Analyzing the Influence of Macro Environment on Business Strategies - Desklib

This document discusses the analysis of the influence of macro environment on a company and their business strategies. It explores different frameworks and techniques to evaluate the capabilities and internal environment of a company. The document also provides insights into strategic decision development and resource-based view strategy. It covers the use of frameworks like McKinsey's 7S model and VRIO framework to enhance organizational performance. Study business strategy with Desklib.

Business Strategy

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Apply different frameworks to analyse the influence of macro environment on a company
and their business strategies.........................................................................................................3
TASK 2............................................................................................................................................7
P2 Evaluate the capabilities and internal environment of a company by using appropriate
frameworks..................................................................................................................................7
TASK 3..........................................................................................................................................10
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm
...................................................................................................................................................10
REFRENCES.................................................................................................................................15

INTRODUCTION
The strategy is considered as the decision which is based on what Strategies and
decisions that helps in making benefits which is to be attained in relation to the goals and
objectives that has been set by an organisation to be achieved. What that is referred to as master
plan which is been implemented by an individual in order to attain competitive position within
the market. This strategy helps business in achieving growth and sustainability within an
organization. The organization that has been taken in this report is Tesco PLC the UK based
retail organization and manufactures day-to-day product and manufacturers home use products.
For the report has been discussed in relation to micro organization within the business strategies
existing in an organization. For the analysis is done in addition to the micro factors and Portér's
five force. This is helpful evaluation possible in relation to various sources existing within
business organization. India and different methods models and theories in covered in relation to
strategic decision development within an organization.
TASK 1
P1 Apply different frameworks to analyse the influence of macro environment on a
company and their business strategies
Vision: The vision of Tesco is to develop standards which are acceptable globally which
lead over making stability created within relationship of national and international organization.
Also the vision of the organization is to achieve growth in global market.
Mission: Tesco photo to create and quantity accessibility is to attend within various
process existing within the organization. This is helpful foreign organization without increasing
customer base delete overachieving of high profit in more effective manner.
Objective: In relation over Tesco Plc operators have been set by the organization in order
to achieve more and more success which are leadership and management growth weather in
retail sector. This help for an organization to make head of its rivals in more effective and
efficient manner (Oni, 2018).
Strategy these are considered as those kinds of steps which have been taken by mangers
of an organization that leads upon making goals and objectives in more impactful manner.

Further its is helpful in making formulation of effective business strategy that leads upon making
performance improvisation possible which makes high gains and advantages achieved. Also it
helps in staying ahead of its competitors. This leads over uplifting revenue and sales through
developing strategies for an organization like Tesco (Prashar, 2017).
Different strategic planning techniques
 Benchmarking: It is has been defined over making comparison in relation over matrix
making an entire industry operating within an organization. It is helpful in making Tesco
plc attains positive position within market which over comparison done in relation to its
performance and activities.
 Business analysis: Through making analysis of business activities and various processes
related to it makes an organization like Tesco Plc attain ideas about its strength and
weaknesses through effectively making criteria set in relation over applying of right
strategy over it. Also this makes acknowledgement over strategies that are suitable in
nature for an organization like Tesco in order to attain better outcomes.
Various analytical framework to acknowledge macro environment
Stakeholder analysis
Stakeholder analysis is that kind of process identification over impacting performance in
order to start the project it is helpful for an organisation like Tesco need of grouping shareholders
according to the interest level within the project. For the reservation has been provided as
follows:
 Step 1: Termination in relation to stakeholders is been done through preparing list of
content shall stakeholders who can do investment. Regarding Tesco potential
stakeholders can be news department, executive staff, marketing executive, customers,
employees, suppliers, public and government shareholders.
 Step 2: T h e s e stakeholder is been listed managers of an organisation which requires
what prioritising various categories has been explained as follows:
High power high interest: This is one of the most important input as go as it helps in performing
business activities in more effective manner.

