Strategic Analysis of Tesco Using Porter and Bowman Models: Activity 4

This report provides a comprehensive analysis of Tesco's business strategy, focusing on Activity 4 which involves the application of Porter's generic strategies and the extended model of Bowman's strategy clock. The introduction defines business strategy and highlights its importance in achieving organizational goals. The report then delves into strategic planning, explaining the use of Porter's strategies (cost leadership, differentiation, and focus strategies) and Bowman's strategic clock to assess Tesco's market position. It includes an analysis of Tesco's internal strengths and market dynamics. Furthermore, the report offers recommendations, suggesting product development and retrenchment strategies, particularly liquidation, as effective growth strategies for Tesco. A strategic management plan is presented, outlining the mission, vision, aims, objectives, required resources, and target dates for various strategic initiatives. The conclusion summarizes the use of various strategic tools and their impact on Tesco's strategic planning. The report is a valuable resource for students seeking to understand business strategy and strategic management.

UNIT 32 BUSINESS
STRATEGY- ACTIVITY 4
ONLY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Activity 4.........................................................................................................................................3
Application of Porter's generic strategies and extended model of Bowman strategy clock to
analyse strategic planning............................................................................................................3
Recommendation.........................................................................................................................5
Strategic management plan..........................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy defined as competitive forces that helps to undertake better moves and
actions that assist business to attract customer’s, compete successfully, strengthening
performance and this also leads to accomplish organisation goals (Johnson, 2016). Effective plan
of action within the enterprise helps to facilitate the workforce that can helps to accomplish the
productive and profitable results.
The present report is based on business activities of Tesco, It is global leading enterprise
that is engaged in supermarket services of grocery products.
Furthermore, report will cover the activities as to application of Porter generic strategies
and model as Bowman strategy to analyse the strategic planning for the organisation. Lastly,
study will laid emphasise on strategic management plan in terms to identify the tangible and
tactical priorities of the organisation.
Activity 4
Application of Porter's generic strategies and extended model of Bowman strategy clock to
analyse strategic planning.
Strategic planning defined as process in which an enterprise undertake the steps that aids
to analyse the both internal and external working condition of the enterprise (Baxter, 2019). This
can be defined with help of forces as-
Porter's generic strategies- It is competitive forces that aids to gain competitive advancement
within the enterprise. This defined in following manner as are-
Cost leadership strategy- It is generic calls and this strategy is usually targets the broad market.
In the present scenario, the customer demands for high quality commodities at the lower prices
(Ge and Li, 2019). Therefore, Tesco needs to target the customer of the weaker sections society
and must take initiatives to provide effective quality commodities at the cheaper cost. Thus,
internal strength to this as-
 High level of expertise in manufacturing process.
 Efficient and effective channel of distribution.
Differentiation strategy- This is plan of action that is relate with bringing development in the
product and services by brining up innovation. In the present era, the most of the customer’s are
looking towards to consume organic products and low calorie commodities to maintain their

health well being. By producing this kind of the commodities, Tesco can able to gain competitive
advancement by maximising share within market.
Differentiation Focus strategy- It is strategy that force to focus in narrow segment that attempts
to accomplish desired target within the enterprise. Differentiation focused strategy helps to pass
the higher cost on the product since the close commodities do not exist.
Cost focus- By choosing the weaker section of the society and to provide the commodities of
better quality aids to gain the competitive advancement within the enterprise. This aids to brand
image of the enterprise.
Bowman strategic model-
It is marketing model in which a firm can able to analyse it position within the market.
Thus, Its defined in following manner as are-
 Low price and low added value- At this level, the product will be offered to customer at
the very little process. It is effective at time when company has to compete with
suppliers.
 Low price- In this commodities gets valued. It is related with cheaper leaders of market
that put their focus on cost minimisation, cheap and fast production with use of
economies of scale.

Illustration 1: Bowman strategic model
(Source:The two dimensions of the Bowman’s Strategy Clock, 2018 )

