Tesco Strategic Options
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.
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.
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)
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 success and uses Key performance indicators to measure the performance of the organisation. KPI can be financial and non financial e.g. Balance Scorecard.
It helps to measure performances and to provide feedback to the organisations to assist them in achieving and implementing their core objectives. It does not only focus on financial performance measures, unlike other KPIs. They are four main perspectives i.e. Customer perspective, learning and growth perspective, business processes and finance perspective.
Comparison of core value and organisational objectives
Ethics are important to determine success of any organisation. If organisation behaves ethically well it will increase their reputation and will have a positive impact on organisations activities. Ethics should be embedded in organisations strategy and decision making processes. Tesco is corporate social responsible business and has made CSR as an important part of its strategy and also publishes its own annual CSR report.
Tesco’s Core Competencies
Core competencies of a firm will define the things in which an organisation is best. It will allow the company to differentiate itself and to gain competitive advantage. Core competencies of any...