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Evaluation of the Company's Strategy - Coursework Example

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Management Report 2 – Evaluation of the Company’s Strategy Executive Summary Tesco PLC’s strategic planning and implementation has favored the application of various frameworks that have allowed the company to achieve tremendous success in the UK. However, the dynamics of the external environment, competitive pressures, economic instability and drastically changing consumer preferences have adversely impacted the company’s success in recent years…
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Evaluation of the Companys Strategy
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Download file to see previous pages This report assesses the current strategy of the business in the light of the Ansoff Matrix, the BCG Matrix and the SAFS Framework. The discussion also provides pertinent recommendations regarding the development of future business strategy with special focus on emerging markets and the impact of diversification. Table of Contents Executive Summary 2 Introduction 4 Analysis and Critical Evaluation of the Organisation's Strategic Position 5 Analysis of the Organisation's Strategic Direction 6 Ansoff Matrix 6 BCG Matrix 9 SAFS Framework 11 Conclusions and Recommendations 12 List of References 14 Introduction Headquartered in Hertfordshire, United Kingdom, Tesco PLC stands as one of the country’s premier supermarket retail chains while, maintaining its global standing in the category of top three multinational retailers (Henry 2008: 77). Presently, the extensive operations of the organization serve 14 nations and provide employment to around 520,000 dedicated members of the workforce, additionally, the global sales of the business amount to a staggering ?72 billion with a reported increase of 5.3% in the group’s pretax profit from the previous year (Tesco PLC Annual Report 2012). Tesco’s evolution as one of the leading supermarket retail chain of the UK has been documented by strategic analysts for the purposes of assessing the progress of the public limited company in a dynamic and highly competitive business environment. Over the years, Tesco PLC’s adaptation to the changing economic conditions has been marked the initiation and implementation of various strategies. As stated by Hensmans, Johnson and Yip (2013: 5) to ensure that an organization’s future plans yield successfully or desired results, a business must modify or advance its strategic framework in a manner that is compatible with the extent of change in the environment in which its operates, as a failure to abide by this rationale may lead to the creation of a “strategic drift”. Assessing the strategic planning and implementation of Tesco PLC Hensmans, Johnson and Yip (2013: 5) comment that the organization’s process of continuous change did not surface within a specific timeframe; it was in fact a gradual and ongoing process which was characterized by Tesco PLC’s entrance into the non-food market after building a strong presence in the foods category. Additionally, establishment of appropriate distribution channels and development of the company’s supply chain also comprised of this effort of modification to effectively address the market dynamics (Hensmans, Johnson and Yip 2013: 5). The preceding discussion postulates that strategic planning and implementation is a comprehensive concept that must be examined through a multidimensional perspective. In the light of this understanding this report presents an analysis and evaluation of the existing strategy of Tesco PLC by incorporating the assistance of pertinent tools and techniques of strategic management. In conclusion the report also presents recommendations to the Board of Directors to assist the development of future business’ strategy. Analysis and Critical Evaluation of the Organisation's Strategic Position The critical analysis and evaluation of Tesco PLC can be conducted effectively by integrating the factors which exist in the ...Download file to see next pagesRead More
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