Business Strategy: Analysing Macro Environment and Internal Capabilities in Tesco

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Analysing the macro environment with application of appropriate framework in Tesco. 1
P2 Internal analysis and capabilities assessment....................................................................5
P3 Porter Five Force analysis.................................................................................................7
P4 Discuss the range of theories and model and devise a strategic management plan..........8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The specific course of action which are devised by the management of the business to
strategically deal with all the external as well as internal factors is can be understood as the
business strategy of that respective organisation (Jocovic, M. and et. al., 2014). Such elements
impacts in both the aspects of enterprise and its procedures, that could be either positive or
negative. The higher authorities within the organisation is totally responsible for the overall
design and formation of the strategic plan.
This discussion and all the analyses that are performed in this report paper are executed
in respect of the giant retail corporation Tesco plc. It is a well established retail company which
is situated in United Kingdom and deals majorly in the segment of home appliances, toys,
furniture, edible products etc. With such a vast categorised portfolio of products and services the
organisation is enforced with the optimum market share as well as it contributes in the national
economy on a distinctive level. This report here includes all the various aspects of internal as
well as external macro environmental factors that affects the business operations and all these
aspects are analysed within the suitable frame works, to asses the certain measures for enhancing
the efficiency and effectiveness of all the tasks and operations.
P1 Analysing the macro environment with application of appropriate framework in Tesco.
The operational process within the respective company is completed by involvement of
many factors. These elements gets highly effected by the external macro environmental factors
which can be evaluated for the efficient outcomes and effective organisational procedure
(Millstein,Odoner and Sharma,2018). The PESTLE analysis will be performed to assess the
external environmental factors of Tesco Plc. This analysis will help in building the strong
strategic plans in order to deal with external factors as well as to achieve the organisational
success. Thus the PESTLE analysis in relation to the top British retail company Tesco are as
follows:
Political Factors: This factors are comprised of all those factors which influence the
business by impacting with certain governmental policies and political regulations(Willems, and
et. al., 2017). The other elements which are included in this factor are employee right
legislations, trade law, foreign relations in terms of operating trade globally, stability of the
particular party, effects of left wing oppositions, extent of corruption etc. thus it is essential for
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the Tesco to comprehensively study all these factors and be updated towards all the current
affairs in respect of political condition of United Kingdoms. In the UK there are only two parties
which are ruling the nation since 1920 this is a great benefit to the local as well outside ventures
to perform their business here.
In relation to Tesco such a great political stability enhance the chances of growth and
development of organisation. This is achieved by taking in to account of all the regulations and
policies of political aspects in the nation , this helps in saving lot of time and other resources as
the existing government doesn't impose new regulations at a continuous period there are
previously governed policies under which the Tesco can perform its operations efficiently. Both
of the ruling parties does also emphasises on the growth of industries within the nation.
Economic Factors: The economic elements are those that includes certain policies and
financial aspects within the confines of respective nation(Wrigley and Wood, 2018). The crucial
sustainability of the business in Tesco organisation can be achieved through assessments of these
economic factors as these factors plays an important role to perform all the finance related
activities within the business. It could be any capital investment, profit share distribution, costing
and pricing factors, expansion of sales etc. The timely opportunities can be achieved by Tesco
through the consideration of the economic factors in the confines of United Kingdom.
Social Factors: This factor is comprised of all those elements which are relative to the
social characteristics, that could be population growth and demographic conditions, wages to
local workers, attitude, health issues of the consumer (Klettner, Clarke and Boersma, 2014).
This is an important component of business environment which is required to be examined by
TESCO to gain knowledge of the latest as well as emergent patterns and trends of consumers.
The population of UK has shifted its preference towards one stop as well as bulk shopping. The
management of TESCO has recently increased the quantity of non edible items. Also, organic
products have been launched in relation to edible product section. This helps the entity to meet
the health conscious consumer behaviour of a noticeably large segment of UK's population..
Technological Factors: This includes elements such as level of innovation, automation,
R&D, technological awareness etc. This is a factor which facilitates an entity to gain edge over
rival firms pertaining to same sector. It is important for the administration of TESCO to identify
the latest technological trends and implement the same within organisational premises to retain
the top position in domestic market The retail sector in United Kingdom is quite wide and
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