SG6010 - Analyzing Tesco's Strategy and Design in Global Context

This report provides a comprehensive analysis of Tesco's strategy and design in an international context. It defines strategy from different perspectives, examines Tesco's current strategy through its mission statement, values, and future plans, and assesses its internal environment using models like Resource Based View. The report also explains the influence of Brexit and COVID-19 on Tesco's tactics, justifies the factors influencing the potential success of its supermarket strategy, and offers recommendations for adapting to these challenges. Furthermore, it includes a discussion of the benefits and limitations of external analysis tools like Porter’s value chain, RBV, and Business Model Canvas, concluding with key insights and references. Desklib provides access to this and other solved assignments.

SG6010 Strategy and
design in an international
context Group
presentation

TABLE OF CONTENT
 INTRODUCTION
 Defining Strategy In Different Prospective
 Explanation Of Current Strategy Of Supermarket
 Assessment Of Internal Environment Analysis Of Tesco
 Explaining how Br-exit and COVID have influence TESCO tactic
 Using overall analysis to justify what influences potential success of supermarket strategy
 Providing recommendations on how TESCO can adapt to Br-exit and COVID along with next steps for their strategy
 Including benefits and limitations of external analysis
 CONCLUSION
 REFERENCES

INTRODUCTION
 Supermarket is a self-service shop which offers values of variety of food, beverages
and household products which organizes into sections of various kind of stores
which are larger and has wider selection than any normal kind of store.
 In this project the chosen organization is Tesco which is UK largest retail
supermarket chain, it deals with all kinds of products.
 In this project the strategy of the supermarket retailer will be discussed chosen from
one of the four strategy of lenses.
 In this project the current strategy of the supermarket has been defined. This project
will provide explanation to the mission statement, values, corporate strategy and
annual reports which will look into the upcoming years.

DEFINING STRATEGY IN DIFFERENT
PROSPECTIVES
 Strategy can be explained from two different prospective which has been
chosen from the four strategic lenses.
Strategy as a Design :
 This prospective of strategy suggests that strategy develop can be said as
local process which forces the constraints in the organization for being
weighted carefully through analytic and evaluative techniques for the
establishments of the clear strategy of direction.
 It is the top to down approach of strategic decision-making which takes no
input from the management of being involved in the day to day operations.

EXPLANATION OF CURRENT
STRATEGY OF SUPERMARKET
 For understanding the current strategy of supermarket the development
there is a need to look at the following,
Mission Statement :
 Tesco has the mission of being at the top of the supermarket
industry with a simplified mission of being the champion for the
customers.
 Thus, their core purpose is to serve the customers every single day
which they are able to do by having all the daily products in their
stores.
 This is the reason why all the activities of this supermarket is customer

CONTINUE..
Future plans :
 Tesco in the upcoming years is looking forwards to increase it sales of
meat alternative by 300% in 2025.
 This is done because the organization has formed the collaboration with
WWF which has helped it in the development of sustainability measures
which can positively import the environment and also the food
production.
 Apart from this Tesco aim to be at the top of the retail supermarket by
providing good quality of services and products to the customers at
reasonable prices which are cheaper than its competitors

ASSESSMENT OF INTERNAL
ENVIRONMENT ANALYSIS OF TESCO
 For the internal analysis of Tesco's environment can be understood with various models
such as,
Resource Based View :
 This theory of the organization suggests that firms possess resources subset of
which enable the organization for the achievement of the competitive advantage.
 The success of Tesco has also been due to the use of the different kinds of resources
which the business has used. Tangible assets for Tesco are all the 4613 supermarkets
which it owns.
 Intangible assets for this organization is the brand value which it has been able to
develop with its operation for the given years.

Explaining how Br-exit and COVID have influence
TESCO tactic
 Both external factors have influenced TESCO, differentiation, cost leadership and niche
tactics in negative manner.
 For example, due to Br-exit, firm may unable to sell its products across UK boundaries,
which may lead to decrease its sales and profitability.

Using overall analysis to justify what influences potential success of
supermarket strategy
 Digital marketing platforms
 Social factors
 Environmental factor

Providing recommendations on how TESCO can adapt to
Br-exit and COVID along with next steps for their strategy
 In the world of business there are different types of methods strategies and approaches
are available that Tesco may take into its consideration to adopt Brexit in Covid along
with next steps for their strategy.

Including benefits and limitations of external analysis
Strategy concepts Strengths Limitations
Porter’s value chain The key strength of this model is that it
encompasses different types of strategies, which
TESCO may utilize according to business growth
requirements and success criteria. It may provide
many benefits to company when it may chose and
use specific or all.
The main drawback of this model is that TESCO’s
overall mission and tactic may get lost when
operations are break down into fine divisions.
RBV Resource based view model may provide
organization chance to comprehend real drivers of
business performance, which play vital role in
growth and success of venture. It is not that easy for
a company to do so.
The worst thing about this concept is that it may do
not have managerial implications. It may also cover
too limited strategic applicability, which may put
negative impact on management expectations and
desire outcomes that they tend to obtain.
BMC Business model canvas is another strategic concept,
that TESCO and its management may take into their
consideration, as it covers key beneficial aspects.
For example, it may drive management attention to
quickly and effectively defines a business concept.
This model may do not drive the attention of
manager towards taking important strategies into
their consideration. Business model canvas, may
not in right order and create complications. It may
do not acknowledge the firm’s role within its
ecosystem.

CONCLUSION
 From the above project it can be concluded that strategy for an
organization like Tesco is very essential for reaching its objectives.
 This project explains the definition of strategy in different
prospective.
 It provides analyzation of the current strategy for the business which
will take a deep explanation of the strategy which involves mission
statement, values, corporate strategy, annual reports and also the
future plans of the organization.
 It also analyses the internal environment of the organization with the
application of different models.