Analyzing the Impact of Macro Environment on Tesco

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 2.................................................................................................................................................3
Assessing the Internal Environment and Capabilities of TESCO Using Various Frameworks. .3
M2 Evaluating TESCO's Internal Environment..........................................................................4
LO3..................................................................................................................................................5
Porter's Five Force Model of TESCO..........................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment indicates about the external factors that put an impact over
company's operations in target market. This report is based on the case study of Tesco company.
Company operate its business operations in retail market. This report will project about different
analytical tool like stakeholder analysis, stakeholder matrix and stakeholder mapping. This report
will also emphasis over porter five forces model. Furthermore, this report will also project the
strategical planning of company by applying strategical tool like price leadership and other
strategical tools.
LO1
P1. Analyse the impact and influence of macro environment
Stakeholder are considered as all the internal and external entity's associated with the
business organisation with the support of any operational function. All entity's involved in any
operational role of the company is considered as stakeholder of the company.
Stakeholder Analysis
Stakeholder analysis is about assessing implications of all the associated entities with
business organisation. Organisation structure of Tesco is comprises with the following
stakeholder that can be projected in the following ways.
Customers: Customers of Tesco company is considered as the primary stakeholders of
company. Customers play huge role in sustainability and growth potential of company (Julian,
2016). Stakeholder analysis involve all the existing as well as potential customers that can utilise
the products range of Tesco company. This is an effective aspect of stakeholder analysis as the
company make strategies and policies based on the customers of the company in order to gain
competitive advantages in the target market.
Shareholders: Shareholders of Tesco company is also among the crucial stakeholders of the
company. All funds and investments of company are generated by shareholders of company.
Company management and leaders are responsible for the company's operations to all
shareholders. Due to huge involvement in the profitability of company this analysis influence all
aspects of the company's operational efficiency.
Government: Government is also considered as the important stakeholders of company. All
strategies and policies related to business development and growth has a huge influence of the
policies frame by government. Policies of government related to taxation and other policies

effectively influence the pricing strategies and other business development strategies of
company.
Investors: Investors are also among the crucial stakeholders of company. Investors involve
banks, angel investors ad other source of finance that effectively cater the funding needs of
Tesco. Company make effective strategies and policies to project and shine the brand image of
company in target market.
Employee's: Stakeholder analysis put huge emphasis over employee's of company. As the
employee's of company carry huge involvement in all functional activity of company the power
of employee's is high under the stakeholder analysis. Employee's play major role in sustainability
as well as growth of company (Manetti and Bellucci, 2016). Company management of Tesco
make employee development strategies with the support of human resource department of
company to provide potential opportunities to company's employee's to achieve higher growth.
All the above stakeholders are among the primary stakeholders of company. All the
stakeholder impact decision-making and growth perspectives of the Tesco company.
Stakeholder Matrix
Stakeholder matrix also play key role in the stakeholder analysis conducts by the
management of Tesco. The concept of stakeholder matrix is to differentiate stakeholder on the
basis of involvement of stakeholder in the operations of company. Based on the involvement of
stakeholders in company's operations this tool segregate stakeholders into four parts.
High power low interest stakeholder: This is among the crucial stakeholder segment. All the
stakeholders of Tesco company consist with high power but low interest is a part of this
stakeholder segment in stakeholder matrix. Stakeholder of Tesco involve customers and sponsor
are a part of this stakeholder matrix (Rao, Vidhu and Chaitanya, 2016). Customer and sponsor
carry the huge power as both the stakeholders influence to company's sustainability and growth
potentials.
High power high interest stakeholder: All stakeholders of Tesco consist with high power and
interest in company's operations is a part of this stakeholder matrix. All the employees hold
upper designation in Tesco is a part of this stakeholder matrix.
Low interest low power stakeholder: This is also a crucial stakeholder matrix segment. All the
stakeholders of Tesco company comprises with low interest and power is a part of this