Strategic Management Report: Evaluating Tesco's Planning and Execution

This report provides a comprehensive analysis of strategic management practices, focusing on the application of these principles within Tesco, a leading multinational retail corporation. The report begins with an introduction to strategic management, outlining its importance in organizational planning, monitoring, and adaptation to the business environment. It then details the strategic management process, including determining strategic position, framing objectives, developing plans, executing plans, and analyzing and revising plans. The report further explores various strategic management tools and models, such as Porter's Five Forces and SWOT analysis, and explains how these tools are utilized by organizations for strategic planning. A significant portion of the report is dedicated to examining how Tesco specifically employs these tools, including a SWOT analysis of Tesco, and the application of Porter's Five Forces and PEST analysis to understand its external environment. The report concludes by emphasizing the crucial role of planning and executing change management within an organization to adapt to industry changes and maintain sustainability. The report offers insights into Tesco's strategic approach, providing a framework for understanding its business strategies.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK....................................................................................................................................................3
PROCESS ADOPTED FOR STRATEGIC MANAGEMENT BY VARIOUS ORGANIZATIONS 3
MODELS AND TOOLS USED BY THE VARIOUS ORGANIZATIONS TO FOR PLANNING
THE STRATEGIES..........................................................................................................................4
MODELS AND TOOLS USED BY TESCO IN ORDER TO PLAN THE STRATEGIES..............5
IMPORTANCE OF PLANNING AND EXECUTING A CHANGE MANAGEMENT...................7
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8

INTRODUCTION
Strategic management is referred to the process which involves planning, monitoring,
analyzing, assessing the requirements of the organization that are important in order to fulfill
the aims and the objectives of the organization. Strategic management is a continuous
process. Strategic management helps in coping up with the changes in the business
environment that are required to be adapted by the organization as well. The process of
strategic management is about analyzing the current situation of the organization and framing
policies accordingly and then later bringing them into practice. After the policies have been
brought into practice, later the effectiveness of the strategies is evaluated (Alhefiti, Ameen
and Bhaumik, 2019).
Tesco is a UK base multinational corporate that deals in retail business. It is among
the top retailer across the globe in terms of revenue. Tesco has its headquarters established in
London, UK. In terms of grocery, Tesco is the market leader in UK. It has its business
established in various countries across Europe. The organization was established in the year
1919 in London. Tesco has expanded its operational activities in over 11 countries across the
globe. The report focuses on the Strategic Management techniques that are adopted by Tesco
(Andriani and et.al., 2019).
TASK
PROCESS ADOPTED FOR STRATEGIC MANAGEMENT BY VARIOUS
ORGANIZATIONS
The strategy planning is very crucial for the organizations in order to achieve the
goals of the organizations. In absence of strategy, the operational activity of an organization
cannot be performed in an effective and efficient manner. In order to plan the strategies in an
efficient manner, various steps need to be performed. The steps required for the execution of
strategic management are as follows-
 Determining the strategic position- This instruction segment involving the identification
of position sets the level for all scenarios going forward. You want to recognize wherein
you're to determine in which you need to move and the way you may get there. Get the
proper stakeholders involved from the start, thinking about internal and external
resources. It can also be useful in developing organization’s mission and vision
statements to provide yourself and your group a clear image of what achievement looks as
if on your business. In addition, you should evaluate your organization’s core values to
remind the organization about how the organization is going to perform in order to
achieve those goals (Assar and Hafsi, 2019).
 Framing of objectives- Once the organization has identified various current positions in
the market the next aim is to develop the aims that are to be achieved by the organization.
This will help in achievement of the goals in a prominent manner and effectively. The
objectives must link with the mission and vision of the organization. The objectives must

