Macro Environment and Competitor Analysis

MACRO ENVIRONMENT AND COMPETITOR ANALYSIS
Technological Factor: These factors pertain to innovations in technology
that may affect the operations of the industry and the market
favourably or unfavourably. This factor used to create the variety of the
issue for the organization as organization has to change the technology
in the market to be competitive which eventually creates the situation
of finance requirement.
Environmental Factor: This factor include the aspect which are really
hard to predict such as weather, climate, environmental offsets and
climate change. This factor has created many issue or can be said as
challenges for the Tesco as due to the unexpected whether and climate
many times there is a scarcity of raw material in the organization.
Legal Factor: All the organization has to follow the different rules and
regulation to operate the business. This factor has created the
challenges related to the efficiency of the business as it consumes a
good amount of time for the Tesco to get a permission for the different
operation of the business.
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COMPETITOR ISSUE
Quality of the Product: It is the biggest issue which is faced by the Tesco
as it has been analysed that the quality of the product which has been
offered by the competitor Asda is much better than Tesco. The biggest
reason for the same is that Tesco used to look at the variety of the product
which need to be offered to the consumer as compare to the Asda which
looks at selling only some product in the organization but of good quality.
Profit Margin: As Tesco is the leading retail company in the UK and to
maintain the leading position organization always sells the product at
lower rate as compare to the Asda which help them in attracting new
customer toward the company but at the same time creates the problem
of reducing profit margin of the organization.
Technology Advancement: It is the another issue which is faced by Tesco
as in the rapidly changing environment as it getting tougher for the Tesco
to change the technology on the regular basis to attract the eye of the
customer toward the company. This eventually creates the issue of
Finance requirement.
SUM UP of ISSUE
After going through the analysis it can be interpreted that the Political and
Economical environmental does not used to create any issue in the
organization. At the same time Social, Technological, Environmental and legal
factor used to create a variety of the issue for the TESCO.
After going through the analysis it can be interpreted that Tesco has to face
the variety of the issue related to the competition the biggest reason behind
the same is to maintain leading position in the market.
Macro Environment ISSUE
Political Factor: Factor which relates to the degree of government
intervenes in the economy or a certain industry. This factor used to not
create any big issue for the Tesco as there is a political stability in United
Kingdom and government of UK also used to support privatization in the
country.
Economic Factor: Factor related to certain economy's performance. This
factor also do not create any big issue for the Tesco as Interest rate in the
UK is low which help the company in getting the adequate fund at
demand. Inflation rate is also at a positive side for Tesco to operate in UK.
Issue which is related to recruitment of skilled employee as due to high
number of SMEs unemployment rate is to low in UK.
Social Factor: Factor which are related to the demographic
characteristics, norms, customs and values of the population. This factor
used to create the issue of customer preference for the Tesco as the
customer preference used to change on regular basis which tempt the
company to change the operation accordingly.
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