12.1.

Knowledge about environmental factors:

There are many external and internal factors that affect the Tesco for its future growth and are important for the CEO.A detail PESTILE analysis shows the all external factors. These may include political, economic, sociological, technological, legal or environmental dimensions. These are important because economic factors show the affect of the supply market and increment in tax, among some other financial matters. Sociology factors are tough to explain, because they are piece of our traditional background. Technological factors define the effect change, and it is always important for the company. (Neblett)

Legal factors always there to deal with the problems oriented by the change in technological factors. To deal suitably with the fossil fuel environmental factors is always considered. A CEO has to look at some of the internal factors also that include stability, aggressiveness, Team orientation, people orientation, Outcome orientation, innovation and risk, attention to detail. A CEO must have to tackle with all these factors for a successful productive growth of Tesco. (Gerhardt, December 2002) 12.1.2
Knowledge of stake holders expectation:

As a program supervisor, it is understood that the stake holders are vital to the achievement of a program or project. It is also important for everyone to have a distinct vision of the project, they are working for. A proper listening to stakeholders is required for the successful completion of project. The main responsibility of a manger is to mange expectations especially for stakeholders so that the difficult situation of the under-delivered and over-promised can be handled. The cause to deal in that field is that if expectations are not met properly during the development project, then the chance of full or partial failure of project can be increased. It is very vital to look at each stakeholder individually because sometimes they are in conflict with each other. Their expectations are clear and real. So a proper study is required. ( Stakeholder Engagement)

12.1.3

Major Changes that can affect Tesco Strategy:

The major changes happening to environment may affect the proposed strategy in various ways. The discussion will show the above described factors in proposed strategy. If there is inflation in economy then the cost of products will increase and ultimate users will be reduced. If political situation becomes un-ordered, there will be no proper orientation. Improper balance in community will affect the purchasing and selling effect of company. IF the people socially do not cooperate or match with each other, then it will be tough for company to describe its products. If the new arrival technology is expensive and less trained staff is there, then the company will not be able to maintain the position. (MATHI) If law and order is not stable than the government factors are tough to handle and finally a proper disposal is required to environment effect. The improper attention to stakeholders expectation can lead to failure of projects 12.2.1

Analysis on Tesco:
Tesco is a leading brand in grocery in UK coming at 2nd number worldwide after Wall mart. It has more focus on customer, it targets the customer, offer low-pricing and retain them. Marketing and leadership strategies are both used in the company structure. Decisions are made according to situation in hand and the customer is main focus. Low-pricing strategy is implemented to retain current customers and to attract new ones. It has an influence on leading by brand so as to most customers call it just by calling the name. It boost is producing by boosproductivity strategy. Market goals are set after a research in market and finding the target audience towards the ultimate completion of marketing plans. (Breifing The Tesco take over, June 2005)

12.3.2

Effect on current Business plan:

There are many factors that affect the business plan including external and internal.

External factors may include Political Economical Sociology Technology Legal Environmental Economic factors show the effect of the supply market and increment in tax, among some other financial matters. Sociology factors are tough to explain, because they are piece of our traditional background. Technological factors define the effect change, and it is always important for the company. Legal factors always there to deal with the problems oriented by the change in technological factors. To deal suitably with the fossil fuel environmental factors is always considered. Internal factors that influence are stability, aggressiveness, Team orientation, people orientation, Outcome orientation, innovation and risk, attention to detail. (SAMPLE BUSINESS PLAN )

12.2.2

Position of Tesco in market:

In 1995 Tesco surpassed Sainsburys as the UKs biggest superstore. In 2001 Tesco covered 15.6% retail grocery market of the UK and became the market forerunner by 6%.4 Tesco's massive share is still rising: until September 2004, it had amplified to a huge 28%, about 12% more than its adjacent market competitor, (Tesco PLC Company Profile, Aug 2004)Asda.5 Some would say that if we had to comprise Tesco's share of the suitability stock market (curiously measured a distinct segment by UK rivalry establishments) in this numeral, Tesco could be believed to hold 34% of the grocery market. Tesco stand as 2nd biggest grocery store in world. (The two faces of Tesco)

12.2.3

Competitive business strategies:

Tesco has implanted it business strategies to meet its basic values and standards. Tesco business strategies involve many points to achieve a competitive edge over the market. The first point in

their strategy is to grow UK core. It serves 24 hour services in UK. Second point is to be an outstanding international retailer in stores and online also. To meet the requirement Tesco has to be expert in online service and it is providing it also. Third point is to be strong service provider in everything as they are in food. Fourth point is to grow retail services in all of their markets. Tesco is growing its services in finance and telecom era to meet the competitive environment. Fifth pint is to be a creator of highly valued brand. Because in todays competitive market brand recognition for customers is very important. (BUSINESS STRATEGY) 12.3.1 and 12.3.3.

