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STRATEGIC ANALYSIS OF TESCO Free essay! Download now

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Downloads to date: N/A | Words: 4092 | Submitted: 27-Nov-2011
Spelling accuracy: 96.9% | Number of pages: 15 | Filetype: Word .doc

This is what the first 3 pages of the essay look like



It analyses the strategies of Tesco that have propelled it to success


Strategic Management Assignment


Cover Page-------------------------------------------------------------------------------1
Table of Content-------------------------------------------------------------------------2
Introduction ------------------------------------------------------------------------------3
Background of Tesco -------------------------------------------------------------------3
Schools of Strategy----------------------------------------------------------------------4
The Design School-----------------------------------------------------------------------4
SWOT Analysis of Tesco----------------------------------------------------------------5
3.2.1 Strengths---------------------------------------------------------------------------------5
3.2.2 Weaknesses------------------------------------------------------------------------------5
3.2.3 Opportunities ----------------------------------------------------------------------------5
3.2.4 Threats ------------------------------------------------------------------------------------6
3.3 The Positioning School -------------------------------------------------------------------6
3.3.1 Porter’s Five Forces Analysis in relation to Tesco---------------------------------6
3.3.2 Threat of substitutes----------------------------------------------------------------------6
3.3.3 Barriers to entry---------------------------------------------------------------------------7
3.3.4 Degree of Rivalry-------------------------------------------------------------------------7
3.3.5 Power of buyers----------------------------------------------------------------------------8
3.3.6 Power of suppliers-------------------------------------------------------------------------8
5.0 The Boston Consultancy Group Matrix---------------------------------------------------8
6.0 PESTEL Analysis----------------------------------------------------------------------------9
6.1 Political----------------------------------------------------------------------------------------9
6.2 Economic--------------------------------------------------------------------------------------9
6.3 Social------------------------------------------------------------------------------------------10
6.4 Technological---------------------------------------------------------------------------------10
6.5 Environmental--------------------------------------------------------------------------------10
6.6 Legal--------------------------------------------------------------------------------------------11

7.0 Value Chain Analysis of Tesco----------------------------------------------- --------------11
7.1 Inbound Logistics------------------------------------------------------------------------------11
7.2 Operations Management-----------------------------------------------------------------------11
7.3 Outbound Logistics-----------------------------------------------------------------------------12
7.4 Marketing and Sales----------------------------------------------------------------------------12
7.5 Services-------------------------------------------------------------------------------------------12
8. Core Competencies of Tesco-----------------------------------------------------------------12
9. Financial Performance--------------------------------------------------------------------------12
10 Conclusions ------------------------------------------------------------------------------------13
11 References---------------------------------------------------------------------------------------14
12 Bibliography-------------------------------------------------------------------------------------15

1.0 Introduction
In today’s business world, companies are experiencing stiff competition in the international market. To combat these undesirable trends and achieve superior performance, businesses need to come out with valuable strategies so as to better exploit and expand in the global market. A good strategy is a key component to the success of any company internationally and domestically.
According to Hill and Jones (2009) ‘superior performance is typically thought of in terms of company’s profitability relative to other companies in the same or similar kind of business or industry’
The strategies an organisation pursues have a major impact on its performance relative to rivals.
Mintzberg defines strategy as ‘the pattern plan that integrates an organisation major goals, policies, and action sequences as a whole. A well formulated strategy help to allocate an organisations resources into unique and viable posture based on its relative internal competencies and shortcomings, anticipate change in the environment, and contingent moves by intelligent opponent.’
Furthermore, Johnson and Scholes (1999) define strategy as ‘the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of markets and to fulfil stakeholder expectations’.
With regard to this assignment, i will consider Tesco to be a superior performing organisation. Thus this piece of work will highlight various strategies used by Tesco that has helped it gained superior performance. I am going to look at some schools of strategy in line with Tesco. An analysis of theories like Michael Porter’s five forces framework, the PESTLE Analysis, the BCG matrix and value analysis strategies applied by Tesco, core competencies and Tesco’s financial performance will be done.
However, we can’t continue this discussion without an overview of the company (Tesco)
2.0 Background of Tesco
Founded by Jack Cohen in 1919, Tesco is among the the world’s leading food retailers and has over £54 billion in revenue. It employs 470,000 people. It operates in fourteen countries around the globe with roughly 4,331 stores in Asia, Europe and the USA. It’s headquarter is ...

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