Strategic Planning and Analysis: A Comprehensive Report on Tesco

This report provides a comprehensive analysis of Tesco's strategic planning. It begins by examining the organization's vision, mission, and the relationship between its strategy and business plan. The report then explores how external factors, including political, economic, social, technological, legal, and environmental influences, affect Tesco's operations and strategic direction. Stakeholder expectations, including those of customers and employees, are also considered. The analysis includes an evaluation of Tesco's vision and mission, assessing their impact on the company's strategy. The report further delves into the importance of reviewing organizational strategy and business plans, utilizing tools such as the Ansoff Matrix and SWOT analysis to evaluate Tesco's current market position. Finally, the report discusses strategic options for Tesco, the criteria for reviewing them, and the process of creating a strategic plan, including stakeholder involvement and monitoring systems. The report concludes with a strategic plan outline for Tesco.

Strategic Planning

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 organisational vision, mission, strategy and business plans and relationship between them
.....................................................................................................................................................1
1.2 How external factor affect organisation and how changes in external environment affect
organisational strategy................................................................................................................2
1.3 How stake holder expectation influence organisation..........................................................2
TASK 2............................................................................................................................................3
2.1 Analyse the vision and mission of Tesco..............................................................................3
M1. Evaluates the impact of Tesco's vision and mission on its strategy....................................3
D1. Analyse how external factor affect organisational strategies of Tesco................................3
TASK 3............................................................................................................................................4
3.1 Explain the importance of reviewing in developing organisational strategy and business
plan..............................................................................................................................................4
3.2 Evaluates the tools of reviewing organisation strategy and business plan............................4
(M&D)1. Reviewing the current position of Tesco in its current market using appropriate
tools.............................................................................................................................................5
TASK 4............................................................................................................................................6
4.1 Strategy options for Tesco....................................................................................................6
4.2 Criteria for reviewing potential strategy option....................................................................6
M1. Apply the criteria and evaluates the option for delivering strategic direction to the Tesco 6
TASK 5............................................................................................................................................7
5.1 the stricture of a plan needed to deliver the strategy.............................................................7
5.2 How stakeholders are involved in formulation of plan.........................................................8
5.3 Process to ensure stakeholder are informed and committed to the plan...............................8
M1. Create monitoring system to ensure the successful implantation of strategic plan.............8
D1. Construct a strategic plan for Tesco.....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic planning is the management process that is used to set priorities, strengthen
operation and ensure that employee and stakeholder working on common goals. Strategic
planning designs strategic plan which defines organisational goals and also determine the ways
for accomplishing organisational goals. Tesco is multinational general merchandise retailer,
established in Welwyn garden city, United Kingdom. This company founded by jack Cohen in
1919. It has 6553 shops across the UK, India, Ireland, Malaysia, Thailand and Hungary with the
4,76,000 number of employees(Bryson, 2018). The report will present vision, mission and
strategy and business plan of Tesco and relationship between them. The study explains how
external factor affect organisation and changes in external environment affect organisational
strategies. It also evaluates the tool which can be used to review organisational strategy and
business plans.
TASK 1
1.1 organisational vision, mission, strategy and business plans and relationship between them
Vision and mission
Tesco has main vision that constant remains while continuously changes are adapted by
its business strategy and practices. Without a clear vision company may can not survive or have
lack of direction in current competitive global environment(Cassidy, 2016).
The mission of Tesco is earning trust and loyalty from customers and their colleagues and
communities.
Strategy and business plan
Tesco set out the strategies to achieve its goal being highly valued by consumer and build
long term growth. It has technological innovation strategy which produce innovative products to
develop its own label brand such F&F clothes and provides with good quality at the reasonable
price to consumers(Channon and Jalland, 2016).
The business plan of Tesco company is to make itself as a creator of highly valued brands
across the world.
This can be achieved through better relationship between business strategy and business
plan because business plan of Tesco is to established itself as a creator of highly valued brand
which can be accomplish through technological innovations, developing its own label trends

