Global Strategic Management Report: CEO Strategies at Tesco PLC

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This report provides an in-depth analysis of the global strategic management practices employed by Mr. David John, the CEO of Tesco, a British multinational grocery and general merchandise retailer. It examines the business and corporate strategies implemented by the CEO, including resource allocation, organizational design, and portfolio management, highlighting their impact on the firm's performance. The report also conducts a PESTEL analysis to evaluate the external factors influencing Tesco's operations, such as political, economic, social, technological, environmental, and legal aspects. Furthermore, it applies Porter's Five Forces framework to assess the competitive landscape and identify opportunities for expanding Tesco's market position. The strategic plans created by the CEO, focusing on strategy management, accountability, and frequency of review, are also scrutinized. The report concludes by addressing strategic problems and offering recommendations to enhance Tesco's sustainable growth and competitive advantage, emphasizing the importance of adapting to changing market dynamics and consumer preferences. Desklib offers similar solved assignments and study resources for students.
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GLOBAL STRATEGIC
MANAGEMENT
INDIVIDUAL REPORT
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TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................
Study of business and corporate plan used by CEO....................................................................
PESTEL analysis of organization................................................................................................
Use strategic tool of Porter for expanding performance of organization....................................
Study strategic plan that created by CEO....................................................................................
Examine and study different problems in strategy by implementing framework.......................
RECOMMENDATION...............................................................................................................
CONCLUSION..............................................................................................................................
REFERENCES............................................................................................................................
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INTRODUCTION
Global strategic management is refer as procedure in which different tactics and plans
are made for purpose to implement into action (Shaulska and et.al, 2021). It helps
organization to accomplish their goals by which they can gain benefits in regard to survive in
competitive world. The report is based on determining management style that is driven by
Mr. David John, CEO of TESCO company. This is a retailer company that provides different
services to their customer by satisfying their needs. It is British multinational grocery and
comes under their largest retailer organization, which is located in UK. This offers varieties
of services and products to consumer in wide variety through which customer choose
according to their suitability. In this study about risks and obstacles that faced by
organization by examining different plans and approaches that implement by CEO. It will
justify external and internal environment of business environment by using model of
PESTEL to derive about difficult situation conduct by management in effective way. Also,
Porter’s strategic technique implement by CEO in order to expand their business
performance by managing into productive way and gains sustainability growth in market by
using this strategy into their programs. They also designs strategic for Tesco in order to work
in efficient manner that helps in enhancing organizational growth in perspective way.
Furthermore, study about several strategic problems among different stages of their in
respond to that by determining framework under which comes creativeness, technology
planning and resource base strategy. By recommending different solutions to CEO through
which they can implement in their organization. In accordance to make their sustain growth
and development in business that helps them and provides direction in which they go for
achieving their goals. Through this helps in conducting effective approach towards leading
their business and manage better environment for their business to attain customer needs and
satisfaction.
Study of business and corporate plan used by CEO
Business and corporate strategy works in interrelationship manner for getting success
of business that derives from various factor of their. In order to conduct effective approach
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CEO of Tesco has implemented different corporate strategy that brought positive
contribution in firm. By implementing effective strategy in organization boost performance
of their, it derives by CEO and earns profitability and attain customers. This are explained
below;
Allocation of resources- In regard to organization, CEO allocating resources in effective
manner, as it aim on two main and essential resources that are people and capital. By which
helps in gaining value of organization in definite manner towards leading their business
effectively and positively (Menz and et.al, 2021). Through proper managing of resources in
determine in appropriate workplace boost performance of organization in positive manner
and enhance their sustainability growth of firm by conducting greater efficiency in
management for allocating resources. As by people and capital organization derives benefits
by using capital in their resources for performing function and through people organization
achieves their desired goals and targets by attaining consumer requirement. Tesco, provides
various types of products to their customer by allocating resources in definite manner.
Organizational Design- By making good organizational structure, CEO provide better
design of their organization by determining infrastructure in effective manner. Through
distributing each function of management in appropriate manner and creating center of
excellence. In order to this, it conduct and manage each function by delegating authority and
derives effective role of their through proper managing each thing in organization. It provides
better structure as by determining their decision that work in profitable manner or not, by
doing so it maximize profits and conduct good organization design that enhance their
sustainable growth. This boost their performance and employees who work in organization
work in effective manner.
