Tesco Strategic Options

Tesco Strategic Options

Expansion

Tesco has already established in UK, Europe, Asia and USA and has 6531 stores globally. Tesco continues to open into further new markets in order to increase its market share and market growth.

Diversification

This is a most risky strategy as organisation enters into new market where it has no information available or less experience. The risk could be failure of acceptance of products by consumers not making enough sales. Tesco has diversified its market by launching different non-food products into new markets.

Tesco enjoys long-term success due to being focused and Tesco has main core vision, which remains same while the corporate strategies change according to the changing world. Due to competitive global environment, if organisations do not have a clear vision they will lack direction and may not survive longer in future.

Tesco has established business strategies in order to help it achieve its vision and mission.

Vision

A vision is an overall view of where the business wants to be. Tesco is a company, which deals with customers and colleagues. Its vision will guide the direction of the organisation and how to make strategic decisions. Tesco’s vision is:

‘‘To be the most highly valued business by: the customers we serve, the communities in which we operate, our loyal and committed colleagues and shareholders.’’ Annual Review (2013)

Mission Statement

The vision, mission statement and corporate goals are all interrelated and identifies what a business is seeking to achieve. Tesco’s mission is

“We make what matters better” Annual Report (2013)

Tesco’s Strategic management believes that mission, vision and strategic objectives play a vital role it its...

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...evaluation:

During implementation process it is vital to check out the outcome of the progress.

Implementation Issues

Lack of ownership:

The main cause of a failure of plan is lack of ownership. It shows the employees might not have a stake or responsibility.

Lack of Communication

If communication is not effective then employees don’t understand their roles and responsibilities.

Lack of progress reports

If there are no progress reports and no tracking has been done on progress may cause a failure of a plan.

Conclusion

Implementation and analysis of strategic plan is vital for Tesco in order to survive in this competitive environment. The strategic plan should be kept updated according to the changing environment. Tesco is overall doing well and has kept satisfied its customer with their shopping experience and loyal to Tesco’s brand.