Strategic Management Analysis

Case of Tesco Plc in UK

1. Introduction(300 words)

1.1 Scope of Report

1.2 Overview of Tesco Plc in UK
The company selected for this task is Tesco is the largest food retailers in the world with revenue
in excess of 54 billion in 2009 and employing over 470,000 people. They operate
approximately 4,331 stores in 14 countries around the world. The company operates primarily in
the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK.

Market Share of Grocery Stores in UK

(Source: Statista, 2015).

The strategies that have been adopted by the company involve introducing the Club Cards and
applying customer centric approach for the purpose of attracting and retaining the customers.

1.3 Supermarket industry UK

A brief overview of the overall supermarket of UK
1.4 Key Requirements
It will define the scope of report through discussing main requirements of the below 3 tasks

2. Task A(1000)

2.1 Market Environment Analysis:

2.1.1 Micro Environment (Porters)
An analysis of the structure of the industry should be undertaken in order to find effective
sources of competitive advantage (Porter, 1985) i.e. Tesco is include threat of substitute products
and services, threat of entry of new competitors, intensity of competitive rivalry, bargaining
power of buyers, bargaining power of suppliers.
2.1.2 Macro Environment: (Pestle)
The macro environment for Tesco can be analyzed with the help of certain adequate tools such as
PESTLE analysis and Porters five forces .The PESTEL framework below analyses the dynamic and
unpredictable environment in which Tesco operates by identifying the forces that have the most impact on
Tescos performance:

Political:The politically growth of Tescos international business of country .

Environmental:Greener Living Scheme on environmental issues.
Social:Consumers attitude and behavior towards food.
Technological:advance technology Online retail shopping.
Legal:Product packaging Act.
Economical:Economic factors impact directly on the buying behavior of
customers.

2.2 Critical Success Factors for Tesco

These factors will be determined through the analysis conducted above.

3. Task B(1000)
3.1 Internal Analysis
3.1.1 Identification of Appropriate Tools
It will involve the selection of two or three tools related to Marketing objectives & strategy Generic
Strategies, Growth strategies, Competitive Strategies, Marketing mix Vision, Mission & Value
Proposition - Value chain analysis - KSF and CSF analysis, SWOT

3.1.2 Internal Analysis of Tesco

The most appropriate tools will be SWOT, Value Chain Analysis, Generic Strategies and the
discussion on the marketing mix, vision, and mission and value proposition of the company.
SWOT Analysis

Strengths:very strong brand name and financially powerful.

Weaknesses:high dependency on UK domestic market.
Opportunities:market extension and joint venture.
Threats:increasing the number of competitors like Sainsbury's, Marks & Spencer and
Morrisons, ASDA

Value Chain Analysis

Generic Strategies
Marketing mix Vision, Mission & Value Proposition
3.2 Resources and Capabilities Analysis of Tesco

4. Task C(700)

4.1 Defining Strategic Fit Analysis

It will involve the theory and definition of strategic fit analysis
4.2 Strategic Fit of Tesco (on the basis of SWOT)
It will be done on the basis of the information collected and evaluation done above.

5. Literature Sources(5 important)

6. References
Statista.(2015). Market share of grocery stores in Great Britain for the 12 weeks ending March
29, 2015.[Online]. Available at <http://www.statista.com/statistics/279900/grocery-market-sharein-the-united-kingdom-uk/> [Accessed on 13th July, 2015].