Tesco Strategic Approaches - Case Study Example

Tesco Table of Contents Introduction 6 Strategy 7 Strategic Approaches 8 VMSOT of Tesco 9 Vision 9 Mission 9 Objectives 10 Strategies 10 Tactics 11 Findings 11 External Analysis of Tesco 11 PESTLE Analysis 11 Political 12 Economical 12 Social 12 Environmental 12 Legal 13 Technological 13 Porter’s five Force 13 Threat of substitute 13 Bargaining power of suppliers 13 Bargaining power of buyers 14 Intensity of competitive rivalry 14 Threat of new entrants 14 Portfolios 14 Stakeholder Analysis 15 Stakeholder Mapping 15 Benchmarking 16 Internal Analysis 16 Culture and Strategy 16 Porter’s Value Chain 17 Primary Activities 18 Support Activities 19 McKinsey 7S Framework 20 Strategy 20 Structure 20 Systems 21 Shared Values 21 Style 21 Staff 21 Skills 22 Resource Based View 22 VRIN Model 22 SWOT Analysis 23 Strengths 23 Weaknesses 23 Opportunities 24 Threats 24 Justification of VMSOT Framework 24 Strategic Option for Tesco 25 Key Issues in Strategic Implementation 26 References 27 Introduction Tesco PLC is a multinational grocery and largest food retailer in United Kingdom. This general merchandise and international grocery retailer is headquartered in United Kingdom, England. Tesco PLC has stores across Europe and Asia. The market share in United Kingdom is around 28.4 percentages. The core purpose of Tesco PLC is to create value for customers that can effectively contribute towards the success of the company and earn lifetime loyalty. The company has diversified their business portfolio by turning in to areas like internet services, telecoms, financial services, toys, software, furniture, electronics, clothing, books and petrol. In the year 1919, the son of Jewish emigrants named Jack Cohen founded the company Tesco PLC. The brand Tesco PLC first appeared and came in to existence in the year 1924. Middlesex, Burnt Oak was the first place to open Tesco store. During 1960s, the company continued their growth through business acquisitions. The Tesco purchased Irwin Stores, Harrow Stores outlets, the Victor Value chain, Charles Philips stores and Williamson stores. The business motto of Jack Cohen is to pile high the quantity of productions and products and sell it at low prices. In the year 1987, the company has extended their business share by takeover of the Hillards chain. The takeover was for 200 million pounds. The company has diversified their business operations by entering in to internet grocery retail segment. In terms of revenue, it is considered as second-largest retailer globally. In terms of profits, it is third largest retailer (Pradhan, 2012, p.30). Tesco Plc is facing issues in pricing, maintaining brand loyalty, marketing strategy development process and store management (Keller, 2008, p.98). The management of the organization needs to focus on these things in order to overcome the possibility of future issues. The current situation of the company is not fruitful and advantageous. It is emerged that Tesco PLC has plunged in to more crisis. In the year 2014, a figure revealed that the total amount of spending by shoppers has been reduced by 4.5 percentages in a span of 12 weeks. The downgrade of total shopping percentage is believed to be world trading fall in the history of retail business. Furthermore, the total share of revenue generated from Tesco PLC in the UK marketplace is down to 28.8% (Worthington, 2012, p.171). In recent years, the tumbling share prices of the company have raised the awareness amongst the value investors and contrarian. People in United Kingdom are happy to shop from smaller stores. The availability of products with reduced prices is hurting the mega-store model of Tesco PLC. In UK grocery industry segment, the discounted strategy from German multinationals like Lidl and Aldi has been socially acceptable by customers. This can become problematic situation for Tesco PLC. The company tries to provide quality products with low prices on super stores (Stapleton, 2008, p.19). This strategy of selling higher and lower end products on large multinationals stores has created problems for the company. The slogan of the company during the time of nineties and twenties was everyman. In the era of market segment with augmented polarized on prices, the slogan of everyman is not good enough for the success of the company. Strategy A strategy is defined as plan which is designed and aimed to achieve overall and long-term aim. It is believed to be set of plan that is being deployed by business to achieve its goals and objectives. The decision making process of the Tesco PLC is augmented by its core values. In the year 2011, the company Tesco PLC has increased their revenue and capital investment to 1 billion pounds. The prime purpose this strategy is to improve and enhance shopping trip and experience for customers. The company has focused on seven part strategies (Smith, 2005, p.62). These strategies include growth in UK market, becoming outstanding international retailer, strengthen their other business portfolio like food business, growing their retail services, creating high valued brands, responsibilities on communities and building team for creating value. These elements of seven part strategy are primarily designed to enjoy long-term growth and increase their value on customers. The company is also focused on several principles for execution of strategies. The principles are products, stores, customer loyalty, customer service and value for money. The company is committed to provide innovative customer centric strategic for the betterment of organization and creation of efficient shareholder value. Strategic Approaches The international expansion strategy of Tesco PLC adopted in Asian countries as joint ventures with some of the local firms such as Charoen Pokphand located in Thailand and Samsung Group located in South Korea. The