Portfolio management- In order of conducting better portfolio management, CEO of Tesco
works in different manner. By doing so, manage problems and determine solution to
overcome situation that arise in their organization (Peterson, Van Landuyt and Pham, 2021).
Also, makes effective strategies for organization such as gives strategy to provide customer
products at affordable price that everyone can purchase their products and utilize their
services most appropriate as compare to others. Through this derives benefits for
organization that emphasizing on their growth and development by portfolio management in
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organization in productive manner. As this enhance their production by working of CEO that
derives appropriate strategy and work in desirable manner.
PESTEL analysis of organization
Companies affected by internal and external elements in organization because of
facing challenges in retail industry. Through various ways that directly impact on business
due to which risk arise or developed in market. In regard to organization, CEO of Tesco has
implemented this framework to manage their business in productive way. By studying
political, economic, social, technological, legal and environmental factors that influence
organization. This is explained below;
Political- Political stability plays an important role on business performance. In regard to
political condition of UK, it is found that there are multiple governmental legislation that
affect UK food retailers (Thakur, 2021). For overcome this various measures is to be taken in
order to perform organization function in definite manner.
Economical- In order to this derives that economic condition is changed in UK as it has
increased inflationary pressure. Due to rises in oil and other prices, consumers do not invest
in clothing and other products that Tesco offers. So, it can lower profit margin of this
supermarket and employee more workers for smooth functioning of business.
Social- - Raising age population is creating numbers of opportunities for retailers as it can
rise sales of companies. On the other hand, also found that people are becoming health and
environmental conscious and for satisfying customers' needs, companies need to focus on
improving sustainability and quality of products (Vera-Contreras, Vera-Rivera and Puerto-
Cuadros, 2021). New brand positioning can also help Tesco in attracting customers and
retaining them. As by doing so, make manage products and services in effective manner and
enhance their performance. Due to which help in maintaining proper conduct of social
responsibility.
Technological- In regard to organization, technology upgrade in every aspect due to changes
takes place on day to day life. Tesco CEO, advance new technology elements that helps in
making innovation and expansion of business by taking effective use of technology
according to accommodation.
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Environmental- - It is found that Tesco is striving hard for decreasing carbon emission in
order to make people feel valued and decreasing negative environmental impacts. By
emphasizing this CEO may gain their sustainable growth by conducting eco-friendly
products to their customer. It offers plastic free fruits options and it has banned plastic bags
and customers need to carry their bags for buying products or they will be provided with
cloths bags.
Legal- The laws and regulations is to be followed in organization by which Tesco use abide
of all laws that is governed by organization under companies act (Fakari Sardehae and et.al,
2021). By following laws and regulations, though improving quality of product by effective
management of CEO driven in organization.
Use strategic tool of Porter for expanding performance of organization
In order to enhance performance of company, Tesco CEO used Porter strategic
framework under which comes five forces that derived for conducting effective use of
strategy for boost performance of firm in desired manner. This are determined below;
Threat of new entrants- Due to various competitors arise in market create threats for
business, in order to get overcome from this situation CEO of Tesco derives many strategy
for expanding business of organization in profitable manner (Hayati and et.al, 2021).
Organization used this framework to determine various competitors of their. Such as
Sainsbury, Asda and many other that impact on organization performance. Through
implementing tactics, such as make their product innovative and creative that enhance their
performance and increase productivity of company in desire manner. By this emphasize
towards removing obstacle of competitors that create thereat for organization.
Bargaining power of suppliers- It represents traders bargaining power by which
organization increase their services and conduct effective role in achieving aims and
performance of organization. By managing good competitive prices by CEO, derives Tesco
as leading manufacturing store in UK. Through making effective deal in towards negotiating
with suppliers for brand positioning of their services in desirable manner that boost
performance of company inn effective way.
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Bargaining power of consumers- In regard to Tesco, they emphasize Club cards that raises
gains of organization performance that boost their sustainability growth in market. CEO of
Tesco, retain consumer in effective way that provides strength by making this forces
framework that boost consumer in organization towards making promotional strategy that
attract customers. Such as provide them products at affordable prices towards which leading
business and enhance their production for achieving profitability. By doing so overcome
challenges into an effective way and conduct better services by satisfying needs of customer.
Threat of substitutes- General substitution effect on deduction of demand of specific
products, as there is risk that consumer reach to other business (Björk, 2021). In respond to
this, CEO may derive ne trends in order to enhance their performance and attain aims and
targets of Tesco. Through which helps in leading business by this risk of substitute can
overcome in effective and way. Also, remove obstacle for business in productive manner and
achieve desired goals and performance that boost their efficiency.
