TESCO Company Strategic Evaluation: A Comprehensive Analysis

This report provides a comprehensive strategic analysis of TESCO, a leading global retail company. It begins with an introduction to strategic management and then delves into TESCO's mission, vision, and objectives. The main body of the report examines TESCO's internal and external factors, utilizing the VRIO model to assess its resources and the PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors influencing the company. Furthermore, the report applies Porter's Five Forces model to analyze the competitive landscape. The report concludes with an overview of TESCO's strategies and their implications, providing a detailed evaluation of the company's strategic approach.

Strategy Evaluation

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Task 1..........................................................................................................................................3
Task 2..........................................................................................................................................4
Task 3..........................................................................................................................................5
Task 4..........................................................................................................................................7
Porters Five Forces Model .........................................................................................................7
Task 5..........................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFRENCES ................................................................................................................................12
Books and journals....................................................................................................................12

INTRODUCTION
Strategic management is the the process or direction of an companies origin to
accomplish their targets and aims. Strategic management includes scope aims, examine the
agonistic surroundings, study the internal factors of the company, evaluating schemes and plans
of action , and insure that directions list out the schemes (Hordyk, Newman, and Suatoni, 2017).
This study is analyse the strategies of the TESCO company. TESCO is a British international
company of food market and broad retailer, headquartered in Welwyn Garden City, England.
TESCO is the very largest company in the globe. This context is going to study about the
mission, vision, objectives and the internal and external factors of the company that create
effects on the company during development and expanding their business. This report also
defined the competitiveness and challenges of the company. So in this context there are some
strategies that going ton explain strategies of the TESCO company.
MAIN BODY
Task 1
TESCO is a multinational company headquartered in Welwyn Garden City, England. TESCO
company was established in 1919 by Jack Cohen. TESCO organisation has varied into many
areas like retailing books , vesture, electronics, furnishing, software's and many more products.
They have many outlets and stores across the globe and it is a very largest company in the globe.
Mission of TESCO: To create that matters great and fine means they want to create and
make those things that matters and create better relationship with customers.
Vision of TESCO: To be the much extremely quantitative enterprise in the market and
they want to make more loyal customers and they want to operate with more honesty and create
best connection with shareholders, customers and society.
Objectives of TESCO: To enhance and develop their business in the market.
 To analysis and understand their consumers as compared to the competitors.
 To be more advanced and energetic in the industry.
 To gain more respects from the customers.
The father of TESCO company is Jack Cohen. He ingrained TESCO in the sort of a little
industry compartment in 1919 ,London. Since the past some decennary TESCO has fully grown
to be the globe tertiary big food market wholesaler. The company are best-known for its

consumers facilities and services. Their scheme of maturation and enhancement are dispersed
upon non nutrient, wholesale employment, Planetary and assemblage consider UK enterprise.
The industry portion of TESCO is increasing at a proportion of 7% because of concavity that is
reasoned to be dilatory than the normal proportion of maturation and development. This abrupt
alteration is due to the dynamic and modification in the eating and lifestyle habits of the
consumers (Hendel, Jabbar,and Mahata, 2017). According to the company TESCO enterprise
scheme, a company is divided into cardinal assorted evens on the basis of the company. The plan
of action utilised at the advanced plane is state as incarnate step of company scheme. The
scheme that is applied at mid-level is state as enterprise plane scheme and likewise the scheme
enforced to manage the low level of direction accountable for the prosperous bringing of the
company is state as functional and serviceable scheme. Surroundings value supply helpful
implement and equipments for examine company needs and desires in discourse to the
manufacture is accented by agonistic place and point.
Task 2
VRIO Model of TESCO
Resources Valuable Rare Inimitable Organised
Products Yes - - -
Financial Sources Yes Yes - -
Employees Yes Yes Yes Yes
Patents Yes Yes Yes Yes
Valuable –
Products : These are much important for the company because they help to company to increase
its productivity in the industry.
Financial Sources : These sources take and put so many states in the company and those all
operations of the firm execute with finely.
Employees : workers are much needed and priceless for the company because its support the
company to reach their goals and enhance their business.

