The strategic position of Tesco’s Group plc.
The strategic position of Tesco’s Group plc
– You are a graduate trainee in the finance department of Tesco’s plc. – The company is about to review and update its strategic plan for the five years to 2025. – As part of this process the Finance Director has asked you to undertake a strategic analysis of the company and prepare a 2,500 word (+ / – 10%) in accordance with the following framework: 1- Executive Summary A concise overview that will enable the Board to become quickly acquainted with the purpose of your report, the models and frameworks you have used and the structure of your report. This section should capture the reader’s attention (200 words) 2-Company Overview A brief description of the business, i.e. its size, markets it operates in, and key competitors. (200 words) 3- Key Opportunities and Threats Identify what you consider to be the top three opportunities and top three threats for the company, in order of priority, explaining each and JUSTIFYING your reasons i.e. EXPLAIN WHY they are an opportunity or threat i.e. what might be the potential future IMPACT on the business. You could consider the following factors (not all of which may be relevant, and this is not intended to be a comprehensive list); • Competitors and industry rivalry • Barriers to market entry and threat of new entrants • Bargaining power of customers and suppliers • Political, Economic, Social, Technological, Environmental and Legal factors Note: You should refer to, and apply, appropriate analytical models and frameworks where appropriate (600 words) 4- Key Strengths and Weaknesses Identify what you consider to be the top three strengths and top three weaknesses of the company, in order of priority, explaining each and JUSTIFYING your reasons i.e. EXPLAIN WHY they are a strength or weakness and what might be the potential future IMPACT on the business. You could consider the following factors (not all of which may be relevant, and this is not intended to be a comprehensive list); For Strengths: • What key strategically important resources and capabilities does the business possess that provide it with a competitive advantage? • How can the company use these unique resources and capabilities to take advantage of new market opportunities or defend against external threats and competitors in the future? For Weaknesses: • What aspects of business performance need to improve and why? • How does its performance compare with that of its key competitors? • What have customers criticised it for? • How do third parties judge its performance / level of service? (600 words) 5- Financial Analysis A summary of the financial performance and position of the business, highlighting key areas of financial strength and weakness. Note: Financial Ratios should be included in the appendices of your report to support your analysis (300 words) 6- Conclusion & Recommendations With reference to the preceding sections, suggest how the company could (i) develop its strengths (ii) resolve its weaknesses (iii) exploit opportunities and (iv) avoid or mitigate threats. (600 words)