Analyzing PESTLE and SWOT on Tesco

BUSINESS STRATEGY

Table of Contents
INTRODUCTION..........................................................................................................................3
PART 1 ...........................................................................................................................................3
Analyse the PESTLE and SWOT on the organisation................................................................3
Description on analysis of competitive environment with use of Porter's five forces................6
PART 2............................................................................................................................................7
Evaluation on different types of strategic direction avail to organisation..................................7
Recommendation on appropriate growth and strategies.............................................................9
Produce strategic management plan with objectives, strategies and tactics. ...........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy defined as course of action that aids to accomplish the organisational
objectives. It is termed out as set of competitive moves and action that business attracts
customers, compete successfully, strengthening performance etc. Thus, this is defined as great
tool that helps to set the vision, mission and value proposition that can all be accomplished with
help of business models.
The present report is based on business activities of Tesco. It is British multinational
groceries and general merchandise retailer that headquartered in England, United Kingdom.
This offers wide range of products such as electronic goods, books, broadband and financial
service etc.
Furthermore, assignment will outline the activities appropriate frameworks that analyse
the impact and influence of macro environment such as SWOT and Pestle, Internal environment
analysis can be conducted with use of Porter's five forces. Lastly, recommendation will be given
on strategies that impacts objectives of the organisation.
PART 1
Analyse the PESTLE and SWOT on the organisation.
This is defined as framework that aids to undertake the analysis that influence the firms
operation in the competitive manner. However, political, economical, social, technological, legal
and environmental conditions are defined in following manner as are-
Political- This is the retailing company that operates at the global level but global political
components influence the performance of the Tesco greatly. Due to ongoing financial crisis there
are many retailers in the world that are encouraging retailers to create job for the domestic
population. Thus, it can be stated that Tesco plays the greater role in creating the employment
opportunities for the individual as this operates at the global level. Hence, this entity has also
enhance the demand for its commodities and the workforce of the enterprise also get diversified.
Economic factor- It is the components that is likely to leverage cost, demand, profit and prices.
Thus, the company should be aware of changes in policies, taxation and any other factors that
affects the accessibility of finance. Therefore, the change in price, inflation rates all these
components highly affects the brand image of the enterprise. This enterprise has market share of
30 % in the market of the UK. This can be stated that internationalization and diversification are

the two components and key strategies that pursued by entity over the years and this is major
reason for success. Due to decline in disposal level of income and household incomes Tesco has
shifted their focus towards advertising its value brands rather than more luxurious items.
Social factors- There are variety of social changes and trends that indicates the customers in the
UK that have moved towards the bulk shopping. However, Tesco has enhanced the number of
the non food items that are offered for the sale. This kind of good and services that are offered by
the customers mostly influenced the belief's and attitudes that mainly get influenced by the social
conditioning (Mahat, 2019) . In the present scenario, the customers are becoming more
influenced by the health issues and they are shifting towards to consuming the organic
commodities to maintain their health conditions. In addition to it, Tesco is adapting these
changes by accommodating the demands for the organic products. To maintain the brand image
entity needs to deals with the all kind of changes and preference that can attract the customer and
also helps to maintain the customer retention rate.
Technological factors- The advancement in technological conditions have brought various new
opportunities for Tesco. Thus, online facilities to the customers can be helpful in enhancing the
brand image of the enterprise. This quoted enterprise has invested the significant amount on the
energy efficiency project to full fill its long term objectives to reduce impact of carbon footprint.
Henceforth, technical advancement helps to enhance the brand image of the enterprise. With the
help of adaption of the new techniques of way of producing commodities aids to bring
innovation in commodities and this helps to enhance the profitability (Garcia-Swartz and
Campbell-Kelly, 2019).
Environmental- The increase pressure on firms helps to address the environmental issues and
this also adopts the ways of operation which would benefit the society (Hsieh, Ma and
Novoselov, 2019). It is entity that is clearly committed to reducing the carbon foot print by 50%
by the year 2020. Therefore, quoted enterprise is minimizing waste produce in their store by
increasing the cons in the customers. Thus, pollution, emission and other environmental factor
has huge impact on working of the enterprise.
Legislative- The government policies and regulation also has direct impact on the performance
of Tesco. Henceforth, quoted enterprise provides its customer price reduction on the fuel they
purchase. Thus, there are several promotion in which the price of the commodities gets lowered.