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Business Strategy Assignment Solved - TESCO Plc

   

Added on  2020-10-22

14 Pages4243 Words118 Views
BUSINESSSTRATEGY

Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1Impact and Influence of Macro Environment of TESCO...........................................................1Analysis of Internal Environment of TESCO.............................................................................3Analysis of Competitive Market of TESCO...............................................................................7PART B............................................................................................................................................8Evaluation of different types of strategic directions available to TESCO and recommendationof appropriate growth platform...................................................................................................8Strategic Management Plan.......................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONBusiness Strategy refers to an accumulation of all the actions as well as decisions takenby an organisation to effectively attain all the business objectives which helps an organisation ineffectively and essentially gain a competitive and sustainable position in the market. It is one ofthe most crucial aspects for a company to secure a safe and effective place within themarketplace (Scholes, 2015). The following report is based on TESCO Plc, which is one of thebiggest supermarket chains in the world, situated in UK. It covers a brief analysis of internal andexternal business environment, along with analysis of the competitive environment of thecompany. Moreover, the report also includes evaluation of various strategic decisions availableto the firm and most appropriate growth platform and strategies which could help theorganisation in achieving maximum effectiveness.PART AImpact and Influence of Macro Environment of TESCOMacro-environment refers to all the external factors of an organisation which influencesthe operations as well as strategies of an organisation. TESCO is a global organisation which hasseveral external factors that have a wide impact on the firm and its strategies. Furthermore, toappropriately analyse impact on these factors, PESTLE analysis could be used as a methodology,which is a framework that helps in evaluating external pointers influencing the functioning of acompany. PESTLE analysis for TESCO Plc is mentioned below:Political Factors:These factors reflect the political scenario of a country that has a direct impact on thefirm's operations. It includes political stability, tax rates, as well as the overall economicconditions under which TESCO would be operating. For instance, the biggest market of thiscompany is in United Kingdom (Spender, 2014). However, after the EU referendum, the politicalconditions of the country are quite unstable. It is creating quite a risk for the company as theinvestors are experiencing quite a hard time due to such drastic change in the political scenario.Such factors could affect its business strategies in the future. However, it becomes necessary forthe company to effectively propose certain strategy such as keeping the company policiesflexible as per that of the country, which could essentially help the organisation appropriately ineffectively operating in such drastically changing conditions.1

Economical Factors:Overall economic performance of a nation is reflected in this factor. This include thepoverty rate in the country, standard of living of individuals, unemployment rate, etc. As forTESCO, with EU referendum in action, the value of pound has received a drastic fall, due towhich, it becomes a restriction for the organisation to deal its products at a higher price rate.Furthermore, Minimum Wage Rate within the UK has enhanced by almost 4.4% in 2018 whichhas cost the firm millions in that market (PESTLE Analysis of Tesco, 2019). Such deprivingconditions must encourage organisation in developing strategies to cope up with the situationlike provision of its product on reduced prices, which could appropriately help the firm inenhancing its economic performance within the country.Social Factors:In this factor, all the social trends prevailing in the country are determined, which have animpact on the organisation (Veit and et. al., 2014). Currently, within the UK, the social trendsrelated to shopping has witnessed effective change. For example, “one-stop shopping” as well as“bulk shopping “are being preferred by individuals within the UK, seeing the tough schedulesand constant need of faster service and delivery. Moreover, flexible return policies are also beingappropriately preferred by individuals. Another effective trend which is currently rising throughrising awareness about health is the rise in consumption of organic products. This could be anopportunity for TESCO to increase the storage and distribution of such products.Technological Factors:There is ongoing advancement in the country related to retail industry which are surelychanging the face of businesses like TESCO and have a strong impact on its strategies. One suchadvancements in relation with the technology is the rise in online shopping. Customersworldwide are quite inclined towards this trend. This could have quite a positive impact on thestrategies of the company as the firm could focus on online business to enhance its reach.Another trend in terms of technology is Automation. This has a positive impact on the firm'sstrategy such as RFID technology which was introduced by the company which automaticallycounts all the stock availability with the firm and removes the same after sales. Legal Factors:This aspect focuses on the legal factors that impact all the functions performed by theorganisation. For instance, the company did not comply with certain legislations such as Anti-2

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