Report on Tesco PLC: Strategic Analysis, Change Management Strategies

This report provides a comprehensive strategic analysis of Tesco PLC, a major UK-based multinational grocery store. It begins with an introduction to strategic management, outlining its importance for organizational success and sustainability. The main body delves into the strategic process adopted by Tesco, including its vision, mission, and objectives. It then critically analyzes key concepts and models, such as SWOT and PESTLE analyses, which are used to assess internal strengths and weaknesses, as well as external opportunities and threats. The report also examines the application of SMART goals and the importance of monitoring and evaluation in achieving strategic objectives. Furthermore, it critically appraises the importance of change management within Tesco, highlighting the need to understand, communicate, and implement changes effectively, especially in response to challenges like the COVID-19 pandemic and Brexit. The analysis emphasizes how Tesco adapts to market changes, utilizes technological advancements, and focuses on legal and environmental factors to ensure employee satisfaction and sustainable growth. The report concludes by summarizing the key findings and emphasizing the practical application of these strategic tools for Tesco's continued success.

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Critically analyse concepts and models that relate to organisational strategy..........................................3
Critically appraise importance of change management............................................................................7
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Strategic management refers to an ongoing planning, assessing, examining the necessities
of business enterprise so that goals and objectives can be meet effectively and efficiently. This
strategic management helps in the changing the business environment so that higher success can
be gained by the company that will helps in longer sustainability. This report is based on Tesco
Plc. that is one of the largest grocery multinational stores in UK who deals in number of products
like food, clothing, home ware etc. It includes the concepts and models that help the
organisational to develop strategy for their profit earning. it includes internal and external factors
that helps in analyzing the best strategy for the business enterprises. In also involves the
importance of change management that helps in developing the right perception of change so that
effective communication can be done within the working environment (Ansoff and et. al., 2018).
MAIN BODY
Critically analyse concepts and models that relate to organisational strategy
Strategic management- It defines the analytical tool that includes setting objectives,
competitive environment, examine internal and external environment for managing and
organizing internal working environment. It also ensures that management of the company can
rolling the strategies effectively. In case of Tesco Plc this strategic management helps the
manager to get the positive results in success by analyzing the internal and external environment
effectively(Wheelen and et. al., 2017). This process that is adopted by organisation for analyzing
strategy is given below:
Process used by organisations for determine strategy
It is vital for the business enterprise to examine the strategies so that appropriate results
can be come out. In this Tesco PLC manager can focus on enhancing their profit margin for this
they need to determine the organisational internal and external factors so that appropriate
outcome can be seen by the firm. This process includes the vision, mission, objectives, SWOT
analysis, pestle analysis evaluate and monitor. The strategic process that is adopted by the firm
can be elaborated below:

VISION- The major mission of Tesco Plc is to offers and develops what matters better for
customers and company. it main reason for sustaining is to meets the needs of customers on
priority basis and also act as a responsible for communities.
MISSION- The Tesco Plc mission is to be Campion for the buyers by helping them to enjoy a
better quality in their life by enjoying the easier way of living. In this company mainly focus on
the team and developing trust and respect within each other.
OBJECTIVES- The major objective of Tesco is to provide the grocery, clothing goods,
electronics to their customers so that they get all the necessary items at one place. There main
objectives is to attracts the large base of customers and gain high profits and revenues(Hitt and
Duane Ireland, 2017).
Models for determining organisational strategy
SWOT ANALYSIS
It is one of the best tool for the Tesco to determine strategy that is beneficial for company
because by using this company can understand their strength, weaknesses, opportunities and
threats so that they are working on eliminating threats and weaknesses and focus on attracting
opportunities and strength so that high results can be seen out:
Strength Weaknesses
 The main strength of Tesco is huge
network of their retail stores that is
convenient for customers. This also
helpful for taking the market shares
from the competitors.
 Another one is efficient suppliers who
supply the raw material in cost
effective, this will vital for operations
of organisation.
 The main weakness of Tesco is the
failure in US and Japanese market.
 Due to controversy of fraud scandal
Tesco face the issue of customer
dissatisfaction. There profits are
majorly affected because of huge credit
and debit(Trigeorgis and Reuer, 2017).
Opportunities Threats
 The opportunities for Tesco is  The major threat of Tesco plc is their

