Tesco Strategic Planning
STRATEGIC PLANNING COURSEWORK:
LONGITUDINAL STRATEGIC DEVELOPMEN STUDY OF TESCO
OLUKAYODE OMOSEBI
MBA 8A
A4032655
Contents Introduction 3 Past Strategies Deployed 3 Diversification 3 Acquisition 4 Extension of Service 4 Strategic Alliances 4 Creation of Sub-brands 5 In-Store Brands 5 International Expansion 6 Current Strategic Situation 7 SWOT Analysis 7 PESTEL Framework Analysis 10 Political Factors 10 Economic Factors. 10 Strategic Direction for Future 12 Expansion into Growing Economies 12 International Strategic Alliances 12 Diversification 13 Strengthening Competitive Positioning In Food Retail 13 Conclusion 15 References 17
Introduction
Tesco is a United Kingdom based multinational grocery retailer. Tesco is the third largest retailer on the global level after Wal-Mart and Carrefour. The expanse of the business is in fourteen countries in three continents. The company was started in the year 1919 and has grown tremendously in less than a hundred years to reach the level of third largest retail chain in the world. The Tesco brand name was formed in the year 1924. Tesco sells roughly 40,000 food products in its superstores. The major product portfolio consists of clothing and food products. Tesco has also strengthened its own brands over the years and they account for almost half of the company’s sales.
The paper assesses the strategic development of Tesco since its formation. Significant attention is paid on the strategic development of the company during the previous twenty five years. The paper carries out an analysis of the past strategies of the organization along with current strategic situation. Two tools of strategic management are utilized to appraise current strategic situation of Tesco. The first one is SWO T analysis and the second one is Porter’s Five Forces Model. The last part of the paper talks about the future strategic direction for Tesco based on the analysis of current strategic
LONGITUDINAL STRATEGIC DEVELOPMEN STUDY OF TESCO
OLUKAYODE OMOSEBI
MBA 8A
A4032655
Contents Introduction 3 Past Strategies Deployed 3 Diversification 3 Acquisition 4 Extension of Service 4 Strategic Alliances 4 Creation of Sub-brands 5 In-Store Brands 5 International Expansion 6 Current Strategic Situation 7 SWOT Analysis 7 PESTEL Framework Analysis 10 Political Factors 10 Economic Factors. 10 Strategic Direction for Future 12 Expansion into Growing Economies 12 International Strategic Alliances 12 Diversification 13 Strengthening Competitive Positioning In Food Retail 13 Conclusion 15 References 17
Introduction
Tesco is a United Kingdom based multinational grocery retailer. Tesco is the third largest retailer on the global level after Wal-Mart and Carrefour. The expanse of the business is in fourteen countries in three continents. The company was started in the year 1919 and has grown tremendously in less than a hundred years to reach the level of third largest retail chain in the world. The Tesco brand name was formed in the year 1924. Tesco sells roughly 40,000 food products in its superstores. The major product portfolio consists of clothing and food products. Tesco has also strengthened its own brands over the years and they account for almost half of the company’s sales.
The paper assesses the strategic development of Tesco since its formation. Significant attention is paid on the strategic development of the company during the previous twenty five years. The paper carries out an analysis of the past strategies of the organization along with current strategic situation. Two tools of strategic management are utilized to appraise current strategic situation of Tesco. The first one is SWO T analysis and the second one is Porter’s Five Forces Model. The last part of the paper talks about the future strategic direction for Tesco based on the analysis of current strategic
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