Want the Best Assignment Help in the UK? Look to Native Assignment Help for unparalleled expertise and support. Our dedicated team of professionals goes above and beyond to ensure you receive top-quality assignments that exceed your expectations.
Strategic management refers to the administration of a company's resources in order to fulfil its aims and targets. Seeking to achieve, assessing the competition, reviewing the internal structure, comparing plans, and verifying that management implements the plans throughout the company are all part of strategic management. Strategic management plays a major part in incorporating the areas that the firm requires to achieve its aims. As a result, strategic management strives to acquire a knowledge of the mechanism that a company accomplishes through engaging with other divisions (Lon?ar, 2017). The importance of strategic management is highly recognized and appreciated across several industries. The present report will discuss about the importance of strategic management assignment and how this will align the external and internal functions in favor of the organization. The company context will be Tesco in this report scenario.
The Importance of Strategic Management
The management of a company's resources in order to reach its goals and objectives is known as strategic management. Basically, it's a plan for ensuring that the company's objectives are accomplished and that it continues to grow. In order to attain objectives, strategic management sets plan and policies that are based on the goals and then distributes resources to implement the plans (Moutinho and Vargas-Sanchez, 2018). The ultimate purpose of management is to offer organizations an edge over their competitors in the marketplace. Management Assignment Help may be the key to establishing a solid bottom line in a market where workplaces are continually being disrupted by digital innovation.
An understanding of one's own goods or services, as well as a thorough understanding of one's rivals' products or services, is essential for making timely business choices. As a result, they will be able to plan for future possibilities and possible threats. However, it's not enough to just create and implement a strategic management strategy. More successful and financially successful firms are those who consistently monitor the effects of their strategy approach (Trigeorgis and Reuer, 2017). Fast-moving market dynamics can only be met by companies that constantly examine whether they are operating in accordance with their corporate strategy. They are capable of guiding the corporation on its strategic orientation.
Advantages
Develops Better Accountability
Involves an Objective Evaluation
A Decision-making framework is provided
Disadvantages
Unexpected Events Occur
Might be Expensive
Immediate results vs. long-term advantages
PESTLE Analysis of Tesco
Political
With Brexit, there is uncertainty about future trade limitations in Europe, which has led to the value of the pound weakening. This action is certain to have an impact on profit margins of the retail stores (Rosnizamet al., 2020). Government-ordered restrictions on in-person purchases after pandemic which also had impact on the retail industry.
Economic
The volatility of currency conversions continues to influence agreements with vendors. Because to the UK's decision to leave the European Union, the UK's commercial sectors and entrepreneurs are in a state of uncertainty (Baliyan, 2021). The COVID-19 epidemic has contributed to low market performance and increased online buying dependency which has proved to be beneficial for Tesco.
Social
Tesco is responding to the growing demand for organic goods since people are becoming more conscious of health problems and their eating habits are changing rapidly (Rosnizamet al., 2020).
Technological
Tesco has benefited from technological advancements. The development and execution of online shopping with delivery service is one of the most significant (Baliyan, 2021). With the introduction of self-service checkout terminals, consumers have enjoyed more convenience while reducing labor costs. In order to accomplish its long-term aim of decreasing its carbon footprint, Tesco has invested extensively in energy saving programs.
Legal
The modification in governmental regulations, immediately impact the functioning of the firm. It has to respect both the local as well as the worldwide market regulations, in order to proceed with seamless functioning(Rosnizamet al., 2020). For instance, the "Food Retailing Commission" has put down specific norms and regulations that have to obey through all the participants in the retail sector.
Ecological
Tesco has launched a number of initiatives aimed at improving the environment and building a more sustainable society (Baliyan, 2021). Tesco has recently begun the second phase of its Remove, Reduce, Reuse, and Recycle campaign. Phase 2 will focus on reducing waste.
Porter’s Five Forces Analysis of Tesco
Forces
Descriptions
Level
Bargaining Power of Buyers
Consumers are frequently a fussy bunch. They want to purchase the greatest offers accessible while spending the little amount as feasible. This placed stress on Tesco Plc competitiveness in the long term (Bentham, 2018). It is more powerful for customers to demand larger discounts and offers if Tesco Plc's customer base is smaller, since they have more bargaining power.
High
Bargaining Power of Suppliers
Almost every retail firm relies on a range of suppliers for its essential supplies. Suppliers with a monopoly in the market might reduce Tesco Plc's profitability. As a result of their bargaining power, suppliers in the Consumer Services sector are able to demand higher prices from retailers (Adelakun, 2020). "Retail's overall profitability is harmed by growing supplier negotiation strength.
High
Threats of New Entrants
In order to increase pressure on Tesco Plc, new retail entrants have brought new ways of doing things, slashed prices, and reduced expenditures, and offered new value propositions to customers (Bentham, 2018). Tesco must deal with all of these concerns and build strong walls to safeguard itself in order to keep its competitive edge.
Low
Threats of Substitutes
When new goods and services fulfil consumers' needs in a variety of ways, it is difficult for firms to generate money (Adelakun, 2020). For example, services like Dropbox and Google Drive may be utilised in lieu of hard drives as a storage option.
