Strategic Management Analysis: Tesco's Strategies and Models

This report provides an analysis of Tesco's strategic management, focusing on the role of stakeholders, organizational structure, and key strategic management models such as SWOT and PESTLE. It evaluates how Tesco utilizes these models to determine its strategic direction, manage its internal and external environments, and achieve its goals. The report highlights Tesco's strengths, weaknesses, opportunities, and threats through the SWOT analysis, and examines the political, economic, social, technological, legal, and environmental factors impacting the business via the PESTLE framework. Ultimately, the report concludes that strategic management is crucial for Tesco's success, enabling it to navigate challenges and maintain a competitive edge in the retail sector.

Strategic Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Meaning of strategy and strategic management..........................................................................2
Role of organizational stakeholders, structures and processes....................................................2
Strategic Management models (SMM)........................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic management is an ongoing planning, monitoring, analysis and assessment of all
organization needs in order to meet the organization’s goals and objectives. The chosen firm for
this report is Tesco which is one of the top international firm in UK operates in retail sector. The
report will evaluate 2 strategic models that helps to determine the strategic management and
identify the role of organizational stakeholders, structure within a firm.
Meaning of strategy and strategic management
According to Fuertes and et.al., (2020) organization strategy is a combination of all
actions whose intend is to attain the long term goal and this also assists in company’s strategic
plan. Whereas, strategic management provides direction by developing plans and policies in
order to accomplish objectives and then allocate resources to implement the plans as well.
Through strategy and strategic management, organization gain a competitive edge over their
competitor and sustain brand image as well (
Strategic management model with examples, 2020).
Role of organizational stakeholders, structures and processes
Tesco’s stakeholders like employees, workers, shareholders and investors plays an
important role and also influence the decision making process (Bindra, Parameswar and Dhir,
2019). They make sure that organization work environment remains dynamic, stimulating and
rewarding so that organization perform well. Stakeholder also affect strategy because they wields
power when they are not dependent on the firm, whereas organization is dependent upon them
which influence strategies.
The role of organization structure within Tesco is also crucial such that it helps to make
clear who can fit in a chain of command and assists to make decision making by an authority.
Further, Tesco follows hierarchy organization structure where all the roles and responsibilities
are delegate to each other and that is why, it helps to implement strategy in an effective manner.
On critically side, due to poor organization structure communication become slowed down and
also increases flexibility (Barbosa, Castañeda-Ayarza and Ferreira, 2020).
An effective process within an organization also allows an organization to begin
visualization the range of activities which in turn assists employees to make effective planning.
Through this, it can be analyzed that how the things are done and then provides focus for making

better things and identify the successful outcomes as well. On the critically note, it has been
identified that without creative organization process, business miss opportunity and allow the
problems to be continued for a longer term.
Strategic Management models (SMM)
There are many SMM which helps managers to conduct a real and iterative planning in
order to meet the defined aim of a company (Wang and et.al., 2021). The models includes
Balance scorecard, strategy map, Value chain analysis, SWOT, Pestle etc. Two of them are as
mentioned below:
SWOT analysis: It is used to determine internal environment factor of the company and includes
four elements that helps to examine how internal environment affected.
Strength:
 The leadership style opt by the company is consider as a strength for a firm because it
helps to make effective decisions. Despite pandemic, Tesco registered itself 10.5% growth in last months of September and
it also assists to boost the online sales (Anatolievna and Anatolievna, 2018). Company also makes efforts to implement innovation within a business that helps to
respond different adverse situation.
Weaknesses:
 Change in the leadership affected the overall performance and it has to boost quality
control measures.
 Food safety issues and does not meet the legal requirement affected the company in
negative manner.
Opportunities:
 Growth in the online grocery sales during pandemic assist to meet the company’s
requirement and satisfy customers
 Implement advance technology within a workplace create an opportunity for a firm to
increase sales like AI and Machine learning

 To grow, Tesco must analyze the countries which help recruit employees in order to
reduce unemployment rates.
Threats:
 Economic recession affects the Tesco performance in negative manner and that is why,
company must develop ways to overcome issue.
 Strong competition from others is also consider as a threat for Tesco.
Pestle analysis: The model assists to examine which external environment factor affect business
and how it creates negative/positive impact over the business performance.
Political factor: It deals with political stability of a company and a sudden increase in tax rates
affect performance of Tesco in negative manner (Jabbar and Hussein, 2017). Thus, there is a
need to have a stable political environment that assist to generate better outcomes.
Economic factor: Pandemic affect the business performance and economic stability in negative
manner. However, Tesco develop ways through which they can overcome from an issue and
increases sales as well. Company always keep in mind that pricing always influence the sales and
due to inflation rate, performance affected in adverse manner.
Social factor: This is deal with perception of people and planning of Tesco always facilitate the
needs of customers so that it does not affect the performance. Also, the needs and demand of
customers changes after pandemic and to keep the same in mind, it introduces organic products
in market at bulk.
Technological Factor: In modern time, technology assists business to improve the performance
and also generate the best outcome in terms of profit. Further, currently company uses different
artificial intelligence tools in order to generate the best outcomes and also enhance sales.
Legal factor: There is a need to comply with laws and legislation which includes Employment
Act, Equal opportunity act that assists in smooth functioning of a business (Wang and et.al.,
2021). Also, Tesco can generate the best outcomes by adhering with laws and legislation.

Environmental Factor: There is a need to comply with act that helps to improve the environment
of a country. Also, there is a need to explore the use of residual plastic which helps to generate
the best outcomes. Further, complying with sustainability act assists company to improve the
results.
CONCLUSION
By summing up above report, it has been concluded that strategic management plays an
important role in the success of a company and that is why, Tesco uses the principle and process
of strategy management which in turn assists to create positive impact upon business
performance. Also, by using SWOT analysis, company determine the ways through which
company generate the best outcomes and determine their roles. Further, Through Pestle
framework, company examine macro environment factor that affect the business performance.

REFERENCES
Books and Journals
Anatolievna, A. L. and Anatolievna, S. I., 2018. Strategic management of competitive
agribusiness organizations model.
International Journal of Advanced Studies. 8(2). pp.9-
21.
Barbosa, M., Castañeda-Ayarza, J. A. and Ferreira, D. H. L., 2020. Sustainable strategic
management (GES): Sustainability in small business.
Journal of cleaner production. 258.
p.120880.
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field.
Strategic Change. 28(6). pp.469-478.
Fuertes, G. and et.al., 2020. Conceptual framework for the strategic management: a literature
review—descriptive.
Journal of Engineering. 2020.
Jabbar, A. A. and Hussein, A. M., 2017. The role of leadership in strategic
management.
International Journal of Research-Granthaalayah. 5(5). pp.99-106.
Wang, Z. and et.al., 2021. Strategic management of product recovery and its environmental
impact.
International Journal of Production Research. 59(20). pp.6104-6124.
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