Table of Contents
LO3 Review the existing business plans and strategies, risk and competitive position for Tesco.
Review existing business plans and strategies for Tesco.
2.1.2 Evaluate the risk and competitive position of Tesco.
2.1.3 Evaluate stakeholder’s needs and expectations for Tesco.
Evaluate resource requirements and constraints for Tesco.
Evaluate Tesco’s communication processes to gain stakeholder commitment
Monitoring and evaluation systems for the implementation of the strategy plan
LO4 Propose, evaluate and select a new product or service ideas for Tesco.
Critical evaluation of tools available and their effectiveness for new products or services.
Evaluate the relevant ethical and CSR (Corporate Social Responsibility) issues for the new product or service
LO2 Integrated strategic marketing plan and campaign for the launch of the new product or service
Segmentation and targeting.
Extended Marketing Mix.
Business success mostly lies in the proper management of the resources of a business. Utilization of the existed resources and assets of the business relies on the strategic plans. A business needs to review their risks around the areas and location by internal and external impacting factors like strengths, weaknesses, opportunities, technologies, political, governmental, legal, environmental etc. The business then needs to evaluate the competitors in the business areas (Hiriyappa, 2018). Because the competitors influence all the activities another company applies like products innovation, patent design, food-grade, food value, ingredients etc.
The innovation process of new products and segmentation plays vital importance in making business international, (Ostrom and Wilhelmsen, 2019). This paper discusses the existed business plans and strategies for Tesco Plc. The report discusses the application of the Ansoff matrix and BCG Growth-Share Matrix in the contexts of Tesco. Secondly, the report evaluates the risk and competitive position of Tesco. It describes Force field analysis and Porter’s Five Force Analysis from the perspectives of Tesco. Thirdly, the report evaluates Tesco’s communication processes to gain stakeholder commitment and implementation strategy plan on the contexts of Tesco. Finally, the report proposes, evaluates and selects new products or services for Tesco.
LO3 Review the existing business plans and strategies, risk and competitive position for Tesco
Review existing business plans and strategies for Tesco
Here below are two business models: Ansoff’s matrix and BCF Growth-Share Matrix are discussed to review the existed business plans and strategies for Tesco Plc(Hiriyappa, 2018).
Ansoff matrix for Tesco
Ansoff matrix is a very useful tool to describe the existed business and to new segmentation of the business. That’s why this matrix is known as the ‘Product-market’ matrix or ‘Product-Market-Expansion’ grid.
The model discusses four strategies of business to new segmentation: a) product development, b) diversification, c) market penetration, and d) market development.
Market penetration is the process of how the business plans the products of the existed market. In this process, the business reaches its products to loyal and liberal customers. Potential customers play a very important role in developing business. According to Zentes et al. (2016), Tesco tries to connect the existed customers by offering discounts to sell their products. Diversification strategy is a significant application by Tesco to create new products. Companies diversify the products according to demands and choices by the customers. Then the company develops their product with design, food-grade, ingredients and healthy food. Every activity of the company is set for the market development and internationalization of their business.
In the market penetration strategy, Tesco offers its products and services to loyal customers. Potential customers come forward to purchase the products from Tesco. In the market development strategy, Tesco finds out the new markets and offers the existing products to the customers. In the product development, Tesco develops new products with new features and characteristics and offer it to the loyal customer in the existing market. In the diversification strategy, Tesco develops and produces totally new products and introduces these products in a new market.
BCG Growth-Share Matrix for Tesco
Every business needs to portfolio analysis of the products, market, share, sells and many more within the business. In this context, the Boston Consulting Group (BCG) growth-share model is a significant tool to prioritize and allocate the resources(Lee, 2019) of the business organizations and others. This matrix shows the market rate growth on the y-axis and in the x-axis shows market share. The BCG growth-share matrix divides the products into four categories, known as “dogs,” “cash cows,” “stars,” and “question marks.” Each category quadrant describes its own set of products and services. According to UKESSAYS (2020), this tool is generally is in the Tesco PLC to check which products they need to improve, which one needs to sell or invest to which one etc.
The products that have a heavy flow of market and share become the first-to-market category consequently turned into Stars for the products. Some products may increase the cash that they sell and crosses the costs with profits named Cash Cows. The abundance of the products turned into Question marks products of Tesco PLC having a huge number of products but fewer sales. And the Dogs category products are considered as the low market share and low growth rate of Tesco.
The groceries of Tesco have the most market share and have a potentially high growth rate which is a star. Although, the clothing products of Tesco have a high market share but have a low potential growth which is a cash cow. The different recipes of Tesco are question marked as they have potential market growth but low market share. Tesco mobiles are marked as the dogs as they have low market share and low potential growth.
2.1.2 Evaluate the risk and competitive position of Tesco
Force field Analysis
The Force Field Analysis was first introduced by Kurt Lewin who was a social psychologist in the 1940s. This very essential technique is used by the business to identify, discuss and summarize the factors that support an organization or oppose the initiative (Harrington and Mignosa, 2017). Tesco plc applies the technique in their business approaches to evaluate the risks that arise in the procedures or operations of products and a business new entry in business, new competitors, products design updates, upgrade of food value etc.
Lewin’s Force Field Model analyzes the forces for changes like manpower, policies, environment, suppliers, shareholders etc. Forces to resistant the risks and restraining factors are analyzed by the business within its workplace. The force field analysis has suggested four forces by which an organization takes decisions on change or policy management. Firstly, forces for change including the change in the management structure, culture or another working system in the organization (Harrington and Mignosa, 2017). Secondly, the forces resisting change indicate the barriers to changing organizational structure.
Then, there are some driving forces that lead to change management and marketing strategy of the business. Finally, there are some driving forces that lead to restraint the change in the organization. Tesco has evaluated the drivers’ forces of the business. This technical tool helps Tesco to decide whether the authority proposes or changes in the business or initiative. This model can help Tesco to identify the competitive position of the business with Sainsbury’s, Jack’s, Mark & Spencer, Ocado, McDonald’s which restrains the normal flows of their products. Tesco hires talented management to implement the tool how they can minimize the risks and find estimated solutions for the business (Tesco, 2020)………
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