Global Corporate Strategy

Strategy is organisation’s scope and direction over the long-term: which helps in achieving advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil the expectations of stakeholder.

In any organisation strategies have many levels

1. Groups of businesses

2. Individuals

Corporate Strategy – it is related with the overall objective and aim of the business to meet the expectations of stakeholders. This is an essential level since it is heavily affected by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement".

The whole strategy for the corporation or organisation is overflow to units of business and these are below:

* Must be holistic

* Must be visionary in some measure.

* Must ensure that the different parts of the organisation add value to the whole strategy.

Corporate strategy is the pattern of minor objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a way as to define what nusiness the company is in or is to be in and the kind of company it is or is to be’

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The reason why Tesco has expanded its business in global market because it has strong strategies:

* More sales, profits and returns

* Long- term goals of the company

* Create the value of shareholders

Examples:

* In the year 2010, three countries Poland, Slovakia and Thailand Tesco launched clubcard.

(a) Threats of new entrants and substitutes:

Tesco is now changed into supermarkets and already put barriers to entry. Major companies like Tesco, Sainsbury’s, exist in UK supermarket and by opening small stores like metro and express, it make the barriers to small grocery stores. So the threats of competitors in food market are low. To establish in market, new competitors have to keep prices very low...