strategies priorities of Tesco PLC are to pursue their controlled global growth, foundation of multichannel leadership in every retail market segment and continuation of investment in United Kingdom. The company has initiated to establish multichannel leadership in every market segment. In ever changing behaviours of customers, the expectation of retailers to provide quality products and service is on rise. The establishment of multichannel leadership strategic approach is mostly providing seamless experience to customers and putting customers towards centre of development and innovation (Shavinina, 2003, p.45). In the era of technological advancement and advent of internet usage, the strategic approaches implemented by Tesco PLC to achieve online success are varied range of product development, improvement on online customer experience and introduction of home delivery part. It is believed that the rate of communication outflow and inflow are vital towards determining the experience of customers. The resolution of technical problems is critical for better customer experience online. The strategy approach of the company is to provide faster transaction time and improved customer services to the customers. The online warriors approach implemented by company can help to complete more orders than that of previous approach. Moreover, this approach enables to enhance customer relationship management structure and escalate service delivery. VMSOT of Tesco This part of the paper is based on identifying vision, tactics, strategies, objectives and mission of Tesco PLC. Vision The vision of Tesco PLC includes five elements. These elements are earning loyalty for communities and customers, innovative, full of opportunities, required around the world and winners locally. The vision of the company is to be regarded as exceedingly valued business by customers, stakeholders, committed colleagues and communities (Sarra, 2011, p.14). The company created a benchmark within the industry and set an example for other organizations. The company is effectively built around colleagues and customers. Mission The mission of the company is to create and enhance customer value for achieving lifetime loyalty and reliability (Ruder, 2008, p.91). The core purpose of Tesco PLC is to make whatever is better for the community and organization. Objectives The objectives of the company includes contributing customers with most reasonable prices and value for money products, meeting the requirements of customers, providing shareholders with enriched profitability approach, closely working with suppliers, development of talent through sound training and management performs. The company also wants to participate addressing key issues from food industries such as animal welfare, health, safety, hygiene and nutrition. The objectives set are on the basis of long-term (Pride and Ferrell, 2014, p.129). Furthermore, Tesco PLC also wanted to increase the sales and production of crude palm oil. This enlargement of crude sale can be done by increasing the rate of supplying organic products. This would benefit the company to increase the sales of crude palm oil. Strategies The seven part strategy is implemented by Tesco PLC is to maintain long-term sustainability. The growth of United Kingdom is determined by increasing their staff members in, introduction of more promotions and renovation of existing stores. The second part of creating high brand value involves development of own label brands. The company also focuses to be considered as exceptional global retailer in online and stores. This new strategy involves introduction of new fifty franchise stores especially in Azerbaijan, Armenia, Georgia, Kazakhstan, Saudi Arabia and Middle East. Furthermore, the company wants to grow their retail services. The potential future growth of the company is vital for sustainability. Tesco PLC wants to increase their responsibilities on communities. The demonstration of this strategic approach was initiated by three big ambitions strategies of the company (Pitt, 2012, p.22). The company also focuses to build their team with more values. The company has been committed towards keeping the vision as extremely valuable aspects and focuses on training effective leaders. Tactics The application of monopoly strategy over products has become problematic situation for small businesses. The aggressive tactics introduced by multinational enterprises like Tesco PLC to gain their planning and land permissions for construction of new large stores. The business tactics executed by the company are regarded as harsh and ruthless (NG, 2014, p.57). The company has focused on maximizing their sales by introduction of new geographic development strategy, identification of new customer for new market segment and channels and spending more amount of time and money towards the existing stores and customers. Findings The business tactics implemented by Tesco PLC has been heavily harsh and strict. In the era of globalization and competitiveness, it is critical for organization to adjust to the situational alteration. The company failed to change their tactics in accordance with alteration on customer taste and perception (Midler, 2010, p.11). This can be found that the company has effectively augmented their responsibilities towards betterment of the communities. This values and innovative approach can act as a pivotal strategic approach towards future growth. External Analysis of Tesco The external analysis is regarded the process of evaluation and scanning various external environmental factors of an organization. PESTLE Analysis PESTLE can be considered as one of the important strategic analytical tool that will help to evaluate the impact of external environmental factors on business performance of Tesco. Political In the era of globalization, the performance of Tesco PLC has been heavily affected