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    Unit 5 Business Strategy Level 5 CBC College


    Each firm has to make high-level plan to accomplish their goals. Business strategies support the entities in gaining competitive advantages and strengthening financial performance of it (Fulford, 2013). Present study is based on TESCO which is an international retail brand and a global market leader. It has recently expanded its operations in 12 countries. It treats its employees as assets of the business and develops strong relationship with them so that they retain them for longer duration.

    Current assignment help discusses mission, vision, goal of Tesco. Furthermore, it will carry out environmental audit and explain significance of stakeholder analysis. It also assess role and responsibilities of personnel charged with strategy implementation.

    Task 1

    1.1 Mission, vision, goal and core competencies of Tesco

    Tesco is an international brand; more than 60% profit of the business is generated from UK and has many stores across the world. In the year 2013, Tesco has employed 530000 employees (Galpin and Whittington, 2012). It always prefers to meet the standards and gain competitive advantage in the market.

    Mission and Vision

    Tesco pays attention on making effective business strategies to enjoy long-term success in the market. Vision is to remain constant and adopt new technologies to gain competitive advantage in the market (Harrison and John, 2013).

    Mission is to provide satisfactory services and products to the consumers and make them loyal. Its statement is to expand business and enhance its revenues.


    Its objective is to enhance its sales revenues and increase customer loyalty. Also to improve quality of products so that satisfaction level of consumers can be increased (Hill, Jones and Schilling, 2014).

    Core values

    Values of the firm play a significant role in the overall success. Corporate Social Responsibility (CSR) is an effective element of the business. Cited firm fulfils its corporate responsibility towards society and environment. It helps organization in creating positive image in the mind of clients and sustaining in market for longer duration. By fulfilling its CSR, Tesco complete its commitment towards society. Overall success of corporation is highly depended upon its core values (Omar and Sawy, 2013). It is working as responsible retailer in the market and was awarded for Green Retailer Of 2012.

    1.2 Factors to consider for formulating strategic plans

    There are various factors that considers by the higher authorities while formulating strategies:

    • Analysis business environment: It is the most essential element that need to be considered.. Tesco needs to look upon its strengths, weaknesses, and financial resources of the firm before making any strategy. This helps entity in performing well in market and making effective strategies (Shavarini and et. al, 2013).
    • Cultural and management aspects: It is another major factor that needs to be considered by Tesco, Cited firm has to look upon existing culture and has to improve its cultural in the organization so that new strategy can be implemented in the corporation in efficient manner. . Thus, this is another major factor that needs to be considered in order to make effective strategies (Smith, 2013).
    • Political and economic conditions: If Tesco look at the economic condition then it will be able to identify consumers buying capacity. it will help in making strategy inorder to manage its cost well. Furthermore, changes in law and regulation impact on the business unit greatly (Stonehouse and Houston, 2013).

    1.3 Effectiveness of techniques used by Tesco in developing strategic business plans

    There are various techniques that can help Tesco in developing strategic business plans. Two effective techniques as described below:

    BCG planning technique

    It is strategic planning tool that concentrates more on product life cycle. It analysis the product which can create value for the business. It focuses on market share and market growth. The major four elements of this strategy are Star, dog, cash cows and question mark.

    Tesco is required to invest in such product that gives good return and has high market share. By this way, more people will buy this product and entity will be able to enhance its revenues to great extent (Galpin and Whittington, 2012). This technique is impressive in measuring market share and growth rate of the firm. Thus, Tesco will be able to invest in the products which have high demand in the market.

    Strategic position and action evaluation (SPACE)

    It is another model that helps in determining internal and external strategic action of the business. This is the tool that looks upon external environmental factor that can impact on business and its stability. This is beneficial tool to build future strategic plan to attain objectives of the firm. In the absence of internal and external environmental analysis Tesco cannot be able to formulating good strategies (Harrison and John, 2013).

    Task 2

    2.1 Strategic position of Tesco

    SWOT analysis based on Porter's five forces are the major theories that help the organization in analysing its strategic position of Tesco. This is the model that helps in identifying strength, weakness, opportunity and threats to the business unit.


    • Tesco is the global brand which has won many awards in the retail industry for its amazing work and fulfilling commitment towards the society.
    • Its financial strength is very strong which helps firmin sustaining in the market for longer duration.
    • Tesco takes support of advance technologies that aids entity in improving efficiency level of the operation and enhancing customer services (Omar and Sawy, 2013).



    • However, Tesco is the global brand but some of its subsidiaries are not performing well in the market which decreases satisfaction level of consumers.
    • Tesco is depended on the UK market; more than 60% profit is generated from this market which creates difficulty for the business.
    • Due to high competition now corporation has made changes in its pricing strategy which affected its revenues to great extent (Shavarini and et. al, 2013).


