Topic

Understanding
Strategy Lecture: Mr. Yin Phally, Master

Major: Accounting and Finance

Group1

Subject: Strategic Management

1.Chheng Ratana
2.Bou Cheanyhouy
3.Chhit Davy
4.Chhe Sotheary

Y4-S2(UEF) 2024.
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Planning for change Counting the benefits
Content

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Leading your competitors Looking to the future

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Shaping your strategy
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Planning for change

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Understanding
Strategy
Strategy is about ensuring that your business reaches
its desired goals on time. Managers should know
what effective strategy entails and utilize it to shape
the future of their team or organization.
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Planning for
change
Mapping out your business strategy involves planning for the future, possibly years ahead. The value
lies not only in the plan itself, but also in the questions
asked and answers discovered during the process.
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Planning for
change
Keeping moving

Defining triggers

Setting off
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Keeping moving

In short, organizations cannot stay stagnant as costs and demands

increase over time. At some point, you will reach a limit in your

current situation and need to change your strategy to move the

business forward. Strategies can be implemented at various levels to

help the business grow and develop individuals within the

organization.
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Defining triggers
The need to change strategy can be triggered by internal or external

changes in the business environment. Both types of triggers require

adapting and adjusting your strategy to stay competitive and successful.

External Internal

External triggers are events like economic growth/decline, tax Internal triggers could be a change in location or loss
changes, new technology, or new competitors in the market. experience employee.
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Setting off

Devising your strategy means setting the direction and scope of

your organization, and planning, how to meet customer needs

over years, and tracking progress along the way.

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SUCCEEDING AT STRATEGY

FAST TRACK

• Having a clear destination in mind.

• Being willing to deal with the big picture.

• Knowing why you are better than your competitors.

• Feeling “on top” of leading the business to a brighter future.

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SUCCEEDING AT STRATEGY

OFF TRACK

• Being too busy with today to think about tomorrow.

• Being too quick to say why something shouldn’t happen.

• Not being able to quickly give the reasons why your business exists.

• Making decisions without referring to your overall strategic direction.

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Counting the benefits

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Counting the
benefits
Having a good strategy, whether for managing a team, business, government department,

organization, or charity, brings numerous benefits. It not only increases the likelihood of reaching

goals but also helps in mapping out future plans, attracting funding, and building a strong team.
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Mapping your future

First, a good strategy is like a road map that clearly outlines where you want to be in the future,

such as increasing sales by a specific amount. It includes specific actions and milestones to help

you track your progress and ensure you are on the right path towards your goals. Waiting three

years to see results is too long, so regular reassessment is necessary to make sure you are making

the right decisions.

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Attracting funding

Second, having a clear strategy can help attract interest and funding from third parties such as

start-up finance, internal funding, or sponsorship. Funders want to see that you are in control and

confident in your plan for the future, as this reassures them that their funds will be well-used and

provide a healthy return.

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Unifying the organization

Finally, a clear strategy in an organization helps unify the team and ensures everyone understands their

role and how it contributes to the overall objectives. It prevents confusion and frustration among staff and

customers, leading to long-term success. By sharing the strategy with the team, everyone knows where

they are going and is more likely to adjust their behavior to achieve success. This creates a sense of unity

and motivates individuals to work towards a common goal, leading to sustained success.
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CASE STUDY
A driving force in retail
Tesco, a UK supermarket group nearly a century old, has shown strong strategic thinking by adapting to

changing trends and expanding globally. It started by opening new stores and acquiring others, then shifted focus

from discounts to providing new services and expanding to other countries like China and Poland. Their core

purpose is to create value for customers and earn their loyalty. Today, Tesco is the third-largest grocery retailer

globally, with sales of £51.8 billion and 3,728 stores in 13 countries, employing 440,000 staff.
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About Tesco

