MANAGEMENT REPORT

Evaluation of company's strategies

Executive summary

In today's competitive environment, strategic management plays a vital role for organisation's success and future stability. Successful organisations are able to sustain and obtain its resources and capabilities which leads to competitive advantage, strategic management is referred to process of evaluating organisation resources, evaluating external an internal environment and developing strategies accordingly to sustain in a competitive environment with edge (Harrison & St John, 2009, pp.4).

Tesco is leading retailers in the world and, in UK it stands first in retailers business. Tesco has developed better strategies to outclass competitors. Furthermore, Tesco expanded itself in various geographical regions to develop various markets for its retail business. Tesco also diversified in different business units such as Tesco bank and mobile. Tesco offered a variety of product to its current and new markets. These all include according to Asnoff matrix and BCG growth share matrix. Tesco effectively developed all strategies which fits business perfectly.

Tesco should focus on new geographical markets for stronger sustainability and growth. Tesco should bring successful products launched in specific markets, to all markets in which Tesco is currently operating.

Table of Contents

Executive summaryii

Introduction1

Discussion1

TESCO Plc1

Business units2

Strategies2

Strategy evaluation3

Ansoff matrix3

Boston Consulting Group (BCG) matrix5

Critical evaluation7

Conclusion and recommendations8

Conclusion8

Recommendations9

References10

Evaluation of company's strategies

Introduction

In today's competitive environment, strategic management plays a vital role for organisation's success and future stability. Successful organisations are able to sustain and obtain its resources and capabilities which leads to competitive advantage, strategic management is referred to process of evaluating organisation resources, evaluating external an internal environment and developing strategies accordingly to sustain in a competitive environment with edge (Harrison & St John, 2009, pp.4).

(Hill & Jones, 2007, pp.6-7) Argues that strategies are not developed, under consideration of organisation. Managers develop strategies for their companies in order to retain customers and add potential customers from their competitors. And in this tough competition winner is the one, who implemented best strategy. This gives such organisations competitive advantage over their competitors. They further discussed the organisation may attain sustained competitive advantage by implementing strategies, which gives them above average profit.

Therefore, the organisations with better and profound strategies can have a distinction over their competitors.

Discussion

TESCO Plc

In 1919, TESCO was founded by Jack Cohen in East End of London, from small market stall. Now, TESCO operates globally in 14 countries with more than 500,000 employees (TESCO Plc, 2013a).

Business units

TESCO primarily operates in retail business in UK. However, TESCO expanded its business internationally to 14 countries and operating online and UK. TESCO also diversified business in the banking sector and mobile business with O2 in UK and Ireland (TESCO Mobile, 2013) & (TESCO Bank, 2013).

Strategies

TESCO has adopted different strategies in UK and globally to sustain a competitive edge over competitors. For UK, TESCO aimed to give customers the best shopping trip. To achieve this statement they believe that more staff will lead to better service. Also, they believe the better signage will also leads to customer satisfaction (Annual report, 2012, pp ...