Bargaining power of competitors- In accordance to expand business performance, CEO of
Tesco is using this stage to make effective use of strategy by overcome competitors. Through
making their product in innovative form that enhance customer and study competitors
strategy helps in boosting performance of Tesco. By developing their products and make
effective strategy, such as make their products in creative form boost their performance
towards attracting more customer.
Study strategic plan that created by CEO
In regard to Tesco, CEO of organization has created and designs strategic plan for
company in order to work in definite manner and enhance their production. Strategic plan is
procedure that helps business to derive various strategies in order to achieve targets and goals
of organization. The several strategy plan made by organization is defined below;
Strategy management- In order to perform duties and function of management in well-
defined manner, by emphasizing strategy management, It helps in by conducting and divide
work among different employees in manner to work in proper manner and desired way that
enhance production of business (Sharmelly and Klarin, 2021). By doing so, CEO put his eye
on all procedure that held in organization and on workers who perform work in company
through this better conduct of work takes place and enhance production of business. Through
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determine this strategy, helps in expansion of business and makes sustainable growth. As this
strategic management enhance and make appropriate in towards leading their business by
determining ach role in desirable manner.
Accountability- By providing better accountability, CEO arrange employees in systematic
manner that work in organization. In accordance to work in proper manner by which workers
work at single area and effective communication takes place among them. It also helps in
conducting proper management in organization towards which employees know very well
about their work and no issue takes place in organization. As they work altogether and make
accountability in definite manner and enhance their production and development of company
derives by this effective strategy implements into Tesco.
Frequency- In respond to organization, CEO make strategic plan by emphasizing frequency
through which help in achieving objectives of company. In order to do so, they conduct
meeting on monthly basis by which problems and challenges discussed and determined that
affect organization. Also, from this strategy employees derives and provide various solutions
to overcome from different situation that occur in organization (Ayoub, Abd Eljalil and Elias,
2021). Through this enhance production and profitability of business in desirable manner that
gains sustainability growth of under organization. As conduct productive resources and boost
performance of company in effective manner by applying productive strategy of frequency in
organization.
Examine and study different problems in strategy by implementing framework
In accordance to study different functions of management and their performance
through determining approaches under this helps in expansion of business. Through which
CEO of Tesco, emphasizes different problems that arise in organization. Such as competitors
developed that affect organization productivity, due to which consumer decreases. In order to
determine various stages by different activities helps in conducting better resources. By this
helps in overcome issue and challenges that faced by organization by conducting into
positive manner. That are determined below;
Resources based strategy and competitiveness- In order to overcome issue of competitors,
this strategy helps in expansion of business (RISFANDINI and et.al, 2021). This provide
achievement for business by determining this framework helps in making effective resources
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and allocating resources in desired manner. By using resources for organization enhance
competitive spirit by develop and innovating their services in definite manner that expands
their business through remove obstacle by conducting and managing resource based strategy.
As demand of products and services derive on every aspect in order to overcome strategic
issue that developed in company that affect business. By this CEO , emphasizes this
framework that helps in surviving competitive environment that enhance production by
creating better products that attract more customers towards organization through overcome
issue of competition.
Innovation and technological strategy- By emphasizing this strategy, this approaches of
strategic helps in overcoming issue of organization by creating products into new innovative
form. Through this conduct creative goods and services that enhance business productivity
and efficiency and helps in attaining customer. In accordance to this, CEO of Tesco
implements innovation and provide technological upgradation by determining new
technology through managing and implementing trends into organization (Jun, Lee and Park,
2021). As by this organization overcome issue and enhance customer by conducting better
resources in order to innovative products made services more productive and boost their
performance. Also, by making innovative and technological strategy emphasizes profitability
and attracts more and more customers towards business. As result overcome challenges and
obstacles in efficient manner and raise their productivity in definite manner by providing
good quality of products and creative, technology upgraded products. Through this achieves
organization goals and objective to make effective strategy in order to attain customer and
develop new value of products and services. The effective strategy helps in expansion of
business towards leading organization to gain customer and make effective strategy provide
better infrastructure to them.
RECOMMENDATION
In order to make effective use of global strategic management, organization may
boost their performance and expands their growth in firm. By recommending different
strategy that can applied by CEO of Tesco, to achieve their aims and goals of organization.