be decided and set in the order of priority. It should be carefully studied that what all
impact the objectives are going to have on the organization. The impact of competition
must also be considered. Also the plan must have the goals, the time required for
completion of the goals and the progress in the aspect (Das and Tripathi, 2020).
 Development of plan- The next step after deciding the objectives is to create a strategic
plan in order to achieve the goals in an efficient manner. This step is taken with an aim
for determining the methods that are important to gain the goals and deciding a time
frame along with a clear communication of responsibilities. Strategy mapping is an
effective device to visualize or decide the whole plan. Working from the top level to
bottom level in an organization, the strategy maps make it easy to view enterprise
methods and become aware of deviations that can be looked after for the purpose of
improvement.
 Execution of the plan- When the plan has been developed, the next step is to be ready to
bring it into action. For this purpose, the next step is to communicate the plan to the
employer by using sharing applicable documentation. After this, the next task is to turn
the broader approach right into a concrete plan by using mapping techniques. Using KPI
dashboards to certainly communicate group duties can be practiced. This granular method
illustrates the complete method and possession for each step of the manner. The standards
can be set in order to review the efforts of the organization (Eker and Eker, 2019).
 Analysis and revision of plan- The very last stage of the process of formulation of plan is
to review and revise the plan that offers an opportunity to reevaluate the priorities and
route-accurate based on past successes or disasters in an organization. On an annual basis,
it is crucial for the organization to reevaluate their priorities and strategic position to
ensure that they achieve the success in the operational process for a long run. The
progress of the organization can be tracked with the help of various tools such as
balanced score card that provide an accurate review of the organization.
MODELS AND TOOLS USED BY THE VARIOUS ORGANIZATIONS TO FOR
PLANNING THE STRATEGIES
There are various strategies that can be adopted in order to plan and develop the
strategies in the organization. The various tools are discussed below-
PORTER’S FIVE FORCES MODEL
Porter’s Five Forces model was developed by Michael Porter in 1979. The framework was
constructed in order to determine across the forces that affects the profitability of a business
enterprise or a marketplace. The 5 forces it examines are discusses below-
 The potential of the buyer- The potential of the buyer can be termed as the capacity of
the consumers to bring down the price of a commodity (Gasmi and et.al., 2020).
 The potential of the supplier- The potential of the supplier is termed as the strength of
the supplier who supplies the raw material. The potential of the buyer is considered
high if there are limited suppliers as the prices cannot be bargained.

 Threat from the new entrants- If the profit in the industry is high and there is leniency
in terms of permitting entrance to the organization in that case the threat of new
entrants can be considered high.
 Threat from the substitutes- If the organization has various substitutes that can assure
same or more amount of satisfaction in the market than the threat of substitutes is high
for the organization (Herstein and et.al., 2017).
 Rivalry within the industry- The rivalry inside the industry can be referred as the cut
throat competition among the different organizations in the industry. When there are
more organizations that deal in the similar products or services then the level of
competition can be said as high.
The quantity of pressure on every of those forces allows the organization to decide the
impact of future activities will affect the organization in the future.
SWOT ANALYSIS
The SWOT analysis of an organization helps in analyzing the various strengths,
weakness, opportunities and threats of an organization. The strengths and weakness are the
internal factors whereas the opportunities and threats are termed as external factors.
 The strengths of the organization are the aspects that can lead to the progress of the
organization or term to be fruitful (Khosiev and et.al., 2019).
 The weaknesses of an organization are the aspects that can be termed as the
drawbacks in an organization. The drawbacks lead to resistance of the future goals.
 The opportunities are the external factors that affect the chances of growth of an
organization. The opportunities can be referred to aspects of various external
environments that will favour the organization.
 The threats are also the external factors which have an impact upon the organization.
These are the factors whose occurrence can lead to hazardous changes or losses to the
organization.
MODELS AND TOOLS USED BY TESCO IN ORDER TO PLAN THE STRATEGIES
There are various tools that can be used by Tesco in order to initiate a strategic
management for the organization. The tools used by Tesco in order to plan strategic
management are discussed below-
SWOT ANALYSIS OF TESCO
The SWOT analysis helps in determining the strengths, weaknesses, opportunities and
threats of the organization. After these are determined, these play a major role in determining
the strategies that need to be executed in the organization. The SWOT analysis of TESCO is
discussed below-
STRENGTHS WEAKNESS
 Increasing market share
 General growth monitored
 Insurance
 Dependent upon the market of UK
only
 Acquisitions

