Tesco's Strategic Planning: Theories, Concepts, and Models Review

This presentation provides an overview of Tesco's business strategy, highlighting the theories, models, and concepts that support its operations. It discusses various strategic planning approaches, including cost and price leadership, and Bowman's strategy clock. The presentation outlines a strategy management plan aimed at enhancing sales and profitability, focusing on objectives such as increasing profit by 20% and expanding market share through organic food offerings. The marketing mix elements are examined, emphasizing product innovation, pricing strategies, placement, and promotion through social media. The implementation plan involves market analysis, employee skill development, and customer attraction. The conclusion emphasizes the impact of internal and external factors on the company's functioning and Tesco's ability to build a strong brand image and enhance profitability through differentiated products and services. Desklib provides access to similar business strategy documents and past papers for students.

Business strategy

INTRODUCTION
 Business strategy means the combination of the decision taken and the actions which are
performed by the business to achieve its goals and establish its strong position in the
competitive world.
 In this report TESCO considered as the organisation. This company was founded in 1919
by Jack Cohen and is the biggest grocery retailer in UK dealing with diversified range of
products and market.
 This presentation is about the business strategy where in various types of strategies can be
used in operational, tactical or strategic role in the organisation and gain knowledge about
the theories, models and concepts which supports the working of the organisation.

Range of theories, concept and models for strategies
planning of organisation
Strategies planning is a process of documentation of company objectives,
mission, vision and values, action plan and long term goals to be
achieved by company. Various theories, concept and models for
strategies planning of organisation are as follows:
 Cost and price leadership strategies: In such concept company
planned to gain competitive advantages by reducing cost and price of
products and services to attract large numbers of customers. Thus,
such company provide qualitative product at reasonable rate to
differentiate itself from other competitors in the industry.

CONTINUE…
Extended Model of Bowman's strategy clock
 Company by using this concept form strategy that helps in gaining competitive position
thus there are two dimension: Price and perceived value.
 Low price and Low value Added: This stage is not very competitive position as
company is provided low quality product at low rates and customers likes to pay little
extra for more quality products.
 Low price: Company by bring economic of scale and minimizing waste is able to gain
competitive advantages in the market by offering products at low price.
 Hybrid: It is effective positioning strategy as in it company provide differentiate and
unique products at low price to customers.

Strategy Management Plan
Aim: To enhance sales and profitability of company.
Objectives:
 To increase profit and sales of company by 20% in 2020.
 To expand its market share by launching organic food in product
range till 2020.
Strategies:
 To conduct research of new market.
 To train and develop skill of employees for effective
performance.
 To offers qualitative products and services to customers.

CONTINUE…
Marketing Mix :
 Product: Company is planning to launch organic food to satisfy needs of customers.
 Price: Company is planning to charge higher price for its product due to strong brand image and quality of products.
 Place: Tesco has many stores located at street areas and malls to attract customers.
Promotion: Social media is used by company to promote its product to large number of audience within limited time
and cost.
Implementation Plan:
 To execute plan by effectively analysing market share, customer preference.
 By enhancing knowledge and skills of employees to perform their work effectively.
 To attract large number of customer through social media and offering qualitative services and products to customers.

CONCLUSION
 From the presentation it can be concluded that internal and external factors
of environment impact on functioning of company.
 Company by using its internal capabilities and strength can gain
competitive advantages in the market.
 It is also concluded that Tesco by offering differentiate products and
service is able to build strong brand image and enhance its profitability.

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