    • It has opportunity to expand its operations in many more countries.
    • Tesco can take support of digital entertainment sources and can provide online services to the consumers.
    • It can enter into emerging market that can help in increasing its number of consumers


    • High competition is threat to the Tesco.
    • Changes in government laws create pressure on the business.

    2.2 Environmental audit

    PESTLE analysis is a technique to identifying a firm’s external environmental conditions. (Fulford, 2013).

    • Political condition: It is the element that defines the political condition and its impact on the business unit. Tesco and entire retail industry get affected by the political conditions. Changes in tax rates, legislation affect the business unit because it affects its operational working. Tesco always follows rules and regulation that help cited firm in managing operations effectively (Galpin and Whittington, 2012).
    • Economic factor: It affects consumers buying capabilities to great extent. In such condition, sales of company may get affected. Whereas if there is good employment rate and people have adequate income sources then it will help in raising financial capabilities by this way they will spend more in the retail products. Thus, this component affects the operational functioning of business (Hill, Jones and Schilling, 2014).
    • Legal factor: It impacts on operations of Tesco. Cited firm needs to concentrate on laws . Changes in any law force the company to make changes in operational process. If government makes modification in employment laws then workers will feel happy and they will work in the organization with satisfaction.
    • Social factor: Tesco always concentrate on test and requirement of the consumers and accordingly provide those goods and services (Harrison and John, 2013). Thus, it started increasing the amount of non-food items that helped the firm in increasing sales significantly.
    • Technological factor: Retail stores of Tesco have intelligent scale techniques; self-checkout machines, POS machines, and wireless devices (Smith, 2013).
    • Environmental factor: Company fulfil its responsibility towards environment. It mainly deals with green operations and work in a manner that reduces carbon emission. It implemented recycling process in order to minimize wastage.

    2.3 Significance of stakeholder analysis

    Tesco has many stakeholders, these stakeholders are: employees, customers, government, managers, suppliers etc. they all have high impact on the business unit (Hill, Jones and Schilling, 2014).

    Stakeholder analysis




    Information needed to give




    New products, benefits for them




    Dividend policy, product feature, reward system




    Tax paid, annual revenue report




    Credit policy, dividend, profitability

    Significance of stakeholder analysis is as described below:

    • By identifying importance of supplier in the business, entity can get to know how they can impact the Tesco. That helps them in making effective strategy in order to develop relationship with them. So they can provide quality raw materials to the business and company can offer quality goods to the consumers (Stonehouse and Houston, 2013).
    • Stakeholder analysis helps the organization in developing healthy relationship with the employees. By this way, they feel valued and perform well in the firm. These satisfied employees concentrate on needs of consumers and provide them products and services as per their requirements.
    • Stakeholder analysis helps Tesco in minimizing conflicts and increasing revenues of the firm.

    2.4 New strategy

    Aim of Tesco is to provide high quality products to consumers so they feel satisfied and become loyal. Tesco needs to adopt an off matrix strategy. This will help the firm in gaining competitive advantage and identifying position of the firm in the external market. In this strategy, Organization is required to take support of market development and product development strategy (Fulford, 2013). This will help in fulfilling needs of the consumers and providing them high quality products. By this way they will be satisfied and will become frequent buyers of company.

    Task 3

    3.1 Alternative strategies

    For market entry strategy, there are strategies like Merger and Acquisition where merger is defined as the collaboration of two companies probably having same product line and it happens when any company requires a effective solution for a special market whereas acquisition is the hostile takeover which can happen when some other organisation buys the maximum share of other companies. Franchising can also be one of the most effective strategies for getting entry in a new market (Armstrong and et.al, 2015).

    In the substantive growth, one looks for the integration which can be horizontal or vertical and can be relatable or non-relatable diversified. These strategies are often applied through acquisition, merger or a joint venture rather than an organic growth. Opting franchising can provide tools for external growth production which is not applicable to every business. Where horizontal integration means merging of a company with a competitor and vertical integration refers as merging with the supplier or distributors.

    In limited growth, one can apply market penetration strategies where a company promotes its existing products to the customers and can increase its revenue by promoting, repositioning or brand changing and also market development strategies can be applied.

    On the other hand, retrenchment strategies also known as disinvestment strategy, is the one where a company cuts down or reduces its product.

    3.2 Justification for chosen strategy

    There is a type of strategy which TESCO can apply-substantive growth, where the effective application of strategies like product development, market development, vertical and horizontal integration can be utilised

    Where market development leads to use their current existing product in a new market which means that TESCO will keep their product and it but they would market it in a new way. This type of strategy is applied in new countries where market doesn't know about the products. There can be some issues related to it which changes to increase the attractiveness for niches, or describing a new way to use the product (Johnson, 2016).

