Business strategy is a strategy to achieve its desired or specific objective. It mostly made for long term business planning. Another explanation might be that it is art, science and craft of making and implementing cross-functional decision to achieve long-term objective of organization. In this research, researcher will study business strategy of Tesco Plc. Tesco Plc is global grocery and general merchandise retailer headquartered in UK. Firstly; researcher will try to make understand about the process of strategic planning. This paper will formulate a new strategy for organization. Researcher will also spot on approaches to strategy evolution and selection. At last, this paper will focus on implementation of chosen strategy in organization.


A.C. 1.1 Mission, vision, scope and business environment

Firstly, the mission of Tesco Plc is creating value for customers to earn their lifetime loyalty. Secondly, the vision of organization is to become most highly valued brand in customer perception. Company is loyal and its staff is committed to serve in its targeted market. The stakeholders also have vision for growth of company and motivated to adopt modern and innovative strategies for local market as well as its global market. Other than this, Tesco Plc main scope is to expand its business rapidly in international market and earn more and more profit to achieve organizational goal (Flander, 2014). Core competence can be anything that firm does better than its competitors and help in gain competitive advantage. It need skilled and expertise staff for success of business. The core competence of Tesco Plc is that its staff is very high skilled and they are able to understand behavior or need of customers. Company is also innovative in nature and develops some critical strategies for success of business in its competitive market.

Business strategies of Tesco Plc are related to its mission, vision, scope and its business environment. These factors are blue print of organization and shows what organization is going to achieve through implementation of strategies. Business strategies are also made on basis of organization value, purpose and its mission, goal, environment. Strategic vision is first step in formulating and implementing strategy (Oetinger, 2001). It provides logical reason for future plans and directions of company this shows that business strategy is related to company vision, mission, scope and business environment.

A.C. 1.2 Issues involved in strategic planning

A) Steps of strategic planning and Issues involved in strategic planning

There are five steps of successful strategic planning such as, getting ready, communicative mission and vision, assessing the situation, developing strategies, goal, and objectives then completing the written plan. Firstly, in strategic planning Tesco Plc will identify the specific issues and clarify the roles to develop organizational profile. Secondly, company will identify the purpose, business and value of firm in market. After that Tesco Plc will examine the situation and environment of organization and assess the information (Terrance, 2014). Fourthly, organization will develop strategies according to issues, goals and objectives of company to achieve those goals. At last, Tesco Plc will implement the developed strategies and complete the process.

Tesco Plc business depends on creating and keeping customers, company provide better value to customers than its competition or competitors. For successful strategic planning marketing management constantly has to follow its customer behavior for better reach and better design of products and services. The main problem in this process is that its environment, retail market environment change rapidly that affect planning and reflect changes on business. It is necessary to adopt marketing mix to sustain in those changes (Tan, 2005).

B) Levels of management and its responsibilities

There are four levels of management such as, corporate level, business level, functional manager and operating manager. Each level of management has different strategies like, corporate, business, functional and operating strategy. The corporate level management responsibilities are it focuses on capital allocation, cross-business strategic fits. It moves to add new business. Secondly, business level management responses to changing conditions, it focuses on collaborative partnerships and strategic alliances. It also tries to make competitive advantage and make Hr, marketing and finance strategy (Burns, 2014). Functional level is responsible for strategically relevant function and activity. It also responsible for managing key activities and provide support for business strategy. At last, operating mangers are responsible for managing grassroots activities and strategically relevant operating units.


A.C. 2.1 SWOT Analysis of Tesco Plc

SWOT analysis is a structured planning method that is used to evaluate strength, weakness, opportunities and threats of organization that affects business and its environment. It helps in develop a strong business strategy by considering business strength, weakness and identify the opportunities, threats that face in market place.

  • Leadership Position in UK.
  • High cash reserves with increase in sale.
  • Effective marketing strategy.
  • Competitive advantage is not sustainable due to rapid changes in market.
  • Over-dependence to its home market in UK.


  • Increasing international presence.
  • Further diversification of services.
  • Competition from developing companies.
  • Increase in cost of operation.
  • Decline in sale due to inflation in UK.

A.C. Pest Analysis of Tesco Plc

Pest analysis is consisting of main business environment factors like, political, economic, social and technological factors.

