Strategic Management Report: Tesco's Competitive Analysis and Recovery

This report provides a comprehensive strategic management analysis of Tesco, a global retail giant. It begins with an introduction to strategic management and then applies Porter's Five Forces model to assess Tesco's competitive environment, considering factors like the threat of substitutes, new entrants, competitive rivalry, and bargaining power of buyers and suppliers. A case study approach examines Tesco's internal challenges, including employee dissatisfaction, productivity issues, and operational closures. The report then proposes a recovery plan, recommending the use of the Ansoff matrix to explore market penetration, product development, and diversification strategies. Finally, it concludes with a discussion of risk management strategies to mitigate potential challenges and maximize profitability.

STATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Explain M.E. Porter’s model of competition supports the experience of practitioners.........3
A case study approach............................................................................................................4
Recovery plan.........................................................................................................................5
A risk management strategy...................................................................................................6
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9
Books and journals.................................................................................................................9

INTRODUCTION
Strategic management can be defined as an overall direction towards the organisation
where it involve different kind of functions which are directly related to development of
objective, policies and plans within the organisation to achieve those objective by
implementing the plan and properly allocating resources within the organisation in strategy
manner (Rothaermel, 2016). In the current report, Tesco is chosen where the discussion about
different strategic management policies of the organisation will be considered. In the
beginning of this report, there is discussion about different aspects of strategic management
where the porter's five force model will be analysed in context of Tesco and competition
within the environment will also identified. In the middle of this report, there is discussion
about a case study related to the test and its functioning where a proper problem within the
Tesco will be identified related to strategic management (Schilling and Shankar, 2019). There
is also a discussion about a proper recovery plan which can be executed by the CEO of
Tesco. In the end of the report there is a risk management strategy which is advised to the
CEO of Tesco where they can reduce the risk within the recovery plan and can maximize the
profitability of the organisation.
MAIN BODY
Explain M.E. Porter’s model of competition supports the experience of practitioners
Porter's five forces model
It is that Framework which is used by different organisation to identify the
competition within the environment as well as identify different factors related to the
competition which can be reduced. This also help organisation in achieve its goals and
objective by eliminating the competition. Tesco is a global firm and it is important for the
organisation to adopt this model where it can identify different factors within the market as
well as minimise the negative impact of these factors on the functioning of organisation.
Threat of substitute products: Best operating at global level where there are various
competitive to Tesco and also there are number of products. Tesco is performing in retail
business where there are various small scale products and convenience stores which are
selling the organic products and these products are giving a tough competition to the Tesco.
So, this acted as moderate factor for Tesco because company have to form separate strategy
related to substitute in market (David and David, 2016).

Threat of new entrants: decision competitive advantage for the organisation like
Tesco because look askew is trading at global level and formatting its level it require use
capital investment as well as a long period of time for getting equalling to the organisation.
Possible for any new entrant within the retail industry to launch such type of business operate
different functions. There are also various big players in the market like as the sensory
Morrison are also offering different quality of product as well as have a huge capital
investment (Ginter, Duncan and Swayne, 2018).
Competitive rivalry: the large scale organisation as well as dealing in retail sector for
a long time. Make various rivalries to the company because of the competitive environment.
The major rivalry of Tesco is ASDA. it is also operating at global level as well as provide the
goods and services on the cheaper rates in comparison of also provide effective quality to
customer where customer are getting loyal to the organised this is impacting negatively on
the Tesco and organisation have to make proper strategy where it can survive within the
environment.
Bargaining power of buyers: this factor in porter five forces model implies to the
power of customers within the market in relation to the organisation. In context of Tesco, I
have large number of buyers within the competitive market where the organisation is trading.
These buyers are also loyal to the organisation because of the quality as well as mechanism
adopted by the organisation. This make the bargaining power of buyers low in comparison of
organisation and increase the profitability of organisation as it can charge more on its product
(Moutinho and Vargas-Sanchez, 2018).
Bargaining power of suppliers: are always active in competitive advantage to the
organisation because they provide goods and services to the firm for further sale. Retail
industry there are large number of sellers who are selling products to different organisations.
Reference to Tesco, it also have large number of suppliers within the market where it is
reading but in the international market organisation have to identify specific bias because of
low availability. This factor and moderate factor to Tesco because it have to formulate
separate policy for bargaining to those suppliers was selling the product which have
international value and also important to the organisation.
It can be identified from the above porter's five force analysis that school is operating
at global level and it is important for organisation to identify different factors there are some
factors like of bargaining power of buyers and threat of new entrants which act positively on