 Hybrid- It can be used by firm that involved in product differentiation. Under this, entity
focus on low price.
 Differentiation- The company use the differentiation strategy in produce the commodity
at possible quality at average price. In this, customer are more sensitive to have the high
quality commodities.
 Focused differentiation- In order to attract the large customer’s within the market, they
must use segmentation, promotion and distribution. It leads to get higher profit margin.
 Risk high margins- The firm use this strategy at the time of charging high price of the
commodities. This is also have significant amount of risk as this has more chance to fail.
 Monopoly pricing- It is used by the firms that has strength to sell the commodities in the
whole market as being the single seller. Due to this, they do not have fear of competition
and selling the commodities at the higher price.
Recommendation
There are wide varieties of strategies which are available to TESCO bu the most effective
growth strategy which the company can go with is product development and liquidation
Product development is basically offering the new and innovative products to the already
established market and thus capturing the market share. This will be the most beneficial limited
growth strategy for TESCO due to operations in large number of countries. The main advantage
of this strategy which will helps TESCO is that the company would not have to incur the
additional cost of researching the new market. Conducting the market research to enter new
market generally incurs high cost thus this strategy will save TESCO from additional operational
cost. Besides this, this strategy will also help TESCO to explore the new product line and thus
enter the different product mixture (Johnson, 2016). Due to the new and innovative product,
more and more customers will get attracted towards the company as it has established name and
thus this will eventually enlarge their customer base.
Apart from this, retrenchment strategy will also enable TESCO to establish their achieve
goals and objectives. Within retrenchment strategy, most effective one is liquidation strategy. In
this strategy, organizations mainly sells their assets and thus decide to finally wind up the
operations of business. TESCO ca use this strategy as growth strategy by shutting down the
units or departments which are not providing any advantage to company and hence are not

worth. By closing required units, most of the expenses of company will cut down and thus will
enable them to achieve greater market share by opening new innovative units.
Strategic management plan
Strategic management plan is basically the tool as well as document which enables the
organizations to set their goals, priorities as well as configure the resources for strengthening
their operations and for achieving common goals.
Mission
To develop value and worth for customers through offering them world-class services by
constantly adapting to changing world and therefore leave the presence across world.
Vision
To become the leading and highly respectable firm by serving customers as well ads
communities in different way and working for interest of stakeholders.
Ai
m
Objectives Resources
required.
Allocation
of responsibility
Targe
t
dates
Revie
w
dates/
review
point
Deviati
on
diagnos
is
and
correcti
ve
action
dates
Revised
target
dates
if
applica
ble
1) To increase
the sale of
products by
20% before
end of 2020.
Digital
marketing
tools, market
research
methods,
innovation,
marketing
Sales manager
and the sales
team.
20/11/
19
23/11/
19
28/11/1
9
05/12/1
9
2) To capture
and
acquire
market
share of
around
40%
before the
closing of
year 2022.
Unique
product,
SWOT of
competitors,
market
research
Marketing
manager, to
management,
sales manager,
sales and
marketing team.
20/01/
20
25/01/
20
28/01/1
1
04/02/2
0
3) To increase Marketing Top 03/03/ 10/03/ 14/03/2 18/03/2

customer
experience
and
satisfaction
level by
40% in
upcoming 4
months
plan, social
media, omni-
channel,
loyalty
program
(Matt, Hess
and Benlian,
2015).
management,
area supervisors,
regional sales
officers, senior
marketing
manager, sales
team.
20 20 0 0
4) To increase
profitability
and revenue
ratio by
30% in
upcoming 2
months
SEO, digital
media,
campaigns
and events.
Finance and
budget manager,
finance team,
marketing team,
product
divisional
manager,
advertising team,
10/04/
20
12/04/
20
15/04/2
0
22/04/2
0
5) To become
market
leader in
terms of
sustainabilit
y in
forthcoming
year of 2022
Organic
products, CSR
campaigns,
training and
development,
team building
activities
Research and
development,
Human resource,
deputy sales
officer,
marketing team,
20/06/
20
25/06/
20
28/06/2
0
30/06/2
0
This strategic management plan will help the organization to achieve their long term
goals as well as will help to expand in the wider geographies. With the help of effective strategic
management plan, organization will be able to attract their target customers and this will
eventually raise their sales and hence profit ratio. Besides this, it will also help them to ensure
that whether their activities are aligned to their strategic mission and vision and thus will assist
them to gain competitive advantage.

CONCLUSION
It has been summarized that the organization utilizes various tools like porter generic
strategy, Ansoff matrix in order to develop effective strategic planning. These strategies help the
organization to analyse their strategy and weakness and thus select the appropriate growth
strategy which will help them to flourish and expand. For achieving their objectives,
organizations builds a strategic plan which helps them to consider the various constraints and
thus assist them to revise their objectives.

REFERENCES
Books & Journals
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business &
Information Systems Engineering.57(5). pp.339-343.
Rothaermel, F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Baxter, G., 2019. A Strategic Analysis of Cargolux Airlines International Position in the Global
Air Cargo Supply Chain Using Porter’s Five Forces Model. Infrastructures. 4(1). p.6.
Ge, L. and Li, C., 2019, April. Analysis of competitive Power of Chinese Sports Apparel Brand
based on Porter's five Force Model. In Proceedings of the 2019 3rd International
Conference on Information Systand Data Mining (pp. 54-58). ACM.
Online
The two dimensions of the Bowman’s Strategy Clock. 2018 [Online] Available
thorugh:<https://www.marketing91.com/what-is-bowmans-strategy-clock/>.