Strategic Analysis of Tesco: Competitive Strategy and CSR Initiatives

This report provides a detailed analysis of Tesco's business strategy, focusing on its competitive advantages and corporate social responsibility (CSR) initiatives. It begins by defining the concept of a 'responsible retailer' and its relevance to Tesco's operations, particularly in relation to 'The essential' brand and the 'Three big ambitions' framework. The report then identifies the competitive strategies adopted by Tesco, including an examination of its strengths, weaknesses, opportunities, and threats (SWOT analysis). Furthermore, it emphasizes the importance of monitoring and evaluation in strategic planning and analyzes Tesco's strategy for a local supermarket, including the implementation of various social initiatives. The analysis explores how Tesco leverages its brand image, customer loyalty programs, and commitment to ethical practices to gain a competitive edge in the market. The report also examines how Tesco's CSR policies and 'Three big ambitions' contribute to its brand image, customer satisfaction, and overall business performance, including market expansion and the creation of job opportunities.

Managing Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Understanding the term 'responsible retailer' and its relation with Tesco's 'The essential' and
Tesco's CSR activities and Three big ambitions' as competitive advantage for Tesco. .............3
2. Identifying the competitive strategy adopted by Tesco company...........................................5
3. Importance of monitoring and evaluation in strategic planning............................................9
4. Analysis of the Tesco's strategy fior a local supermarket and the implementation of the
various social initiatives............................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategy is defined as the direction for achieving business goals. It assists manager in
identifying the scope of operation. Strategic planning is defined as a procedure of managing the
business resources in order to achieve desired outcome (Scholes, 2015). These plans are
formulated by manager in an enterprise by considering the several factors such as need of the
situation , organisational strength and weaknesses, demands of customers , problems in business
etc. It is required by management team in an organisation to conduct the internal as well as
external analysis . As this activity will help manager in development of appropriate business
strategy. Business plan or Strategies are formed with the purpose to direct company towards
achievement of success and fostering growth (Johnson, 2016).
The complete project is based on the case of Tesco company which is operating in retail
industry. Purpose of the assignment is to develop the understanding about the responsible retailer
.assignment has focus on identifying the competitive strategy used by an enterprise in order to
gain competitive advantage in the market. It will also have emphasizes on identifying the need of
monitoring as well as evaluation of strategic plan (Armstrong and et.al. 2015).
1. Understanding the term 'responsible retailer' and its relation with Tesco's 'The essential' and
Tesco's CSR activities and Three big ambitions' as competitive advantage for Tesco.
The 'Responsible Retailers' are the business organisations or the traders that have the
major responsibility to carry out the various business operations with ethics and effective
principles and policies that will help in the better management of the various operations in the
market. It helps to meet the operational requirements of the company that helps in the better
handling of the different operations in the company. Besides this, it will help in the better
management of the corporate social responsibilities or CSR of the company (Olson And et.al.,
2018). The collaboration with 'The Essentials'. This will help the firm to take into consideration
the better management of the different business activities that will support in the better growth
and development of the company. The effective handling of the different business operations will
lead the Tesco to adopt and utilize the various business operations that helps in the effective
management of the different business solutions in the company. As a responsible retailer, Tesco
will look after effective handling of the various operations that will lead to the better
management of the different operations of the company, that will support in better productivity

and profitability. Besides this, it generates better business opportunities for the company to meet
and fulfil the needs and demands of the customers (Sia, Soh and Weill, 2016).
Other than this, it helps in the effective handling of the various business operations and
meeting the needs and demands of the stakeholders, customers and employees of the company.
The effective following of the various corporate functions and effectively satisfying the needs
and demands of the clients will help in the better handling of the various operations in the
market. The vision of Tesco to be present all over the world, as a business firm with lots of
growth opportunities and being modern and implementing the innovative ideas to improve their
efficiency as the better firm that helps in the better management of the various operations. This
will help, in the rise of the profitability and profitability of the company and meeting the
operational requirements of the Tesco plc. This will help in the effective management of the
various objectives and goals of the company will lead to the adoption of the different sort of
innovative and significant operations and business measures that will help in the better growth of
the CSR and customer satisfaction level of the employee's towards the brand. The better
management of the various business operations and the Three ambition approach helps the cited
business firm to fulfil its duties as a business firm in an effective and significant way. This helps
in the better adoption of the different innovative policies that will help in the significant and
better growth of the different operations in the company (Cascio, 2018).
The effective Corporate Social Responsibilities policies that are been taken into deep
consideration by the Tesco plc. That will help in the better improvement of the brand image of
the company. The policy of 'Tesco in Society' is the initiative that is been taken into the effective
consideration to perform the various operations related to the social jobs and the betterment of
the people in the society. The business firm has developed various policy targets or the 'Three
big ambitions' that helps in the better handling of the different operations in the company. These
ambitions are as follows:
 To create millions of opportunities for young people around the world.
 To track down the health and through this tackle the rising obesity level in the various
countries.
 To reduce the wastage of food effectively.
To manage it in an effective and significant way, it will help in the better management of
the various operations that will help the firm to fulfil its CSR and handle it in the better way to