the organisation. But some other factors are moderate or negative impact on organisation
which has to be kept in mind by the CEO of Tesco.
A case study approach
Tesco is a global organisation which is operating at retail industry within the market
of UK as well as other countries. Tesco provide various kind of products related to food
clothing and many more sectors on its retail stores.it is a global brand as well as a large
number of customer place where it provide quality services to customer for satisfying needs
and increasing their satisfaction. In current environment S2 is facing some of the issues
which are related to its profitability productivity and expansion of its operation in different
global economy (Hitt and Duane Ireland, 2017).
There are various problems which are faced by Tesco within the competitive
environment the first problem is the employee dissatisfaction within the organisation. Due to
lack of motivation as well as poor interest of management within the organisation leads to
who is satisfaction of employee as well as high turnover of employees. Poor health policies
and security policies are also acted as a reason behind the destruction within the employees
and it increases different kind of issues and conflicts within the firm. The productivity of
different departments where there is no motivation and non-cooperation between departments
(Morden, 2016).
Tesco is also facing the closure of operations in various countries. The major closure
of operation of Tesco is in Japan and US. Hear it made huge investment on its retail stores
but it fail to operate because of different policies of the government as well as lack of proper
management within the organisation. Negative on the performance of Tesco and also reduce
its profitability for that period of time.
In year 2015, a senior employee of Tesco raise the complaints against the manager of
the organisation to the top level management that they are not paying attention on the safety
and security of the employees within the organisation where they are violating the rules and
regulations made by the organisation as well as government related to safety and security
needs of employees within a firm. All acted negatively to the organisation as it decreases the
profitability of the form because of non-healthy environment. Employees within the
organisation are losing their productivity as they are not so interested in doing the work
because of low security (Meyer, Nec and Meeks, 2017). Companies also facing issue related
to safety concern where it is claimed by different types of file that safety and security of the

staff decreases as company increases its sales and taking more risk to increasing the sale.
Also become a reason for closure in operation of organisation within us and Japan. This is
because the safety and security norms within these countries are higher. The standard can be
made by the organisation which acted negatively on the performance of employees and the
profitability within the organisation. This all leads to closer in operation within both of these
countries.
So, it can be identified from the above mentioned study of Tesco that organisation
suffering from the low productivity and profitability because of dissatisfaction within the
employees which also leads to team motivation within the organisation.it is also identify that
loyalty of the employees are continuously decreasing towards the organisation which can also
act in future brand image and Goodwill of the firm within the market. The CEO of also have
to make a proper amendment within the policies where it can increase the safety and security
of employees as well as maintain a proper working environment to increase the welfare of the
organisation with ensuring long run (Trigeorgis and Reuer, 2017).
Recovery plan
Recovery plan can be defined as that strategy which is used by an organisation to
overcome its demerits or weaknesses within a particular period of time. In context of Tesco it
is suffering from the non-cooperative actions from its employees as well as employee
dissatisfaction within the organisation (Hit, Ireland and Hoskisson, 2016). Companies also
feeling its operation in different areas is important for organisation to use a proper strategic
plan which will help the CEO of Tesla in proper management organisation can use different
policies and theories. ANSOFF matrix can we use by CEO of Tesco to identify different
factors in market and increase the motivation of employees within the organisation. Recover
its marketing strategy by use of this matrix.
ANSOFF matrix
ANSOFF matrix is that matrix which is used by organisation to identify different
aspects of increasing its market as well as gaining the advantage in the market by adopting a
proper policy.
Market penetration: Are those strategies which include the improvement within the
existing product of the organisation within the existing market to increase its market share
and profitability. The CEO of Tesco can use this policy where it can increase existing product

in the market as well as improve its policy regarding the employee benefits where company
doesn't require high investment and can use advertisement as a way to promote its product
within the existing market (Baumgartner and Rauter, 2017).
Product development: it is a strategy which is adopted by the organisation to
develop a new product within the existing market. Tesco trading properly but it has its major
operation within the UK so here organisation can get the policy of development a new
product where it can easily increase its market share as well as decrease its competitive
rivalry by help of the new product. New customer to the organisation and increase its market
shares as profitability (Nickols, 2016)
.
Market development: market development is a strategy which is used by an
organisation to launch existing product within a new market. This policy is not effective for
Tesco as it tried this policy previously where its feel its operation within America and Japan.
This type of strategy also interviews investment as well as a proper market research within
this market which is impossible for test score in current time because of low interest of its
employees (Peppard and Ward, 2016).
Diversification: the most risky strategy which can be adopted by an organisation
because it includes launching a new product within a new market. Strategies directly related
to use investment of the organisation on the product as well as identification of the new
market so it is impossible for organisation to doing so because of current situation between
different markets (Aguinis, Edwards and Bradley, 2017).
This of metric will help organisation adopting a proper strategy to solve its problem.
In my opinion, Tesco can adopt the policy of product development this will help the
organisation in guiding the employees as well as fulfilling their basic requirements.
It is also recommended to the CEO of Tesco that they have to also use a proper
strategy and feedback mechanism within the organisation where they can identify the
complaints of employees within the organisation for management staff and high level
authority employees. This will help organisation in maintaining a proper working culture as
well as reducing the implied discuss the section within the organisation. This will also help in
implementation of a proper strategy where company can easily develop its product and
launch it into the new and existing market where it can increase its profitability.

