Strategic Business Plan Analysis and Recommendations for TESCO

This report provides a comprehensive analysis of TESCO's business strategy, commencing with an examination of its vision, mission, objectives, and core competencies. It delves into the factors crucial for formulating strategic plans and evaluates the effectiveness of techniques like the BCG and PIMS matrices. The report then conducts internal and environmental audits, utilizing SWOT analysis and Porter's Five Forces model to assess TESCO's strategic position. It emphasizes the significance of stakeholder analysis in strategy formulation and proposes a new strategy. Furthermore, it analyzes alternative strategies, justifies strategy selection, and assesses the roles and responsibilities of personnel in strategy implementation. Finally, it examines the estimated resource requirements and the use of SMART targets for achieving strategic objectives. The report aims to provide insights into TESCO's strategic planning and offer recommendations for future business actions.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Assessment of TESCO's vision, mission, objectives, goals and core competencies........3
1.2 Factors that have to considered when formulating strategic plans...................................4
1.3 Evaluate the effectiveness of two techniques used by TESCO in developing strategic
business plans.........................................................................................................................5
TASK 2............................................................................................................................................6
2.1 Analyse the strategic position of TESCO by carrying an internal audit..........................6
2.2 Carry out an environmental audit for TESCO..................................................................7
2.3 Assess the significance of stakeholder analysis while formulating new strategy............8
2.4 Presentation of new strategy for TESCO.........................................................................8
3.1 Analyse appropriateness of alternative strategies ...........................................................9
3.2 Justify the selection of a strategy......................................................................................9
TASK 4..........................................................................................................................................10
4.1 Assess roles and responsibilities of personnel of implementing strategy......................10
4.2 Analysis of estimated resource requirement for implementing a new strategy..............10
4.3 How use of SMART targets can be contribute for achieving strategic objectives........11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is the framing of plans and methods by organisational system to carry
out operations in effective and efficient manner. This function is carried out by top level of
management as it is concerned with the functioning of overall business institution. All the plans
and policies which are formulated focused on enhancing productivity and efficiency of each and
every component of firm. This assignment underlines the case of TESCO company, it is amongst
the biggest retail industry operating in various countries all over the nation. It is known as
leading global brand and has set example for many industries. They have around 500000
employees in their business organisation. They have proper format of vision, mission, goals,
objectives which provide base to run business organisation. Therefore, it is essential for every
business to work upon proper strategy in order to reach set targets in particular time frame.
Managers play a very important role in this regard. This report include various factors that are
consider by formulating strategy in TESCO company in order to make business plans. On the
other hand environment and internal audit is also carried out by the company.
TASK 1
1.1 Assessment of TESCO's vision, mission, objectives, goals and core competencies
Every business organisation carry out their functions and operations in accordance to
objectives, vision, mission associated to that particular institution. It provide base for carrying
out their operations in smooth manner (Acquaah, 2013). It supply route on which every
personnel have to carry out their work. TESCO have clear and transparent aim on which they
carry out their actions. They believe that values is a key to success. It provide basis in decision
making process. They consider drawing proper plan of actions and setting targets for everyone to
attain final aims. They ensure satisfaction of needs and wants of each and every component that
includes customers, employees, clients. Strategic planning concentrates in achieving goals and
process expeditiously and effectively. The terminologies that are used in case of TESCO are
discussed below:
Mission: The core principle of TESCO company is to attain long term success in future. They
have focused strategy and clear mission to achieve their targets appropriately
The leading role of TESCO mission statement is mentioned below:

 The company is focusing on creating competitive advantage in market place.
 The core mission is “ We make What matters better, together.”
Vision:
 Their long term vision is to continuously adapt such strategies and practices in
accordance to changing world.
 They want to maintain their values in longer run.
Objectives:
 Their long term objective is to remain in top by being a responsible retailer.
 They aim to be a zero-carbon business by 2050.
Core competencies:
 They have formulated seven part strategy focusing on attaining its set goals for sustaining
in long run.
 TESCO pledged huge amount of capital to enhance shopping trip for their prospective
customers.
1.2 Factors that have to considered when formulating strategic plans
TESCO have to frame such strategic plans that enable them to achieve their vision,
mission long term objectives. Thus, it is necessary for organisational management to understand
the importance of various factors that present inside and outside the business (Astrachan, 2010).
It is important for them to examine advantages and disadvantages associated with them. Some
factors are mentioned below:
Impact of external environment: Business environment is dynamic in nature, which
keeps on changing with time. Hence, it become necessary for management of TESCO to study
influence of these elements. There are number of factors present outside the environment which
have direct or indirect impact on management of any business firm. Hence, environmental
scanning should be performed by managers.
Long Term Plans: Under this component of strategic planning, management have to
frame plans that focus on achieving final outcome of company. Plans should be clear and
accurate that guide every people in achieving them.

