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Business and Strategic Management Proof Reading Service
Strategic management refers to the process of conducting planning with a view to achieving organizational objectives and goals. Strategic management plays a pivotal role in every organization as it helps in the management of resources in such a way to the attainment of overall objectives of an organization. This report is been prepared to focus on Tesco which is one of the largest food retailer companies of this world. This report is evaluating various concepts that are related to the business of Tesco and influence of such factors in the strategic management of the company. This report is also focusing on providing recommendations to Tesco for enhancing strategic management for the betterment of the company.
It refers to the identification of future potential profit of Tesco in the market. This can be determined through application of Porter’s five forces model in Tesco which is as follows.
Threats of new competitors: The threat for new competitors for Tesco is low as it has an established business since such a longer time. In order to compete with Tesco, new competitor requires a huge investment or they are required to provide products at low rates and higher quality than Tesco. Hence the threat of new competitors for Tesco is very low (Dudovskiy, 2016).
Threats of substitutes:Tesco is involved with providing a high quality of the products is reasonable prices hence it is a good brand image in the market. Hence people using the products of Tesco will keep using the products of Tesco only. Tesco deals mainly with food items so the threat of non-food items is high for the company in the market.
Bargaining powers of buyers:According to Dudovskiy (2016), in the case where any other company provides the same products of Tesco at low cost and of higher quality. This will result in switching of buyers from Tesco to such another brand. Hence bargaining powers of buyers are high for Tesco.
Bargaining power of suppliers: According to Tesco (2016), Suppliers in the market deals with major supermarkets and other such grocery retailers which are having a large scale of operations. Hence the bargaining power of suppliers of low for Tesco.
Competitive rivalry: The intensity of competitive rivalry for Tesco is very high as there are large numbers of Tesco in the market. There are various other companies which are dealing in the same business as Tesco. This creates a risk of slowing down the market growth of Tesco because of its competitors (Dudovskiy, 2016).
Industry attractive of Tesco is helpful in effective strategic management as these are important for the company in planning the things for the achievement of organizational goals of Tesco. For example from the above porter’s five forces model, it can be seen that bargaining power of buyers for the company is high hence company needs to manage its strategies to improve the quality of its products and services so that it is able to maintain its market growth.
Resources based view
Tesco is one of the largest companies in this world dealing in household products. It offers all the products that are related to the home framework. The main aim of Tesco is to provide a varied range of home products to its customers at reasonable prices. There is an established market of Tesco in various countries of this world and since it has been operating its business from such a longer time that its customers are satisfied with the quality of the products and services which are provided by Tesco. It focuses on providing eco-friendly products to that it is able to maintain sustainability in the market (Zhao, 2014). These products are known as the physical resources of Tesco. Resources which are involved with the business of Tesco includes huge capital investment that is financial resources, larger workforces in various parts of this world that are human resources and other such resources which are involved with the business of Tesco and helpful in improving the revenues of the company.
Core competencies of Tesco include all such areas in which Tesco is doing well and gaining a competitive advantage over its competitors. According to Tesco (2016), Core competencies of Tesco include potential access to the company over a wide variety of market as the company is having its own supermarkets in major parts of this world. The qualities of the products which are provided by the company are its core competencies as Tesco make its regular efforts towards maintaining the quality of its products to gain customer satisfaction and loyalty. Prices of the products of Tesco are very reasonable that it has captured leadership in the market due to prices of its products.
Resources overview of Tesco is helpful in strategic management as identification of the current resources of the company so that Tesco is able to plan its strategies in accordance with the fulfilment of overall goals with optimum utilization of resources. Core competencies of Tesco are helpful in identifying the strengths and area of expertise of company (Tesco, 2015). These are the areas which are helpful for the company in gaining competitive advantage in the market. Through identification of core competencies, Tesco can develop strategies for boosting its areas of expertise so that company can generate greater revenues and earn better opportunities for growth and development in the market.
Competitive advantages of Tesco are the conditions that are helpful for the company in gaining superior business position. Prices of the products of Tesco are helpful for it in gaining competitive advantage as the company is able to provide products to its customers at reasonable and affordable prices. Tesco uses marketing mix for marketing of its products which is helpful for the company in gaining competitive advantage (Zhao, 2014). Through this company is able to promote and advertise its products in effective and efficient ways. Tesco also maintains a good quality of its products so that it is able to retain its customers in long run through the quality of its products.
Competitive advantage influences the strategic management of Tesco as the main aim of Tesco is to provide effective quality of the products to its customers at reasonable prices (Baroto, et. al., 2012). Through considering the prices and quality of the products, Tesco is able to formulate effective strategies for the betterment of the company. Through considering the market mix, Tesco is able to identify its target market so that it is able to identify the requirements of its customers in such target market Through this Tesco is able to provide such products and services to its customers which are meeting their requirements. This is helpful for Tesco in gaining customer satisfaction and customer loyalty (Brown, et. al., 2011).
The main objective of Tesco is to become a successful international retailer and for this the company needs to strength its strategic management. The company needs to adopt market identification strategy where Tesco needs to identify the internal environment of the company then its needs to identify the external environment of the company. After such identification, Tesco needs to develop its strategies on the basis of analysis of internal and external environment of the company. For effective strategic management, Tesco must plan its finances in such a way that it is able to manage its finance in effective and efficient ways for the growth and development of the company. Tesco must make optimum utilization of available resources so that it is able to meet the resources requirements of the company. For better strategic management, Tesco must set its goals clearly and then plan its strategies with a view to the achievement of such goals and objectives. Tesco must analysis the formulation of the strategies so that it is able to measure the impact of such strategies on the growth and development of the business of the company. Tesco must prioritize its decisions and must implement its plans in accordance to meet its goals. Tesco must identify such key issues that are faced by the organization in the way of smooth running of operations. In this case, Tesco must take corrective measures for reducing the effect of such issues so that Tesco is able to operate its business in effective and efficient ways. Tesco must monitor its strategies on a regular basis so that it is able to measure the growth from such strategies and so it is able to evaluate the growth of company on the basis of such strategies. This is also helpful for the company in taking corrective actions for modifying its strategies for achievement of organizational goals and objectives.
This report has concluded the importance of strategic management in the business for the achievement of overall goals and objectives that are related to such business. This report has been prepared considering Tesco where the major aspects relating to strategic management of Tesco have been covered in this report. This report has focused on various concepts that are related to the business of Tesco such as core competencies of Tesco, industry attractiveness of Tesco, competitive advantage of Tesco and other such factors which are related to strategic management of the company. This report has also provided certain recommendations to Tesco which are helpful for the company in the enhancement of its strategic management.
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