Blog Details

How to Write a Case Study in Strategic Management


Written By: Quantawriters

Case Study in Strategic Management;

Tesco Corporation




Executive Summary

            In this study, I will go into further detail on the company's strategic management alternatives. An inquiry undertaken over the past few years will serve as the basis for my report as a business consultant. I will provide a summary of the firm's history and a literature assessment of the recommended techniques for usage in the company. In the case study, the strategic choices offered by Tesco Company will be thoroughly analyzed, and the strategy structure will be aligned so that it may be effectively implemented. The strategy's targeted action plan has also been addressed in the report. Tesco is the subject of this research, which focuses on the company's external environment and internal examination of resources, competency, and culture. Resource-based methods have two possible futures, according to this article. This report's analysis is solely based on the provided case study. Accordingly, a thorough statement that the firm would enjoy executing in terms of market share will be presented in the conclusion of the information. In addition, well-thought-out strategy advice will be provided. A variety of strategic measures will support Tesco Company's future performance.


            Tesco is a multinational firm, and it has three distinct divisions that operate across the world. Five separate configurations are being employed to oversee operations in the UK for the first time. The setups vary in size, location, and services to their customers (Lasserre, 2017, pp. 7). To help Tesco remain competitive in the market, this research will look at the company's strategic management practices and provide recommendations for improvements. The report will also include some of the company's most important capabilities and all of the environmental changes that have affected the business (Coe & Lee, 2006, pp. 77).

Brief History

            Since its inception by Jack Cohen in 1919, Tesco has grown to be one of the most recognizable names in the grocery industry. A total of 12 nations have benefited from a Tesco expansion due to this approach (Taqatqa, 2021). There is 60 percent of Tesco's revenues and profits come from the company's operations in England. More than 60 billion pounds in sales and 490,000 people made Tesco the world's largest food store in 2011. More than $1 billion is generated annually by Tesco's Finest and Everyday Value brands. In addition to food, Tesco offers a wide range of products, including clothing, telecommunications, and auto insurance, all under several labels, including their own. In this way, Tesco can satisfy customers' demands since they can locate everything in one location. Tesco has employed a pricing strategy in which it sets the lowest possible price for every product and service to compete with its rivals (Taqatqa, 2021). Tesco has also developed a strong relationship with its consumers by giving the most pleasing shopping experience possible. As a result, the share price of Tesco dropped from 400 pounds three years ago to 219 pounds. Several factors caused this loss of equity. Identifying the ideal consumer, managing a brand, and building customer loyalty are issues.

Literature Review and Relevant Theory Application

            Comparing and contrasting Tesco's human resource procedures with notions about motivation and multicultural management may help determine the company's overall performance in human resource management. Abraham Maslow outlined five fundamental criteria that motivate individuals to perform at their highest level of performance. Eventually, the hierarchy of demands came to be recognized as a pyramidal depiction of the five necessities. Needs such as food, shelter, and clothing were met via fair and equitable compensation and retribution. Health and safety regulations and a conducive working environment are next on the list (Taormina & Gao, 2013). There were social or esteem needs in which individuals wanted to be recognized for their work and have a sense of belonging to their surrounding environment.

Furthermore, it features intrigue, originality, and a degree of difficulty. Following the theory presented in this Tesco research study, meeting one need leads to the fulfillment of a second. Upon realizing this, Tesco's management set about meeting the requirements of its workforce.

            Tesco treated its workers well and worked with three health groups to protect their wellbeing, as seen in this case study, which met their physical and safety needs by paying its workers well and collaborating with them (, 2019). Tesco stresses the importance of teamwork in its statement of purpose and encourages employees to work together. The last two pyramid objectives may be met since the firm has a solid remuneration system and enables workers to participate in decision-making. Motivation is influenced by Herzberg's two-factor theory, which states that employees are motivated by rewards or motivators and cleanliness (Alshmemri et al., 2017). Pay and benefits, labor conditions, work-life compatibility, job security, status, and other aspects of the job were unsatisfactory factors to consider. Tesco management provided competitive compensation and a work-life balance that resulted in excellent employee satisfaction. In addition, the business gave equal opportunities for growth and prizes for hard work, which helped raise staff morale and productivity. In this case study of Tesco UK, the management's goal is to motivate employees by emphasizing customer pleasure and cleanliness. To empower employees, the company distributes responsibilities and provides them with opportunities to interact with upper management.

            Wage increases and incentive programs may be discussed openly by employees in the company (, 2019). Employees are made to feel valued and appreciated when given recognition and awards for their contributions to the company. Tesco's recruitment, corporate branding, education, and performance evaluations all play a role in the company's diversity strategy. Whenever a position becomes available, the company instantly consults its internal Talent Plan to see whether there is a suitable candidate (, 2019). Personnel may be promoted or relocated to obtain new skills and expertise at this level. As a result, the company ensures that all employees feel valued and have equal opportunities regardless of their age or background. The company also adheres to the inclusion criteria to avoid workplace bias. People of all ages, gender identities, and sexual orientations are welcome in our company.