High power hello interest: Search kind of stakeholders mel impact working and does not have
any high rate of interest within projects of Tesco.
Low power and high interest: The stakeholders provide information in relation to a project of
Tesco.
Low price and low interest pair not having interested in the activities of the second is not for this
power.
 Step 3: Under step manager of tesco miscommunication shareholders as per the priority
which is required to complete the project.
PESTLE analysis
Pest analysis is the Framework that is being used as a tool in order to make external
factors to be analyzed by organizations which helps in growth of the organization possible within
particular market. Process of analysis has been done in relation to Tesco as follows:
 Political factors: These are those factors which are based upon tariff rate and tax policies.
This policy is informed by central government. Policies related to tax increases then it is
directly into effect the sales of organization like Tesco (Sadeghi and Biancone, 2020).
 Economic factors: These are those factors that are related to inflation rate, unemployment
ad spending done by people weather in UK. Bajaj help in increasing growth rate within
UK if inflation rate increases then Tesco plc faces less revenue generation.
 Social factors: Different kind of social aspect is there which help in making an
organization retain sustainability within the market. These factors include trends and taste
which is been followed by people living within the country.
 Technological factors: Under such factors all kind of Advanced technology is being
covered which has been taking place within an organisation also in this advanced
machinery is been observed. Tesco is required to upgrade process technology in order to
make sure that it delivery process and manufacturing capacity increases which makes
customer give enhanced.
 Legal factors: In these micro factories is been covered which makes legal process
involved within an organization for its Incorporation. Directors leave towards making
Welfare of the society developed within an organization. In order to avoid any kind of
legal issues disposed required to follow these rules.

 Environmental factors: These are the factors that deal with all kind of laws which has
been repaired in relation to protect environment and steps taken by government to protect
ecology. Tesco is required to use this factor in order to make sure that less carbon
footprints with use white which create the environmental awareness.
SWOT framework
SWOT analysis is that analysis which is based upon strength, weaknesses, opportunities
and threats to be analysed in more effective manner. SWOT analysis has been done in relation to
Tesco as follows:
Strengths Weaknesses
 Brand reorganization of Tesco is one of
its strength which helps in improving
quality over service provided by it.
 The organisation is wider scope which
helps in covering large market area and
also help in targeting customers within
it prove it product(Viesi and et. al.,
2018).
 Population is one of the major
weakness going to impact Tesco in a way
that it is not trendy regrading clothes stock
for adults and youth.
 Traditional methods of production is
used by the company that makes it one step
behind from its competitors existing within
market.
Opportunities Threats
 Organisation is required to perform
expansion for which it is required to
understand the potential customers
within that particular country.
 Companies required to invest more in
marketing activities which makes
number of people get know about
product offered by them.
 Changing political environment for
global business operations request more
effectiveness in relation to organisation.
 Rival organisations is giving tough
competition to Tesco which makes big
threat for an organization achieved

TASK 2
P2 Evaluate the capabilities and internal environment of a company by using appropriate
frameworks
Strategic capabilities and their key components
Strategic capabilities is been defined as those strategies that helps in shaping organization
structure in order to help making high gains attained which helps in staying ahead of its
customers. Further this capability is lead over developing various control components and
aspects existing within an organization. These are majorly focusing over six main elements
which is required within an organization to reflect its growth. These elements are strategic
purpose, key goals, action planning, tools for analysis with value and vision. It leads over
developing strategies within an organization. Organization at Tesco PLC with the help of this
strategic capability is going to enhance its performance within the market where it is willing to
expand itself. This key elements going to play important role in enhancing all over performance
of an organization like TESCO (Oni, 2018).
Resource based view strategy
This resource strategy is based over work which is being performed by managers within
the framework use within an organization in order to better about those Strategies and resources
which helps in attaining sustainability to an organization. This strategy only contains two
resources that is required which is tangible and intangible in nature. Under tangible assets
physical assets is been authored and under intangible assets resources can be arranged by Tesco.
Search resource based view strategies used by Tesco in making difference between the assets
done which is going to help in liquidation and budgeting process. Also it provides financial
stability with proper framework( Kumar and et. al., 2020).
McKinsey's 7S model
Framework is atul which is helping in analysing organisation design which helps in
identifying 7 main components that lead over attaining success within the market. This
component helps in making Tesco attain sustainability by making goals and objectives achieved
in more organised and effective manner. What does components has been explained as follows:

