(solved) Business Strategy of TESCO Plc
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Added on 2020-10-22
(solved) Business Strategy of TESCO Plc
Added on 2020-10-22
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Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1P.1. Analyse the macro environment which influenced TESCO Plc.....................................1P.2 Presenting the internal analysis for TESCO....................................................................5P.3 Porter’s five forces model................................................................................................1P.4 Applying a range of theories, concepts and models, interpreting as well as devisingstrategic planning for TESCO................................................................................................3CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONBusiness strategy is the means by which it sets out in order to achieve the expected goalsas well as objectives. It is long termed business planning. It is concerned with the major issueslike raising the fund in order to build the new organisation (Kueng, Li and Yang, 2016). The aimof business strategy is the set of entire goals of the company and to develop the plan to achievethe desire organisational goals and objectives. It is very important for all organisation in order toformulate the strategies of business so that company could move towards the right direction.This present report is context to Tesco plc. Tesco plc is a one of the largest British multinationalretail company in United Kingdom. The company was founded in 1919 by Jack Cohen. Itsheadquarters are located in Tesco House, Shire Park, Kestle Way, Welwyn Garden CityHertfordshire, England. This present report will analyse the macro and micro environment thatinfluence the macro environment of Tesco plc by using Pestle and SWOT tool. In order toevaluate the competitive forces in the market, Porter's five forces model will also be included. P.1. Analyse the macro environment which influenced TESCO Plc.Overview of Tesco- Tesco is most popular brand operating business in British retailsector. Company is growing rapidly. An organisation offers wide range of products such asclothes, food, electronic items etc. Business entity has ranked among the third largest retailerworldwide in terms of revenue. The company was founded in 1919 by Jack Cohen. Itsheadquarters are located in Tesco House, Shire Park, Kestle Way, Welwyn Garden CityHertfordshire, England.Mission of Tesco- Tesco mission is to gain customer loyalty by delivering them, goodquality of products at low cost. Vision of Tesco- Tesco vision is to become more valuable as well as preferred brandamong customers. Macro environment is the condition that exist in the economy as a whole instead ofparticular region or sector. Pestle analysis tool is used to track the environmental factors thataffects Tesco in both positive and negative way (Lai, Chou and Chen, 2015). Pestle analysis thebest approach that help to determine those factors which affects the entire operations andfunctions of organisation. There are six factors that affect the operations and functions ofbusiness which are Political, Economic, Social, Technological, Environmental and Legal. 1
Political Factor- This is the factor that include those elements that affect the businessoperations and function in both positive and negative manner. Political factors include taxes,duties, policies, unemployment rate as well as economic condition affects the whole profit ofTesco. In United Kingdom, the political conditions have stability which proves the greatopportunity for Tesco to grow and develop more in the country. All the political activities runsunder the power and authority of parliament of UK (Chatterjee, Narayanan and Malek, 2016).Because of stability in political conditions, there are ample of opportunities available fororganisation as well as Tesco to expand there business. For employment legislation thegovernment has encourages the retailers to provide people a mix of opportunities from lower,flexible and locally based jobs to highly skilled as well as centrally located jobs along withhigher paid jobs. In addition to this, when government decide to increase the rate of taxes, it willlead to negative impact on organisation as they have to increase the price of products. Economic Factor- This is another one of the significant factor that affects the entireperformance as well as profitability of organisation or industry (Aithal, Shailashree and Kumar,2015). The economic condition of United Kingdom is very attractive and it is incredible. UK has5th rank in the world in terms of GDP and UK is the developed country which is also one of thegreat opportunity for Tesco plc and other organisation to grow and expand their business. Thepopulation is also very huge in UK which is also one of the great opportunity for Tesco Plc andother organisations to raise their market share and profit due to huge consumption. It is becausethe rate of consumption is large which increases the profit and market share of the company. In2008, UK faces the great period of recession which lead to the great loss for Tesco Plc in thereprofitability and sales. But this period is not stay for long time because of effective steps takenby government of UK. Social Factor- Tesco plc is a retail sector and this industry greatly influenced by thesocial factors. Behaviour, genders, age, attitude, lifestyle of people living in the nation are thefactors which are included in social factors (Christ, Burritt and Varsei, 2017). The survey hasreported that the retired population in UK is very high which is not good for Tesco. Apart fromthis, with the passing of time, people living in the country are highly concerned with hygieneand healthy food, thus, it is very important that Tesco should be aware of health and hygiene ofpeople because it directly affects the behaviour of customers towards the company. Tesco hasgreat opportunity to expand its business in the market of UK because the living standard of2
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