Global Strategic Management: Analysis of Tesco's Expansion Strategy

This report provides a strategic analysis of Tesco's global expansion strategy, evaluating both internal and external environmental factors using PESTLE and SWOT analyses. It assesses the pros and cons of Tesco's existing tactics, particularly business expansion, and offers recommendations for improvement, including leveraging digital marketing and building a strong workforce. The analysis considers contemporary strategic problems and applies relevant theories like Porter's Five Forces and Blue Ocean strategy to enhance Tesco's competitive advantage and achieve its strategic aims and objectives in a dynamic business environment. The study also emphasizes the importance of adapting to market trends, consumer behavior, and technological advancements for sustained growth and profitability.

GLOBAL STRATEGIC
MANAGEMENT

Abstract-
The study has been defined that strategic internal and external analysis has enabled
organization to determine the key threats and opportunities for which it utilized its strength for
purpose of overcoming the negative impact of each threat and grab opportunity. Furthermore,
from current assessment it has been determined that implementation of key recommendations
and strategies allow firm to reached desire outcomes. It has gained competitive advantages by
considering each effective strategy as recommendation. By considering these things firm has
build up the best plan that contributed to achieved target aims and objectives, in effective and
appropriate manner.

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Commenting on existing tactic, taking into account external & internal environments and their
pros and cons................................................................................................................................4
Analysing on improvement of organization strategy and recommendations for applying in
suitable terms ..............................................................................................................................7
Critically analyse varied contemporary strategic problems and relevant theories......................9
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management refer to ongoing planning, analysing, monitoring and assessing all
essential practices and strategies that are formed, for purpose of increasing organizational
productivity. This term encompasses different practices or actions that a manager in an
organization is accountable to take into their consideration. The current assignment will be based
on Tesco, which falls under the category of leading supermarkets in the UK. The study will
explain existing strategy of chosen company by taking into account of internal and external
environment. It will also define the pros and cons of organizational current tactic and approaches
that could improve the same. Furthermore, the report will specify changes would suggest that
firm make to its tactics and plans that can make it more successful. Lastly, it will clarify the
critical analysis related to strategic issues and application of suitable theories such as porter's five
forces and blue ocean appropriately.
TASK
Commenting on existing tactic, taking into account external & internal environments and their
pros and cons.
TESCO is one of those supermarkets in the United Kingdom, that had developed
excellent strategies and implement the same systematically, for purpose of obtaining
unpredictable outcomes such as in form of competitive advantages. In most effective strategy
that it may utilize is business expansion. This tactic may enable supermarket to obtain varied
benefits such as increase profitability, productivity and performance level, which is not that easy
for any other company or its rivals to do so appropriately. The formulation and implementation
of this strategy includes varied practices, in which external and internal environmental analysis is
the main. These two forms of practices are possible by using key strategic frameworks and these
are;
PESTLE Analysis-
Political factor-
Political stability, trade policy, tax rate and other terms are included in category of factor
that put straight impact on organizational current practices and strategies that they may utilize to
reach desire outcomes (Christodoulou and Cullinane, 2019). In case of TESCO expansion tactic,
this factor impact positively, because political stability in the UK and other nations where