operating the business operations
within new emerging market so that it
helps in high growth and maximize the
market share by attracting more new
customers.
 Their adopting the use of digital
technology for promoting and selling
their products to customers is the major
opportunities as per today’s business
environment.
high competitors that are present within
market such as Morrisons, Waitrose,
ALDI etc. who also offers their good
similar to Tesco. it will impact the
profits and customers base.
 Due to Brexit occur in the UK, tesco
face the major issues in doing the
operations within many European
countries.
PESTLE Analysis
It is the vital for analyzing the external environment so that best strategies can be adopted
for gaining higher profits. It involves six factors in context of Tesco it can be shown below:
 Political factor- Tesco is a leading grocery company that operates in number of countries
such as Hungary, Poland, Ireland, UK and many more. The home market of company is
in UK where political condition is very stable, but because of Brexit there is lot of
uncertainty is present for Tesco in dealing in other European countries. As company is
proved that they are capable of responding the present and future laws effectively and
also adjust their business and marketing policies and standards according to that that will
not affect the business operations majorly(Meyer, Neck and Meeks, 2017).
 Economical factor- In current scenario, Global economy is majorly affected by COVID-
19, due to this income of the people goes down because of losing their jobs. This will
affect the spending of consumers and switching towards the cheaper brand. It will affect
operations and profit of Tesco. In this because of high labor Cost Company operating
cost also affected and it will indirectly impact the economy of country(Duygan and
Meylan, 2015).
 Social factor- This reflects the perception, values, needs and demands of customers
within particular society. In this Tesco have majorly focused on responding the changes
occur in society related to demands. For Instance- Due to high demand of Halal Meat in

UK, company offers the independent meat counters in their stores so that large number of
customers gets attracted and company profits would rose. In this in some market there is
high demand sin Vegan products that are mainly more European countries is the best
opportunity for Tesco growth.
 Technological factor- In current business environment demand of technological
advancement is more and it also helpful for organisation to grow their profits and
revenues. In Context of Tesco Plc, they majorly focused on technological advanced in
previous many years as they introduced club card to their customers in all counties. They
also offers the self checkout services so that customers can conveniently do shopping that
will helps in retaining them and attracting new one. It also reduces the cots so that high
revenues can be gained(Hitt, Ireland and Hoskisson, 2016).
 Legal factor- This factor reflects the laws and legislation for welfare of employees so
that they are satisfied within working environment. In This Tesco is effectively focus on
employment equality in which they provide them salary as per their capabilities so that
they do their best and company earn high profits.
 Environmental factor- This factor focuses on laws and regulations which are regulated
by government for environment safety. In this people of the country also involves
focusing on removing the environment issues. In context of Tesco plc, the also focus on
environment safety and regarding this they take a vowed to removing their millions of
plastic bag in packaging at the end of 2020.
From above analysis it is to be evaluated that using SWOT or PESTLE are effective tool
for gaining the high profits and sustainabili8ty to the business. Applying PESTLE analysis by
the organization helps in giving the competitive advantage and also enhance the market share
by effectively understand the business environment several factors. but at the same using this
approach is very expensive and time consuming due to which firm profits and decision
making will be affected. In this using SWOT Analysis it is effective for developing the
brainstorming sessions within the corporations but at the same time Tesco cannot use this in
setting the priorities related to gaining profits and revenues.
SMART GOALS

This SMART goals are developed by the Tesco manager for enhancing the longer
sustainability and profits by developing the loyal customer base. These goals can be shown
below:
 Specific – In this Tesco except to reach and attracts more customers base and profits by
offering their goods and services to the people.
 Measurable – In this manager of Tesco can plan to maximize their base of customer by
15% and profits by 12%.
 Achievable – In this organisation is plan to attain the goals by offering proper training
and development sessions to their staff members and also hire new ones that are capable
for gain task in specified time frame.
 Realistic – In this Tesco is enhancing their sales and profits by analyzing present and
past data related to sales and revenues.
 Time Bound- To attain this measurable goals which are maximizing the customer base
and profits firm needs around one year for attaining their goals in effective and efficient
manner.
MONITOR AND EVALUATION - In this company will adopts the key performance indicator
so that performance can be evaluated in effective way at every stage . In this Tesco manager can
adopts the benchmarking tool for setting the goals according to the market standards so that
effectiveness can be shown within profit earning prominently(Parker, Parsons and Isharyanto,
2015).
It is critical evaluated that the above models that are PESTLE & SWOT is vital for
company growth and also related to analyzing internal and external environment of the Tesco
plc. This tool helps in determine the best strategy for the company as they majorly invest in
technological advancement so that high customers base is to be attracted. Focus on legal and
environment factor so that employees are satisfies and accept changes effectively that give
results in maximizing growth (Pederzini, 2016). Using this process for determining the strategic
process helps in providing the prominent results to the company but at the same time it will
needs experts so that it can be done successfully.