Arguments on proposed strategies:

Justify with suitable arguments on your proposed TWO strategic options available for Tesco. (Downey) Cost-Leadership strategy: Whereas Tesco has set up to be the low-cost maker in industry, so a low-cost maker has to identify and find all resources of cost-reduction. As we know that Tesco is larger store in UK in capital gain. When they produce more goods while having low per unit cost than their sales boost more and it increase the capital. Internal and external factors also affect the productivity. Political, social, legal, economical, competitors factor effect on productivity. Differentiation strategy: This is defined as seems to be unique in industry with some magnitudes that are extensively valued by customers. It is blessed due to its uniqueness with a best price. They are increasing their productivity due to unique features. Internal and external factors also affect the productivity. Political, social, legal, economical, competitors factor effect on productivity.

12.4.1

Role of stake-holders in future for Tesco:

We make a strategy to produce the goods, for this we need the suppliers which are stakeholders of Tesco. We have to communicate with suppliers that in which date they will give us raw material so that work can be accomplished accurately. We make a strategy than it is needed to suppliers to fulfill the strategy. Without supplier no work can be achieved.

Shareholders are our stakeholders who take part in the decisions of Tesco so they include in future strategy. (Frmond, Oct 2000) Society is also a stakeholder so we have to make a strategy according with our society, which society wants from us, so its mean stakeholder put influence on our future strategy. Without shareholders we cannot make any decisions. so this shows that stakeholders have a great influence on the future strategy.

12.4.2

Working of Tesco under a leadership:

The employees job is to optimize the operating model for the Tesco, continually improving the way we work in stores, distribution and head office. Its about working with the relevant function to shape, analyze and deliver opportunities to make our core processes better, simpler and cheaper. Its also about adding extra skills and expertise - in areas such as problem solving, change management and project management. (Recruitment and Selection at Tesco) And they also play a co-ordination role between projects to enable good decision making. In other words, it's a hugely important part of what we do. The team broadly consists of operations development managers and operation development analyst. (CAPACITY DEVELOPMENT FACTSHEET The Importance of Organizational Mission and Vision, July 2008) Our people should work on just about every part of Tesco operations, so the range of projects on offer is vast, to say the smallest amount. For example, we get involved in:

Creating more accurate and timely order systems which will lessen waste and better the availability of products.

Developing process and systems which facilitate us to put the right products into the right stores.

Designing the finest way of delivering to our state stores.

12.4.3

Anticipated Resource Implication:

Our resource implications can be the best use of employees. If the employees are facilitated with the great care and in human behavior than productivity can be enhance and we can achieve our mission. (Human Resource:Managing and developing Your most important assest Volume III Number1, Spring 1999) Theories of management and leadership are applied in appropriate manner than productivity can be enhanced. To lead by brand and by loyalty and so on it is needed to be treated employees great so that the behave well to achieve the mission and to satisfy the customers. These are the resources which we have to implementing.

12.5.1

Model for factors effecting Tesco:

PESTEL analysis is used to examine the factors that affect the strategy of Tesco.

Economic factors show the effect of the supply market and increment in tax, among some other financial matters. Sociology factors are tough to explain, because they are piece of our traditional background. Technological factors define the effect change, and it is always important for the company. (Pestl Analysis)

Legal factors always there to deal with the problems oriented by the change in technological factors. To deal suitably with the fossil fuel environmental factors is always.

