Evaluation of Macro Environment for Tesco

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Evaluation of the macro's environment for the company Tesco which have the influence
over the market development of company...................................................................................3
M1 Analysing the macro environment factors in order to inform management decision which
are strategic..................................................................................................................................1
P2 Evaluation of internal environment along with its capabilities with the appropriate
framework of development. ........................................................................................................1
M2 Critical evaluation of the internal environment of company as per organization capabilities
, structure and skill set. ...............................................................................................................3
P3 Application of porters five forces in order to have evaluation of competitive forces in given
market of retail of the company Tesco........................................................................................3
M3 Evaluate the appropriated strategy to have improvement in competitive edge in market.. .5
P4 Strategic planning...................................................................................................................6
M4 management plan evaluation. ..............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business strategy is the set of the competitive move in the business which will help in
attracting the level of customer ton different organization in better way of understanding the
business. Tesco is multinational retailer established in country of united kingdom. Tesco is
company which has been using balance scorecard from almost 20 years for tracking the business
over range of different measures which is effectively encapsulating business strategy
development in set of management accounting. In this repost there will be analysis regarding the
development of canopy in different context. It will help in properly anglicize the business
environment at the macro level along with the completive development stereometry. Repost will
also have the performance over the internal environment with over all development of the
strategic plan which will used for development.
MAIN BODY
P1 Evaluation of the macro's environment for the company Tesco which have the influence over
the market development of company
Tesco is leading company in UK in retailing sector. The company has large range of
supermarkets and stores in 12 other companies. It is second largest company after Walmart, it
collects maximum revenue. It also provides finance, insurance services, broadband, mobile
network etc . Now here is the Pestle Analysis of TESCO
Political factors
The Political factors of the country affects the business. As Tesco is operating in 12
countries including Asia and Europe. Company gets affected by the government policies of
different countries imposing on the company. They have to face many factors like political
instability, current and impending legislation, tax rates, unemployment rates of that country
where they re operating. As the instability in financial condition of the world, the government
forces to create more employment in the company. Tesco grab this opportunity and manage the
more employment and increases the production. And increases demand of the products in
market.
But as the Brexit reference the market situation of EU is unstable and risks the investors
investment, so they might face the hard times.

Economical factors
Tesco considers the Economic factors that affect the company, like the taxation rates, changes in
governmental policies, and many other factors which could influence the company's financial
condition. The labour wages changes upto 4.4% so the company have to pay their labours more,
which have direct impact on company's accounts. While there was a recession period going on
the customers have clear mindset to eat at home, not outside. So it leads grocery stores the
opportunities to produce high outcomes.
Social Factor
The one stop shopping was preferred by the customers of the organization. The customers wants
the same day delivery of the products which they have ordered on the official shopping site of
the Tesco. The Tesco was dealing in all the organic products because of the social factor as
customers of UK were becoming more health conscious and they were preferring only packed
and hygienic food.
Technological Factor
The Tesco introduced the RFID technology to satisfy the needs and demands of their customers.
The technology was very useful for the store managers of the tesco because this technology was
keeping the record of all the stocks of the products. The automatic counting of stock and removal
of the expired stock was done from the stores of tesco.
Environmental Factor
To protect the environment, the Tesco was taking the unused plastic bags from their customers
so that they can be recycled. The organization used fuel saving routes which helped a lot in
reducing the pollution from the environment.
Legal factors.
Legal factors are the external factors which used to affect the operation of the business.
The operation of the business. This will affect Tesco positively by change in law in which tax
concession will be provided to the company for using green energy. This will save a lot of cost
of the company and profit of the firm will increase (Nandonde, 2019). Legal factor affecting
negatively is the change in law for the usage of upgraded technology otherwise the company will
be penalized and same will lead to increase in the future liability of the company.