Critically appraise importance of change management
Change management process refers to that system that is design for processing the
request, analysis attainability, implementing, planning and evaluating the changes to a system.
The main aim is to process of tracing the changes that are integrated with the set of factors. It
delivers the benefits of improving affected system within organisation by satisfying the needs of
customers. In context of Tesco plc, it include major setback of attracting customers in the
Pandemic situation so that they get high profits and revenues and sustain strongly in competitive
market.
 Understand the need for change- It is the first step that is very helpful to understand
the change. In this manager of Tesco can determine the need of change so that effective
solutions can be addressed. Due to Pandemic, people spending power is low because of
loosing their jobs this will affect the company profits and revenues? Because of Brexit
their operations are affected in negative way. Because of all these setbacks firm need to
re-organized their business so that they get returns(Baumgartner and Rauter, 2017).
 Communicate needs and involve people in developing change- In this firm will focus
on analyzing the needs of customers and also encouraged organisation staff members so
that changes can be implemented successfully. Due to COVID-19 people want that they
get the goods and services at low cost with proper sanitization and hygiene. In this Tesco
manager can motivate their employees so that they can focus on customer demands that
will generate high profits. This is effective because the staff of Tesco is very flexible as
they accept the changes very effectively and efficiently(Fernandes and et. al., 2017).
 Develops change plan- In this manager of Tesco can develops the change plan to
fulfilling the customer’s needs requirement so that they can get high profits and market
growth. In this they can develops the changes in delivery by restarting their delivery
saver plans with proper sanitization and in a cost effective manner. Due to Pandemic they
can do changes in their online delivery by offering the products with proper hygiene and
sanitizations. in this they need to train their staff members appropriately so that they can
accept changes in significant way. This will increase the base of customers and also helps
in maximizing profits and sales volume within a short period of time(Vishnevskiy,
Karasev and Meissner, 2016).

 Implement and execute change- After developing the change plan it is very vital for
manager of Tesco to implement the plan successfully so that objectives can be attain
successfully. In this firm need to compare current and past performance of implementing
change so that blockages and misunderstanding can be removed by taking corrective
actions.
Importance of planning and executing the change
It is to be critically evaluated that for Tesco planning and executing change is very
beneficial for their survival and growth in their long term success. Some importance can be
evaluated for the organisation that can be shown below:
 The first importance of change management is to plan the change as per the customer
demand in the market and it can manage by the right people at the correct time. It also
helps in enhancing the employee acceptance based on change so that successful results
can be gained out(McGee and Sammut-Bonnici, 2015).
 It is beneficial for creating the opportunities to develop the best practices so that team can
be developed effectively who fulfills the task in an effective and efficient way.
 Implementing and planning the change is very significant for gaining the competitive
advantage within marketplace and also enhance the high market growth so that it will
attract the large base of customers (Rosenberg Hansen and Ferlie, 2016).
 Adopting effective change management helps in reducing the complexity in risk that is
related to change. This also helps in enhancing the customer service and appropriate
service to clients from the knowledgeable employees of the Tesco.
 Due to effective change management process the performance of the team mates can be
increased as they feel supported and understanding the change process effectively.
Some importance of change management can be shown in below table:
Basis Importance of change management
Cost Due to effectively implement the change the
cost included in this sis also low so that
attracting customers and gaining high profit

margin would be achieved successfully.
Sustainability Due to implementing and planning the change
management Tesco develops their higher
sustainability within marketplace because
changes can be done for fulfilling the needs of
the market. this will generate high sales and
profits and also attracts the large base of
customers. In this employees are also satisfied
with their work as they get motivated with
proper training and rewards so that they
indulge in gaining objectives(McGee and
Sammut-Bonnici, 2015).
Risk Change management is beneficial for
eliminating the risk complexity within the
business firm. It is possible because due to
change management team members work
coordinately so that target can be achieved in
effective and efficient manner.
Transformation process The major importance of organisation change
management is that it helps in ensuring the
transition of new processes so that it can done
smoothly that can gain profits and satisfy the
employees who are working under the change
management process(Barros, Hernangómez
and Martin-Cruz, 2016).
CONCLUSION
From the above report it is to be analyzed that strategic management refers to gaining
high profits and longer sustainability within marketplace. It inculcates the pestle and swot
analysis for examine the internal and external environment so that effective and appropriate
strategy can be developed by the firm for their long time success. It also helps in making changes

within environment as per the environment so that it will attracts the large number of customers
so that it also gain competitive advantage. From preparing the above report the objective of
understanding the strategic process is fulfilled and also the company can get higher result. This
also helps in enhancing the high knowledge regarding the change management on the company
and their related cost so that high profitable results can be attained by the company.

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