MBA7013 Strategic Management: Tesco's Strategy & Application

This report provides an in-depth analysis of Tesco's strategic management, outlining its organizational context, key milestones, and the application of strategic management theories such as PESTLE and SWOT. It evaluates Tesco's strategies for maintaining competitive advantage, expanding into new markets, and adapting to consumer needs. The report also discusses strategic challenges faced by Tesco, including declining product quality and cultural differences in international markets. Furthermore, it reflects on the learnings from the analysis using the Gibbs reflective cycle model, providing a comprehensive overview of Tesco's strategic approaches and their implications for business success. Desklib provides access to similar past papers and solved assignments for students.

MBA7013 Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
2. Outlining organizational context and key milestones in its development...............................3
3. Evidence of engagement with literature with balanced critical evaluation of theoretical
concepts........................................................................................................................................4
4. Application of theory in the context of Tesco.........................................................................8
Reflective assessment for learnings ..........................................................................................11
Providing the set of conclusions................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Having the good strategic management helps in proper planning of various business and
ensures success the long run. Also, it helps various business to maintain the competitive
advantage and stand ahead in the competition. Moreover, the present report is based on Tesco
and will highlight it various strategies that are been used to ensure that more profits are learned
during the specific time-frame. Furthermore, the study will help in understand the benefits of
using various strategic business model and theories so that systematic growth might be promoted
over the years. Also, these models will be explained through providing various business
examples for better understanding. Moreover, certain arguments will also be presented in detail
so that more business are able to incorporate those strategies to become successful in the future.
Also, the significance of using the best strategy in expanding into new markets and knowing the
individual needs and preferences will also be covered in this report. Also, through such strategies
various small business have been able to survive and sustain n various market in most effective
manner. Lastly, the report will provide the summary in form of learning and will also reflect
through using the Gibbs reflective cycle model so that more clarity might be gained for the same
MAIN BODY
Outlining organizational context and key milestones in its development
Tesco is a British multinational groceries and general merchandise retailer which helps in
providing the customers the products and services as per their needs and requirements. Tesco has
diversified its areas which has helped in providing the concerns related to the market and the
needs and products which are diversified and these are – books, clothing, electronics and
furniture, software, financial services etc. Instead of expanding Tesco has diversified its stores
and this has managed and created value for the products and services which are in concern are
related to how effectively and in appropriate manner the company has expanded its stores in
diversified manner at large scale (Joy, 2018).
The brand has released new products which are in concern and is creating aspects which
are in consideration as to how effectively the expansion of the products with variety is being
signified and this helps in explaining concerns which are related to creating awareness among the
customers through the advancements in the products and services. There is also selling of bio –

products which has been creating value for the advancements in the aspect of creating value and
concerns at large scale.
Evidence of engagement with literature with balanced critical evaluation of theoretical concepts
According to Brannen and et.al., (2020), Tesco is the company which is well known all
over the world and this has been analysed from the perspective of providing and making
available the key concerns and aspects which are denoted and are addressed as the major key
concern to the growth and development of the company. The company is channelizing and
keeping the major concerns related to the aspects of keeping in view point that key
developmental areas are yet to be discovered which are able to contribute to the development at
large scale. Tesco has in – house Tesco brands such as Tesco loves baby, F&F Clothing, Tesco
everyday value etc. The company has various ways in which they are reaching customers at large
scale and are providing the concerns which are adding value and output to the company.
As per Alam and Raut-Roy, (2019), It is the goal of Tesco to ensure that the company is
able to create value and is fulfilling the needs and requirements of the customers at large scale. In
UK, Tesco serves 66 shoppers every second and this helps in providing concerns which are
related to how effectively and in appropriate manner there are advantages which are being
provided to the customer at large scale. There are different discounts, sales and other benefits
which are provided to shopper and this helps in providing concerns which are analysed and are
integrated in the manner of concern which are related to aspects of how effectively and in
appropriate manner the company is concerned of the growth and development at large scale.
There are aspects which helps in providing the scale to the business and concerns effectively the
growth and development at large scale.
As stated by Rosnizam and et.al., (2020), It is the goal of the company that how each of
the customers is provided the aspects of growth and development at large scale. The company
ensures that how effectively the services and products are being provided to the customers with
development of the brand and reputation at large scale. The operations within UK are major in
the group and this helps in providing concerns related to effectively undertaking the services by
the company at large scale. The company is able to analyse and identify the key concerns for the
development within the operations which Tesco is focusing to. The Tesco's organizational
strategy is concerned with expanding the combination of acquisitions of new stores, retail
services and adapting to the needs of the consumers at large scale. The main aim of Tesco is