maintain the productivity and profitability of the company. This will help the firm to handle the
various operations in an effective and significant way. These ambitions will help in the better
management of the different operations of the company. It will help in the improvement of the
brand image of the company and develop the effective policies that will lead the company to
fulfil these goals along with the CSR of the cited firm towards the society. It will also help in rise
of the respect and the band loyalty of the customers in an effective and significant manner.
The effective market and business expansion will lead to the better management of the
different operations in various countries. For example, the opening of a new retail outlet in the
locality will create the job opportunities for the local people which will help in the rise of
productivity and profitability in a better way or using the Tesco club card to provide the effective
health services to the loyal and regular customers of the company (Leonidou and et.al., 2017).
Similarly, Tesco Plc will utilise the edible resources available to produce various manufactured
goods which will help the firm to reduce and sort of wastage of food product or item and utilize
the available resources in an effective and significant manner. Such practice will not only
improve the work efficiency of the company but also helps in the effective handling of the
various operations that will help in the significant growth of the business organisation on the
global level in a very significant and effective manner, by improving work efficiency of the
company.
2. Identifying the competitive strategy adopted by Tesco company.
The Swot analysis is the tool that can be used by manager in business entity for
recognising the strength and weakness of the company. As this will help manager in developing
the appropriate plan or strategy in order to transform weakness into strength. It will also support
management team in identifying the suitable ways to improve competencies and increasing
competitiveness (Grünig and Kühn,2015)
Teco company is recognised as general merchandise retailer and British multinational
grocer which is located in England. The organisation has got ranked as third largest global
retailer in terms of profit and sales of firm. Company has ranked as the ninth largest
international retailer in terms of revenue earned by an enterprise. Tesco company has able to
achieve high market growth as well as market share due to the effective marketing strategy
created by marketing manager.

The mission and vision of the company is to achieve success and become market leader.
These are the important factors for which the strategic planning is done. As without the suitable
mission or vision the company may not get appropriate direction and will not be able to survive
in dynamic business environment. The manager in an enterprise has developed basically seven
types of different strategies in order to assist firm in accomplishment of its vision as well as
mission. Tesco vision is to become highly valuable organisation among the customers in the
market. Objective of business entity is to gain customer loyalty and retain client for long term.
Another purpose of business entity is to provide high return to its shareholders (Staake, Thiesse,
and Fleisch,2012)
 Strength : Good brand image in the
market.
 Popularity of the brand.
 Value provided by company to its
client has enabled business entity to
gain customer loyalty and develop
strong relationship with them.
 Philosophy used by organisation such
as Every Little Help has supported
business entity in attracting new clients.
 High level of commitment has allowed
firm to become most popular brand in
the market.
 Commitment to follow the laws and
regulations developed by government
has enabled firm to gain an additional
benefits and supported organisation in
expansion of business.
 Reassessment and creation of clear
business strategies has aided business
entity in achieving business goals as
well as objectives.
Weaknesses :
 The major weakness of the firm is that
it has been greatly impacted by social
and economic factors.
 Ineffective management
 Lack of experience in some markets.
 Inappropriate investment strategy.
 Business Operations in Tesco company
is still done by using the out dated or
traditional technology which has the
negative effect on the quality of goods
or services. Due to which the Business
entity has to face the complain done by
customers.
 Diverting cash from price reduction
strategies has the adverse impact on the
business performance.

