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Business Strategy Assignment Sample 2

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Business Strategy Assignment Sample 2


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A business strategy can be referred to as a comprehensive set of actions and activities that a company further utilizes to attract their customers, compete effectively, improve efficiency, and meet organizational goals. It sets out how to run a business to achieve the desired results. This assignment has explained how a business strategy of a company (Tesco) is relevant to understanding the relationship between the various environmental influences that affect an organization's strategy choices. This also demonstrates how defined methods of stakeholder planning create strategic options that generate value for stakeholders and strategic positions within a dynamic and evolving corporate environment.

A brief overview of the organization

Tesco is the largest supermarket and retail chain in the United Kingdom. It offers a wide range of products and services, from fresh fruit and baked delicacies to financial and telecom services. Tesco has various outlets across the world and mainly in the countries like Europe, the USA, and Asia. This retail company has about 13% share of the total retailing sector of the UK. It had its record-breaking sales of more than £1bn in one week in 2010 despite the economic downturn. In the UK, it has almost over 2,200 stores running from hypermarkets to small Tesco Express high street outlets. Tesco sold assets for other businesses while developing its product line.

Understanding and knowledge of the business strategy of Tesco

Tesco’s Vision and mission

Tesco has carved out a niche as a consumer purchasing venue. Tesco employs several business methods that can aid in the company's expansion.

Tesco's marketing strategy tries to regain stockholders' trust in the company. The corporation is concentrating on the headline "Every Little Helps" to improve its traditional competitive edge in the sector(Magerakis and Habib, 2021). Advertisements, boosting sales, special events, and media relations are among the marketing interaction mix elements used by the storage company to communicate this message to potential customers (Aiello et al., 2020). The reason of Tesco’s expanding business is due to its huge number of stores all across the country. The company also provides other retailing services, meeting the consumers need. Tesco follows the ultimate policy of "serving the consumer." The most important part of any business is to keep the consumers happy. This policy cost less than hiring new workers.

Current issues, perspectives, and debates in the field of business strategy

Latest News for Tesco performance

The  annual revenue that Tesco has earned in the year 2020-2021 are of about 53 billion British pounds (Hashim et al., 2021). The revenue has increased by about one million that the last year. In 2020/2021, the overall earnings fell to 1,866 million. The corporation faced a great loss of about  0.9 percent of its market dominance  between 2017 and 2021 and currently has a pricing power of 27 percent (Sreenivasan et al., 2018).


Strategies of Tesco

Tesco follows a four-part strategy in order to increase their business. The strategies include:-

a solid UK primary business, non-profit shop, retailer services, and global expansions and earning. The main aim of the company is whatever they do, they add a smile to the customers face (Rosnizam et al., 2020). The retailing firm also tries to set its prices in a manner that is affordable for everyone. The company provides each of the small business and even the customers a huge saving opportunity and intends them to have a great purchase. Tesco has always tried to reach out to its customers in the best possible way.

Brand Image Strategy

One of the most important strategies used by Tesco, which also influences a lot in their strategic decision-making, is the Brand image strategy. Tesco is a great brand which uses their branding name for selling a wide range of products which is of greater quality and cheaper price. This is eventually an excellent technique of engaging the customers and the customers will no longer opt for the alternatives (Guo and Wang, 2019). Tesco now sells various products, including foodstuff, beverages, household items, garments, and banking sectors.

The target market which Tesco chases is the customers who are not economically very sound. They cut the extra costs and sell the products without keeping much profit. The main strategy they use for earning is huge customer engagement. Tesco begins selling premium goods in the mid-price category with a retail sticker price (Evans and Mason, 2018).

For each type of customer, Tesco has its products. Even the company has expertise in other segments other than just retailing. For the high-income customers, Tesco has the Tesco Finest. All the products of Tesco's finest have been created with superior exotic materials, and some of the dishes are created by famous chefs. Tesco now is also concentrating on the toys of the children. They supply a wide variety of toys to appeal to a wide variety of customers. The Tesco Bakery also serves delicious cakes, muffins, bread, and even freshly baked cookies at a very affordable cost (Lomoio et al., 2020). Tesco began delivering a very appealing offer for considerable quantities to customers' homes to be purchased without difficulty.