providing adequate services not just in UK but within different other countries for the aspects
and concerns which are related to how effectively and in appropriate manner there are concerns
of engaging with the customers appropriately. This helps in providing the concerns related to the
development of the new products within the company and the operations which are being
undertaken within the company at large scale. There are aspects as to how effectively and in
appropriate manner there are concerns related to being addressing and knowing that there is
diverse business culture which the company is providing its employees at large scale.
As denoted by James and Cooper, (2018), Tesco's focus is the manner in which the
customers are engaging the concerns and are providing the possibilities of how effectively there
is manner in which activities and operations are being created and the strategies are fulfilled in
effective manner at large scale. There are organization key strategic challenges which are being
identified and are concerned at large scale. The strategic key challenges are described as follows
– Tesco is facing issues such as decrease in the quality of the products, failure to understand the
trends and culture differences in other countries at large scale, increase in staff turnover, decrease
in the market share etc. There are concerns which are related to effectively growing to the scales
of providing the company in appropriate manner and this is helping to analyse key issues and
problems which the company is facing at large scale.
According to Rabetino, Kohtamäki and Federico, (2021) there are various strategic
management theories that are been used within the big organization so that suitable competitive
advantage might be gained in proper manner in various target markets. Furthermore, one of
model that is used in this context is PESTLE analysis where company is able to analyse all the
external factors that are impacting the business on large scale. Also, through using this model the
firm is able to have the wider understanding of the external environment and also helps in
development of the strategic thinking on the large scale. Furthermore, PESTLE analysis will help
in developing the clear strategy is future that will further ensure that there is no wastage of the
human and materials resources. For instance : Through conducting such type of analysis Tesco
had been able to develop and introduce various products in the market according external
environment business changes. Also, it can be said that such factors have allowed Tesco to
manage the cost, prices and profits in best of manner without affecting working capacity of the
members in negative manner. Furthermore, PESTLE analysis helps in deeper understanding of
business and avoid the company from several threats to making them aware in advance. For

example: Tesco through conduct of this analysis is able to analyse the high demand of halal meat
in Muslim countries and thus made it available in it various stores to increase the business.
Moreover, Ketchen Jr and Craighead, (2020) stated that strategic management models
helps the business in exploiting various opportunities in due course of time so that based on that
certain actions than might be taken on time. Also, through having knowledge of various external
factors any company would be able to guide it employees and itself to move in the right direction
and position itself among the rest of the competitors. Moreover, the validity of the existing
products and services might also be known that would further help the company in developing or
introducing the new product line in the target market. Also, it is cost effective method and would
be easily adopted even by the small business that are trying hard to remain competitive in the
long run. Thus, PESTLE analysis would not only help the business in identifying the uncertain
threats within the business but it will also help in bringing the correct information from the
market so that right changes might be made on time. However, it is required that this analysis is
done in proper manner by well qualified employees or appointed team within the firm so that
chances of errors are very less and accurate results are been collected for the future. For
example: Tesco uses this analysis whenever it feels like market conditions are not good or either
new products have to be launched in the market so that more profits are generated within the
workplace. Also, Tesco uses this analysis in workforce planning so that it is able to hire, retain
and focus on the area of the development and develop the best strategy for future actions and
running of the business.
According to Bogers, Chesbrough, Heaton and Teece, (2019) another strategic model that
is mostly used within business is the SWOT analysis that helps in understanding the business in
better manner. Also, through this analysis the firm is able to analyse all the internal factors that
affects the working operations of the business. Furthermore, through this analysis various
business would be able to take the advantage of various strengths so that greater gaols are
achieved in the future. For instance: Tesco the biggest strength analysed through such model is
that it is geographically diversified that would help in earning more revenues in the future. Also,
it has leading market share as it the greatest strength that would help in developing complex
product or services in most efficient manner. Moreover, it uses the superior technology that is
also the positive point for Tesco in covering the large market area and employing the best of

