consumers. These branded and best
quality products helped to increase the purchasing power and satisfaction level of consumers.
How CEO of TESCO created, develop and designed strategic planning for TESCO
The strategies which are used by organization for their brand image in front of the
customers are described below -
 Communication system – It is a very important aspect for TESCO to maintain the
proper coordination between the employees and various departments (Ogalo, 2020).
Because effective communication helped to reduce the misunderstanding in work
between the employees. It also helped employees to send a accurate and reliable
information to consumers.
 Linkage of budgeting – Budgeting is a very essential part for organization for running
the whole operational and departmental functions smoothly. In context to TESCO, they
maintain the overall expense as a record on daily basis. According to that management
understand that in which area more expenditure are required such as give proper training
to employees.
Critically analyse and evaluate the different contemporary strategic issues in strategy,
clearly synthesising between the different levels of strategy used by CEO of TESCO
Innovation and technology strategies -
 Differentiating brand – It refers to create a strong brand image in the market between
the customers with help of new ideas and creativity. For creating brand image different
from competitors TESCO is providing the world class quality products and services to
customers. Because for company customer is the king and there feedbacks are very
important for understanding their problems. For maintaining brand name in market
company established the effective distribution system for develop good relationship with
customers for a long time. Because when relations are maintained well then only
customers like to purchase their product again and again from online mode. Good

productivity and work efficiency are maintained in organization with the help of talented
and skilled employees which leads to increase their profit.
 Use technology in store – It is one of the company who used their high tech equipments
in their store for attract the customers (Sassi, Pihlak, and Haldma, 2017). Equipments
includes payment systems, Equipments which are used to maintaining the store
atmosphere good and so on. These elements are also essential for increasing the staying
time of consumers in store. When organization are maintained the payment system
effectively then convenience are highly increased to customers for purchasing the product
from any location through online mode. It also helped to payment choices for consumers.
 Investment in research and development – In research and development department
company made lot of investment for understanding the problems in their store
(Sołoducho-Pelc, 2017). After analysing the problem the company initiate various
strategies to solve the problems which was was faced by employees in company. For
example according to research management provide proper training to employees. It
leads to run the operational and departmental activities properly. Effective research
helped the employees to polish their skills and talents internally which is helpful to do the
work smartly.

CONCLUSION
After the analysis of above information it is understood that business strategy is very
important to run the whole organization systematically. Without proper coordination between
top, middle and lower level employees informations are not passed properly for complete the
task successfully. Business strategies are also important to achieve their vision, mission and
objectives in long term. It is also important for analyse the internal and external analysis properly
for achieving the competitive advantage in market. It is one of the company which h is highly
focused on employee workforce and productivity in organization. Because good productivity
helped company to maintain the positive image between the consumers.

REFERENCES
Books and Journals
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Growth Evaluation, 2(4). pp.61-66.
Botelho, J. M. M. and Kulishov, V., 2019. A STRATEGIC MANAGEMENT MODEL FOR
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Competitiveness Concept: MFN Tariff The bilateral trade opportunities Portugal–
Poland and Portugal–Ukraine. Scientific Journal of Polonia University, 33(2). pp.56-67.
Cattani, G., Porac, J. F. and Thomas, H., 2017. Categories and competition. Strategic
Management Journal, 38(1). pp.64-92.
Collings, D. G., Mellahi, K. and Cascio, W.F., 2019. Global talent management and performance
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pp.540-566.
Hannimitkulchai, K., 2021. The Causal Relationship of Strategic Management Accounting
Practices, Intellectual Capital Development and Firm Success. University of the Thai
Chamber of Commerce Journal Humanities and Social Sciences, 41(2). pp.148-169.
Maleki, S. and Amiri Fahlyiani, M., 2020. Strategic Management Relationships With Tour-ism
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pp.670-697.
Ogalo, H. S., 2020. Strategic Management of HRM Practices and Innovation Performance in the
High Tech Fiberglass Sector in Bahrain: Mediating Role of Organizational
Innovation. Annals of Contemporary Developments in Management & HR
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Sassi, M., Pihlak, Ü. and Haldma, T., 2017. Factors affecting strategic management attitudes and
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Sołoducho-Pelc, L., 2017. The importance of trust in the implementation of the strategic
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pp.237-261.