• Origin Country: United Kingdom • Ticker Symbol: TSCO

• Company: Tesco • Headquarters: Welwyn Garden City, England, UK

• Founder: Jack Cohen • Employees in 2023: 354,744

• CEO: Dave Lewis • Annual Revenues in 2023: 73.89 billion USD

• Founded: 1919 • Net Income in 2023: 2.031 billion USD

• Public or Private: Public (PLC) • Market Cap in 2023: 17.23 billion USD

TESCO Business Strategy

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About Tesco

• Products & Services: Groceries | F&F Clothing | Tesco Club card | Tesco Bank
TESCO Business Strategy

| Tesco Mobile

• Competitors: Argos | Waitrose | Aldi | Iceland | InstaCart | Safeway | Sainsbury |

Morrisons | Giant Eagle | Carrefour | Lidl | Costco | Walmart |Target | Amazon |

Whole Foods
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Founder: Jack Cohen Founded: 1919

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In the coming decades, the role of retail will continue to 1919 1924
evolve, just as it has in the many decades since Tesco's
founder Jack Cohen opened his first market stall over a Tesco's founder Jack Cohen| Jack met T.E Stockwell, a partner|
hundred years ago. What is clear however, is that while started a humble stall in the East
their formats may change, supermarkets like Tesco are at a tea suppliers; it was only then
likely to continue to be important community hubs, End of London selling groceries. that the name Tesco was born by
anchoring the local economies in towns and cities across combining the "TES" initials from
the UK. Stockwell with the beginning of
his own surname Cohen to form
"Tesco".

1960s - 70s 1929

1948
Over 500 more stores steadily Tesco branded tea was a huge
opened across the country. This Tesco opened its first "self- success and before long the first
expansion included Tesco's first so- service" store in St Albans in Tesco store officially opened in
called "superstore" in Maldon, Hertfordshire. Burnt Oak, Edgware.
Essex. The following few decades
saw Tesco continuing its
expansion, opening more stores
and stocking more varied items
such as TVs and other home
appliances as well as opening their
first petrol station in 1973. 1997 2001
The first Tesco Extra opened, a Tesco launched its own clothing
hypermarket concept offering a range, Florence & Fred.
large range of both food and non-
food lines.

1995

Tesco introduced Clubcard, the

ground-breaking loyalty card
1993 which would provide the business
with key customer behavior and 2020 2017
Tesco's "Every Little Helps" insights for the first time.
Tesco more than doubled online Tesco merged with Booker the
slogan started appearing in stores. capacity in a matter of weeks to wholesale business, creating the
serve customers at the height of largest food services business in
COVID and surpassed 1.5 million the UK.
online delivery slots available per
week.
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Leading your competitors

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Leading your
competitors
To succeed in business, you need to have something that sets you apart from your

competitors and makes customers want to choose you over them. This competitive advantage

is the key to a successful strategy.

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Gaining advantage

Without sustainable competitive advantage, your organization is at risk. In a example, where

a pizza restaurant introduces a home-delivery service to stand out from competitors and
experiences a temporary boost in sales, the advantage isn't sustainable if competitors can
easily replicate it. To establish lasting competitive advantage, actions must be taken that are
hard or impossible for rivals to imitate, such as securing a prime location that ensures

consistent foot traffic.

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QUESTION

What are the potential sources of sustainable competitive

advantage that your organization should seek to develop?

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Potential sources of sustainable

competitive advantage

Size Knowledge Resources Relationships Brand

brand identity can
control of the key relationships create strong
big-city law firm control of with decision- emotional
market and
economies of limited resources makers cannot be connections with
easily copied by customers that are
scale, your competitors difficult to replicate.
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Looking to the future

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Looking to the future

Strategic management involves analyzing future influences on your organization, some of which

can be changed while others cannot. It is crucial to identify what can be altered to use resources

effectively.
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Understanding major forces

Macroeconomic factors are important external forces that impact not just your organization, but

also your competitors and the marketplace as a whole.