Consumer's interest: As company have to work in order to met the requirements of
customers. Hence, this factor helps in planning process so that final aims can be achieved. It is
very important to maintain a healthy relationship with their customers.
Competitor's strategy: Every company have to frame their actions while considering
policies of competitors. This is very important to keep in pace with this process.
Availability of Resources: Organisations work along with number of resources that are
in form of land, labour, human resources, capital. This become very indispensable to have proper
amount of such resources, they have to be properly connected to carry out set actions. There can
be possibility of scarcity of any one resources, it become difficult situation for the organisation
system (Bharadwaj, 2013).
1.3 Evaluate the effectiveness of two techniques used by TESCO in developing strategic
business plans
There are number of techniques and procedures that are adopted by organisation system
to evaluate the plans that are developed. These methods continuously help business firm to
succeed in their framed idea. This provide aid in maintaining strong relationship with the current
system including prospective clients. For this procedure company can allocate two techniques in
order to evolve business plan strategically:
BCG matrix: It is coined by Boston Consulting group in order to draw plans for longer term.
This matrix aims in adding high opportunity in market place. Under this matrix, there are four
areas classified, it is described below:
Dog: It is placed in lower phase of matrix signifying lower value of company's product.
The characteristics of these type of products is that they have low market share and growth.
Hence, it is essential for organisation to frame scheme to gain value.
Question Mark: The products under this category have distinct values but they have
high market growth in business market area. They contribute lesser market share. Products have
superior quality and identifiable attributes (Campbell, Edgar and Stonehouse, 2011).
Stars: This category have high market share and growth. They furnish high financial
gains and contribute large percentage of company's revenue.
Cash Cows: This category is considered poor as it does not have high growth rate but on
the other hand they helps organisation to enjoy sustainable market share.

TESCO can apply such matrix in evaluating their progress of business plans. There are
other matrix also known as PIMS matrix that also help them to study their aims that are fulfilling
their objectives or not.
PIMS matrix: Its full form is Profit impact of market strategy, as the name suggests it helps in
drawing those plans and strategy that focus on achieving high market growth and share. It also
aims in adding success in particular field of industry. They concentrates on maintaining
conducive relationship with prospective consumers. Their key elements involve improving
quality of products and services, augmenting market share at sustainable proportion (Gandolfi,
2010).
TASK 2
2.1 Analyse the strategic position of TESCO by carrying an internal audit
Tesco is among the biggest retail industry in UK and has established its competitive
position in market place. It was founded by Jack Cohen in 1919 in London. It is operated in
almost 12 countries all over the world. It gives huge competition to many companies involving in
this industry. To study the strategic position of company, SWOT analysis is carried down which
is mentioned below:
STRENGHTS WEAKNESSES
 It is among the top most leader in
retailing company.
 Established brand image in the market
area.
 Adoption of varied innovative aspects
in their working process.
 Their identifiable dealings that are
carried out world-wide that include
online shopping, joint venture process
etc.
 Downfall in financial performance due
to several reasons.
 Income scandal phase of 2015 leads to
diminishing of company image or
value.
 Staff members are not fully motivated
hence, posing problem for
organisational system.
OPPORTUNITIES THREATS

 They also excel in non -food retail
line,as it is beneficial to use already
established image of company.
 Increasing the efficiency and
effectualness of business strategy or
plans.
 Enlargement in market area in field of
digital entertainment by investing in
Blinkbox.
 Government rules and regulations
 Inflation and Deflation in economy
 Introduction of new methods or policy
in business world.
 A critical threat for TESCO is takeover
performed by Asda by Wal-Mart. It
give strong competition to this
company.
2.2 Carry out an environmental audit for TESCO
Environment audit refers to examining surrounding of business organisation that impact
their functioning in various ways. It is necessary for manager of TESCO company to study these
factors promptly so that business plans can be formulated in smooth manner. It is essential for
company to carry out environment audit process as it helps in determining areas that require
attention and special focus (Gollakota, 2010). It is than consider while making business plans for
the firm. TESCO perform this task of audit by adopting Porter's five force model which involves
five factors that has to be consider by company, it is mentioned below:
Threat of new Entrants: There are number of firms available that can cause threat to
established company. TESCO is not affected by these new entrants as they have high market
growth and share. They have expert team in research and development department that
continuously work upon quality of products.
Industry Rivalry: TESCO poses tuff competition for various organisations working in
same industry. It is directly linked with cost and prices of products. TESCO have distinctive
chain of management to render goods and services that are reached to final consumers in market
area.
Threat of Substitute: Competitors always pose difficulty for company, as they can face
large amount of competition from these business firms. Moreover, TESCO have first class
services that are granted to their prospective buyers. Customers can shift their choice from one
company to another, as there are substitutes available for them (Woodcock, 2011).

