Global Strategic Management: Strategic Analysis of Tesco - LSC UoS

This report provides a comprehensive analysis of Tesco's global strategic management, examining the business and corporate strategies employed by its CEO, including growth platform and online business strategies. It delves into external and internal environmental factors using SWOT and PESTLE analyses, highlighting Tesco's strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental influences. The report also explores strategic techniques, such as Michael Porter's generic strategies, used to improve business performance, focusing on cost leadership and differentiation. Furthermore, it addresses contemporary strategic problems faced by Tesco, offering recommendations for improvement and drawing on corporate examples and literature to support its findings. The analysis emphasizes the importance of adapting to market trends and maintaining a competitive edge in the global marketplace.

Global Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Business and corporate strategies utilised by the CEO for the positive contribution to the
organisation......................................................................................................................................3
External and Internal environment analysis at Tesco used to manage by the CEO using business
framework. ......................................................................................................................................4
SWOT Analysis of Tesco............................................................................................................4
PESTLE Analysis of Tesco.........................................................................................................5
Strategic Technique used by the CEO of Tesco to improve the business performance..................6
Creating, developing and designing of strategic planning for Tesco...............................................7
Analyse different contemporary strategical problems by synthesising between various levels......8
Various strategical challenges faced by Tesco............................................................................8
Corporate examples and literature to justify....................................................................................9
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and journals....................................................................................................................12

INTRODUCTION
Global strategy means the strategical guidebook of a firm to economic process which is used to
collect awards of commercialism in this nationwide market place. Global strategic management
allow the firm to take advantage on competitory chances around the world. Tesco has been taken
as a base company which is established in 1919 by Jack Cohen at United Kingdom. This is a
British multinational grocery store and a retail firm. It is one of the topmost leading firms in the
world which is running its operations in various countries. This file covers business and
corporate strategies, internal and external analysis and a strategic tool to enhance the
performance of a firm (Durand, Paugam and Stolowy, 2019). It will also cover different strategic
issues with some appropriate real life examples.
Business and corporate strategies utilised by the CEO for the positive contribution
to the organisation.
Business strategy is related to the strategical decisive making associated with the options of
commodities, competitiveness, consumer gratification and so on. Corporate strategy is related to
the whole result and range of a firm to complete the requirements of a stakeholder.
Here are some strategies used by CEO of Tesco are discussed below.
Tesco is already using various strategical planning for the growth and development of a
company. The approach of CEO was to market the products in a cheap price that haqd impact
the firm to pull itself by making a great profit for it. It is randomly altered the strategies and
picture with all sections of market. Tesco also use corporate level strategical planning on the
basis of result for being connected to make a investor value by a creative consumer concentrating
on the planning which is related to the cost, loyalty, commodities and its stores.
Growth platform strategy: This strategy desire to the another level of net profit in the company.
It require opening of new markets, searching new numbers to get into or implementing new
competence commodities. CEO of Tesco is also using this strategy which can be used as the
way of solving the development program as a corporate strategy.
Global strategical planning for expansion: Each and every firm has the capability to be a
worldwide firm in a present market. Even a small firm is capable of using the connectivity and
various ways to supply fast to grow this strategy (Abdullah, 2020). CEO of Tesco also use this

strategy by acquiring a very incomparable raw material to offer a particular commodity by using
cost leadership and differentiation global strategy of expansion.
Online business strategies: Nowadays, all the firms are using online strategical planning to
market or to make engagements with the customers. CEO of Tesco has also chosen this strategy
to expand its market in this world by using various methods of digital marketing like Search
engine optimization, social media engagement, online ads, and so on which helps the world to
market its commodities in this whole world and convert it into a very huge expansion to make a
good profit (Toma and Grădinaru, 2020).
External and Internal environment analysis at Tesco used to manage by the CEO
using business framework.
SWOT Analysis of Tesco
Strength: It is an approving internal activity, procedure or attitude of a firm which assist the
firm to survive and improving their benefits of competitiveness. In case of Tesco, it is already a
biggest grocery store in UK and has a very effective network or connection of suppliers which is
a very important part for any of the firm. It is also very wide-ranging and diversified and spread
in almost all the countries.
Weakness: It is an internal resource which work against a flourishing result. It can assist in
recognising the parts of betterment or where the firm has to take care about all its losses and
shortcomings. In context to Tesco, sometimes the financial mistakes can be a biggest weak part
of this firm due to its high liabilities and credit card financial obligations. It will stop Tesco to
perform at its best level and the areas which are required to improve will be highlighted.
Opportunities: It means to all the outside factors that can provide a good benefit of
competitiveness to an organisation. Through this, a firm will get to now about the chances
available in he market for its betterment, growth and development which will help the firm to
grow in the market. In relation to Tesco, it has a good chance of increasing the performance in
the upcoming days. As already it is a very emerging market trend and spread in mostly all the
countries which has a great capability to develop (Del Giudice, Carayannis and Maggioni,
2017) . It also contains its own mobile app for shoppers who want to purchase online so they can
add some more features into it to make it for upgradable.

Threat: It includes all the points which are negative and harmful for the firm. These effects will
definitely harm the business like issues related to the supply chain, needs related to the market
shifting and so on. Due to this factor a firm can analyse the negative point of the company y
which a company is not able to survive in the market so that a founder can easily improve and
solve all its issues. In context to Tesco, there are also many threats which can harm it like the
presence of various competitors such as Marks & Spencer who can easily grab the place of Tesco
in the market.
PESTLE Analysis of Tesco
Political: This factor is directly impacting the economic government as if the governance is
interfering with the economic system to any extent then this factor becomes an important part. In
case of Tesco, as this company directs itself across the whole world, political factors at global
level impacts the workings and performance of this firm which involves tax rates, stability and so
on. As Tesco plays a very important role in creating a chance of employment so as a result it will
definitely aid in the increment for the demand of its commodities ad spreading the workforce
(Gaviria-Marin, Merigó and Baier-Fuentes, 2019).
Economic: This is a factor which are the determinative to the working of an economy which can
directly affect the firm and has a reverberative effects which are for long duration. Also it will
impact the buying ability of a customer and that may leads to the alterations in delievering the
models for that economic system. In relation to Tesco, this factor will determine the profit,
pricing, demand of a company so it should be alert for any of the alterations made in the plan of
actions.
Social: These factors involves cultural requirements, growth rates, age, distribution and so on.
These are very important and aidful factors for a firm to plan in a good way for their analytical
state in marketing and its planning. In context to Tesco, as it offers a variety of products in
market and UK itself is moving and searching towards various trends in the market so consumers
are also moving towards shopping in a bulking way. The type of commodities and services
offered by the consumers is mostly affected by the values and behaviours which in result are
affected by the social conditioning. Tesco is accommodating with all these alterations by
surviving with the demand of all the commodities by customers.
Technological: Many of the business are nowadays are impacted by the alterations in the
technological surroundings. This change may offer danger, opportunities and warning to the

firms. This factor is not only unquiet but it will make a big chance for the firms to initiate. In
relation to Tesco, various opportunities in the market of Tesco are increased due to its
advancements. The main technological factor working for this company is online shopping and
self service of checkout points. Tesco has also endowed with a good quality of effectivity in the
energy to complete its long duration result (Orlandi, Dantas and Souza, 2020).
Legal: This is a factor that impact a firm and affect the way of running a business. Any of the
firm should have a complete knowledge of legal surrounding in which it has to work as these
factors may identify its successful or failing. This factor will also help the Tesco in the operation
of their business and permits them to know the limitation and line of there being in the name of
their individual company. Government policies are also directly affecting the performance of
Tesco which gives decrement in the cost of the fuel they buy according to the amount they spend
on the grocery shops.
Environmental: This factor is related to the impact of nearby area and the effect of ecological
aspects which is very important when it seen from all the ecological aspects. This analysis makes
Tesco alert for the connection between the firm and its environment and keeps them watchful
and familiar (Anlesinya, Dartey-Baah and Amponsah-Tawiah, 2019). With the increased
pressure on the firms to direct all the problems related to the environment and to pick out the
ways of working which could advantage the society. Tesco is also trying to decrease all the
waste materials produced in their stores by the increment in social sense of right and wrong in
consumers.
CEO of Tesco managed to solve all the difficult issues by using a business framework by using
this framework which is a procedure and a basic part. This will operate various strategical
planning and guide in an organisation. The selection of a business framework is interdependent
on the organisational structure of Tesco, its whole planning, system, way of thinking by
communicating their suggestions to the clients of Tesco. This will help the CEO to help in
improvement and make the better profit of a company (CHRISTABEL, 2018).
Strategic Technique used by the CEO of Tesco to improve the business
performance.
A strategical technique utilised by the CEO of this selective firm to increase the working or
performance of the business is by using a theory of Michael Porter.

This strategy means to identify the way in which a firm can continue to participate with the other
competitors in the market place. It has defined three strategies through which firm achieves its
strategies of business which tells if a firm should use this strategy in it to fulfill its business level
strategy for Tesco.
Cost Leadership: It is accomplished by any of the firm when it give the commodities with a
very less cost. To accomplish this factor, a firm requires to manage things such as buying
materials of low cost, to utilise own transport facility, short statistical distribution channel and so
on. Tesco has earned a great amount of demand and also an important sharing of market and also
by offering consumer quality commodities with a very less cost in the market place. Also, this
factor is chased by the manufacturing firms but technology firms cannot due to the cost of
productivity and pricing of material which is very high (VYSOCHAN and HYK, 2020).
Differentiation: This is a method of transferring an alteration in the designing, packing of
commodities, flavours and various other parts of a commodity t make it very competitive in the
market place and through which there is also a profit of accomplishing an advantage of
competitiveness benefit. Tesco used this factor by differentiating itself from all the competitors
by going back from advertising cost deals on some commodities.
Focus: This factor implicit the point of reference of a thin section to give the best servicing for
the consumers. This strategy is accompanied by a new firm who want to acquire the niche
market place. For Tesco, this strategy is not relevant as it supply various different sections
continuously and also in different countries of the world.
Creating, developing and designing of strategic planning for Tesco.
A business strategy is an action program of any firm for a lengthy duration of time created to
accomplish a set of results and goals. It mainly carries three levels: analysis, integration and
implementation. Various strategical instruments has been used by the Tesco which involves
mission, vision, result and competitiveness. The strategical planning of Tesco is utilised to set
the precedence, concentrates on the resources which are present, modifying the working and
make sure that workers and other stakeholders are working to accomplish one objective. The
main motive behind the strategical planing is to aid in deciding its precedence and to complete
the requirements of its people. To plan in a strategic manner is an organized procedure of
viewing a delectable upcoming days and converting the similar thing into a perfectly described
goals (Fahad and Ali, 2020).

Solution for the strategical planning of any of the firm is the idea for accomplishing a desirable
organizational objectives by answering the issues. At all the levels of an organisation, the firm
will go with a specific strategy to achieve the specific goal of a firm.Thus, when each and every
level of organisation modify to accomplish their personal objectives by solving the issues, then
the goal of a whole firm will be easily fulfilled and accomplished (Torzhevskaia, 2017).
Main motive of Tesco to make a strategical plan is to give the best and highly valuable thing to
the consumers we provide in the market, the organisation in which people work or serve, their
honesty and attached staff for the development of the firm. Tesco has served the best and came in
the list of top multinational organisation in the world as it has worked really hard for making its
own firm better and consumer friendly. They have also worked really well to give a best comfort
to the customers like providing an online application through which consumers can easily
operate the store by sitting at their home.
Tesco has also used all the strategies, theories and analysis to identify all the shortcomings,
strength , weakness, and so on. This will result in improving on that sector which is very weak
and company has to work very hard to accomplish the goals and objectives of the firm
(Jeshfaghani, 2020).
Analyse different contemporary strategical problems by synthesising between
various levels.
Various strategical challenges faced by Tesco.
There are different modern-day strategical issues faced by the firm at different levels are which
also affects the competitiveness when performing any of the task.
Issues related to E-commerce tools: This issue is the one which is faced by the Tesco as the firm
has all the system related to the computer networks of marketing and also the payment for all
commodities. Mostly cost is a beneficial part for any business that denotes the profit of any firm.
Tesco is using e-commerce and it faces the issue in supplying the commodity and large amount
of commodity consumers at a single location which lessen the price per item picked up and
delivered. It is also accepting a limited number of electronic payment system which makes it
very weak as all the consumers are using different ways to transfer the money. According to the
analysis by applying Porter strategy, there is a great competence in the market as other
companies in the market are working and using this e-commerce very effectively by offering

