Business Strategy Assignment Solution Tesco

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BUSINESSSTRATEGY
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1&M1Application of suitable frameworks for evaluatingthe 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
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 1P1&M1Application of suitable frameworks for evaluatingthe macro environment of theorganisation.Externalbusiness 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. Theexternalenvironment has beenmeasuredwithin thesettingof corporateplanand thestructure of theenterprise.Tesco being a leading food retailer of Britain's is known to possess around 586number ofstoresall over theGreat Britain.Since,2002,Tesco’s growth has been recorded toraise at a very high pace with anincreased market sharewhere it has reached10.4% to 15.2%inno time.Increase inconsumershas alsoprovided huge profit and revenues to Tesco.Tescois also known to have around164,500 shareholders.The company’srevenueisfound to be nearly505 million pounds afterdeduction of taxes,from which near around50%of it has beendistributed to itsassociatedshareholdersin the formofdividends.Itsaveragenumber ofshareholdersare known to possessapproximatelyone andone thousand shares,withalarge number ofshares held by pension funds, banksas well as thebuilding secretes.The share prices ofTescohave been recorded to risesince February 1997when itwent349p to 586p on 21stofApril, 1998.Itsshares havedrawna highvalueof 603p.With thisprogression, Tesco iscurrently known to bethebiggest chain ofsuper market.
Arespectablestructuralrelationis known tocontributeontothe organisational performanceandit is therefore on considering the same,Tescohas been seen topursueconstructinga goodrelationshipwithinitsbusinessenvironment. Although, Tesco is advised to deal with both itsinternal as well asexternal culture. Theexteriorculture isknown to playa moresignificantroleinthe consideration of opting foroverseas expansion.Worldwidesupermarket shouldhoweveradaptdissimilarlocal culture in theglobe.Tescousuallydevelopsitsforeignmarketplaceby opting for the process ofacquisition orjoint venture. It canthereforeprotecttheeffortof trainingemployeestofamiliarisethe localculture. Tesco'suninterruptedexpansion offoreignprocesseshas been of increasingprominence,and this isallowedby therisingnumber ofexternalstaff overlastfive years,i.e.,1999to2003year.Theamountofpersonnelwasimprovedby 149%on considering the data of22,142in theyear, 1999 to 55,131in theyear, 2003. Staff levelsin theiroverseasmarketsare set toremaininline withtheircurrent plansofexpansion and thespecifiedgoalofexpendinglocal manpowerTesco as amainretailing chain shouldconstantlyremainwithinits qualityrule,whichisbasedontheirown brandoffreshproducts.In the meantime,with thepresentinternationalgrowthinthe economy isconcerned about itscontinuingmarket growthas well asshares.For which,it isvitaltobroadenitsexistence in theglobal market, which ismostlybasedonthe needs andrequirementsof theconsumers(Brewster,2017).Analysing stakeholder is very crucial for the success and development of the businessorgan. The governmentofUK has adopted a taxquantity in recent timesand thisaffected Tesco.Inthe year2011, UK governmenthasimprovedthe VATproportionfrom 17.5% to 20%.Thiswas donewithanaim toupsurgegovernment revenue by £13 billion,eachyear. Contend that anupsurgein VAT ratehas ledto lowerdown the consumerexpenditure.Thus,anescalationinVAT ratehasadverselyaffected the revenueproducedby Tesco. Sales revenue isreferred to bethefundamental basisof income of theestablishmentandthereforeit holds asignificantconsequenceon profitsisation to work inan organized way.Evaluatingshareholdersisvitaltotheattainmentofthebusiness.Astepwiseguidedemonstratesthegreatestway toscrutinisestakeholders - bypower ofinfluence and interest. StakeholderScrutinyis alogicalway toevaluatestakeholders byscrutinizingtheir poweras well asinterest.Herein,ahigh powerwith ahighlevel ofinterestdepicts askey players (Dobbs, 2014).
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