Business Strategy: Analyzing PEST and SWOT, Porter's Five Forces Model

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Description on analyse of PEST and SWOT analysis of the organisation capabilities...............3
Define competitive environment with use of Porter's five forces model.....................................5
PART B............................................................................................................................................7
Description of differ type of strategic direction avail to organisation. .......................................7
Justification and recommend appropriate growth platform and strategies..................................8
Strategic management plan with strategies, objective and tactics. .............................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy defined as set of actions and competitive moves that uses by firms to
attract customers, enhancing performance and aids to accomplish organisational goals (Hsieh,
Ma and Novoselov, 2019). This aids to outlines that how an entity should carried out to achieve
desire ends. This is defined as backbone of firm and a roadmap that defines vision, mission and
competing successfully by optimizing financial performance.
The present study related with business activities of Tesco, It is a multinational groceries
and general merchandise retailer that deals in product and services of supermarket. This entity
operates business activities at global market.
Furthermore, report will cover the things as PESTLE and SWOT that aids to analyse the
organisational capabilities to analyse competitive environment. Lastly, report will provide
suggestive measures to enhance growth strategies to enhance performance within the enterprise.
PART A
Description on analyse of PEST and SWOT.
Pestle analysis is one of comprehensive tools that aids to define the external components
that has huge impact on the firm operating within retail industry. In order to identify the
organisation capabilities, the Pestle analysis will be conducted in the following manner as are-
Political factor- This is the retailing firm that operates at the worldwide and there are number of
the global factors that highly influence the performance of quoted enterprise (Mahat, 2019) It is
inclusive of tax rates, varied legislation and stability of operation in business functions operates
in. Therefore, Tesco plays crucial part in term to create varied job opportunities to people.
Hence, supermarkets like Walmart and Tesco has influenced the legal authorities for reduction in
taxes and expansion permission. Stability of the marketing also affects the working of the
enterprise and this also aids to enhance the growth of the enterprise at the huge level.
Economic factors- It is one of the main point of the concern for the Tesco. It is most likely to
leverage cost, profits and prices and demand of the products. Thus, inflation rate, tax rate etc
influence the working conditions of the enterprise and this also affects the growth of business.
Additionally, entity must be aware of the variation in politics such as changes in taxation and
other components that impacts the accessibility of finance. Tesco has the market share of the
30%. In the current scenario, quoted entity has shifted their varied focus on advertisement and

enhance brand value. Thus, there are number of the components that affects the operational
activities of Tesco that is cost, price and profits.
Social factors- There are number of the social changes, trends, changes and preferences affects
operational activities of enterprise. Thus, quoted enterprise enhanced the number of non-food
items offered for sale (Garcia-Swartz and Campbell-Kelly, 2019.). Thus, quoted entity adapt to
changes with help of accommodating the demand for the organic commodities. Therefore,
consumer shopping trends are changing constantly and this affects the profitability and
productivity scale of the entity. They needs to put their consideration on changing behaviour and
demand for the organic commodities. Additionally, change in taste and preferences affects the
people in the huge context and this also leads to have impact on the growth of the enterprise.
Technological factor- This has bought the varied number of new opportunities in terms to regin
the trust of the customers. Additionally, Tesco has invested in the significant amount of energy
within the long term objectives in order to have reduction in the carbon footprint. Additionally,
Tesco has embraced the technology as RFID to enhance the in store experience for the
customers. This kin of things affects capabilities of the organisation and this leads to improve the
performance and brand image of the enterprise.
Environment issues- There are number of the firms that has immense pressure from legal
authorities to address the issues of environment. Thus, firms are liable to respond this kind of
issues to benefit the society. Additionally, Tesco is minimising the waste produced within the
store by enhancing the social conscience within the customers.
Legal- There are number of the government policies and legislation that has direct affect on the
performance of Tesco. It is the entity that has faced the legal action in terms to fraud of
accounting and misleading the investor that agreed to pay GBP 12 millions to set out legal
actions. In order to facilitates these kind of policies, the quoted entity has face reduction within
the fuel they purchase.
SWOT Analysis-
This has been defined in the following context manner as are-
Strengths- Tesco is biggest and also the popular supermarket within the United kingdom. This is
considered to be one of the top 10 most valuable brand in UK. Additionally,. The market share of
the Tesco is 60% as compare to its rivalries as ASDA and Sainsbury's etc. Hence, this entity also
looks over the innovation at the continual basis so that productivity and performance of the