such as F&F clothes and provides consumer with good quality products at competitive
prices(Haines, 2016).
1.2 How external factor affect organisation and how changes in external environment affect
organisational strategy
Political factors : which affect the Tesco company because Tesco operates its business
across the world. The Factors involve tax rate, government policies and various
legislations(Hübner, Kuhn and Wollenburg, 2016).
Economical Factors: import and export tariffs may make difficult to run business in
other countries and in a local government there will be restriction on the kind of business
permissible in certain location.
Social Factors: Market is dynamic as people's demand is changing with new concepts
coming. Changing attitude and behaviour are major factor that can affect a business. Tesco is in
food industry and according to today's environment people choose healthy yet tasty food so the
company is order to be competitive in market start dealing in non-food items as well.
Technological Factors:It includes technological factor which affect the organisational
strategy such as technological innovation because with the development of technology, Tesco
also change its working methods and old technology to adopt new technology.
Legal Factors: Performance of Tesco is affected by the laws of the government. Food
Retailing Commission enforced Tesco to use standard pricing and the industries can not change
the prices without any notice.
Environmental Factors: Companies should consider social responsibility in their
working. These are some major changes that needed to be fulfilled by Tesco(Katsioloudes and
Abouhanian, 2016).
1.3 How stake holder expectation influence organisation
Tesco use Normative Stakeholders Theory, as this gives explanation about why
businesses should consider stakeholder viewpoint.
Stakeholder is the important part of every organisation because it supports organisation in
the achievement of organisational goals. Stakeholder of Tesco can be a customer, employee,
shareholder, suppliers and local communities.
Customer expectation can influence Tesco because these are the most important
stakeholder and the profit and loss of company based on them. Every customer expects from

their company to produce the best quality products at reasonable price and it can be possible
through minimising the wastage of company and increasing productivity(Kerzner, 2019).
Employees also influence the Tesco because they are the life line of every organisation
and without them it is not possible for organisation to perform well. It is important for Tesco to
make sure that employees are satisfied with their work in company. If employees are not
satisfied with their work it influences the Tesco in terms of low productivity. For achieving
higher productivity, Tesco make sure that their employees are working in the healthy working
environment(Bryson, 2018).
TASK 2
2.1 Analyse the vision and mission of Tesco
Tesco have core vision that it remains constant while business strategy and practices
takes place continuously. Without having clear vision no one company can survive or may have
lack of direction. Vision statement is results in better growth of the company because it
determines future outlook of an organisation. Vision of the firm is to raise consumer’s trust and
earning their loyalty. Correct strategic direction will support the entity in gaining attention of
buyers and offering them quality goods as per their requirements. By this way Tesco can easily
earn the loyalty of its consumers(McLean, 2018).
The mission of Tesco is to earning trust and loyalty from consumers and their employers
and communities which results in high profit because if consumers are loyal towards the
organisation, it increased the interest of consumers to use the company's product efficiently.
M1. Evaluates the impact of Tesco's vision and mission on its strategy
The vision statement of Tesco is to gain loyalty of its potential consumers. Tesco adopts
technological innovative practices as its strategy. Clear vision and objective supports the firm in
implementing technical innovative ideas in appropriate manner. If technological innovation are
not takes place in right time or required time, then Tesco can not be a modern and innovative
company(Van Den Berg and Russo, 2017).
The mission statement of Tesco is to earn trust and loyalty from customer which is
fulfilled by providing good quality products at reasonable price to consumers and it has great
impact on marketing strategies of Tesco because company can provide the best quality product at
reasonable price to consumers by circulating the product’s information to consumers in terms of
quality, price and values through marketing strategies such as social media. Through social sites