Low
Rivalries
A lot of rivalry in a sector means lower prices and lower profits for the industry as a whole. Competition in the retail industry is fierce, and Tesco is no exception (Bentham, 2018). This rivalry has a negative impact on the company's long-term profitability.
Low
VRIO Analysis of Tesco
Valuable:As a result, its native food items are a significant asset since they are so distinct. Consumers place a high value on these products because of this (Mahadevan, 2020). Consumers also choose them above the competitors because of their uniqueness.
Rare:In the market, they may be simply obtained from other rivals. Competition may employ these assets in the same manner as Tesco Plc and erode its competitive edge (Whittington et al., 2020). This implies that Tesco Plc is able to compete on a level playing field with local food items. Tesco Plc may still benefit from this excellent resource.
Imitable:Other organisations have the capacity to educate their employees, which is why this is the case. They may compete with Tesco for Tesco employees by offering better pay, perks, work conditions, and growth opportunities (Mahadevan, 2020). For the time being, Tesco employees have a short-term competitive edge for the corporation. These may be available to the competitors in the future.
Organisation:This suggests that the company isn't taking full use of the patents it has available. Prior to the expiration of the patents, Tesco Plc will enjoy a long-term edge over its competitors. Tesco is able to better serve its customers by ensuring that all of its products are available at all of its locations (Whittington et al., 2020). As a consequence, Tesco has a long-term competitive advantage because of its resources.
Valuable
Rarity
Imitable
Organisation
Yes
No
No
Yes
Competitive Parity
No
No
No
No
Temporary Competitive Advantage
Yes
No
Yes
Yes
Unused Competitive Advantage
Yes
Yes
No
Yes
Long-Term Competitive Advantage
Strategic Group Analysis of Tesco
Identifying the needs and preferences of a certain group of people is called market segmentation. Loyalty cards are utilised to acquire data on consumers' purchase habits and behaviour patterns, which Tesco uses to segment clients depending on their requirements. Tesco has shifted its marketing strategy to focus on fixing the challenges its consumers encounter on a daily basis (Muli, 2019). Mass marketing initiatives using 'buy one, get one free' deals and discounts were shown to be ineffective. Today, Tesco has become the world's third-biggest retailer, the UK's largest retailer, and a household name in the United Kingdom.
Capability Matrix
Structure and Integration
Discoverability and Compounding
Analytical Speed and Agility
Breadth and Depth of Impact
Organisational Cohesion
Maturity Level
Ad Hoc
Analysts operate alone or in a "black box" while they analyse data.
Emailed around assets stored locally.
There is no particular skill for this kind of tooling.
Anecdotal value only.
Some transactional analytics island.
Basic Repeatability
Workflows that are implicit or weakly specified but not enforced.
Metadata and contextual information are missing from the central repository of assets.
A little amount of money and effort.
There are certain business segments with static reporting.
A little bit of cooperation with the bosses.
Defined and Controlled
Formalization and enforcement of the rules.
Assets are organised and labelled with information in a single location.
With established processes, tools, and staffs, quickly test new ideas.
Operational processes were modified to incorporate the findings.
Strategic choices rely heavily on the input of analytics.
Optimized and Automated
Prompt diagnosis and response based on thorough reporting and analysis.
Reproducible and searchable copies of every asset versions are kept or labelled.
Analytical frontiers are being explored with the aid of cutting-edge instruments that have been fine-tuned for specific purposes.
With strong protections, data products drive the organisation.
Analytics that are integrated into the company and anticipate the demands of customers.
Conclusion
Throughout the evaluation of the study, it becomes concluded that during the organisational business of Tesco, the organisation significantly utilise and implement sufficient and resilient strategic approaches within the organisational culture. Through this, the organisation has been able develop its business consistency and brand image in the international market. Moreover, Tesco also utilise the capability matrix for prominently develop and extend organisational capability and resources.
References
Adelakun, A., 2020. Should Porters Five Forces have value in Businesses today. Computing for Business (BSC) Aston University Birmingham.
Baliyan, R., 2021. A Shift in Paradigm for Apparel Industry Post Covid 19. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(13), pp.5203-5211.
Bentham, J., 2018. Business and Economics in the News–Sainsbury's and Asda-the decade's mega-merger. Teaching Business & Economics, 22(3), pp.11-12.
Lon?ar, M., 2017. The impact of strategic management and strategic thinking approaches on business performance of companies operating in the retail industry. European Project Management Journal, 7(1), pp.85-98.
Mahadevan, K., 2020. TLP for Strategic Management 2020-2021.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic management in tourism, cabi tourism texts. Cabi.
Muli, A.N., 2019. STRATEGIC FINANCIAL EVALUATION AND ANALYSIS OF TESCO AND BENEDICT CO.
Rosnizam, M.R.A.B., Kee, D.M.H., Akhir, M.E.H.B.M., Shahqira, M., Yusoff, M.A.H.B.M., Budiman, R.S. and Alajmi, A.M., 2020. Market Opportunities and Challenges: A Case Study of Tesco. Journal of the Community Development in Asia (JCDA), 3(2), pp.18-27.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic management journal, 38(1), pp.42-63.
Whittington, R., Regnér, P., Angwin, D., Johnson, G. and Scholes, K., 2020. Exploring Strategy Text and Cases. Pearson UK.