            UK Colleague Networks have been established for Black Asian Minority Ethnic, Armed Forces, Women in Tesco, out at Tesco (Transgender, Gay, Lesbian, Bisexual, and Intersex) and Disability by Tesco (Tesco plc, 2019). The company has hired more employees because it arranged for different demographics, including young people, minorities, and retirees. Unmotivated workers and workplace diversity issues persist despite the firm's best efforts. There is a possibility that some of the organization's management practices are not up to par. It also fails to promote young people despite having an established network for them. Therefore, the company must address these issues to ensure a long-term workforce.

Research Methodology

            Natural science ideas may be used to explore social reality and beyond, according to Bryman (2012). This study created hypotheses to test the data and investigate the research issue. Thus, the research is deductive. It is shown in Merton's 1967 study 39 that this philosophy is used in sociology to motivate experimental inquiry (Bryman, 2012). As a rung on the ladder of customer loyalty at Tesco supermarket, customers' satisfaction was also investigated. Every aspect of the convenience store, including its brand merchandise, Clubcard reward programs, operation hours, and Tesco's multi-channel development, has been inspected and approved. The study topic was developed from the studies or literary background, and the theory drove the investigation, leading to the following hypotheses.

Macro-Environment Analysis

            This part will primarily focus on all the social, economic, local, technological, national, and political repercussions on the firm's operations. Understanding the company's prospects and risks will be aided by this study.

Political Environment

            The firm has been keeping up with the Free Trade Agreements and the European Union's integration process. In exchange for these benefits, the firm has gained several opportunities to develop new shops and continue to engage in the European market. More than 60 retail locations have been established across Hungary due to the company's success. As a result, the company has maintained its position at the forefront of the industry in market share. Because of this, the company's duty rises as they compete to claim their place in the market share (Mehdikhani & Valmohammadi, 2019, pp. 26).

Economic Environment

            However recession-resistant it may be, Tesco Company and its retail organization are particularly exposed to all of the interest rate volatility's complications. The global turmoil was resulting in substantial economic hardship. There has been a less negative effect on retail enterprises than in other sectors as the world tries to get used to the new routine. Customer trust in Tesco's operations has been restored due to its efforts to enhance operations (Mehdikhani & Valmohammadi, 2019, pp. 26).

Social Environment

            Because of the ongoing shift in taste, lifestyle, and choice among its clients, the retail industry confronts a variety of hazards and entrance points. As Tesco continues to extend its shops into the worldwide market, some merchants worldwide are warning that the firm is in danger of becoming a liability.

Technological Environment

            Tesco has profited from technological advancements that have opened the door to many new opportunities. The development and adoption of electronic purchases with the option of home delivery and the development and implementation of mobile commerce are two essential products. Second, self-service checkout kiosks have provided customers with more comfort and convenience, decreasing labor costs. It is also worth noting that Tesco has spent a considerable amount of money on energy conservation initiatives to achieve its long-term goal of reducing its carbon footprint.

Legal Surrounding

            Moreover, the government's policies and legislation, which are discussed in greater detail below, directly influence Tesco's performance. As an example, the Food Retailing Commission (FRC) proposed in 2004 that a Code of Practice be implemented, prohibiting certain present activities such as changing prices without notice or requiring suppliers to make payments. Because of the implementation of these restrictions, Tesco offers its customers' price savings on their gasoline purchases based on the amount of money they spend at their grocery shops. It helps to assist the implementation of these policies. Apart from that, numerous special offers are accessible, with some of the charges being decreased in some situations.

Other Environmental Factors

            Due to increasing public pressure on businesses to address environmental problems and build business practices that benefit society, Tesco has said that it wants to cut its carbon footprint by half by 2020. Consumers are encouraged to consider more socially and ethically to limit the quantity of rubbish created in Tesco stores.

Competitive Advantage Analysis

            A thorough examination of the long-term competitive advantage of Tesco is provided in this section. This section examines the elements that give the retailer an edge over its competitors (Advantage Analysis, 2022). For decades, Tesco has been one of the most profitable UK retail businesses because of its exceptional customer service, affordable prices, and high-quality items. Customers like Tesco's products because of their competitive advantages, including the following for the retailer.


            Diversification is one of Tesco's primary advantages in the marketplace. Initially, Tesco was primarily a food retailer, but it soon realized that it could better serve its customers by diversifying its product line (Advantage Analysis, 2022). Tesco's value line serves Low-income households; upper-class customers are served by the premium range. Also available are sections for Organic, Children, and Healthy Living. Additionally, the company gains notoriety in automobile insurance, household appliances, and kitchenware.

Distribution System

            Using the most modern supply chain system, Tesco ensures that its customers deliver the product quickly and cost-effectively. The in-store operations and ordering systems have been upgraded, significantly increasing the efficiency of the Tesco distribution system (Advantage Analysis, 2022). Delivering goods to consumers' homes at a cheap cost is how Tesco fulfills its promise to provide them with choices.