human resources that are able to handle various digital technologies at the workplace in most
efficient manner.
Further Cescon, Costantini and Grassetti, (2019) stated that SWOT analysis helps in the
developing various strategies and goals. It also helps small or big business to highlight all it
weakness so that company had the chance of reversing and overcoming them in the best possible
manner. For example; in Tesco one of weakness is that low cost strategy that might be weakness
to the firm as it would force the company to produce the less priced valuable goods in the market
even in times like pandemic where the revenues are minimum. Furthermore, it can be said that
Tesco had claimed to conduct the unfair business practices at some point of time and as such
type of practices only reduces the brand image in the long run. Thus, it is very crucial that such
weakness are not repeated in the future through devising the best possible solutions so that brand
positioning is done in systematic manner in various target markets. Also, weakness might be
turned into opportunities if proper cation plan are develop by the business and also extensive
market research is been conducted to overcome the barriers.
Furthermore, Demir, (2018) stated that SWOT analysis also consist of various factors that
falls into the opportunities side and hence it is duty of team to identify all these factors in clear
manner so that greater success is ensured in due course of time. Also, these opportunities needed
to be structured in the best way so that one that have the chances of providing the highest
revenues is kept on the top priority. For example : Tesco is having the opportunity to build up
strategic alliances with other brands that will help it to survive in tough and challenging times
like Covid. Also, it is having the opportunity to open the store in new emerging markets so that
more customers might be easily attracted towards the business. However, Certo and et.al., (2020)
argued that it is essential while using SWOT analysis that business kept in mind the current and
past performances and team had to conduct it without any baisness so that right results are
generated.
Moreover, Tonelli and Cristoni, (2018) Stated that under the SWOT analysis threats are
in last section that is fully analysed by any company so that uncertain losses might be minimized.
Also, through all threats identification the company would be able to set certain controlling
measures so that the same might be prevented in best of manner. For example: Tesco would face
badly through new Brexit reforms that have higher chances of making the firm lose various
European markets. Also, in current time the rising cost of various raw materials would create

negative impact on the working of the firm and would force the business to increase the prices of
various goods that would impact the current policy of Tesco in wrong manner. Also, in context
of Tesco there are supply chain issues there are also threats for the business as any disruption in
supply chain would not make the goods available to large number of people.
Furthermore,Dalisova, Sharopatova and Karaseva, (2020) stated that SWOT analysis is good as
it allows the company in delivering the quality services and goods and helps in effective brand
engagement with the customers. Moreover, such analysis helps the company in building good
relationship with customers so that more new products might launched in the market and it will
ensure the best success in short run.
According to Ongaro and Ferlie, (2020)another strategic model that is often used by the
company to develop the best strategies for the business is porter five forces model that helps in
estimating the current competition in the industry and based on that allows the firm to develop
various business goals and policies for the future. Moreover, this model helps organization to
identify the current competitors that hold the power in the industry so based on that best
decisions might be developed in the future. For instance: Tesco uses this model to develop
corporate strategy and vision through looking at all aspects of the business and gathering the
valuable information so that work could be carried out in most systematic manner without any
kind of confusion. Also, nowadays with use of computer and information systems companies are
able to gather the data in the least time and also able to take corrective actions on the area of
improvement.
Thus, it can be said that Tesco had been able to measure the performances through all
these models and theories. Furthermore, through applying all these model it able to develop the
framework for the decision-making and able to anticipate the future to some extent in the best
possible manner.
Application of theory in the context of Tesco
On the basis of above literature, it can be said that as compared to Sainsbury’s and other
retailers, Tesco is doing better and effective one. It is found from comparative marketing analysis
that pricing strategy of Tesco is better than Sainsbury’s as it offers its products and services at
different pricing strategy. People from backgrounds can buy products and services of Tesco and
it is the main reasons of its success and improved performance as well.

