Essay About New Strategy Lo3 And Process Of Strategic Planning Lo2

Assignment Brief Business Strategy
London School of Business & ManagementBTEC Level 4 – HND BusinessCentre No79829Unit No & Unit TitleUnit 7 – Business Strategy Course TitleHND Business ( BTEC Levels 4 & 5)Lecturer’s NameStephen FettesAssignment Title Tesco plc Date Set19 January 2015Due Date17 April 2015Semester / Academic YearJanuary 2015 SemesterUnit Outcomes Covered:LO1.  Understand the process of strategic planning LO2.  Be able to formulate a new strategy LO3.  Understand approaches to strategy evaluation LO4. Understand how to implement a chosen strategyGRADING OPPORTUNITIES AVAILABLE Outcomes/ Grade DescriptorsAC1.1AC1.2AC1.3AC1.4AC2.1AC2.2AC2.3AC2.4AC3.1AC3.2√√√√√√√√√√Outcomes/ Grade DescriptorsAC4.1AC4.2AC4.3M1M2M3D1D2D3√√√√√√√√√Assessor:                        Signature: ______________            Date: ___/___/___        [pic 2]Assignment BriefScenario Planning is not just important for individuals but is also vital for the success of organisations. The strategic planning process (Johnson et al 2014) provides a guide to the complex series of actions which individuals and teams in organisations need to carry out over an extended period to achieve organisational goals. Planning makes it possible to evaluate the effectiveness of action against the business aims and objectives, and also helps to establish a sense of common purpose and corporate identity.  Organisations need to continuously monitor and evaluate the factors affecting their products, services and their customers, both in terms of what is happening in the general business environment and their own internal capability to cope with these changing factors.Tesco PLC is the third largest retailer in the world by profit, and the fourth by sales revenue.  Estimates vary, but it is claimed that for every £7 spent in UK retail outlets £1 is spent in Tesco. In terms of the grocery market, Tesco has a market share of well over 30%. The company was founded by Jack Cohen, a Polish, Jewish  immigrant, in 1919, as a group of market stalls in the East End of London (Well Street Market, Hackney). The name Tesco was adopted in 1924. By the outbreak of the Second World War (1939) the company had one hundred stores around the UK. The first Tesco supermarket opened in 1956. Since the 1990’s the company has increasingly diversified into areas  such as books, clothing, furniture, petrol, software, telecommunications, financial  services, internet services and music downloads.  As well as this organic growth Tesco has also acquired other business; buying competitive supermarket chains, such as Safeway, in order to increase their market coverage.  Tesco were one of the first supermarkets to introduce a loyalty card. They have a presence in eleven countries around the world internationally including Thailand and Malaysia. They were pioneers of internet shopping.However, since 2012 the company has reported a dip in sales. New competitors, including Lidl, Netto and Aldi have entered the market, and their aggressive cut-price marketing efforts appear to be eroding Tesco’s market share.  Recently Tesco appointed a new Chief Executive Officer, David Lewis (“Drastic Dave”) who used to work for Unilever, and put Matt Davies (ex Halfords) in charge of UK operations, in a bid to reverse the downward sales trend and breathe new life into the company.These are ‘interesting’ times for Tesco.  The new CEO and his directors face challenges from a variety of sources; from competitors, from changes in customer behaviour,  and from pressures in the economic and technological environment. Your assignment will consider the strategic factors affecting the company, evaluate its current and future strategy and discuss the implementation of possible new strategic options.