organization existing. It may enable firm to take pleasure of expanding venture appropriately and
in profitable manner which lead to increase profits and revenue.
Economic factor-
Another external factor that may put direct impact on TESCO business expansion
strategy is current one. It may affect positively, because economic stability may allow company
to expand more and innovative in profitable manner, in form of products and services that people
prefer to purchase exchange of money (Nandonde, 2019). As everyone in the UK may have
disposable income, which allow individual customer to purchase budget friendly products and
utilize services that enhance their satisfactory level, even better than last few months or weeks.
Social factor-
Market trends, buying behaviour and other social factor may affect current tactic of
supermarket in positive manner (What is PESTLE Analysis? An Important Business Analysis
Tool, 2022). The main reason behind this impact is trends identification and understanding
related to target market, which enable company to expand business accordingly. It may enable
firm to retain and acquire new consumers within each geographic area, where it may expand or
enter appropriately and systematically, dealing with minor challenges that drive its attention
toward more strategic formulation.
Technology factor-
Technology advancement is the most effective external factor that may put direct on
TESCO expansion tactic in positive manner, in form of driving management attention toward
using those digital marketing technologies that aid to generate excellent brand awareness (Saudi,
2021). It may enable firm to make its tactic successful in form of awaking people about its
entrance in the market that affect positively. It may support to create curiosity among people
regarding TESCO entrance that enable them to purchase quality items in cost effective manner.
Legal factor-
Any form of change related to business law, trade policies and employment regulations
may put negative impact on expansion tactic of TESCO, in term of decreasing its effectiveness
for short term period regarding new market entrance (Phan, 2021). It may put a lot of pressure
upon management to form and restructure each and every practice by considering new changes
in legal terms that then allows reaching desire outcomes. The overall process is not that easy for

supermarket to accomplish in time effective manner as it may require varied resources and a lot
of attempts.
Environmental factor-
Another factor that may impact supermarket existing strategy is current one. It may
provide a lot of benefits to TESCO as it may already take initiative to eliminate its carbon foot
print and conduct sustainable practices (Demirtas and et.al., 2021). With expansion and CSR
approaches, firm may retain for longer within any market, which is quite effective and beneficial
too in varied manners. It may enable organization to take pleasure of gaining potential and
trustable stakeholders' attention, who may contribute to make venture more successful.
SWOT analysis-
Strengths-
Skilled workforce, good financial base, strategic plans and positive brand image, are the
key strengths of company that enable management to make their expansion tactic more powerful.
It may permit them to expand venture across national boundary successfully, without taking too
much stress to do so.
Weaknesses-
Lack of online existence and poor customer service are the main weaknesses of company,
that may impact negatively upon its success and grow with expansion tactic (SWOT Analysis,
2022). It is important for organization in the recent time to develop its existence in the context of
digital platforms, that help to retain customers and gain the attention of potential new.
Opportunities-
Technology advancement and pool of talent, are two great opportunities that organization
grab for purpose of reaching desire outcome as successful expansion in the most profitable
market. It may develop effective plan to grab each opportunity that help to achieve target aims
and objectives.
Threats-
Pandemic, intense competition in the market and regulatory changes are the key threats
that may put adverse impact on TESCO and its strategy such as business expansion. It may lead
to decrease operational and functional effectiveness or efficiency, which is not suitable for
expansion procedure implementation.
Pros and Cons of strategy-

Expansion strategy is full of advantages that may affect positively upon supermarket
growth and success in the today's business environment, where different forms of challenges
arise. It may enable company to take pleasure of building diverse workforce, among which each
player is able to achieve target goals and make achievable commitment, which is not that easy
for anyone to do so without having set of essential skills and competencies as well as knowledge.
On the other side, along with advantages, expansion tactic encompasses some demerits as
well, such as bunch of challenges, conflicts and unexpected requirements related to resources
that firm may utilize to grow rapidly and in productive as well as competitive manner.
Analysing on improvement of organization strategy and recommendations for applying in
suitable terms
The organizational strategy is the long term planning process which enable business to
make planning of its resources to support their business activities (Aleinikov and Smarsh,
2020). The appropriate strategies help the organization to meet the goals and develop the
formation of strategic plans. On the other hand it could be said that strategies provide guidance
and work as road map for business as well as shows destination and determines with useful
shopping points towards customers. In similar way for organization like Tesco, they follow
business expansion strategy for combination of acquisitions of new stores and enhancing their
retail service and adapting to needs of customers. The main objective is to cater the best service
to their customer not just in UK but around the world in which people will easily get access to
the product and service in wide range of areas. This is cost effective for business to hire the new
employees to develop the strong workforce (Demirbag, Apaydin and Sahadev, 2021).
The online platforms are suitable for business which Tesco is using in promoting their product
and offerings while developing the strong customer base. The customer can make purchase
through websites and company is selling wide range of service and accessing to the customer
level of satisfaction. In relevant to the digital marketing techniques or tools business may be
responsible for making customer return. The general merchandize sector is diversified and
having the foothold in industries like insurance service, banking, telephone gadgets and quality
airtime as well (Lessard, 2021).
Thus, while improving the strategies it is crucial for organization to seek the opportunity
in for expansion in new marketplace. The use of marketing strategies helps in developing the

