TESCO

Business Strategy



Business Strategy

Organization Selected

Tesco came into existence in 1919. It was Jack Cohen's idea that gave rise to such a huge and gigantic organization. Tesco is involved in grocery and general merchandising retailing. Tesco has diversified into areas such as retailing of furniture, electronics, clothing, books, finance, telecom and music download (marketingweek.co.uk). Tesco operates in 13 countries outside the UK - America, India and Thailand in Asia, South Korea, Slovakia, Malaysia, Japan, China, Poland and Turkey in Europe, Czech Republic, Hungary, and the Republic of Ireland. Tesco is one of the few companies that appear to have incorporated this insight in to its international strategy (marketingweek.co.uk). Tesco has followed a deliberate expansion path, entering relatively few countries, but building scale in those where it has entered. As a result, operating margins in international markets have quickly matched those enjoyed in the U.K. market (Lamb et al, 2008, pp. 56-89).

TASK 1- The Process of Strategic Planning

1.1) State the mission, vision, objectives, goals and core competences of your chosen organisation.

TERM

DEFINITION

Mission

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 (marketingweek.co.uk).

Vision

The vision of Tesco is to be valued highly by the customers and the communities they are serving, the committed and loyal staff and the stakeholders and to be a innovative and modern company which wins locally and which applies their skills worldwide.

Objectives

Central development in the United Kingdom

Being an outstanding global distributor in stores and online

Be efficient in everything we sell as we have been in the food

Expand distribution services in all our markets

Communicate our responsibilities to the districts we serve,

Designer brands

Form a team, that helps improve the quality of our products and services

Goals

The main goal is to create value for the customers to win their loyalty for life

Core competences

customer focused strategy

1.2) Describe three issues involved in strategic planning in your chosen organisation.

Technology: This world is running with the very fast technology system. If Tesco does not adopt all the new technology then they will not be able to compete effectively with their competitor.

Economy: The rate of economy of the country has a strong impact on the organization. Tesco needs to keep into view the economy condition of the country before designing or implementing the strategy (Humby et al, 2007, pp. 67-89).

Government: Changes in the government policies could have dramatic effect on any organization. The willingness and ability of local and state government to permit central rules impacts the desired goal achievements.

Unpredictable factor: These type of factor are uncontrollable, for example computer attack, a high profit court and etc. Changes in the law may affect the organization's workload and responsibilities (Lamb et al, 2008, pp. 56-89).

1.3) Select two different planning techniques which you could apply to your chosen organisation.

PIMS (Profit Impact of Marketing Strategy) provides quantification of the influence of factors of production on the final performance ...