by global political environmental factors. In the year 2011, the VAT rate was increased by UK government from 17.5 percentages to 20 percentages (Michman, 2008, p.99). The United Kingdom government aimed to limit the occurrence of medical problems and control rate of obesity by introduction of fat tax. These measures implemented by government have become problematic for Tesco to launch certain products. Economical The financial crisis has heavily affected the revenue of Tesco PLC. But there have been positive signs of retrieval from downfall of financial disaster (Mccalley, 2002, p.62). The economic growth is regarded as positive signs for Tesco PLC. At the time of economic recession, the disposable income is considered as low and lead to the increased of unemployment rate. Social The social environmental condition is not fruitful for Tesco PLC. The baby boom generation is increasing the number of elder people in United Kingdom (Marquardt, 2013, p.55). This leads to upsurge in people life expectancy and reduction in birth rate. The implementation of online shopping is an effective approach for Tesco. Environmental The fact of consequences of global warming is increasing highlight on environmental sustainability (Ma, 2014, p.48). The company is committed to lessen the use of greenhouse gases and consumption of energy. Legal There are several laws that have affected the Tesco PLC to widen their services and products. The United Kingdom government is reviewing the approach in which farmers are allocated with direct subsidies. The mutual agricultural policy is also being reformed by the government. The lowering of subsidies can affect Tesco t set farmers in accordance of gathering agricultural standards (Lencioni, 2012, p.34). Technological The technological condition in United Kingdom is critical for Tesco PLC. The country provides opportunity for the company to improve their distribution service, enhance cost efficiency and attain competitive advantage (Lamb, 2010, p.26). Porter’s five Force Porter’s five force model can be considered as an important analytical framework that will help to determine the impact of external competitive factors on business performance of Tesco Plc. Threat of substitute The threat of substitute for Tesco PLC is regarded as medium to high for most of the non-food items and low for most of the food items (Kotler and Armstrong, 2011, p.16). The substitute for main food retailers includes organic shops, off licenses and convenience stores. These substitutes are not threat for Tesco PLC. Bargaining power of suppliers This force is regarded as fairly low for Tesco PLC. The suppliers are mostly inclined towards major grocery and food retailers. Furthermore, they eventually lose their contracts for multinationals (Jeannet, 2005, p.44). The position of Tesco is at higher level to negotiate lower deal with suppliers. Bargaining power of buyers The buyer power is considered as fairly high. The switching cost for customers is low. The can change their mind and switch brands (Humby, 2007, p.77). Intensity of competitive rivalry The rate of competitive rivalry is regarded as very high. The company faces intense competition from competitors like Waitrose, Morrisons, Sainsbury and Asda (Hill, 2009, p.18). Every competitor is competing over promotions, products and prices. Threat of new entrants The threat of new entrants for Tesco PLC is low. This is primarily due to the fact that new firm required huge amount of capital investment to create their brand name and stay competitive (hall, 2007, p.83). Most of the top retail brands in UK such as Morrisons, Sainsbury, Asda and Tesco account for 80 percentage of retail market segment. Portfolios The portfolio analysis of Tesco PLC is considered as range of investment done by the company. Tesco PLC continued to grow their market share on health and beauty care products in UK> furthermore, the company invested 27 million pound on the year 2004 to deliver values to the customers. at the end of 2014, the store portfolio of Tesco in UK includes 247 number of Tesco Extra stores, 195 number of Tesco Metro stores, 1,672 number of Tesco Express, 482 number of Tesco Superstores, etc (Fyall and Garrod, 2005, p.65). in the year 2012, the company planned to invest more than 1 billion pounds on retail business industry to resuscitate their weakening and fading domestic business operations. Stakeholder Analysis The stakeholders are believed to be interest and stake in the company. The overview of external and internal stakeholders can be effectively presented by stakeholder mapping. The first step of stakeholder analysis is identification of stakeholders. The stakeholders of Tesco PLC are media, buyers, government community, managers, suppliers, customers and employees. The second step is prioritizing of stakeholder. In this stage, the stakeholders are prioritized for development in Tesco (Ferrell and Hartline, 2010, p.91). The development of engagement strategy is important part of stakeholder analysis. The methods involves during the process of engagement strategy are sharing, delegating, group facilitation, developing, presentation and meetings for change plan. The fourth stage is mapping their profile. The level of interest and influence is critical towards the analysis profile of stakeholders. Stakeholder Mapping The stakeholder mapping includes level of interest and power level from low to high. The factors include government, investors, customers and suppliers. The government is believed to have low level of interest. This is because Tesco PLC has bought certain alteration in their services. On the other hand, the suppliers, creditors, labour union and stockholder have high level of interest and high power (Doole, 2012, p.41). The employee, media and consumers from Tesco PLC are believed to have high level of interest and low power. The social organizations