Strategic Management Analysis Report: Tesco PLC Case Study

This report provides a strategic analysis of Tesco PLC, a leading global retailer. It begins with an introduction to Tesco's market position and strategic focus, followed by an examination of its past strategic direction, including product range expansion and market exploration. The report then delves into frameworks for strategic analysis, such as SWOT and PESTLE, evaluating Tesco's competitive advantages against rivals like ASDA and Sainsbury's, and considering industry scenarios like the growth of e-commerce. The alignment of Tesco's mission and vision with market demands is assessed, along with its strategic capabilities, including pricing, innovation, and relationship development. Finally, the report proposes potential strategies for defending Tesco's core business, such as digital marketing, improved distribution, and progressive merchandise, and provides an analysis and evaluation of these recommendations, concluding with the importance of strategic planning for business success. The report emphasizes the significance of employee training, targeted advertising, and seizing market opportunities for Tesco's continued growth.

Strategic Management

INTRODUCTION
 Tesco PLC is known for its
wide spread range of feasible
grocery products.
 Being rated as third largest
retailer in the world, Tesco
has been ruling this grocery
market with its simple yet
exclusive management
strategies.

TASK 1: Strategic direction being followed by Tesco
in past
 Company has been extending its product range frequently
since its establishment.
 Continuous analysis of business environment both externally
and internally.
 Expansion strategies are always active. Markets are explored
and conquered with correct strategic planning.

Development of strategic thinking
Following developments have been experienced by the
organisation since last five years:
 International Expansion
 New Product range excluding food products
 Retail store developments

TASK 2: Frameworks for strategic analysis
Appropriate frameworks for
strategic analysis are
given below:
 SWOT
 PESTLE

Continued...

Company's competitive advantage among its
competitors
Tesco's direct competitors are:
 ASDA
 Sainsbury's
 Morrison's

Continued...
 Competitive advantage refers to a unique situation or
position in market where threats from substitution are
negligible.
 The company has highest market share of about 25%.
 Direct competitors are fierce but company has managed to
develop stability with introduction of a unique scheme of
24 hours shopping.

Probable industry scenarios
 Growth of e-commerce or digital shopping portals has
emerged in last few years.
 Existence of highly competitive firms is threatening to
amount of sales in UK markets.
 Low pricing strategy of ASDA and Sainsbury.

TASK 3: Alignment of mission and vision
with market demands
 Mission: Tesco wants to earn lifetime loyalty from its
customers by giving valuable goods and services. They will
also ensure that safety and quality standards are well
maintained
 Vision: To become the most valued business by serving best
to customers in communities Tesco operates.

Strategic capabilities of Tesco
Following are the components of Tesco's strategic capabilities:
 Price: Every category of product has to be priced in
appropriate manner so that buyers don't feel exploited.
 Innovation: It is predominant in all strategies that have been
designed till date for development of the company.

Continued...
 Relationship development: Customer demands and priorities
is the mission of Tesco.
 Human resource training: Entire product cycle is dependent
on skills and talents of human resource. Their training is a
must for sustainable development.