A risk management strategy
Environment consists of various activities within it and its activities directly
associated with some rest. There are various risks associated with the defence strategy with
the adopted by the test for its functioning and improving its areas where there is scope for
improvement. Organisation is running tips for a long period of time where it expanded its
operation at global level so it is also important for organisation to clearly identify different is
associated with the adoption of policy and strategy for improvement vision current functions.
There are various kind of rest which are associated with strategy adopted by the organisation
and business can impact negatively and also reduce the effect of different policies adopted by
organisation for improvement. Proper process for identification and decreasing the negative
impact of risk associated with different activities is mentioned below which can be followed
by the CEO of Tesco.
Identification of risk: for minimising the risk on the organisation and adoption of
different strategy first it is important for Tesco to identify risk of adoption of the strategy.
Income tax of Tesco it is going to adopt the strategy of product development organisation
have how to invest huge amount on development of product. The major is associated with
this strategy is related to the investment and the success of the product for which organisation
have to properly identify the market and innovation items involved in the market.
Qualitative risk analysis: in this type of risk management organisation have to
identify the related to within the organisation and implementation of the business strategy
which have direct impact on the quality of work. In the current situation of Tesco the CEO of
Facebook and identify this is where the impact of performance of the new strategy can be
analysed to reduce the negative aspects. Qualitative research always related to the skills
abilities and background of individuals who are performing the function of implementation of
the strategy on a particular area. Can be minimised by the help of different factors where
organisation can achieve the profitability by increasing the chances of future growth (Durand,
Grant and Madsen, 2017).
Quantitative risk assessment: it is also important for the organisation like Tesco to
identify the risk within a quantity demanded where it can form various kinds of tabular chart
presentation and analysis which will help in identification of different risk associated with the
adoption of the policy related to product development. Development consists of various risk
related to design development and implementation of the product within the market where

organisation have to identify different strategies as well as risk associated with it this can be
qualified in quantitative manager where organisation have to locate the budget related to
product development and different aspects of their project. According to the estimate made
by the organisation to identify that the cost of product development strategy to the
organisation is around hundred million dollars.it is a huge amount so organisation have to
form of LOC per quantitative risk assessment which will help in decreasing the negative
impacts and bring out the positive outcomes related to implementation of product
development strategy (Demir, Wennberg and McKelvie, 2017)
.
Risk response planning: what is the second last step in the process of risk
management within the organisation associated with the new strategy adopted.in this
organisation have to learn all the qualitative and quantitative risk associated with the strategy
and have to manage all this risk according to the situation. Distal directly help organisation
increasing its benefits as well as joining the maximum advantage within the market by
minimising the negative impact of these risk. Business management plan consists of various
strategies and policies which are formed to minimise the risk related to the strategy adopted
by the organisation. CEO of Tesco and management should adopt this point where it have to
formally defence strategy related to the product development that how is to implement the
product what are the designs of the products and other related aspects which will help it in
executing the product and increasing its market share.
Risk monitoring and control: it is the last step in this process where all the
monitoring and control functions are performed by the CEO of the organisation are the
management staff to minimise the impact of risk and identify other factors that they will not
arise in future of reactions of firm. Also termed as a process where organisation used to do a
proper feedback mechanism to identify the impact of the risks associated with the proper
strategy as well as minimise then according to resources available within the firm (Cosenz
and Noto, 2016).
SO, in last it can be identified that Tesco is trying to change its market by product
development strategy but it have to clearly identify different factors as well as compare them
for minimising the risk within the organisation and use a proper qualitative and quantitative
techniques to associate the risk and minimise its negative impact within a given time period.

CONCLUSION
It can be concluded from the above mentioned report that there are various kind of
strategic management policies which have to be formed by organisation like Tesco. This is
because it is going from a hard time where you have to deal from various kind of strategic
management issue within the organisation as well as increase its profitability in this dynamic
environment. For doing so it can give a proper recovery plan is mentioned above as well as
manage the risk by clearly identifying different factors involved in the plant and performing
them in an appropriate manner.

REFERENCES
Books and journals
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of
moderation and mediation in strategic management research. Organizational
Research Methods, 20(4), pp.665-685.
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner
Production, 140, pp.81-92.
Cosenz, F. and Noto, G., 2016. Applying system dynamics modelling to strategic
management: a literature review. Systems Research and Behavioral Science, 33(6),
pp.703-741.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Demir, R., Wennberg, K. and McKelvie, A., 2017. The strategic management of high-growth
firms: a review and theoretical conceptualization. Long Range Planning, 50(4),
pp.431-456.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health
care organizations. John Wiley & Sons.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-
44.
Morden, T., 2016. Principles of strategic management. Routledge.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Nickols, F., 2016. Strategy, strategic management, strategic planning and strategic
thinking. Management Journal, 1(1), pp.4-7.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.

Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.