are low on power and low level of interests. Benchmarking Tesco PLC has stated that they will set new benchmark towards restoring consumer confidence and in food testing. The company vowed to create world class traceability and open their supply chain system to create new benchmark for other competitors in the retail sector. The benchmarking approach includes identification of problematic areas. Tesco PLC can predict and identify their issues. The techniques that can be implemented are questionnaires, surveys, focus groups, quantitative research and in-depth-marketing research. The second stage is to identify similar successful processes from other industries (Dibb, 2012, p.27). This includes improving service quality and making employees feel valued. The third stage is to survey practices and measures that can be implemented by Tesco PLC. The final stage is to implement effective improved business practices that include development of implementation plans. Internal Analysis The internal environmental analysis of Tesco will be conducted through the help of following models and analytical tools. Culture and Strategy Tesco Plc. can be considered as one of leading multinational retail chains based in UK. The organization has developed and implemented several unique strategies in business operation process in order to gain potential competitive advantages over competitors. However, the management of the organization has significantly focused on centralized organizational culture in which the management of the organization takes entire control over each and every decision making and strategy development process (Collins and Shemko, 2009, p.88). It is true that too much centralization and several hierarchies in the organizational structure affect organizational communication process. In addition to this, time and cost consuming strategy development process are the major consequences of centralized organizational culture. Lack of effective stakeholder engagement and centralized decision making process is actually affecting the workplace environment and employee motivation aspect. In terms of strategy, the management of Tesco Plc. has adopted and implemented the combination of both cost leadership and differentiation strategy. Both these business level strategies have individual advantages. Adoption and implementation of cost leadership strategy has helped the organization to offer products at economic and competitive price level to the target customers. This cost leadership strategy has helped the organization to minimize unnecessary business operation cost. Therefore, the management of the organization has easily provided the products at economic price level. On the other hand, differentiation strategy has helped the organization to offer differentiated ranges of products to the target customers (Chaffey, 2008, p.75). The combination of these cost leadership and differentiation business level strategy has helped to offer high quality and differentiated products and services at economic price level. Therefore, it can be stated that adopted cost leadership and differentiation business level strategy has helped to meet the expectation and satisfaction level of the target customers. Porter’s Value Chain Porter’s value chain can be considered as an important start5egic analytical tool that helps an organization to analyze its internal environmental factors. A value chain can be considered as a set of different activities, which an organization is operating in particular industry performers in order to offer high quality services and products for the market (Blythe, 2012, p.54). Value chain model consists of two activities, such as primary activities and support activities. Both these activities are discussed with respect to Tesco Plc. Primary Activities Primary activities include operation, inbound logistics, outbound logistics, services, and marketing and sales. In terms of operations, the supply chain management department of Tesco Plc is concerned with the management of external as well as internal business operation process that effectively transforms inputs into high quality outputs. Here inputs are labour, resources, energy and raw materials. On the other hand, outputs are products and services. In terms of inbound logistics, the management of Tesco Plc. always focuses on effective inbound movements of resources and raw materials, finished inventory and other associated manufacturing parts from suppliers to production units, warehouses, assembly plants, and inventory and retail stores (Augen, 2008, p.98). In terms of outbound logistics, the supply chain department of Tesco has effectively introduced skilled and effective employees in this supply chain management and logistics processes in order to ensure effective and efficient movement of the final products from warehouses, production units and retail stores to the customers. In addition to this, integration of advanced and high quality technological resources in supply chain management process has increased the quality aspect of the outbound logistic activities. In terms of service, the organizational management has applied advanced PR application supported by high quality and modern technology to ensure high quality customer service management process. In addition to this, the organization always motivates its employees to take care of the needs and satisfaction level of the target customers in order to maintain its brand loyalty in global market place. In terms of marketing and sales, the management of Tesco Plc. has implemented both push marketing strategy by developing the combination of both cost-leadership and differentiation strategy (Armstrong, 2002, p.32). In addition to this, effective marketing communication through traditional and contemporary social media promotional aspect has ensured effective communication between brand and end-customer. In