Tesco can make strong connection with buyers and can resolve their quarries soon. This is
helpful in meeting with vision and mission of business unit(Vecchiato, 2015).
D1. Analyse how external factor affect organisational strategies of Tesco
External factor include technological factor which influence the business strategy of
Tesco such as technological innovation strategy which provides innovative solution for
providing the best quality and attractive product. With the development of technology, Tesco has
to change their technological innovations for survive in the competitive market environment.
Political factor affect the growth strategy of Tesco because this factor includes rule and
regulations and policies of government which are continuously changed and Tesco also has to
change their growth strategy for developing their business in other countries according to local
government policies of other countries(Wolf and Floyd, 2017).
TASK 3
3.1 Explain the importance of reviewing in developing organisational strategy and business plan
Ansoff Matrix : This is used to describe Tesco's Future market and growth strategies.
Market Penetration: This strategy is implemented by organisation where they try to
develop by using the same products and services in the same market. For example Tesco
maintains and increase the market share by using the competitive pricing strategy and by
advertising through ad campaigns.
Market Development: This strategy is used when the firm wants to expand their business
while entering new market by providing the same products and services. For example Tesco can
export their products to new countries.
Product Development: According to this strategy the organisation creates a new product
but offer it to the old or existing market. Like Tesco can offer new products and offer discounts.
Diversification: As per this strategy firm chooses to enter new market by developing new
products. For example Tesco can start operating in Financial services that they have some
knowledge.
BSG Matrix
Dogs: In this part the product that are low in share and has a low market growth. For
example: Tesco's Lard.
Question Marks: In this the products have low share but of a high growth market. They
take in many resources and in return give little.

Cash Cows: These are the products that have high share and low market growth. These
generate high as compared to invested in them.
Stars: These are those products which are high in share as well as growth market. These
generate high income. For example Tesco's Finest Range.
3.2 Evaluates the tools of reviewing organisation strategy and business plan
Organisational strategy and business plan can be effectively reviewed by swot analysis. It
determines strength, weakness, threats and opportunities of business strategy and plans. Swot
analysis aids the firm in analysing threats and opportunities. By this way firm may make
necessary changes in its business plan in order to accomplish the goal successfully(Cassidy,
2016).
Through Swot analyses, Tesco can find out its weakness and can take necessary action to
overcome its lacking points so that it can gain competitive advantage in the future.
This is considered as most effective tool that may support Tesco in utilising its strong
points very well and strengthen its brand image (Vision, values and business strategies. A Tesco
case study, 2019).
(M&D)1. Reviewing the current position of Tesco in its current market using appropriate tools
Swot analysis helps Tesco to identifying their internal strength and weakness as well as
external opportunities and threats which helps in identifying companies strategic
positioning(Channon and Jalland, 2016).
Swot analysis of Tesco
Strength
 Establish good brand identity and high
brand popularity in global markets.
 Strong core of UK market, which
recognising as main market of UK.
 Stable and high market activity ratio
 Awareness about the need of
international as well as local
customers(Haines, 2016).
Weakness
 Its international diversification is
depended on the financial help of UK
market.
 Costly products of Tesco compared to
other firm.
 High transport cost(Hübner, Kuhn and
Wollenburg, 2016).
Opportunities Threats

 Growth of Tesco in health care and
cosmetic products.
 Possibility of increasing the area of
diversification.
 Promoting online sales and home
delivery services.
 Growth and development of the
company is at risky position because of
increasing the unemployment rate in
recent years.
 Increasing competition in global market
place.
 Tesco's finances and operations my
threaten from economic and political
reforms(Katsioloudes and Abouhanian,
2016).
TASK 4
4.1 Strategy options for Tesco
Porter's Five Forces Model
Threat of New Entrants: Tesco can tackle the threat of new entrants by bringing
innovative products and services so that the old customer's has a reason to stick to Tesco and by
building the scale of economies company can lower the fixed cost per unit of the product.
Bargaining Power Of Suppliers: Companies buy the raw materials through various
suppliers, so they can dominate the market by reducing the margins to the profits of Tesco.
Bargaining Power of Buyers: Buyers are demanding and they want to have the best
offerings accessible that too at minimum price. This put pressure on the profitability of Tesco.
Threat of Substitutes: When a new product came into the market that has similar needs of
customer's that reduces the profitability ratio of the company. Tesco can tackle by providing
service oriented than product oriented.
Industry Rivalry: If the rivalry is intense among the industries in the existing market, this
will affect the prices of the product and the profits of Tesco.
4.2 Criteria for reviewing potential strategy option
Potential strategy option of Tesco can be reviewed through market research, internal and
external analysis of organisation and stake holder analyse.

