Business Strategy for Desklib - Impact of Macro and Internal Environment, Competitive Analysis and Strategic Planning

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................3
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................5
P3Applying Porter’s Five Forces model evaluate the competitive forces of a given
competitive edge and market sector for an organisation.............................................................7
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
a given organisation....................................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is a combination of action required and decision making and principles that
helps in guiding the organisation regarding achieving business targets, action's required for
attracting costumer's towards the organisation and increase its revenue for the year in the terms
of money, goodwill, retaining its costumer. Business strategy helps in developing the business
and try to grow the business on the basis of the strategies organisation is applying on the
business. TESCO founded in 1919, hackney, London as a group of multiple market shops and
the founder of Tesco was Jack Cohen. It operates in retail industry and it has its headquarters in
Welwyn garden city, Hertfordshire England, UK, it has shops around the world between 4500 to
4600Kitsios, F. and et. al., (2018). it started as a grocery store in the late 1919 but now it has its
own several branches operating in different and in various market at the same time because it
started to open it started open its own mobile services, petrol and gas stations, grocery stores.
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
SWOT analysis – Its main function is to analyse the strength, weakness, opportunities
and threats towards the organisation and also try to overcome those weakness and
because of this the business can probably found the opportunities in the market present
for the organisation in the particular market segment in which it mainly operates in and it
is further detailed below in the context of Tesco. Maniora, J., (2018).
Strength
 Tesco has numerous number's of
strength like it has excellent customer
services, excels in retail department,
retain its customers by providing
various varieties at one place.
Weakness
 Tesco has only one weakness that it
wasn't able to overcome from several
years now it is the increasing level of
debt, unfair business practices, negative
publicity .
Opportunities
 Tesco's has various opportunities like
growing the online grocery sales, high
unemployment , rise in the demand of
plant based meat.
Threats
 Tesco has some thereat that can effect
the organisation in various ways and
those are Brexit and supply chain,
economic recession, has several

competitors.
Pestle analysis - It is a framework used for analysis the macro environment of the
company which includes PESTEL factors contains Political, Economic, Social ,
Technological, Legal, Environmental are analysed by the marketers and detailed below.
Hsieh, and et, al.., (2018).
 Political factor - TESCO operates in 44 countries including Asia and Europe. Political
factors that can effect TESCO are import duty because it also imports goods from
outside Europe and Asia like china and east Asia and the higher amount of import duties
can effect the profit margin of the company. Cubas‐Díaz, and et. al., (2018),
 Economic factor - Labour cost is an important aspect as per the revenue or expense basis
. Its annual wage bill amounting GBP 4.5 billion .In 2018 UK minimum wage is
increased by 4.4% and it costed TESCO millions of pounds and this has costed Tesco
millions of pounds from this the profit of TESCO got affected drastically.,Munoz, and et.
al., 2018 And because of this matter it has lost its several customers and also faced a
drastic loss because of the
 Social factors - Consumer shopping trends are constantly changing in recent times and
has to evolve for this example is obesity is major issue around the world and the TESCO
customers are more concerned about their healths and for this the TESCO has to consider
the changing in the buying behaviour .,Madhushree,and et. al., (2018).
 Technological factors - Few years back was facing issues like poor costumer services .
Technological advancement helped TESCO regain its customer trust and taken advantage
of the opportunity to learn new technological things to cope up with other competitors .
 Environmental factors - TESCO motivate its customers to buy online at tesco.com .
And Tesco has taken a initiative that its drivers will use fuel saving routes and collect
plastic bags from its customers and give them for recycling purpose.