Macroeconomic—related to the big aspects of an economy, such as inflation, economic growth,

recession, and levels of employment.

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Understanding major forces

While you cannot control these factors, understanding them can help you create strategies that

align with them. By focusing on factors within your control, you can set the agenda in your

industry and become a market leader

Organizations with a strong level of control can influence government policy and survive in the

long term. Developing sources of control will give you the power to direct your market

effectively
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CONTROL OF KNOWLEDGE CONTROL OF RESOURCES PERSONAL POWER

Access to information and If you control who can Personal influence is the
knowledge gives you an use resources, such as ability to persuade
advantage and helps you staff, money, and offices, people to do what you
stay ahead of competitors. then you have power want. Influential
over other managers. individuals spend their
time communicating
with others.

SOURCES OF CONTROL
CONTROL OF DISTRIBUTION EXPERT POWER

Sometimes we need
By having control over someone to help us
customer access, solve our problems.
retailers also gain Having expertise can
leverage over give us power,
manufacturers. especially when not
many people have it.
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Shaping your strategy

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Shaping your strategy

Strategic management is crucial for success in all organizations. However, the

approach to strategy varies depending on whether the organization is private, public,

or voluntary.
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Private sector strategy

In the private sector, companies must compete with each other to survive. They need to offer better
products or services than their competitors in order to stay in business, so the concept of sustainable
competitive advantage is usually at the heart of company strategy.

Private sector strategy must consider time as a key dimension. Lead times developing new products and
bringing them to market quickly is important, but there can be tension between delivering on short-term
profits and planning and resourcing for long-term success.
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Public sector strategy

The public sector is responsible for implementing public policy and collecting taxes. While there is
internal competition for funding, public sector organizations do not compete in the same way as private
businesses. If a public sector organization has extra money after expenses, it is called a surplus, not
profit.

In the public sector, strategy focuses on meeting political goals and demonstrating efficiency to gain
taxpayer approval. Political pressures often result in shifting priorities to attract voter support, leading to
a short-term perspective that can affect long-term planning.
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Voluntary sector strategy

Voluntary organizations are a mix of public and private sectors with social or political goals. They face
competition like private businesses.

In the voluntary sector, organizations need to compete for funding from public or private sources and
individuals. Unlike the private sector, it's not always clear who the customers are - recipients of funding, donors,
trustees, or volunteers.
Strategic management of voluntary organizations involves satisfying all these groups through careful stakeholder
management.

Voluntary sector organizations should be cautious to not spend more than they receive in donations. If they spend
less, the difference is referred to as a surplus, not profit, for various (social, political, and presentational) reasons.
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FEATURES OF PRIVATE, PUBLIC, AND VOLUNTARY SECTORS:

• Private sector strategy

Private Sector:

- Customers are organizations in the market • Public sector strategy

- Competitive forces are usually strong

- Strategy is based on competitive advantage • Voluntary sector strategy

- Language of strategy includes profit and gaining market share.

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FEATURES OF PRIVATE, PUBLIC, AND VOLUNTARY SECTORS:

• Private sector strategy

Public Sector:

- Customers are the public and political leaders • Public sector strategy

- Competitive forces are usually weak

- Strategy is based on public approval and competition for resources • Voluntary sector strategy

- Language of strategy includes surplus and providing a service.

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FEATURES OF PRIVATE, PUBLIC, AND VOLUNTARY SECTORS:

• Private sector strategy

Voluntary Sector:

- Customers are donors, recipients, and volunteers • Public sector strategy

- Competitive forces are usually strong

- Strategy is based on competitive advantage and stakeholder management • Voluntary sector strategy

- Language of strategy includes surplus and acting for the social good.
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Reference
TESCO SWOT 2024 | SWOT Analysis of TESCO

Tesco Business Model

Types of business organisations

Understanding strategy in business

Strategic Management Book | Dorling Kindersley Limited | First American Edition, 2009
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Thank for your attention.

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Any Questions?