Analyzing the Impact of Macro Environment on Tesco's Strategy

Business Strategy

Contents
Introduction................................................................................................................................3
Company profile.........................................................................................................................3
Mission.......................................................................................................................................3
Vision.........................................................................................................................................3
Goals and objectives of company..............................................................................................3
Task 1.........................................................................................................................................4
Applying appropriate frameworks to analyse impact and influence of the macro
environment on given organisation and its strategy...............................................................4
Macro environment to determine and inform strategic management decisions....................5
Task 2.........................................................................................................................................5
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................5
Evaluate internal environment to assess strengths and weaknesses of an organisation’s
internal capabilities, skill set and structure............................................................................7
Task 3.........................................................................................................................................8
Porter’s five force model for evaluating competitive forces of given market sector of an
organisation............................................................................................................................8
Strategies to improve competitive edge market position based on outcomes........................9
Task 4.......................................................................................................................................10
Range of theories, concepts and models as well as interpretation of strategic planning of a
given organisation................................................................................................................10
Recommendations....................................................................................................................13
Conclusion................................................................................................................................13
References................................................................................................................................14

Introduction
The given study is based upon the UK food market, and focuses strongly on the
biggest retailer in the UK, Tesco plc. This section highlights the link between some of
Tesco's strategy design and implementation, vision and objective. This research also includes
structural models which show stability and core competency in the operational climate of
Tesco and other industrial conditions. Projections are hired between SWOT and Porter's Five
Forces. Finally, the strategy formulation of Tesco is included in this report. Some suggestions
included a proposed implementation plan to apply the strategies established in the monitoring
and evaluation process (Cox, 2020).
Company profile
Tesco Plc was formed by Jack Cohen in 1919. It is a leading distributor in the United
Kingdom. It has the highest total income behind Wal-Mart and Carrefour. In 14 nations, they
are almost 500,000 colleagues. They include Tesco supermarkets, the Tesco Express and the
Tesco Home Plus and Tesco Metro. Dave Lewis is the new President of the firm (Ghouri and
et. al., 2021).
Mission
The objective of the group is to keep business good and to promote knowledge about
organic and sanitary food products. The management of Tesco is committed to meeting
consumer requirements and ensuring productive use (Gosling, 2021).
Vision
Tesco's objective is to become the largest organisation for the worldwide food
buying. The corporation grows sales by taking account of the financial, ethical and legal
criteria to satisfy the mission statement. In this approach, Tesco tries to construct a
contemporary community.
Goals and objectives of company
 In order to satisfy customers and employees.
 Revenue maximisation.
 Supporting revenue and business processes.
 To maintain the level of service and price.
 Promoting the firm restructuring and making a competitive profit.

Task 1
Applying appropriate frameworks to analyse impact and influence of the macro environment
on given organisation and its strategy.
Tesco is among the world's leading food and grocery merchants and one of Britain's
leading retailers. After Wal-Mart Stores Inc. & Carrefour SA, it is the third largest retailing
firm. PESTLE analysis of Tesco are as follows;
PESTLE Analysis
Political: Considering Tesco's business is worldwide, global political considerations
impact Tesco's performance. Among other things, are tax levels, laws and government
security under which they exist. As financial volatility continues throughout the world,
numerous authorities are encouraging employment production for retailers. Tesco also
promotes competition for its goods and improves its employees, and Tesco plays a part in
promoting employment incentives.
Economic: Tesco's major concern is that these dynamics should take advantage of
expenditure, competition, revenue and pricing. Any legislative alterations such as tax reform
or any other changes affecting financial accessibility will also be noted in the organisation.
As the firm grows abroad, it must be noted that it remains highly dependent on the UK
market, which has a market share of around 30 percent.
Social: Along with multiple cultural shifts, UK customers have moved to bulk
purchasing and single-stop shopping. Consequently, Tesco has extended the quantity of items
not for sale. The type of items and services bought by clients mostly depends on their chosen
attitudes. With consumers aware of the health problems and their attitude towards food
progressively changing, Tesco adjusts to these adjustments to satisfy the requirements for
organic items.
Technological: Tesco has been provided various new opportunities by technology
developments. Next is Internet shopping and home delivery services growth and introduction.
Second, the self-service check-out stations have made it easy and comfortable for consumers
and have reduced staff expenses. Indeed, in order to reach the long-term carbon footprint
mitigation target, Tesco has invested a large sum on energy savings programmes (Hunter,
2020).