Bargaining power of Suppliers: There may be cases that big and established brands can
have direct impact on bargaining power of suppliers. Demand in market area have huge impact
on bargaining power.
Bargaining power of Buyers: There are number of alternatives available for consumers
to make choices out of it. TESCO can face problem associated with bargaining power of buyers.
2.3 Assess the significance of stakeholder analysis while formulating new strategy
Stakeholders are known as important part of any organisation because they significantly
contribute in their management and decision making process. Government also render enough
support to these organisations in order to increase business operations or actions. Mangers or
leaders play crucial and conspicuous role in this process. They make such procedures that help in
building healthy relationship with stakeholders. They have to take care on operation of business
and organisations so that competitive advantage can be built in effective mode.
Type A- Minimum Efforts: These type of actions influence set business policies and methods.
They aim in earning high financial gains (Jocovic, 2014 ).
Type B- Keep informed: They want to informed for each and every transaction but do not
possess that much ability to acquire next business level.
Type C- Remain satisfied: Customer satisfaction is very much required to remain in minds of
customers for longer period of time.
Type D- Effective players: They are considered key personnel for the company as they have to
draft such plan of actions and steps that bring necessary and sustainable changes in
organisational system.
2.4 Presentation of new strategy for TESCO
Formulated strategy concentrates on acquiring opportunities which are available in
market area. These aim in bringing high returns and growth for organisational system. TESCO
always make productive investment for their company and expands in areas where it has not
been established it. It is necessary for them to adopt innovative methods and process to develop
their goods and services in proper manner. It is their responsibility to carry out operations in
accordance to vision and mission of TESCO. These concepts or aspects helps in gaining higher
growth in limited time.

TASK 3
3.1 Analyse appropriateness of alternative strategies
TESCO have developed their goodwill at substantial level. They always try to full-fill
buyer's demand and helps in improving their quality of services in accordance to requirement or
needs in market. There are alternative strategy available that can be review by mangers and get
adopted by them finally. TESCO always build products and services of high quality and enables
to full fill needs and wants of clients. This company try to construct effective goodwill in market
place hence, they have to draw certain strategy or course of actions that are executed in all
system to achieve final outcomes.
Strategies Alternatives Statement
Entry to market strategy TESCO is well established
institution that have to frame
distinct type of strategies in
order to come up with new and
innovative methods to remain
among the top most firm in
retail industry.
Management need to
understand the requirement of
expanding in positiver way.
Hence, managers have to make
certain strategic process to
attain final growth (Tsamenyi,
2011).
Sustainable development TESCO have to consider to
improve their quality in
products and services in order
to remain in competition in
dynamic market place.
Company have to make proper
expenditure to establish their
strong image and hence, build
strong market image in
business world.
3.2 Justify the selection of a strategy
Justification can be made by taking into consideration the current image of TESCO
company. Strategy is basically focused on future plans that results in making policy and plans
that focus on achieving the final set targets in impressive and economical manner. It is important

