Business Environment: Tesco's Strategic Plan and Analysis

BUSINESS
ENVIRONMENT

Table of Contents
BUSINESS ENVIRONMENT...........................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Part A (1).....................................................................................................................................3
Part A (2).....................................................................................................................................4
Part B...........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals......................................................................................................................9

INTRODUCTION
Business environment is the existence of various factors which affect the functioning of
an organisation. It is consisting of external and internal environment which can be further
divided into macro and micro factors (Głodowska, 2017). Tesco is a multinational retail brand
operating in different countries across the world. It has wide product portfolio which carters the
need of consumer. In this report it includes strategic plan which focuses on the selection of
various strategic choices require to achieve company objectives and goals.
MAIN BODY
Part A (1)
Tesco is one of the largest, well known UK retail organisation that have achieved the
standards of earning huge profits by providing excellent customer services and high quality
products at low prices. It is at the healthiest position and is the most valuable brand of UK. It is a
leading retail grocery store serving over 25 percent of the market share (Tesco PLC- Statistics
and Fact, 2020).
Value Chain Analysis
It is the manner for visually analysing an organisation's activities and understand how it
adds value to the company's product or service, therefore generating high profit margins. It
allows businesses for examining their operations and discover competitive opportunities. The
purpose of it is to increase production efficiency and delivering maximum value at the least
possible cost. The value chain analysis of Tesco is as follows:
Primary Activities
Operations- Tesco has achieved economies of scale, which lowers the cost and keeping
the prices unchanged, it generates high profit margins for the organisation. Also, Tesco has
expanded its operations in various other countries as well.
Marketing and Sales- Tesco has a brand image of lowest price supermarkets and it
providing high quality products. It has launched various campaigns for boosting the demands of
goods and services offered by it. In addition to it Tesco is committed towards helping families in
the tough times. By using its price campaigns, it has attracted customer’s attention and Tesco has
successfully achieved its goals (Hamilton and Webster, 2018).

Service- Tesco was the first retail store of UK to start online shopping services to its
clients and facilitated them to buy groceries and cloths at their convenience and was time saving
for them.
Outbound Logistics- Tesco facilitates online purchase of goods which can be directly
delivered from the warehouses and eliminates need of having local stores, it saves time and
provide to its clients. It not only enhances customer satisfaction but also improves efficiency in
stock updating.
Inbound Logistics- Tesco maintains a strong bond with its suppliers which enable it for
putting the goods at right time in the stores and meet customer's demand effectively. It is one of
the competitive advantages of Tesco and helps in maintaining its position in the market.
Supportive Activities
Technology- Technologies plays a crucial role in development of an organisation. Tesco
is taking optimum utilising of digital technology for serving the needs of its clients and is selling
more products at a lower price building strong and loyal relationship with its customers.
Human resource Management- Tesco have excellent and talented staff for managing its
huge operations and processes. Also the company pays a lot of attention for training and
development of its employees and make them skilful.
Infrastructure- Tesco has changed its distribution to just in time system and has
developed its stores as warehouses for meeting the needs of customers ordering online which has
reduced the dependency on infrastructure resulting in low cost of operations.
Part A (2)
Tesco's Vision is to be most valued organisation by its customers and to operate with
loyal and committed staffs working for growth and expansion of the organisation. In alignment
with Tesco's vision mission and values it is formulating strategies for building trust among its
customers and building its reputation which was lost due to low prices (Hamilton and Webster,
2018). Tesco has successfully fought against the rivalry supermarkets and offers a wide range of
products and services to its clients. It has achieved a remarkable success in terms of e-commerce,
customer services, loyalty cards, etc.
Tesco's marketing Mix strategy- It works on providing high quality products at an
affordable price to its customers. It has launched various multi buyer’s initiatives for enabling its