 Online portals
 Market leadership
 Brand value of tesco
 Decrease in debt of Tesco
OPPORTUNITIES THREATS
 Retailing apart from eateries or
grocery
 Health and beauty product or service
market
 International expansion in various
countries
 Structural changes in UK could lead
to price war
 Decrement in the returns from the
international market.
 Merger of the major competitors
 Expansion in international market can
be termed expensive for Tesco.
PORTER’S FIVE FORCE MODEL
The porters five force model will help in analyzing the external environment tha will
affect the organization. Tesco will consider the various factors for formulating the strategies
on the basis of the model-
 Buyer’s potential- The buyers have less potential due to the customized services
provided by Tesco and thus the switching cost is high (Lederer, Kurz and Lazarov,
2017).
 Supplier’s potential- The suppliers have fear that if they do not supply the products at
reasonable rates they may lose their business to the large retailers. Hence the suppliers
have low potential.
 Threats from the substitutes- Tesco has a threat of substitutes as the customers can
switch to various small vendors in various localities. Thus Tesco is planning to
establish their stores in many more areas.
 Threat from the new entrants- The grocery market is already dominated by the various
major market shareholders thus it creates a barrier for the new entrants (Mahanti,
2019).
 Competition in industry- The grocery environment has visible a completely enormous
growth in the length and marketplace dominance of the larger gamers, with more save
size, improved store attention, and the utilisation of various formats, which are now
outstanding traits of the arena. As it changed into referred to above, the shopping
electricity of the food-retailing enterprise is focused inside the hands of a pretty small
wide variety of retail buyers. Hence it can be said that the competition is high.
PEST ANALYSIS
The Pest analysis allows the organization to study the scenario of the Political,
Economic, Social and Technological factors that have an impact upon the strategies of Tesco.
The various factors are discussed below-
 Political factors- The organization operates in various countries and hence it is
important for them to comply with the political standards of various countries. These

can be job opportunities in the area or the costs and expense related regulations
(Mulyono and Wekke, 2018).
 Economic factors- The economic factors are of significance in Tesco whereas they are
out of its control. The economic factors include employment level, demand of goods,
standard of living, etc.
 Social factors- The social cultures that might affect the business of Tesco are
attributes and beliefs of the people in an area. The organization need to adjust with the
ideologies that are in complementary with the culture.
 Technological factors- Tesco must concentrate upon the technology that is both
beneficial to the organization as well as to the customers (Nelipa and Batrymenko,
2018).
IMPORTANCE OF PLANNING AND EXECUTING A CHANGE MANAGEMENT
It is very crucial for an organization to plan a change in an organization. This is
important in order to adjust with the changes of the industry or the environment. The various
benefits in terms of risk, cost and sustainability are discussed below-
 Risk- Resistance to exchange is to be expected, however whilst it isn’t properly
managed it is able to threaten the success of your task. Change is perceived as risky
however perceptions may be influenced even if risks are very actual. The groups want
to do not forget the risk of allocating the finances to something new, the risk of
impacting dependencies, and go back on funding risks. Ultimately, the workforce has
to be encouraged to embrace chance for you to get hold of rewards. With the
appropriate gear to control a smooth change life-cycle, you can mitigate the negative
effect of resistance and risks. The fact is that People don’t resist alternate but They
face up to being changed. Hence this shows that it's the human behavior that wishes to
be addressed (Shaeri and et.al., 2017).
 Cost- When fine change is carried out successfully, it facilitates to lessen waste and
therefore lessen charges. Effective trade management helps an organization make
clever choices. It will increase productiveness, decreases dangers, and facilitates to
improve the profitability of an organization (Wiraeus and Creelman, 2018).
 Sustainability- The changes help in adopting to the resources or assets that are
beneficial in accordance with the nature and have less impact on the environment
exploitation. This leads to sustainability of the resources in the environment (Sari,
Putri, and Monica, 2020).
CONCLUSION
It can be concluded from the study that strategy management is of huge significance
in every organization. Strategic management is a continuous process. Strategic management
helps in coping up with the changes in the business environment that are required to be
adapted by the organization as well. The process of strategic management is about analyzing
the current situation of the organization and framing policies accordingly and then later

bringing them into practice. The study focuses upon the various models that can be adopted
for the process of strategic management. The study describes in detail about the process of
strategic management. The study also emphasizes on the models of strategic management in
aspect of TESCO. Further the study describes the various importance of change management
in various organizations.

REFERENCES
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