Business Strategy: Macro Environmental Analysis, Internal Analysis, and Industrial Analysis

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1................................................................................................................................................3
P1. Macro environmental analysis via PESTLE....................................................................3
M1 Critique of PESTLE analysis...........................................................................................6
LO 2................................................................................................................................................6
P2. Internal analysis via VRIO & SWOT..............................................................................6
M2. Critique of internal analysis............................................................................................8
LO 3................................................................................................................................................8
P3 Industrial analysis..............................................................................................................8
M3 Strategies to enhance competitive advantage and market position..................................9
LO 4..............................................................................................................................................10
P4 Strategic planning............................................................................................................10
M4 Strategic management plan............................................................................................11
D1 Data Interpretation for rivalry evaluation.......................................................................11
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is the competitive action undertaken by a firm for gaining an edge in
marketplace. Each and every business devises its unique business strategy after gaining
comprehensibility of its external and internal business environment factors (Končar, Vučenović
and Marić, 2020). It provides assistance to the entity in surviving in market for a long time
period and appealing to customers in a lucrative manner. Whereby the strategy of a company is
effective, it is able to enhance its market positioning, thereby also enhancing its share in the
concerned corporate sector. The below mentioned report is carried out on TESCO which is the
leading retailing business within the confines of United Kingdom. The report contains macro as
well as micro environmental analysis of the respective retail corporation. The project further
consists of industrial analysis and strategic management planning.
LO 1
P1. Macro environmental analysis via PESTLE
The effective progress of any business is lies within its operations and their success in
the internal as well as external aspects of the markets thus it can be understood as the
environment in which the organisation operates its business plays an important role in
determining the survival and development of the business. Thus in order to analyse and evaluate
the specific factors of macro external environment particularly of a region and country to get the
correct outcome and facts regarding each and every element of external environment the
PESTLE analysis will be used by the organisation (Blank, 2020). The overall analysis will be
done on the basis of TESCO plc. The company is well renowned retail chain firm that is widely
affected by the external elements of country, directly and indirectly on its operations and
organisational process.

(Source: PESTEL Analysis, 2019)
Political Factors: The political factor is comprised of the certain policies and regulations
that are governed by the existing political power in the country. Along with that the certain
elements such as conflicts and cold wars among politics are falls under this factor. The political
environment of United Kingdom serve as a opportunity to the business of TESCO and other
industries to expand their business effectively on domestic as well as global level (Jones and
Comfort, 2020). Due to the great consistency among the political rule in the country it ensures
the big organisation to not to revise their laws and culture of work. This helps in formulating the
efficient planning of the business for long time period in future.
Economic Factors: The economic factors in any nation are generally termed as all those
elements which are responsible in dealing with financial conditions. Mainly comprising of the
economic growth rate , inflation rate , foreign exchange rates , interest rates , return on
investment , unemployment level etc. The economic factor in United Kingdom makes it more
feasible for the giant retail industries like TESCO to target more and more of customers by
varying their marketing policies according to each section of the society form the lower in to the
niches of high class consumer sector. This segmentation can be effectively performed by
evaluating the earning and per capita income and other economic factors of the nation.
I
llustration 1: PESTEL Analysis