Political factors: Tesco business is worldwide so its performance can influence by global political factors such as, specific acts of legislation, tax rates, political stability of countries in which company operates. The financial instability of world and governments will also affect Tesco business (Porter, 2009). Governments of different countries are also forcing companies to create job opportunities in retail sector.

Economic factors: The changes in political conditions also affect economy, so it is important for Tesco plc to consider those factors. Changes in corporation tax, interest tax and other financial factors that can affect economy. These factors company mostly face during expansion of business in different countries (Hiriyappa, 2013).

Social factors: The business of Tesco Plc depends on behavior of its customers. Changes in working lives and increase or decrease in young age professionals will affect business of Tesco. The growth in home delivery network also influence retail industry business. For example, people of UK are moving towards easy reach of retail products due to their busy life so this will also affect business of company.

Technological factors: The changes in technology provide new opportunities for Tesco Plc. They developed an online shopping for increase in consumer satisfaction and rise convenience of shopping (Gibbert, 2010). Tesco Plc also increases the use of self-service checkout points in stores and reduces its labor cost.

A.C. 2.3 Stake holder mapping of Tesco Plc

Stake holder mapping is visual exercise and analysis tool that can use to determine stakeholder value and importance. It will help Tesco Plc in identify conflicts, gaps and incompatibilities between stakeholder requirements. It helps in making strategy to resolve issues. Mapping also ensures ongoing communication and access information through monitor changes in attitude.

Stakeholder position matrix

Upward audience – senior executives, sponsor, senior manager, owners.

Inward audience – line managers, resource provider, internal customers.

External audience – External customers, stockholders, government.

Program audience – leadership team, project team and supporting team.

The stakeholders mapping of Tesco Plc includes primary and secondary stakeholders. Primary stakeholders are those who directly affect the business in positive way or negative way. While on other side secondary stakeholders are intermediaries in delivery process. The primary stakeholders of Tesco Plc are shareholders, distributers, customers, employees, suppliers and financers (MbDonald, 2007). On other side, secondary stakeholders are government, media, business groups, public and communities. In this mapping company will able to identify the level of influence power of its stakeholders.

Significance of stakeholder analysis

Stake holder analysis is very important for Tesco Plc because it provides an understanding about stakeholders and their analysis. It also helps in solving conflicts between stakeholders and improves performance of organization. Stakeholder analysis is also important for identifying stakeholder’s success criteria. It also helps in marketing strategies and creates a transparent and fair communication environment (Cassidy, 2005). Other than this, stakeholder also helps in develop matrix and identify the needs of different stakeholders. It also helps in making understand the financial and emotional interest of Tesco Plc stakeholders. Management can also have information regarding communication and other factors related to owners, customers, suppliers, etc.


A.C. 3.1 Market entry strategies

Market entry strategies are designed method of delivering goods or services to new target market and distribute them in market. It is mostly useful in import and export of services. It refers to establishment and managing agreements in foreign country. Market entry strategy includes mergers or acquisition, alliances, licensing and franchising. Firstly Tesco Plc can adopt franchising. It has two key players’ franchiser and franchisee. It is practice of using another firm’s successful business model. In this franchiser is supplier and allows operator to use the supplier trademark and distribute goods (Simerson, 2011). Secondly, licensing is method of foreign operation where firm agrees to permit a company in another country to use manufacturing, processing, trademark and other skills provided by licensor. It involves little expense and involvement. It is a good way to start in foreign operation and provide new opportunities to low risk manufacturing relationships.
After that alliance, it is kind of joint venture. It is an enterprise in which two or more ownership and control over property rights and operations. This is very easy and common strategy of entering foreign market that can adopt by Tesco Plc (Flander, 2014). It has some advantages like, it share risk between owners. It has joint financial strength and it can only do for entry in some countries. At last, merger and acquisition it is a strategy to expand business and plays key role in globalization. It will increase market power of Tesco and help in acquisition of technology. It also has optimum utilizations of resources.

A.C. 3.2 Horizontal and Vertical strategies

Horizontal integration is a strategy in which company creates or acquires production units to increase output in its competitive market. Another explanation might be that strategy to increase market share by taking over other retail company. This may be to increase reach of company in other countries. In this Tesco Plc can integrate other infrastructure, assets and companies of same industry or in same level of production (Oetinger, 2001). This will result in an expansion of existing operation rather than establishing new operation. While on other side, vertical integrations is the supply chain of company is owned by organization. In other words, it is a process in which several steps in production or distribution of product are controlled by single entity to increase power in marketplace. It is all about expanding in new operation for decrease in firm reliability.

