Strategic Analysis: taking TESCO as example
There are more than a dozen definitions about corporate strategy, centering on resources location, stakeholders’ satisfaction, environment adaptation, and management processes. Briefly, corporate strategy is aim to achieve organization’s mission, vision, and objectives via utilization of resources and environment, adaptation of appropriate policies and plans. Several fundamentals of corporate strategy are often be confused, including microeconomics, finances, marketing, management, and innovation. But in a dynamic, changing environment, it is a challenge for managers to all of these fundamentals. Therefore, in order to cope with this changing issues as well as the dynamic environment and make competitive strategic decisions, simplified models and tools are introduced into the strategy planning. For example, SWOT analysis, PEST models, Porter’s Five Forces models, 5Cs models, PIMS analysis, PARTS strategy, and 3C strategic models are involved to analyze the internal and external surroundings of organizations and the core competitiveness. Depending on the specific environment and competitive forces they are facing, organizations can take relevant models and tools to solve the practical problems. However, theory models cannot always help to solve the practical problems because of the gap between the practice and theory. Though applying these theories to practice, organizations also have to focus the improvement and modification of the theory models they used.
Here, we chose Tesco, one of the world top three retailors with more than 5,000 stores located in 13countires, as the practical case, and focused on its strategic management with SWOT analysis to analyze its environment and the Porter’s Five Forces models to investigate their process to core competitiveness. Without question, the success of Tesco was bound to the application of these theoretical models appropriately.