Impact and Influence of Macro Environment on Tesco

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Part A...............................................................................................................................................3
Impact and influence of the macro environment on Tesco..........................................................3
Pestle Analysis.............................................................................................................................5
Swot Analysis of Tesco...............................................................................................................6
Strategic capabilities and Key components of strategic capabilities...........................................7
McKinsey’s 7S model..................................................................................................................7
VRIO framework.........................................................................................................................8
Benchmarking..............................................................................................................................9
Value chain Analysis...................................................................................................................9
Cost-benefit Analysis.................................................................................................................10
Porter’s Five Forces model........................................................................................................10
Part B.............................................................................................................................................13
Strategic plan.............................................................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
A Business strategy is considered as a powerful tool in order to help to reach the business
objectives, defining the tactics and strategies that one can require to take within a firm. The
business strategy also guides various firms’ decisions for example hiring new staff members. It
focuses on the business requirement in order to reach its goals that aids guidance within the
decision making process for resource allocation and hiring. Business strategy aids various
departments’ work together assuring the decisions of the department in order to support the
overall direction within the firm. Present Report focuses on Tesco plc, which is known as a
British Multinational groceries as its headquarter is in Hertfordshire, England , UK. Tesco is
known as the third largest retailer all over the world as it is also measured as the ninth largest
that can be measured through revenue.
Report analyses the firm’s internal environment as well as capabilities and its impact on the firm,
Porter five forces model. Focuses on theories, model and concept in order to interpret the
strategic directions for Tesco as an organization.
Part A
Impact and influence of the macro environment on Tesco
Mission
We make what matters better, together.
Vision
 Wanted and needed around world
 A growing business full of opportunities
 Modern, innovative and full of ideas
 Winners locally while applying our skills globally
 Inspiring, earning trust and loyalty from customers, our colleagues and communities
Objectives
 No one tries harder for customers
 We treat people how they want to be treated

 Every little help makes a big difference
Meaning of strategy
A general directions set for the company and its various components to achieve a desired
goals and objectives can be defined as strategy. Strategy can be defined as actions that managers
and businesses take to attain to achieve organisational goals and objectives.
Role of strategy in achieving business objectives and goals, strategic intent and different
strategic directions
Strategy plays a very important role in achieving business objectives and goals. This is
because it sets direction so that company can achieve its objectives and goals. Strategic intent
can be defined as aspirational plans and this can also be achieved through effective strategy.
Stakeholder analysis
Stakeholders can be analyzed and mapped on the basis of their power and interest within
organization on the basis of these elements stakeholders are of four types-
High power and high interest
These stakeholders are those who are required to manage closely. This involves CEO,
key officers and managers, and board of directors of Tesco.
High Power and low interest
These stakeholders are those who are required to keep satisfied. This involves
government, financial institutions, regulatory authorities and organizations that Tesco is
associated with (Mangifera, 2019).
Low power and high interest
These stakeholders are required to keep inform and this involve investors, suppliers, and
trade associations and media and employees of Tesco are also involved in this category of
stakeholders.
Low power and low interest
These are those customers who have low power and low interest in organization. These
stakeholders are required to monitor regarding their actions and this category of stakeholders
involve communities and different groups that can affect Tesco.