Striking Advertisement

            The more memorable something is, the simpler it is for others to identify it. Tesco's "Every Little Helps" motto is a household name, and it has provided the retailer with an advantage in the marketplace. To make the brand and goods more palatable, several celebrities are also incorporated into their advertising campaigns to keep its customers happy; Tesco is now awarding them Tesco club cards when they buy certain products (Advantage Analysis, 2022). Many clients from their competitors have been drawn in by the on-the-spot discounts and green living items.

Cost Leadership and Well Motivated Staff

            With its capacity to keep the price low, Tesco has gained more market share. Walmart and Carrefour can't compete with Walmart's pricing leadership. While shopping at Tesco, consumers can always rely on the store's employees to answer their questions (Advantage Analysis, 2022). In contrast to many other grocery shops, the 24-hour service is available for late-night customers. Taking the firm to the next level requires Tesco to empower its workers and grow its personnel, which the company sees essential.

Future Strategies for Tesco

            Customers' power, supplier control, and the emergence of replacement shops all offer problems for Tesco as they work to gain an advantage over their rivals in the market. Suppliers' control, consumer control, and Tesco's power play a role. Using the five Ps, the firm can tackle all of these problems. In both local and worldwide markets, the energy released by Tesco customers is constant in determining the prices for things offered in the supermarket chain. For example, if customers find it difficult to acquire something from Tesco because of the high prices they charge compared to other retail outlets, they are more likely to shop elsewhere. Market restraints and long-haul expenses have been clearly shown in this example. Tesco can no longer wipe out the retail market for war gain with this kind of interaction and communication. This paradigm places a high priority on provider control as a fundamental component.

Furthermore, consumers are the providers who may demand that merchants pay them their dues and specify the prices of a particular product or service offered at any given moment.

            A reliable danger to the market is the replacement of new retail outlets with experienced ones. As a result, Tesco should strive to maintain a positive image and ensure high-quality products to sustain client loyalty. In the absence of confidence, Tesco risks losing long-term clients to upstart competitors (Jonah, 2018, pp, 5). To help their shops evolve, Tesco Company should prepare an update. In this way, the firm may avoid losing customers to new competitors. With its emphasis on worldwide expansion, Tesco has to ensure that all the items it needs to ship are in line with the tastes and preferences of the local client. Tesco could consider distributing children's apparel depending on their shop's inventory if they have the time and resources. Tesco should look at the specific entrance points and risks to the Swedish market while focusing on-premises.


            According to the findings of this case study, human However, Tesco's administration has been compelled to combine its present techniques with new policies owing to the continuously shifting economic situation and the vitality of the labor markets. Their employees must be surveyed to understand better their future needs, job inclusion criteria, future dangers to job security, and judgment requirements. As suggested in this Tesco UK case study, the survey results would assist the company's management create future contingency plans and ensure that its staff is always motivated. The company must also include its employees more in decision-making and strictly enforce equal pay rules to avoid discrimination. Tesco has to implement plans that use its present strengths to expand and flourish in new markets. T&T should continue to learn more from consumer research to stay abreast of the most pressing needs of their customers. If Tesco wants to expand its customer base, it should consider expanding its service offerings and business processes. Because of this, Tesco has to persist with these efforts for Sainsbury to have fewer competitors.


            In light of the above, it is evident that Tesco has to implement methods that will help the company expand and develop. Failure to stick to the company's established strategy might be overtaken by its rival, Sainsbury. Generic growth plans are required for Tesco to ensure future growth and development. It can be shown by looking at how Tesco has embraced technological advances to help manage its stores more efficiently. The company's rapid growth may be attributed to the thoroughness with which they plan and carry out their objectives and how they implement those goals.




Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg's two-factor theory. Life Science Journal, 14(5), 12-16.

Bryman, A (2012). Social Research Methods. 4th ed. New York: Oxford University Press. P 28-30

Coe, N.M. and Lee, Y.S., 2006. The strategic localization of transnational retailers: The case of Samsungā€Tesco in South Korea. Economic Geography, 82(1), pp.61-88. (2019). Retrieved 3 April 2019, from

Competitive Advantage of TESCO - Competitive Advantage Analysis. (2022). Retrieved 3 April 2022, from (2019). Retrieved 3 April 2019, from

Jonah, U.I., 2018. The Influence of Transaction Costs on the Business Performances of Tesco Supermarket. International Journal of Business and Social Science, 9(5).

Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.

Mehdikhani, R. and Valmohammadi, C., 2019. Strategic collaboration and sustainable supply chain management. Journal of Enterprise Information Management.

Taormina, R. J., & Gao, J. H. (2013). Maslow and the motivation hierarchy: Measuring the satisfaction of the needs. The American journal of psychology, 126(2), 155-177.

Taqatqa, A. (2021). 5 Tesco. Business Management Case Studies: Pran-RFL, Netflix, Mc Donalds, Google, Tesco, Apple, COCA-COLA, PSA Group, Mercedes, Tesla, Toyota, Beximco, KFC, LBC Lao Brewery Company, 97.

Tesco plc. (2019C). Core Purpose and Values. Retrieved 3 April 2019, from


Comments about this blog
Jhon William

8m ago

Wow, i have learn so much in Physiological Changes in the Body During Pregnancy. thanks for sharing the post.
Leave a Comment: