Strategic Management Case Study: Tesco's Strategies and Analysis

This case study provides an in-depth analysis of Tesco's strategic management, focusing on its definition, processes, and the tools used to determine its strategies, including SWOT analysis. It examines how Tesco applies these tools and models within its operations as a leading global retailer. The study also highlights the importance of change management, considering the complexities of transformation processes, associated costs, risks, and the need for sustainability in the dynamic business environment. The document provides a comprehensive overview of Tesco's strengths, weaknesses, opportunities, and threats, offering valuable insights into its strategic decision-making and market position. The analysis encompasses various aspects of Tesco's operations, from its market share and supply chain to its responses to market challenges and competition. This case study is a valuable resource for students studying strategic management and business development, offering a practical application of theoretical concepts.

Strategic management
case-study analysis

INTRODUCTION....................................................................................................................................3
MAIN BODY...........................................................................................................................................3
Definition of strategic management.....................................................................................................3
Process used by organisation to determine their strategy....................................................................3
Model and tools used by organisation to determine their strategy.......................................................3
Application of tool to real organisation...............................................................................................3
Importance of change management based on the complexity of transformation process, costs, risk
and sustainability..................................................................................................................................3
CONCLUSION........................................................................................................................................3
REFERENCES.........................................................................................................................................4

INTRODUCTION
Strategic management is the procedure which an organisation use achieve their goals and
objectives (Ansoff And et. la., 2018). It involves setting objectives, analysing competitive environment,
analysing internal organisation, evaluating strategy as well as ensuring that it management roll out this
strategy within the organisation. This report is based on TESCO which is a British multinational
groceries as well as general merchandise retailer. By measuring gross revenue it has been determine
that Tesco is third largest retailer in the world. It was founded in 1919 and founder was Jack Cohen.
Area served by respective organisation is UK, Ireland, India, Malaysia, Thailand, Czech Republic,
Slovak Republic, Hungary and Poland.
This report will going to define the concept of strategic management as well as process which
an organisation use to determine their strategy. In addition to this, model as well as tool which
company use by determining their strategy also highlight along with their application. Moreover,
importance of change management will elaborate which is based on complexity of transformation
process, costs, risk as well as sustainability.
MAIN BODY
Definition of strategic management
Strategic management is ongoing planning, monitoring, analysis as well as assessment of all
the things which is important for an business firm for accomplishing their goals and objectives in
effective manner (Baumgartner and Rauter, 2017). For success company have to look over the
changes which take place within business environment and assess that within their strategies. There
are two main objectives oof strategic management explanation of these are as follows :-
 First and foremost objective of strategic management is to gain competitive advantages, with
aim of outperforming the competitors for gaining dominance over market.
 To act as a guide for an business firm as well as also provide assistance in surviving the
changes within business environment.
Here, changes are related to modification within internal environment i.e., within the business firm
introduced by managers like changes in business policies, process and many more. On the other hand,
modification in external environment includes rules of government which may impact on business,
competitors move, changes in taste and preferences of customers. Apart from this, implementation of
strategic management have several importance within working of Tesco explanation of these are as
follows :-

 Strategic management provide guidance to business firm for moving within specific direction.
Moreover, it defines goals of company as well as fixes realistic objectives which are relayed
with vision of company.
 Provide assistance to company in becoming proactive instead of reactive and also help in
analysing action of their competitors. Along with this, strategic management assist Tesco in
taking necessary steps for competing within market rather than becoming spectators.
 Furthermore, strategic management act as a foundation for all key decisions of the business
firm.
Process used by organisation to determine their strategy
Strategic management is the process more than a set of rules to follow and its implementation
is beneficial for a business firm in accomplishing their goals and objectives. In simple term it can be
said that, strategic management is philosophical approach to a business. Strategic management process
implemented in company properly when everyone within company understand strategy (What is
Strategic Management Process?, 2020). Explanation of process are as follows :-
 Clarify vision – First step of strategic management process is to clarify vision of company.
This stage identify three key facts: firstly, long term and short term objectives of business will
define. After that process for accomplishing these objectives will identified. In final stage,
process will customized for staff members and task allotted to each and every individual in
which they get succeed. But most important thing is that goals should be realistic, detailed as
well as match with the values of vision. Finally in this stage mission statement will written
which succinctly communicate goals of company to both staff members and shareholders.
 Gather and analyse information – In strategic management process analysing is key stage
because information gathered within this stage will shape for next two stages. Thus, within this
stage data and information will be gathered as much as possible for accomplishing vision of
business. It must focus on understanding need of organisation as a sustainable entity because
strategic direction as well as identifying initiatives provide assistance to company in their
growth. Along with this, it is important to analyse both internal and external issues which may
impact on goals and objectives of business.
 Formulate Strategy – It is the process in which organisation deciding best course of action for
achieving goals and objectives of business. After conducting environment scanning process
manager of company formulate strategies related to corporate, business as well as functional.
 Implement strategy - In this stage company implement the selected strategy within their action
as well as making it work as intended. Here, implementation of strategy includes designing
structure of company, distribution of resources, developing decision making procedure as well
as effective management of human resources. In simple term it can be said that, for an business

firm it is important to implement strategy within effective manner as it will help them in
accomplishing goals and objectives in appropriate manner.
 Evaluation and control – It is final step of strategy management process which involves
appraising internal as well as external factors, taking corrective actions and measuring
performance. Moreover, evaluation assure that management of organisational strategy and its
implementation provide assistance to business firm in accomplishing their objectives in
effective manner.
These steps carried by a business firm within chronological order while creating new strategic
management plan. Moreover, implementation of strategic management process provides assistance to
company in accomplishing their goals and objectives within effective manner.
Model and tools used by organisation to determine their strategy
` Strategic planning used by an organisation for setting up their long term goals as well as
priorities for and business home. Strategic planning in the written document which outline goals and
objectives of home There are several model which can business firm can use for their strategic
management purpose such as SWOT analysis, porter's five forces, PESTLE analysis, visioning and
VRIO framework.
SWOT analysis strategic planning tool which an organisation can use for determining their
strength, weakness, opportunity as well as threat. Each of these elements determines in relation of
business home and help in taking major decisions. Along with this, SWOT analysis as a strategic
planning tool allows company to determine new opportunities and area of business with need
improvement. With these something that also identified this may have negative impact on the success
of company. In this framework, both internal as well as external factors will indentify because
strength and weakness are internal part of an organisation. On the other hand, opportunity and threats
are external.
Application of tool to real organisation
SWOT analysis is strategic planning tool whose aim is to examine strength and weakness of
company. Along with this, explore the opportunity as well as threat which company is facing. TESCO
is a British multinational groceries as well as general merchandise retailer (SWOT Analysis of Tesco,
2020). By measuring gross revenue it has been determine that Tesco is third largest retailer in the
world. It was founded in 1919 and founder was Jack Cohen. Area served by respective organisation is
UK, Ireland, India, Malaysia, Thailand, Czech Republic, Slovak Republic, Hungary and Poland. In
relation of TESCO SSWOOT analysis are as follows :-
Strength of TESCO

 Biggest grocery retailer in UK – In United Kingdom Tesco is one of the leading gross
retailer as well as number one supermarket. Along with this Tesco have high sea sales as well
as revenue in comparison of other supermarket in Great Britain. Has been analysed through
annual report of 2018 annual profit of Tesco Rose by 28%.
 Leading market share – Tesco have leading market share as it is dominating grocery retail
market of Great Britain with 27% of market share among big four supermarkets. In addition to
this respective retailer become most popular or well known supermarket in Ireland.
 Growing number of stores – Tesco have growing number of stores as in 2018 it have 3751
stores and now it have more than 6966 grocery retail stores at global level. Revenue of Tesco
is increasing day by day because of their addition new store within operation chain.
 Europe’s largest private employer – At worldwide level Tesco offers more than 743K job
opportunities for people which are enough for getting most of the people employed. Along
with this, it has been claimed that respective organisation is largest opportunity builder within
entire Europe. In simple word it can be said that, Tesco is employment generation organisation
as well as it result in reducing unemployment ratio.
 Efficient supply chain network – TESCO have its simplified business model, appropriate
policies related to waste management, reduced incurring cost as well as it has created reliable
and efficient supply chain network. Moreover. Respective retailer bears profitable relation
with suppliers.
Weakness of TESCO
 Field operation in US as well as Japan – it is one of the biggest weakness of Tesco as exist
from the market of America and Japan in 2012 (Tron, Valenza and Caputo, 2018.). Respective
organisation gets failed in relation of export Force Company to close their stores in Japan after
that in US also. This result in negative image within market area of Tesco.
 Fraud trial and accounting scandal – due to false accounting declaration as well as miss
representation of profitability in 2017 Tesco has been charged with fines. Such practices result
in reducing trust of investors on respective company as well as result in negative impact on
brand image.
 Decrease in operating profit – Share price of Tesco fell more than 9% due to decline within
their operating profitability in 2017. Since Brexit referendum it is proved as worst
performance of respective business firm.
 Financial errors – Due to high credit card liability as well as debts financial profits of Tesco
are profoundly affected.
Opportunity of TESCO

 Online shopping – TESCO have opportunity of online shopping as company can upgrade its
online shopping as well as delivery services.
 Joint Venture – Tesco have opportunity of Joint Venture in the regions where their stores are
underperforming. Local organisations can provide information or knowledge to Tesco about
such region which helps them in improving their performance.
 Emerging market – Tesco has their stores in several developing country but expanding within
emerging market is opportunity for them such as Turkey, South Korea, Indonesia and many
more.
Threats of TESCO
 Brexit Referendum - With Britain no longer in the European Union, the trade deals and cost
matters have posed a threat for Tesco (Domínguez-Tejo and Metternicht, 2018).
 Competition with supermarket giants – Another major threat which Tesco have is raising
performance as well as growth of their competitors such as WalMart, Aldi and Carrefour.
Importance of change management based on the complexity of transformation process, costs,
risk and sustainability
Business environment is dynamic in nature result changes within working of business firms.
And for them it is essential to implement changes and effective manner because it will result in their
long-term sustainability within business environment (Al Shobaki and Abu-Naser, 2016). There are
several change punishment model which in organisation can implement within their working for
managing modification which taken place in business environment in effective manner.
Lewin’s change management model is most popular as well as appropriate that make it
possible for us to understand organizational and structured change. It have three major steps i.e.,
unfreeze, change and refreeze. First step of Change management model that is unfreeze in which
organisation remove the existing strategies from working of company with the motive of
implementing changes. After that next stage is changed in that what modification will made by
company discuss with employees for making them aware about the changes organisation is going to
implement. Then changes will be implement in the second stage of Change management model. Last
stage is refreeze in which implemented modification refreeze by company and each and every
employee follow that.
CONCLUSION
After going through above discussion it has been summarised that, Strategic management is
the procedure which an organisation use achieve their goals and objectives. It involves setting

objectives, analysing competitive environment, analysing internal organisation, evaluating strategy as
well as ensuring that it management roll out this strategy within the organisation. There is proper
process which an business firm use for determining their strategy as well as with process there are
some model and tool also. In addition to this, it is important to consider the changes which take place
in business environment for better implementation of strategy.

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