Tesco Strategic Planning Essay

For any organization, there is a need to have a certain focus and alignment. Common focus is provided to the work force with a common mission statement and vision that defines the organization. Vision further helps in promoting a common culture and defines the group objective that should be achieved collectively. For Tesco, it is very important to focus on planning because this is what defines the future of the organization (Tesco, 2006). One of the major strengths available with Tesco is that it is a very vast and elaborate firm in its sphere, which provides it vast, reach and enjoys a great market share. Specialization is another advantage that comes with large size, because most of the operations are carried out by highly skilled personnel. …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,