STRATEGIC MANAGEMENT

Strategic Management: Tesco PLC

Table of Contents

Strategic Management: Tesco PLCi

Company Background1

SWOT Analysis2

Strengths2

Weakness3

Opportunities3

Threats4

PESTEL Framework4

Political Factors4

Economical Factors5

Cultural Factors5

Technological factors6

Environmental Factors6

Blue Ocean Strategy8

Strategies Used by Tesco10

Further strategies required by Tesco12

Conclusion13

References15

Strategic Management: Tesco PLC

Company Background

Tesco PLC is a British multinational company dealing with grocery and general merchandise retail. Headquarter of company is in Cheshunt, United Kingdom. In terms of revenues it is the third largest retailer of the world. It is second largest in terms of profit after Wal-Mart. It is currently operating in 14 countries of the world including Asia, Europe and North America. It is grocery market leader of United Kingdom, Malaysia, the republic of Ireland and Thailand. Tesco was founded in0 year 1919 by Jack Cohen. In initial days the company was a group of market stalls. The Tesco name was introduced in the market in year 1924 (Leathy, 2004, 15). The name was introduced when Cohen bought shipment of Tea from T.E Stockwell. The initial letters were combined to form the name of Tesco. The first retail store of Tesco was opened in year 1929 in Burnt Oak, Middlesex. The business of Tesco grew rapidly and till 1939, Tesco was operating 100 stores across the country (Lindgreen, 2003, 328). In the next part of this report critical analysis will be done on the recontructionist framework of strategy. The ways in which Tesco can shift their strategies and challenge the industry paradigm to open new market opportunities will be discussed. The analysis of the Tesco PLC will be done on its supermarket.

SWOT Analysis

Distinctive competencies of the organization must be taken into consideration by the senior managers as it helps in formulating effective strategies for the company. The management of the company must critically examine various factors that positively or negatively affect the profitability and growth of the company. Thus, in this part of the paper I am going to do SWOT analysis of TESCO that is and will affect the profitability and growth of the company. Tesco PLC is considered as an important food retailer in UK that also operates in various parts of the world. Tesco has its departmental stores, supermarkets, and hypermarkets in Asia, Europe, and Britain. Electrical, telecommunications, financial products such as banking and insurance are also offered by Tesco. Tesco has clear focus and well targeted market. The company has maintained strong and excellent record in both format and product innovation.

Strengths

The market of Tesco has increased by 13% in retail market of UK (Acur, 2004, 388). The business held in 2010 30.7% of UK food retail market share. Tesco has strong brand image. Tesco is the third largest food store in the world. A strong economic performance over the years has proven the business, emphasizing its strategic capability. Tesco has flexible formats that make its senior management more strong and efficient. They have strong hypermarket portfolio. They are financially strong that is why they are able get more and more new investments. Tesco is famous for its low cost products that in future can assist in ...