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Impact and Influence which the macro environment has on TESCO

   

Added on  2020-12-24

17 Pages5826 Words139 Views
Business Strategy

Table of ContentsINTRODUCTION...........................................................................................................................1L 01..................................................................................................................................................1P.1 Analysing the impact and influence which the macro environment has on TESCO............1A table is being presented to highlight the major points. ...............................................................3.........................................................................................................................................................3M.1 Critical analysis of macro environment to determine strategic decisions...........................4L 02..................................................................................................................................................4P.2 Appropriate frameworks analyse the internal environment and capabilities of TESCO......4Strengths:.........................................................................................................................................5M. 2 Critically analyse the internal environment to asses strengths and weaknesses of TESCOinternal capabilities' structure and skill set..................................................................................7L 03..................................................................................................................................................7P.3 Apply Porter’s five forces model and to evaluate the competitive forces of TESCO..........7M.3 Devise appropriate strategies to improve competitive edge and market position based onthe outcomes................................................................................................................................9L 04................................................................................................................................................10P.4 Apply a range of theories, concepts and models, interpret and devise strategic planning fora given organisation..................................................................................................................10Conclusion.....................................................................................................................................12REFERENCES..............................................................................................................................14

INTRODUCTIONBusiness strategies are those plan of action which are designed and implemented so thatorganizational objectives can be met through using the same. All the factors whether internal orexternal are considered and analysed before making any strategy and planning. In this presentreport TESCO has been chosen for assessment. TESCO is a British organisation which has manysupermarkets around the world. TESCO is a retail sector which deals in grocery items andoperates in many big Countries. This present report will cover the impact and influence of macroenvironment on TESCO. It will also cover SWOT analysis along with porter's five forces indetail. In addition to this, a range of theories, concepts and models, interpret and devise strategicplanning for TESCO will be covered in brief. Furthermore, range of theories, concepts andmodels, interpret and devise strategic planning for TESCO will be discussed in detail. L 01P.1 Analysing the impact and influence which the macro environment has on TESCOTESCO is a British multinational groceries company that deals all the products. It is aleading brand which has expanded its supermarkets in 12 countries. Very high goals andstandards are set up by TESCO. It has many supermarkets all around the world. Mission of TESCO: TESCO has a mission statement which is very important to the company asit gives a direction to reach at a point. The mission statement is 'Creating value for customers, toearn their lifetime loyalty'. Vision of TESCO : There are majorly five elements of TESCO which described the visionstatement of the company.Expand more of its business in all over the world.It is a growing business which have many opportunitiesOrganization always plans to come up with new and innovative ideas.Earning trust of people who are customers, colleagues and employees of company.OBJECTIVESTESCO has major objective of attaining higher growth along with customer satisfaction. Inaddition to this, TESCO always have a long term objective of improving as much as theorganisation can. PESTLE Analysis: 1

It is an analysis which will show the depth analysis on supermarkets. In order to survivein this competitive world an external analysis is required to be done. It will help TESCO inknowing about the large big areas and factor that will affect the company in some or the otherway.Political factorsTESCO is a big multinational organisation which has its outlets in 12 nations. Everycountry has their own tax rate, laws, rules and regulation. Organisation has to operate as per thenation economic condition and political conditions. Like import duties affect the pricing strategyof the company due to the rate that is prevailing in the nation (Leonidou and et.al., 2017). Aswhile opening new retail supermarkets of TESCO, local retailers business got highly affected.But on the other hand, it has provided jobs to many unemployed people. TESCO is retail sectorwhich give high employment and higher pay to people who works for the organisation. Economic factorsPeople of every nation has different purchasing power and thus demand differs in everynation as per the economic condition of the country. Lower purchasing power is due tounemployment and low income levels of people. Thus, it will affect business of TESCO in someor the other way. So organisation needs to plan as per the economic conditions of the country. Inthe year 2008, United kingdom has declared recession where interest rates got reduced andthrough that there has been a reduction in the employment. In addition to this, overall it hasreduced the spending power of the citizen of the country. It also can be said that consumer likelyto be spend less on high premium products due to low income and recession in the nation. But ithas a positive side too where people started eating out less due to low income. Thus, it has maderise in the purchasing of groceries and hence business of retailer sector has grown. Social factorsIn today's world every one likes to do online shopping where they get delivery ofproducts at home. Due to the tough timings and schedule of people they like it more. This factorhas affected the decision making of company (Castellani and et.al., 2018). In addition to this,TESCO has introduced online shopping through its website and application. Thus, the businesshas expanded more by the same. Old age people also like to do online shopping more than theyfeel less likely to step out and shop. Other than this, payments through cash and cheques aremade possible by TESCO. 2

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