 Innovation skills and strategy has
assisted Tesco in increasing the
customer base, sales and profitability.
 Company has many retail outlet
worldwide which has help organisation
in delivering products as well as
services to wide range of customers. It
has also provided customer an ease to
avail the goods or services offered by
business entity.
 It offers wide variety as well as range
of product to customers.
 The major strength of Tesco is that the
strategy of Joint venture with global
companies which has been beneficial
for firm in order to capture market
opportunities and in gaining
competitive advantage.
 Highly skilled and Talented workforce
has supported organisation a lot in
expansion of business and in delivering
good quality of products or services to
clients.
 Innovative schemes planned or
designed by manager has support
business entity in increasing sales and
profitability.
 Opportunity: The Tesco organisation
has an opportunity to open more outlet
in international market.
 Organisation can recreate or make
 Threat :
 Increase in competition.
 Changes in social , economical and
other forces in business environment

changes in investment strategy. As this
will help business entity in gaining high
return on investment and improving
financial performance.
 Company can adopt new technology for
production or operational activities. As
this will help business entity in
improving the quality of product or
services.
 As the tesco has wide customer base,
Cited business venture can enter into
new market.
 The firm can develop its own website.
As this will support organisation in
interacting directly with customers and
communicating business objectives
(Leitner, Meissner and Martyna-David,
2015)
has great effect on Tesco business
performance as well as operations.
 Decrease in price of goods or services
has negative effect on the profit margin.

 Threat to brand image due to poor
quality of products and services.
The marketing manager has planned to use business resources in order to achieve marketing
goals and objectives. Business entity has adopted the investment strategy according to which
firm has made huge investment in improving the shopping trip for its client. Tesco company has
also adopted the low cost pricing strategy has supported business entity in attracting more
numbers of customer and supported company in gaining win over competitors. It has also
provided firm an opportunity to communicate directly with customer and identify their needs as
well as demands. The another effective marketing strategy of forming joint venture with global
companies dealing in same industry has allowed organisation to develop the understanding about
the market, analyse the situation of market and develop plan accordingly. It has also support
company in gaining competitive advantage in the market and also aided enterprise in reducing
the negative effect of external factors on the profit and sale (Oyedijo, 2012)

3. Importance of monitoring and evaluation in strategic planning
Monitoring is defined as systematic as well as long term procedure which includes collection of
information regarding the progress made by an implementation project or task. Monitoring as
well as evaluation of strategy is important in order to develop base for evidence which can be
used for ensuring that the strategy is effective and will support firm in achieving desired
objectives. It also assists manager in ensuring that value is created in excess of its cost of
implementing strategy. As the effective business strategy will help in gaining additional benefits
and well as exploring and capturing several markets or business opportunities. Evaluation as well
as the monitoring of strategy support manager in identifying the scope of improvement. It also
helps manager in analysing the current position as well as performance on the company.
Business goals and objectives when evaluating business strategies that have already been
implemented. Activities and tasks are formed or planned to drive firm towards achievement of
target. Monitoring as well as evaluation process provide management tan opportunity to
establish milestones and assessing the progress toward strategic business goals and objectives. It
also aids management in improving the strategic performance , identifying errors as well as
planning the appropriate tactics to improve the same. It also supports manager in recognising the
factors that have adverse effect or negative influence on strategic planning or implementation
process. Continuous monitoring as well as evaluation assist business entity in ensuring effective
outcome. It also supports manager in ensuring or confirming the effective as well as efficient
utilisation of resources during the strategic planning process. This procedure also help
management team or project leader in controlling the activities of employees engaged in
planning (Ghezzi, 2013)Monitoring as well as evaluation process is important as it helps
management team in determining the need of additional resources as well as cost that will be
required to continue the procedure. It will aid business entity in eliminating barriers that can
occur in continuing the strategic planning process. Continuous monitoring as well as evaluation
helps management team in allocation of resources in effective as well as systematic manner. It
also aids in preventing the wastage of resources and overlapping of activities. Continuous
monitoring as well as evaluation support management team in identifying the need of reviewing
as well, evaluating business objectives. It is also important as this procedure allow management
team to recognise performance gap and fill the gap by adopting appropriate tactics.As thjis
factor can have negative effect on the outcome. Monitoring effective options for customers and

colleagues supports Tesco’s commitment to helping employees and customers make healthy
choices and lead healthier lives. It helps management team in ensuring that all the employees or
workers engaged in the activity are performing their task according to set standards. Monitoring
also allows workers to get appropriate guidance , direction and feedback or suggestion from their
leader or manager which will further assist employee in improving their performance. It also
enables workers to get the suitable tools and identify techniques for completing the task on time
and in systematic manner. Monitoring and evaluation process has support manager in
development of effective strategy which has further assisted firm in accomplishing its objectives.
Key performance indicator is the tool that is used by management team in Tesco for measuring
as well as evaluating the performance. This procedure will be essential in establishing
appropriate target and enhancing customer services (Chen and Jermias, 2014)
4. Analysis of the Tesco's strategy fior a local supermarket and the implementation of the various
social initiatives.
Tesco has effectively adopted the business plan of market penetration and business
expansion, naming it as ' Building a better Tesco' Plan. This has helped the firm to improve its
business operations in the local market of a country of its operations. The Tesco will deeply
impact the local supermarket by either collaborating with them to sell their products and services
or by acquiring them to use it as their outlet. These will help in the effective handling of the
various operations in a better way to meet the needs and requirements of the local people. Other
than this, it helps in the better management of the different operations that will lead to the
effective handling of the different business operations in a better way (Akter and et.al., 2016).
The Company can take into the consideration the effective initiatives and measures that
will help in the better management of the various business operations of the company. This will
not only help in the better increase in the profitability and profitability of the company. Besides
this, it also helps in the improving of the local business and market conditions and providing it
with a global exposure. This will help in the raising of the market place standards in an effective
and significant manner. Other than this, the better operational handling will lead to the rise in the
brand loyalty and meeting the operations of the company in a better way. Other than this, it will
help in meeting the needs and demands of the customers and fulfilling them to improve the
operational efficiency of the company. The feedbacks and the reviews received from the users or
the customers will help in the better handling of the different operations that will lead to the

adoption of the various improvement and enhancing measures to increase the business and
operational efficiency of the company. Other than this, Tesco plc will also effectively fulfil its
CSR towards the global society that will lead to the effective management of the various
operations, that will initiate the better fulfilment of the different business operations that will
help in the better rise in the work efficiency and operational capacity of the firm (Apenko, 2017).
Various initiatives like supporting of the social causes, providing of the financial helps
and creation of the better job opportunities for the local people or the residents will lead to the
rise in the trust and loyalty level of the consumers and people towards the cited business firm and
will help in the improvement of productivity and profitability in a better way. Besides this, it will
help the company to get a competitive advantage over its competitors or rivals in the local
market and meet them in a very effective way. Other than this, the better evaluation process to
analyse the growth of the performance of the outlet as well as its employee's will help in the
effective management of different business operations that will help in the effective handling of
the adopting of various business operations for meeting the needs and demands of the customers
in a better way. Besides this, it helps in the effective rise in the overall performance capacity of
Tesco plc in local market. The effective rise in the productivity sand profitability will help in the
better handling of the various business operations that will lead to the management of the various
operations that will improve the brand image in the local market and increase the work efficiency
of the people (Klettner, Clarke and Boersma, 2014.). The rise in the revenue that is been caused
by the expansion of the business outside the Europe had lead to the effective rise in the
adaptability of the Tesco plc to get better and innovative measures to increase the efficiency and
achieve the customer satisfaction level in a better way.
Besides this, the increase in the number of outlets will improve the market presence of
the company and will help it to gain large number of customers and stake holders. This will help
the company to fulfil its CSR in an effective and significant manner and increase the work
efficiency of the user in a better way. Apart from this, the CSR approach will develop a better
brand image, improving a better perception of the Tesco plc in the minds of its consumers and
users, attracting them towards the brand and increase the brand equity and value proposition of
the company and its products or services. The high quality of products and goods offered by
Tesco plc on the reasonable and cheap price to its customers will influence them to increase the
brand loyalty and become the regular customer of the cited firm. Other than this it will help in

the better management of the various operations that will improve or increase the operational
capacity and quality of the business organisation. This will also improve the quality of services
that is been provided to the customers., the high and better quality product or service will lead to
the better revenue generation while, the poor quality of the goods will adversely impact the
overall operations of the company, leading to lose of loyal customer and decrease in satisfaction
level. Other than this, the effective management of the various internal and external operational
glitches will help Tesco plc to identify the effective scope of the enhancements required and
improve the quality of services in the market (Akter and et.al., 2016). Other than this, the better
management of the different operations will also help in the increase in the revenue generation
that will help in the rise of the different innovative measures to meet the needs and requirements
of the customers as well as the stakeholders of the company in a better way to provide the
customers with better and high quality products and services that will help in the rise of the
various operations of the company and satisfaction level of the customers.
CONCLUSION
Thus, from the report it can be concluded that the effective business strategy will help in
the better rise of the productivity and profitability of the cited firm. This assignment covers the
purpose of the development of the understanding about the Tesco Plc as a responsible retailer.
The report focused on identifying the various competitive strategy used by an enterprise in order
to gain competitive advantage in the market. Effective SWOT analysis helped in the
identification of the various strength and weaknesses to access there effective market
opportunities and prevent any sort of market threat It will also have emphasizes on identifying
the need of monitoring as well as evaluation of strategic plan to fulfil the CSR of company.

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