Through implementing different approaches such as PESTEL analysis that derives
organization political, economic, social, technological, environmental and legal elements that
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helps in overcoming issues and remove obstacles by determining their strategy in
organization that boost their performance and boost productivity of business. As attaining
profitability and expands business of Tesco, in accordance to attain customers and maximize
profit in effective manner. Through this CEO make sustainable growth by innovating their
products and services of organization in desirable manner to attaining their objective of
company. To achieving their business growth and opportunities in business for enhancing
performance and make effective use of technology. It helps in expanding business for leading
in competitive world, also make strategy such as various schemes given to customer like buy
one get one free from which customer attract towards this scheme and purchase more
products by coming into their stores and enhance their profitability. Also, recommending
different tactics that helps organization by providing products at affordable prices that boost
organization performance and make effective use of technology in desirable manner.
Through conducting better way of approach by emphasizing and deriving new technology
and adopting it to enhance organization production and operation function for achieving
growth and expansion in business for leading their efficiency in desirable way. As this Porter
five forces framework helps in gaining customer by providing different facility to them in
order to attract more and more customer towards organization and make effectivity in leading
business in profitable manner. This boost performance of company in effective manner and
make sustainable growth in achieving organization performance and efficiency. By
recommending different criteria and solution enhance business performance and attain
profitability that is managing and proper conduct by CEO of company in attracting consumer
and make sustainability growth through deriving opportunities in business by various ways
that determine in this for leading and builds organization in effective manner that boost
organization and make brand that recognizing by everyone in positive manner for enhancing
benefits and determine their growth in business environment.
CONCLUSION
The report has been concluded about global strategic management, in which it will
derives business and corporate plans that has been determined. In this study has been take
place that derives organization performance, Tesco provides different service and product to
their consumer through which enhance customer and satisfy their needs and requirements. It
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will justify by implementing internal and external environment that emphasizes business
model of PESTEL in which their political, economic, social, technological, environmental
and legal elements that managed by CEO of Tesco to attain aim and goals of organization.
Also, uses strategic tools of Porter five forces that helps in enhancement of business
organization towards leading business and achieve profitability. In accordance to this, will
provide proper structure of organization that has been driven by company for boost their
performance and profitability towards leading business. Through this has been determined
their factors that comes under it for developing business growth and make sustainable growth
in business. In this has been discussed strategic strategies that designed and create by CEO of
organization for expansion of their growth in firm. Furthermore, study and examine
distinctive strategic problems in strategy which has been used by CEO of Tesco. By
emphasized approaches of their in regard to organization that has been determine under this,
towards leading their business in effective manner and boost their performance in productive
way. It will also justify various challenges and issues faced by organization because of
various reasons and derives strategy that has been used to overcome it in productive manner
that gain their sustainability growth of development. It has been developed this strategy for
effective management and global expansion of business that has been helps in expanding
organization productivity.
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REFERENCES
Books and Journals
Ayoub, F.S., Abd Eljalil, S.G. and Elias, W.A., 2021. Strategic Performance Measurement
and Balanced Scorecard Approach in Egyptian Travel Agencies: A Proposed Empirical
Model. International Journal of Tourism and Hospitality Management. 4(1). pp.1-28.
Björk, B.C., 2021. Open access to Construction IT research articles–developments over the
past 25 years. Journal of Information Technology in Construction.
Fakari Sardehae, B. and et.al, 2021. Limitations and Production Capacities of Field and
Horticultural Crops in Iran. Journal of Agricultural Science and Technology. pp.767-782.
Hayati, J.E. and et.al, 2021, February. Analysis of Competitive Strategy to Create
Sustainable Competitive Advantages Seen From the Nine Factor Model and Bacos Treacy
Model. In Journal of Physics: Conference Series (Vol. 1764, No. 1, p. 012053). IOP
Publishing.
Jun, J., Lee, T. and Park, C., 2021. The mediating role of innovativeness and the moderating
effects of strategic choice on SME performance. Journal of Small Business
Management. 59(4). pp.627-647.
Menz, M. and et.al, 2021. Corporate Strategy and the Theory of the Firm in the Digital
Age. Journal of Management Studies.
Peterson, D.K., Van Landuyt, C. and Pham, C., 2021. Motives for corporate philanthropy and
charitable causes supported. Journal of Strategy and Management.
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