new ideas and build the effective formation plan for business (Shaulska et.al., 2021). Placing
the new product and strategies in other area for the same necessitate the customer attention
towards such offerings and which impact on their buying behaviour. There are several
competitors in retail industry who negatively impact on the customer preferences as such
because of same product and services are being offered to them at favourable prices.
The business expansion strategy of Tesco can work more effectively by introducing the
change to take place for the process to work in beneficial terms (Schühly, 2022). The main
aim of the organization is to render its services in its specific area and across UK. It is mandatory
make effective planning for expansion and seek the opportunities in new target marketplace as
well as buying patterns of consumers. There will be existing businesses who will be providing
the same service in retail sector that would be challenging aspect for organization. It plays vital
role to conduct and gather the information about new markets to implement the adequate ways
for expansion to work (Adiguzel, 2020). By recommending to business strategy, as such using
the social media platforms is already in existing but in current situation entity must use various
social media platforms to promote their products and services for overall people in the industry
(Hoskisson and Harrison, 2021). It can be said that using the online platforms on continuous
basis will positively impact to the organizational success and helps to succeed further. In
expansion of business, promotion takes place effectively and organization my provide offerings
and such entertaining activities for their audience in driving their attention towards services bing
established. Although, organization can develop the strong workforce at different places which
will encourage the opportunities for business by offering more scope for creativity (Godiwalla,
2018).
Strong workforce will always procure better perspectives for business and such
workforce are the skilled employees. Organization may take advantage by developing the strong
workforce at several locations by which it can be easier to manage the expansion tactics by such
working employee (Wenzel, Stanske and Lieberman, 2020). Untrained employee provide
the poor outcomes but the right individual working employee will always provide the effective
ways to deal with solutions. Tesco should hire the sting workforce in their expansion strategy to
gain the competitive advantage in industry. Thus, it would be effectual for competing with
challenging aspects within the same concern. The company can manage their operations and

achieve their aims and objectives respectively with growth outcomes for future. Also, looking
towards the present environment organization should consider to the digital factors to enhance
the brand awareness in order to cater customer specific solutions (Rascão, 2020).
By using the e-commerce sources in newly developed culture it might broaden the range
of product and service and business expansion easily with maintaining the physical stores. Entity
should introduce the service through online websites to add more valuable customer interaction
with offerings and it reflects directly towards the sales and enhance market share of business.
After the pandemic issues people are more aware about the concern and taking the advantage of
the services, this would be beneficial for business and enhance to keep in touch with their
customers and encourage them to make purchase (Stan, 2019). By using various technological
aspects business leads to growth and enhance the sustainability position in market. Thus, it can
be said that following the useful strategies will be supportive for business to make expansion to
several business areas (Witcher, 2019). For better success and achievement in the target
market organization offerings provide the advantage in industry. Buying or spending patterns of
consumer varies on the services being offered to audience as compare to their competitors
(Arıcıoğlu, and Yiğitol, 2019). Similarly, Tesco can follow its aim and achieve the objective
by developing the valuable image. Expanding to the new market takes various efforts and so on
organization can manage their services effectively which fulfil the demands of customers and
positively increase their buying behaviour.
Critically analyse varied contemporary strategic problems and relevant theories.
Customer service management-
Providing better service to customer is always what they want, but catering the poor role
and responsibilities in service reduces (Sullivan, Thomas and Rosano, 2018). Most of the
times business unable to fulfil the demand for customer wants and drives to negative results in
conducting their operations. It is essential to prioritize customer service and get the feedback
from them on regular basis which would provide them to raise their concerns. It will add value to
brand image in favourable terms and enhance the productivity of organization.
Employee retention-
Retention of employee is crucial for organization where satisfied and engaged employees
are more likely to stay in work culture. Organization with higher level of retention experience the