Tesco can identify the potential strategy option like human resource based view strategy
through internal analysis of company because internal analysis determines resources available
for future operations and also identify the potential development requires in the firm(McLean,
2018).
With the help of market research Tesco can reviewing the potential strategy option such
innovative creative approach. Market resource analyse the market place, it includes product
requirement of customers in terms of price, quality and packing and also determine that
innovative creative approach can fulfil successfully consumer requirement or not.
M1. Apply the criteria and evaluates the option for delivering strategic direction to the Tesco
The internal and external analysis of Tesco can evaluates the Resource based view
strategy which provides strategic direction to the organisation. With the help of internal analysis
organisation can identify the current availability of resources as well as future requirement of
resources such human resources and funds for future operations. This process results in higher
productivity as well as high profitability of Tesco through optimum utilisation of available
resources(Van Den Berg and Russo, 2017).
Market research analyse the product need of customers in terms of quality and price
which are expected by consumers. It also determines the strategic option such as innovative
creative approach for achieving desire level result. Innovative creative approach helps in
producing attractive products which encourage the interest of customers towards the products of
Tesco which ultimately results in higher productivity.
TASK 5
5.1 the stricture of a plan needed to deliver the strategy
Structure of the strategic plan that needed to deliver strategy is explained as below:
 Mission statement: In the first phase management will describe mission statement of
Tesco in order to make the other’s aware with actual objective that company wants to
achieve.
 Guiding principles: This would be next part of strategic planning in which entity will
define values and principles of business that would help the firm in sustaining in market
for longer duration by implementing particular strategy(Vecchiato, 2015).

 Situation analyses: In the next part of this structure, management will conduct internal
external analyses of the Tesco in order to show its potential to get success and gin
competitive advantage in market.
 Strategies: In this meeting strategies of company will be explained, this will help in
developing confidence of stakeholders and they will be positive towards board and will
support in strategic planning of the enterprise.
 Monitoring & controlling: This would be last part of structure in which authorities will
describe how Tesco will monitor its progress and how controlling will be done.
Furthermore, structure will include working of different departments, profit assumptions
etc. This would be better in determining actual outcome by implementing this strategy(Wolf and
Floyd, 2017).
5.2 How stakeholders are involved in formulation of plan
Stakeholder are play an important role in formulating the plan of every organisation.
Stakeholders of Tesco includes employees customers, investors and suppliers.
Business plan of Tesco can be effectively formulated through taking good suggestion for
plan from their employees and also discuss the plan details with employees to determine how
plan implemented in their work also explain the changes which occurs by implementing the plan.
Customers are also an important part of formulating the business plan of Tesco.
Consumers involvement can be gain through market survey in terms of expectation of customers
towards the organisation which helps in smooth functioning of production process(Bryson,
2018).
5.3 Process to ensure stakeholder are informed and committed to the plan
Stakeholder of Tesco such as employees can be informed through arranging personal
meeting among employee and management. In the meeting whole information about plan
provided to employees and also determine weather employees are committed to the plan or not
through taking time to time feedback about plan from employees.
Stakeholder of Tesco like Investors can be informed by sending personal emails and calls
to investors for providing information about the business plan and also identify the interest of
investors weather they are committed to the plan through taking suggestion about the plan and
consultation with investors about plan(Cassidy, 2016).

M1. Create monitoring system to ensure the successful implantation of strategic plan
Tesco can successfully implement the strategic plan in organisation by arranging meeting
with stakeholders such as investors, suppliers, employees and customers to provide the whole
information about the business plan and also take the suggestions from stakeholder for any
changes in terms of making better business plan. To ensure the successful implementation of
plan it also determines the results after implementing the plan weather it is favourable or not for
organisation(Haines, 2016).
D1. Construct a strategic plan for Tesco
Strategic plan for Tesco can be constructed through effectively structuring of strategic
plan of the organisation which includes mission statement of Tesco, values and principles of
business, internal and external analysis of Tesco, explaining business strategy and describe how
monitoring and controlling will be done by the organisation(Kerzner, 2019).
CONCLUSION
From the above study it had concluded that strategic planning is an essential instrument
for every successful organisation because it designs strategic plan which defines organisational
goal and the way for accomplishing desired goal and results. The study was defined the various
business strategy such as technological innovative practices and marketing strategies which has
great impact on the Tesco in terms of getting trust and loyalty from consumers and increasing
productivity. This study was determined the current position of Tesco in the marketplace through
swot analysis.

REFERENCES
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