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Strategic Management - Tesco

University: The University of Northampton Northampton Business School

  • Unit No: 7
  • Level: Diploma
  • Pages 10 / Words 2500
  • Paper Type: Assignment
  • Course Code: Y/508/0487
  • Downloads: 77
Question :

Analysis of strategic issues faced by multinational businesses.

  • Part A: Understanding of major issues faced by the company.
  • Part B: Identification of ways to use procured resources by the business.
  • Part C: Reflection of own skills.
Answer :
Organization Selected : Tesco


Strategic management play important role in development and growth of business. In this resources of company is divided in such manner so that goal and objective can be achieved in effective manner (David, 2011). Along with this strategic management involve several thing in this like setting objective, analysing competitive advantage, analysing the internal organisation and several other. This assignment is based on TESCO which is retail sector company founded in 1919 by Jack Cohen. Products serving by them are Supermarket, Hypermarket and Superstore. The same sector have lots of competition because of huge organisations. For smooth working of enterprise there is requirement of proper strategic formation and implementation.

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Part A

Business environment is that in which organisations exist it is divided into two parts internal and external which gives wide impact on company. Internal involves suppliers, customers, competitors, owners. Whereas, external includes improvement in technology, laws and legislation, social, market and economical trend. For identifying internal and external strength and weakness of Tesco SWOT analysis is used:

Strength of Tesco is powerful retail brand in the top 100 of the world retail company (Hitt,Ireland and Hoskisson,2012). Main strength of respective organisation is that it gain global market place in world retailing award 2008 this is advantage for future growth and development as well sustainability. It is having leadership position in the United Kingdom. Online stores is playing important role now a days and Tesco is taking order of customers online and doing effective online operations. This firm is known for its vale they are offering for money, range of products, convenience, local sensitive management and many more. Same firm have strong property portfolio and this fact increase its overall values.

Weakness of Tesco is totally depend on the revenue which is generated by market of United Kingdom if that market is decline than than entire scenario of enterprise also. Business model following by them is same everywhere but according to different geographical areas amendment should not be similar (Hitt and Duane Ireland,2017). Along with all these major weakness is its financial position because of bad debts. Company is not focusing on specific market because they are entering in market at the same time this is main reason for lack of focus.

You may also check this sample: Strategic Management for Competitive Advantage

Opportunities for Tesco is online scope for the products which can be sold out without massing the stores. online shopping can offer great flexibility to customers because they can purchase goods and services with mobile App (Hair and et.al., 2012). Tesco Plc can expand their business in several new countries along with its strategic alliance.

Threats for Tesco is that they have large number of customers like ALDI, Asda, Wal-Mart and several more. Changing government and its strategies related to tax and several other law or legislation. Sometimes operation cost increases which is unpredictable because of increase in price of raw material and high labour cost.

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Tesco Plc have several competitors of same industry such as Aldi, Asda and several other. For competing with these competitors same organisation is using several tools and techniques which is helping Tesco in competing. Some competitive strength are services they provide additional services to customers also for maintaining product such as repairing, installation and after sale services of goods. Its operation is also an competitive advantage because core operation of the same enterprise is related with creating goods and services which activities are service oriented. It involves several other also like packing, machining, maintaining the shelves and refilling stock (Hodgkinson and Healey, 2011). For gaining more competitive advantage company invest their money for digital programming which is third generation ERP solution. With introduction of this Tesco increase its profitability and gain several advantages.

Tesco Plc is largest retailer of United Kingdom and 4th in all over the world after Metro AG, Carrefour and Wal- Mart. Market position of company is important because is play important role is value and image in the market. If organisation have positive image and value than they can attract customers easily as well generate more and more revenue.

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