terms of selling, the sales department has developed both direct and indirect selling strategy to support the developed push marketing strategy. Support Activities Support activities include procurement, technological development, human resource management and infrastructure. Effective procurement activities can be considered as the major success mantra for Tesco Plc. The organization always sources goods, resources, raw materials and services from high quality external agencies. This aspect has helped the organization to offer high quality products and services to the target customers. In terms of human resource management, it can be stated that the HRM department of the organization seriously takes care of all the HRM activities, such as recruitment, selection, interview, training and development process, and performance evaluation (Adrian, 2002, p.27). But, the organization is facing some human resource management related issues in this contemporary era. Lack of effective democratic leadership style, inadequate performance appraisal, long working hours, lack of effective workplace diversity and lack of effective compensation benefit for employees have affected the motivational aspect of the organizations. In terms of technological development, the management of Tesco Plc. has always focused on use of advanced technological resources in each and every business operation process. The organization has used advanced information communication technology in manufacturing, distribution, inventory management, logistics activities and other customer service management processes in order to gain potential competitive advantages over the competitors. Infrastructure of Tesco Plc. consists of finance, general strategic management, quality assurance, public relations, accounting, legal structure, organizational ethics and retail store infrastructure (Thompson and Martinn, 2010, p.87). The organization has focused on these things quite effectively. But, the organization has failed to improve its ethical standards as the organization has faced issues related to the corporate governance. It has affected the brand loyalty and brand image of the organization among the valuable external stakeholders. Most importantly, it has affected the business management process, strategy development process and decision making process of the organization. McKinsey 7S Framework McKinsey 7S framework can be considered as one of the important strategic management tool that will help to analyze Tesco Plc’s internal environment. Strategy In terms of strategy, the management of the organization has developed and implemented the combination of both cost leadership and differentiation business level strategy in order to offer high quality and differentiated products at economic price to the target customers (Sanchez and Henee, 2010, p.91). This aspect has helped the organization to meet the expectation and satisfaction level of the target customers. In addition to this, this specific strategy has helped the organization to maintain competitive advantages over its competitors. Structure The management of the organization has ensured hierarchical centralized organizational structure (Ray, 2010, p.98). This specific organizational structure has helped to take entire control over decision making and strategy development process. Systems Integration of advanced technological applications in each and every business operation process has helped Tesco Plc. to improve its procurement and overall supply chain management activities (Rao, 2009, p.73). Shared Values The organization has developed a common goal to offer quality products and services at reasonable price in order to maintain sustainability in business operation process (Proctor, 2011, p.18). According to the corporate culture, the employees are bound to obey the rules and regulations and should maintain disciplines. Otherwise, they have to prepare for penalty in case of any deregulation. Style The management of Tesco Plc has adopted autocratic leadership style in which the employees are bound to obey the rules and orders (Peng, 2013, p.23). In addition to this, the employees are not encouraged and motivated enough to take part in important corporate meetings and strategy development process. Staff The organizational always recruits high quality, experienced and skilled employees. It is true that the successful and positive business operation growth is the major consequences of the hard-work and effort of these employees in the organization (palmer, 2012, p.34). Skills It is true that human resource management department selects skilled employees. In addition to this, management provided effective training to employees (Lynch, 2007, p.12). The management of the organization never compromises skill and quality of employees. Resource Based View Resource based view can be considered as the basis for potential competitive advantage of an organization in which the firm applies set of tangible and intangible resources at the disposal of the firm. VRIN model can be applied in order to develop resource-based view for Tesco Plc. VRIN Model This model will help to evaluate whether the potential key resources fulfil the valuable, rare, in-imitable and non-substitutable criteria. Employees are considered as the major and valuable resources of Tesco Plc. The skill, experience, stress management, hard-working ability and full effort and employees have helped the organization to gain success in global market place (Fabio, 2014, p.59). Adoption and implementation of both cost leadership and differentiation business level strategy can be considered as rare but most important strategic resource for the organization (Henry, 2011, p.28). The combination of both these strategies have helped to provide high quality and differentiated services and products at economic price level. Forward and backward integration in