Patents : These are also much precious reason is they help to create a goodwill towards the
company.
Rare – Rare resources define uniqueness of the resources.
Financial Sources : The TESCO has much rare sources because that will help the company to
enhance their business.
Employees : In TESCO company workers are much loyal and hard-working and much skilled
and they are provided by very good facilities so they are rare.
Patents : The patents constricted for its goods and profession so that sort these patents as
unique.
Inimitable – These resources cannot be traced by anyone.
Employees : workers of the company can not be copy by anyone because every individuals have
various mindset and personality.
Patents : Patents are unique because these are lawfully certified by the authorities.
Organised –
Employees : employees are organised in the company because they follow some strategies and
rules of the company to maintain organised form in the company.
Task 3
Pestle Analysis
Pestle model can be characterized as a systematized tool of identifying and examining the forces
that prevails in the external environment of a business venture. It highlights upon contrasting
extraneous elements and component that has the ability to make an impact on the overall
functioning of an organisation (Sasmal, and Nath, 2016).
Tesco's Pestle Analysis
Political Factor
In the current industry scenario, Tesco is an organisation that operates globally and its branches
are scattered all across the globe. Being one of the biggest retail organisation, the company is
entitles to obligate to all the policies and regulations in order to make sure that the products and
services offered by the company are safe and secured. The company needs to regularly examine
the dynamic political changes in the concerned countries it operates in. It is essential for Tesco to
make sure that the there is stability in the countries its planning to regulate and expand its
operations in as in order to sustain in the market for a longer time phrase. For instance,

introduction of Brexit may change the game of various big players in the market industry. It can
also lead to possibilities of fluctuations in the sales operations of the Tesco as well.
Economic Factor
Tesco needs to properly examine the economic alterations of the respective countries it carry out
its functioning in so as to analyse the determine the affects associated with the expenses,
revenues, profits, sales etc. Tesco is required to be up to date with the modifications in the
various policies in relation with the taxation so as to form appropriate decisions and strategies in
accordance with the same (Kitsios, and Kamariotou, 2017). Although Tesco's carry out its
operations in different parts of the world but its largest market share prevails in the United
Kingdom. It is necessary for the company to be aware about the inflation, deflations,market
trends, pricing policies etc. of the concerned country in order to ensure that the sudden changes
in the economic environment do not lead to adverse effects on the company's growth in the
industry. It is extremely necessary for Tesco to implement effective strategies in order to cope up
with the economic changes in the market environment and the unfavourable factors associated
with the same (Vedung, 2017).
Technological Factors
Retail market is growing and accelerating and in order to sustain and enlarge its operations,
Tesco needs to capitalise on the advanced technology so as to hold its current position in the
market. Tesco has incorporated various technological aspects and advancements in its current
operational functioning such as introduction of online portals for shopping and reviews, social
media platforms, online advertising and promotions, online interaction with the consumers etc.
The company has also started implementing the cash less billing option to its consumers in orde
enhance the customer experience of the individuals investing their time and money in the
company.
Social Factor
Tesco is a global company that has customer base from all around the world. The company has
customers with diverse cultures, races, background. The fact that the consumers belongs to
different regions and areas of the world , their buying behaviour and choices are also governed
by the society they belong to. Their preferences can also be influenced by the cultural
environment they have lived in and the people they have grown with. In order to satisfy and live
up to the expectations and requirements of the customers, Tesco needs to take into consideration

the choices and preferences of various consumers and should produce the products and services
that fit into their criteria. The company needs to ensure that its respective offering should not
hurt the sentiments and feelings of any part of the society. Lately it can be observed that the
consumers are shifting towards the natural and healthy products and services and are trying to
avoid the purchase of chemical based products in the market. Tesco needs to capitalise on such
opportunities and should invest its time and effort in establishing a natural and health conscious
products line in order to attract and persuade the consumers to buy the products of the company.
Legal Factors
The fluctuations and modifications in the government led policies and structures create a big
impact on the existing functioning of the organisations. In order to facilitate the smooth
operations, Tesco needs to follow and oblige to the domestic as well as international laws. For
instance, the department the concerns with the safety and protection of the food retailing has
formulates specific rules that needs to be taken into consideration by all the retail organisations
of the industry. Violations of the laws may lead to the legal intervention or the imprisonment of
the individuals that is at fault. It is important for Tesco to work in accordance with the
government led guidelines in order maintain its authenticity and credibility (Bo, Shuang, and
Wei, 2016).
Environmental Factor
The company has lend its helping hands to uplift and improve the current standard of the society
in order to make the same more sustainable. The company has started out various initiatives so as
to preserve the natural environment. Tesco has started reducing and eliminating the waste in the
production area. The company is also planning to reduce the chemical discharge to minimum so
as to promote healthy and safe environment.
Task 4
Porters Five Forces Model
The respective model highlights and discusses the the five leading forces that can have major
consequences on the short term as well as long term profitability of the business organisations.
Threat of new entrants
Entrance of new organisations and ventures enhances the degree of creativity and innovation in
the retail industry as well as increases the competition within the industry. Tesco needs to be
equipped with the effective strategies in order to gain added advantages in the market and to

tackle the new entrants (Zeng and Li, 2017). The company can make changes in its pricing
strategies in order to suit the market and the cost incurred by the company can also minimized in
order maintain its relevancy in the market and to guard its market share in the industry as well.
Bargaining power of supplier
Suppliers can be considered to be one of the most crucial components of an organisation as
various organisation depend on the same in order acquire their raw material. If the suppliers are
carry out excessive bargain from Tesco it can lead to the reductions in the overall margins of the
company (Mahase, 2020). Tesco needs to ensure that it negotiates well with the suppliers and
come up with good deals that can enhance the productivity and profit generation of the company.
The company can do the same by regulating effective and efficient supplying intermediaries with
various suppliers in order to leverage from the same in the market place.
Bargaining power of buyers
The customers and buyers are very demanding in nature and want to capitalise on the quality
products available at minimum prices. This nature of the costumers can have negative affect on
the revenue generation of Tesco. So in order to overcome the same, Tesco should encourage its
customer retention so as to so as to enlarge its customer base. Larger customer sets minimizes
the impact of bargaining at the buyer's end. Hence, Tesco can increase its profitability by
reducing the bargaining power of the buyers.
Threat of substitutes
The introduction of substitute products may impose a major threat to the functioning of Tesco as
these products are very similar to the existing products in the market and serves the exact
purpose as well. Due to this reason, the industry profitability mat suffer and the organisation
prevailing in the same also get disrupted by the introduction of substitutes. Tesco needs to
implement differentiation strategies in order enhance the value of its offerings in the market and
to differentiate the same from other business organisations substitute goods and products
(Kitsios, and Kamariotou, 2019).
Rivalry within the industry
Retail industry can be termed as a very competitive industry and aggressive competitions
prevails within the companies operating in this industry. The extensive rivalry leads to the
decrease in the prices offered by the company to its consumers. Since the company is regulating

its functions at such a vast range, it has various rivals in the industry and this may have a long
term impact on productiveness as well as profitableness of the organisation.
Task 5
STP approaches of TESCO
TESCO organisation is international brand and founded 1919 by Jack Cohen. The
company has different kinds of mixture of products means they trade different types of variety
like vesture , footwear , cosmetics , grocery, furniture and many more (Perez-Franco, Phadnis,
and Sheffi, 2016).
Segmentation, targeting, positioning in the Marketing strategy : TESCO organisation are
trading in the various sector like clothing , stylish, and many more products, the company
applied mix of several demographic, psycho graphic sectionalization dynamic like property or
era , sexuality , financial gain , attributes , marque loyalty and some others are also. TESCO
organisation applied several kinds of schemes and actions for point out and working with
challenges and other companies in the industry.
Segmentation of market
partitioning is applied to analysis the a democratic and ordinary property of the
individuals in the industry. That consider and permit the company to enhance and amend more
in the appropriate and relevant merchandising decision. The company TESCO put-upon to
analysis the customer and clients opinion and their desires , requirements so that that will help
them to concentrate on the communication and thought and implement this . These
segmentation enhance a very better effects on the organisation towards the merchandising
decision and change. So there are few partitioning protean that is applied at the time of
segmentation in the industry like values , demographic , life stages, geography, psycho graphics
etc. (Barde, Shin and Yacout, 2016).
Demographic Segmentation :
This partitioning has their personal protean such as age, living interval, sexuality,
financial gain and some more.
 Age : Age is the very initial protean of this segmentation. This variable is applied
because as per the age consumers needs and wants are transformed . TESCO is
analysing and more aware from this protean and they create its products accordingly.

 Life Cycle : This protean is almost connected with the age . This variable consumers
unit explained its requirements like babies or children want toys ,youngster want more
technologies and much stylish clothes.
 Gender : This variable is much essential according to the TESCO organisation because
they provide products according to the needs of men and women.
 Income: TESCO organisation want wide customer base so they analysis the market
according to their disposal income always taking care of the income variable because
they want wide customer base so concentrating on this variable.
Psycho graphic segmentation
This partitioning is introduce for point out few units in accumulation. This partitioning is
take individuals life style , desires, choice, way and their thoughts as well so, there are few
components that support the company to split a accumulation according to this segmentation
(Milner-Gulland and Shea, 2017).
 Lifestyle : there are different kinds of objects that turn much touristy in wholesale
industry and its the much touristy and famous portion. Each individuals has various
living style and every person has different taste , thoughts , perception about that what
are things that they want to carry or they do not , how they want to spend their money
because there are several living ways in municipality area and in agrarian areas.
 Social: The company TESCO makes a portions on the basis of the clients because in
the TESCO there are few superior marque which is concentrating on advanced level
financial gain consumers so TESCO make a portions of rates and cost accordingly.
 Personality: this partitioning is based on living way and societal assemblage. If a
individuals needs to applied high attribute or lifestyles so the person have to purchase
branded and advanced and expensive choice in vesture and they have to hold up that
lifestyles.
Market Targeting
Market Targeting is applied to analysis that the organisation have took finest and good
possibility for them. After identifying of each segments The organisation point out the
consumers means they present its thoughts and boost their organisation. The initial pace is to
examine the property of the portion which is helpful or not so, there are different kind of point
out strategies like traditional targeting and behavioural targeting .

Market Positioning
After partitioning of the protean and consumers point out they roll up immaterial
information of the consumers like their needs, desires,wants and response of the consumers.
After examine theses needs The company TESCO aligning their goods and make a specific
merchandising manner and show it on the correct period and at correct location. By applying
theses section TESCO is discovery the issues of the consumers. goods aligning make a best and
finest effects on the consumers that will support them to improve and enhance themselves in the
industry(Cetin and Sayar, 2016).
CONCLUSION
It can be concluded that strategy determination as well as evaluation has a major influence on the
the growth and expansion of the business organisation. Numerous frameworks such as PESTLE
analysis, Vrio Analysis, Porters analysis provides assistance to Tesco in order to better the
decision making quality of the company. STP approach also helps Tesco in order to
segment,target and penetrate and position the products among the target consumers of the
organisation. The company is taking the right steps for its development in the market but it
needs focus more on the strategy building and evaluation in order to tap new markets and to
facilitate the further expansion of its existing line of business operation in its respective industry.

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