Research on Business Strategy - TESCO Plc

Added on - 21 Jul 2020

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Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Impact and Influence of Macro Environment on TESCO Plc..........................................1TASK 2............................................................................................................................................4P2 The internal environment and organisation capabilities...................................................4TASK 3............................................................................................................................................6P3 Porter's five forces model to evaluate the competitive factors of retail sector..................6TASK 4............................................................................................................................................8P4 Range of theories, concept and model, interpret and devise strategic planning...............8CONCLUSION....................................................................................................................11REFERENCES.............................................................................................................................12
INTRODUCTIONBusiness strategies play a vital role in modern era to gain much more profitableadvantages at marketplace. On the other hand, management of a firm formulates scheme orstrategies that help in decision making process. With the help of effective business strategy,company enhances their overall performance level to capture larger market share than its rivals.Mainly, it includes clear mission, vision, goals and objectives of the company which may lead inattaining positive outcomes (Business Strategy, 2015). In this assignment, a British multinationalretailer which has been taken is TESCO Plc. They are providing services to their consumers allover world. Along with this, 476,000 employees are working in stores all around the globe. Inthe year of 2017, they made £55,917 million as revenue. Report will also put light on impact ofmacro environment on business. Away from this, internal environment and capabilities has alsobeen included in assignment in order to understand rivals properly. Porter's five forces model hasenclosed. Lastly, ample number of theories and concepts are going to be used in order toformulate a strategic plan.TASK 1P1 Impact and Influence of Macro Environment on TESCO PlcTESCO Plc is a private limited firm that is offering grocery products to its consumers allover world. Profit which was made by TESCO Plc in the year of 2017 was in the amount of £54million. Its headquarters are in Welwyn Garden City, Hertfordshire, England (United Kingdom).They are also looking forward to expand its business by evaluating trends and taste of customers.While enlarging the business and at the time of making strategies there is ample number ofelements which needs to be considered in much more effective way.PESTLE Analysis of TESCO Plc:Political Factors:This is one of the main elements that play vital role when it comes toexpanding the business. Along with this, it also influences the company performance and itsbrand image. In this, various political factors and aspects are there in which company and itsoperations are totally dependent (Ackermann and Audretsch, 2013). Thus, it is important formanager to effectively measure its factors in order to manage their business activities effectively.If country has political stability, then company can easily maintain their structure and prospectus1
in market case. On the other side, it directly impacts on overall progress of the firm at marketplace. For example, recent as well as current conflicts directly impact on company activitiesEconomic Factors:These types of factors are also an important element for Tesco. Inthis, company has chance to expand their business because UK economy has positive signs inwhich customers are able to purchase company products and services. Along with this, GDP ofthe nation plays a vital role which defines people’s income level (Annabi and McGann, 2013).With the help of this, company increases their profitability level and have chances to expandtheir business in other areas. Basically, this factor is related with the customer’s income level.Due to this, company enhances their profitability level and sales as well. Along with this, foraccomplishing positive image, company modify their strategies in an effective way to attainpositive outcomes.Social Factors:As a famous and the biggest company, Tesco serves their quality servicesto its customers with high qualities. Along with this, it directly impacts on company because thisfactor includes local beliefs and culture of customers. Basically, this factor is dynamic in naturethus, firm has to provide their products and services as per customers demand. Because it iscontinuously changed according to marketing trends. For attaining better results, it is importantfor Tesco to deliver quality services to its customers which may lead in creating strong customerbase. For example, if Tesco uses online shopping to sell their grocery products and services, thenthey easily increase their profitability level by increasing customer’s demand and base towardsthe products. Along with this, customer’s opinion and taste can quickly change so that it isimportant duty of company to deliver their products accordingly so that they positively respondto social change and improve their performance level.Technology factors:It is also important for Tesco to use new and innovativetechnologies within their operational activities.Basically, technologies play an important role inoverall Supply Chain Management of the company. By this way, they easily attain competitiveadvantage and also enhance their effectiveness at market place.Thus, it is highly important forcompany to use innovative and advance technologies to improve their distribution services. Forexample, mobile technology also helps in interacting with their customers and understandingtheir needs effectively (Auzair, 2011). With the help of this, company offers its servicesaccordingly and attain their higher satisfaction.2
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