In regard to promotional strategy, it is found that Tesco makes use of modified style of
direct marketing and Sainsbury’s conducts limited level of direct marketing. Tesco’s loyalty
cards are being categorized to different target segments such as: Tesco toddler club, Tesco kids
club, healthy living club and world of wine club. Whereas, Sainsbury’s make use of Nector
loyalty cards that helps out Sainsbury’s in collecting important information (Rosnizam and et.al.,
2020). So, on the basis of this, it can be said that Tesco focuses on all age group of customers
and Sainsbury’s focused on only specific group of people. On the basis of this comparison and
analysis, it can clearly be said that Tesco is diverse retailer as compared to others.
On the other hand, some issues have also considered that Tesco as well as other retailers are
facing. In this context, it is known that Tesco is facing problems regarding quality of products,
failure in understanding trends as well as cultural differences. Staff turnover and decrease in
market share are some other problems. On the basis of this, it can be said that these problems can
affect overall organizational performance and sales as well.
It can snatch competitive and business expansion opportunities. Other retailers that are
also striving hard can take its position and it may have to strive hard for being in the competition.
Sainsbury’s whereas, facing problems related to staff turnover, finding as well as adapting the
right technological solution and satisfying changing needs of customers. On the basis of this
comparison and discussion of literature, it can be said that retailers of the UK are striving hard in
coping up with changing needs of customers. Satisfying customers’ needs have become difficult
and it can affect its image. So, in this regard, it can be said that Tesco needs to focus on changing
its recruitment strategy so that it can hire talented employees (Dakhli and et.al., 2019). It is
believed that skilled employees bring innovation within business and it can help out companies
in taking competitive advantage. Creativity and innovation keys of organizational success and
Tesco can make its products innovative when it focuses on hiring skilled employees. So, on the
basis of literature review, it can be said that Covid-19 has affected Tesco as well as other
retailers to the great extent but Tesco has developed strategies for decreasing negative impacts of
it. It can also be said that as compared to other retailers, Tesco has capability to solve critical
problems and improving decision.
Applying the system management theory in Tesco, this theory mainly helps in planning
and managing the organisation. With applying this theory in Tesco helps in forming the company
with joining the sub systems for achieving the business objectives. As this theory is mainly

applied for forming and developing the company operations. As developing and forming the
organisation is consisting of the sub systems while linking and fulfilling the company operation
and objectives. For operating and achieving success in the dynamic market operations linking all
the sub systems as of production, marketing, finance and accounting systems. As the system in
the company is affected by the internal and the external factors operating outside and inside the
business operations. With analysing the company internal and external environment helps in
understanding about the company is affected by various internal forces which is responding to
the external elements. With applying this theory helps in deriving and expanding about the
company and its operations which is expansed globally is impacted by the internal and various
external forces (Management Theories, 2022). As the production and the all the departments of
the company impacts all the systems for example: the production and the manufacturing systems
aids in impacting the sales and the marketing operations for promoting the products of Tesco.
Also, the supplies and the raw material which is processes and convert into the finished products
impacts the business operations and the other systems. With this theory helps In achieving
effectiveness with focusing on all the performance for achieving growth of the business.
Further more, for achieving success it is necessary for interrelate all the sub systems in
the Tesco. This approach mainly helps in forming and managing the company strategically for
achieving the business success by forming the appropriate strategy for interrelating and
minimizing the internal and external forces impacts on different sub systems. As linking the
purchasing departments with the production and the manufacturing processes aid in resulting in
the company growth and better performance. The system approach to management helps in
focusing on achieving the organizational goals by linking all the operational processes. In Tesco
for strategically managing the company, with using this theory helps in planning into more
strategic manner(). This helps in managing the changes and adopting the new processes. With
adopting this helps in managing change in positive manner. While Working with collaborating
all the systems in the company helps in achieving objectives and attaining growth by linking in
the internal environment. The sub systems mainly aims in including by coordinating all the
inputs as for processing the raw materials with coordinating with using all the technologies used
in processing for manufacturing the products being produced by Tesco. Also, coordinating the
transformational process for achieving the best outputs results for in ever-increasing the sales
and achieving growth of the company for achieving better performance. Further more, Working