Globalization Strategy

Tesco's b performance helped the company to enter into the US marketplace. Tesco is going to launch 100 fresh young, convenient community supermarkets in California and various other companies (Krummel, 2022). Tesco has  been successful in establishing the  stores in a number of US cities to assist a number of businesses. This was an expensive and challenging operation even for organizations being well established in other international markets.

Growth of Tesco due to its strategic planning


From the above table, it can be concluded that the company’s revenue and sales have increased all over the years due to their strategy. However, due to the pandemic in 2020 and 2021, the sales and revenues of Tesco have fallen.

In 2020, the company's sales were the second least of the last five years. The company covered up its sales in 2021.

SWOT Analysis of Tesco (for understanding the weakness and strengths)



Tesco can be referred to as one of the United Kingdom’s largest retailing companies, which have been serving customers since 1919. In comparison to any other retailing companies like ASDA, Sainsbury's, and many more, it has the maximum sales and revenue. Compared to other supermarkets in the United Kingdom, the sales and revenues of Tesco are pretty high. The company's profit margin has faced a step rise of 28% very recently (Brannen, Mughan, and Moore, 2020).

Tesco is the largest of the four retailing leading retailing companies and consumes a considerable part of the grocery retailing sector. It gave a perfect competition to ASDA and surpassed it very recently. Not only in the UK, but Tesco is also one of the globally most successful companies since it has its companies in more than 14 countries with 6800 stores (Direction, 2019). Tesco has introduced various store formats. Tesco's separation strategy has paid the seller profits.

Tesco has more than 743K jobs worldwide. Named the largest opportunity generator in Europe.

Tesco never leaves a chance to improve their business, and thus they utilize the advancing technology to improve their business. The company makes excellent use of technology to enhance its customers' purchasing experience. The company has a phenomenal introduction that is the  RFID-enabled barcode technology, which can automatically calculate sales (Ahmed and Moosafintavida, 2020). They have also made M-commerce easier with their mobile payment application. The company has successfully developed a stable and effective supply chain management system that is simple, streamlined, and efficient waste management processes. Tesco maintains effective communication with suppliers.


In 2012, Tesco was asked to quit its business in Japan and the US. The business of Tesco has failed in these two countries, which has made Tesco leave the companies. Tesco's economic profits are being severely damaged by its vast debt (Lokanan, 2021). Although Tesco is one of the cheapest retailers in the UKUK, its more affordable model could result in lower profits.

Tesco stores and supermarkets in a few countries do not work well. According to analysts, Tesco failed to conduct a proper market analysis before entering these countries.

Tesco has recently acquired a lot to bar landowners from renting their properties to rival dealers. Tesco has a large budget for capital expenditure due to its large investment in the new shopping area. As a result of its ambition project, Tesco has little money left over from other activities.


Tesco recently launched a new store named Jack, which has a vast market opportunity and has also experienced remarkable growth. It has got the potentiality of expanding in numerous countries and operating as a low-cost competitor (Qing, and Cheng, 2019).

Tesco has a huge opportunity if they form great strategies and product alliances. This will help Tesco provide a wide range of products and services to their customers and meet the customers' needs. Although the company has consequences for all sections of the people, they still have considerable opportunities to improve.

Tesco can overcome their significant issues of business expansion if they reach out to joint venture. Local businesses have a huge opportunity to provide them with in-depth market expertise that can further help the company increase its efficiency and effectiveness.

Tesco can opt for this greater opportunity of expanding their business by incorporating the options of online order and free shipping offerings.

Recent developments have highlighted the dangers of handling counterfeit goods, such as coins and debts. Most customers prefer to buy cashless. And for that, Tesco has built a cashless store for the first time and plans to add more shortly (Liberadzki, Jaworski, and Liberadzki, 2021).

Tesco UK'sUK's health and beauty offerings are growing and are now a fast-selling retailer in the skincare industry. The company has a significant business profit in cosmetics and medicine and is a robust seller in the children's clothing industry.


Tesco has been recently accused of cheating their consumers by using designer farm labels and selling their food under the name "Woodside Farms." There were threats of legal action in the matter in 2017 (Bilbao-Terol et al., 2018).