Strategy: Most important element which is used when organisations in order to attain
competitive edge in the market it has been developing of plan. This pan lead over making an
organisation attain discipline order within its work. Tesco PLC with the utilisation of strategy is
able to reduce issues which is been faced by the customers more appropriate manner.
 Structure: In this the basic structure of the organisation is being depicted which is related
to business unit and division that is maintained within an organisation in relating to the
information which is been shared regarding various processes. CEO for an organisation at
Tesco it is very important have affected structure which makes various advantage for the
organisation to be achieved that we use upon providing sustainable in relation to its
rivals.
 Systems: Is another important process within an organisation that helps in achieving aims
and objectives which is been organisation in terms of short term, long term and medium
term goal. Also these systems makes work to be done by various department within time
limit specify to them. Tesco with the help of the systems m a k e s proper Framework for
guidelines that is required to be followed various departments in order to attain better and
accurate outcome. These outcomes are based upon profit and loss scenario (Kato and
Charoenra, 2021).
 Skills: This is one of the most important tractor which includes competencies factors of
employees within an organisation. This makes tesco achieve hi sustainability with
productivity within its employees. Also it is going to improve working process through is
down the extra work by making innovative ideas to be presented.
 Style: This is based upon the management process which is been used by an organisation
in managing its various functions. This style can differ from organisation to organisation
according to the nature of their working. This is to be used by tesco in enhancing its
Management process which is going to help in making opinion of employees to be
considered in order to perform better decision read to word upliftment of profit within an
organisation.
 Staff: Is one of the most important element which is related to employees and members
working within an organisation. Tesco is required to take care of its employees which is
going to help in increasing productivity within the organisation.

 Share values: This is one of the most important part of this framework include standards
and norms which is to be required followed by an organisation like Tesco in relation to
enhance its ethical standards (Karadag, 2016).
VRIO framework
VRIO this is that framework which make rarity, value and immutability enhanced over
making organization improve its processes. Also this tool is been used for achieving of
competitiveness within market. Further analysis has been done as follows in relation over Tesco
Plc.
 Valuable: It holds importance in relation to manager of Tesco that helps in making
resources given regarding its rivals. Under it an organization posses more of valuable
resources that leads over profit earning possible in more effective way. This makes profit
earning possible. Under it valuable resources for Tesco is been used in order to make
profit earning possible within supply chain management.
 Rareness: This makes an organization understand about product which is been prepared.
In this Tesco helps in attaining loyalty within its customers.
 Imitable: TESCO through this is able to offer the products which cannot be copied by
rivals. This can impact profit earning capacity of Tesco’s product in negative manner by
reducing it (Hernández and et. al., 2018).
 Organisation: It is vital for business organizations such as TESCO over managing its
resources and materials in very organized and systematic manner which makes cost
enhancement possible. This reduces revenue and makes competition become difficult
task. Different resources in this context are employees, suppliers, investors and
stakeholders of company.
TASK 3
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a
firm
Porter's five forces is used for developing of decision that is been considered in order to
make generation upon analysis possible in elation over com[petition taking place within an

organization. Such five aspects is been covered in relation over framework which has been
explained as follows in relation over Tesco Plc.
 Threat of new entrants: Under such elements threat of new entrants is not high
regarding Tesco Plc. This makes organization attain growth at global level. It cannot be
possible for new entrants to do investment as per Tesco which makes business
performance with operations done in more organized manner. It leads over making
products and customer developed for new entrants(Harney and Alkhalaf, 2019).
 Bargaining power of suppliers: This are based upon different kinds of organization that
deals upon making development of retail sector in relation to food and clothing. Under it
bargaining power of supplier increases and pays more to supplier which is based upon
Tesco plc.
 Bargaining power of buyers: In this bargaining power of buyer which makes high case
of TESCO over competition regarding retail sector which is very high. If an organization
changes its high prices to its customers without attaining satisfaction product which
makes preferences developed better than its rivals.
 Threat of substitutes: There is possibility of substitution over clothes and foods which
make production less in relation to Tesco. This is been offered in relation to good been
sold to customers. Under its buying of offering of firm is done.
 Rivalry among existing competitors: There are different kinds of retail organization
that has been operating within UK and at global level that is H&M, Zara etc. This makes
competitors very high which gives rivals chance to go ahead of Tesco.
TASK 4
P4 Apply different models, theories and concepts to interpret strategic planning for a company
Porter's generic strategies
Generic strategies of porter are very helpful in developing of competitiveness within an
organization. There are three main kinds of strategies which has been used in relation to
competitive advantage attained by an organization. In relation to Tesco it has been explained as
follows:

 Cost leadership: Which of these are very price sensitive in nature which has been why
business organisation in more effective and easy manner. Also organisation like Tesco
uses letter to sell a product to its customer at very less price offering discounts and offers
which makes sale of organisation profit Returns from it.
 Differentiation: Under this strategy an organisation offers innovative products to
customers which deals with various sectors. This makes Tesco offer various products
customer and enhances sale. The major impact is t h r o u g h innovation.
 Focus: In this strategy various aspects which based on Cost focus and differentiation
focus. Regarding Tesco it requires all products with few prices customer base increase
and differentiation helps in computing with its competitors in very effective manner as
per model strategies (Prashar, 2017).
Bowman's strategic clock
Bowman strategic clock this model deal upon business organization.. Aspects related to
Tesco with this framework are explained as follows:
 Low price and low value added: Position is less competitive in relation to Tesco plc
that is been differentiated over less value of product with less price.
 Low price: Under this aspect Tesco position itself over low cost leaders that is been
marked by using cost minimization technique. Profit of product is low upon high sale
volume and overall profits.
 Hybrid: In this strategy involves over elements which is low and product differentiation
created with effective in relation to Tesco.
 Differentiation: Such strategy makes Tesco focused upon innovation to enhance sales.
 Focused differentiation: Product is been placed at high price which makes level of
consumer upon purchasing of product through perceived value achieve more success
(Rauch and et. al., 2016).
 Risky high margins: In this strategy an organization requires to face high risk that
results in business failure. Tesco set high price over offering extra perceived value.

 Monopoly pricing: In market monopoly is been offering strategy which is been
concerned with price and innovativeness according to customers’ needs.
 Loss of market shares: In this strategic position which desire in relation to competitive
market within a company required for middle range product and market share is less.
Also standard is been formed as per pricing id product.
In relation to Tesco two models is to be used which strategic direction and differentiation
strategy which makes unique products is offered to its customers with high profit and revenue.
This makes innovative ideas developed with high profit.
M4 : Strategic management plan that includes strategic priorities and objective
Strategy planning is helpful in identification of various activities, priorities focus and
operations. It helps in ensuring that people working towards common goals tesco is able to
achieve it. Further explanation has been given as follows:
Product The product provided by an organisation at Tesco solar panels and batteries and
also is known for its large variety of products. This product is solid in existing
product (Sadeghi and Biancone, 2020).
Price This helps in developing strong brand value which makes premium strategy over
products development unique and high value. Also strategy is being used reflect
solar panel which makes mention possible within the market.
Place This is been used by tesco plc upon making development done in relation to the
area chosen for expansion which makes development of organization possible.
Promotion The promotion mix used by the Tesco is direct marketing, viral marketing etc. but
for developing the market they need to advertise through television and
magazines as per the social class and income group which they want to target.

Implementation: This important form an organization which makes implementation over plan
formulating and allocation of resources. Tesco with the help of fund allocation can set its budge
as per market condition.
Evaluation: This is related over collecting of information and follow up with the plan which
makes product development possible in more effective manner(Viesi and et. al., 2018).
CONCLUSION
From the above discussion it is to be concluded that appropriate strategies for business it
is not possible for an organization to achieve desired success with growth. In this various
analysis is done that is PESTLE, stakeholders, SWOT, Ansoff matrix which makes firms over
attaining better growth opportunities. Also this makes both internal and external factors be
analyzed in proper manner. Through VRIO framework organizational capability is been
identified and by using Poter’s five force model an organization makes competitive edge within
market to be analysed. Under it various theories and models is been applied like Bowman
strategy, porter's generic strategy, a company can implement right strategic planning for
themselves.

REFRENCES
Books and Journals
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sized enterprises: Capturing what we know, exploring where we need to go. Human
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social responsibility in the economic performance of micro-, small-and medium-sized
enterprises. Technological Forecasting and Social Change, 151, p.119774.
Karadag, H., 2016. The impact of industry, firm age and education level on financial
management performance in small and medium-sized enterprises (SMEs). Journal of
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Kato, M. and Charoenrat, T., 2021. Business continuity management of small and medium sized
enterprises: Evidence from Thailand. International journal of disaster risk reduction, 27,
pp.577-587.
Kumar, D and et. al., 2020. Exploring suitability of cloud computing for small and medium-
sized enterprises in India. Journal of Small Business and Enterprise Development.
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communication. In Strategic corporate communication in the digital age. Emerald
Publishing Limited.
Prashar, A., 2017. Eco-efficient production for industrial small and medium-sized enterprises
through energy optimisation: framework and evaluation. Production Planning & Control,
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Rauch, E and et. al., 2016. Requirements and barriers for introducing smart manufacturing in
small and medium-sized enterprises. IEEE Engineering Management Review, 47(3),
pp.87-94.
Sadeghi, V.J. and Biancone, P.P., 2020. How micro, small and medium-sized enterprises are
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Viesi, D. and et. al., 2018. Energy efficiency and sustainability assessment of about 500 small
and medium-sized enterprises in Central Europe region. Energy Policy, 105, pp.363-374.