with employing all potential personnel for achieving the growth. The human resources working
in Tesco helps in achieving the best alternative and ascertaining the sales objectives for
achieving revenue and growth.
More over, with this theory helps in managing strategically with ever-increasing the
adaptability for changing the environment. Adapting the changes easily helps in allocating and
planning into better manner which aid in managing the human resources according to the skills
and the potential abilities. Further more, it aid in understanding the needs of the company by
adopting this theory assist the Tesco in understanding the internal needs for coordinating all the
sub systems. As the inputs in the company is mainly concerning with the employees, the staff
personnels, suppliers, and the rules and laws ascertaining of the government. In the transforming
processes it mainly includes the production department, human resources, marketing and the
financial operations of Tesco. Further mainly the external variables mainly includes the outputs
which is achieved with processing the raw materials into the finished products. Thus, by
adopting and employing this system theory helps in achieving the goals of the business easily. As
by adopting this helps in functioning optimally by working with the different system and sub
systems for achieving the Tesco objectives as to increase sales by optimizing all the cost and
efforts with working in collaborating way.
Reflective assessment for learnings
With using the Gibbs reflective model mainly helps demonstrating my feeling with
describing the experiences assigned while completing this project. With using this model mainly
helps in describing about 6 stages.
Describing the event as In this stage as while developing this project report, while Working and
strategically managing for researching on developing this report it helped me in giving positive
experience while designing the project report of the strategical management of Tesco. As starting
with evaluating the key issues faced by company with setting the strategical priority (Gibbs'
Reflective Cycle,2022). Also with doing swot and pestle framework analysis helped in evaluating
the company internal and external environment effectively.
Further I was very excited to present this report and analyse the strategical management
of the Tesco. This helped in better understanding and realizing the issues faced by the company.
I was working with very certain conditions which helped me in motivating and Working better
and hard for researching hard about developing this project report. Lastly I was feeling satisfied

with completing this report by successfully analysing the internal, external and the competitive
environment. As all the working were worked well and with the good researching skills helped
me in attaining good quality of work for strategically managing and analysing Tesco
environment.
With the initial starting of the project report all the things went well for analysing the
strategic challenges of Tesco with using the swot and pestle frame workings. The planned
writing about this project report with proper structuring has helped in better Working and
completing the whole project report. Further while working and completing this project report
has helped me in improving and taking various actions for developing the project report in detail
about strategically analysing the management of the companies in future.
Providing the set of conclusions
From the overall report it is summarized that Tesco had been successful in operating on
the large scale though developing strategies that are differentiated and unique from its
competitors. Also, all these strategies are made with complete analysis so that better results are
generated and work might be carried out in most systematic manner. Furthermore, through
conducting various analysis and using strategic models it has been successful in covering large
market areas and also expand it online operations across various region. Moreover, through
proper strategic management the firm is able to become more proactive rather than reactive so
that best of future might be made (Strategic Management: Definition, Purpose and Example,
2022). Also, it might be concluded that Tesco have the effective employee teams that are able to
deliver the best quality results in the short span. Also, through such strong team it had ben able to
complete all the complex task and face all the challenges in positive manner. Moreover,
strategic management business have allowed the retail business like Tesco to understand the
rapidly changing business environment and help in developing clear vision for the future.
Moreover, from the report it had been summarized that strategies of any organization do
not remain same over the period but it keeps on changing from time to time depending upon the
internal and external business situations. Also, strategies helps in increasing the managerial
awareness and allowed the firm to better prepare for all the future challenges. Moreover,
strategic management helps in promoting sustainable growth through focusing on manageable
growth (Stoyanova and et.al., 2019). Furthermore, strategic management is done within the
Tesco through ensuring that there is proper planning, improving, execution and monitoring phase