STRATEGIC MANAGEMENT

Strategic Analysis Report of Tesco

Abstract

The international retail industry has transformed much more in the past seventy years than it has in the past seven hundred years. History enlightens us with the truth that the retail business counts on the disposable and economic income levels of the population that shifts from the hubs of economic dispossession to the prosperous and industrialised environments.

The past few decades have experienced diverse expansion in the industry of food retailing in the United Kingdom, together with the materialisation of pioneering formats of shops, capital expenditures in latest technology, better logistics, superiority of supply chain procedures, and the incessant expansion of supermarket chains. Thus, the food retail industry in the UK has developed speedily all through the past twenty years and is one the major economic divisions of the country by means of employment, turnover, revenue and also through profits. Tesco's turnover during the year 2009-2010 was more than GBP 58 billion and hired 468,509 employees from all over the world. The food retail industry embraces different entities like vegetable, small groceries, meat and fish shops, separate departmental stores, farmer marketplaces and supermarkets. Therefore, the superstore and supermarket industry in the UK carries on to effectively catching the attention of the international majors for the varied benefits they offer to the retail customer with respect to convenience, quality, choice and economy. In this regard, this report analyses the strategies of Tesco together with motivation for expansion, the foundation of the policies and means initiated and the flourishing results of their implementation.

Abstract1

Introduction3

Discussion4

General Overview of Tesco4

The Core Values and Vision of Tesco4

Corporate Strategy5

Situational Analysis/External Environment5

Technological Factors5

Political Factors6

Economical Factors6

Cultural-Social Factors7

Environmental Factors7

Review of Tesco's Present Business Plans7

Strengths8

Weaknesses8

Business Plans8

Strategic Plan of Tesco9

Strategic Marketing Objectives10

Tesco's Strategic Options11

The ANSOFF Model Strategy11

Development of New Product11

Market development11

Strategic Targeting Positioning12

Targeting Strategy12

Segmentation Strategy12

The needs and expectations of Stake-holders12

Positioning strategy13

Strategic Plan Implementation13

Conclusions and Recommendations13

References15

Strategic Analysis Report of Tesco

Introduction

In United Kingdom just like other parts of the world, supermarkets reflect the authenticity of modern economic life and have an urbane and huge impact on the supply chain of groceries. The past few years have encountered plentiful progress in the food retailing sector of the UK, together with the materialisation of latest and innovative shop formats, investments in the latest technology, better logistics, steady expansion of supermarket chains and advancements of supply chain procedures. Superstores and supermarkets retail formats are without doubt the most outstanding of the mercantile and topographical contours of the UK. The United Kingdom is a country where four fifths of the expenditure on foods is used up within the boundaries of the 5 biggest retail players i.e. Sainsbury's, Tesco, Wal-Mart/ASDA, Waitrose and Morrison, this sort of multinational took control over and drastically persuade the choices of customers comprehensively in towns, cities together with small settlements. It seems that these high-end awe-inspiring retail formats would not have been this much flourishing devoid of satisfying significant desires and needs of the customers like quality, convenience, variety and prices. The drawback is that these very supermarkets call for strident criticism ...