for top level of management to look after the strategies that are formulated in system. Company
have to conduct market research before coming into concluding any process. Customers are
known as real kings of market place (Teece, 2010). Their tastes and preferences of customers
keeps on changing with time thus, it is essential to draft such strategy that meet their
requirements. The adopted strategy should be clear and transparent that helps every component
to work accordingly (Köseoglu, 2013).
TASK 4
4.1 Assess roles and responsibilities of personnel of implementing strategy
Making strategy is tuff job but implementing it in proper format is another big issue that
has to be resolved by personnels who are drafting such policies. There can be cases when
strategy is not render properly and does not give set results. To be a successful enterprise it is
important to implement strategy in correct manner. Number of personnel are involved in this
which is discussed:
Top level of management: they include key people which plays critical role by framing
such policies and procedures that guide overall organisational system to work on that particular
path. They are responsible for making strategic plans which focus on profitability and
productivity of organisation.
Middle level of management: it consists of line managers, leaders who make
implementation possible by guiding their team members to accomplish objectives of framed
strategy.
Employees or workers: They are concentrated on making thing happen in practical
nature. They execute work in accordance to the instructions and guidance. They work under
seniors who make them work properly (Martin and Rice, 2010).
4.2 Analysis of estimated resource requirement for implementing a new strategy
Every organisation have to work by combining efforts of various resources. These
resources can be in form of human, financial, employees and many more. It is very important to
make use of these resources properly as successful working of organisation take place because of
them. There are conditions where they have to make certain changes in accordance to latest

technology or procedure. Innovation is a concept which have to adopted by almost every firm to
excel in their expert area.
Executive formulate plan and policies to support and direct subordinates through which firm
goals and objectives are accomplished (Peteraf and Thompson, 2014). They require to take care
that adequate funds and resources are available so that business activities are taking place
properly. Manager need to make staff members competent that they complete tasks within
specified time frame. By implementing modern tools and techniques, so that products are
manufactured in better manner (Scholes, 2015).As a result, by framing strategies through which
superior of TESCO are able to enhance their system functionality and thereby help in growth of
enterprise. Firm size and profit, determine level of changes that can be made in system. Since,
large transformations require huge funds while small modification will not need much money.
Some resources required to implement strategy are mentioned below:
Human resource: In every firm employees play crucial role, as they carry out activities
through which strategies set by superior are attained. By informing workers about plan and
polices, they are able to direct them towards their duties assigned to them. In TESCO, manager
keep staff members dedicated by communicating strategies and taking opinion about changes.
Employees are important resources of any organisation as they execute all plans and policies that
are framed by organisation system. They are essential assets of any company (Montgomery,
2011).
Financial resources: Executive require to have adequate funds so that they are able to
acquire adequate resources. This help them to attain strategies properly, by making
transformations in system. Firm require money to implement modern techniques in system,
through which goods are produced properly. Finance is important asset of any business
institution as it is used to perform day to day transactions of business.
Time and rough materials: Superior require to take care that they have sufficient raw
material through which appropriate outcomes are achieved. By this they are able to deliver
products timely in accordance to customers requirement.
4.3 How use of SMART targets can be contribute for achieving strategic objectives
Peter Drucker, father of management propounded theories which business people can
apply in their organisation. Management by objectives and SMART are various concepts

developed by him. Executive formulate goals and objectives through which they direct superiors
to carry activities through which results are attained.
SMART is a concept which provide help and guidance to superior through which they are
able to formulate goals and objectives properly. Specific, measurable, achievable, relevant and
time bound are part of this term. As in context of TESCO, management uses this concept to
make their system function effectively are stated beneath: Specific: This specifies that goals should be simple, significant and sensible; so that
every person understands and work properly. The vision and Mission of organisation
should be specific in nature that provide proper thoughts to every employees. TESCO
frames proper and specific goals for their organisation. Measurable: This states that goals require to be such that superior is able to motivate
staff members. They should be framed that it is easily calculable and help in analysing
performance of workers. The aims should be measurable from the final final outcomes
which will be produced after implementing strategy (Martin, 2010). The goals that are
formulated should be measured in terms of quality and quantity. Achievable: Goals require to be such that superior are able to direct employees and make
them carry out tasks through which targets given to them are attained. TESCO make sure
that all goals and objectives should be practical and must be achieved in particular time
frame. Relevant: It is needed that goals are reasonable, realistic, result based and resourced; so
that employees perform activities and accomplish them within specified time frame.
 Time bound: Executive require to frame goals and specify duration so that staff members
complete tasks within deadlines. This help them to accomplish objectives timely. TESCO
make sure that plans are achieved in set time period.
CONCLUSION
From the above assignment the conclusion drawn is that business strategy is framed by
every organisation. These focus on making future of business effectively and efficiently. This
report emphasis on case of TESCO which is leading firm in retail sector. It also highlights on the
importance of environment and internal audit. There are number of business strategy that is
developed by organisation in reference to BCG matrix and PIMS model that should be properly

developed. This report also include several resources which have many responsibilities to carry
out these strategies. Vision, Mission is framed by every organisation on which whole
organisation works to achieve final set targets in given time frame.
REFERENCES
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