good quality products and and use variety of ways for everything. This will result in the
increment of competence in the market (Mohamed and Mohamud, 2017).
Failure of Tesco in understanding the trend and culture differences in other countries: As Tesco
has grown very rapidly in different countries. But at some places there are different cultures,
different traditions and various types of trends which the consumers are demanding from the firm
(Luo and Shenkar, 2017). But the impossibility of utilising all these trends or to bring all these in
the market according to the needs and requirements of a consumer of every country was very
difficult for it. This leads to the downfall in the market place. According to the Porter strategies,
there is again a big competition in the market as various new companies are arriving at a market
place and they are providing everything according to the market trends and culture running in the
market at different areas.
Corporate examples and literature to justify.
Airbnb: This firm has faced a great challenge in convincing all the individuals around the world.
Its main global strategy is localisation with a biggest responsibility of dedicating the localisation
of all departments under the guidance and a firm has experienced a good success at a global
level.
Apple: This is a most successful global commodity brand nowadays. This commodity is using
the unique strategical planning by thinking something new. This can be again a biggest risk for
the brand and it has accomplished a great success for this in the market (Basias and Pollalis,
2018).

RECOMMENDATION
It is recommended that Tesco should use different tactics of using E-commerce platform by
adding more and more features into it which make the comfort and ease level of a consumer. As
the consumers are facing issues in the payment due to limited number of options availability so
they can increase the payment options in their application which is more efficient for all the
consumers. Tesco should also work on different trends and culture of all the countries in the
market by maintaining public relations with the customers in the market.

CONCLUSION
It is concluded from the above report is that the more parts of all the countries of the worldwide
where the commodities are sold out that is at the big number. As the emersion of new market
place which refers to the big number of sales most importantly from the similar commodities.
Organisations also use different strategies to accomplish all the market goals and to improve the
production and level of profit in the firm.

REFERENCES
Books and journals
Abdullah, N. H. N., 2020. Assessing strategic management accounting practices in public
interest companies in Malaysia. Indonesian Journal of Economics, Social, and
Humanities, 2(1), pp.13-25.
Anlesinya, A., Dartey-Baah, K. and Amponsah-Tawiah, K., 2019. Strategic talent management
scholarship: a review of current foci and future directions. Industrial and Commercial
Training.
Basias, N. and Pollalis, Y., 2018. Quantitative and qualitative research in business & technology:
Justifying a suitable research methodology. Review of Integrative Business and
Economics Research, 7, pp.91-105.
CHRISTABEL, N., 2018. THE INFLUENCE OF STRATEGIC MANAGEMENT PRACTICES
ON SERVICE DELIVERY IN THE COUNTY GOVERNMENT OF NAIROBI,
KENYA (Doctoral dissertation, Kabarak University).
Del Giudice, M., Carayannis, E. G. and Maggioni, V., 2017. Global knowledge intensive
enterprises and international technology transfer: emerging perspectives from a
quadruple helix environment. The Journal of Technology Transfer, 42(2), pp.229-235.
Durand, R., Paugam, L. and Stolowy, H., 2019. Do investors actually value sustainability
indices? Replication, development, and new evidence on CSR visibility. Strategic
Management Journal, 40(9), pp.1471-1490.
Fahad, M. and Ali, T., 2020. Impact of Inflation on Promotional Activities of FMCG Companies
In Pakistan. Journal of Finance, Accounting and Management, 11(2), pp.28-35.
Gaviria-Marin, M., Merigó, J. M. and Baier-Fuentes, H., 2019. Knowledge management: A
global examination based on bibliometric analysis. Technological Forecasting and
Social Change, 140, pp.194-220.
Jeshfaghani, H. A., 2020. Strategic Management of Disease Covid-19. Journal of Shahid
Sadoughi University of Medical Sciences.
Luo, Y. and Shenkar, O., 2017. The multinational corporation as a multilingual community:
Language and organization in a global context. In Language in International
Business (pp. 59-92). Palgrave Macmillan, Cham.