Tesco's market situation could be a real threat as WalMart's growth and performance improved significantly in the last few years.

Government restrictions, legal and tax issues, financial constraints, and economic instability can affect Tesco's operations in critical areas.

Recent developments have increased business costs and have impacted many business lines.

Tesco is facing a vast supply chain disruption. This can adversely affect Tesco's business and profits. After the breakout of the recent pandemic, the company was forced to limit its sales. This has affected the company's sales and revenue, and the sales have drastically fallen in the last two years.

Influence of Business Strategy on strategic decision making

The various Strategies of Tesco (marketing mix)

Tesco’s Product Strategy

Tesco provides a diverse selection of products in each area, including brand, regional generate, and category as well as cooked foods, guaranteeing that shoppers have plenty of choices. It also sells as a finished product. It eliminates a b brand in practically every product line.

The company offers a diverse range of goods. The company's main products are grocery items, a supermarket, and retailing corporation. Tesco today sells various products, including books, garments, electronic parts, soft furnishings, gadgets, gasoline, web services, financial institutions, telecommunications, and online services.

Tesco’s Pricing Strategy

Tesco strives to keep its prices low in a way that is reasonably accessible without sacrificing customer satisfaction or going out of business. It uses a variety of strategies, including economics, to eliminate all costs in its business and ensure that it is happy.

Tesco's cheap strategy has made it popular with customers worldwide, allowing it to exceed all expectations of being the largest grocery store in the United Kingdom, replacing older products like Sainsbury (Shin, Kim, and Kim, 2020).

Many consumers predicted that it would start raising its prices once it stabilized, but as energy costs went up, it continued to undermine their expectations by keeping prices much cheaper. It is very much in line with the 'every little count' strategy. As a result, it has big stores with reasonable prices and even smaller stores with comparable prices leading to higher costs.

Tesco also uses a membership card system and allows consumers to have their inventory figures, which can be converted into cash over time. This is a great way to advertise the price of regular customers with special discounts. This particular strategy allows for further price reductions, leading to increased sales without significantly impacting profitability.

Tesco Place & Distribution Strategy

Tesco’s stores can be found all over the world. With online and in-person services, it has two main distribution networks for its commodities. In comparison to offline marketing channels, however, the popularity of online retail channels has been increasing steadily in the last few decades.

According to Tesco research, not all clients are satisfied with supermarkets like Tesco Extra, and it is impossible to open a few (Yunus et al., 2018). As a result, it makes use of smaller shops to make things easier to find. Tesco Extra shops are large hypermarkets that carry a broad array of products, including grocery shopping and retail goods, underneath one roof, enabling customers to conduct all of their regular shoppers for one journey or under each roof. 

Tesco’s Promotional Strategy

Tesco is promoting itself with tv commercials, and the activities of charities. It also makes extensive use of the advertising discounts offered such as buying one, getting one for free. Tesco 'Tesco Clubcard' commitment card enables the seller to understand the purpose of his customers. Tesco also offers and promotes its products online (Xinyun, 2018). The company also has a comprehensive online marketing strategy and engages with consumers through a variety of advertisements, social media promotions, and other avenues.

Techniques of strategic analysis to make strategic choices

The PESTLE analysis of Tesco (for understanding the external environment influence)


Tesco is an international organization operating in multiple countries around the world. The laws and their policies vary from one country to another. For this, the company must continue monitoring them now and making successful decisions. Having a stable political climate is very much necessary in for the success of any organizations in any country. Britain has a very stable government, which has helped Tesco rise to the top of the domestic retail industry.

The Brexit agreement has brought uncertainty among all the people around . The price of products increased by 3% to 5% as a result (Muli, 2019). Tesco's largest market in the United States. Higher international trade taxes have affected the income of all businesses that trade with the United States


The GDP of the UK in 2021 is $2.65 trillion. The covid-19 pandemic has an adverse effect on large corporations of the country. Tesco has a market share of about 28%. Unlike other companies, Tesco did not become a prime victim of the epidemic since it had a very b e commerce infrastructure and online purchasing system.

Although Tesco survived the blow of the pandemic, many small businesses failed to do so. Most of the companies were asked to close down and numerous people lost their jobs.


Tesco has always tried to reach out to the customers tastes and p

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