There are several benefits of horizontal integration for Tesco Plc such as, it increase scale of economy. In this company sell more of same product in different parts of worlds. Other than this, it has sharing of resources related to common and different products. It also increase market power and reduce cost of organization. It also has some disadvantages like, it increase work load and responsibilities. It creates anti-trust issues and monopoly (Terrance, 2014). While on other side, vertical integration also have some advantages for Tesco Plc such as, it reduce transportation cost. It will improve supply chain coordination and create more opportunities to differentiate by increase control over input. It also increases entry barriers to potential competitors of Tesco Plc. The disadvantages are it increase cost due to lack of supplier competition. It also decrease flexibility and increase practical cost.


A.C. 4.1 Roles and responsibilities for strategy implementation

There are several roles and responsibilities of strategic management team regarding several factors like, customer focus, pricing strategies, promotion strategy, market penetration, expansion and product strategy.

Customer focus: Strategic management team has to focus on customers and design strategies according to customer behavior and perception. The management also has to develop new products according to market and consumer behavior. For Tesco Plc it also important to be loyal with its customers (Burns, 2014).

Pricing strategies: Strategic management team also have some roles and responsibilities regarding pricing strategies. Tesco plc team has to focus on pricing strategy that which one they are going to adopt behavioral or differentiate. The responsibility is to maintain price according to selected strategy (Hiriyappa, 2013).

Promotion strategy: In promotion strategy strategic management role is to decide strategy for promotion of its brand and products. While on other side its responsibility is to maintain and have optimum use of selected strategy or proper use of different communication mediums.

Market penetration: In market penetration strategic management team also plays a key role in increase market share of existing product or promoting a new product through strategies. It responsibility is to monitor strategy during increase in market share.

Expansion: Strategic management team role in expansion is to make decision related to expansion of business and responsibility to make strategies for successful run of expanded business (Simerson, 2011).

Product strategy: At last, strategic management team role is to decide strategy for product development and its responsibility is to have proper monitoring of production and implementation of strategy.

A.C. 4.2 Resource requirement to implement a new strategy

There are some requirements that Tesco Plc need to implement a new strategy such as, action planning, organization structure, human resource, annual business plan, monitoring and control. Firstly, Tesco Plc has to focus on action planning for successful implementation of strategy. It includes estimate of all resource required to perform actions to accomplish goal. Secondly, organizational structure is also important for successful execution of strategy in Tesco, if there is no proper organizational structure then there will be miscommunication regarding strategy and affect the performance of firm. The organizational structure is also important for proper production and selling of products (Pehrsson, 2008).

Other than this, human resource factors also important for successful implementation. According to researcher human resource factor make strategies happen successful. Management requires proper communication with employees and human resource to know about needs. Through that information management design strategy and apply, so human resource factors are also important for success of business. After that, it is also necessary for Tesco to consider annual business plan for proper implementation of strategy (Karakaya, 2002). Annual business plan is blue print of achieving organizational goal. It contains planning process and other important factors that affect completion of strategy. At last, monitoring and control is also important for successful execution it includes examination of performance and evaluation of strategies apply on action.


According to above study it has been concluded that business strategy is important for Tesco Plc. Business strategy is art of making, implementing and evaluating cross-functional decisions that helps organization in achieving its specific goal for long term success. This process includes mission, vision, objective, developing policies and plans by allocating resources to achieve desired objective. In this research, researcher has identified that Tesco Plc mission is to create value for customers to earn their lifetime loyalty with increase in sale and profit. This paper also spotted that there are five steps of successful strategic planning. It includes getting ready, communicative mission and vision, assessing the situation, developing strategies, goal, and objectives then completing the written plan. Other than this, it also been identified that there are four levels of management such as, corporate level, business level, functional manager and operating manager. Researcher has also determined some analysis of Tesco Plc like, SWOT, PEST and BCG matrix. Researcher has also studied market entry strategy for organization. At last, researcher has also discussed timescale of strategy.


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  • Oetinger, B., 2001. THE RENAISSANCE STRATEGIST. Journal of Business Strategy.

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