logistics and supply chain management can be considered as in-imitable but one of the most important strategic resources of the organization. It helped the organization to enhance effective customer service management process (Hill, Jones and Schilling, 2014, p.38). Advanced technological resources and applications in business operation processes can be considered as important and non-substitutable resource option for Tesco Plc (Kotler, Burton and Deans, 2012, p.44). This aspect has helped the organization to bring efficiency and gain potential competitive advantages over competitors. SWOT Analysis SWOT analytical framework can be considered as one of the important strategic management tools that will help to determine internal strengths, weaknesses and external opportunities, threats of Tesco Plc. Strengths Strong brand image, high brand loyalty and effective financial strengths are considered as the major strengths of Tesco Plc. The organization has effectively adopted and implemented the combination of both cost leadership and differentiation business level strategy. The organization has a strong customer base and it is considered as largest employer in UK. The employees are experienced and skilled (Dransfield, 2001, p.19). Last but not the least; integration of advanced technological applications in each and every business operation process has increased its profitability and competitive advantage. Weaknesses Poor human resource management process can be considered as the major weakness of the organization. The organization has developed centralized decision making process. It affected the satisfaction and motivation level of the employees. Poor compensation benefit created serious issues like employee poaching (Doole and Lowe, 2008, p.89). Lack of employee engagement can affect the workplace environment of the organization. Opportunities The organization should try to focus on quality of apparel products. Effective quality management and R&D team will help to maintain quality control aspect. In addition to this, the organizational management should consider democratic leadership style and decentralization in business operation process in order to maintain employee motivation aspect (Choi and Cheng, 2015, p.42). Threats Inadequate economic environment can be considered as the major threat as it is affecting the disposable income and purchasing power of the consumers. Strict legal environment may also create difficulty for Tesco Plc. Last but not the least; it is also true that intense market competition and high market saturation can affect the business growth rate of the organization (Carollo, 2012, p.31). Justification of VMSOT Framework It is clear from the above analysis that the VMSOT framework of Tesco Plc is partially appropriate. According to the framework, the organization is committed towards the sustainable development of community, society and customers. However, the organization has integrated advanced technological resources in business operation process, such as logistics and distribution process in order to reduce carbon emission level. Therefore, it can be stated that the organization has succeeded to maintain sustainability in business operation process. In addition to this, the organization has initiated several CSR activities in order to maintain effective e relationship with the stakeholders. Integration of combined cost-leadership and differentiation business level strategy has helped the organization to offer high quality and differentiated products and services to the target customers (Boreham, Parker and Thompson, 2007, p.89). It actually helped the organization to meet the satisfaction level and needs of the target customers. However, the organization has failed to fulfil its promise regarding employee empowerment in the decision making and strategy development process. The centralization process affected the employee engagement approach (Blewitt, 2008, p.71). Therefore, the organization is facing high employee turn-over rate due to inadequate employee motivation aspect. Strategic Option for Tesco It is clear from the above analysis that the organization is suffering from human resource management related issues. Therefore, the top level management of the organization needs to consider effective democratic leadership, stakeholder engagement and decentralization in operational process. Consideration of democratic leadership style will help the organization to motivate employee to perform effectively. According to this leadership style, the organizational management and leaders will take care of the needs, satisfaction level and expectation of the employees. It is true that skilled and effective employees always expect standard compensation benefit against their hard-work. But, poor compensation process has affected the motivation level of employees. Therefore, democratic leadership style will help to improve overall workplace environment (Bains, 2011, p.92). In addition to this, integration of decentralization will help the organization to improve strategy development and decision making process as it will help the management to engage employees and other important external stakeholders in the strategy development process in which the management will gain several important and effective strategic options to implement. These strategic approaches will help the management of Tesco Plc to overcome the contemporary ongoing issues. Key Issues in Strategic Implementation It is clear from the above analysis and discussion that selected strategic approaches and options will help to overcome the contemporary issues that are affecting the business performance and effectiveness of the business operation process. But, there are some issues in these approaches that need to be considered. First of all, these are time and cost consuming process. 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