12.5.2 & 12.5.3

Vision and mission statement for Tesco:

Tesco's main vision also includes being the most valued supermarket not only to the customers who use their stores but also to the community in which it is based and to be as strong in all areas of selling as they are in the grocery department and to be an outstanding retailer both in store and online. Their mission statement is to create "value for customers, to earn their lifetime loyalty" which they do by becoming a "creator of brands" giving us, the customer better prices and a wider choice of products so as to encourage the customer to be more loyal and to return there time and time again to shop. (McLeod, 2004)

12.5.4

New Corporate Objectives:

Corporate objectives are set at the high level and are quite distinct from any more detailed functional objectives set for the functional areas of a business. (Anant K. Sundaram Andrew C. Inkpen, These Corporate objectives include measuring the strategic plan:

2004)

Sales revenue ( revenue is growing then the business is growing) Profit (both the absolute level of profit and the profit margin i.e. return on sales) Growth (increase sales volume, revenue, profit, earnings per share) Market share (increase the proportion of markets and industries owned by the business or its products)

Shareholder value (important for senior management to tasked with growing the value of the business)

Corporate image & reputation (increasing important links closely with corporate social responsibility, product and customer service quality, and business ethics)

Satisfying customers (meeting customer needs) Running the business (organizing resources in the most efficient and effective way)

Beating the competition (strategies and tactics to gain competitive advantage)

12.6.1

Proposed Strategy:
My most suitable strategy in Tesco is cost leadership strategy. The implementation schedule is: Cost leadership strategy: Whereas Tesco has set up to be the low-cost maker in industry, so a low-cost maker has to identify and find all resources of cost-reduction. The implementation schedule is that we have to produce goods in low cost. For this purchase raw material in bulk from those suppliers who give great offer, cheap offer to our firm. For this, a great instruction is given to purchase department to work with great care. Raw material is processed into own machinery so that low cost occurred. Employees of purchase and finishing department are well educated to do work efficiently. (Generic Strategy: Cost Leadership) 12.6.2

Stake Holder commitments:

My strategy is cost leadership strategy, for this I ensure stakeholders to deliver the raw material on time and will payment on right time. There is no unsurely deal, mean that contract cannot be cancelled at the consent of one party. There is a commitment to pay the capital gain to stakeholder, I ensure stakeholders that if the cost of products will be low than there would be a great sale and through this we can earn a lot of profits. Dividend or capital gain can be given to stakeholders at time.

12.6.3

Suitable Monitoring:
While developing the monitoring plan it should contemplate the properties that we have available and how it fits with our other property management tasks. These resources may include

equipment, budget, time or skills. The plan should outline the why, what, when, who and how of your monitoring activities. (Monitoring and Evaluation Policy , July 2006) Answering the following questions will help monitoring program. What are monitoring objectives? How will data be processed? What will it monitor? Where will it monitor? When and how often will it monitor? Who will be involved and how? How will the data be managed? A critical step in developing the monitoring plan is deciding what we want to gain from our monitoring. Monitoring objectives should be measurable, specific, realistic, achievable, and timely and guide the development of the rest of plan. Monitoring and evaluating the planning activities and status of implementation of the plan is as important as identifying strategic issues and goals. (Martinot, Dec 1998)One advantage of monitoring and evaluation is to ensure that the organization is following the direction established during strategic planning. The strategic plan document should specify who is responsible for the overall implementation of the plan, and also who is responsible for achieving each goal and objective.

Bibliography
Stakeholder Engagement. International Finance Corporation. Anant K. Sundaram Andrew C. Inkpen. (2004). The Corporate Objective Revisited. Breifing The Tesco take over. (June 2005). BUSINESS STRATEGY. CAPACITY DEVELOPMENT FACTSHEET The Importance of Organizational Mission and Vision. (July 2008). ECDC-CARI. Downey, J. Strategic Analysis Tools. Frmond, O. (Oct 2000). The Role of Stakeholders.

Generic Strategy: Cost Leadership. ebed barrows. Gerhardt, P. L. (December 2002). ENVIRONMENTAL FACTORS OF A MARKETING STRATEGY. Human Resource:Managing and developing Your most important assest Volume III Number1. (Spring 1999). Martinot, E. (Dec 1998). Monitoring and evalutaion of Market development in World bank GEF Climate change project. MATHI, K. Key Success Factors for knowledge factor. McLeod, R. (2004). Values, Vision and Mission Statements. Monitoring and Evaluation Policy . (July 2006). Neblett, J. Environmental Factors Affecting Firms Ability to Compete: A Retail Perspective. Pestl Analysis. Renewal Associates 2003. Recruitment and Selection at Tesco. SAMPLE BUSINESS PLAN . FITNESS PLUS, INC. Tesco PLC Company Profile. (Aug 2004). The two faces of Tesco.