Strengths Of Tesco
On the other hand, talking in terms of weaknesses, there are a few which come with large size and diversification, and the major one in this direction is lack of focus. When an organization diversifies in various segments and maintains a vast international presence, somehow it lacks in focus on one particular product line or operations. Goals are given to the work power with a typical statement of purpose and vision that characterizes the organization. Core competencies further aides in advancing a typical culture and characterize the gathering target that ought to be attained to all in all and also be abreast of competition (Neuliep, 2012).
AC1.2 Barriers in Formulating Strategies
Formulation of a common strategic plan for future development is a very critical function for any organization, and this includes …show more content…
To implement complete strategic planning function, it is very important to understand various methods which can be implemented. One of the primary methods which can be applied by Tesco is that of BCG growth share matrix, which helps the firm to identify the areas where the management should focus. Areas, functions and even products are classified in this matrix, based on their nature and outcome (Neuliep, 2012). This begins with “Cash Cows”, which is the most lucrative functional area for the firm, from where major revenue is generated, even in a slow moving market and is considered very beneficial for the firm (O'Neill and Phillip, 2011). “Dogs” refer to those areas or products which are very slow moving and generate a low amount of revenue, in short, “Dogs” are advised to be sold off. Next is “Question marks”, which are also termed as “problem children”, with an uncertain future and present performance, they require extensive research and include a lot of risk for further investment. “Stars” are highly volatile products and service divisions, which perform very well in a fast moving market and this is the area where the firm focuses a lot (Tesco,