This is a report for introducing company strategy. I choose the company Tesco ( it’s main competitor is Morrison, sainsbury), And focus report on UK market.
You did the same essay about Mcdonald report for me. This time just change the company, the requirement is same.
In the beginning you should write Executive summary!
first say the report summarises…. (about Mcdonald company strategy).
secondly, say the Mcdonald company operation and its global market.
Then, write ‘Main finding’- say the strategy and company issues, like lose market issues….
At Last, give recommendation:
a, ………
b, ………
c, ………
The executive summary is about 200 word, so please introduce it briefly and Simplicity.
And then you should answer all of question in the file (key element) that I upload.
key elements:
1. Strategic Analysis
1.1 Profile of the industry
In what market(s) does the firm operate? What sector/s is it in? Who are the competitors? What is the market share size, growth and market share history of the company/competitors? What is the size, shape and recent history of demand, and what are the trends?
What products does it sell, and which are the most important to the firm? How large is the firm? How much has it grown in the last 5 (10, 20) years? How many employees does it have?
toolbox: Market share calculations
1.2 Organisational purpose
What is the company’s Mission statement? Stated Vision? Do you see any evidence in your research that the stated mission/vision of the firm is different from what it is actually doing? What ethical Values does it champion if any? How they engaged stakeholders? do stakeholder analysis.
(How they treat employees, customers, suppliers…, Sales & profit analysis for past 5 years)
What are its and its competitors’ key financial indicators for the last few years (e.g., Sales, PBIT, Capital Employed, ROCE)? How strong is its balance sheet? IT IS Very IMPORTANT.
(ROCE & Component ratios: their evolution over time and compared with competitors Organisational goals)
1.3 environment analysis
1.3.1 External: What are the most important environmental issues and changes affecting the firm’s ability to operate and to compete? (e.g., legal, political, natural environment, demographic etc).
tools: PESTEL, OT (from SWOT)
1.3.2 Internal: What capabilities or competences that are better than most firms in the market? In other words, what if any are sources of competitive advantage? In what area(s) is the company particularly weak? What resources (tangible, intangible, human resources) can the firm exploit? Which of these capabilities/resources are VRIN (valuable, rare, inimitable, nonsubstitutable?) What constrains expansion? (finance, production, people?)
tools: SW (from SWOT), VRIN, Distinctive competencies & resources. Constaints.
1.3.3 Competitive environment:
How concentrated is the industry, and how intense is competition? Bargaining power of customers and suppliers? Threat of substitutes? Threat of new entrants into the market?
toolbox: use Porter’s 5 Forces (must to use )
• Think about implications of each factor.
• What does each strength & weakness mean for their future? Something to exploit or build up? (ie strategies!)
1.4 Basis of competition & Key Success Factors
How does the firm compete in its market(s)? What is in the mind of customers in choosing between competitors? This implies KSFs – what every co. needs to do be successful.
toolbox: use ROCE & component (financial) ratios to identify KSFs
2.Strategic Development
2.1 Existing strategy(s)
2.1.1 current strategies
Based on all you’ve learned so far, how would you define the firm’s current strategy? How does the firm compete today & what do you believe are its strategic objectives?
toobox: Business stream level: The ‘Strategic direction matrix’ is a good way to bring together elements of other tools, (such as Porter’s generic strategy, Ansoff, …objectives, resource levels). One matrix for each business stream
2.1.2 corporate objectives & strategies
At the corporate level, how do you think the firm views its strategy? How do the existing business streams fit together, or complement each other? Has it gone outside to acquire new capabilities, technology, market share? Ie added a new business stream? Licenced technology or entered into a JV?
tools: Portfolio planning tools, primarily BCG & ADL because cash based
2.2 Generation of strategic options (must to use tools)
What are (feasible) strategic options available to the firm? How is firm going to continue to increase profits? Expand into new products/ services, sectors or geographic markets? Diversify? Sell peripheral businesses?
Look at cost reduction, and if so, how/where? Or do they compete on basis of differentiation? Or both?
Will the firm look to increase its share of existing markets, and if so, how?
Which options are financially feasible?
While you cannot do a full financial analysis, you should be able to make an order-of-magnitude judgment of feasibility based on the company’s existing balance sheet.
Try to come up with a range of feasible options; don’t get stuck on one or two that are your favorites (there’s time for that in your final recommendation).
Toolbox: A good starting point is ROCE and its related components – think about ways that firm could increase ROCE (by increasing numerator and/or decreasing denominator) within external & internal constraints
Plus… a broad framework of models:
For external strategies
• Porter’s generic strategies
• Ansoff’s matrix (market options)
• Expansion strategies
For internal (resource-based) strategies
• Value chain
• Resources/competencies
• Cost reduction strategies
Business stream identification & ‘Strategic Direction’ matrix for each business stream. Give ‘broad’ business stream direction assuming no constraints
Level of Analysis:
The 6x framework allows you to think of strategies applicable to the whole company (ie. Corporate) … or to each business stream
Some functional strategies e.g:
• hiring key HR talent
• competing on low cost, both operations & supply chain)
Keep your list of strategic options updated!
2.3 strategy evaluation- Investment VS Devestment
2.3.1 Business Stream level
• What are estimated costs & benefits of each strategic option? What are the major risks associated with each?
• What is the timing of required investment and expected benefits?
• Ideally, investment timing and implementation will be staggered (ie, not all occurring at the same time)
toolbox: Use BCG or ADL matrix( must to do ). Position on matrix determines priorities between business streams & between any other strategies – given that cash, time, people etc are limited.
Likely ‘strategies’ & ‘investment strategies’ dependent on business stream position on ADL matrix. Helps to decide prio
2.3.2 Corporate level:
After evaluating and ranking strategic options, then evaluate and rank the overall portfolio of SBUs.
• Are there any Business streams that you think the company should divest (sell)?
• Any new product /market business streams available by acquiring or licensing new technology? (Ansoff). Related diversification?
• Any geographic areas the company should consider entering/exiting at the corporate) level? Strategic acquisitions /disposals?
• Use BCG or ADL matrices to decide prioritise between business streams
• Rank business stream-level strategy options in a list – you’re ranking the various business stream strategies, given that there are limited resources (ie, not all business streams can do everything they want)
toolbox: Cash profiling prioritises your list of strategic options. Compare the business stream’s or company’s cash generation from existing operations with the estimated investment required for new strategies (if using BCG or ADL matrix).
Make basic, order-of-magnitude estimates of cash generation (from existing operations) versus investment requirements, based on the information you have – just show estimates
2.4 Choice of strategies
Based on the ranking above, choose the strategies that you recommend the firm should implement over the next 5 years (& beyond).
for example: restructure supply chain, improve R&D….
3. implementation
3.1 What are the major implementation issues for your recommended strategies?
3.2 What is the timing of each major strategic initiative, and the key milestones of progress within each strategic initiative?
toolbox: Gantt chart or other simple bar chart to show key actions & timing. Milestones. do it in detail please- MUST TO DO IT
3.3 performance indicators (use table)
3.4 How should the company address the major risks associated with the strategic options?
What controls should be put into place to address these risks? plan B?
And you should add in-text reference to table and diagram.
You should point out where to get the data. reference is very important.
And could you add such as ‘ figure 1: BCG Matrix analysis ‘ after diagram and table.
Every part you should use tools. give relevant Data.
Check you grammar also. Thank you.
you can reference Tesco annual report in recent years and you could use website in Harvard Reference.
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