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Strategic Analysis Of Tesco

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INTRODUCTION

One of the prevailing trends in today’s global market is the internationalisation of businesses. Businesses are experiencing growth in their foreign operations more than they do domestically. Automobile companies for example are experiencing stiff competition in the global market. In order to combat these undesirable trends and achieve superior performance, businesses need to come out with valuable strategies so as to better exploit and expand in the global market. A good strategy is a key component to the success of any company internationally and domestically.

According to Hill and Jones(2009) ‘superior performance   is typically thought of in terms of company’s profitability   relative to other companies in the same or similar kind of business or industry’

According to Robert Kelly and Janet Caplanhas a company is said to have superior performance when it has the capacity to recognize opportunities that can add value, the capacity to complete quality work on a time, the ability to act as a change agent, work through organizational politics, the ability to inform the manager of the progress and impacts of the project, the ability to inspire customers on a regular basis and also the ability to work across boundaries.

The strategies an organisation pursues have a major impact on its performance relative to rivals.

Hill and Jones (2009) define strategy as ‘a set of actions that managers take to increase their company’s performance relative to rivals’. Competitive advantage can only be achieved if the company’s strategy leads to superior performance.

Mitzberg defines strategy as ‘... the pattern plan that integrates an organisation major goals, policies, and action sequences as a whole. A well formulated strategy help to allocate an organisations resources into unique and viable posture based on its...

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