Business Strategy: Analyzing Macro Environment, Internal Environment, and Competitive Forces

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Applying appropriate framework analysis and evaluate impacts of macro environment....................3
M1 Critically analyze the macro environment to analyze the strategic management decisions...............4
TASK 2..........................................................................................................................................................4
P2 Analyze the internal environment and capabilities of an organization................................................4
Tesco’s Strengths....................................................................................................................................5
M2 Critically evaluates the internal environment to assess strengths and weaknesses of an
organization’s internal capabilities, structure and skill set.......................................................................7
TASK 3..........................................................................................................................................................8
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for
an organization........................................................................................................................................8
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes..................................................................................................................................................9
TASK 4 Covered in PPT.............................................................................................................................9
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Business strategy relates to a collection of strategies and behavior employed by a company
in order to gain more consumers and meet successful corporate goals. It tends to make it
possible for a business to step in a good way. Tesco plc is selected in this report to analyze
both internal and external market conditions. It is a British supermarket that sales a vital
range of products and services to customers of United Kingdom. Throughout this report, the
macro environmental factors and their effect on the approaches and competences of Tesco
plc are addressed. PESTLE analyzes describe the external atmosphere while SWOT and
VRIO are used to evaluate the internal setting. Examine competitive power through Porter's
five-force model and establish a strategic management strategy.
TASK 1
P1 Applying appropriate framework analysis and evaluate impacts of macro environment.
The Ansoff Matrix is used in the advertising planning strategy process. This defines the
general approach to be utilized by the organization and then tells which strategies to be used
throughout the marketing campaign. A company often adopts two approaches for targeting
separate markets.
 Market penetration strategy in Tesco- Tesco has been able to broaden its activities
since its establishment through the help of consumer expansion tactics, i.e. the
distribution of new goods to emerging customers. The approach contributed to
increase the market share of current consumers and the utilization of goods. The
successful execution of Tesco customer growth strategy was beneficial by aggressive
Marketing Policies and marketing promotions. Tesco most frequently provides
exclusive discounts on other items to improve revenue.
 Market development strategy in Tesco- Tesco also established commercial policy,
i.e. the selling of current goods really well to different customers or areas. It has
spread from the United Kingdom to other countries worldwide. In July 2019, it
reported the launch of 750 new companies over Thailand in the coming three years.
In several ways, for example its stores in the United States, China, South Korea and

Japan struggled to fulfill Tesco's business growth strategy; yet Thailand appears to
be a new story.
 Product development strategies of Tesco- Over the years, Tesco have produced so
many of its own branded goods for distribution to its current customers. Tesco has its
own and markets all models in various retail categories, as will other items from
international labels. Tesco is particularly successful in this new growth approach.
Unless the manufacturers of big labels had not produced their own variants of the
goods, there may have been more leverage in the deal. It should be remembered,
though, that innovative technologies are typically expensive to produce.
 Diversification strategies of Tesco- It are normally very challenging to execute
diversification techniques. Potential consumers are not quick to market fresh goods.
Tesco originated as a commodity corporation and diversified into other sectors over
time. Any exceptional sources include credit cards, loans and insurance policies.
 It can, however, be noted that Tesco's diversification policies have struggled. Of
starters, in 2013, the business acquired Giraffe of £ 48.6 million. But it didn't work
out and Tesco sold it at long last in 2016 with a loss. Similarly it bought 80% of
Blink box Entertainment's online video store in 2011.
M1 Critically analyze the macro environment to analyze the strategic management decisions.
Economic dynamics have a significant effect on internal efficiency because macro external
influences lead to the assessment of business conditions. This helps to introduce
management strategies that are better known to a client. Such forces help to develop or
evolve corporate growth strategies and decision taking. That also helps to identify avenues
for a corporation to develop and improve.
TASK 2
P2 Analyze the internal environment and capabilities of an organization.
Tesco plc, a Tesco trade firm, is a British international grocery manufacturer headquartered
in Welwyn Garden City in Hertfordshire, England, UK. Company quickly increased h and
had more than 100 Tesco stores in the nation after starting in year 1939.
Strategic capabilities