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Business Strategy Assignment Solution Tesco

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Added on  2020-10-04

Business Strategy Assignment Solution Tesco

   Added on 2020-10-04

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BUSINESSSTRATEGY
Business Strategy Assignment Solution Tesco_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1&M1 Application of suitable frameworks for evaluating the macro environment of theorganisation............................................................................................................................3TASK 2............................................................................................................................................6P2&M2 Study the internal state of affairs and ability of a given organization......................6TASK 3............................................................................................................................................8P3 &M3 Porters Five Forces Analysis of the organisation....................................................8TASK 4..........................................................................................................................................10P4&M4 Understanding and Interpretation of strategic directions available to an organization...............................................................................................................................................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
Business Strategy Assignment Solution Tesco_2
INTRODUCTIONBusiness Strategies are the plans and the policies that are used by organisations in orderto build the business structures and operations that are important for the effective working of thefirm. The business strategies are broadly divided into three categories: focus, differentiation andcost leadership. These strategies are important for the effective working of the organisation.Managing business is an art and science of strategic management which helps in accomplishingthe goals and objectives of the firm. Constructing business is the highest level of functioningmanagerial activity. The focus of this report is to analyse the impact of macro environment,assessing internal environment of the company as well as theories and concepts that are used instrategic direction. TASK 1 P1&M1 Application of suitable frameworks for evaluating the macro environment of theorganisation.External business environment of Tesco is an analytical tool which is used to analyse theexternal and internal forces of the business environment in order to ensure the sustainableposition of the firm. Tesco is the multinational grocery and retail based organisation and it is thethird largest organisation from the profit point of view. The company operates its businessfunction in more than 12 countries and considered as the market leader in the UK. The externalenvironment has been measured within the setting of corporate plan and the structure of theenterprise.Tesco being a leading food retailer of Britain's is known to possess around 586number of stores all over the Great Britain. Since, 2002, Tesco’s growth has been recorded toraise at a very high pace with an increased market share where it has reached 10.4% to 15.2% inno time. Increase in consumers has also provided huge profit and revenues to Tesco.Tesco is also known to have around 164,500 shareholders.The company’s revenue is found to be nearly 505 million pounds after deduction of taxes,from which near around 50% of it has been distributed to its associated shareholders in the formof dividends. Its average number of shareholders are known to possessapproximately one andone thousand shares, with a large number of shares held by pension funds, banks as well as thebuilding secretes. The share prices of Tesco have been recorded to rise since February 1997when it went 349p to 586p on 21stof April, 1998. Its shares have drawn a high value of 603p.With this progression, Tesco is currently known to be the biggest chain of super market.
Business Strategy Assignment Solution Tesco_3
A respectablestructural relation is known to contribute onto the organisational performance andit is therefore on considering the same, Tesco has been seen to pursue constructing a goodrelationship within its businessenvironment. Although, Tesco is advised to deal with both itsinternal as well as external culture. The exterior culture is known to play a more significant rolein the consideration of opting for overseas expansion. Worldwide supermarket should howeveradapt dissimilar local culture in the globe.Tesco usuallydevelops its foreignmarketplaceby opting for the process of acquisition orjoint venture. It can thereforeprotect the effort of training employees to familiarise the localculture. Tesco's uninterrupted expansion of foreignprocesses has been of increasing prominence,and this is allowed by the rising number of external staff over last five years, i.e., 1999 to 2003year. The amount of personnel was improved by 149% on considering the data of 22,142 in theyear, 1999 to 55,131 in the year, 2003. Staff levels in their overseas markets are set to remain inline with their current plans of expansion and the specifiedgoal of expending local manpowerTesco as a main retailing chain should constantly remain within its quality rule, which is basedon their own brand of fresh products.In the meantime, with the presentinternational growth inthe economy is concerned about its continuing market growth as well as shares. For which, it isvital to broaden its existence in the global market, which is mostly based on the needs andrequirements of the consumers (Brewster,2017).Analysing stakeholder is very crucial for the success and development of the businessorgan. The government of UK has adopted a tax quantity in recent timesand this affected Tesco.In the year 2011, UK government hasimproved the VAT proportion from 17.5% to 20%. Thiswas done with an aim to upsurge government revenue by £13 billion, each year. Contend that anupsurge in VAT rate has led to lower down the consumerexpenditure.Thus, an escalation inVAT rate hasadversely affected the revenue produced by Tesco. Sales revenue is referred to bethe fundamental basis of income of the establishment and therefore it holds a significantconsequence on profitsisation to work in an organized way. Evaluatingshareholders is vital tothe attainment of the business. A step wise guide demonstrates the greatest way to scrutinisestakeholders - by power of influence and interest. Stakeholder Scrutiny is a logical way toevaluate stakeholders by scrutinizing their power as well as interest. Herein,a high power with ahigh level of interest depicts as key players (Dobbs, 2014).
Business Strategy Assignment Solution Tesco_4

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