    Product development is an essential part of this strategy where product features can be enhanced in many ways. Innovative modification is done with the product to replace the existing product. Here company leads to expansion and planning of new product, and replacement of all existing products takes place and marketed to the customers. In addition, various integration can be followed which includes collaborating with other competitors in the market or with the suppliers and distributors so that they can get recognition ina particular market.

    Task 4

    4.1 Role and responsibility of personnel

    Top Management/ Board Members of TESCO

    Their main responsibility is while the entrance of company into new stores in other countries which is completely new to them, all the responsibilities comes on the shoulder of Board members as they are required to get fund and permission from government to run their stores in their areas.


    Their role is to accept the challenges and needs of new customers in the region (which is new to them) and where company needs to establish IT in future. People or employees who are experienced may share it with the new employees for effective working off their store (Vahlne and Johanson, 2017).

    Human Resource

    HR department should recruit right kind of people at the right place and time for effective working.

    Sales and marketing team

    They are responsible for marketing of product in new region. It analysis the market and develop strategies that are beneficial to increase in the sales of their products. They should be able to promote their store successfully in new countries.

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    Middle Management

    Middle management should be able to divide the budget require for every activity efficiently so that every activity would get proper funding for the successful implementation.

    4.2 Resource requirement in implementing new strategy

    Proper combination of resources leads to successful implementation of new strategies. Resource is an important element for the organisation of processes which are operational in a TESCO .With this regard first requirement is of financial resources. It is equally important to get financial funding for opening up of stores at new places and even hiring of new employees and acquiring of inputs requires funding. Funding sources are identified which can be legal as well informal sources which would facilitate their working properly. Also the information resources are required which keeps all the records of their customer's account through which they are able to do successful transactions (Chkanikova and Lehner, 2015).

    However the team of HRD in TESCO has an aim for the recruitment of staff members who are perfectly eligible for their store and have proper knowledge of the operations which are performed in their stores. They also provide rewards to their employees for their good work which not only motivates them but also pump them up to provide quality output.

    Fulfilment of employee is making sure so that they are provided a good working environment to work within. It also helps to achieve their task successfully with the optimum usage of available resources.

    4.3 Contribution of SMART targets for strategies

    SMART targets help an organisation for better understanding of their goals and make them able to work under deadlines. This improves the efficiency of TESCO. These can be measured easily and helps in the maintenance of transparency while creating evaluation of the performance of workers and company as whole.

    SMART targets which TESCO shall set can be:

    Gathering information

    Which includes the better understanding of market and identification of proper geographical locations for opening new stores which is very essential. It also includes raising of funds through investors and resource requirements(Guillén and Capron, 2016).


    Construction is very time consuming process. As for constructing a store there is a requirement of high labour.

    Infrastructure and finishing

    When a store is conducted, all the electrical appliances should be fitted properly and other furnitures like table, chair, washerwomen facilities and etc.

    Hiring and Training

    Hiring new employees and training them requires a time for about 6 months so it should be implemented well.

    Marketing and promotion

    TESCO should concentrate on advertising for their new stores which can be implemented through newspaper, televisions, radio and also through social networking websites. This process can take about 2 months.


    From the above report it can be concluded that effective business strategies help the firm in identifying its own position in the market and improving condition of the business. An off matrix strategy is considered as effective tool by this way Tesco can be able to enhance quality of the products and will be able to meet with the needs of consumers. This will increase brand image of the business and entity will be able to gain competitive advantage.


    • Armstrong, G.and et.al., 2015. Marketing: an introduction. Pearson Education.
    • Chkanikova, O. and Lehner, M., 2015. Private eco-brands and green market development: towards new forms of sustainability governance in the food retailing. Journal of Cleaner Production.107.pp.74-84.
    • Fulford, R., 2013. A case study of strategic enterprise resource planning management in a global corporation: Standardisation is the basis of competitive advantage. Journal of Systems and Information Technology. 15(1). pp. 117–132.
    • Galpin, T. and Whittington, L. J., 2012. Sustainability leadership: from strategy to results. Journal of Business Strategy. 33(4). pp.40 – 48.
    • Guillén, M.F. and Capron, L., 2016. State capacity, minority shareholder protections, and stock market development. Administrative Science Quarterly.61(1).pp.125-160.
    • Harrison, J. and John, S. C., 2013. Foundations in Strategic Management. Cengage Learning.
    • Hill, C., Jones, G. and Schilling, M., 2014. Strategic Management: Theory: An Integrated Approach. Cengage Learning.

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