BUSINESS STRATEGY

Business Strategy



1Introduction1

1.1Mission Statement1

1.2Vision1

1.3Objectives2

1.4Goals2

1.5Core competences2

1.6Issues Involved in Strategic Planning2

1.7Planning Techniques at Tesco3

1.7.1BCG Matrix3

1.7.2Ansoff Matrix4

1.7.3Stakeholder Mapping5

2Formulation of a New Strategy6

2.1SWOT Analysis of Tesco6

2.2PESTEL Analysis6

2.3Significance of Stakeholder Analysis7

3Approaches to Strategy Evaluation and Selection8

3.1Alternative Strategies Relating to Substantive Growth, Limited Growth or Retrenchment8

3.1.1Market Entry8

3.1.2Substantive Growth8

3.1.3Limited Growth8

3.1.4Disinvestment8

3.2Growth by Acquisition8

4Implementation of a Chosen Strategy9

4.1Conversion of Strategic Plans into Reality9

4.2Resource Requirements10

4.3TimeLine for the Implementation of Acquisition Strategy10

References11

Business Strategy

Introduction

The company chosen for this assignment of strategic analysis is Tesco. Tesco PLC is a food and grocery retailer, headquartered in Hertfordshire, UK. Being the largest retailer in the UK, the company dominates the food and grocery market of UK, accounting for nearly a third of all grocery sales. Through various store formats, the company operates its retail business that ranges from supersized hypermarkets to small convenience stores. In the food and grocery market of UK, Tesco has been the leader for change, introducing such initiatives like online retailing, self-checkout and 24 hour shopping. The operations of company are primarily carried out in Europe and Asia. On an average, it offers employment opportunities to 519,671 people in FY2012.

Mission Statement

A mission of a company explains what the company does. A mission statement of a company has four elements: a statement of the raison d'être of company- mission, some future desired state- vision, key value and major goals (Hill & Jones, 2009, p. 14).

The mission statement of Tesco is "create value for customers to earn their lifetime loyalty" (www.tescocustomerservice-careers.com/).

Tesco's mission is to generate worth for consumers to gain their loyalty for the life time. Tesco's success is reliant on the customers and the people, the customers who do the shopping and people who are working with them. Customers are likely to return if they like what Tesco is offering them, and shop again with them. If the team finds what Tesco reward them, team would work more hard to help customers.

Vision

The vision of a company articulates what the company would like to attain (Hill & Jones, 2009, p. 15).

The vision of Tesco is focused on the values that should be received by their customers, the communities they are serving, their staff and shareholders. Furthermore, Tesco wants to be an innovative and modern company who wants to win the customer trust through their skills. Tesco want to diversify their business and want to remain a growth company by offering their services internationally. They want to be highly valued business across the globe.

The vision of Tesco is to be most highly valued by the customers served by them, the communities wherein they operate, their loyal and committed staff and shareholders; Tesco wants to be a growth, modern and innovative company; win the local market through their skills and applying these skills on a global level.

Objectives

Organizational objectives can be defined as the overall purpose, goals, and mission of an organisation that have been developed by its management and passed on to its employees (www.businessdictionary.com).

Goals

A corporate strategic plan's initial objective is to clearly identify goals of company and strategise a ...