great amount of employee engagement and satisfaction (Molnar, 2018). Thus, unskilled and
demotivated employee have the vice versa impact in culture. For Tesco employee retention is
most beneficial tool as such in building the strong workforce by developing the employee
interaction with one another. Also, recruiting the right employee for right place plays vital role in
environment to inspire other working employees as such they collaborately tend to achieve the
aims and objectives of organization.
Supply chain management-
These issues directly impact in the productivity and profitability of organization and after
pandemic there are issues which take place (Naamati Schneider, 2020). The customer
changing attitudes is the major cause of supply chain management issue because the challenge
arrives with quick supply chain which harness the power of automations to modify fulfilment
and managing accelerated demand (Buckley, 2018).
Blue ocean strategy is concerned with helping company to gain uncontested market space
in separation with others. Similarly, by following the blue ocean organization can easily execute
the change in new market and developing the spending patterns of customers to provide
competitive advantage in industry (Agwu, 2018). On the other hand business may adapt to the
marketing evaluation strategies to analyse and implement the innovative ideas accordingly to
maintaining the sustainability. Apart from this this strategy helps the business to finding the
ways of conducting within uncontested competition and there are various aspects for innovators
and it will be easier to firm to expand their business in such places where the competition is low.
However, company can effectively use their strategies and improve their overall efficiency and
productivity (Alvarez-Figueroa, 2021).
Porter's five forces model-
The current strategic framework is utilized in the context of TESCO, to overcome the
adverse impact of some forces that impacts organizational practices and strategies such as
current one (Hintoro and Wijaya, 2021). It encompasses five different types of forces and these
are;
Bargaining power of suppliers-
The extent of this force is low, because number of trustable and potential suppliers are
accessible in the market, who may contribute to make TESCO supply chain operation effective

and beneficial. The accessibility of these suppliers may enable firm to gain benefits of reaching
target market on time without conducting too many efforts and facing the worst issues that lead
to decrease operational efficiency.
Bargaining power of customers-
The degree of this force is also low because customers may do not have those alternative
items that TESCO may provide to them in cost effective manner. It may provide firm chance to
achieve aims and objectives, with those buyers who may have trust on quality that it may offer in
term of items and services that satisfy their need and meet requirement.
Threat of new entrance-
The extent of this force is also low because a lot of things are needed to enter into a
market or sector where TESCO is existing such as retail. It may affect an organizational practice,
in form of emerging need that is essential for management to consider in appropriate manner.
Due to this factor and its extend, firm may grow competitively and appropriately, without facing
critical challenges that impact at long time period.
Threat of substitute products and services-
The extent of this force is low because, there are lack of substitute goods and services
accessible in the world, that enhance satisfaction level of consumers of TESCO. If any exist in
the market, they may not have any value which lead to decrease the effectiveness of purchasing.
It may drive the attention of company toward retaining potential consumers and gaining the
attention of new.
Competition between existing companies-
The degree of this force is high because of intense competition in the market between
existing supermarkets, who may tend to gain competitive advantages in bulk. It may affect
current strategy of TESCO and also allow management to focus on developing risk mitigating
plans.

CONCLUSION
From the above report it has been identified about the internal and external environmental
factors of organization by using the relevant frameworks such as SWOT and PESTLE analysis.
It describes the pros and cons of the strategy being used by them and how it works for
developing the great positioning in marketplace. Further it had been analysed about the how
changes can be made in the organization strategy and recommendations on the basis of improved
ideas and such tactics which can be followed by entity for future growth outcomes. Following
the suitable strategy enhance the stability in marketplace and make business operation to run and
work effectively. It also enhances the productivity of organization in favourable terms. At last, it
has been executed the several contemporary strategic issues with synthesizing among different
levels by using the appropriate models such as porter five force and blue ocean strategy.